SADC Pushes for Regional Fund Operationalisation

*Sadc executive secretary, Elias Magosi*

Rutendo Mazhindu

Zim Now Reporter

The Southern African Development Community reaffirmed its commitment to economic resilience and regional integration with a renewed push for the operationalisation of the SADC Regional Development Fund.

Speaking at the official opening of the SADC Committee of Ministers of Finance and Investment and the SADC Peer Review Panel Meetings in Harare on Wednesday, SADC Executive Secretary Elias Magosi said progress was well underway on the implementation of Stage 1 of the fund the Proof-of-Concept phase.

“Significant progress has been made towards mobilising the resources required for the operationalisation of the Stage 1,” said Magosi.

“In January 2025, the President of the African Development Bank Group reiterated the Bank’s commitment to support this critical implementation phase, marking an important milestone in our shared efforts to bring the Fund to life.”

The regional fund is designed to address financing gaps, reduce reliance on external funding sources, and enhance domestic resource mobilisation.

The fund’s first request of five million Units of Account has already been submitted to the AfDB under the Transition Support Facility. A second request for US$10 million will be lodged in July under the ADF-17 proposal window.

Magosi urged member states to submit expressions of interest in equity participation, either through the African Development Fund or directly through the AfDB.

“These expressions of interest will enable the Bank to prepare a formal funding proposal. It is therefore my humble plea to Member States to provide these expressions to enable the Secretariat and the Bank to progress this matter,” he said.

The outgoing AfDB President, Dr. Akinwumi A. Adesina, who leaves office in September 2025, was commended for his support of the regional fund. His successor, Dr. Sidi Ould Tah, is expected to continue the collaboration.

The Executive Secretary also warned of rising global trade tensions, tightening financial conditions, and deepening macroeconomic imbalances, calling on the region to develop its own financial instruments and diversify its trade partnerships.

“Diversifying trade partners and supply chains is not just a strategy; it is an imperative. The current multilateral system is falling short in delivering fairness and equity,” Magosi said.

“We must move swiftly and decisively to develop regional financial instruments that secure our stability.”

Finance Ministers, Central Bank Governors, and high-level officials from across the region attended the meeting, chaired by Finance Minister Professor Mthuli Ncube.

In his closing remarks, Magosi praised Zimbabwe for its leadership.

“I extend my sincere appreciation to Honourable Professor Mthuli Ncube, our Chairperson, for his outstanding leadership and tireless efforts,” he said. “We look forward to productive deliberations that will strengthen our regional agenda.”

The meeting is part of a series of high-level engagements aimed at advancing the SADC industrialisation and financial integration goals in line with the SADC Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP) 2020–2030.