Macroeconomic convergence in South African Development Community (SADC)

Abstract

Southern African Development Community (SADC) has set its member countries four macro-economic convergence targets (Rate of inflation, the ratio of the budget deficit to GDP, the ratio of public and publicly guaranteed debt to GDP taking into account the debt sustainability index, and the balance and structure of the current account) as outlined in Finance and Investment Protocol. These are benchmarks that are used to assess a trend towards more integration and unification of the region. The analysis also attempts to highlight some differences in some of the sub-groupings within SADC namely the Common Monetary Area (CMA) and the Southern African Customs Union (SACU).