South Africa is an over-advantaged partner in the Southern African Development Community (SADC), Deputy Minister of Foreign Affairs Aziz Pahad said on Monday.
He was speaking in Sandton at a conference of business leaders from the SADC region.
”Inter-regional trade is still very low, but what is more significant is that this is heavily loaded in favour of South Africa,” Pahad told delegates of the Association of SADC Chambers of Commerce and Industry (ASCCI).
He said imports to the country are increasing too slowly and in an unsustainable way.
”It is in the interests of all our countries, including South Africa, that inter-regional trade must diversify faster, and more manufactured goods should be making up a larger share of overall trade in the region.”
Pahad said that without intervention by 2008, SADC will be weaker.
”Having opened up all tariff and other restrictions, it will be South African companies — in the absence of a holistic approach — that will benefit the most. This is not in the interest of any of our countries,” he said.
Stumbling blocks
Meanwhile, theft and corruption top the stumbling blocks that keep SADC businesses from further trade and investment, a survey released on Monday indicated.
SADC business people find that custom regulations, procedures and bureaucracy are the second-largest obstacles when doing business in the region.
The Business Climate Survey polled 322 businesses from all 14 SADC countries, except Tanzania, and was released by the ASCCI in Sandton.
”Regional integration can help address some of these problems, but little or no interference with letting enterprises get on with business may actually expedite it,” said ASCCI chief executive Sipho Mseleku.
SADC business leaders seemed upbeat about the situation in Zimbabwe.
”We are feeling very encouraged … that there is now dialogue with the government and the opposition in Zimbabwe, which is being championed by South Africa,” said ASCCI president Harrison Kalua.
The deputy president of the Zimbabwean National Chamber of Commerce, Sibanda Obert, said a social contract between the government, labour and business has been signed. The contract deals with economic stabilisation, the mobilisation of foreign currency and productivity.
”We are working on coming up with the implementation framework,” he said.
Earlier, Kalua had said: ”Political stability is key to doing good business.” — Sapa