Economic progress slow, says SADC secretary

The lacklustre performance of Southern African economies over the past year has been attributed to the AIDS pandemic, political instability in some countries, and the negative effects of prolonged drought. In his annual report, the Southern African Development Community (SADC) secretary, Prega Ramsamy, noted that regional economic growth had stagnated, jeopardising progress towards achieving the UN's Millennium Development Goals (MDGs). The MDGs cover eight major commitments to be achieved by 2015, including halving poverty. Ramsamy highlighted that the average economic growth rate for the region had stagnated at 3.2 percent over the past two years, and the situation had not improved this year either. A key prerequisite for achieving the MDGs is an economic growth rate of between six and seven percent. "If this situation is not reversed quickly it is hard to see how SADC is going to meet the MDGs," the secretary commented. Richard Meissner, editor of the SADC Barometer, said regional economies were hamstrung by a number of factors, including the lack of access to international markets. "Of course, HIV/AIDS has dented performance, especially in the agricultural sector, but Southern Africa still battles to export surplus produce to the rest of Africa and the world," Meissner noted. Southern Africa has the highest HIV prevalence rates in the world. He added that several countries, like Malawi and Zambia, were "chronically indebted" to international financiers, which in turn impacted on the ability of their governments to make economic gains. According to Ramsamy, over the past 12 months the regional manufacturing sector had seen an improvement, which had contributed to job creation. However, he underscored that manufacturing companies still faced obstacles, including the "fluctuation of exchange rates, crime, lack of market information, customs procedures and economic and regulatory policy uncertainty". Regarding food security, Ramsamy noted that the current food supply assessments indicated a regional cereal deficit of about 1.69 million mt, down from 2.96 million mt in 2003/04. Similarly, the regional maize surplus had also increased from 152,000 mt last year to 1.27 million mt this year. Despite some of these marginal improvements, there were still concerns about corruption, Meissner said. The latest SADC Barometer showed that Southern Africans were perturbed by what they perceived was endemic government graft. "There is a strong feeling throughout the region that money that is supposed to be spent on aid and development ends up in the pockets of politicians. So, what we find is that those who are poor, remain that way," Meissner added. The SADC Barometer is a quarterly publication of the Southern African Institute of International Affairs, which critically evaluates progress in implementation of the various protocols, political and economic convergence, and progress toward the SADC's economic and social development goals.