Support to Industrialisation and Productive Sectors (SIPS)

Project Status: Finalised

Theme: Industrial Development & Market Integration

SIPs is a five-year Programme, coordinated by the SADC Secretariat and implemented by GIZ and SADC Secretariat financed to the tune of €18 million by the EU under the 11th European Development Fund (EDF). The Financing Agreement and the Contribution Agreement were signed respectively in June and August 2019; while implementation commenced in September 2019. The Programme, which covers all the 16 SADC Member States, is being implemented over a period of 55 months from the date of signature of the Contribution Agreement. 

SIPS aligns itself to the strategic objectives of SADC as outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020 - 2030. The RISDP prioritises Industrial Development and Market Integration and places industrialisation at the centre of the regional integration agenda and seeks to front-load and accelerate industrialisation in the SADC region. The priority of on industrial development and market integration aims for “an industrialised regional economy that is based on a competitive and facilitative environment, which includes infrastructure, and skills and sustainably exploits its natural resources by leveraging science, technology and innovation.”

The overall objective of the SIPS programme is to contribute to the SADC industrialisation and regional integration agenda. Specifically, SIPS aims to enhance policy, regulatory and operational business environment on national and regional levels for the development and sustainable operation of the leather, ARVs and associated value chains and products. Pursuant to this, the overall SIPS Programme has three key result areas as described below:

Result Area 1: Enhanced policy, regulatory and business environment on national and regional levels for development and sustainable operation of regional value chains (for selected products) in the agro-processing and pharmaceutical sectors.

Result Area 2: Private Sector Participation in Regional Pharmaceutical & Medical Value Chains Enhanced.

Result Area 3: Private sector participation in Regional Leather Value Chain enhanced. 

Result Area 1 is implemented by the SADC Secretariat while GIZ is implementation agency for Results 2 and 3. Although the three Result Areas have separate implementation arrangements, their implementation follows a coordinated and complementary approach in order to leverage on the anticipated synergies that are to accrue to the project activities from all the result areas. 

What actions will be supported under SIPS?

SIPS is being implemented in the regional anti-retroviral (ARV) drugs, COVID-19 relevant Medical Pharmaceutical Products (CMPP) and leather regional value chains. These value chains were given preference due to their potential for job creation. It is expected that targeting these three value chains at regional level will encourage Member States to address obstacles to regional integration, as well as assist the private sector to upgrade production processes.

SIPS will address policy, regulatory and business environment constraints affecting development of the targeted value chains. Activities and actions will target identified priorities to unlock the regional value chains potential, such as the facilitation of public and private sector dialogue, implementation of national plans aligned with the SADC industrialisation strategy, research, innovation and development initiatives, and the participation of the private sector in the ARV, CMPP and leather value chains.

How will SIPS operate?

Under SIPS, the development of the ARV, CMPP and leather value chains includes exploring the possibility to extend these and investing in research and development and eventually production in the SADC Region. 

SIPS is implemented in all SADC Member States, targeting the private sector, and in particular but not limited to Small and Medium Enterprises (SMEs); other Non-State Actors (NSAs) or Intermediary Organisations (IOs); and SME clusters involved in the selected value chains.

The focus on the private sector is in line with the strategic interventions of the SADC Industrialisation Strategy and Roadmap (2015-2063) which calls for support towards capacitating the private sector to enhance entrepreneurial and managerial skills, thereby boosting productivity and competitiveness.

SIPS is being implemented under the leadership of the SADC Secretariat for the regulatory/policy aspects and by GIZ for the components related to the private sector development.

What are the Key Result Areas of SIPS?

Under SIPS, GIZ will oversee Result Area 2 and 3 which have been allocated €10 million from the EU and €2.83 million from BMZ. Result Area 1, to be administered by SADC, is funded to the tune of €8 million.

Result Area 1 deals with enhanced policy, regulatory and operational business environment on national and regional levels for the development and sustainable operation of regional value chains (for selected products) in the agro-processing and pharmaceutical sectors.

Result 2 ensures that private sector participation in regional pharmaceutical and medical value chains is enhanced, while

Result Area 3 ensures that private sector participation in regional leather value chains is enhanced.

SADC will implement enhanced policy, regulatory and the business environment on national and regional levels for development and sustainable operation of the regional value chains for selected products in the agro-processing and pharmaceutical sectors, while GIZ will enhance participation of the private sector in the ARV, CMPP and leather value chains.