News Features
Rapid Urbanisation: Major Threat to Health and Environment
The Long March Towards Gender Equity in SADC
Durban Economic Summit to Review Progress Since 1999

Documents
GAD Exchange, Issue No.20,June 2000
State of the Environment Information Brief:Indicators for State of Environment Reporting

   The 10^th Southern African Economic Summit of the World Economic Forum (WEF) takes place in Durban, South Africa, from 21-23 June 2000. The conference is expected to focus on evaluating progress achieved in Africa since the last summit, as well as investigating means and processes through which a real African Renaissance can be kick-started.

    The summit, co-chaired by WEF and the Southern African Development Community (SADC), enjoys the reputation of being one of the most strategic regional forums where African and international business leaders interact with political leaders in an informal atmosphere.

    The summit also allows participants to confront perceptions with realities and in so doing create a better understanding with those who are ultimately charged with the responsibility of pushing forward southern Africa -- the politicians.

    The first Africa Competitiveness Report (ACR), launched in 1998 during the Namibian summit, was received worldwide, and particularly in Africa, as a useful tool since it measures the competitiveness of African nations not only among themselves, but also in relation to other emerging markets.

    The 2000/2001 report will be launched at this year's summit. It analyses indicators for 31 selected African countries. The report is a useful source of information on the opportunities and changes taking place on the continent. Perhaps more important, the ACR has become a reference point in many African nations when it comes to promoting foreign investment. But has also been damaging to countries that are among the lower rankings.

    The challenges that faced last year's meeting, also held in Durban, was on "how to move from words of hope to action; how to give form to the African economic renaissance that South Africa had begun calling for some years previously; how to give substance, and not just lip service, to the African century - as some African leaders have begun calling the 21st century - a time of hope and growth to a continent where opportunities abound," says last year's annual meeting report.

    It was noted at the 1999 summit that for southern Africa to be recognised as a worthy market place, there must be a comprehensive plan for regional integration, including a timetable for implementation. Capacities have to be increased and dramatically improved. These include the capacity for people to obtain good education and skills, the capacity of governments to provide an environment based on motivation and constant learning. The need for the region to communicate better with the rest of the world was also emphasised.

    According to Finance and Investment Sector Coordinating Unit (FISCU) quarterly newsletter, significant progress has been made in establishing a website for SADC central banks on which economic and financial statistics, information on financial systems, policies, structures and markets in the region is published.

    SADC Central Bank Governors have also launched a project document entitledSADC Financial Systems: Policies, Structures and Markets. This document contains information on all SADC central banks, their governance and instruments. Among the objectives of the project was the need to reduce the settlement period, first between banks and later the companies doing business, especially across borders.

    Participants at the 1999 summit agreed that SADC finance ministers should collaborate with their trade counterparts for the formulation of a coherent strategy on multilateral investment agreements for the benefit of the region. It was envisaged that the issues arising out of this debate would form a significant section of the proposed finance and investment protocol. Ministers of finance agreed at a meeting in November 1999 to speed up the process of formulating the protocol, a process expected to span four years.

    Intra-regional trade is perceived to be a critical sector in southern Africa as it contributes toward deepening regional integration and help with the community building process in SADC. The 2000 summit is held two months before the SADC Trade Protocol, ratified by 10 out of the 14 SADC countries as of January 2000, is launched. The Trade Protocol is expected to be implemented by September 2000.

    According to Fudzai Pamacheche, an economist with SADC secretariat "On average about 30 percent of all tariff lines will be reduced to zero on entry into force of the Trade Protocol. For some countries (in the SADC region) this category of products is about 56 percent. The level of the products currently categorised as sensitive is about 25 percent but the objective of the negotiations is to reduce the proportion of sensitive products to 10 percent at most."

    A general commitment has also been made by each member state to ensure the elimination of all known non-tariff barriers once the trade protocol is enforced. The elimination of non-tariff barriers will add impetus to the regional integration process, as the cost of trade transactions will be reduced to the advantage of importers and exporters as well as the final consumers.