The path towards consolidated industrialisation is still a challenge in the country. However, there are potentialities that, if well explored, may serve for national development.
It was with the purpose of discussing industrialisation that the Minister of Transport and Communications, Mateus Magala, was invited this Thursday (22), to speak on the “Role of development corridors to boost industrialisation in Mozambique” during the 18th edition of the Annual Conference of the Private Sector (CASP).
He began by explaining that “the transport infrastructures are considered as a Government problem because it is a public good, and it is not written anywhere that a public good cannot be served or enjoyed by the private sector. That is why we have to get out of this paradox or comfort that infrastructure is a public good and financed only by the Government. This means waiting for the State to finance them.
“Industrialisation conditions the level of development that can be achieved, that is, without transport and logistics infrastructures you cannot industrialise successfully and you cannot have development at the desired levels,” he said.
The governor referred that there is an aspect to consider when talking about infrastructures that support the industrialisation of the economy, which has to do with its deficit, which brings many costs to boost industrialisation itself. Citing the African Development Bank, the leader said that “Africa needs between US$130 billion and US$170 billion per year to cover the infrastructures deficit, and if that deficit was covered, continental GDP would grow by an average of 2 to 4 percent per year.
In this context, Magala suggested: “to make up for the financing deficit in the infrastructures sector it is necessary to make every effort, which involves the private sector through public-private partnerships for their development”. And he challenged the banking sector to join in: “here, banking is challenged to design affordable credits. It is equally important to engage banks in the development of infrastructure projects so that they can provide, within the legal and financial framework, sufficient incentives for the transport and logistics sector.”
Regarding the factors behind the delay in the Country’s industrialisation, the governor started by clarifying that “the digital industry is the one that provides the best opportunities for the private sector”, pointing out that “the biggest problem for us is that we still have basic issues of the first industrial revolution unsolved, such as the creation of a basic services industry, such as clothing, footwear, means of transport and energy. And what is even more serious is that we are behind in materialising the third industrial revolution, that is, digitalisation, because without it, we cannot even think that we will effectively participate in the other stages.”
The Ministry of Transport and Communications has defined two strategic units to contribute to industrialisation. The first is accessibility, whose emphasis is on finding untapped opportunities and the potential of many of the country’s development corridors. The second is based on development challenges related to the digitalisation of telecommunications and communication in general.
Taking place over a three-day period (21, 22 and 23 June), CASP’s motto is “Transformation, Innovation and Sustainability for Industrial Competitiveness”, with the physical presence of over three thousand participants and 12 thousand in virtual format. During the conference, projects from various sectors valued at around US$1.4 billion will be discussed.
