Treasury on conclusion of SADC Committee of Ministers of Finance and Investment meeting

The Southern African Development Community (SADC)* Committee of Ministers of Finance and Investment, under the chairship of the South African Minister of Finance Honourable Nhlanhla Nene, met on 11 July 2018 in Ekurhuleni to discuss areas of cooperation and improving regional financial coordination. The Ministers were joined by Central Bank Governors for the Peer Review of Macro-Economic Convergence of the Region. The objective of the Convergence is to promote economic stability to ultimately contribute to growth and job creation.

The Finance Ministers agreed that regional integration within the finance and investment sector should be deepened. With an expanding regional integration agenda, Ministers are spearheading a process to deliver, in the medium term, additional financial resources for the region through the SADC Resource Mobilisation Framework. In addition, having adopted the Financial Inclusion Strategy in 2016, Ministers are now focusing on ensuring its implementation. Further, Ministers emphasised the need to develop the financial sector by, among other things, centralising the bond markets in SADC.

The SADC Project Preparation and Development Facility has performed well since its operationalization in 2014, and the meeting reaffirmed its commitment to financial regional integration.

The meeting welcomed the progress made with the implementation of the SADC Integrated Regional Electronic Settlement System (SIRESS). This platform facilitates the clearance of transactions amongst SADC member states instead of using a corresponding bank. The Ministers also emphasised the importance of harmonising tax regimes in the region to facilitate economic growth.

SADC member states must work tirelessly to maintain macroeconomic stability and implement the structural reforms that will raise growth and lift people out of poverty, the meeting also reinforced.

South Africa is the current chair of SADC from August 2017 until August 2018. The theme for the country’s Chairpersonship of SADC is: Partnering with the Private Sector in Developing Industry and Regional Value Chains. A series of meetings between ministers in various portfolios take place in between Heads of Government Summits. The meeting of the Committee of Ministers of Finance and Investment is but one of the meetings that take place when a country has the Chairmanship of SADC.

*SADC member states are: Angola, Botswana, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic of Tanzania, Zambia and Zimbabwe.

Source: Government of South Africa