By Correspondent Eva Ngowi, Harare
Southern African Development Community (SADC) member states have intensified discussions on strengthening regional financial integration, investment mobilisation and sustainable financing, with Tanzania calling for a pragmatic approach to implementing the proposed SADC Regional Development Fund.
The discussions took place during a meeting of Permanent Secretaries to the Treasury and Senior Central Bank Officials in Harare, Zimbabwe, where delegates reviewed a broad range of issues aimed at deepening regional economic cooperation and accelerating development across Southern Africa.
Tanzania’s delegation was led by the Permanent Secretary in the Ministry of Finance, Dr. Natu El-Maamry Mwamba, who reaffirmed the country’s support for the establishment of the SADC Regional Development Fund while urging member states to adopt realistic financing mechanisms that reflect their varying fiscal capacities.
The meeting brought together senior finance and monetary policy officials from across the region to deliberate on implementation of the proposed regional development fund, macroeconomic convergence targets, capital market integration, and progress in the SADC Real-Time Gross Settlement (SADC-RTGS) payment system, a key pillar in facilitating cross-border trade and financial transactions.
A significant portion of the discussions focused on identifying sustainable sources of financing for SADC’s regional budget, programmes and infrastructure projects.
Among the proposals considered were an Import Levy on goods originating outside Africa and a Tourism Levy. However, many member states expressed reservations, arguing that such measures could conflict with existing national tax legislation, reduce government revenues and increase the cost of doing business, particularly within the tourism industry—a sector that remains a major foreign exchange earner for several SADC economies.
Delegates also reviewed progress in strengthening regional financial markets, improving financial sector regulation, and enhancing cooperation in combating money laundering and terrorism financing.
Tanzania backs fund, urges practical implementation
Speaking during the meeting, Dr. Mwamba emphasised that regional decisions must be matched by concrete implementation if SADC is to achieve its economic integration objectives.
“Effective implementation of regional decisions is fundamental to ensuring that SADC programmes and development projects are delivered efficiently and on schedule,” she said.
While supporting the proposed Regional Development Fund, Dr. Mwamba cautioned that member states face different economic realities that should be carefully considered when determining capital contributions.
She noted that rising public debt levels and fiscal constraints affecting many countries require a balanced and financially sustainable approach to funding the initiative.
“The implementation of the SADC Regional Development Fund should be based on realistic assessments of member states’ financial capacity, particularly in light of growing debt obligations and budgetary pressures,” she said.
She further stressed that the fund should maintain an appropriate balance between contributions from member states and financing from development partners to safeguard its long-term sustainability and institutional independence.
“A balanced financing structure will help preserve the credibility of the fund while ensuring it remains focused on achieving regional development priorities,” Dr. Mwamba added.
Ratification process underway
Dr Mwamba also confirmed that Tanzania has already signed the agreement establishing the SADC Regional Development Fund and is currently finalising domestic ratification procedures before formally notifying the SADC Secretariat.
The proposed fund is expected to become a major financing vehicle for regional infrastructure, industrialisation, energy, transport connectivity and other strategic development projects aimed at boosting intra-African trade and economic competitiveness.
Why the discussions matter
The meeting comes at a time when SADC economies are seeking new financing models to reduce dependence on external borrowing while accelerating implementation of regional infrastructure projects envisioned under the bloc’s industrialisation and integration agenda.
For Tanzania, regional financial integration aligns closely with its broader economic transformation agenda, including implementation of Development Vision 2050, expansion of industrial production, increased intra-African trade under the African Continental Free Trade Area (AfCFTA), and improved cross-border investment.
Enhanced capital markets, efficient regional payment systems and stronger development financing mechanisms are increasingly viewed as essential building blocks for achieving sustained economic growth across Southern Africa. Recommendations from the meeting are expected to be presented to the upcoming SADC Committee of Ministers of Finance and Investment, where ministers will consider policy decisions aimed at strengthening regional investment, financial cooperation and long-term economic development.
