CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
|
Southern Africa |
DEVELOPMENT
Has the Southern African Development Community (SADC)
lived up to the original
expectations of its founding fathers?
When nine heads of state and government launched the SADC in Zambia’s Capital, Lusaka, in April 1980, a lot was said and heard about how the regional economic grouping would provide answers to the declining economies of member states. It was said that by pooling their resources, by enhancing regional trade and instituting a common approach to their respective social and economic woes, the region would soon achieve economic growth.
Twenty-one years on, economic growth — largely achieved by sustained levels of investment, is still a scarce commodity in most SADC states. Angola, Botswana, Mozambique, Malawi, Swaziland, Tanzania, Zambia and Zimbabwe were the first countries to launch what they had called the Southern African Development Coordinating Conference (SADCC). This was preceded by the adoption of the Lusaka Declaration —«Southern Africa:Towards Economic Liberation».
But when majority rule was achieved in what was then an apartheid South Africa, the grouping quickly took a another look at its membership, and included South Africa in its master plan. By the time the SADCC was re-named the SADC (in 1992), the economic bloc had three more members, namely Mauritius, Namibia and Congo RDC.
Pregga Ramsamy is the SADC‘s executive secretary. He observes that the decreasing rate of domestic saving (i.e. the number of people who save money in banks) among member countries, is threatening the much needed investment in the region. «It is disheartening to note that the current rate of domestic saving in the majority of member states is very low and has in fact deteriorated over the past two decades», says Ramsamy.
According to the African Development Bank (ADB), the SADC‘s Gross National Product (GNP) per capita fell by 0.4 percent and 1.3 percent in 1997 and 1998, respectively. The average income per capita had amounted to US $988 and to-day was lower than it was in 1970 for most countries in the region.
Statistics from the SADC secretariat indicate that the region had achieved a three percent annual real growth of GDP during the last half of 1990s, and the highest growth was attained in 1996 when it was pegged at 4.1 percent achieved in 1999.
Economic growth rate is too low
Malawi’s President Bakili Muluzi is the current SADC chairman. He says the region’s economic growth rate is too low to meet internationally recommended levels. «The economy of our region is presently growing at a low rate of three percent of the GDP. This is too slow and low to achieve the expected international economic growth rate of six percent of the GDP,» he says.
Muluzi also states that the burden of international debt among member countries is also crushing their economies and contributing to their levels of poverty. «In this respect, I will continue appealing to the International Monetary Fund (IMF), the World Bank and all foreign creditors for a total debt relief or cancellation. With our voices as one we will succeed in this quest», says Muluzi.
It should be noted that the SADC is generally considered to be the most successful of Africa’s economic blocs, but still had a total external debt of US $84.2 billion recorded in 1998. Latest figures indicate that the debt has been reduced by US $4 billion. Economic analysts attribute the reduction to strict debt management policies, avoidance of new borrowing by member states and debt forgiveness under the Highly Indebted Poor Countries (HIPC) initiative. (Malawi, Zambia and Tanzania are the SADC‘s latest admissions into the IMF and World Bank’s HIPC initiative). Observers say this will go a long way towards alleviating their debt burden.
HIV/AIDS
But HIV/AIDS continues to be a major challenge to economic development in the southern African region. The scourge has forced many member states and donor agencies to increase their budgetary allocations to the health systems.
Thuthula Balfour is director of the health sector coordinating unit in SADC. She says the epidemic has a negative impact on productivity in the region since it was mostly the young productive age group that was dying from HIV/AIDS-related diseases.
Statistics indicate that about 10 million SADC citizens are living with the human immunodeficiency virus that transmits AIDS, accounting for nearly five percent of the total population.
Resources are available
SADC member states are registering a sluggish economic performance despite having rich water and mineral resources which, if well exploited could make a difference. According to «Regional Integration In Southern Africa» (Author: Pregga Ramsamy and published by South Africa’s Institute of International Affairs), more than 50 percent of the total SADC area of 9.3 million square kilometres is covered by lakes and rivers that could be jointly exploited for irrigation, hydro-power, fisheries and tourism development. The author concludes that there is obviously a major need for cross-border and foreign investment in order to exploit these huge resources.
Editor’s note — The following are now members of the SADC: Angola, Botswana, Congo RDC, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
ENGLISH CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
PeaceLink 2001 - Reproduction authorised, with usual acknowledgement