Southern Africa: U.S.$8bn Boost for SADC Agenda

15 August 2024

The Herald (Harare)

The SADC development agenda was boosted yesterday with the signing in Harare of a Memorandum of Understanding with the Arab Bank for Economic Development for Africa (BADEA) that commits an initial US$8 billion from sovereign wealth funds in the Arab world to back investments in the region.

The MoU was signed by Sadc Executive Secretary Mr Elias Magosi and BADEA president Dr Sidi Ould Tah.

Foreign Affairs and International Trade Minister Ambassador Frederick Shava, who was the guest of honour, welcomed the commitment by the two organisations to co-operate in pursuit of Sadc's development.

"Our MoU commits both SADC and BADEA to promote cooperation in the areas of industry, transport, infrastructure, construction, energy, water, health, trade, agriculture, and investment. These are key developmental issues in the SADC development agenda," he said.

"The MoU further commits both parties to jointly facilitate the convening of forums, seminars and exhibitions involving the parties' stakeholders, including the private sector. This is the basis for this prestigious Sadc-BADEA Investment Forum.

"As Sadc, our regional integration agenda is guided by our Vision 2050 and the regional indicative strategic development plan 2020-2030, which prioritise development initiatives on peace and security, industrialisation, infrastructure development, social and human development and cross-cutting issues that include gender, youth, environment, climate change; and disaster risk management."

Ambassador Shava said Sadc required development financing in infrastructure development, particularly in relation to water, energy and transport.

"I am hopeful that our discussions and exchanges today will be translated into impactful policy solutions that will support the preparation and implementation of infrastructure projects," he said.

In his remarks, Dr Tah said BADEA's commitment to Africa's development was unwavering.

"BADEA, along with its institutional partners, will provide US$8 billion to support Sadc in areas such as transport, telecommunication, energy, and infrastructure. Nevertheless, we do believe that the potential is much higher than the figure I just mentioned," he said.

"While we are proud of projects we have been able to do together in rural development, water supply, electricity generation and transmission, education, health, and research and development, we still do believe that the potential is much higher than what we have done so far. The aim of this forum is to explore the potential of development and investment in this region.

"As you know, our shareholders, the shareholders of the Arab Bank for Economic Development, have a sovereign fund with a wealth of more than US$1 trillion to be invested worldwide. Unfortunately, the share of the SADC region so far is a tiny share.

"We want to reverse that. We want the SADC region to receive more investment and to develop more projects in partnership with the Arab Co-ordination Group."

In his remarks, Mr Magosi said the investment forum provided a platform to exchange views and proffer solutions to challenges faced by the region.

"We are increasingly experiencing devastating challenges to peace and security, climate change, low manufacturing base, stagnant growth, and wasteland terms of trade. These challenges require well-thought-out solutions.

"It is for this reason that this forum is being held today, to provide a platform for us to exchange views on innovative and cutting-edge ideas that can be transformed into solutions to create a positive impact and rescue our people from the devastating flaws of poverty, hopelessness, and despair," he said.

The investment forum came on the heels of the highly successful Sadc Industrialisation Week that was held early this month.

Read the original article on The Herald.