By KENNEDY MUPESENI –
TRADE experts have called for the formalisation of the Zambia-Malawi-Mozambique Growth Triangle (ZMM-GT) by member countries to expand trade activity between economies.
The Center for Trade Policy Development (CTPD) said in a statement that the non-binding framework of the Growth Triangle between the three countries had stagnated progress of the initiative since being operationalised in 2003.
“As a non-binding agreement, it has been difficult to use the 2003 MoU as a basis for mobilising resources from member States, the private sector and development partners. Further, the interim status of the ZMM-GT Secretariat has hampered the coordination with respect to the implementation of the agreed upon action plans,” the statement said.
The ZMM-GT was established with the view to transform the sub-region into a vibrant and dynamic economic growth area through joint ventures and improved infrastructure. It was the brainchild of the Economic Commission for Africa (ECA) southern Africa regional office and the United Nations Development Programme in 1999.
The Growth Triangle had its origin in the South East Asian region, where it was conceptualised in the 1980s as a model to promote dynamic development among three or more countries with different endowments of factors of production and different sources of comparative advantage, to form a sub-region of economic growth.
The CTPD said a meeting of economic experts from the three countries was recently held in Maputo, Mozambique to discuss the way-forward for the near defunct initiative.
The statement observed notwithstanding a 15 year long existence and the conducive conditions in the participating region, the ZMM-GT initiative had made little progress in implementing its projects and achieving goals.
The meeting sought to find a way forward for the ZMM-GT specifically the finalisation and ministerial approval of the Memorandum of Understanding.
The key areas of focus during the meeting included the establishment of the ZMM-GT permanent secretariat and putting in place systems and mechanisms for mobilising
both public and private resources for improving economic infrastructure in the region.
The interim secretariat was currently based in Malawi and whose interim nature had been cited as a challenge in implementing the initiative.
The meeting also recommended the involvement of national private sector forums to own and steer the Growth Triangle policies and projects within each national context.
The fundamental tenet of a Growth Triangle is that it is private sector driven, but with substantial public sector support and commitment.