SADC had mixed fortunes
in the 1997/98 period. Below is an abridged version of the 1997/98 SADC Annual Report.
Over the past year, the region continued to enjoy an overall
atmosphere of relative peace and political stability and witnessed the consolidation of a
democratic culture, good governance, the rule of law and respect for human rights. This is
reflected in developments such as the first municipal elections in Mozambique in June
1998, general elections in Lesotho and Swaziland in May and October respectively, and the
change of leadership in Botswana. These elections and smooth transfers of power reflect a
step forward in the maturation of democracy in the region.
Notwithstanding these positive developments, the situation in Angola and the DRC is a
source for great concern to the region. The military situation in Angola has been
deteriorating since March 1998, due to UNITA’s non-compliance with the provisions set
forth in the Lusaka Protocol.
In the DRC, measures to consolidate peace and stability were marred by the 2 August 1998
uprising, led by rebel forces fighting to overthrow the government of President Laurent
Kabila. Although some SADC Member States have provided troops and other military
assistance to the DRC government, initiatives are under way to find a diplomatic solution
to the conflict. ... It is hoped that these complimentary initiatives will assist in the
restoration of peace, security and stability in the DRC.
In 1997, the average growth rate of all SADC economies was
estimated at 2.2 percent as compared to 4.1percent the previous year. However, since this
growth rate will not be enough to make a dent in poverty, SADC’s objective is to
reach a higher sustainable growth rate by the turn of the century. It is for this reason
that SADC countries have embarked on implementing reforms aimed at improving at improving
the overall economic situation of the region.
Results from implementing tighter monetary and fiscal policies in
the SADC region have borne fruit. In 1997, only one country, (Angola) recorded inflation
above 25 percent. In the same year, six economies reflected budget surpluses, with
Botswana and Mauritius recording surpluses of 8 percent and 4.5 percent respectively.
Lesotho, Swaziland, Tanzania and Zambia also recorded surpluses, while Malawi, Mozambique,
Namibia, South Africa and Zimbabwe recorded deficits. |
However, balance of
payments did not fare well. Only five countries – Lesotho, Namibia, South Africa,
Swaziland and Zimbabwe – had current account surpluses in 1997. While most SADC
economies are experiencing current account deficits, on average, foreign exchange reserves
continued to strengthen for most of the countries.
With a population of 190 million and combined GDP of more than US$160 billion, SADC’s
intra-trade, as percentage of total SADC trade, is estimated above 20 percent.
The range of indices for SADC reflects diversity in the level of
social development. According to UNDP, Mozambique’s human development index is as low
as 0.281, while that of Mauritius is high at 0.83. Seven SADC states fall in the category
of low human development, but only four rank lower than the average for sub-Saharan
Africa.
In 1997, it was estimated that one in 10 adults in southern Africa
were living with HIV, reflecting an increase of one-third in a 12-month period. Available
data indicate that the percentage of infected adults in SADC countries ranges from 2
percent to 25 percent.
Overall, the 1997/98 crop season has been characterised by the
prevalence of erratic and below normal rainfall in the southern African countries as well
as excessive rains and flooding. Both factors led to reduced crop yields.
The production forecasts indicated an overall SADC maize harvest of 16.1m tonnes,
equivalent to almost a 6 percent decline compared to 1997 revised maize output of
17.05m tonnes and also compares unfavourably with the 1995/96 output of 20.34m tonnes.
The output of other cereals such as wheat, millet and sorghum was expected to fall in
1998, while that of rice was forecast to increase. Total cereal production in the 1997/98
season stood at 25.71 million tonnes which is insufficient to meet total requirements of
26.22 million tonnes.
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| The SADC Programme of Action |
An analysis of the SADC Programme of Action, which is an amalgam
of the various sectoral programmes in agreed areas of cooperation, shows that at July
1998, there were 404 projects valued at US$8.05 billion as compared to 407 projects worth
US$8.09 billion recorded in the previous year.
The whole regional programme continues to be dominated by the
Transport and Communications Sector which has 174 projects (43.07percent of total
projects) at an estimated cost of US$6.47 billion (80.39 percent of the total programme).
The last two years marked a turning phase in the struggle to
mainstream gender in SADC activities. It began with the September 1997 Gender and
Development Declaration which was signed by the Summit in Malawi. A Gender Unit was then
established at the Secretariat in Botswana last year.
Regarding information systems, SADC has made very little progress on the development of
statistics and it is important that the momentum gained so far is not lost. Progress has
been observed in the area of accounts and national accounts and macro-economic statistics,
which has been attained through the UN System of National Accounts Manual.
SADC is presented with a number of challenges and opportunities,
one of the most important of which is globalisation. The task is two-fold: to create an
investor-friendly economic environment, and also to implement social policies to counter
the adverse effects on the vulnerable sections of the population.
SADC in pictures
Information technology to propel SADC into
next millenium
Opportunities and challenges of
information technology
DRC: Stalled peace talks
Conflict in Angola
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