Page 50 - 40th Summit Brochure 2020

concluded in 2018 with the adoption of eral standard of living in the SADC region is
schedules of commitment in the six sectors deteriorating as shown by the decline in the
by Member States. T e Protocol has not en- regional average GDP per capita from
tered into force as it is yet to receive the two- US$4,031.97 in 2018 to an estimated
thirds ratif cation by Member States. US$3,951 in 2019.
Preparatory work for the 2nd Round is at an
advanced stage as SADC Member States are Inf ation
now conf dent in that trade in services can Regional inf ation increased to an average
help economies achieve more rapid growth, of 12.1 percent in 2019 from an average 8.2
enhance domestic f rms’ competitiveness, percent in 2018. T is was largely due to
and promote inclusiveness in terms of skills, heightened inf ationary pressures in Angola
and the location of economic activity. and Zimbabwe, which recorded inf ation
rates of 17.1 percent and 109 percent re-
T e priority sector under this phase is
business services that include professional spectively in 2019. T e average inf ation for
the SADC region excluding Angola and
and distribution services, as these can con- Zimbabwe slowed to 4.3 percent in 2019
tribute to SADC’s Industrialisation Strategy from 7.1 percent in 2018. T is indicates the
and Roadmap by providing much of the extent to which the two Member States are
value addition in manufacturing value impacting the regional inf ation average.
chains adopted by the region. T e single digit inf ation has been achieved
It is anticipated that the positive out- by some Member States who have benef ted
come of the SADC negotiations process will from weak commodity prices globally, par-
also provide SADC Member States with a ticularly oil which is a major determinant of
strong basis for the current negotiations of the general price levels in the region. Four
trade in services under the African Conti- Member States (Angola, Malawi, Zambia
nental Free Trade Area and the Tripartite and Zimbabwe) missed the inf ation target
Free Trade Area. range of 3 to 7 percent in 2019, compared to
the f ve Member States (Angola, DRC, Mau-
ritius, Zambia and Zimbabwe) that missed 47
the regional inf ation target in 2018. In the
FINANCE, INVESTMENT DRC, the average inf ation declined from 31
AND CUSTOMS percent in 2018 to 4.9 percent in 2019.
However, the severe build-up in inf ationary
pressures in Zimbabwe resulted in average
inf ation rising to 109 percent in 2019 com-
pared to 10.6 percent in 2018.
ECONOMIC DEVELOPMENTS
Economic Growth
Preliminary data indicates that real GDP
growth in 2019 averaged 2 percent. T is is
lower than the 2.9 percent average growth re-
alised in the three preceding years from 2016
to 2018. Economic performance was largely
weighed down by the weakening global
economy, low commodity prices and adverse
weather events such as drought which af-
fected some parts of the region. Despite these
developments, some SADC Member States
registered strong economic growth levels, in-
cluding the United Republic of Tanzania,
DRC, Madagascar, Malawi, Mauritius and
Seychelles. Tanzania was the best performing
economy, af er achieving the regional real
GDP growth target of 7 percent.
T e living standards within the region as
measured by GDP per capita vary among the
16 SADC Member States. However, the gen-