SANF 24 no 4 – By Clarkson Mambo
The SADC Council of Ministers has urged all member states to fully and urgently support the SADC Regional Development Fund, which is an important mechanism to unlock funding for regional development programmes.
This is one of the key messages from the Council of Ministers which met in Angola on 10-11 March, and also pressed for action on disaster risk reduction, and operationalizing the regional youth development programme.
The Council paid tribute to regional armies deployed in northern Mozambique and the eastern Democratic Republic of Congo for their critical role in bringing lasting peace and stability to the region.
The ministers observed a minute of silence in remembrance of the late President of Namibia, Dr Hage Geingob, and a former President of Tanzania, Ali Hassan Mwinyi, who both passed on in February, as well as two South African soldiers, who died while serving as part of the SADC Mission in the DRC.
Council also welcomed the unveiling of the statue in honour of Mwalimu Julius Kambarage Nyerere at the African Union headquarters on 18 February, in front of the Julius Nyerere Peace and Security Building.
The SADC Regional Development Fund (SADC RDF) is seen as a window to finance projects and programmes planned by the region under the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030.
The RISDP covers six priority areas which are: peace, security, and good governance; industrial development and market integration; infrastructure development; social and human capital development; and crosscutting issues of gender, youth, environment and climate change, as well as disaster risk reduction.
The SADC Secretariat estimates that over US$50 billion is required over the decade to fund projects under the plan.
The Chairperson of the Council of Ministers, Téte António, who is the Minister of Foreign Affairs of Angola, repeated the call by the SADC Chairperson, President João Manuel Gonçalves Lourenço of Angola, for member states to expedite the approval and ratification of the RDF agreement to facilitate operationalisation.
The SADC RDF was proposed nearly a decade ago as a self-financing and revolving mechanism intended to end the reliance on external support to drive the region’s development agenda.
The fund will provide financing for economic development and sustainable growth through supporting regional infrastructure development, industrial development, integration and other economic needs as well as social development, at low-interest rates.
However, the initiation of the Fund is dependent on the majority of SADC member states ratifying the agreement to establish it.
Angola is chairing SADC under the theme, “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region”. The theme emphasises the importance of finance as a key driver of development.
The SADC Executive Secretary, Elias Magosi, said the Secretariat with support from international cooperating partners, mobilised US$185 million in the 2022/2023 financial year towards supporting the RISDP.
“Despite these efforts, the resource envelope still falls far short of the total required to implement the prioritised projects for regional integration and development,” he said. “To bridge this gap, the Secretariat is exploring innovative and sustainable financing mechanisms, including fast-tracking the operationalisation of the SADC Regional Development Fund.”
In 2019, SADC leaders set August 2021 as the target date for the fund to become operational, but these plans were affected by the outbreak of the global Covid-19 pandemic.
The SADC RDF is envisaged to have an initial authorized capital of US$13 billion, with each member state paying an initial subscription fee of US$120 million.
SADC Member States will hold a majority shareholding of 51 percent in the fund, with 37 percent allocated to the private sector and 12 percent to international cooperating partners.
The SADC Council of Ministers meeting approved the SADC Annual Corporate Plan and Budget for the 2024/2025 financial year to support interventions geared towards the implementation of key regional priorities.
The Council of Ministers also called on member states to sign the Memorandum of Agreement establishing the SADC Humanitarian and Emergency Operations Centre (SHOC) for the Centre to become operational.
This decision noted the need for prompt approval of the agreement to establish the Centre due to the threat of disasters in the region, which can reverse development gains made over the years.
Based in Mozambique, the SHOC when operational, will coordinate regional disaster-risk preparedness, response and early recovery, to support Member States affected by disasters.
The SADC Council urged member states to “remain vigilant” due to the El Niño and tropical cyclones affecting the region, and to conduct in-depth vulnerability and needs assessments to determine relevant interventions to mitigate the impacts arising from natural disasters.
Madagascar, Malawi, Mauritius, Mozambique and South Africa are among SADC member states affected by tropical cyclones and flash floods that have hit the region this year.
Another key message from the Council of Ministers is the need for development of a regional programme made for the youth, to enable and support the regional integration process.
António said that, “ignoring the needs of the youth is not only short-sighted, but also jeopardises the future that we all aspire for our region.”
Young people below the age of 35 make up an estimated 75 percent of the region’s 390 million people.
In this regard, the Council urged member states to domesticate into national processes the SADC Declaration on Youth Development and Empowerment.
The Declaration was adopted by the SADC Summit in 2015, to facilitate a SADC Regional Youth Programme to empower the youth and enhance capacities for a meaningful contribution to development processes at all levels. sardc.net
