Page 21 - 40th Summit Brochure 2020

Economic Developments in SADC
T e economic performance of the SADC region in 2019 slowed down when compared to the previous
years, with the average real Gross Domestic Product (GDP) growth being two percent lower than an
average of 2.9 percent realised in the three preceding years from 2016 to 2018. T e deterioration was
in line with the weak commodity prices, slowdown in global economic activity and escalated global
trade tensions, with the severity varying across Member States.
Provisionally, the annual regional inf ation increased to an average of 12.1 percent in 2019 from
an average of 8.2 percent in 2018. However, excluding Angola and Zimbabwe – which recorded inf a-
tion rates of 17.1 percent and 109 percent in 2019 (when calculated in local currency), respectively –
the average inf ation for the SADC region slowed down to 4.3 percent in 2019 from 7.1 percent in
2018. In 2020, the regional economic growth is expecting a contraction of about 3 per cent mainly due
to the adverse impact of COVID-19.

Implementation of Programmes of Regional Cooperation and Integration
T e year 2019/20 marked the f nal year of implementation of the Revised Regional Indicative Strategic
Development Plan (RISDP) 2015-2020, which was approved by the Extra-Ordinary Summit in April
2015 in Harare, Zimbabwe. T e Revised RISDP, together with the SADC Strategic Indicative Plan for
the Organ on Politics, Defence and Security Cooperation (SIPO II), remain the core comprehensive
development frameworks that guide the implementation of SADC’s integration agenda and realization
of the SADC Objectives, Vision and Mission as enshrined in the SADC Treaty and Common Agenda.

Industrial Development and Market Integration
Regarding implementation of the Industrialization Strategy and Roadmap, the region achieved an im-
portant milestone when the 39th SADC Summit approved the SADC Protocol on Industry in August
2019. T e Protocol is a stand-alone and binding legal instrument that will entrench and give legal ef ect
to the SADC Industrialisation Strategy and Roadmap and its Costed Action Plan, and will facilitate
18 adequate coordination, monitoring and evaluation of implementation at both regional and national
levels. To date, Seychelles has ratif ed the Protocol.
T e SADC Regional Mining Vision and Action Plan were also approved by the 39th SADC Sum-
mit in August 2019. T e mining vision aims to optimize the developmental impact of mineral resources
extraction across the region to assist Member States to gain more from their natural resources.
A number of initiatives were also implemented towards market integration and promotion of
quality and standards of infrastructure necessary for increasing the competitiveness of goods produced
in the region. Notable progress has been made in the area of payment systems whereby all Member
States are implementing the Real Time Gross Settlement System (RTGS). RTGS facilitates quicker
transactions and brings about ef ciency in payments. More than 1.8 million transactions have been
settled as at the end of March 2020. T is amounts to ZAR 7.17 trillion since July
2013 when the system went live.
T rough implementation of the SADC Postal Strategy (2017-2020) and
SADC Postal Financial Inclusion Strategy, the region reduced a number of adult
population that remains unbanked or under-banked from 60 per cent in 2017 to
68 percent in 2019.

Infrastructure Support for Regional Integration
Progress was made towards realization of SADC Infrastructure Vision 2027 and
contribution towards the Industrialization Strategy and Roadmap 2015-2063
through implementation of various initiatives. In the energy sector, the region
commissioned 3595 megawatts (MW), which is about 90 percent of the targeted
capacity of 4000 MW for 2019/20. T e 2019/20 generated capacity was contributed
by Angola, Democratic Republic of Congo (DRC), Malawi, Mozambique, Namibia,
South Africa and United Republic of Tanzania. When considering the current
peak demand and generation capacity reserve margins, the region has a def cit of
1904 MW. T e def cit emerged as a result of reduced operating capacity due to
planned and unplanned maintenance in large power plants in the region during
2019/20 f nancial year. T e regional generation mix is still dominated by coal at