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SADC SUCCESS STORIES Volume 2 2017
ISBN 978-99968-448-6-7
The SADC Vision
The vision of SADC is one of a Common Future, a future within a regional community that
will ensure economic wellbeing, improvement of the standards of living and quality of life,
freedom and social justice, and peace and security for the people of southern Africa.
Vision |i
ii| Intro
Message from the Executive
Secretary of the SADC Secretariat
Regional integration is not only critical and
important but is a necessary tool and strategy
for development. Regional integration, in
simple words, is about cooperation and
economies of scale. SADC Member States
have agreed to co-operate by pooling
their resources together and implement
transboundary projects with greater impact,
and more benefit for their citizens. Some of
these projects are featured in this second
edition of the SADC Success Stories.
The SADC Success Stories Edition is one
of our communication tools to reach out to
SADC citizens and enhance awareness about the positive impacts of our protocols, agreements,
policies and strategies. In 2016/17, a team of experts travelled the SADC region to collect
stories that highlight the recorded achievements and successes in implementing SADC regional
development and integration agenda. The stories cover achievements in the infrastructure,
trade and industrialisation, climate change, finance, peace and security, water management,
agriculture and transfrontier conservation sectors.
The team’s mission included trips overland, by sea and air in order to paint an accurate
picture of how SADC regional integration programmes are changing the lives of SADC citizens
for the better.
Just to highlight a few, at the Zambezi River, they saw the construction of the Kazungula
Bridge that will soon form a major transport link in the heart of the SADC region. In Malawi,
they learned about the Bvumbwe tomato, which was developed to address the specific
conditions of this region and the needs of the SADC population. And in Namibia’s Walvis Bay
and Mozambique’s Nacala, they saw two entry points to the growing network of development
corridors alongside which the SADC region will develop in the coming decades. These and other
successes of regional integration are documented using films, photographs and text stories.
Together with this publication, the short videos will be disseminated within the region and
beyond to showcase our success.
This production was made possible with support from the German Ministry of Economic
Cooperation and Development (BMZ) through the six programmes implemented by the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH as part of the German
Development Cooperation with SADC.
The first edition of the “SADC Success Stories”, launched in 2015, reached over one million
SADC citizens through the print brochure, videos and social media. Through this second edition,
we hope to inform more SADC citizens about the benefits of the SADC development and
integration agenda and the importance of Member States rallying around a common agenda.
These stories reflect SADC at a time when regional integration is already adding incalculable
value to the lives of all citizens. With the renewed focus of Member States on industrialisation
and regional infrastructure development, among other priorities, our joint efforts and
commitments will be making the case for the continued integration of the SADC region.
July 2017
Dr. Stergomena Lawrence Tax
Executive Secretary SADC
Intro |iii
1| Contents
contents
Trade: Building Bridges for Economic Growth 3
Peacebuilding: Sweet Smell of Peace 7
Agriculture: Feeding the Region one Tomato at a Time 11
Transport: Gateway to SADC’s Future 15
Industrialisation: Beefing up Trade 19
Finance: Breaking Banking Barriers 23
Watercourses: Sharing SADC’s White Gold 27
Infrastructure: A Journey to Development 31
Tourism: KAZA Develops and Nurtures Region’s Tourism 35
Climate: Tackling Climate Change Together 41
Contents |2
3| Trade
Building Bridges for
Economic Growth
Construction workers at the Kazungula border post are
doing more than building a bridge over a river – they are
building a bridge for regional integration with the promise
of greater economic growth.
O
n either sides of the Zambezi River, region, allowing goods to flow from the DRC
hundreds of trucks queue to cross to South Africa and from the Indian to the
the Kazungula border between Atlantic Ocean.
Botswana and Zambia. Looking SADC’s Protocol on Trade has long
west is Namibia, looking east Zimbabwe. It is recognised the need to facilitate trade in
a popular route and one that is about to get SADC countries. It’s a key tool to stimulate
even busier with the construction of the new economic growth and fight poverty in
Kazungula Bridge already underway. Southern Africa. It commits SADC Member
Previously, trucks could only cross two at a States to eliminating tariff and non-tariff
time at the border using one of two ferries. The barriers, which would otherwise stem the free
waiting period to make the crossing could take flow of goods throughout the region.
up to three days. This turned into five days and In the first decade after the Trade Protocol
more if one of the ferries broke down. The new went into effect in 2000, intra-SADC trade
bridge promises to reduce waiting times to increased by 155%, from USD 13.2 billion to
around two hours. about USD 34 billion. Now the Kazungula
Since the SADC Free Trade Area was Bridge, deep in the heart of SADC, will
introduced in 2008, intra-SADC trade has become a prominent pillar in further
exploded. Now every day trucks and trains accelerating the expansion of trade between
travel the length and breadth of the SADC the Member States.
Trade |4
“We are well settled here, better than
where we were.”
Grace Mwashekabo
Lumbo Village elder
In line with the Trade Protocol, Johannes Labuschagne, who has vehicle and crew utilization.
the Regional Infrastructure been crossing the border for The bridge, which is estimated
Development Master Plan seven years to transport copper to cost USD 259.3 million, is
(RIDMP) facilitates the from Zambia to South Africa, jointly funded by the Botswana
development of seamless, says the project is an exciting and Zambian governments and
cost-effective trans-boundary initiative. His biggest challenge expected to be completed by
infrastructure. The RIDMP is had been with broken down 2018.
part of the SADC Infrastructure ferries. When this happened, it Zambian President Edgar
Vision 2027, of which transport is regularly caused 5km of queuing Lungu, on a visit to Kazungula
one of six pillars. The crossing at traffic, resulting in massive delays in February 2017 to check on the
Kazungula was one of the missing for truck drivers like him. progress of the bridge, said: “If
links to realising the North-South “We as a transporter feel the Zambia and Botswana succeed,
Corridor identified under the greatest burden because when there will be more trade in the
RIDMP. you are supposed to do two loads region and beyond.”
The Kazungula Bridge is a month, you can only do one The project, President Lungu
central to the corridor as it will load a month. So your turnover is said, was not just for Botswana
ease high volumes of traffic in cut in half,” says Labuschagne. and Zambia. “It is intended to
the region, facilitate trade, spur He particularly looks forward invite and excite investment from
economic growth in the area and to the introduction of the one- outside so that Africans can begin
beyond, and help prepare the stop border posts: “Once (your to trade among themselves,” he
SADC region for the predicted truck) is cleared you drive said.
population growth of 72 million straight across, stamp your
people by 2027. passport and you are off to the SADC Protocol:
Improved trade is fundamental
Identified as a key project client. So that is going to be a big to regional integration. To this
under SADC’s regional bonus for us.” end, the Protocol on Trade
development plan, the bridge A one-stop border post will was signed in 1996 in order to
is now spearheaded by the be placed on both sides of the liberalise trade within SADC,
Botswana and Zambian bridge so that drivers stop only reduce barriers between nations,
and stimulate production and
governments. It entails replacing once at their point of exit/entry. economic development. Over the
the Kazungula ferry with a After clearing customs the driver years this led to the elimination
930m road and rail bridge, with drives straight through to the of tariff barriers, and export and
one-stop border posts for either next country. This eliminates import duties, culminating in the
direction. duplication of processes and establishment of the SADC Free
Trade Area.
South African truck driver reduces time thereby increasing
5|TradeConstruction of the Kazungula of the project was the successful
Bridge has already created jobs resettlement of Botswana
and skill-learning opportunities. villagers to nearby Lumbo.
A mobile training unit was set Their community has seen
up in 2013 on the Botswana side exponential growth since over
to train the semi-skilled artisans USD 4 million were invested to
needed for the construction of resettle the village and reimburse
the Kazungula Bridge and other those affected. Once next to the
infrastructure projects. main road leading to the border
Funded by the Botswana post, the village is now a few
Ministry of Transport and kilometres away.
Communications, the unit Lumbo village elder Grace
trained more than 700 semi- Mwashekabo remembers when
skilled artisans including they had to fetch water from the
bricklayers, tilers and carpenters. Zambezi River and some lived
Botswana President Ian Khama in mud houses. Today the 34
proudly noted that two thirds families in the new village enjoy
of those trained by the unit had their new houses, electricity,
been able to secure jobs. running water and a school.
This was also observed by “We are well settled here,
To be completed in 2018
SADC Tripartite Transport better than where we were,” says
and Transit Facilitation Mwashekabo. increase in traffic will mean more
Program Adviser, Lovemore Some villagers have also been potential customers for them as
Bingandadi: “The bridge employed as workers by the well.
construction has created new Kazungula Bridge project. And “The iconic bridge stands
economic opportunities for many women in the area are as a monument to regional
locals and major construction informal traders who are selling integration as it is more than
firms. Opening the bridge will to the high number of people a physical link between two
certainly advance trade and crossing the Zambezi River on countries,” says Bingandadi. “It’s a
transport facilitation.” a daily basis. When the bridge conduit for trade, transportation
Another immediate benefit is completed, the expected and movement of people.”
The Kazungula Bridge Project has provided work opportunities to the community
Trade|6Sweet Smell of Peace
When SADC stepped in to support peace efforts in
Madagascar, its efforts were carried out in the local spirit
of fihavanana, which emphasises the kinship and mutual
respect between all Malagasy people.
H
ugues Rotoarimanana’s business buys unconstitutional government.
plants, herbs and other raw materials “SADC has a set of processes and mechanisms
from around Madagascar and turns to deal with situations that threaten the peace
them into essential oils. Cinnamon, and stability in the region,” says Jorge Cardoso,
cloves, ylang-ylang, and rare plants like katrafay Director of the SADC Organ on Politics, Defence
– which can only be found in Madagascar – are and Security.
loaded into boilers so that their essence can be “It operates at the level of heads of states. There
extracted and used to infuse oils for the finished is a head of state that is nominated annually to
products sold to Rotoarimanana’s European follow the political processes in our region. The
clients. peaceful resolution of conflicts is one of the main
But in 2009, the then two-year-old business premises to address situations that occur in our
faced its greatest challenge: a political crisis that Member States,” says Cardoso.
turned Malagasy society upside down, disrupting The Organ was established through the Protocol
the social and political order. Because of the on Politics, Defence and Security Cooperation in
instability in the country, Rotoarimanana’s 2001. The protocol affirms SADC’s commitment
international investors pulled out of the business, to regional stability with the objective to “protect
leaving his livelihood in jeopardy. the people and safeguard the development of
“We have had uprisings before, but 2009 was the region against instability arising from the
very different,” says Rotoarimanana. “The coup breakdown of law and order”.
was really a bad thing because first they ousted a In March 2009, after the unconstitutional
democratically elected president, and second they takeover, SADC suspended the membership of
did it by force. We had families to feed but then Madagascar. The African Union, the United States
suddenly no business. It was a disaster.” and other parts of the international community
It began after a dispute erupted between the suspended their aid to Madagascar. Three months
then-president and an opposition leader, leading later, the AU and the United Nations halted their
to a period of intense conflict and confusion until mediation efforts, citing a lack of will on either
the opposition took power unconstitutionally in side to seek reconciliation.
March 2009. Many feared that Madagascar was on A week later, SADC dispatched former
the brink of civil war. Mozambican President Joaquim Chissano as the
“The politicians were really trying to instigate leader of a team tasked with mediating a peace
tensions amongst the population of Madagascar,” process and creating a roadmap towards solving
says Mahamadou Ndriandry, President of the the crisis.
National Platform for Civil Society Organisations. “When Chissano came here, he came with the
“A civil war has never happened here. Malagasy mindset of not only working with civil society
people are really close. You would only have a civil organisations, but also to listen to what has been
war if there was extreme tension.” done here on the ground, what is happening,”
In an attempt to return the region to peace says Rasolo Andre, a former diplomat and now a
and stability, international bodies, championed lecturer in Political Sociology at the University of
by SADC, began to put pressure on the Antananarivo.
7| PeacebuildingPeacebuilding|8
“SADC was the door, which led the
Malagasy people to understand that
they live in the African continent and
that they are not alone.”
Rasolo Andre
Former Malagasy first consul to Russia, now lecturer in
Political Sociology at the University of Antananarivo
“It’s important because when agreement that peaceful elections
they allowed the Malagasy people would take place in 2013 in which
to take part in the decision no former presidents could take
making, they enhanced the part.
sustainability of the outcome. The period of disruption ended
Also, they came here to facilitate when in December 2013, Hery
the process. They were involved Rajaonarimampianina was elected
as facilitators but leaving the to the presidency. The elections
Malagasy approach to take place were declared free and fair by
at all times,” he adds. international observers. The
The SADC intervention led to following month, Madagascar was
the establishment of a roadmap, reinstated as a SADC member,
which emphasised that peace and international aid returned to
needed to be restored. This led to the island.
the creation of a national dialogue Addressing the African Union
process which came to be called Peace and Security Council,
mallgacho-malgache (Malagasy SADC’s Executive Secretary Dr
Jorge Cardoso, Director of with the Malagasy). With SADC’s Stergomena Lawrence Tax said
the SADC Organ on Politics, support, it eventually led to an at the time: “SADC appeals to
Defence and Security the African Union, the United
Nations and other similar bodies
to welcome the positive steps that
Madagascar has made through
the recent peaceful transparent
and fair elections and to spare no
effort at ensuring that democracy
and the rule of law are enhanced
in Southern Africa.”
Andre attributes the success
of the peace process in no small
part to the concept of fihavanana.
Fihavanana originates from the
Malagasy word havana, meaning
kin, and emphasises the kinship
9| El nino
Mahamadou Ndriandry says Malagasy society is very close of all Malagasy people, and the
9| PeacebuildingSADC Protocol:
The Protocol on Politics, Defence
and Security Cooperation was
signed in 2001 in recognition
of the need for stability as a
prerequisite for Southern Africa’s
growth. This led to the formation
of one of the most important parts
of SADC, the Organ on Politics,
Defence and Security. The Organ
works with Member States to
promote peace in the region and
foster stability for current and
future generations.
Businesses thrive again
belief that harm done to others are not alone.” a pile of burnt cinnamon leaves
will eventually reflect back on With the next elections due to a sweet smell wafting around the
the doer. take place in 2018, the hope is premises – the boilers are once
“It was really good that SADC that Madagascar will maintain again producing the rare oils
worked with the AU, because its stability in the future. For unique to Madagascar.
that gave the Malagasy people now, the peace brought about “When word of the national
confidence that they are not just by the negotiations has allowed reconciliation started to
this island, that they have sisters the Malagasy people time to spread, people felt safer,” says
and brothers and they are part of rebuild. Investors have gained Rotoarimanana. “It gave more
Africa,” says Andre, the former confidence again to return to the confidence to the investors and
diplomat. private sector. business started to grow.”
“SADC was the door which For Rotoarimanana, peace Adds the businessman,
led the Malagasy people to allowed his business to regain its “just one of my suppliers now
understand that they live in the strength. Near Antananarivo, at provides work for a thousand
African continent and that they the plant of one of his suppliers, people.”
Hugues Rotoarimanana at one of his plants
Peacebuilding|10Feeding the Region
one Tomato at a Time
The introduction of two new varieties of tomato in Malawi and
nearby Mozambique could help boost food security and provide
local solutions to adapt to climate change and meet nutrition needs.
T
he tomatoes are proudly population depends on agriculture tolerant and have a long shelf
displayed in a market for food, income and employment. life, making them better adapted
in Blantyre – round, Agriculture is also a major source to effects of climate change and
plump and red. These of exports for several Member suitable for cross-border trade by
new, locally grown tomatoes States, contributing on average of resource-poor entrepreneurs.
are emerging as one of the most 13% to total export earnings and Acting CCARDESA Executive
important and effective ways in 66% to the value of intra-regional Director Dr Simon Mwale, based
which SADC is boosting food trade. close to the SADC Secretariat
security in the region. In 2007, the SADC Council in Gaborone, Botswana, points
Named after the Bvumbwe instructed the SADC Secretariat out another advantage of the
research station located south to prioritise food security Bvumbwe tomatoes: They have
of Blantyre in Malawi, the new and the management of higher levels of vitamin A than the
varieties are named Bvumbwe 1 transboundary natural resources average tomato.
and Bvumbwe 2 tomatoes. The and environments. Together with “You can get vitamin A from
area is well-known for its fertile those, three other areas form animal products and vegetable
hillsides. SADC’s core focus on agriculture: sources, both of which can be
Introducing varieties that crop production, livestock beyond the reach of the common
have higher nutritional value has production and information in low-income household in the
drawn together government and the form of data. SADC’s Multi- SADC region,” he says. “The
non-governmental organisations, Country Agricultural Productivity tomato is a key ingredient in
including the Centre for Programme and the Regional cooking at all levels of society.
Coordination of Agricultural Indicative Strategic Development And with these varieties of tomato
Research and Development in Plan until 2020 provide additional you can provide extra vitamin
Southern Africa (CCARDESA), strategic direction. A to the lowest income group of
SADC, the Malawi government All of these policy instruments families in the country. It’s a big
and horticulturalists, agronomists are given credence by the plus for the population’s nutrition.”
and other specialists. The initiative developments at Bvumbwe, which Malawi has long battled
has grown out of SADC’s Regional have resulted in the adoption of vitamin A deficiency, which
Agricultural Policy. highly nutritious tomato varieties. causes stunting and major growth
About 70% of the region’s Bvumbwe tomatoes are disease defects.
11| AgricultureAgriculture |12
Malawi has the fifth-highest
stunting rate in the world with
53% of children under the age of
one suffering from this growth
defect, according to the World
Bank.
It’s here where the Bvumbwe
research station’s results make
a real difference. Managed by
Thomson Chilanga, the station
developed the two new varieties
to thrive in the specific conditions
of Malawi, Mozambique and
Zimbabwe.
“The area is conducive to a
number of crops. Farmers like to
grow different types of crops and
the government is emphasising
diversification. In our research, we
also think about the market and
what people want,” Chilanga says.
Their research and innovations
platform includes the entire
food pipeline – from farmers to
Jonathan Matebule, chairman of the Challenge Project Group
extension officers, wholesalers,
retail outlets and distribution it possible for all key actors to Bvumbwe 2 varieties.
centres. This participatory identify and resolve challenges “We’ve even seen some
research approach, facilitated along the value chain together. business people and consumers in
through CCARDESA, makes The tomatoes are already a Mozambique coming into Malawi
regional success story: The seed is and we linked them up with
being distributed in neighbouring the farmers in Lukya village in
Mozambique and Zimbabwe Thyolo so there’s now an exchange
where farmers have started of produce, which has been
planting the Bvumbwe 1 and welcomed by local farmers,” says
Agnes Jakaramba cultivates her own land in Lukya village
13| Agriculture“The tomato is a key ingredient in cooking
at all levels of society. And with these
varieties of tomato you can provide extra
vitamin A to the lowest income group of
families in the country. It’s a big plus for the
population’s nutrition.” Simon Mwale
Acting CCARDESA Executive Director
Chilanga. “Our livelihoods have improved Austin Banda, operations
He adds that the local farmers because of the proceeds of the manager in one of them, says:
“are now feeding the students, sales of these Bvumbwe tomatoes. “We’ve been in business for
the hospital patients and Because of them I can now afford around 20 years, providing
even prisoners. These various school fees. I bought dairy cows technical support from seeds to
markets need to be linked to and pigs and can now feed my harvesting. We started with one
the agri-dealers, extension family properly,” adds Matebule. outlet and now we have seven,” he
staff and farmers. This leads Before the programme, most says.
to sustainability through the children in the village did not Banda’s Blantyre shop is busy
development of agriculture go to school. Now enrolment is with farmers and other clients
technology.” at 100%, which the community purchasing chemicals, seeds
Once an innovation platform links directly to the income and fertiliser along with small
is established, the scientists step from agricultural product sales, implements and pumps.
back and the farmers take over especially the Bvumbwe tomatoes. CCARDESA’s Dr Mwale is
the management of the entire Change is also evident in the emphatic about the success of the
process. This new approach was village’s houses. Where previously humble tomato.
promoted and supported under they were made of mud and “This is a success for three
the Sub-Saharan Challenge straw, thanks to new profits they reasons: Firstly improving
Programme led by the Forum are now built from bricks and agriculture research amongst
for Agricultural Research in with corrugated iron roofs. A SADC Member States, secondly
Africa at the continental level few villagers even upgraded from it encourages innovations to flow
and coordinated by CCARDESA, bicycles to motorbikes, which from one country to another,
a SADC subsidiary, in Southern handle the rough terrain better. and thirdly it encourages intra-
Africa. Matebule is not the only one regional trade.”
Farmer Jonathan Matebule is in the village who’s seen his life
SADC Programme:
chairman of the Challenge Project change. Agriculture remains the primary
Group in Lukya, a village perched Agnes Jakaramba began hers source of nutrition, employment
on a hilltop overlooking the as a farmworker on other people’s and income for 61% of SADC
citizens. Its critical importance
highest point in Malawi, Malanje fields. Today she owns her own led to the SADC Multi-Country
Mountain. one-hectare farm on which she Agricultural Productivity
“The researchers came with grows vegetables. “We irrigate Programme (SADC MAPP) in
2008. The SADC MAPP is a
a number of varieties but the early in the morning, then (again) fifteen year programme, broken
Bvumbwe responded best,” says later in the afternoon. I also down into three five-year phases.
Matebule. “After I was trained by fertilise my field. It’s a hard life but The goal of the MAPP is to
the scientists, I planted this crop,” I’m my own boss and I’m feeling enhance agricultural research,
technological innovation and
he says, pointing at his tomatoes, good now,” she says. dissemination, and the linkages
which soon became the envy of In Blantyre, support also comes among agricultural institutions in
other farmers. from agri-business focused shops. the SADC region.
Agriculture |14Gateway to
SADC’s Future
The multimillion dollar upgrade of the Walvis Bay port
opens new opportunities for regional trade.
“
It’s a different thing every day,” says as the logistics hub for SADC more and
Immanuel Hango, standing on the more each year, but the issue was always the
dock and beaming at a crane as it hauls space,” says Gelderbloem.
containers from a line of trucks onto a Namport expects that the upgraded Walvis
waiting ship. Bay port can serve SADC for the next 50
Since he was a child growing up in the years. The upgrade will double the amount
North of Namibia, all Hango ever wanted of goods flowing to and from SADC through
was to be an engineer. In 2016 he was one the port.
of 100 Young African Leaders who travelled Phase 1 of the upgrade is a liquid bulk
to the United States to meet then-President terminal with space for two tankers, which
Barack Obama. Now he is one of the will ultimately connect to a 100-hectare
engineers working at Namport, Namibia’s tanker farm where goods will be stored
port authority, building the future of his before being shipped out across the SADC
country. region. Next, a liquid natural gas terminal
Walvis Bay has its sights set on becoming will be constructed to feed a planned power
the preferred gateway for some of the station, followed by a dry bulk terminal to
landlocked SADC countries. Driving handle the import and export of goods from
this initiative is a massive investment in across the region. At the same time, Walvis
infrastructure in the region, including USD Bay is expanding its container terminal.
300 million in upgrades to the corridors Increasing trade throughout the region
linking Walvis Bay to the rest of SADC and is a goal of both the SADC Protocol
a USD 2.3 billion upgrade to the existing on Transport, Communications, and
Walvis Bay port. Meteorology and the SADC Regional
“The port master plan that looks at this Indicative Strategic Development Plan.
new area (and) identified the need for the Improving the transport infrastructure
port to serve not just our small population across borders is also a key focus of the
in Namibia, but the whole of SADC,” says Regional Infrastructure Development Master
Elzevir Gelderbloem, the Executive Secretary Plan, which projects that SADC port traffic
of Namport. will increase from 92 million tons in 2009, to
“Since independence, Namibia has served 500 million by 2027.
15| TransportTransport|16
The upgrades will double the capacity of the Walvis Bay Port These volumes can only be achieved if Member States continue to make it easier to trade across regional borders. “Regional integration is a tool, and it is a very important strategy for development,” says Dr Stergomena Lawrence Tax, the Executive Secretary of SADC. “Through our free trade regime we have eliminated tariffs, so that within SADC you get a bigger market for your products, but you Phase one, the Liquid Natural Gas terminal can also compete with products from outside of the region,” Dr condition and there are plans Lubumbashi Corridor to the Tax notes. to upgrade these corridors with Northeast crosses into Zambia, The SADC Free Trade Area, rail connections. In that way we creating a critically important which took effect in 2008, is based will serve the SADC region,” says trade route for goods to and from on the SADC Protocol on Trade. Gelderbloem. the Zambian copperbelt and The protocol aims to liberalise The port is located along four Lubumbashi, the second-largest trade relations between Member key development corridors. To city in the Democratic Republic States, stimulate the investment the east it connects to the Trans- of Congo. environment and spur economic Kalahari Corridor, which is the “Lubumbashi is landlocked. We growth. preferred route for time-sensitive don’t have direct connections to Namport’s CEO is is keenly goods going to Botswana and the (Congolese) ports at Banana aware of the Walvis Bay port’s South Africa. To the North, or Boma,” says Kabash Munung, regional dimension. the Trans-Cunene Corridor the Business Development “Part of the business case for serves Southern Angola, and Manager for the Walvis Bay this port is connections to get to the South, the Trans-Oranje Corridor Group (WBCG) in products to and from SADC. Corridor services the mining Lubumbashi. “But we use Walvis The road corridors around the and agricultural centres of South Bay as our gateway to the ocean, port are currently in excellent Africa. The Walvis Bay-Ndola- where we can import mining 17| Transport
“The port master plan that looks at this
new area, identified the need for the port
to serve not just our small population in
Namibia, but the whole of SADC.”
Elzevir Gelderbloem
Executive Secretary of Namport
agreements.” old road connecting Walvis
SADC Strategy: In 2004 WBCG led an initiative Bay with nearby Swakopmund
The Regional Infrastructure to build a bridge at Katimo is undergoing a USD 75
Development Master Plan (RIDMP)
is the backbone of SADC’s
Mulilo, linking Namibia with million upgrade. The new dual
infrastructure vision for the future. Zambia as part of the Walvis Bay- carriageway will be primarily
It aims to develop and maintain Ndola-Lubumbashi Corridor. for the use of heavy transport
the transport infrastructure in the “It’s almost like developing a servicing Walvis Bay and is
region and to harmonise policies warehouse for SADC through expected to be finished in 2018.
around transport. Key to this is
the ability of Member States to
Walvis Bay. If you look at Brazil For Namport engineer Hango,
implement transport reforms and and the rest of South America, the future – for the port and for
to ensure sustainable funding for it takes 20 days to get to the the region – is bright.
the maintenance and provision economic centres of the world, “This whole upgrade is built
of infrastructure. The RIDMP but it takes seven days for a ship around the idea of being the
also seeks to stimulate economic
development by fostering public-
to get to Walvis Bay from Brazil, gateway into SADC,” he says. “If
private partnerships and promoting and it’s only us who can do that.” you come back in a few years,
regional development corridors. In Walvis Bay, the streets it’s going to be the Singapore of
are alive with industry as the Africa.”
materials and general cargo like
supermarket products and frozen
food.”
The development and
maintenance of the corridor
infrastructure connecting Walvis
Bay to the rest of SADC is driven
by the WBCG. Founded in 2000,
the group’s mandate is to engage
in business development by
promoting the port of Walvis Bay
as a viable trade route for goods
to enter and exit SADC.
“Our stance has always been
that, like the African proverb, you
eat an elephant piece by piece,”
says CEO Johny Smith. “We took
time to assess and understand our
neighbours. And only upon that
did we develop relationships and
Transport|1819| Industrialisation
Beefing up Trade
SADC initiatives have boosted trade between Member States
and with the rest of the world, a trend set to continue with
the renewed focus on regional industrialisation.
I
n Africa, the size of your herd strategy.
relates directly to your financial Botswana, South Africa, Zambia
and social value. Keeping cattle and Zimbabwe already benefit from
for meat and leather production the global demand for leather goods
has long contributed to the formal such as shoes, bags and leather seats
and informal industries in most for luxury vehicles. Growing this
SADC countries. Realising this success is one of SADC’s objectives.
strength, the SADC Industrialisation Since the SADC Trade Protocol
Strategy proposes to grow the was signed in 1996, liberalisation
region’s herd and thus wealth of all of imports and exports among the
people. Growing the herd involves 15 Member States has multiplied
facilitated connection between cattle, mutually beneficial trade flows
meat and leather traders across within the SADC region and boosted
SADC borders and a joint export investment.
Industrialisation |20growth and development of the
regional leather industry.
Easier regional trade allows
local companies to access the best
inputs available instead of having
to procure everything at home –
be it cattle feed, calves or treated
leather. Regional collaboration is
all about realising and combining
each country’s individual strength
and moving as a stronger region.
The positive impact of these
initiatives has been immediate
for traders. The Botswana Meat
Commission (BMC), for instance,
has made plans to expand
both local and international
relationships, says CEO Dr
Akolang Tombale.
“The BMC is one of the three
main meat businesses in Africa
that export to Europe. We are
the largest, followed by the meat
corporations of Namibia and
Swaziland. In 2013, for example,
we sent 6,000 tons (of meat) to
Feedlot owner Werner Faber Europe and in 2016 it was 10,000
tons of beef and leather. That
At the same time, Member The effects were felt constitutes around 53% of our
States strive for policies that immediately by thousands of revenue,” says Tombale.
provide incentives to invest in the livestock traders in Zambia and The BMC is also the biggest
region. Zimbabwe. In the long run, this producer of leather in the region,
Through its Industrialisation change is contributing to the accounting for 75% of the highest
Strategy, an ambitious masterplan
for the region’s industrial
development over the next
five decades, SADC is seeking
to continue the success of the
Trade Protocol and other trade
initiatives.
One of those is a direct action
that benefits traders in live cattle.
In 2012, farmers pointed out that
Botswana only issued livestock
import and transit permits in
Gaborone, 1 000km away from the
border posts that link its slaughter
houses with neighbouring cattle-
farming nations. With the support
of SADC, Botswana decided to
issue the permits in other places
across the country as well. Dr Akolang Tombale
21| Industrialisation“First we provided for ourselves, now
we export to places like the European
Union.”
Arekipo Modise
Public Relations Officer
Botswana Meat Commission
grade leather. Its workforce has practical level: The BMC shares certified stamps on the sides of
grown from a few dozen twenty a marketing company with beef inside the processing plant.
years ago to well over 500 today. neighbours in Namibia, which It’s a relationship that has
“We have a growing trade has helped grow sales for both been further deepened by the
in raw leather to South Africa countries outside Africa. SADC-EU Economic Partnership
where they’re using it in the car This is good news for those in Agreement, signed in June 2016
industry, clothing and other the industry. In Gaborone, feedlot between the EU and Botswana,
consumables,” he says. owner Werner Faber says local Lesotho, Mozambique, Namibia,
One beneficiary is Handel skills are being used to produce South Africa and Swaziland. The
Street Upholsterers in and manufacture a range of feed agreement keeps all those exports
Johannesburg, South Africa. sorts for local herds. to the EU duty free and supports
Handel produces high quality “Through the support of the the participating SADC countries
car interiors for customers industry, we have a few hundred in meeting the EU standards
throughout the region. staff now. There are a lot of required to obtain the necessary
Marketing Director Ashraf positives and things look great for stamps.
Ismail says the industry is the future,” says Faber. For SADC citizens like Modise,
growing exponentially: “Rising The employment created by these regional initiatives –
consumer preference for businesses linked to beef and combined with entrepreneurial
retrofitting of vehicles with leather is vital to the economy of productivity – have had real
leather upholstery is further Botswana. impact on their lives.
supporting growth of the market Back at the meat processing
through the aftermarket channel.” plant, there’s a man who believes SADC Strategy:
The SADC Industrialisation
While quality Botswana implicitly in the Botswana meat Strategy and Roadmap 2015-
leather is used, buyers of these industry. Arekipo Modise started 2063 recognises the necessity
products can be further afield. out as a security guard at the for the structural transformation
“Nigeria is expected to be the BMC plant in 2002 and is now its of the SADC region through
industrialisation, modernisation,
largest consumer of leather for public relations officer. upgrading, skills development,
automotive interiors on the “We can immediately see from science and technology, financial
continent, burgeoning growth the meat how valuable it is and strengthening and deeper regional
integration. It promotes a strategic
of the global automotive interior it is then stamped appropriately. shift from reliance on resources
leather market,” Ismail says. First we provided for ourselves, and low-cost labour to increased
And the leather industry now we export to places like investment and enhanced
productivity of both labour and
already benefits from stronger the European Union,” he says, capital.
regional integration on a proudly pointing at the EU
Industrialisation |2223|Finance
Breaking Banking
Barriers
SADC’s initiative for regional banking has helped Member
States improve their banking systems and broaden access
for the region’s citizens.
B
anking has remained out of reach integration was the introduction of the
for millions of Southern African SADC Integrated Regional Electronic
citizens, prompting regulators and Settlement System (SIRESS) as a cross-
banks to work harder to ensure border payment solution. All SADC
that more than a privileged few benefit currencies, including the US Dollar, have
from banking services. been approved by the Committee of
Many people in rural areas of the Central Bank Governors as settlements in
region may never see the inside of a bank. SIRESS.
Statistics released by the State Bank of According to SADC Banking Association
Mauritius, for example, show that up Executive Secretary Maxine Hlaba, the
to 80% of Africa’s adult population is system is paying off across the region.
unbanked for a range of reasons. “We now have 83 participants on SIRESS
The SADC Protocol on Finance and made up of 76 commercial banks and seven
Investment, signed in 2006, addresses some central banks. Fourteen countries are now
of these challenges. It seeks to accelerate live on SIRESS, and we continue to bring
growth, investment and employment in on board more banks,” says Hlaba.
the region through increased cooperation, She adds: “As at the end of April 2017,
coordination and management of the total number of transactions settled
macroeconomic, monetary and fiscal through SIRESS was 733,597, representing
policies. It also works to establish and a value of USD 244.7 billion.”
sustain macroeconomic stability as a There are also local benefits as the
precondition for sustainable economic banking association has worked to help
growth and for the creation of a monetary banks in Member States to attain the
union in the region. necessary levels of delivery to join as well
One initiative for greater financial as to promote financial inclusion.
Finance |24and on the SADC Finance and
Investment Protocol specifically.
Nkungula says Malawi backs
SIRESS fully and banks in her
country are now able to focus on
growing their client base not just
among local citizens but further
afield too.
“We cannot work as an island;
we have to work with each other
because there’s a lot of cross-
border trading with neighbouring
countries – it’s one of the main
reasons why we joined SIRESS.
We have seen cross-border
trade volume grow from 10% to
around 30% and this means a
Mobile banking business is big in Malawi greater reliance on intra-regional
banking,” she says.
In Malawi, for instance, sector. Partnerships between banks
the challenge to get people Nkungula says bankers in and non-banks have grown,
into the banking system is not Malawi are aware that SIRESS according to Nkungula. Through
only economic but also one of is vital to allow the nation to such arrangements, banks are
perception. Citizens believe brick continue to develop: “We decided able to offer products beyond
and mortar institutions are only to join SIRESS in October 2015 bill payments and remittance
for the rich, according to the because we’re a family within the activities such as savings, credit
Institute of Bankers’ Executive SADC region and thought that if and insurance.
Director Lyness Nkungula. left out, then we’d be left out for “The perception in Malawi
“About 75% of Malawi’s people good in terms of technology. It that banks are only for the rich
have access to mobile phones, would have become challenging is changing, and technology and
which means we have to reach out for us to trade with the other innovation will help speed up
to the unbankable populations countries in the region.” this process,” says Nkungula. “We
through mobile phones,” she says, Malawi joined Angola, have ten banking groups and a
adding that there are definitely Botswana, DRC, Lesotho, population of around 17 million.
opportunities for expansion. Namibia, Mauritius, Mozambique, Of these only about 30% are
All of Malawi’s ten banking Seychelles, South Africa, bankable, it means a lot of banks
group are adopting new Swaziland, Tanzania, Zambia and competing for a few customers.”
technologies. As members of Zimbabwe – who are all part of As new technology becomes
SIRESS, they recognise the need the SADC Banking Association more widely adopted, there will be
to focus on the majority of the constituted in 1998 – in the a surge towards mobile banking.
population who do not yet have SIRESS process. “At the moment not every bank
formal bank accounts. The SADC Banking Association has mobile banking, but that’s the
The Institute of Bankers in provides a regional banking direction in which they have to
Malawi is working closely with leadership platform for strategic go,” says Nkungula.
the financial sector to use mobile direction and to promote and One group of the population
phone-driven technology to add transform the whole of the region that has noted new mobile
millions of new customers. The into a single economic bloc. Its banking services are citizens with
Reserve Bank of Malawi (RBM) establishment was tied to the disabilities. They can now access
published guidelines for digital need for a federation of banking funds and move money without
financial services and drafted the associations as the interface having to travel, often at great
E-Money Regulation and Payment on matters relating to regional difficulty, to an actual bank.
Systems Law to guide the financial financial integration in general Stella Nkonya, the Executive
25| Finance“About 75% of Malawi’s people have access
to mobile phones, which means we have
to reach out to the unbankable populations
through mobile phones.”
Lyness Nkungula
Institute of Bankers Executive Director
Bankers knows that co-operation
with national regulators is vital.
“The SADC banking system has
linked us to so many countries as
well as members,” she says. “The
local banks can’t work within just
Malawi, the growth will be small.
Their growth is quicker if they link
up with other banks in the region
and even outside Africa.”
This is borne out by SADC
banking statistics, which show that
banking within the region fulfils a
key need of citizens and business.
In 2015, for example, 55% of
banking transactions were from
one Member State to another.
Bank clients waiting to move money It means financial frontiersmen
and women with technologically
Director of Malawi Human Rights banking, there is no interest appropriate offerings that are
for Girls with Disabilities, says the charged.” backed by SADC’s Finance and
new banking technologies have Another community benefitting Investment Protocol are set to
helped her organisation and its from an improvement in banking benefit and set to better serve their
members. technology are village banking clients too.
“People with disabilities groups. With banking groups,
SADC Protocol:
benefit from not waiting in bank people pool their cash at weekly In order to speed up growth,
queues or struggling to walk long meetings and bank as a collective. investment and employment
distances to a bank,” she says. Mobile banking has allowed in the SADC region, Member
States in 2006 passed the
“Mobile banking is simple and these groups to send their money SADC Protocol on Finance and
easy; handy and immediate.” through a trusted system. It Investment. The protocol aims
The cost of mobile cash has helped promote the idea of to improve and facilitate the free
movement of capital and labour,
transactions is also cheap. Nkonya joint accounts and community goods and services and to create
adds: “If you want to move money development through collective appropriate institutions and
using other systems you have to savings. mechanisms to achieve these
pay a service fee but with mobile Nkungula from the Institute of objectives.
Finance |26Sharing SADC’s
White Gold
Taking care of the region’s water resources requires an integrated
approach to water management. It’s a lesson shared by ORASECOM’s
four members – Botswana, Lesotho, Namibia and South Africa – who are
restoring the Lesotho Wetlands to keep the Orange-Senqu River alive.
W
hen rain falls Lesotho highlands. The wetlands of the nation.”
over the Lesotho absorb water during rainy season In 2000, SADC Member States
highlands, 3,500 and release it into the river system signed the Revised Protocol
metres above sea periodically, supporting a steady on Shared Watercourses in the
level, it flows into the Orange- flow and mitigating the effects interest of better managing the
Senqu River – one of the largest of both flooding and drought region’s shared water resources.
rivers in Africa. Over a distance of downstream. The protocol saw the creation
2,200km it winds its way through However, in recent years, of a number of bodies, among
South Africa and Namibia, degradation of the wetlands has them the Orange-Senqu River
with tributaries stretching into reduced their capacity to retain Commission (ORASECOM),
Botswana. and release water. This has risked which exists to manage the
Throughout its course the river the flow of water throughout the Orange-Senqu river system among
plays a vital economic role for entire riparian system. the four countries that are part of
local people. In the highlands of “We are aware that our it: Botswana, Lesotho, Namibia
Lesotho where dams have been grasslands are deteriorating and and South Africa.
erected to create hydropower, that there is a shortage of water,” “There are 15 shared
the sale of the headwaters of the says Mpiti Letse, Chief of the Ha watercourses in SADC, each
Orange-Senqu generates 33% of Tlhaku village in the Khubelu with their own issues,” says
Lesotho’s Gross Domestic Product. Wetland of Lesotho. “There Phera Ramoeli, SADC’s Senior
And as it flows through Gauteng, is a plant called Diphophotho Programme Officer for Water.
it contributes to 26% of South which used to grow in our fields “ORASECOM has a number of
Africa’s economy. but has stopped growing due successful initiatives. They now
Because of its immense value to the unwanted weeds. We are have a fully-fledged water resource
to their country, the local Basotho trying to make sure that there is management strategy, which takes
refer to their water resources drinking water for both us and our into account all of their initiatives
as “White Gold”. The riparian livestock, and that the water in the to ensure that water resources of
system of the Orange-Senqu is Qoadi River flows because it feeds the Orange-Senqu are managed to
maintained by the wetlands of the the Senqu River, which is the river avoid potential conflict between
27| WatercoursesWatercourses |28
The Lesotho Highlands, 3500m above sea level nations.” have only two million hectares of past, cattle herders allowed cattle One potential source of conflict grazing land, so if you do the math to range freely during the day, is the overgrazing in the Lesotho you see we need an area almost leaving them to eat only the more wetlands, which is beginning three times the size of Lesotho for palatable plants of their choosing. to have negative effects on the our cattle.” This accelerated the decimation resources downstream. The The Sponge project works with of these plants and created a void Protection of the Orange-Senqu the residents of the wetlands to in the environment, leading to the Water Sources (Sponge) project establish grazing associations degradation of the rangelands. works with Lesotho’s Department composed of stakeholders within By implementing high density of Range Resources Management the wetlands. grazing, herders restrict the cattle’s and the Department of Water One technique implemented grazing to limited areas, giving Affairs to address the wetland’s by the grazing associations is depleted plants in other areas time degradation through a technique called high density grazing. In the to regrow. known as holistic grazing management. “According to the 2006 census, we had 70,000 animal units in Lesotho,” says Dr Rats’ele Rats’ele, Director of the Department of Range Resources Management. An animal unit refers to the rough mass of one cattle or the equivalent weight of smaller livestock. “Each animal unit requires eight hectares of land to graze each year (in order) to prevent degradation of the land,” he says. “However, we Lesotho’s wetlands keep the Orange-Senqu flowing 29| Watercourses
“We are practising rotational associations want to take part. affecting people across national
grazing/farming with the hopes Even communities from as far boundaries can be solved by
of keeping all the grasslands in a away as Maseru (300 km away) people on the ground working
good condition,” says Chief Letse. are approaching our offices for together – to create a solution with
“The benefits of rotational grazing training,” he says. The number of regional benefits.
will be evident during the winter grazing associations wanting to get
season because there will still be involved has already exceeded all SADC Protocol:
sufficient food for our livestock. expectations. The ORASECOM Secretariat is
Another benefit is that it prevents “This shows the success that one of many institutions to come
out of the Revised Protocol on
soil erosion during heavy rains or is coming from Khubelu,” says Shared Watercourses passed in
windy days.” Dr Fanana. “We look forward to 2000. The protocol calls for the
By keeping the wetlands upscaling [the project] to the rest formation of institutions States for
the 15 major shared watercourses
functional, all four Orange-Senqu of the country. We have a realistic in the SADC region to manage
countries benefit from improved shot at saving the wetlands; we them sustainably, equitably and
grazing management by herders in have a winning formula.” reasonably towards the SADC
goals of poverty alleviation and
the Lesotho mountains. And this winning formula regional integration.
The Sponge project is also shows that complex problems
seeing an impact on the lives of
those in the grazing associations.
Before the project, farmers
expected gestation rates of
30 to 40% in cattle, but now
farmers involved in the grazing
associations report 100% gestation
rates. Others report substantially
higher yields of wool and mohair
from flocks of sheep and goats.
“When the project first started
only a few grazing associations
wanted to take part,” says the Head
of the Water Resources Division of
the Lesotho Department of Water
Affairs, Dr Makomereng Fanana.
“Now just about all the grazing The Orange-Senqu river system
The project shows that herders can impact the entire riparian system
Watercourses |30A Journey to
Development
The SADC Regional Infrastructure Development Master Plan
(RIDMP) and the SADC Protocol on Transport, Communications
and Meteorology underpin regional development corridors.
The Moatize-Nacala railway illustrates the benefits of corridors
based on well-maintained infrastructure and seamless transport
services.
I
n November 2016, the upgraded. is the blueprint for realising
first train and coaches to The Nacala-Moatize railway the concept in practice. For
travel the 912km between is one of the corridors under the the Nacala corridor, this meant
the coal fields of Tete RIDMP and was delivered by a generating long-term investment
Province in Mozambique and public-private partnership with returns, focusing jobs in the
the new port of Nacala set off. the government of Mozambique. region to reduce poverty,
The railway, traversing Malawi, The concept of spatial making it easier for agribusiness
is an important link between the corridors and spatial to grow, and contributing to
coal producing province and the development initiatives seeks more economic, social and
closest major port. The train’s to facilitate the development environmental progress.
arrival at Nacala ushered in a of trade, industry, agriculture, The African Development
new era for SADC. mining, energy, tourism Bank provided USD 300 million
While the port of Beira had and other resources. These for Malawi and Mozambique in
been handling the coal shipments resources are inherent in the order to upgrade infrastructure
in the past, it was unable to deal zones traversed by regional and ensure the maintenance
with increased capacity, making infrastructure networks such as for the railway line. Small and
it necessary to build a line to roads and railways. medium sized businesses were
Malawi where it would join an The RIDMP, approved in earmarked for growth by the
existing line that needed to be 2012 by SADC Member States, development bank.
31| InfrastructureYou can also read
