The Southern African Development Community (SADC) has continued to strengthen regional economic cooperation as member states deliberate on key issues related to finance, investment, and economic development aimed at accelerating growth across Southern Africa.
A high-level delegation from Tanzania, led by the Permanent Secretary of the Ministry of Finance, Dr. Natu El-Maamry Mwamba, participated in the meeting of Treasury Secretaries and Senior Central Bank Officials of Southern African Development Community (SADC) held in Harare, Harare, Zimbabwe.
The meeting brought together senior officials from member states to discuss financial cooperation, investment frameworks, and strategies to enhance economic integration in the region.
The discussions focused on several key areas, including the implementation of the SADC Regional Development Fund, progress on macroeconomic convergence indicators, strengthening regional capital markets, and the development of the SADC Real-Time Gross Settlement (SADC-RTGS) payment system.
These initiatives are designed to improve financial stability, facilitate cross-border trade, and support sustainable economic growth within the region.
Member states also reviewed proposals on alternative financing mechanisms for regional programmes and projects.
Among the proposals discussed were the introduction of an import levy on goods entering from outside Africa and a tourism levy to support regional development financing.
However, several delegates raised concerns about the practicality of these options, noting that they may conflict with national revenue laws and could increase the cost of tourism, potentially affecting the sector’s competitiveness.
The meeting further examined measures to strengthen investment mobilisation and improve the governance of the SADC Development Fund.
Delegates reviewed the implementation status of previous decisions, discussed ways to enhance financial sector oversight, and explored strategies to combat money laundering and the financing of terrorism within the region.
In discussions on the Regional Development Fund, Tanzania reaffirmed its strong support for the initiative while emphasizing the need for full implementation of all decisions agreed upon in SADC forums to accelerate signing, ratification, and implementation of regional programmes.
Speaking during the session, Dkt. Natu El-Maamry Mwamba stressed that effective implementation of regional decisions is essential to ensure that SADC programmes and projects are delivered efficiently and on time.
He noted that while the SADC Regional Development Fund is expected to improve access to financial resources for development projects, member states face varying fiscal capacities, with some countries still experiencing debt pressures and budget constraints.
He further emphasized the need for realistic assessments of member states’ ability to contribute to the fund, ensuring fairness and sustainability in its design and implementation.
He also highlighted the importance of maintaining a balanced contribution structure between member states and development partners to safeguard the credibility and long-term sustainability of the fund.
Tanzania reaffirmed that it has already signed the agreement establishing the SADC Regional Development Fund and is finalizing internal ratification procedures before submitting formal instruments to the SADC Secretariat.
The meeting also reviewed progress in strengthening financial systems, regional payment integration, and efforts to enhance cooperation among central banks through the SADC-RTGS platform.
Additionally, member states discussed measures to combat money laundering and the financing of terrorism, emphasizing stronger coordination among financial intelligence units to protect the integrity of regional financial systems.
The outcomes of the meeting will be submitted to the upcoming SADC Ministers of Finance and Investment for further consideration, with expectations that they will guide policies aimed at boosting economic growth, investment, and regional financial cooperation across Southern Africa.
