We pay little attention to regional integration issues that are discussed, which have a bearing on Zimbabwe’s participation in regional trade. It is important that business and policy makers understand the economic resolutions made by SADC, in order to exploit opportunities and deal with the threats.
At last month’s Maputo summit, several important issues were raised, but never reported on by the media. Among these was the region’s slow economic growth as shown by a decline in the real GDP from 5.5 percent in 2010 to 4.7 percent in 2011 and a stagnant level of average inflation at 8.3 percent. This trend was largely influenced by developments in the global market, especially in the Eurozone, which meant that member states were challenged to mobilise resources for investment in projects for the region.
Another important issue discussed was making the SADC Regional Development Fund operational. This is a financial mechanism intended to mobilise resources from member states, private sector and development partners to finance regional projects. The leaders directed ministers responsible for finance and investment to address all outstanding issues in order for the fund to become operational as soon as possible.
The Summit also reviewed the implementation of the regional economic integration agenda. It received a report on the framework of the SADC Customs Union, from the Ministerial Task Force on Regional Economic Integration, outlining key elements for the Customs Union for SADC, including the sequencing of activities. The Summit also noted progress made towards the establishment of the Free Trade Area, especially preparatory work to facilitate negotiations under the chairpersonship of the SADC Region.
The status of implementation of infrastructure programmes in the region was also reviewed, with the adoption the Regional Infrastructure Development Master Plan Vision 2027 for implementation over a 15 year period (2013-2037) also taking effect. The plan will serve as a key Strategic Framework to guide the implementation of efficient, seamless and cost-effective trans-boundary infrastructure networks in an integrated and coordinated manner in the six sectors; namely Energy, Transport, Tourism, ICT and Postal Meteorology and Water. Importantly also, the Summit approved and signed the following trade related legal instruments: Agreement on Assistance in Tax Matters and Protocol on Trade in Services.
It is important for policy makers and business alike to read the communiqués of SADC Summits that would be taking place, as key regional integration issues which have a bearing on Zimbabwe are discussed. We need to stay on top of the game.
Post published in: Business