Implementation pains at SADC

There is an urgent need for the Southern African Development Community (SADC) to reduce dependence on International Cooperating Partners (ICPs), however, scarce resources in the hands of the regional bloc cripple implementation of its programmes. 

This predicament compels SADC to fast-track the establishment of a Regional Development Fund with innovative funding approaches, which first attracted nods from SADC ministers in Mozambique two years ago. Both the incoming Chairman of SADC and President of Zimbabwe, Robert Mugabe, and the SADC Executive Secretary, Dr Stergomena Lawrance Tax pin their hopes on the highly anticipated Fund, which is expected to enable the region to respond to key priority areas of SADC development and integration agenda. The Fund also follows numerous calls from the private sector and civil society from member states that if SADC is to move forward and realise its ultimate dream, there is need for action. The region falls short on factors including uplifting the quality of the lives of people, infrastructure development and education. These challenges are not new to the region and have been on SADC’s development agenda for long. The Development Fund, which SADC is committed to establishing by 2020, is seen as a necessary mechanism that would enable the grouping to fund and own its programmes in order to reduce what President Mugabe calls over reliance on ICPs.

“How can we claim ‘SADC,’ if 60 percent of our programmes are externally funded,” Mugabe quizzed, at the 2014 SADC Summit of Heads of States and Government, which ended at the weekend in Victoria Falls, Zimbabwe. The Development Fund has become an urgent matter, and is seen as a solution to some of the current implementation challenges that the regional bloc is grappling with. President Mugabe’s view is that SADC should not introduce many programmes that it will fail to fund. According to him, it would be a pity if the Regional Indicative Strategic Development Plan (RISDP), SADC’s programme implementation blueprint, is an academic exercise that is not transformed into reality as a result of lack of funds. He strongly believes that the review should result in SADC fewer programmes that are core to regional integration and aimed at strengthening economies and improving the lives of citizens. ”I count on your individual and collective support to steer the agenda of SADC in order to achieve effective implementation of our programmes,” he said. The Regional Development Fund would have seed capital of US$1.2 billion, with member states contributing US$612 million, the private sector US$444 million and International Cooperating Partners (ICPs) US$144 million.

SADC members would have a majority shareholding of 51 percent of shares in the facility, against 37 percent for the private sector and 12 percent for ICPs. Dr Lawrance Tax says although progress has been made in relation to establishing the Fund, it is a big undertaking that needs a lot to be in place. For example, there needs to be a legal instrument that will guide its formation, a protocol with outlined milestones in between. “We are also benchmarking to see how it is done elsewhere,” Dr Lawrance Tax said. She is however, optimistic that with the commitment that member states have shown, establishment of the Fund is not impossible. “The private sector is ready and eagerly awaiting to see how we proceed.” Both Mugabe and Dr Lawrance Tax observe that the fact that more than half of the total budget came from ICPs creates problems of ownership and sustainability. Programme Head, Economic Diplomacy Programme at the South African Institute of International Affairs, Catherine Grant Makokera says although progress has been made in relation to key aspects of the Fund including required seed capital, shareholding and institutional structure, issues like hosting country are critical.

“This is the challenge that BRICS countries are grappling with currently, the host of their development bank, because a lot has to be considered,” Makokera said. Minister of Foreign Affairs of Zimbabwe and Incoming Chair of the SADC Council of Ministers, Simbarashe Mumbengegwi has also challenged the SADC Council of Ministers to ensure that they implement decisions they have taken. Minister Mumbengegwi said the common questions that people continue to ask are, what SADC is doing to uplift the quality of their lives and rid them of underdevelopment, poverty and other social ills. “We have a responsibility, and indeed an obligation to answer their questions,” he said. The minister said it is critical that SADC keeps up the pace and is not left behind. “It is the implementation of our programmes that will positively impact on the livelihood of our people. It is not the number of meetings we have convened, it is not the number of resolutions we make or the size of the documents we produce that will determine our success or failure,” Mumbengwegwi said. Like the SADC Chairman, Mumbengwegwi hopes that the RISDP review will result in a SADC with a fewer and more focussed programmes, geared towards improvement of lives of the people of the region.

“We need programmes that we own and are sustainable.” Dr Tax says contrary to popular views that SADC lacks political will of member states there is will from all involved. “Desires are enormous, but resources are scarce, therefore we acknowledge that not all programmes and projects will be implemented at the same time,” Dr Tax said. SADC Council of Ministers has noted that almost all SADC member states have remitted their member contributions to the SADC budget for the fiscal year April 2014/15 to the SADC Secretariat. The Council also approved the participation of SADC in the joint Regional Indicative Programme with COMESA, EAC, IGAD and IOC under the 11th EDF and mandated the Secretariat to sign the 11th EDF Joint RIP with the relevant stakeholders by September 30, 2014. On the programming of the 600 million Euros funding for the regional infrastructure, Dr Tax said the Council approved the SADC list of potential regional infrastructure investment projects to be considered for financing under the 11th European Development Fund (EDF) for 2015/2016 annual action plan.