REGIONAL ECONOMIC INTEGRATION IS A KEY DRIVER TO OVERCOMING ECONOMIC DEVELOPMENTAL CHALLENGES - DAVIES

REGIONAL ECONOMIC INTEGRATION IS A KEY DRIVER TO OVERCOMING ECONOMIC DEVELOPMENTAL CHALLENGES - DAVIES

The Minister of Trade and Industry, Dr Rob Davies says South Africa and the rest of the African continent are focusing on regional integration as a key driver to overcoming economic developmental challenges and to achieving sustainable economic growth. Minister Davies was speaking at the 2015 South Africa-Italy Summit that was held  in Cape Town today.

“There is a consensus that by merging its economies and pooling its capacities, endowments and energies, the continent can overcome its development challenges. Regional integration would allow it to not only achieve sustained and robust economic growth, but also enhanced movement of goods, services, capital and labour, socio-economic policy coordination and harmonisation, infrastructure development as well as the promotion of peace and security within and between the regions,” said Davies.

He added that the Southern African Development Community (SADC) and the African continent were focussing on enhancing regional integration through the developmental integration approach underpinned by three critical elements, market integration, industrial and infrastructure development.

“This is a departure from mainstream economic theory on regional integration which broadly conceives deepening regional integration as a series of successive stages: Preferential Trade Area, Free Trade Area, Customs Union, Common Market, Economic Union, and finally Political Union. During the next few years market integration will be advanced through consolidating the SADC Free Trade Area,” said Davies

Davies also mentioned that it was important to note that the infrastructure of the African continent was designed to spirit minerals away from the continent.

“It is imperative that we reverse this by linking African economies to diversify and beef-up the value-adding production onto the continent,” said Davies

The summit brought together a selected community of CEOs, leading economists and governmental authorities from South Africa, Italy and sub-Saharan Africa.