SADC Ministers of Finance and Investment and Governors of Central Banks discuss progress in the implementation of financial and investment related programmes and initiatives

The Southern African Development Community (SADC) hosted the Committee of Ministers of Finance and Investment and Peer Review Panel through virtual mode on the 6th and 7th August 2024. The meeting was attended by Ministers Responsible for Finance and Investment and Governors of Central Banks.

The objective of the meeting was to receive updates on initiatives aimed at promoting financial market development and integration, as well as assessing progress towards achieving Macroeconomic Convergence targets as outlined in the SADC regional economic integration strategy.

The meeting discussed various aspects aimed at enhancing and preserving the integrity of financial systems in SADC Member States, as well as devising strategies for sustainable finance of regional infrastructure projects through development finance interventions.

The meeting  also reviewed progress achieved in industrial development, market integration, and infrastructure development, as stipulated in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and the SADC Vision 2050.

Her Excellency Vera Daves de Sousa, Minister of Finance of the Republic of Angola and Chairperson of the Committee of Ministers of Finance and Investment and co-chairperson of Peer Review Panel commended the SADC Member States for their remarkable progress in enhancing financial investments, supporting regional infrastructure projects, and fulfilling their commitments as outlined in the SADC Protocol on Finance and Investment.

She stressed the significance of implementing robust financial and investment policies to achieve sustainable economic development, eradicate poverty, and promote regional integration, cooperation, and coordination within the finance and investment sectors.

Furthermore, H.E Daves de Sousa highlighted the commendable recovery of Member States following the impact of COVID-19, noting a steady improvement in their financial outlook. She urged them to explore diversification and expansion opportunities, enhancing trade and financial markets.

His Excellency Mr. Elias Magosi, the Executive Secretary of SADC, urged SADC Member States to continue implementing development finance interventions to address deficiencies in financial markets, optimise efficiency, and establish alternative development finance institutions (DFIs).

H.E Magosi emphasised the significant role played by Development Finance Institutions in the region, highlighting their contribution of 10% to global investment financing, equivalent to over US$20 trillion in assets and approximately US$2.4 trillion in annual lending.

Moreover, the Executive Secretary highlighted that the SADC Regional Development Fund (SADC RDF) is a landmark initiative aimed at promoting robust development of financial markets and fostering integration. The fund is intended to stimulate investment in regional projects, thereby enhancing regional integration, trade, and ultimately delivering economic and social benefits to the SADC citizenry.

Furthermore, he expressed his appreciation to the African Development Bank (AfDB) and its President, Dr. Akinwumi A. Adesina, for their invaluable support in the operationalisation of the SADC RDF. He emphasised that this demonstrates the bank’s unwavering commitment to fostering cooperation and partnership to facilitate deeper regional integration and development for SADC.

Among the key areas of discussion, the meeting also considered the Discussion Paper outlining concrete options and key recommendations for achieving the successful operationalisation of the SADC Regional Development Fund (SADC RDF). The SADC RDF aims at operationalising a regional financing mechanism for economic development and sustainable growth through infrastructure development, industrial development, integration and economic adjustment, as well as social development.

The meeting further reviewed progress report of the SADC Project Preparation Development Facility (SADC PPDF) with the objective to prepare regional projects in the energy, transport, and water sectors promoting sustainable economic growth and the delivery of vital services in the SADC region.

During the Peer Review Panel, the Ministers and Central Bank Governors conducted an assessment of economic performance in the region and reviewed the peer review reports in accordance with the approved schedule of Member States. Mr. Lesetja Kganyago, Governor of the South African Reserve Bank, co-chaired the SADC Peer Review Panel.

The meeting was attended by Ministers and Governors from Central Banks or their representatives from Angola, Botswana, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Zambia and Zimbabwe.

The mandate of the SADC Committee of Ministers of Finance and Investment and Peer Review Panel is to oversee the monetary, financial markets, investment, and infrastructure integration that are central to the SADC Integration Agenda. This is a requirement under the Protocol on Finance and Investment, which directs the Ministers responsible for Finance and Investment, and the Central Bank Governors to meet annually to review progress and provide guidance to the SADC Council of Ministers regarding monetary, financial markets, investment, and infrastructure integration.

The meeting of Committee of SADC Ministers of Finance and Investment and the Peer Review Panel was preceded by the Meeting of SADC Senior Treasury Officials from Ministries of Finance on 29 July 2024 and the joint SADC Senior Treasury Officials and Central Bank Officials on 30 July 2024.