South Africa has long recognised that our economic success is integrally linked to the economic success and growth of our neighbouring countries and to the prosperity of the African continent. This view has seen us place a large emphasis on growing regional trade and economic cooperation between countries in the SADC region. It has also seen us being an active participant in the African Union and the NEPAD programme.

The importance of regional trade as a contributor to higher levels of economic growth can be seen across the world, for example in Asia, Europe and both North and South America. It is therefore necessary that we find ways to increasingly grow our regional trade and the economies in our region. South Africa as the strongest economy in the region must take responsibility in ensuring that there are greater levels of imports from the SADC region to match the increase in our exports to the region. We should also be ensuring that levels of private sector investment are increased.

The legislative framework to facilitate trade and investment in the region is in place and governments in the region are increasingly working more and more closely; this must now be matched with greater levels of private sector interaction. To boost this interaction we need to have improved physical infrastructure linking our countries; more competitive logistics chains; and greater number of business forums, trade missions and joint business projects. Both the public and private sector need to work more actively in ensuring that greater levels of regional integration become a reality.

With the global economy picking up we have seen that there are new opportunities in world markets, and as a region we should be finding ways to increase our cooperation in order to boost our collective exports to the rest of the world. Taking on global markets however requires high levels of competitiveness and compliance with international standards. This recognition has seen South Africa increasingly placing more and more emphasis on improving the competitiveness of our industry, participating in international standards bodies, and promoting greater levels of compliance by our industry. It is necessary that all countries in our region and in Africa look at these issues very seriously, as falling behind would result in an increase in the divide between developed and developing countries. While issues of standards and compliance are being tackled in the WTO, as we do not want to see them being used as a means to limit market access for developing countries, we need to recognise that the long-term trends point in the direction of higher standards. It is therefore necessary that we start moving in this direction, regardless of the outcomes in the WTO, if we are to be successful in our export promotion and export orientation.

I look forward to improved levels of cooperation and growth across the SADC region in 2007 and 2008.

M. MPAHLWA
Minister of Trade and Industry