Godongwana Urges SADC to Build Stronger Regional Economy
Godongwana also warned that falling international development assistance presents a growing challenge for Sub-Saharan Africa
Devdiscourse News Desk|Pretoria|Updated: 02-07-2026 22:17 IST | Created: 02-07-2026 22:17 IST
- Country:
- South Africa
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South African Finance Minister Enoch Godongwana has urged Southern African Development Community (SADC) member states to strengthen regional cooperation and adopt coordinated economic policies to better withstand growing global economic uncertainty. Speaking at the SADC Committee of Ministers of Finance and Investment meeting in Harare, Zimbabwe, Godongwana said the region must position itself as a competitive producer by working together to reduce vulnerability to external economic shocks. He said SADC countries should focus on using their critical mineral resources to drive industrialisation, improve food security through joint agricultural production and agro-processing, expand intra-regional trade and strengthen transport infrastructure and supply chains.
Focus on implementation and regional integration
Godongwana stressed that achieving these goals will require strong political leadership, closer institutional cooperation and a greater focus on implementing agreed policies rather than simply making commitments. He identified several priority areas, including trade facilitation reforms, the development of transport and logistics corridors, and improving digital payment systems across the region. He also called for lower remittance costs to make cross-border financial transactions more affordable for citizens and businesses.
According to the minister, these practical measures would help improve regional competitiveness while creating a stronger and more integrated SADC economy
Declining aid requires new financing models
Godongwana also warned that falling international development assistance presents a growing challenge for Sub-Saharan Africa. He said changing global funding patterns require SADC countries to adopt more sustainable financing strategies by expanding the use of blended finance, public-private partnerships (PPPs) and greater private sector investment to offset declining donor support
Citing International Monetary Fund (IMF) estimates, the minister said bilateral aid to developing countries could decline by 16 to 28 per cent from 2025. He noted that the reductions are being driven by donor countries rather than the performance of recipient nations and described the situation as a potentially long-term structural challenge
Godongwana warned that the poorest and most vulnerable countries are likely to be affected the most, making regional cooperation and diversifiedble economic growth
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