Southern Focus: Partnering the SADC PDF Print E-mail
Monday, 06 December 2010 05:11

Southern Focus: Partnering the SADC

Dr. Suresh Kumar

Africa Quarterly, Vol.45, No.1, Sp. Edition, Nov. 2005, pp.52-58.

Introduction

The 25th anniversary of Southern African Development Community (SADC) reflects the enhanced cooperation and building a stronger economy in terms of India-SADC relations. Most of SADC members secured successful elections that give a clear expression of the region’s commitment to democracy. SADC is working towards the harmonization of its macroeconomic policies in order to create the necessary conditions for integration of their economies at both the regional and global levels.


Southern Africa Development Coordination (SADCC) was formed in Lusaka on April 1st, 1980 and it was signed by Angola, Botswana, Lesotho, Malawi, Mozambique, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe. Democratic Republic of Congo (1998), Mauritius (1995), Namibia and South Africa after its independence joined SADCC in later years. Madagascar accession finalized in August Summit 2005 while the application of Rwanda will be considered soon.  SADCC took the shape of SADC on 17th August 1992 in Windhoek with the aim of a regional community, which will safeguard economic well-being, improvement of the standards of living and quality of life, freedom and social justice, and peace & security for the peoples of Southern Africa. SADC during the cold war period played vibrant political role in the struggle against apartheid in South Africa liberation struggle in Southern Africa and establishment of democratic governance in this region. This period witnessed the solidarity, unity and brotherhood among the SADC members on the one hand and worked on socio-economic fronts like poverty eradication, ensuring peace and prosperity. Today, the development community agreed that underdevelopment, exploitation, deprivation and backwardness in Southern Africa would be overcome through economic cooperation and integration. One of the major aim to achieve SADC objectives is to “secure international understanding, cooperation and support and mobilize the inflow of public and private resources into the region”.1 

Today, the new market economy influenced the SADC as a regional bloc. SADC is moving ahead with the objectives to build regional community, peace, security, democratic governance and economic integration. The Chairperson of SADC and Mauritius Prime Minister writes, “I am confident that the SADC vision, the Regional Indicative Strategic Development Plan and the Strategic Indicative Plan of the Organ provide us with a road map for the development of our community over the next decade. As we re-engineer our own regional integration process, we also need to foster better linkages with the other regional economic communities in consonance with the African Union’s vision, Mission and Strategic Plan. --- Our common destiny is also linked to the closeness of the relations we seek to establish with the rest of the world, beyond our continent. In this respect, I am deeply grateful to India for the commitment it has shown in helping us achieves our key objectives in a spirit of Afro-Asian friendship, solidarity and partnership. ---India and SADC are bound by common history and a shared vision of the future”. 2

Along with it, SADC has set up an Organ on ‘Politics, Defence and Security Cooperation’ under the leadership of Mr. Thabo Mbeki, President of the Republic of South Africa. It has energized continental mechanisms for conflict prevention, management and resolution. To promote real democracy in this region, national elections are conducted under ‘Governing Democratic Election’ adopted at the SADC Summit in Mauritius in the year 2004.  

SADC on economic front is setting up of legal frameworks providing a wide array of fiscal and non-fiscal incentives to new business, duty free on raw materials and equipment and encourage joint venture. SADC established different centers to promote trade like Zimbabwe Investment Center, Namibian Investment Center and Enterprise Mauritius. SADC provides institutional guarantee under Multilateral Investment Guarantee Agency (MIGA) to attract investors in investing their money in any SADC member states. SADC implemented the liberalization of intra-regional trade on September 1st, 2000 and decided to establish SADC as Free Trade Area by 2008.

Dr. A.P.J. Abdul Kalam addressed the Parliament of South Africa on 15th September 2004 says, “In order to realize developed India by 2020, five key areas have been identified for an integrated action: (1) Agriculture and food processing – with a target of 400 million tons per annum of food-grains as well as other with different targets and agricultural products. Agriculture with the second green revolution and agro food processing would bring food security and prosperity to rural people and speed up the economic growth (2) Education and Healthcare – aiming to increase the employment potential leading to social security and population control (3) Infrastructure development including reliable and quality electric power for all parts of the country, which is vital for all the core sectors (4) Information and Communication Technology is one of our core competencies. It can help industry and commerce, promote education in remote areas, create massive employment and provide healthcare to remote areas, and (5) Critical technologies and strategic industries- the progress in nuclear, space, ocean, defence and other frontier technologies will provide sustained growth and self-reliance for the nation. - - -Foreign investors and partners too have an important role to play. - - - It is all the more important that friendly countries like us share our expertise and core strengths to speed up our own growth.” 3

 

Sustainable Development and SADC
The SADC Summit Declaration, May 2004, on Agriculture and Food Security, reaffirms its commitment to ensure an accelerated agricultural development and sustainable food securing in accordance with the United Nations Millennium Development Goals, the Declaration of the World Food Summit 2002 and the SADC 15 years Regional Indicative Strategic Development Plan (RISDP).4  

The SADC Summit Declaration, May 2004, on Agriculture and Food Security, reaffirms its commitment to ensure an accelerated agricultural development and sustainable food security.

Angola subsistence agriculture is the basis for 85 percent population. DR Congo offers foreign investment in food and related products sector. Lesotho economy is primarily based on subsistence agriculture invites the investors in food processing and other similar industries. Malawi predominantly an agricultural economy having 90 percent of population living in rural areas, and accounted for nearly 40 percent of GDP and 88 percent of export revenues. Mauritius is known for its sugarcane cultivation covers 90 percent of cultivated land and 32 percent export earnings of total merchandise trade. Subsistence agriculture in Mozambique and Namibia involve a major workforce in it for their livelihood. Food and related products and agro processing are the priority area of development in South Africa economy. Swaziland, a land locked country, occupies more than 80 percent of the population based on subsistence agriculture. Tanzania’s economy depends heavily on agriculture, employs 80 percent of workforce. Only 15 percent of Zambia’s 60 million hectares of arable land is presently under cultivation. Zimbabwe, an agricultural country needs agriculture technology for sustainable development having a vast scope to invest in agriculture sector. 

In addition to it, SADC promotes the tourism industry through the Regional Tourism Organization of Southern Africa (RETOSA) and announced ‘Okavango Project’  (OUZFIT) consists of Angola, Botswana, Namibia, Zambia and Zimbabwe. Moreover, the market economy is equally taken care by SADC. Bayano Valy writes, “SADC stock exchanges have resolved to concentrate on loose cooperation after clarifying the sticky issues that seemed to slow down progress towards an integrated real-time network of the region’s national bourses by 2006. The capital market is one area where integration is yet to be realized and the chiefs of the region’s bourses are in the process of building closer coloration, which will eventually lead to integration of stock exchanges in the region.”5

 

SADC Sustainable Development and India’s Response
It is the right time to focus agricultural policies in SADC region and share its vital role in strengthening their agricultural technique and food output value. India’s agro-industrial sector, water management and irrigation technique, non-farm rural employment sector and rural development of India need to strengthen in this region to develop their agricultural growth.  India is a country, which faces natural calamities such as droughts and floods. There are many challenges; for example 70% of India’s and nearly same in SADC region is dry land, which one need to focus on. But that doesn't mean that one neglect industries also.  SADC has so much potential in minimal resources that can be exploited. SADC is on the right path and has expressed very important areas of reforms. Concentration on those areas of good competence is very important to overcome problems like poverty, food crisis and underdevelopment. SADC (85%) and Indian (70%) population are related to agriculture and there is a need to re-focus on agriculture. Indo-SAADC has rich resources, good climate and water resources. The concentration on agriculture along with industries requires a sustainable policy in this region.

It is the right time to focus agricultural policies in SADC region and share its vital role in strengthening their agricultural technique and food output value. India’s agro-industrial sector, water management and irrigation technique, non-farm rural employment sector and rural development of India need to strengthen in this region to develop their agricultural growth.

Today, the private sector is the backbone of the Indian economy and accounts for 70% of the GDP. Agriculture, horticulture, floriculture, sea food industries, agro industries, agro-based industries and food industries are in the private sector that includes small and large scale industries. India has almost 3.57 million units in the small-scale sector. They employ about 20 million people and contribute 165 billion USD to the Indian economy. The role of private sector is substantial in the growth of sustainable economic development.

With a view to significantly enhance India’s trade with Africa, the Govt. of India launched an integrated programme “Focus Africa” from the year 2002-03. The main objective of the programme is to increase interactions between the two regions by identifying the areas of bilateral trade and investment. The “Focus Africa” programme emphasized on seven major trading partners of the region, namely Ethiopia, Nigeria, South Africa, Mauritius, Kenya, Tanzania and Ghana, which together account for around 69% of India’s total bilateral trade with the sub-Saharan Africa region.6 The CII Africa Committee has the mandate to further business co-operation that helps establish a symbiotic relationship between India and emerging African economies. The Committee through wide ranging activities,

·    Develop strategies to enhance economic, industrial & trade relations,

·    Identifies areas of mutual co-operation,

·    Highlights issues of concern and evolves suitable policy recommendations,

·    Frames guidelines & checklists for different forms of industrial co-operation, and

·    Represents industry sectors seeking greater mutual co-operation.7

CII has Institutional Agreements with 32 counterpart organizations in 18 African countries with the objective of facilitating exchange of information and promoting business interests of Indian and African Industry. The Committee pursues a three point agenda

-                     Focus on core issues to industry

-                     Interaction with African Missions in India & Indian Missions in Africa

-                     Partner and assist the Govt. of India in its specific Africa related initiatives8

A bi-monthly electronic newsletter widely circulated to Indian industry, CII’s MOU partners in Africa, Indian Missions in Africa, African Missions in India, key policy makers in India and Africa to update information on economic, industrial and political scenario in Africa, sectoral information for Industrial and trade Cooperation, Business opportunities for both African and Indian companies and Indo- African trade and Investment data. CII has developed an integrated strategy for promoting Indian exports into Africa, to supplement “Focus Africa” programme of the Ministry of Commerce & Industry, India that involves

·        Identifying focus markets in Africa

·        Identifying products with potential for export to focus markets

·        Seminars/ workshops for Export Opportunities

·        Trade delegations to focus countries

·        Participation in sector specific fairs in focus countries

·        Made in India/ Enterprise Shows.9

Export-Import Bank of India (EXIM India) operates a number of financing and support programmes to facilitate and promote India’s trade and Investment in the African region. The EXIM Bank operates a programme to support overseas investment by Indian promoter through joint ventures/ wholly owned subsidies. Such support includes finance in select cases, directs participation in equity along with Indian promoter, to set up such ventures overseas.10 With a view to enhancing competitiveness of India exporters, as also identifying Indian trade and investment potential, EXIM India periodically conducts research studies on countries/regions/sectors/ industry and on macro-economic issues relating to international trade and finance. EXIM India has also come out with a bilingual (English and French) magazine titled “Indo-African Business” which focuses on bilateral trade and investment between India and Africa. The magazine addresses the business information needs of companies who are interested in trade with the African region.  With a view to promoting and facilitating bilateral trade with countries in the Africa region, EXIM India works closely with Govt. of India. It has a representative office in Johannesburg, South Africa, which plays a role in facilitating economic cooperation with the African region, and is closely associated with several other Banks’ initiatives.     

Since food security contains both supply (production) and demand (income) dimensions, there is a need to focus on food production. In this regard, a key policy research identifies the combination of technologies and institutions, which will aspire to availability and access to food by local communities and regions in Ethiopia. The prime movers of agricultural development (public and private investment) need to involve in agricultural production and supply to ensure food availability. it includes Indo-SADC investments on: 

1.      New technology and agricultural research,

2.      Human capital and managerial skills produced by investments in schools, training, and on-the-job experience,

3.      Physical capital investments in rural infrastructure such as irrigation, dams and roads and

4.      Farmer support institutions such as marketing, credit, and extension services.



It is important to transform (like India agriculture) subsistence agriculture to science-based intensive agriculture by adopting promising indigenous practices combined with selective use of improved technologies such as inorganic fertilizer, better equipment, improved seeds, and improved soil conservation and agro forestry practices. Improved technologies and use of farm capital is the most promising path to achieve the goals of greater productivity, food security, and sustainability in most agro-climate zones. Over all, the challenge for eradicating absolute poverty in this region is best achieved by pursuing an economic growth strategy that transforms the currently low productivity agricultural sector.

Africa Regional Organizations and India’s Economic Relations
India’s economic relation shares with all the regional organizations in Africa as nearly all these organizations are inter related as shown in Figure-1.

Indo-South Africa derived an important initiative is the commencement of talks for India – South African Customs Union (SACU) from Preferential Trade Agreement (PTA) eventually leading to a Free Trade Agreement (FTA). The five member states of SACU (Botswana, Lesotho, Namibia, South Africa and Swaziland) and India have robust trade relations, with the trade turnover (i.e. exports plus imports) increasing from US$ 900 million in 1997-98 to US $ 2500 million in 2003-04.11   India has strongly supported the objectives of New Partnership for Africa’s Development (NEPAD). The Govt. of India committed US $ 200 million have been committed for this purpose to be utilized through credit lines grants etc.12 According to NEPAD, ‘Africa needs a growth rate of 6-8 percent to reach its cherished Millennium Development Goals; and to achieve this rate of growth as a continual basis over a long run, impressive foreign direct investment inflows are needed. Many African Countries have undergone significant economic reforms and liberalized their markets and trade, and widened the scope of operation of their private sector in tune with the winds of globalization”.13

President Y. K. Museveni, Chairman of COMESA writes, “we are even addressing the issue of excessive balkanization of the continent (with 53 states compared to 3 in North America) in a variety of ways, including economic blocs like SADC, COMSA and ECOWAS. The world, therefore, needs to encourage these positive trends in Africa by opening up their markets on a quota free, tariff – free basis.”14. There are great opportunities that ‘COMESA offers for Indian businessman. The trade and market integration is bound to have spill – over trade effects of foreign investment in the promising sectors such as textiles and apparels, agriculture and infrastructure, particularly financial infrastructure.15

East Africa Community (EAC) is a group of three major countries of east Africa namely Uganda, Tanzania and Kenya. EAC Custom Union signed on 1st January 2005 and India looks forward to it. India three-band Common External Tariff structure of 0%, 10% and 25% will apply to goods imported into East Africa. The preferential treatment under COMESA and SADC shall continue to apply during the transition period.

 

India-SADC Relations
It is indeed a reflection of India confidence in the economic potential of the SADC region, that a Memorandum of Understanding (MOU) on economic cooperation was signed between India and SADC in October 1997. This was a comprehensive agreement that envisages cooperation in diverse sectors such as agriculture, health, economic development, water resource management, human resource development, promotion of small and medium enterprises, communications, commerce, banking, trade and investment. SADC Chairperson (Angola) and Minister of External Affairs, India signed to setting up of a SADC-India Forum on 17th July 2003 and identified the focus area like Agriculture, Small and Medium Scale Industries, Pharmaceuticals and Human Resource Development. The forth coming SADC-India Forum dialogue will provide true proposal for the furtherance of the development goals of the SADC region. It will no doubt strengthen the existing relations and pave the way for more and maximum cooperation in the mutual interest of SADC and India. It is mentioned that ‘the forum will provide a platform for SADC and India to engage in policy dialogue, agree on priority areas of cooperation and formally established cooperation arrangements between SADC and India in the spirit of South-South Cooperation. The proposed areas of cooperation are agriculture, trade and investment, water resources management, promotion of small and medium scale industries and entrepreneurial development, drugs and pharmaceuticals, human resources development and Information and Technology’. 16

The Government of India emphasized by saying, “We look forward to increased cooperation with the member countries of SADC, both bilaterally and multilaterally, as a part of our policy of fostering close links with Africa as a whole and are confident that enhanced cooperation between SADC and India will yield rich dividends for both the sides’.17  Mr. K. Natwar Singh, Minister of External Affairs, India shares on the 25th anniversary of the SADC and writes, “The SADC constitutes one of the most important regional organizations in Africa and we attach utmost importance to further strengthening our relationship and ties with it in different sectors. The main objectives for which the SADC was founded include, raising the standard of living of the people of this region, improving the quality of their life and promotion of peace and security. These are the ideals, which we in India too fully share and keep before us in our own march towards development.18 The MEA, India elaborates on economic issues and says, “India’s commercial and economic links with SADC have registered a marked improvement during recent years. --- There are undoubtedly ample opportunities for further expanding the interaction between India and SADC in commercial, economic and other arenas. India also appreciates the consistent support received by it from SADC member’s countries in multilateral fora on issues of vital concern to it”.19

The MEA, India elaborates on economic issues and says, “India’s commercial and economic links with SADC have registered a marked improvement during recent years.

India hopes that there is a possibility to move forward to conclude a Preferential Trade Agreement (PTA) with SADC and then move gradually to Free Trade Agreement (FTA). There is great deal of complementarities between SADC countries, which are abundant in mineral wealth and raw materials and India has the necessary pool of technology, experience and entrepreneurs. Table-1 elaborated the major product description of imports from India and Table-2 emphasizes the potential of major product description of exports from India to SADC region.  It is the right time to focus agricultural policies in SADC region and share its vital role in strengthening their agricultural technique and food output value. India’s agro-industrial sector, water management and irrigation technique, non-farm rural employment sector and rural development of India need to strengthen in this region to develop their agricultural growth.

Table-1 Major Products of Imports from India
Product Description

1. Botswana

Cotton yarn excluding thread, Articles of rubber, industrial diamonds, Textile/Leather machinery, paper/Paperboard, Medicaments, Optical fibers, Printed books & globes, Piston Engines, Special industrial machinery.

2. Lesotho

Goods vehicles, medicaments, Portland Cement, Soap, Wooden furniture, Cigarettes, Footwear, Clothing accessories, Blankets traveling rugs, Motor vehicles parts, Cotton fabrics, Woven.

3. Namibia

Iron/Steel/Tube, Special industrial machinery, Offset Printing machinery, Medicaments, Optical fibers, Motorcycles/cycles, Piston engines, Other chemical elements, Electrical circuit equipment, Hydrocarbons/derivatives.

4. South Africa

Rice, leather, Medicaments, Diamonds, Spices, Textile Yarn, Motor vehicle parts & accessories, Dyeing/tanning/color materials, Pharmaceutical Product, Household linens.

5. Swaziland

India’s share in Swaziland’s total imports is negligible that shows the tremendous trade potential exit between the two countries.



Source: Compiled from ITC, Geneva, Trade Analysis System, 2004.

The EXIM Bank study delineates that India has robust trade relations with the SADC countries having trade turnover more than doubling form US $ 1.5 billion in 1997-98 to US $ 3.4 billion in 2003-04 and India’s trade balance however, has changed from a surplus of US $ 68 million to a deficit of US $ 81.8 million over the same period.20 This is primarily almost a three-fold increase of India imports from SADC over the period (Table-1), while exports have not varied significantly over the years. South Africa is the largest trading partner among the SADC countries, accounting for more than 42% of total exports to SADC.

All most all major South African companies have invested heavily in other SADC countries, elsewhere in Africa and indeed globally, although South Africa remains an important business centre for all of them. De Beers has managed Botswana’s diamond mining industry since 1969 through Debswana, a joint venture with the local government. Zimbabwe is the second-largest SADC economy, yet even before the emergence of its current severe political uncertainties, it never succeeded in attracting FDI flows comparable to those entering the other countries. South Africa’s participation in the SADC comprising 14 Sub-Saharan African countries, allows access to a market of approximately 140- million, which is expected to grow at an annual rate of around 3%. South Africa has also turned its attention to pursuing agreements for South-South cooperation through Indian, Brazil and South Africa (IBSA) forum. This will facilitate greater trade of SADC with South America and the East in a long run process. South Africa as a leader of SADC has massed a free trade offer to its fellow members to address the trade imbalances in the region on the one hand and offered SADC free trade agreement. These offers have been ratified by South Africa and Mauritius.

Table-2 Potential Items of Export from India
Product Description

1.Botswana

Passenger transport vehicles, Portland Cement, Medicaments, metal structures & parts,  Printed Looks, globes etc, Motor Vehicle parts, Wooden furniture, Sugars, beat or cane, raw, insulated wire/optical fiber, milled and semi-milled rice, Electrical circuit equipment accessories, Diamonds, Rubber tyres/treads, soap.

2. Lesotho

Goods vehicles, Medicaments, Port and Cement, Soap, wooden furniture, cigarettes, Footwear, Clothing accessories, Blankets, Traveling Rugs, Motor Vehicles, Hand/Machine tools, Rubber Tyres/treads, Cut paper/board, Sewing Machine parts, Cotton Fabrics, Woven.

3. Namibia

Passenger transport vehicles, Ships/boats, Motor Vehicle parts, Medicaments, Goods vehicles, Tanks/Casks/drums, Office Equipment accessories, Textiles/Leather machinery, Metal Structures & parts, Portland Cement, Aircraft Parts, Wires & cables, Antibiotics, Iron & Steel articles, Diamonds.

4.SouthAfrica

Passenger transport vehicles, Medical instruments, Electrical circuit equipment, Special industrial machinery, Ships/boats, Motor Vehicle parts, Medicaments, Goods vehicles, Telecommunications equipment, Musical instruments/records, Paper/paper board, Milled Rice, Computer equipment, internal Combustion engines, Oilcake, oil seed residue, Printed matter, Chemical Products, Office Equipment accessories.

5. Swaziland

Knit/crochet fabrics, Passenger transport vehicles, Goods vehicles, Motor Vehicle parts, Wheat, TV, Radio transmitters, Portland Cement, Plastic Containers, Medicaments, Food Processing machines, Sweetened Concentrated milk, Cream, Frozen bovine meat, Wheeled tractors, Soap, Wooden furniture.

Source: Compiled from ITC, Geneva, Trade Analysis System, 2004.

“A business delegation that visited South Africa and report prepared by Southern India Chamber of Commerce and Industry mentioned that there is a huge market for Indian products and tremendous opportunities for Indian entrepreneurs”.21 Earlier, India Prime Minister in March 2005 visited Mauritius and signed the bilateral agreements. Now, there is a possibility of PTA and then move to FTA between Mauritius and India keeping the beneficial measures in mind. By doing so, India will get time to analyze and reassess the decision. India-SADC in this series will be a major task to initiates free trade agreement.   Mozambican Prime Minister Luisa Diogo, who holds the portfolio of Planning and Finance Minister, said: “The regionalism of capital markets cannot be limited only to SADC level. There was a need to find partnerships within the context of continental initiatives like the New Partnership for Africa’s Development (NEPAD), with a view to attract more players to Sub-Saharan Africa.22

More over, SADC countries offer opportunities in terms of Foreign Direct Investment (FDI). Tourism, Pharmaceuticals, electronics, computer software and accessories, information technology related products, financial services and textiles hold large potential for Indian investors. Table-1 and 2 shows the existing trade relations with SADC region particularly major products items of exports from India.  

Conclusion

Africa as a whole, for Indian business, is still a largely uncharted territory. The existing level of business ties between India and Africa does not reflect the full potential. The consolidation of Indo-Africa economic co-operation, bilateral or multilateral, can usher in a new era of South-south co-operation. Both the design and implementation of the SADC Trade Protocol suffers from some critical weaknesses. The differentiation and back-loading of tariff reduction schedules; restrictive rules of origin and excessive concerns about the costs and risks of intra-regional tariff liberalization as well as the slow pace of implementation of agreed commitments are likely to undermine the potential benefits to be  gained from the Trade Protocol. All SADC countries are facing the challenge of adjusting their economies to the rapid pace of globalization and the progressive opening up of national economies to trade and factor markets. The smallness of the SADC market does not serve as a sufficient base to develop industries that can compete in wider markets behind trade barriers. International trade and openness to it, has to play an important role in the region’s strategy to stimulate growth and export competitiveness. Paul Kalenga writes, “Four things should be done to prevent the Trade Protocol from being yet another failed regional integration instrument in Africa: fast-track the tariff liberalization process so that by 2008 substantial intra-SADC trade is duty free; design a clear program to eliminate non-tariff barriers to trade within a transparent rules-based framework; reform the SADC rules of origin towards the promotion of international competitiveness and investment as well as moving towards the reduction and harmonization of external levels of protection. This will facilitate the region’s gradual and smooth integration into the world economy.23

All SADC countries are facing the challenge of adjusting their economies to the rapid pace of globalization and the progressive opening up of national economies to trade and factor markets.

SADC countries’ principal exports continue to be sold in world markets. There are limited prospects in the short- to medium term of increased exports to SADC despite preferential market access (except for South Africa). The entire SADC regional market is very small by international standards with aggregate gross domestic product (GDP) of about US$ 187.7 billion in 2000, of which South Africa contributes over 70%. 24 This limits the scope for an inward-looking regional trade strategy. Therefore, for many SADC members (if not all) the SADC Trade Protocol is only useful if it is used as a platform for improving global competitiveness.

Overall, there are mainly three barriers to move forward Indo-SADC economic cooperation.

1.                  The non-uniform trade regulations in the SADC countries in many cases proved to be a major stumbling     block for increased intra-regional trade.

2.                  The average poor transport infrastructure in the region nullified the geographical advantage of the region.

3.                  The poor communication infrastructure is adversely affecting trade relations in the SADC region.

As a result, India and others are having lack of information about the regional market both in terms of demand and supply conditions.

Exim Bank agreed to help SADC region during the Conclave on India-Africa Project Partnership organized by Ministry of Commerce & Industry and MEA, India, CII, EXIM India on March 2-4, 2005 to strengthen the trade on the preferential line of credit.

To sum up, there is a possibility of PTA and then move to FTA keeping the beneficial measures in mind. The need to avoid the Double Taxation Avoidance is felt and there is possibility to remove this barrier. FTA between Indo-SADC will enhance the level of bilateral trade. Thus it was agreed to adopt a longer-term approach to the idea of an FTA and recommend implementation of measures to expand Indian trade and SADC on a priority basis. The emphasis should be on trade creation and minimizing trade diversion to maximize welfare.  Exim Bank agreed to help SADC region during the Conclave on India-Africa Project Partnership organized by Ministry of Commerce & Industry and MEA, India, CII, EXIM India on March 2-4, 2005 to strengthen the trade on the preferential line of credit.

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REFERENCES

1.                  Article 5, Objectives, Southern African Development Community Charter, 1980.

2.                  SADC AT 25, The High Commission of Mauritius, Delhi, August 2005, p.4.

3.                  Partnership 2005, South Africa & India, South African High Commission, New Delhi, September 2005, p. 31

4.                 Ibid, p.15.

5.                  Bayano Valy, “SADC Bourses Pave Way for Gradual Integration”, Review of African Political Economy, Roape No100, 2004, Carfax Publishing, UK, p.376.

6.                  CII India-Africa Project Partnership 2005, Background paper, Delhi, p.26.

7.                  Ibid, p.11.

8.                  Ibid, p.25

9.                  Ibid, p.26

10.              Ibid.

11.              Southern African Custom Union (SACU) A Study of India’s Trade and Investment Potential, working Paper Series Paper No.8, Export- Import Bank of India, Delhi, February 2005, p.2)

12.              Partnership 2005, South Africa & India, South African High Commission, New Delhi, September 2005, p. 17

13.              African Digest, Third Quarter, 2005, Indo-Africa society, Delhi, pp. 37-38

14.              COMESA – India Relations, Indo-African society, August 2005, p. 6

15.              Ibid, p.19.

16.             SADC AT 25, op.cit, p.6.

17.             Ibid, p.5.

18.            Ibid.

19.            Ibid.

20.              For More, India-Africa Project Partnership, 2-4th March 2005, CII, Delhi.

21.             The Hindu, Delhi, August 1, 2005.

22.              Bayano Valy, op.cit,  p.377.

23.              Paul Kalenga, Implementation of the SADC Trade Protocol: Some Reflections, World Bank Policy Research Working Paper 3090, June 2003.

24.              SADC, Annual Documents, 2003.