The IMF claims the programme would aid 41 of the world’s poorest countries. But critics argue its negative impact on bullion prices would be disastrous for many of those same countries whose economies depend on mining income.

Some of the delegates at the Durban summit argued that G-7 members, among them former colonial powers in Africa had a moral obligation to forgive the debts of the Highly Indebted Poor Countries.

“The answer is to write it off, selling the gold will create a new problem. It is within their (G-7) powers to do so without selling the gold,” said Mbuende.

“For the G-7 to be cautious on debt is criminal. The G-7 can help, not by preaching but by taking the debt off the books so we can proceed with proper public and private partnerships,” said South African Minister of Trade and Industry, Alec Erwin , responding to US Deputy Commerce Secretary Robert Mallet who told delegates that SADC was moving too slowly on regional trade integration.

Southern Africa hopes to enter the new millennium free from conflict and the burden of debt has contributed to a slow flow of FDI. SADC is eager to solve this by widening the region’s market potential by implementing a free-trade accord and moving towards a harmonised monetary area that would encourage growth.

“We are convinced that all SADC states would have ratified the SADC Free Trade Protocol in time for implementation by 1 January 2000,” said Mbeki.

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Economic growth in southern Africa is stalled by negative perceptions about the region and the continent in general held by international investors.

"International investors are unable to shed long-held perceptions of Africa as a continent with all the negatives attributes, including war and dictatorships," - Mbeki

President Thabo Mbeki of South Africa told a plenary session on Responsible Leadership: Trade as an Engine for Regional Integration, at the 9th Southern Africa Economic Summit of the World Economic Forum held in Durban recently.

“International investors are unable to shed long-held perceptions of Africa as a continent with all the negative attributes, including wars and dictatorships,” said Mbeki, attributing it to communication barriers between international and regional investors.

He urged investors to visit individual southern African countries for a better assessment of what they are doing in creating an enabling environment for foreign investment, adding that global perceptions about the continent do not reflect the reality in specific countries.

SADC, which has the potential to become one of the fastest emerging markets in the world, has struggled to attract foreign investment crucial to kick-starting economic growth.

Baroness Linda Chalker, former British Minister of Overseas Development, said that one of the factors impeding foreign direct investment (FDI) was lack of clear communication between government and the private sector.

“No foreign direct investment can take place unless local investment exists,” she said, adding that some international investors felt African leaders spoke “democracy but do not practice it”.

SADC leaders were urged to speed up the ratification of the SADC Trade Protocol to enhance regional integration and to work closely together with business and labour officials.

Zimbabwe’s Minister of Industry and Commerce, Nathan Shamuyarira, said the political will for regional integration exists although the community needs to accelerate the process.

“The three-year old trade liberalisation process is incomplete as five more countries must ratify the trade protocol to put it into force,” said Shamuyarira.

Under Article 41 of the SADC Trade Protocol, two-thirds of the member states must ratify the protocol, to enable it to come into force as a basis for co-operation in the region. Botswana, Mauritius, Namibia, Tanzania and Zimbabwe have ratified the protocol so far.

Conflict in the region has also exerted a brake on foreign investment and SADC placed an end to war in the Democratic Republic of Congo (DRC) and Angola at the top of its priorities.

Weeks of talks over DRC have yielded limited progress on solving the conflict, which has divided the third largest country on the continent. SADC is however, optimistic that peace is imminent and that a coalition of peacekeepers would soon be dispatched.

The region is also threatened by civil war in Angola, where fighting resumed after an uneasy four-year truce shattered by UNITA (National Union for the Total Independence of Angola).

"... the political will for regional intergration exists although the community needs to accelerate the process," - Zimbabwe's Nathan Shamuyarira.

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