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The Southern African Development Community (SADC) held its Extraordinary Summit of Heads of State and Government at the end of June in Maputo, Mozambique. The summit was mainly called to review the progress made in the implementation of the theme of the 40th SADC Summit; SADC: 40 Years to Build Peace and Security and Promote Development and Resilience in the Face of Global Challenges, which was previously endorsed by the SADC Summit in August 2020.
The first SADC Business Forum featured prominently on the overall agenda, and other important issues discussed included regional integration, cooperation and development. The topic that received particular attention was regional security and its possible impact on the business and investment climate, with particular emphasis on Mozambique and in a broader perspective, as a whole in southern Africa.
Under the chairman of SADC and the Extraordinary Summit, the President of the Republic of Mozambique, Filipe Jacinto Nyusi, along with 15 leaders from southern Africa, finally agreed, after several months of round-trip negotiations, to form a military force. regional pending. The sources of funding for the force are made up of a contingency fund and contributions from member states participating in the force, which should contribute between them to the tune of 7 million dollars (5.8 million euros).
While multiple barriers, including high tariffs, customs rules and traps at border crossing with stocks remain and hamper regional economic integration, Mozambican President Filipe Nyusi, in a speech, reaffirmed his commitment to make of the Southern African Development Community (SADC) an example of regional integration, given its geostrategic position and existing energy potential.
The Mozambican leader, during the public-private dialogue and the Business Forum, urged to accelerate the ratification of protocols essential to economic integration. The establishment of a customs union moving towards a single market and monetary union remains a huge challenge. It delays the process of ratifying regional trade protocols. The imbalances that characterize each of the states, such as large differences in macroeconomic stability, unequal levels of industrialization, lack of complementarity in the structure and base of production and inefficiencies in the value chain.
Comparing all the regional economic blocs in Africa, SADC appears unique, but it is essential to accelerate reforms for a better business environment and macroeconomic stability, which are essential to attract foreign investment into the regional bloc. Thus, the SADC Business Forum was purposely organized to bring together initiatives and projects, and match synergies to create opportunities.
Agostinho Vuma, the president of the Confederation of Economic Associations of Mozambique (CTA), has recognized over the years that tariff and non-tariff barriers are an obstacle to economic integration in southern Africa. There are so many challenges, such as the prevalence of tariff and non-tariff barriers, which are obstacles to regional integration, according to Agostinho Vuma.
On the other hand, low production capacity and prohibitive interest rates imposed by banks weaken economic development and regional integration. Some reforms are almost necessary which are conducive to strengthening private sector enterprises in Southern Africa and which could facilitate the rapid integration of the region’s economies into a future free trade area, and which could attract foreign investors to foreign markets. strategic sectors of the region, he explained, taking his turn on the podium.
The SADC Business Forum also discussed the socio-economic impact of Covid-19 and post-pandemic recovery strategies, infrastructure and regional corridor development. Industrialization focused on improving the trade balance within the countries of the region, the role of the energy and mineral resources sectors and the participation of national companies in megaprojects were discussed.
Domestication of the SADC industrialization strategy with emphasis on improving the trade balance. The session, moderated by Ciyong Zou, UNIDO Program Director, attracted many participants who reviewed the process of mainstreaming and popularizing the strategy by the private sector.
Infrastructure: Development of SADC regional corridors. Participants reviewed the regional transport corridors that support the trade and regional integration agenda, and focused more on the interventions needed to form structures and attract investment.
In order to make entrepreneurship an asset in the collective structure of the region, the discussion panels share, reflect and promote existing regional dynamics and good practices, with a global impact on the ecosystem and initiatives for the development of entrepreneurship.
Energy, mineral resources and the local content value chain; Agribusiness: promote and articulate regional reference sectors; Entrepreneurship in SADC: Ecosystem and Development; Socio-economic impact of COVID-19 in the region and recovery strategies. Participants discussed the challenges imposed by the Covid-19 pandemic and what needs to be done as avenues for recovery in the strategic regional sector.
Zimbabwe, through ZimTrade, presented its trade and investment opportunities. It was about achieving its foreign policy goals, particularly the development and integration agenda, according to Zimbabwe Chronicle.
The SADC region, with a market of 350 million consumers, seeks to take advantage of existing potential, to increase trade and investment in the region, Africa and the outside world. It is difficult to obtain statistics on various economic fields. But the SADC Secretariat, in an email, told this researcher that in 2018, SACD’s total exports amounted to US $ 154 billion and total imports to US $ 149 billion.
SADC comprises 16 states: Mozambique, Angola, South Africa, Botswana, Zimbabwe, Eswatini, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Namibia, Seychelles, Tanzania, Zambia and Comoros. Within its framework, the bloc collectively seeks to promote sustainable and equitable economic growth and socio-economic development, to forge deeper cooperation and integration, to ensure good governance and lasting peace and security, so that the region become a competitive and efficient player in the southern region, in Africa and in the world.