N Dlamini Zuma: Southern African Development Community (SADC) council of
ministers media briefing

27 February 2009

Introduction

The SADC Council of Ministers has two regular scheduled meetings every year:
in February to take stock of the performance of SADC institutions and to
approve its work programme and budget for the next fiscal year and in August to
review the overall implementation of the SADC socioeconomic programmes in
preparation for the annual ordinary summit of SADC Heads of State and
government. The Council of Ministers met on 26 and 27 February 2009 at the Cape
Town International Convention Centre in South Africa. During this sitting,
Council took stock of the performance of the secretariat during the fiscal year
ending 31 March 2009 and approved the budget for the fiscal year starting 1
April 2009.

Before I delve into the outcome of our meeting however, let me briefly
appraise you on the socioeconomic, political and security situation prevailing
in the SADC region.

Socioeconomic, political and security situation in the SADC region

Socioeconomic situation in the region

The prospects for economic growth and development in the SADC region are
likely to be negatively affected by the global economic crisis.

Most, if not all SADC Member States are highly depended on primary
commodities such as minerals, oil, and agriculture. The contraction resulting
from the global economic crisis will certainly affect the prices of the primary
commodities as demand for these commodities from developed countries is
decreasing.

Prior to the crisis, the region was experiencing positive economic growth
rates of between five to seven percent in the last five years and this is now
projected to be around four percent per annum. With the exception of Zimbabwe,
the average inflation rates slowed down to less than ten percent.

In this regard, we have also received a report from the ministers
responsible for finance and investment, emanating from their meeting that took
place here in Cape Town on 25 February 2009, specifically to look at the impact
of the global economic crisis on our region as well as to receive a report by
the Government of Zimbabwe on the economic situation in that country, on the
basis of which a regionally supported economic recovery programme was crafted
by the ministers. The report from the Zimbabwean delegation entailed the
short-term budgetary requirements for its economic recovery programme. In this
regard, the ministers noted the unprecedented levels of hyperinflation and the
loss of value of the currency resulting in the use of multiple currencies;
sustained periods of negative Gross Domestic Product (GDP) growth rates; low
productive capacity and severe de-industrialisation; collapse of social
services, food shortages and high levels of poverty and general public
despondency.

Thus, the ministers responsible for finance and investment undertook to
pursue measures in support of Zimbabwe's economic recovery programme, namely,
collectively engaging bilateral and multilateral donors through SADC and the
African Union (AU); facilitating the normalisation of the status of Zimbabwe at
the International Monetary Fund (IMF), and the lifting of sanctions, both
political and financial within the spirit of the Global Political Agreement,
and convening an Extra-ordinary Summit of SADC Heads of State and Government to
consider the financing proposals submitted by Zimbabwe.

Political situation in the region

The SADC region remains generally calm. Like any other region of the world,
there remains room for improvement and SADC has marked the following
progress:
Republic of Zimbabwe the Extra Ordinary Summit of SADC Heads of State and
Government of 26 January 2009 paved the way for the current developments in
Zimbabwe, namely, the swearing in, on 11 February 2009, of The Right Honourable
Mr Morgan Tsvangirai as Prime Minister and the two deputies the Honourable
Professor Arthur Mutambara and the Honourable Ms Thokozani Khupe. This was
followed by the swearing in of ministers on 13 February 2009 and the Government
of National Unity is in now in place.

Democratic Republic of Congo (DRC)

The arrest of Rebel leader, Mr Laurent Nkunda paved the way for further
dialogue between the Government of the Democratic Republic of Congo and rebels
in Eastern DRC. The integration of the rebel forces is now underway with the
commencement of the implementation of the Amani Peace Agreement under which all
armed groups in DRC have agreed to disband, with some joining the national
government forces, and others are to be demobilised. It also resulted in the
repatriation of negative forces to their countries, i.e., Former Defence
Personnel of Rwanda known as FDLR. Consolidating this process entails the
implementation of the Nairobi Agreement under which the governments of DRC and
Rwanda are engaged in dialogue to ensure peace and security in the Great Lakes
Region.

Madagascar

Following a brief by the Prime Minister of Madagascar to the SADC
Ministerial Committee of the Organ (MCO) Troika in Addis Ababa, Ethiopia on 2
February 2009, the Chairperson of the SADC Organ on Politics, Defence and
Security Co-operation, HM King Mswati III of Swaziland fielded an assessment
mission to Madagascar. The first mission was undertaken by SADC Executive
Secretary, Dr Tomaz Augusto Salomão on 6 to 8 February 2009 where he held
consultations with Honourable Mr Marc Ravalomanana, the President of
Madagascar, Prime Minister and other stakeholders.

The second assessment mission from 14 to 21 February 2009 was led by MCO
Chairperson Honourable Lufto Dlamini, Minister of Foreign Affairs of the
Kingdom of Swaziland. This mission held consultations with all stakeholders,
namely, the government, diplomatic missions, civil society and representatives
of churches in Madagascar as well as the former Mayor of Antananarivo, Mr Andry
Rajoelina.

After this mission, the President and the mayor held several meetings that
temporarily calmed the situation in Madagascar. However, the breakdown in the
negotiations a few days ago render the situation unpredictable and requires
close monitoring by all stakeholders in the region and the international
community at large.

Council during this sitting deliberated on the security and political
situation in Madagascar and resolved that:

* SADC supports the current dialogue process in Madagascar and urges all
parties to the negotiations to remain committed to the process until a peaceful
solution has been found.

* SADC urges all parties to the dialogue to respect rule of law and refrain
from the use of violence in resolving their differences.

* SADC regrets the loss of lives, injuries and damage to property.

* SADC urges all parties to respect the democratic principles and values in
Madagascar.

* SADC will not entertain illegal removal of the legitimate government from
power.

* SADC will provide assistance to Madagascar in terms of training of the
security forces and antiriot equipment.

Elections in the region

SADC continues to uphold democracy as indicated, by, amongst others, the
holding of regular democratic elections of the region's leaders in every Member
States. This year, at least seven SADC Member States are set to hold general
elections between April and December this year, starting with South Africa in
April 2009; Malawi in May; Angola in September/October; Botswana in October;
Namibia in November and Mozambique in November/December.

SADC position on United States of Africa

In as much as SADC supports the integration of Africa, we first seek
regional integration before we proceed to the continental integration as a
gradual approach in accordance with the decision of the Extra Ordinary Summit
meeting of SADC Heads of State and government held in October 2006 in Midrand,
South Africa.

Implementation of council decisions

Restructuring of the Regional Tourism Organisation of Southern Africa
(RETOSA)

Pursuant to council's decision to restructure the Regional Tourism
Organisation of Southern Africa (RETOSA) accord it the status of an autonomous
subsidiary of SADC. Its transitional road map commenced in January 2008 and
will be completed in March, 2009. Effectively, a Memorandum of Understanding
(MoU) which defines the working relationship between SADC and RETOSA shall be
signed by SADC Executive Secretary and the Chairperson of the RETOSA Board of
Directors.

COMESA-EAC-SADC

In pursuit of the COMESA-EAC-SADC Tripartite Summit decision of 22 October
2008 for the establishment of a Free Trade Area of the three Regional Economic
Communities (RECs) with the ultimate aim of establishing a single Customs Union
(CU), council noted that progress has been made with a roadmap put in place
covering the following areas:

A feasibility study, methodology and timelines for the creation of the FTA
and the facilitation of free movement of business persons; implementation of
joint programmes of regional infrastructure development; finalisation of legal
and institutional framework for the Tripartite Framework and arrangements for
the North-South Pilot Corridor Donors Conference for the submission of bankable
projects taking place in Lusaka on 6 to 7 April 2009. The conference seeks to
provide high-level support for the implementation of the Tripartite Summit
decisions, secure commitment from International Financial Institutions, donors
and the private sector as well as Aid for Trade to finance identified project
in transport, trade facilitation and development.

Hashim Mbita project

Council noted the significant progress made in the implementation of this
project, documenting the history of the liberation struggle both from oral
interviews with participants in the liberation struggle, as well as with
various liberation movements' leaders, guerrilla fighters and supporters of the
liberation struggle in their ranks. Also, research has been carried out in the
core countries in which liberation wars were waged, namely, Angola, Mozambique,
Namibia, South Africa and Zimbabwe, as well as in the Frontline states of
Botswana, United Republic of Tanzania and Zambia, and other SADC Member States
of Lesotho, Malawi and Swaziland. The findings of the research and oral
interviews shall be published in two volumes. The research has now progressed
towards research in other African countries and organisations outside the SADC
Region and the world at large which supported and contributed in various ways,
to the success of the liberation struggle. These will be fused and published as
volume three, subtitled "Countries in solidarity and support of the liberation
struggle in Southern Africa."

Finances and brief programme focus summary

First, let me proudly state, and congratulate all our Member States for
having paid their contributions to the SADC Secretariat for the year
2008/09.

2008/09 Expenditure report

During the period under review, the secretariat has utilised the resources
allocated to it, expending at least 88 percent of the budgeted 26 United States
dollars, 200 from the Member States contributions, and at least 106 percent of
the original budget of 24 United States dollars, 534,279 from the International
Co-operating Partners (ICPs).

2009/2010 Budget

Council approved a total of 53 United States dollars, 884 SADC institutions
budget for the fiscal year 2009/2010 to be funded as follows:

Member States Contributions 24,771
Development partners 28,187
Other income 990
Total 53,948

Brief programme focus summary

These funds will be utilised for the implementation of the secretariat's
strategic plan, towards the achievement of the region's long term goal of
deepening regional economic integration as follows:

Organ on politics, defence and security co-operation

In this area, the budget shall be utilised to implement programmes
pertaining to peace and security, including the operationalisation of the SADC
Brigade, in line with African Union (AU) Standby Force Roadmap that stipulates
that by 2010, the African Union Standby Force should be operational with all
RECs Standby Brigades having carried out preparedness exercises in 2009 and an
exercise of the whole African Standby Force in 2010. The resources shall also
be utilised to monitor the elections in the region which in turn will help the
region to ensure compliance of Member States in the holding of regular
democratic elections in 2009. In this regard, two structures shall be
established, namely, the Mediation Unit and the SADC Elections Advisory Council
shall be established, which is a unit of the organ that looks into election
issues.

Trade, industry, finance and investment (TIFI)

In this area of TIFI the just approved budget will help SADC advance its
agenda in the implementation of the FTA which was officially launched in august
2008; particularly, trade facilitation and customs modernisation. To prepare
the region to achieve the next milestones in the economic integration process,
the resources will be used to implement activities related to preparation of
the SADC Customs Union (CU) and the Common Market (CM). Specifically, the
resources will be used to implement activities related to: Macro-economic
convergence programme; harmonisation of policies leading to the liberalisation
of the current and capital accounts of the balance of payment; facilitation of
the Project Preparation and Development Facility (PPDF); and development of a
framework for enhancing productive competitiveness of the industrial sector of
the region.

Infrastructure and services

In the area of infrastructure and services, the just approved budget shall
be applied to implement projects contained in the SADC Infrastructure
Development Master Plan, namely: to facilitate the scaling up of the
development of infrastructure to bring about deepening of SADC's regional
integration as well as accord SADC citizens and business the much needed
universal access to infrastructure, as a way of reducing the cost of doing
business as well as addressing the supply side constraints. Priority
intervention areas in this regard include co-ordination of priority projects
relating to power generation and transmission given the prevailing power
crisis; the development of SADC corridors to facilitate intra-SADC trade;
developing regionally integrated broadband information communication technology
(ICT) connectivity as well as water supply and sanitation projects.

Food, agriculture and natural resources (FANR)

In this area, the budget will mostly be used to monitor progress in the
implementation of the Dar-es-Salaam Declaration on Agriculture and Food
Security. Specific provisions have been allocated to the weather/rainfall
forecasts, crop production assessments, and overall co-ordination of
agriculture information. The budget also caters for policy co-ordination and
harmonisation in the agricultural inputs such as seed, fertiliser and land
reform aimed at promoting agricultural production and productivity. The FANR
Directorate will use part of the approved budget to co-ordinate and facilitate
policies and activities to control the spread of transboundary crop and animal
diseases such as foot-and-mouth disease (FMD) which deprive farmers of their
income and act as main non-tariff barrier to trade. FMD in particular was given
special attention at this meeting because of the recent outbreak in most of our
Member States which threaten trade and are very costly to constrain. The
approved budget will also support agriculture research undertaken by a
consortium of research institutions in our Member States on competitive basis.
The last area which will also be supported is the conservation, management and
utilisation of our natural resources and the biodiversity. This specifically
includes the development of a protocol on environment, climate change,
implementation of protocols on wildlife, fisheries and forestry as well as the
conservation of the plant generic materials though the SADC Plan Generic
Resource Centre (gene bank) SPGRC.

Social and human development and special projects

In this area, programmes shall focus on interventions relating to the
prevention and control of major communicable diseases such as HIV and AIDS,
malaria and tuberculosis (TB) at regional level as well as public health
programmes. Attention shall also be paid to priority issues in the areas of
education and training, labour and empowerment and promotion of science and
technology and innovation.

Gender and development

In the area of gender and development, efforts shall be intensified to
implement projects in policy development and harmonisation, gender
mainstreaming and women's empowerment. This includes activities to popularise
the recently signed Protocol on Gender and Development, with advocacy
activities to facilitate the fast-tracking of ratification of this protocol. On
women's empowerment programmes, regional activities on women in politics and
decisions making capacity building, gender based violence, women economic
empowerment, human trafficking, especially of women and children shall be
implemented, while in the area of policy development and harmonisation, focus
shall be on the harmonisation of the regional gender policy with the national
gender policies. Gender mainstreaming programme will focus on finalising the
SADC Gender Work Place policy and implementation of the SADC gender
mainstreaming toolkit as well as capacity building for all the SADC secretariat
directorates on gender mainstreaming.

Policy, planning and resource mobilisation

In this area, due focus shall be given to policy and programme development
for the coming fiscal year, policy analysis and appraisal and result-based
monitoring and the implementation of the resource mobilisation strategy.

Ladies and gentlemen of the media, in short, this is the outcome of the SADC
Council of Ministers that has been underway here since yesterday.

Thank you for your attention.

For further enquiries:
Mr Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
27 February 2009
Source: SAPA