Page 61 - 41st Summit Brochure

Foreign Direct Investment. The Strategy will be for the implementation of the tax frameworks,
submitted for consideration and approval by the including the VAT, Excise Tax and Indirect Taxes
Ministerial Task Force on Regional Economic Guidelines to ensure harmonisation of the tax
Integration in June/July 2021. regimes in the region.
v Enhance Customs border operations through
Value Added Tax (VAT), Excise Taxes, and Tax developing and implementing Co-ordinated
Incentives Guidelines Border Management strategies, SADC Simplified
The Tax Subcommittee at its meeting in March 2021 Trade Regime (STR) Framework and undertake
reviewed the implementation of the Value Added Tax Time Release Study (TRS) in the major corridors
(VAT), Excise Taxes, and Tax Incentives Guidelines. to ensure efficiency and effectiveness of clearing
The Subcommittee also reviewed status on the goods at border posts of SADC Member States.
Double Taxation Avoidance Agreements Network in v Integrate and automate Customs systems and
the region. To facilitate signature and ratification of processes to speed up clearing process of goods
tax agreements, the Directorate continued to support and reducing transaction costs. This will
Member States in stakeholder sensitization and facilitate implementation of the SADC e-
awareness campaigns on the importance of tax Certificate of Origin (eCoO) framework, the
agreements and their role in investment and SADC Regional Customs Transit Guarantee
economic growth. The Directorate also conducted an (RCTG) Regulations, and other customs
assessment on the level of appetite for Member States instruments.
who are willing to negotiate their double taxation v Harmonise Customs instruments and
agreements to determine the feasibility of organizing implementing them to facilitate intra and extra
an event on facilitated negotiations aimed at SADC trade. These instruments include SADC
advancing the network of double taxation Regional Customs Transit Guarantee (RCTG),
agreements. A report was discussed by Ministers of Regional Framework for Authorised Economic
Finance and Investment in July 2021. Operators (AEOs) and other International and
agreed Regional Customs and Trade Facilitation
Instruments.
v Effective monitoring of Member States in the
LOOKING AHEAD implementation of stability oriented macro- 59
economic policies as well as enhancement of
In its bid to facilitate trade and financial liberalisation capacity in macroeconomic management and
and creation of an enabling environment for convergence strategies. FIC Directorate will
investment, contributing to deeper regional continue to work closely with the
economic integration, inclusive growth and poverty Macroeconomic Surveillance in the Directorate
eradication, the FIC will focus on the following key of Policy Planning and Resource Mobilisation
priorities in 2021/22. (PPRM) to ensure the full and effective
v Development and strengthening of financial and functioning of the Peer Review Process by
capital markets through the optimisation of the reviewing economic developments and assessing
SADC Real Time Gross Settlement System, performance against targets in Member States;
including the onboarding of low-value credit and determining whether the programme as
transactions and new currencies in the system; implemented satisfies the common guidelines
review of the SADC Financial Inclusion Strategy and objectives and advice on possible changes as
and SMEs Access to Finance; harmonisation of necessary.
non-banking and banking financial systems, laws v Ensure sustainable financing of regional
and procedures; development of the capital infrastructure and industrial projects. In a bid to
markets; harmonisation of the Anti-Money deepen regional integration, there is a need to
Laundering/Counterfeit Terrorism (AML/CFT) increase regional projects reaching financial close
Laws in compliance with 40+9 Financial Action and industrial projects being developed for
Task Force standard; and review of the regional value chains. In this regard,
implementation of the Revised Roadmap towards implementation of the project on Sustainable
the operationalisation of the SADC Regional Financing of Regional Infrastructure and
Development Fund. Industrial Projects in SADC will continue. The
v Operationalize the Regional Action Programme project aims to increase a number of priority
on Investment, with emphasis on developing regional infrastructure projects prepared to reach
national implementation strategies for the financial close, enhance the capacity of SADC
domestication of the SADC Investment Policy Member States to prepare and implement
Framework; the development of the SADC regional infrastructure projects and increase in
Investment Climate Scorecard; the assessment of value addition within SADC in copper and cobalt
implementation of the Protocol on Finance and mining leading to an increase in its share of
Investment; and monitoring and building capacity contribution to the regional economies and jobs.