“Southern
“Southern Africa
Africa Growth
Growth Belt
Belt Initiative
Initiative Phase
Phase 2”
2”
1
Southern Africa
An Attractive Destination for Investment
Southern Africa is projected to grow rapidly in terms of population and GDP, and is becoming an
attractive destination for investment by foreign enterprises. At the same time, the region needs to
accelerate the pace of job creation, increase agricultural productivity, and improve food security.
GDP Growth
Population Growth
Millions
500
40%
60%
80%
Southern Africa
UP
200
2,000
Oceania
1,500
Latin America
1,000
2010
0
Europe
2035
UP
500
Asia
0
USD billions (2010 prices)
2,500
Other Africa
Northern America
100
2
20%
0%
400
300
GDP Projections for
Southern Africa (2010–35)
Population Growth Rate
Projections by Region (2010–35)
Population Projection for
Southern Africa (2010–35)
2010
2035
Greatest Driving Forces for Regional Growth
It is envisaged that industrial development in Southern Africa over the next 20 years will be driven
mainly by: (i) agriculture and agro-industry; and (ii) mining and downstream industries,
especially basic materials industries.
I.
Key Driver: Agriculture and Agro-Industry
Urgent Need to Improve Agricultural Productivity
Decline in Annual Cereals Production per Capita
450
South Africa
400
350
kg per capita
Declining
Trend
Zimbabwe
300
Angola
Botswana
Malawi
Malawi
250
Mozambique
200
Namibia
Zambia
150
South Africa
Zambia
100
Zimbabwe
150
0
4
1-6
6
19
9
5-6
6
19
4
0-7
7
19
9
5-7
7
19
4
0-8
8
19
9
5-8
8
19
Agricultural Development Will Lead to
Increased Intra-Regional Trade
Recent Share of Intra-Regional
Trade in Total Trade
0%
Southen Africa
European Union
Asia
North America
South America
20%
4
0-9
9
19
80%
60%
40%
Low share in Southern
Africa at present
9
5-9
9
19
4
0-0
0
20
-10
05
20
Photo Credit: Akio Iizuka (Zambia)
Measures to be Urgently Implemented and
Expected Outcomes
Productivity growth in
cereals production
Diversification toward
higher-value products
・Reduced reliance on food
imports from the global market
・Increased intra-regional trade
Increased agro-industry production ・New formal-sector jobs
(expansion downstream)
・Stabilized food prices
Geographical diversification
・Increased real wage levels
of production
II. Key Driver - Mining and Basic Materials Industries
The mining and manufacturing sectors in Southern Africa will develop vertically from mineral
resources extraction, which is a major strength of the Southern African economy, to downstream
industries.
Envisioned Development in Southern Africa
Significant Increase Expected in Mining and Basic Materials Production
Vertical development
Present Situaion
Mineral/Energy
Resources
Extraction
Exports
Current Production
Increased
production
Global Market
Input
Basic Materials
Production
Currently, production
in the region is very limited
Create Intra-Regional Industrial Linkages (Example)
・Natural gas
extracted offshore
・Phosphate rock
mining
3
Envisioned Future
(20 years later)
Fertilizer
production
in the region
Agriculture
and
agro-industry
Several large-scale
production/export bases
Regional Market
Example: Envisioned Large-Scale Basic
Materials Industries
Heavy chemicals
industry (including
fertilizer production)
Copper
fabrication
Iron and steel
industry
Aluminum
fabrication
Corridor/Regional Infrastructure Development
Achievement of the industrial development in Southern Africa envisaged above requires a corridor/regional
development approach (infrastructure and human capacity development) including the following:
Tranport Sector
Road
- Improve poor sections along
major corridors
- Develop efficient intermodal
systems
Power Sector
Water Sector
Generation
Water supply
- Address critical shortage
of power
- Promote funding for generation
projects
- Reduce non-revenue water and
water losses
- Construct dams to supply raw
water
- Construct water treatment
facilities and pipelines
Trade/Transport
Facilitation
Border/Customs
Procedures
- One-stop border posts
- Coordinated border
management
- Regional custom bond
guarantee schemes
Railway
- Revitalize railways in the
region to meet increasing
demand for the transport of
bulk commodities and
long-distance freight
Port
- Expand port handling capacity
to meet increasing demand for
both global and intra-regional
trades
Photo Credits: JICA Study Team
Transmission
- Strengthen transmission
interconnectors within the
Southern African Power Pool
(SAPP) and link the SAPP with
other regional pools
Irrigation
- Rehabilitate existing irrigation
facilities
- Construct dams to provide
irrigation water
- Extend irrigated area
Transport
Procedures
- Road transport market
liberalization
- Harmonization of vehicle
dimensions and axle load limits
- Harmonization of road user
charges for foreign vehicles
4
Assessment of Major Economic Corridors
A. Eight Priority Corridors Selected in 2010 JICA Study
Corridor Prioritization in 2010 JICA Study
Analyses Undertaken
18 Corridors Assessed
DRC
Angola
- Corridor Development Analysis
- Benefit/Cost Analysis
- Socio-Economic Indicator Analysis
Tanzania
Malawi
Zambia
Zimbabwe
Namibia
Eight Priority Corridors
Mozambique
Botswana
South Africa
DRC
Angola
Tanzania
Malawi
Zambia
Zimbabwe
Beira Corridor
Dar es Salaam Corridor
Lobito Corridor
Maputo Corridor
Nacala Corridor
North-South Corridor
Trans-Caprivi Corridor
Trans-Kalahari Corridor
Namibia
Mozambique
Botswana
South Africa
Source: JICA, Preparatory Survey for Southern Africa Integrated Regional Transport Program (2010)
http://www.jica.go.jp/activities/issues/transport/pdf/SAGB_eng01.pdf
B. Industrial Development Potentials
Potential for Development of Two Key Drivers: Agriculture and Agro-Industry, and
Mining and Downstream Industries
Beira Corridor
Nacala Corridor
Dar es Salaam Corridor
North-South Corridor
Lobito Corridor
Trans-Caprivi Corridor
Maputo Corridor
Trans-Kalahari Corridor
• Agriculture and agro-industry along the Beira Agricultural Growth Corridor
(BAGC) in Mozambique, and in Zimbabwe
• Offshore natural gas in Pande/Temane, and downstream industries in Beira,
Mozambique
• Coal and coal-fired power generation in Tete Province, Mozambique
• Various kinds of mineral extraction and downstream industries in Zimbabwe
• Agriculture and agro-industry along the Southern Africa Growth Corridor of
Tanzania (SAGCOT) and along the corridor in Zambia
• Offshore natural gas in southern Tanzania and downstream industries in the
coastal area
• Coal, iron ore, and downstream industries in Iringa Province, Tanzania
• Agriculture along the corridor particularly in Angola
• Copper and iron ore and downstream industries in multi-facility economic
zones and industrial parks in Zambia as well as in the Democratic Republic of
Congo
•
•
•
•
Production of high-value commercial crops in Limpopo Province, South Africa
Platinum group metals, coal, iron ore, and diamonds in South Africa
Chemical industries, and iron and steel production along the corridor
Offshore natural gas and associated fuel production (e.g. naphtha, kerosene,
light oil) in Maputo, Mozambique
• Agriculture and agro-industry along the corridor in Mozambique (including in
the Pro-Savana Project area), central and southern Malawi, and Zambia
• Natural gas in the Rovuma offshore area and downstream industries
• Coal in Tete Province, Mozambique
• Various kinds of minerals and downstream industries in Malawi
• Copper, iron ore, coal, and downstream industries in Zambia
• Agriculture and agro-industry along the corridor in Zambia, Zimbabwe,
northeastern Botswana, and eastern South Africa
• Various kinds of minerals along the corridor that traverses the countries with
high potentials for mining, i.e., eastern Botswana, South Africa, Zambia, and
Zimbabwe (e.g., copper, iron ore, nickel, coal, platinum, chrome, manganese,
ferrochrome), and downstream industries in these countries
• Agro-processing in the Walvis Bay Export Processing Zone, Namibia
• Uranium in the mid-eastern part of Namibia
• Copper processing and smelting in northern Namibia
• Coal and energy development in southern Zambia
• Agro-processing in Windhoek and the Walvis Bay Export Processing Zone,
Namibia
• Uranium in the mid-western part of Namibia
• Copper fabrication in the vicinity of production areas along the corridor
African Development Community
C. Southern
(SADC) Regional Infrastructure Development
Master Plan (RIDMP), 2012
Priority of Corridors in 2012 SADC RIDMP
High
• North-South Corridor
• Maputo Corridor
• Dar es Salaam Corridor
Note: Only the eight priority corridors are presented.
Medium
•
•
•
•
•
Trans-Kalahari Corridor
Beira Corridor
Nacala Corridor
Trans-Caprivi Corridor
Lobito Corridor
Photo Credit: Hiromi Nagakura (Mozambique)
a. Synergistic Investment by Japanese Companies
• Concentration in South Africa
• As of 2013, Japanese companies in the
Southern African region are concentrated
in South Africa.
• Development along the North-South and
Maputo Corridors is expected to attract
Japanese companies further.
• Major Investment Projects by Japanese
Companies outside of South Africa
Beira and Nacala Corridors: coal mining
Maputo Corridor: aluminum production
Nacala Corridor: natural gas exploration
North-South Corridor: production of
parts/components of machinery for mining
b. Recent/Ongoing JICA Assistance
In recent years, JICA has been actively supporting the development of the Nacala and North-South
Corridors.
Nacala
Corridor
5
• Corridor development strategies
• Agricultural development
• Roads and bridges
• Port of Nacala
• Industrial development
• Social Infrastructure (middle school,
human resource training, etc.)
• Access to water, sanitary improvement
• Forest monitoring
Photo Credit: Hiromi Nagakura (Mozambique)
NorthSouth
Corridor
• Kazungula Bridge
• One stop border posts
• Development of economic zones
• Power system development
• Investment promotion
Photo Credit: Akio Iizuka (Zambia)
Proposal for Potential Focus Economic Corridors
Overall Assessment and Proposed Potential Focus Corridors
for JICA Assistance
Development Potential:
Relationship with Japan:
investment by
A. Priority in 2010 JICA Study
a. Existing/potential
Japanese companies along the
corridors
for development of
+
B. Potential
two key drivers
Recent/ongoing JICA assistance
b.
for corridor development
Priority
in
2012
SADC
RIDMP
C.
Proposed Potential
Focus Corridors:
Nacala
Corridor
North-South
Corridor
(Note: Assistance for other
corridors will not be ruled out.)
6
Profile of Proposed Focus Corridors
Nacala Corridor
Major Development Potentials
Agricultural Development
• Along Nacala - Nampula - Cuamba - Mandimba
- Lichinga, Mozambique
• Central and southern regions, Malawi
• Along Chipata–Lusaka, Zambia
Mining Development
• Natural gas extraction offshore in northern Mozambique
• Coal mining around Tete and Niassa Provinces, Mozambique
• Heavy metal sands, rare metals, uranium, coal in Malawi
• Copper, iron ore, coal along the Copperbelt, Zambia
• Nickel, phosphate rock, other minerals in northern Mozambique
Agro-Industrial Bases
• Nacala, Nampula, Cuamba, Mandimba, Lichinga,
and Gurúè (Zambezia Province), Mozambique
• Blantyre and Zomba, Malawi
• Lusaka and Chipata, Zambia
Industrial Bases (e.g., Basic Materials Industries)
• Nacala Special Economic Zone, Mozambique
• Points along the Nacala railway line in Malawi
• Lusaka and major regional cities along the Copperbelt, Zambia
Tanzania
DRC
Malawi
Angola
Zambia
Zimbabwe
Namibia
Mozambique
Botswana
South Africa
Photo Credit: JICA Study Team
(Mozambique)
Legend
Business/Industrial Center
Chemical Industry
Tobacco
Nuts
Mineral Resources
Li : Lithium
Logistics/Industrial Center
Metal Industry
Cassava
Coffee
Au : Gold
Ni : Nickel
Agro-Business Center
Manufacturing Industry
Potatoes
Tea
Ag : Silver
P : Phosphate
Mining-Business Center
Food Processing Industry
Citrus/Fruits
Cotton
Bx : Bauxite
PGM: Platinum Group Metal
RE : Rare Earth
Cement Production
C : Coal
Airport
Mushrooms
Sisal (Textile)
Cr : Chromite
Se : Selenium
Port
Fertilizer Production
Sesame
Livestock Dairy
Cu : Copper
Sn : Tin
Inter-Modal Terminal
Irrigation Development
Beans
Fish
Dm : Diamonds
Ta : Tantalum
Thermal Power
Water Supply Development
Tomatoes / Tomato Sauce
Floriculture
Fe : Iron ore
Ti : Titanium
Hydropower
Micro Finance for SMMEs
Vegetables
Banana
Gm : Gemstones
U : Uranium
Railway
Capacity Development
Wheat
Jatropha (Biofuel)
Gra: Granite
W : Tungsten
Zn : Zinc
Maize
Ls : Limestone
Oil Pipeline
Rice
Sugarcane (Biofuel)
Mn : Manganese
Zr : Zircon
Sugarcane
Sorghum Millet
NG : Natural Gas
Related Recent/Ongoing JICA Assistance
Project for Nacala Corridor
Economic Development
Strategies,
Mozambique
Tropical Savannah Agriculture
Development Program
-Japan-Brazil-Mozambique Triangular CooperationMozambique
Nacala Port Management Financial assistance for several road/bridge
Improvement Project
projects along the Nacala Corridor,
Mozambique
Mozambique
Project on Promoting Sustainability
in Rural Water supply, Hygiene and
Sanitation in Niassa Province,
Mozambique
Study of Potential
Industries,
Malawi
Financial assistance for
several road/bridge projects,
Malawi
Photo Credit: Koji Sato (Malawi)
North-South Corridor
Major Development Potentials
Agricultural Development
• Along Copperbelt–Lusaka–Livingstone, Zambia
• Central, eastern, and southern Zimbabwe
• Eastern Botswana
• Eastern South Africa
Agro-Industrial/Light Manufacturing Bases
• Multi-facility economic zones, Zambia
• Harare, Bulawayo and Masvingo, Zimbabwe
• Francistown and Gaborone, Botswana
• Durban and eastern South Africa
Mining Development
• Copper, iron ore, coal along the Copperbelt, Zambia
• Various minerals in central Zimbabwe
• Eastern Botswana
• Northeastern South Africa
Industrial Bases (e.g., Basic Materials Industries)
• Durban and eastern South Africa
• Harare, Bulawayo, eastern Zimbabwe
• Eastern Botswana
• Lusaka and major regional cities along the
Copperbelt, Zambia
Related Recent/Ongoing JICA Assistance
Kazungula Bridge
Construction Project,
Botswana/Zambia
One-Stop Border Post
at Chirundu,
Zambia/Zimbabwe
Development of
Industrial Strategy,
Zambia
Angola
Malawi
Zambia
Zimbabwe
Namibia
Zambia Investment
Promotion Project–
Triangle of Hope,
Zambia
7
Tanzania
DRC
Master Planning Study of
Lusaka South Multi-Facility
Economic Zone,
Zambia
Mozambique
Botswana
South Africa
Photo Credit: JICA, Kazungula (Botswana/Zambia)
Proposed Critical Public Sector Actions
Actions Critically Needed for the Development of Regional Corridors
Industrial
Development
• Modernization of agriculture and agro-industry
• (Re)development/modernization of mining
• Promotion of industrial zone and related development
• Development and promotion of clusters for small and medium enterprises
Infrastructure
Development
• Road improvement, revitalization of railways, intermodal facilities, port
expansion/development
• Power generation and transmission, pipeline transport
• Enhancement of water supply, irrigation development
Capacity
Development
• Extension services, technical assistance for small and leading local farmers
• Technical and vocational education and training, development of industrial management skills
• Reduction in nonrevenue water and water losses
• Capacity development in the railway and port sectors
• Capacity development of the Southern African Power Pool
• Capacity development of infrastructure facility O&M technical experts
Trade/Transport
Facilitation
Photo Credit: JICA Study Team (Mozambique)
Photo Credit:
• Assistance for implementation of improved corridor transit, coordinated border JICA Study Team (Zambia)
management, one-stop border posts, port facilitation, and railway transport facilitation
Photo Credit: Clockwise from Top Left: 1. Hiromi Nagakura (Mozambique) 2. Akio Iizuka (Zambia) 3. Yasuji Shoji (Zimbabwe) 4. Hiromi Nagakura (Mozambique) Front Cover Photo Credit: Clockwise from Top Left: Hiromi Nagakura (Mozambique), Others by JICA Study Team
This study examined potential JICA technical and financial assistance for industrial and infrastructural development along major economic corridors in Southern
Africa in the transport, power, and water sectors.
Shin-Onarimon Bldg.
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Tokyo 102-8539, Japan
Tel: +81-3-5276-3596
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