Story by Tichaona Kurewa
Victoria Falls – THE week-long Southern African Development Community (SADC) Committee of Ministers of Finance and Investment has ended in Victoria Falls this Thursday, with Member States implored to swiftly ratify the protocol establishing the Regional Development Fund (RDF).
SADC member states are working tirelessly to operationalise the fund through a phased approach, starting with the proof-of-concept stage.
The urgency of operationalising the RDF is heightened by shifting geopolitical developments, declining international financial flows, and new tariffs imposed by the United States.
A crucial step in establishing the RDF is the ratification of the 2016 Agreement, which has so far been ratified by one out of 16 SADC member states, Angola.
“As a country, Zimbabwe is committed to fast-tracking the ratification of the 2016 Agreement on the operationalisation of the SADC Regional Development Fund. We also encourage all member states to expedite the signature and ratification of this crucial agreement. Its entry into force will signal our collective dedication to regional economic integration and strengthen our capacity to implement the fund effectively,” SADC Committee of Ministers of Finance chairperson, Professor Mthuli Ncube said.
The SADC secretariat gave an update on the establishment of RDF.
“I have engaged the African Development Bank Group to mobilise resources for the operationalisation of Stage 1: Proof of Concept phase, to cover operationalisation and resource mobilisation as guided by the Ministers. A Project Proposal Note has also been prepared and submitted to the Bank to access resources from the Targeted Support Window (Pillar III) of the Transition Support Facility (TSF).
” The amount under this proposal is 5 million Units of Account. Looking ahead, a second request for additional resources, targeting US$10 million, is scheduled for submission to the Bank in July 2025, aligned with the first call for proposals of the ADF-17,” explained SADC executive secretary, His Excellency Elias Magosi.
The RDF aims to establish a regional financing mechanism to promote economic development and sustainable growth, focusing on infrastructure, industrial development, regional integration, economic adjustment and social development.
It is seen as a key strategy to enhance the region’s capacity to finance development initiatives independently.
