It is my pleasure to present to you this 11th edition of the Official Southern African Development Community (SADC) Trade, Industry and Investment Review, which is not only the most authoritative and comprehensive publication on Trade, Industry and Investment in SADC, but is distinctively visionary and forward looking.

The SADC Review continues to provide valuable information on trade, industry and investment opportunities in the region. Its unique approach to dissemination of information has contributed to attracting global partners and investors to the region.

This year’s edition is particularly important as we reflect on the achievements we have so far made in our regional integration agenda, particularly with regard to political stability, infrastructure development and the facilitation of trade. The region, through the SADC framework, has worked tirelessly towards attaining sustained economic development and a stable political climate through its all-embracing approach to regional integration.

Through this integrated approach, several programmes aimed at improving and developing regional infrastructure, institutional capacity building and strengthening, simplification of customs procedures, enhancing productivity, and reducing the cost of doing business in the region have been initiated. We have witnessed positive results in these initiatives.

Major policy frameworks, namely the Regional Indicative Strategic Development Plan (RISDP) and the Strategic Indicative Plan of the Organ on Politics, Defence and Security Cooperation (SIPO) have been adopted to drive the socio-economic integration and political cooperation. These will continue to guide the implementation and prioritisation of programmes aimed at enhancing the competitiveness in the region.

However, the region has faced several challenges in the implementation of its integration agenda. The pace of integration has not proceeded as planned. We are currently deliberating on implementing a fully-fledged Free Trade Area by 2008, in the face of many implementation problems that are yet to be resolved. Non-tariff barriers to trade have continued to be a threat to the growth of intra-regional trade. The level of economic growth, infrastructure development and support to institutional arrangements still remain at low levels.

In an effort to accelerate the pace of regional integration and to find lasting solutions to the challenges facing the region, a Task Force of Ministers of Finance, Investment, Economic Development, Trade and Industry was established in 2006. The work of this Task Force will certainly provide leadership in building on the priorities contained in the Regional Indicative Strategic Development Plan by recommending appropriate policy guidelines to further accelerate the pace of integration towards the establishment of a Customs Union by 2010, a Common Market by 2015 and a Monetary Union by 2018.

I wish to reiterate our region’s commitment to eradicating extreme poverty and hunger in line with the Millennium Development Goals (MDGs). HIV and AIDS, Malaria and TB have also been highlighted as areas of concern to the growth and development of the region. In this regard, all SADC activities and programmes have been designed with a view to contributing to the attainment of the region’s economic growth and development objective.

In the area of trade, the focus is to enhance intra and inter-regional trade by according Member States an opportunity to access cheap raw materials and a wider market through the progressive liberalisation programme that is currently being implemented. The region is working towards diversifying its export products and markets so that adequate finances can be generated to boost the resource base of the region.

A robust programme on infrastructure development necessary to facilitate trade and overall economic growth of the region has supported the efforts in this sector. Initiatives aimed at improving road networks, power pools, bridges and border facilities remain key in accelerating the integration agenda of SADC. In the months ahead, we need to continue our efforts towards reducing transport costs, enhancing productivity and competitiveness as well as improving economies of scale. We must decisively address the impediments that have continued to cripple the region’s capacity to effectively integrate into the global economy.

While the region has made tremendous progress in expanding intra-regional trade from a meagre 5 percent in 1980 to about 25 percent today, its composition of trade remains concentrated in a few primary commodities. Supply capacity constraints continue to be a major bottleneck to the region’s capacity to diversify its productive base and to expand its export share in global export trade.

The SADC region shall continue to complement its efforts by appropriate policy intervention in all spheres of socio-economic development. The sustained positive economic growth of above 4 percent attained in the recent past is an important achievement for the region. We shall continue to work and improve on our macro-economic environment in order to ensure that the region attracts investors in key economic sectors. We shall certainly continue to safeguard the political stability we have attained so far to ensure that the regional integration agenda remains on course.

Cooperation with the international community will remain an integral part of our integration agenda. In this regard, Member States shall continue to engage in constructive dialogue with our partners individually or collectively in order to conclude programmes supportive of our regional economic agenda.

I conclude by inviting you to take time to sample the business opportunities offered by the SADC region. I wish to assure you that the business choices you make in our region will be beneficial.

Levy Patrick Mwanawasa (SC)
President of the Republic of Zambia
and Chairperson of the Southern African Development Community (SADC)
August 2007