Trade between SADC members low
It seems close proximity counts for precious little when it comes to trade for Southern African Development Community (SADC) countries, with the regional bloc preferring distant, more lucrative markets for its exports.
Last year, trading between the bloc’s 16 member states stood at just 23 percent, with non-tariff barriers viewed as one of the main reasons for this.
Such obstacles include: restrictions on import quotas, subsidies and customs delays.
“Despite zero import duty on 85 per cent of products traded among SADC Member States, intra SADC importers and exporters continue to encounter new and longstanding unresolved non-tariff barriers. It is therefore imperative to rededicate our collective efforts to implement measures to reduce these barriers and promote intra-regional cooperation and integration,” stressed SADC Executive Secretary, Elias Magosi at the 44th Ordinary Summit of SADC Heads of State and Government in Harare, Zimbabwe last week.
As part of their efforts to facilitate enhanced trade between the SADC community, Magosi revealed they are compiling information on the top ten exports and imports of SADC nations.
The list will include what goods the region traded with the rest of the world.
“This would be used to develop strategic interventions and actions to improve access to markets within SADC and facilitate improved intra-regional trade within the region,” explained Magosi.
SADC also have plans to expand the market beyond Southern Africa, establishing the Tripartite Free Trade Area with Eastern and Southern Africa (COMESA) and the East African Community (EAC) in July.
This three-way collaboration will give member states access to a market of 26 countries with a population of 700 million and a GDP of US$1 trillion.
Meanwhile, Magosi admitted the 2023/24 rainy season had been a challenging one, with much of the region experiencing the negative effects of El Niño, including late onset of rains, extended midseason dry spells and extreme high temperatures.
As a result, an estimated 67.7 million people in SADC, which represents just over 17 percent of the region’s 389 million population, were negatively affected.
SADC has since rolled out a humanitarian appeal amounting to at least U$5.5 billion, to support the needs and disaster response recovery of the affected population.
