The 90-year-old leader took over as chairman of the Southern African Development Community (SADC) from Malawi's Peter Mutharika after almost a decade of being excluded from positions of power in the 15-member bloc.
He is also in line to lead the 54-nation African Union from next year.
Southern Africa must "wean itself from exporting raw materials and create value chains that will lead to the exportation of finished products," he told the opening of the two-day summit.
Mugabe has ruled Zimbabwe since independence in 1980 but a series of economic crises, flawed elections and brutal crackdowns that have brought UN sanctions and turned the former revolutionary into a Western pariah.
He was the only leader from southern Africa not invited to attend a major US-African summit in Washington earlier this month, which included some 45 of the continent's heads of state.
Rights groups last week urged southern African countries to address abuses and uphold individual freedoms at the meeting in the Zimbabwean resort town of Victoria Falls.
They accused Harare of dragging its feet to prosecute perpetrators of political violence in past elections, and denounced secrecy around mining rights and the country's lucrative diamond fields.
Speaking in the Zimbabwean resort town of Victoria Falls on Sunday, Mugabe said the SADC the bloc prides itself in an impressive track record in peace, security and democracy.
Regional security and socio-economic development are at the top of the agenda of the meeting, which ends on Monday.
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