ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 390 - 15/05/2000

CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS


Africa  - The Growth Triangle


ECONOMY


The Growth-Triangle, an economic concept that has gained
much prominence and success in Asia, is now set to take root in Africa

Africa, long-dependent on western donor aid for its economic revival, has tried macro-economic initiatives such as the South African Development Community (SADC ) and the Common Market for Eastern and Southern Africa (COMESA ). These initiatives are long-term but slow in achieving results. However, there is another formula, that of the «Growth Triangle», which can complement the existing macro-economic initiatives.

Also referred to as: «Extended metropolitan regions»; or «natural economic territories»; or «sub-regional economic zones», Growth Triangles are transnational economic zones spread over geographically adjacent areas, in which existing differences in three or more countries, rather than being iron-out or glossed over, are exploited in order to promote external trade and direct investments for the mutual benefit of participating countries. These areas can include industrial parks, tourist sites, transportation hubs, other commercial activities and education centres. The resources of three countries are brought together to foster economic development among them. In East Asia, zones of economic cooperation that straddle national boundaries are making a major contribution to growth and stability in the region.

Zambia-Malawi-Mozambique Growth Triangle

A study is presently underway into the potential of introducing the Zambia-Malawi-Mozambique Growth-Triangle (ZMM-GT ), the first ever in Africa. The study was launched last year and is now in its final stages. The proposed ZMM-GT , covers areas such Mpulungu (Zambia) on Lake Tanganyika; Karonga (Malawi) on Lake Malawi; Beira (Mozambique) on the Indian Ocean coast; Dar-es-Salaam (Tanzania) also on the Indian Ocean coast; the Beira and Maputo transport and development corridors (initiated as alternative routes to South Africa during the Apartheid era, but now under-utilised because of alternative transport networks and the end of apartheid).

Within Zambia, the ZMM-GT covers the agricultural neglected Chipata province; within Malawi, it includes what was once described as the «dead north» by the late Dr.Hastings Kamuzu Banda because of poor infrastructures; within Mozambique, it takes in Tete province — devastated by an influx of refugees during the 1980’s civil war and largely ignored because of its distance from areas of economic activities.

From Asia to Africa

The concept was «sold» to Africa in March 1998 by the UN Development Programme’s (UNDP ) resident representative in Zambia, Olubanke King-Akerele, who had spent about eighteen months in Asia, studying how the system works there. Also, in 1998, UN Secretary-General Kofi Annan, spoke in favour of regional cooperation and integration, in order to sustain development in Africa. He said: «Specific activities at sub-regional level could include cooperative projects that link two or more countries, common economic enterprise zones, infrastructure projects on joint tourism efforts».

The ZMM-GT aims to focus on creating employment to the thousands of unemployed in the region; to encourage greater equality of opportunities between rural and urban dwellers; to enhance peace, unity and good relationship between the countries involved. Within the three countries, the ZMM-GT also hopes to promote and reunite cultural similarities, which were destroyed by the artificial boundaries set up at the time of African colonialism.

The twenty-three nation COMESA , far from discouraging the Growth Triangles, has urged the creation of smaller Growth Triangles in order to achieve a speedy economic integration between individual countries. Also welcoming the ZMM-GT , is the thirteen nation SADC , which believes the existence of such Growth Triangles will enhance economic involvement of the private sector in development issues.

In 1999, UNDP set aside over US $100 million to lend the private sector in the ZMM-GT . UNDP ‘s economic adviser in Malawi, John Wayem, observes that roads, railways, the giant Cabra Bassa Dam in Mozambique, among other projects, will all profit from the injection of such capital for the mutual benefit of the three countries involved. He continues: «I’m optimistic that with the current overwhelming response, the Growth-Triangle concept in Africa, is here to stay».


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