K-Trade Institute of Economics

Intra-SADC Trade Performance

The Southern African Development Community (SADC) has been implementing the trade protocol for more than seven years. The aim is to liberalise trade flows between members and eventually lead to deeper integration in the region. As member states are preparing to enter another layer of integration in the form of a free trade area, it is also an appropriate moment to evaluate the performance of the implementation of the trade protocol. In this paper, an assessment of intra-SADC trade performance is done by focusing on intra-SADC export share, comparing intra-SADC share with other regional blocs and intra-country trade share. Trade between countries also reveals that more than two thirds of total trade is with South Africa. Potential causes for this outcome include exports of raw materials and intermediate goods, failure to meet tariff reduction requirements, increasing commodity prices, existence of other forms of barriers as well as the challenges relating to weak manufacturing capacity, poor physical infrastructure and unresponsive supply side bottlenecks. As SADC enters another level of integration, it should make sure that the necessary mechanisms to address these challenges are in place so that the region can realise the associated benefits.
Last Updated ( Feb 05, 2009 at 11:11 AM )
Read more...

Deepening Integration in SADC

Regional Integration in
Southern Africa Vol 6
Deepening Integration in SADC
South Africa – SADC’s Economic
Engine

A study conducted for the
Friedrich Ebert Foundation

Authors:
Mmatlou Kalaba, TIPS
Owen Willcox, TIPS
Takudzwa Fundira, tralac
Brian Williams, tralac
Philip Alves, SAIIA

December 2006

Last Updated ( May 31, 2007 at 08:08 PM )