Southern Africa Unfazed …As SADC Forges Economic Ties With China, Russia, EU
Southern Times -- Oct 16, 2018
By Timo Shihepo
Windhoek - The deliberate paradigm shift by the Southern African Development Community (SADC) from the West, especially the United States to China in the east seems to have gained traction after it came to light that the regional bloc has chosen not to enter into trade agreements with the US.
According to a SADC Secretariat document seen by The Southern Times, the 16-member regional bloc has regional trade agreements with China, Russia and the European Union (EU) but none with the US.
Information shows that the SADC Council of Ministers meeting held in August 2017 in South Africa, recommended that the regional heads of state and government sign into force an agreement between SADC and Russia in the area of military and technical cooperation.
At the same meeting, Zimbabwe, Madagascar and Mauritius recommended that the SADC Secretariat make alterations to the draft framework agreement on economic trade, investment and technical cooperation between SADC and China before finalisation.
The SADC Secretariat submitted these changes to China for final consideration. Both the Russia cooperation agreement and the China framework agreement were signed into force in July 2018.
The Southern Times is also reliably informed that the SADC Secretariat has asked China to construct a regional logistics depot. China is yet to respond to that request.
China has been cementing its influence in the region and the African continent as a whole.
The region seems to be shifting its economic partnership towards the East, boosted by China’s U$60 billion pledge to Africa’s development in 2015 that was renewed earlier in September 2018. And the SADC heads of state and government seem content to shift the paradigm to China.
“No one can stand in the way or obstruct sovereign African countries from travelling to China to meet our all-weather friend, who has pledged to walk with us through thick and thin, down the path to economic development and prosperity,” SADC chairperson and Namibia’s president, Dr Hage Geingob, said recently.
The US government, however, seems unfazed by the fact that it does not have a trade agreement with the region. The Southern Times has learnt that the current administration, headed by President Donald Trump, generally favours bilateral (country-to-country) trade agreements over large plurilateral (regional) ones.
“President Trump has requested a comprehensive review of all US trade agreements and preference programmes to ensure that they are meeting their objectives and are in the US national interest. The analysis is ongoing at this point, but we did issue a notice inviting public comment as part of the review,” Ineke Margaret Stoneham, the public affairs officer at the US Embassy in Botswana told The Southern Times.
The US has over the years entered into agreements with individual countries, mostly in the areas of health and education.
Asked if the US has recently engaged the SADC Secretariat with the aim of having a regional agreement, Stoneham said: “SADC’s stated objectives are to promote regional development, peace and security, and economic growth to alleviate poverty, enhance the standard and quality of life of the peoples of southern Africa, and support the socially disadvantaged. To support regional development and SADC’s goals, USAID entered into a 5-year, US$700 million assistance agreement with SADC in 2013.”
But even the said USAID was more of a bilateral agreement rather than a regional agreement.
Stoneham also said the US has the African Growth Opportunity Act (AGOA) that the country established as a preferential trade relationship with African nations.
“AGOA is broader than SADC or Southern African Customs Union. AGOA allows qualifying countries (currently 40) to export over 6,400 types of products to the US duty-free. This a huge opportunity that is estimated to have created over 300,000 jobs on the continent. We recognise that African economic growth is very much in our mutual best interest,” she said.
SADC-EU cooperation
More information shows that SADC is happy with its EU cooperation. Apart from the Economic Partnership Agreement between the two institutions, the southern African region, alongside Eastern and Indian Ocean regions, have has been benefiting from the European Development Fund (EDF)
Signed in 2015 and covers the period from 2014-2020 totalling R22 billion, the EDF covers three focal areas, namely; peace, security and regional stability, regional economic integration; and regional natural resource management.
The regional natural resource management programme (worth R152 million) is meant to operationalise the Regional Agricultural Policy. This is set to be signed into an agreement before the end of 2018.
The peace, security and regional stability programme (worth R254 million) is meant to support peace and security in the SADC region. The review has been completed and the financing agreement has been signed.
The SADC Secretariat and the EU delegation have started discussions to negotiate the Pillar Assessed Grant or Delegated Agreement and was expected to be ready for signature by August 2018.
Regarding the regional economic integration programme, which is meant to support industrialisation and productive sectors to the tune of R304 million, project formulation has been completed and final approval from the EDF Committee is expected this month.
United States to China in the east seems to have gained traction after it came to light that the regional bloc has chosen not to enter into trade agreements with the US.
According to a SADC Secretariat document seen by The Southern Times, the 16-member regional bloc has regional trade agreements with China, Russia and the European Union (EU) but none with the US.
Information shows that the SADC Council of Ministers meeting held in August 2017 in South Africa, recommended that the regional heads of state and government sign into force an agreement between SADC and Russia in the area of military and technical cooperation.
At the same meeting, Zimbabwe, Madagascar and Mauritius recommended that the SADC Secretariat make alterations to the draft framework agreement on economic trade, investment and technical cooperation between SADC and China before finalisation.
The SADC Secretariat submitted these changes to China for final consideration. Both the Russia cooperation agreement and the China framework agreement were signed into force in July 2018.
The Southern Times is also reliably informed that the SADC Secretariat has asked China to construct a regional logistics depot. China is yet to respond to that request.
China has been cementing its influence in the region and the African continent as a whole. The region seems to be shifting its economic partnership towards the East, boosted by China’s U$60 billion pledge to Africa’s development in 2015 that was renewed earlier in September 2018. And the SADC heads of state and government seem content to shift the paradigm to China.
“No one can stand in the way or obstruct sovereign African countries from travelling to China to meet our all-weather friend, who has pledged to walk with us through thick and thin, down the path to economic development and prosperity,” SADC chairperson and Namibia’s president, Dr Hage Geingob, said recently.
The US government, however, seems unfazed by the fact that it does not have a trade agreement with the region. The Southern Times has learnt that the current administration, headed by President Donald Trump, generally favours bilateral (country-to-country) trade agreements over large plurilateral (regional) ones.
“President Trump has requested a comprehensive review of all US trade agreements and preference programmes to ensure that they are meeting their objectives and are in the US national interest. The analysis is ongoing at this point, but we did issue a notice inviting public comment as part of the review,” Ineke Margaret Stoneham, the public affairs officer at the US Embassy in Botswana told The Southern Times.
The US has over the years entered into agreements with individual countries, mostly in the areas of health and education.
Asked if the US has recently engaged the SADC Secretariat with the aim of having a regional agreement, Stoneham said: “SADC’s stated objectives are to promote regional development, peace and security, and economic growth to alleviate poverty, enhance the standard and quality of life of the peoples of southern Africa, and support the socially disadvantaged. To support regional development and SADC’s goals, USAID entered into a 5-year, US$700 million assistance agreement with SADC in 2013.”
But even the said USAID was more of a bilateral agreement rather than a regional agreement.
Stoneham also said the US has the African Growth Opportunity Act (AGOA) that the country established as a preferential trade relationship with African nations.
“AGOA is broader than SADC or Southern African Customs Union. AGOA allows qualifying countries (currently 40) to export over 6,400 types of products to the US duty-free. This a huge opportunity that is estimated to have created over 300,000 jobs on the continent. We recognise that African economic growth is very much in our mutual best interest,” she said.
SADC-EU cooperation
More information shows that SADC is happy with its EU cooperation. Apart from the Economic Partnership Agreement between the two institutions, the southern African region, alongside Eastern and Indian Ocean regions, have has been benefiting from the European Development Fund (EDF)
Signed in 2015 and covers the period from 2014-2020 totalling R22 billion, the EDF covers three focal areas, namely; peace, security and regional stability, regional economic integration; and regional natural resource management.
The regional natural resource management programme (worth R152 million) is meant to operationalise the Regional Agricultural Policy. This is set to be signed into an agreement before the end of 2018.
The peace, security and regional stability programme (worth R254 million) is meant to support peace and security in the SADC region. The review has been completed and the financing agreement has been signed.
The SADC Secretariat and the EU delegation have started discussions to negotiate the Pillar Assessed Grant or Delegated Agreement and was expected to be ready for signature by August 2018.
Regarding the regional economic integration programme, which is meant to support industrialisation and productive sectors to the tune of R304 million, project formulation has been completed and final approval from the EDF Committee is expected this month.
By Timo Shihepo
Windhoek - The deliberate paradigm shift by the Southern African Development Community (SADC) from the West, especially the United States to China in the east seems to have gained traction after it came to light that the regional bloc has chosen not to enter into trade agreements with the US.
According to a SADC Secretariat document seen by The Southern Times, the 16-member regional bloc has regional trade agreements with China, Russia and the European Union (EU) but none with the US.
Information shows that the SADC Council of Ministers meeting held in August 2017 in South Africa, recommended that the regional heads of state and government sign into force an agreement between SADC and Russia in the area of military and technical cooperation.
At the same meeting, Zimbabwe, Madagascar and Mauritius recommended that the SADC Secretariat make alterations to the draft framework agreement on economic trade, investment and technical cooperation between SADC and China before finalisation.
The SADC Secretariat submitted these changes to China for final consideration. Both the Russia cooperation agreement and the China framework agreement were signed into force in July 2018.
The Southern Times is also reliably informed that the SADC Secretariat has asked China to construct a regional logistics depot. China is yet to respond to that request.
China has been cementing its influence in the region and the African continent as a whole.
The region seems to be shifting its economic partnership towards the East, boosted by China’s U$60 billion pledge to Africa’s development in 2015 that was renewed earlier in September 2018. And the SADC heads of state and government seem content to shift the paradigm to China.
“No one can stand in the way or obstruct sovereign African countries from travelling to China to meet our all-weather friend, who has pledged to walk with us through thick and thin, down the path to economic development and prosperity,” SADC chairperson and Namibia’s president, Dr Hage Geingob, said recently.
The US government, however, seems unfazed by the fact that it does not have a trade agreement with the region. The Southern Times has learnt that the current administration, headed by President Donald Trump, generally favours bilateral (country-to-country) trade agreements over large plurilateral (regional) ones.
“President Trump has requested a comprehensive review of all US trade agreements and preference programmes to ensure that they are meeting their objectives and are in the US national interest. The analysis is ongoing at this point, but we did issue a notice inviting public comment as part of the review,” Ineke Margaret Stoneham, the public affairs officer at the US Embassy in Botswana told The Southern Times.
The US has over the years entered into agreements with individual countries, mostly in the areas of health and education.
Asked if the US has recently engaged the SADC Secretariat with the aim of having a regional agreement, Stoneham said: “SADC’s stated objectives are to promote regional development, peace and security, and economic growth to alleviate poverty, enhance the standard and quality of life of the peoples of southern Africa, and support the socially disadvantaged. To support regional development and SADC’s goals, USAID entered into a 5-year, US$700 million assistance agreement with SADC in 2013.”
But even the said USAID was more of a bilateral agreement rather than a regional agreement.
Stoneham also said the US has the African Growth Opportunity Act (AGOA) that the country established as a preferential trade relationship with African nations.
“AGOA is broader than SADC or Southern African Customs Union. AGOA allows qualifying countries (currently 40) to export over 6,400 types of products to the US duty-free. This a huge opportunity that is estimated to have created over 300,000 jobs on the continent. We recognise that African economic growth is very much in our mutual best interest,” she said.
SADC-EU cooperation
More information shows that SADC is happy with its EU cooperation. Apart from the Economic Partnership Agreement between the two institutions, the southern African region, alongside Eastern and Indian Ocean regions, have has been benefiting from the European Development Fund (EDF)
Signed in 2015 and covers the period from 2014-2020 totalling R22 billion, the EDF covers three focal areas, namely; peace, security and regional stability, regional economic integration; and regional natural resource management.
The regional natural resource management programme (worth R152 million) is meant to operationalise the Regional Agricultural Policy. This is set to be signed into an agreement before the end of 2018.
The peace, security and regional stability programme (worth R254 million) is meant to support peace and security in the SADC region. The review has been completed and the financing agreement has been signed.
The SADC Secretariat and the EU delegation have started discussions to negotiate the Pillar Assessed Grant or Delegated Agreement and was expected to be ready for signature by August 2018.
Regarding the regional economic integration programme, which is meant to support industrialisation and productive sectors to the tune of R304 million, project formulation has been completed and final approval from the EDF Committee is expected this month.
United States to China in the east seems to have gained traction after it came to light that the regional bloc has chosen not to enter into trade agreements with the US.
According to a SADC Secretariat document seen by The Southern Times, the 16-member regional bloc has regional trade agreements with China, Russia and the European Union (EU) but none with the US.
Information shows that the SADC Council of Ministers meeting held in August 2017 in South Africa, recommended that the regional heads of state and government sign into force an agreement between SADC and Russia in the area of military and technical cooperation.
At the same meeting, Zimbabwe, Madagascar and Mauritius recommended that the SADC Secretariat make alterations to the draft framework agreement on economic trade, investment and technical cooperation between SADC and China before finalisation.
The SADC Secretariat submitted these changes to China for final consideration. Both the Russia cooperation agreement and the China framework agreement were signed into force in July 2018.
The Southern Times is also reliably informed that the SADC Secretariat has asked China to construct a regional logistics depot. China is yet to respond to that request.
China has been cementing its influence in the region and the African continent as a whole. The region seems to be shifting its economic partnership towards the East, boosted by China’s U$60 billion pledge to Africa’s development in 2015 that was renewed earlier in September 2018. And the SADC heads of state and government seem content to shift the paradigm to China.
“No one can stand in the way or obstruct sovereign African countries from travelling to China to meet our all-weather friend, who has pledged to walk with us through thick and thin, down the path to economic development and prosperity,” SADC chairperson and Namibia’s president, Dr Hage Geingob, said recently.
The US government, however, seems unfazed by the fact that it does not have a trade agreement with the region. The Southern Times has learnt that the current administration, headed by President Donald Trump, generally favours bilateral (country-to-country) trade agreements over large plurilateral (regional) ones.
“President Trump has requested a comprehensive review of all US trade agreements and preference programmes to ensure that they are meeting their objectives and are in the US national interest. The analysis is ongoing at this point, but we did issue a notice inviting public comment as part of the review,” Ineke Margaret Stoneham, the public affairs officer at the US Embassy in Botswana told The Southern Times.
The US has over the years entered into agreements with individual countries, mostly in the areas of health and education.
Asked if the US has recently engaged the SADC Secretariat with the aim of having a regional agreement, Stoneham said: “SADC’s stated objectives are to promote regional development, peace and security, and economic growth to alleviate poverty, enhance the standard and quality of life of the peoples of southern Africa, and support the socially disadvantaged. To support regional development and SADC’s goals, USAID entered into a 5-year, US$700 million assistance agreement with SADC in 2013.”
But even the said USAID was more of a bilateral agreement rather than a regional agreement.
Stoneham also said the US has the African Growth Opportunity Act (AGOA) that the country established as a preferential trade relationship with African nations.
“AGOA is broader than SADC or Southern African Customs Union. AGOA allows qualifying countries (currently 40) to export over 6,400 types of products to the US duty-free. This a huge opportunity that is estimated to have created over 300,000 jobs on the continent. We recognise that African economic growth is very much in our mutual best interest,” she said.
SADC-EU cooperation
More information shows that SADC is happy with its EU cooperation. Apart from the Economic Partnership Agreement between the two institutions, the southern African region, alongside Eastern and Indian Ocean regions, have has been benefiting from the European Development Fund (EDF)
Signed in 2015 and covers the period from 2014-2020 totalling R22 billion, the EDF covers three focal areas, namely; peace, security and regional stability, regional economic integration; and regional natural resource management.
The regional natural resource management programme (worth R152 million) is meant to operationalise the Regional Agricultural Policy. This is set to be signed into an agreement before the end of 2018.
The peace, security and regional stability programme (worth R254 million) is meant to support peace and security in the SADC region. The review has been completed and the financing agreement has been signed.
The SADC Secretariat and the EU delegation have started discussions to negotiate the Pillar Assessed Grant or Delegated Agreement and was expected to be ready for signature by August 2018.
Regarding the regional economic integration programme, which is meant to support industrialisation and productive sectors to the tune of R304 million, project formulation has been completed and final approval from the EDF Committee is expected this month.
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