“This policy brief examines trade patterns in the Southern African Development
Community (SADC) over the period 1980 to 1997. Perhaps the most notable conclusion about trade trends in the region is the rather disturbing lack of trend. Trade patterns over the last decade have shown some
significant fluctuations, particularly in the growth of non-food consumer goods
imports and the growth of capital goods imports amongst others. Some stabilisation has been apparent in primary intermediate goods imports, manufactured goods imports and merchandise exports. The growth in the
agricultural sector – although modest, is encouraging and South Africa appears to
dominate the region in terms of agricultural exports. Increasing political stability in
the region will also play an important role in attracting the foreign direct investment
so vital to sustained economic growth
Perhaps the greatest opportunities for trade in the region lie in the exploitation of
comparative advantages to create supply chains. SACU has realized much of its
trade potential, potential which many non-SACU SADC countries have yet to realize.
The formation of supply chains across an integrated trading area will facilitate the
transfer of skills and assist the region as a whole. This is one of the reasons why
South Africa’s relative economic strength should not be viewed as a threat, but
rather as an asset to the region.”
