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INITIATIVE FOR SOUTHERN AFRICA
>> Regional Overview >> Initiative for Southern Africa Overview Introduction
The southern Africa region, which contains Africa's most well-developed infrastructure and diverse natural resource base, has the potential to lead the rest of Africa into a more prosperous 21st century. The region comprises 14 countries spanning a geographical area the size of the continental United States, with a population of close to 200 million people. Through the Southern African Development Community (SADC), established by treaty in 1992, these countries are committed to regional economic cooperation and integration, as well as to environmentally sustainable use of the region's natural resources; human rights; democracy and the rule of law. Achievement of these objectives will create a larger, more stable, more democratic trading partner with the United States. USAID's activities directly support the following strategic goals of the U.S. Embassy's regional Mission Performance Plan: economic development of the SADC region; open markets and exports; democracy and governance; and environment.
With the creation of a larger integrated market, southern Africa will attract substantial domestic, regional and foreign investment and will have a combined gross domestic product (GDP) of over $175.4 billion. Even with needed reforms only partly completed, trade between the United States and SADC countries has been growing. U.S. exports to the region increased from $3.4 billion in 1995 to an estimated $4.26 billion in 1998, while U.S. imports from the region increased from $5.4 billion in 1995 to $6.16 billion in 1998. Full achievement of a SADC free trade area by 2008 is expected to contribute to a significant increase in economic growth, creating jobs and raising the standard of living throughout the region.
In response to the positive changes taking place in the region and the region's potential, USAID is undertaking the Initiative for Southern Africa (ISA). The purposes of the ISA are to encourage the region to continue with growth-oriented reforms; to expand economic and political cooperation; and to support the reintegration of South Africa's industrial, financial and technical resources into the regional economy in a manner that stimulates mutually beneficial development. The ISA complements and supports broader U.S. foreign policy initiatives, such as efforts by the Department of Commerce to create export opportunities for U.S. industry; by the Office of the U.S. Trade Representative's negotiation of a Trade and Investment Framework Agreement with SADC; and the Secretary of State's annual SADC-U.S. Forum.
The Development Challenge
The countries of the region share many common features, including recent rapid economic and political changes and commitment to a common development path. The debate in the region is no longer whether regional cooperation and integration should be pursued, but when, in what sectors, and under what institutional arrangements. Embodied in those questions are significant development and institutional challenges. Progress toward regional market integration and sustainable, well-established democracies has not been without setbacks. Although SADC leads the integration process across many sectors involving numerous government ministries in each member country, as an institution SADC itself is diffused and not consistently effective. From USAID's standpoint, operating regionally presents many challenges, among them how best to engage SADC and its various institutions, and how best to achieve a high degree of collaboration with USAID bilateral programs and the efforts of other donors. On the development front, continued efforts will be made at the regional level to fully integrate democratic norms and practices into society, develop a free market economy, and assist the region to sustainably manage natural resources across national borders.
The ISA's regional approach is USAID's answer to these developmental and institutional challenges. Implemented by USAID's Regional Center for Southern Africa, the ISA is designed to work in several ways that differ from and complement USAID's bilateral programs. USAID's regional program provides interface with SADC and focuses on the challenges of regional integration that are largely cross-border in nature and beyond the reach of bilateral programs. USAID has actively participated, with regional partners, in promoting policy reform efforts at the national level in southern Africa, particularly those related to democratization and the liberalization of macroeconomic and trade-related policies. The ISA also supports the development and implementation of SADC protocols, treaties and declarations in the areas of gender equity; transport and communications; trade; finance and investment; shared watercourses; and other transboundary natural resources.
Other Donors
USAID cooperates with other donors in promoting economic growth and increased cooperation in the region. Major donors involved in promoting regional market integration include the European Union, the United Kingdom, the World Bank, the International Monetary Fund, and the African Development Bank. USAID also collaborates with France and Canada on regional activities for improving trade, communication and information exchange; rail and road efficiency; finance and investment; food security; community-based and transboundary natural resource management; and agricultural research.
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Last Updated on: November 09, 2000 |
