Strengthening the Creative Industries for Development in ... - unctad

36 PART 3. CREATIVE INDUSTRIES POLICY REVIEW
Action: Encourage the development of a strategy for export development in which the creative sectors
should be taken into account.
3.8 SERVICES SECTOR
Services are of critical importance of most economies in the SADC region 87 . They provide the bulk of
employment and income and are major contributors to GDP and trade. In 2006, the services sector
contributed on average 50 per cent to the region's GDP. Services exceeded 40 per cent of GDP in
Mozambique. The construction sector accounts for 6.4 per cent of GDP (2006). The SADC region is a
net importer of electricity. South Africa and Mozambique were the leading exporter and importer
countries, together accounting for approximately 45 per cent and 39 per cent of total electricity trade
in SADC respectively. 88
Communication services are among the key services in Mozambique. However, teledensity remains
very low at less than one fixed line per 100 persons and the subsector is marked by insufficient
competition and high operating costs and charges. Most of the region's main (fixed) telephone lines
are concentrated in just four of its 14 countries: Botswana, Namibia and South Africa account for
approximately 80 per cent of all fixed lines in SADC. Radio and television services are State-owned in
all SADC countries and access is now by digital satellite which allows for more universal coverage 89 .
The construction industry, which includes architecture, an important creative sector, continues to grow
in Mozambique due to the rehabilitation and expansion of the road and rail network 90 .
The energy sector has been identified as a priority sector for investments in the national strategy for
poverty alleviation. Less than 3 per cent of the population enjoys access to electricity. Energy is
paramount for the infrastructure development needed to implement technological advances in the area
of ICT tolls and digital services, an important component for enhancing the creative economy.
In the last decade, financial services have been contracting. The banking sector is highly concentrated
and comprised of eight commercial banks, all of which are majority foreign owned by Portugal and
South Africa. The microfinance industry, which extends lending to rural areas, has started to grow.
Similarly, access to capital is essential to stimulate the development of creative entrepreneurs which
are mainly SMEs who require seed money to start up their activities.
Due to its location bordering the Mozambique Channel, the country is a natural transport hub for
several of its neighbors (e.g. Malawi, Swaziland, Zambia and Zimbabwe).
3.8.1 TOURISM
Mozambique is endowed with natural resources including beaches, exceptional fauna, flora and
wildlife and a climate that provide it with enormous potential for tourism. The sector has attracted
major investment and already constitutes one of the country's main exports.
However, development in the tourism sector is constrained by a lack of capacity and inefficiency in
the supporting services sectors, such as telecommunications, finance and transport. 91 . Tourism
87
Mozambique is a member state of SADC.
88
UNCTAD (2010: Towards SADC services Liberalization: Balancing Multiple Imperatives. 3 SADC priorities
services sector, pag. 21.
89
The South African Broadcasting Corporation (SABC) is the largest radio and television transmission company
in the region, comprising 18 radio stations targeting a combine audience of over 20 million.
90
This is done with donor funding from the World Bank and other organizations.
91
Towards SADC Services Liberation: Balancing Multiple Imperatives, Tourism Sector, pag.66. UNCTAD,
2010.