HARARE, July 2– The Southern African Development Community (SADC) region needs to structurally transform its development finance to address challenges posed by declining donor support, South African Finance Minister Enoch Godongwana said on Thursday.
Godongwana made the remarks while addressing a meeting of the SADC Committee of Ministers of Finance and Investment in Harare, the Zimbabwean capital.
Noting that sub-Saharan Africa has entered a new phase of broad-based and unpredictable aid reductions, he said the trend is a systemic, lasting shock for the region rather than a temporary disruption.
To offset declining donor flows and protect critical social sectors, he urged the SADC region to urgently pivot toward sustainable and diversified financing models by leveraging blended finance, public-private partnerships, and deeper private sector participation.
“SADC member states should then consider adopting coordinated and forward-looking economic and policy responses to cushion their economies against these exogenous negative shocks,” Godongwana said.
According to the minister, key policy responses include positioning SADC as a competitive regional production hub by leveraging critical minerals to drive industrialization, prioritizing trade facilitation and digital payment reforms, and promoting agricultural cooperation to ensure regional food security. (Xinhua)
