Regional leaders and experts have called for urgent economic diversification and industrial transformation across Southern Africa to build resilience against global shocks and unlock the full benefits of the African Continental Free Trade Area (AfCFTA).
This united call came during the 31st Session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Southern Africa, hosted in Eswatini under the theme “Enhancing Regional Integration and Economic Diversification in Southern Africa in the Era of the AfCFTA.”
UNECA Subregional Director for Southern Africa, Eunice Kamwendo, warned that the region’s narrow economic base makes it vulnerable to global disruptions, ranging from tariff wars and commodity price fluctuations to climate change and geopolitical tensions.
Kamwendo stressed that diversification is not just a growth strategy, but it is a survival strategy. “We must diversify our tradable goods, diversify our trade partners, and strengthen intra-African trade if we are to build resilience in a volatile world,” she said.
She urged countries to align their national policies with regional frameworks and focus on developing value chains in key growth sectors such as green energy, agro-processing, and manufacturing. Kamwendo also linked diversification to inclusive growth, noting that youth unemployment and inequality could only be tackled through a more dynamic and varied industrial landscape.
“Southern Africa’s youth unemployment remains alarmingly high, yet we continue to rely on sectors that create limited jobs,” she said. “Diversification offers a pathway to innovation, decent employment, and sustainable growth.”
Echoing this message, United Nations Resident Coordinator for Eswatini, George Wachira, reinforced the need for industrial diversification, noting that the region has too limited diversification and that limits the potential.
“Across Africa and the region, economies face common challenges: limited diversification, vulnerability to external shocks, and underutilized industrial capacity,” he said.
Wachira highlighted the need for Southern African countries to strengthen production capabilities, differentiate their products, and develop cross-border value chains that link regional strengths.
He commended Eswatini for its steady progress in manufacturing and export diversification, which has positioned the country as a potential regional production hub.
“Eswatini’s industrial base, where nearly 80 percent of exports are manufactured goods, offers a practical example of how small economies can successfully diversify and integrate into regional markets,” Wachira noted.
He further called for collaboration in energy security, infrastructure development, and MSME empowerment, stressing that such enablers are critical for building regional competitiveness under AfCFTA.
Delivering the keynote address, Minister of Finance Neal Rijkenberg, challenged African nations to move away from dependence on raw commodity exports and instead invest in value addition and regional value chains.
“It is unsustainable that 70 percent of our exports are raw commodities. Even in sectors like copper, where Africa holds vast reserves, less than five percent is processed locally,” said Rijkenberg. “If we are to reap the full benefits of the AfCFTA, we must focus on producing and processing goods within the continent.”
He cited Eswatini’s efforts to strengthen domestic industries and stimulate local production through initiatives such as the Right of Supply concept, a procurement policy proposal designed to prioritize African-made goods and services in government and corporate supply chains.
“By ensuring that African producers are the first to supply African markets, we can accelerate industrialization, create jobs, and keep value within the continent,” Rijkenberg said.