Generally, Africa is backward in industrial development, because its exports are dominated by unfinished or semi-processed products. She is predominantly an agrarian continent compared to the western world which is systematically classified as industrialized. The Common Market for Eastern and Southern Africa (COMESA), as one of the eight Regional Economic Communities recognized under the African Union, is an economic confederacy of Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Swaziland, Sudan, Uganda, Zambia and Zimbabwe. These countries have similar economic features. The agrarian scenery of COMESA has only enhanced growth, but the growth has not optimally translated into sustainable development. It has resulted in increases in unemployment rate, poverty rate, inflation rate, social vices, unsatisfied foreign investment and consequently economic stagnation. In addition, governments of some of these economies have not provided sufficient incentives for the majority of their citizens to engage in formal productive and economic activities, hence continuation of narrow/minority economic integration. This submission lends credence to the fact that without industrialization (‘a global process of structural change whereby a country or region strives to become a technological leader, creating wealth and dominating trade through manufacturing’- UNECA, 2013); sustainable development remains a mirage.
Objective of the Study
The general objective of the study is to empirically investigate the relationship between structural transformation (industrial value added) and sustainable development (digital infrastructure, governance, integration, per capita income and inflation) in COMESA. This paper will contribute to the literatures on the link between structural change and sustainable development in COMESA.
Methodology
The econometric approach for this study will be guided by the use of panel co-integration tests. The justification of this choice is to determine the long–run dynamics among the variables to be considered and how they can enhance sustainable development in COMESA. Annual secondary data of relevant variables related to the study shall be sourced from COMSTAT Data Portal and World Bank database (World Bank Development Indicators) respectively for the period between 2005 and 2015.
Expected Result
It shall be expected of the study to confirm a positive relationship between structural transformation and sustainable development in COMESA.
References
Economic Commission for Africa (2013), “Industrialization for economic transformation and sustainable development in Southern Africa: addressing the gaps”, The report submitted to the UNECA-SA’s 19th Session of the Intergovernmental Committee of Experts (ICE), Harare, Zimbabwe, (1-2 March 2013).