HARARE, July 29 -- The Southern African Development Community (SADC) region needs to boost foreign investments and value addition of its mineral resources to accelerate industrialization, an official said on Monday.

Speaking at the seventh edition of the SADC Industrialization Week, which officially opened in the Zimbabwean capital of Harare, Zimbabwean Finance Minister Mthuli Ncube expressed concern over the region's continued reliance on primary industries to drive economic growth.

"The majority of SADC countries are still dependent on primary industries and rely heavily on South Africa as the major trading partner. Hence, excluding South Africa, the majority of SADC countries are yet to be significantly industrialized," Ncube said.

According to the minister, the major challenges facing the SADC region to industrialize include the lack of affordable long-term financing, macroeconomic imbalances, and limited fiscal space to address gaps in economic enablers, coupled with a long-term decline in official development assistance flows.

The SADC region is also grappling with mounting public debt that is limiting its ability to invest in core industries and infrastructure, he said, adding that rising geopolitical tensions and climate change impacts have affected all member states, resulting in reduced productivity, high levels of unemployment, and high poverty levels.

Ncube said member states are making more efforts to create a favorable investment climate to boost value addition and diversify economies in pursuit of regional industrialization.

"In that regard, attracting foreign direct investment and intra-SADC investment will enhance the productive capacities of the region, promote macroeconomic convergence, integration of financial markets, as well as build capacity to participate in continental and global value chains. This will ensure the region transitions from exports of unprocessed natural resources primary products to processed high-value goods and services," he said.

The SADC Industrialization Week is the largest public-private engagement platform dedicated to industrialization and fostering intra-African trade and investment.

The week-long event is being hosted by the SADC Secretariat, in collaboration with the government of Zimbabwe, the SADC Business Council, and the Confederation of Zimbabwe Industries.

The event precedes the 44th Ordinary SADC Summit of Heads of State and Government scheduled for Aug. 17 in Zimbabwe.

  - Xinhua