Malawi backs Sadc fund creation
Malawi has backed a proposal to establish a regional development fund within the Southern Africa Development Community (Sadc). The fund is meant to mobilise resources to finance regional and infrastructural programmes.
This follows a suggestion by Angolan Finance Minister and chairperson of the committee of finance and investment ministers Carlos Alberto Lopes, who on Tuesday advocated for creation of financial instruments for developing the region.
Lopes was speaking during a Sadc meeting of finance and investment ministers in Maputo, Mozambique.
In an interview at the weekend, Finance Minister Dr. Ken Lipenga said Malawi has supported the idea hatched in Maputo to have a regional development bank which will widen the region’s resource base.
“Malawi through the minister of finance, supported the Sadc Resource Mobilisation Strategy which seeks to broaden the resource base through channels such as the Sadc Regional Development Fund, public private partnerships (PPPs) and expanding links with emerging market economies such as China, India and Brazil,†he said.
Lipenga said Malawi believes that the regional bank will help to create a financial mechanism to mobilise resources from member States, donors and private sector to support regional integration and development.
The Finance Minister also said the fund is designed to be an instrument of addressing the region’s infrastructure, industrialisation, adjustment, integration and social challenges.
“Malawi and most member States endorsed the establishment of the fund on the principles of fairness and equal voice as enshrined in the Sadc Treaty,†said the minister.
On progress regarding the consolidation of the status of implementation of the Sadc Free Trade Area (FTA), the minister said Malawi, like most member States, has substantially implemented her outstanding commitments towards realising the FTA.
He said the country has also phased down most of its tariff lines and hinted that Malawi has almost completed the Sadc tariff liberalisation.
With regard to financial markets development in the region, Lipenga said Malawi has also supported the initiative to establish a framework for cooperation and coordination between central banks.
During the meeting, the Angolan Finance Minister also defended the need for common or complementary projects within Sadc to be sufficient, integrated, efficient and profit-making to support the region’s economic and social development.
The conclusions of the meeting were submitted to the Council of Ministers session convened on Wednesday and Thursday, ahead of the Summit of Sadc Heads of State and Government which took place in Maputo.
