SADC Southern African Development Community. Angola, Botswana ...

Course summary (Southern African Development Community)

The economy of the SADC Region: Trade, industry, finance and investment. Business environment. Free trade area (FTA). European Union economic partnership agreement (EPA)

The Southern African development community (SADC) has been in existence since 1980, when it was formed as a loose alliance of nine majority-ruled states in Southern Africa known as the Southern African development coordination Conference (SADCC), with the main aim of coordinating development projects in order to lessen economic dependence on the then apartheid South Africa.

SADCC was formed in Lusaka, Zambia on April 1, 1980, following the adoption of the Lusaka Declaration - Southern Africa: Towards Economic Liberation. The transformation of the organization from a Coordinating Conference into a development community (SADC) took place on August 17, 1992 in Windhoek, Namibia when the Declaration and Treaty was signed at the Summit of Heads of State and Government thereby giving the organization a legal character. SADC headquarters are located in Gaborone, Botswana.

The economy of the SADC Region. Economic growth in the SADC region remained robust in the face of the global financial turmoil and high energy and food prices. Economic growth averaged 6.8 per cent (excluding Zimbabwe) compared to 6.4 per cent recorded in 2006. Some countries in the region benefited from the terms of trade gains resulting from the surge in commodity prices. However, there are variations across countries.

Example of the course (Southern African Development Community):

Angola, Malawi, Mozambique and Tanzania recorded high growth rates of over 7 per cent. Satisfactory performance in agriculture as a result of favourable weather conditions; and increased oil production contributed to the good economic performance in these countries.

According to the World Investment Directory 2008, inflows of Foreign direct investment (FDI) to the SADC region have been erratic since 2000. On average, FDI inflows declined between 2001 and 2006. However, in 2007 FDI inflows increased to US$22.1 billion from US$1.7 billion in 2006. FDI inflows are expected to slowdown to US$17.8 billion in 2008.

South Africa accounted for the bulk of the inflows followed by Angola. However, FDI inflows to Botswana, Tanzania, Namibia and Zambia also accounted for a sizable share of the total inflows to the region. South Africa accounts for over 62 per cent of the FDI stock in the region followed by Angola accounting for an average of 14 per cent.

Most of the ranking reports released in 2008 indicate improved business environment in the region. The improving economic climate observed in the region in recent years is at least being reflected in the improved competitiveness rankings of a number of countries.

Southern African development community (SADC) region has been affected mainly by the reduction in international and cross-border financial flows (global crisis) and falling real economic growth and trade flows

A coherent approach to regional and multilateral trade negotiations so as to ensure that SADC countries reap the benefits and successfully address the challenges associated with trade in services and parallel negotiations:
- within the SADC region,
- with the COMESA region,
- between SADC and the EU under the Economic partnership agreement (EPA), and
- under the General Agreement on Trade in services (GATS) of the World Trade Organization (WTO).

Objectives of Southern African development community (SADC):

- Achieve development and economic growth,
- Alleviate poverty,
- Enhance the standard and quality of life of the people of Southern Africa and
- Support the socially disadvantaged through Regional integration.

The directorate of Trade, industry, Finance and Investment comprises of the following programmes:
- Customs Cooperation and Mordenisation
- Investment and Development Finance
- Macroeconomic Convergence
- Macroeconomic Policies and Convergence Programme
- Tax Coordination
- Mining
- Productive Competitiveness
- Regional and Multilateral Trade Policies
- Standardisation, Quality assurance, Accreditation and Metrology (SQAM)

Members: Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

Southern African Customs Union (SACU). Republic of South Africa, Botswana, Lesotho and Swaziland.

Africa Scholarships

SADC, Southern, African, Development, Community, Angola, Botswana, economy, SADC Region: Trade, industry, finance, investment, Business, environment, Free trade, Area, FTA, European Union, Economic, Partnership, Agreement, EPA, Master, international business