Date: 13th October 2011
Presenter: Mpho Kelosiwang
Position: Executive Coordinator
“The New Imperative for SMME Development in the SADC Region –
Cooperation and Collaboration of SMME Development
Institutions.”
Introduction
• In the last three decades African countries have pursued regional integration
arrangements to accelerate their economic development.
• The Southern African Development Community (SADC) has also joined in on these
objectives.
• The change in SADC is interesting, in that originally SADC motives were;
Independence, security, regional solidarity and the fight against apartheid.
• Today SADC's main goals are to form common political interests and support
greater trade and investment flows between members.
• In order to realise the above goals, In August 2008, eleven of the 14 member
states of SADC officially launched a free trade area (FTA).
• The theme of the event was - "SADC Free Trade Area for Growth, Development
and Wealth Creation."
• FTA agreement is part of the SADC's ongoing efforts to deepen long-term regional
integration in order to accelerate economic growth and reduce poverty for the
millions of people living on the continent.
SADC FTA
• The SADC FTA originally covers eleven of the 14
member states which represents a regional market
worth about $360-billion, benefiting a total
population of 170-million people.
• When Angola and Congo DR join the FTA, they add
add a further US$71 billion and 77 million people
to the SADC market. Increasing the SADC Regional
market worth to $431 billion and 247 million
people.
• The SADC FTA programme also included the
following
– establishing a Customs Union by 2010,
– a Common Market by 2015,
– a monetary Union by 2016,
– and a single currency by 2018.
• The Free Trade Area is supposed to lead to more economic integration of the
member states involved through making goods much cheaper, stimulating
greater production as well as consumption.
Regional Integration & Role of SMMEs
•
On the positive side - Regional integration can foster competition, subsidiarity, access
to wider market (via trade), larger and diversified investment and production, socioeconomic and political stability and bargaining power for the countries involved.
• On the negative side -integration can be complicated by perceived or real gains or
losses among the members that may lead to disputes and a sense of “loss” of national
sovereignty.
• We do agree with the then (2008) Chairperson of SADC, Thabo Mbeki, who urged SADC
member states to assess how best they could advance the integration effort and the
region's trade performance, noting that the most serious constraints to growing the
region were underdeveloped structures and supply capacity.
• It is our view that sustainable regional integration cannot be achieved without the full
participation of SMMEs in the process of wealth creation in the SADC region.
• However there is doubt if SADC SMMEs can take advantage of the potential
opportunities SADC free trade affords them and successfully compete given the
numerous problems they are beset with. One of the challenges facing SADC today is to
facilitate the engagement of the majority of the economically active people into
sustainable socio-economic activities.
SMME Development as National Agenda.
• It is our belief that Small, Micro and Medium Enterprises (SMMEs), if structured
well and given adequate support to spur on their development and growth, hold
the future as significant contributors to SADC regional economic integration and
growth.
• The challenge therefore is, “how do we structure the environment within these
countries (and regionally) to ensure that the contribution of the SMME sector to
economic development is much greater than it currently is”. This is the theme of
my delivery to you this morning.
• Nationally
– It is paramount that the SMME Sector development becomes a national
agenda of every SADC member state driven from the highest possible echelon
of government.
– This ensures that all faculties of government are geared towards delivery in
terms of facilitating the development of the SMME sector.
– Government must also create parastatal institutions whose mandate(s) are
bespoke to spearheading and championing the development of the SMME
sector.
Collaboration of SMME Development institutions
Regionally
• It is our view that in order for SADC to achieve its goals of regional integration and
higher level objectives of economic growth, poverty alleviation and employment
creation there is need to focus on regional approach to the promotion and
development od SMMEs.
• The first to enhance and encourage collaboration between national SMMEs
Development Agencies and ultimately the formation of a regional organisation to
facilitate the SADC wide collaboration on SMME Promotion and Development.
• The objective of the association will be;
1. To encourage the development of a harmonised SMME legal, regulatory and policy
framework within the SADC region;
2. To facilitate and enhance trade and investment between SMMEs in the SADC Region;
3. To promote business linkages and joint ventures amongst SADC SMMEs.
4. To facilitate the organisation of exhibitions and trade fairs in SADC Member countries
for the marketing of products and small project,
5. To facilitate the promotion of SMMEs entrepreneurial skills within the SADC Region.
Regional Integration & Role of SMMEs
• The objective of the association will be -Continued;
6. To facilitate the exchange of information and experience on SMME
promotion and Development among the member countries of SADC;
7. To encourage interaction among SADC SMME Development Agencies - Non
Funding;
8. To maximise co-operation among the Member SMME Development AgenciesNon Funding,
9. To act as a reference/advisory body for the SADC secretariat and SADC
member states on SMME promotion and development.
10.To promote capacity building of individuals and institutions concerned with
SMME promotion in member states.
11.To undertake any other related activities.
Way Forward
In light of the foregoing, and due to time constraints, I wish to hurriedly proceed to
suggesting the way forward,
1. Formation of a SADC SMME promotion and Development Association made up of
the non funding SMME Development Agencies within SADC.
2. Inclusion of SMME Promotion and Development as a NATIONAL DEVELOPMENT
AGENDA of every SADC Member Country.
3. Inclusion of SMME Promotion and Development as a SADC DEVELOPMENT
AGENDA
Thank You
4/13/2015
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