The Southern African Development Community (SADC) continues to advance efforts to operationalize its Regional Development Fund (RDF) following a series of high-level meetings involving Ministers of Finance and Investment, Senior Treasury Officials, and technical experts.

The initiative was first set in motion at the Committee of Ministers of Finance and Investment meeting held in August 2024 in Angola, where it was resolved that Senior Treasury Officials and Experts from Member States convene a dedicated workshop in November. The workshop, held on November 8-9, 2024, in Harare, Zimbabwe, culminated in recommendations that warranted an extraordinary virtual meeting of Ministers of Finance and Investment on December 12, 2024.

In his opening remarks, Zimbabwe’s Minister of Finance, Economic Development and Investment Promotion, Hon. Prof. Mthuli Ncube, who chairs the Committee, emphasized the significance of the African Development Bank’s (AfDB) presentation on the Revised RDF Discussion Paper. Prof. Ncube noted that the recommendations align with the 2016 Agreement on the Operationalisation of the RDF, underscoring their importance in achieving regional economic development and sustainable growth.

SADC Executive Secretary, H.E. Mr. Elias Magosi, reiterated the need for the RDF as a financing mechanism to support regional development objectives. Acknowledging fiscal pressures faced by Member States, Mr. Magosi highlighted innovative mechanisms for capitalizing the Fund, including concessional funding from the African Development Fund (ADF), a window of the AfDB tailored for low-income countries.

Mr. Magosi cited success stories, such as the ADF’s 2015 support to Benin, Ethiopia, and Côte d’Ivoire for their contributions to the African Trade and Investment Development Insurance Agency (ATIDI), as examples of how Member States could overcome financial constraints. He expressed gratitude to the AfDB for its commitment to partnering with SADC in operationalizing the RDF, calling for Member States to match this commitment to ensure the Fund’s success.

The Ministers endorsed several key recommendations from the Revised Discussion Paper:

• Establishing the RDF as a standalone Special Purpose Vehicle (SPV) with a Permanent Capital Structure.
• Adopting a staged operationalisation approach, beginning with a Proof-of-Concept Stage.
• Urging Member States that have not signed or ratified the Agreement on the RDF’s operationalisation to do so without delay.

The Ministers further reaffirmed the importance of aligning their national and regional development objectives to fast-track the Fund’s implementation.

The operationalisation of the SADC RDF marks a significant step toward enhancing the region’s ability to finance development initiatives independently. With the support of the AfDB and a clear roadmap, SADC Member States are poised to leverage this Fund as a transformative tool for fostering economic integration and sustainable growth across the region.

The outcomes of this extraordinary meeting will be presented to the SADC Council and Summit for final endorsement, signaling another milestone in SADC’s journey toward a more self-reliant and prosperous region.