Strengthening of economic and trade political capacities and competences in SADC (Southern African Development Community

ContextThe Member States of the Southern African Development Community (SADC) have set themselves ambitious economic objectives. They are attempting to integrate their markets gradually through a commitment to reducing barriers to trade in goods and services, and aligning their economic and financial policies. In this regard the SADC Member States have already reached the first important milestones. Since 2008 a free-trade zone has extended across the region, enabling the duty-free trade in goods. Negotiations are now underway for the liberalisation of trade in services in a number of sectors. Since coming into force, the SADC Finance and Investment Protocol (FIP) has provided a legal framework for the regional harmonisation of finance and investment policies.Three key stakeholders will perform crucial roles in advancing and guiding the deeper regional economic integration. Alongside the SADC Secretariat, which acts as coordinator and manager of the regional integration process, the Member States are responsible for putting regional rulings and decisions into effect at the national level. At the same time, representatives of the private sector also have an important part to play. Their inclusion in the strategic and thematic discussions of various aspects of integration will ensure that the discussions respond to the needs of the private sector.ObjectiveThe SADC Secretariat, the Member States and the private sector are well placed to shape the process of regional economic integration in an active and targeted manner.ApproachGIZ is providing technical advice to its partners, supporting them, for example, with organisational development measures in the following areas:1. Support for the SADC Secretariat in monitoring the implementation of the Finance and Investment Protocol, and the Trade Protocol: one priority in this is to encourage technical and political exchanges between the Member States and the SADC structures.2. The project supports the negotiation of the Trade in Services Protocol by, among other things, preparing sector-related forums. GFA Consulting has been commissioned to carry out this component.3. GIZ is promoting growth in the productive industries by fostering dialogue between public and private-sector interest groups.Results achieved so farGIZ has been strengthening SADC’s Trade, Industry, Finance and Investment Directorate to improve its capacities for managing and coordinating regional economic integration process. This is done, for instance, through the introduction of results-oriented management processes. A monitoring system has been introduced to assess the progress made in this area. At the same time, GIZ is supporting a number of activities for dismantling non-tariff barriers to trade in the region, including a programme of further training for border guards, and a range of public-private dialogues events.At Member State level, the project has supported the national consultations which provide the basis for the negotiation of the regional trade in services.A variety of mechanisms has been introduced to involve the private sector more strongly in regional economic integration. The two sides – public and private – are coming increasingly to understand the potential of enhanced exchanges. In 2014, GIZ analysed what it saw as some of the major constraints to a positive business and investment climate in the region. Possible solutions, such as the introduction of a universal visa requirement for the SADC region, are to be pursued further in cooperation with private-sector representatives. GIZ is also supporting the expansion of ‘SADC3P’, a network of public-private partnerships for infrastructure projects at SADC level.

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