Agostinho Vuma, the president of the Confederation of Economic Associations of Mozambique (CTA), the country’s largest business association, said today that tariff and non-tariff barriers are an obstruction to economic integration in southern Africa.
Agostinho Vuma was speaking during the opening ceremony of the Southern African Development Community (SADC) Business Forum, taking place today and Wednesday in Maputo.
“The challenges to regional integration, within the scope of SADC, are evident, such as the prevalence of tariff and non-tariff barriers,” Vuma observed.
On the other hand, low production capacity and prohibitive interest rates imposed by banks weaken the possibility of the SADC business fabric playing a more effective role in the countries’ economic development and regional integration, he added.
Therefore, Vuma continued, reforms are needed that are conducive to the strengthening of private sector companies in southern Africa and the rapid integration of the region’s economies in a future free trade area.
The president of the CTA advocated for a growing role for southern Africa companies in strategic sectors of the economy currently occupied by multinationals.
“Our vision emphasises a more active role in the exploration and exploitation of resources in each country by national companies in the areas in which multinationals have been operating,” Vuma said.
The SADC Business Forum will debate the socio-economic impact of Covid-19 and post-pandemic recovery strategies, infrastructure and regional corridor development.
Industrialisation focused on improving the balance of trade within the countries of the region, the role of the energy and mineral resources sectors and the participation of national business in megaprojects will also be discussed.
The forum precedes Wednesday’s SADC Heads of State and Government summit in Maputo, which is to debate a response concerning support in the fight against terrorism in northern Mozambique.
The SADC comprises 16 states: Mozambique, Angola, South Africa, Botswana, Zimbabwe, Eswatini, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Namibia, Seychelles, Tanzania, Zambia and Comoros.
