The private sector and regional integration in southern Africa:accelerating opportunities for investment and growth

Abstract

The fundamental role of a robust and vibrant private sector for effective and sustained growth is incontestable. A growing private sector is a major source of wealth, dynamism, competitiveness and knowledge diffusion, all of which lead in many ways to long-term growth and sustainable development. This report includes reviews and a discussion on the state and dynamics of regional integration processes in Southern Africa, with a special emphasis on the role, issues, challenges, and investment potential of the private sector in the integration agenda. The review shows that the pace of integration has been relatively slow in the region. While significant progress has been made leading to the establishment of the Southern Africa Development Community (SADC) Free Trade Area in 2008, the integration agenda has stalled thereafter. The report provides key recommendations for better involvement of the private sector. In particular, it emphasizes the need to consolidate the free trade area by sustaining efforts towards the elimination of existing non-tariff barriers and curtailing the development of new ones; to deepen regional integration in business and professional services markets; and to allow the private sector to participate on an equal and complementary footing with public providers of infrastructure.