Regional Initiative Strategic Development Plan briefing by Department

FOREIGN AFFAIRS PORTFOLIO COMMITTEE
30 May 2007
REGIONAL INITIATIVE STRATEGIC DEVELOPMENT PLAN BRIEFING BY DEPARTMENT

Chairperson: Mr D J Sithole

Documents handed out:
Report on Developments within SADC

SUMMARY:
The Department of Foreign Affairs briefed the Committee on the developments made in the Regional Initiative Strategic Development Plan that SADC had adopted in August 2003. The Development Plan attempted to achieve free trade by 2008; a Customs Union by 2010; a Common Market by 2015 and a Monetary Union by 2016. The presenter gave a brief update on developments and the current situation in several areas. There had been a great political cohesion within the SADC region when it came to articulating their position in other international forums. Madagascar was appointed as a new member state. Movement of trade and free movement of people was identified under a Protocol signed by seven member countries to date. Particular focus areas included energy production in the region, a common set of banking rules and regulations, food security, and the implementation of the Lesotho Protocol on HIV/Aids. A study would be finalised in June on the future position of the Southern African Customs Union. A Monetary Surveillance and Performance Unit (MSPU) would monitor the macro-economic convergence in the region, and report in June 2007. The Science and Technology Msaft protocol would be submitted to the August summit for adoption. Developments had been made in finalising strategic plans related to the control of malaria and tuberculosis. A five year business plan had been elaborated to implement the Maseru declaration on HIV/Aids. On the political front, South Africa had been mandated to mediate talks in Zimbabwe.

Questions by Members included the need for the military base in Botswana, readiness of free trade, export of electricity to Mozambique, the Ingwe project, the gender protocol, and the Pan African parliament. Further questions related to the status of bilateral diplomatic relations, non payment of SADC subscriptions, the relationships between SADC, NEPAD and the Development Fund, and items being manufactured,

MINUTES:
Regional Initiative Strategic Development Plan (RISDP): Report on developments within SADC by Department of Foreign Affairs (DFA)
Ms Jessie (Y) Duarte, Deputy Director-General, Department of Foreign Affairs, noted that the Southern African Development Community (SADC) had adopted the Regional Initiative Strategic Development Plan (RISDP) in August 2003, which indicated an attempt to have a Fixed Preference Agreement (FPA) free trade by early 2008, a Customs Union by 2010, a common market by 2015 and a monetary union by 2016, under-pinned by defence and security co-operatives. Ms Duarte further pointed out that in terms of achievements in poverty, defence, safety and security in the region there had been a great political cohesion within the SADC region when it came to articulating their position in other international forums like the African Union (AU) and sometimes certain aspects of the World Trade Organisation (WTO).

In relation to safety and security, Ms Duarte added that SADC was regarded, by regions outside SADC, as being one of the most stable regions in the African continent, citing the non-existence of interstate conflicts. Ms Duarte carefully outlined that the situation in Zimbabwe could not be categorised, in this context, as a violent state but rather a state with worrying internal affairs.

Moving on to Trade and Economies, Ms Duarte mentioned that Heads Of States in Government in 2006 had decided to appoint their respective Ministers in Trade and in Finance to examine exactly how much progress had been made in terms of moving towards macro-economic convergence; policies that needed to be harmonised; concurrent and financial issues; progress made by Governors of Reserve banks as well as inter-related financial issues, as opposed to integrated financial issues. A new member, State of Madagascar, had been incorporated. In terms of the harmonisation of essential policies - the movement of Trade and the SADC protocol on movement of people - the DDG noted that the SADC Protocol had already been signed by seven member countries to-date. These two policies could not be separated from each other. The Protocol identified the possibility for people to move freely on a visa within the region for a maximum of ninety days.

In terms of regional Infrastructure, Ms Duarte said that the main focus was on energy production in the region Under the topic of service delivery, Ms Duarte said that banking institutions were meeting one another to establish a set of common rules and regulations for the banks, also noting that most of the banks located in South Africa were already up-and-running in SADC countries, with the exception of Madagascar a new entity in the SADC membership.

In respect of food security, Ms Duarte confirmed that a Protocol was already in place for the member states to assist one another in terms of productivity of food. An annual food shortage in some of the member states had led to an anticipated food shortage in Malawi, Zimbabwe and to a certain degree Tanzania. The food shortage in these countries did affect countries like South Africa that had a surplus. She added that the situation in Zimbabwe causes an increase in food prices in member states trying to accommodate and contain this crisis.

On the question of HIV/Aids, Ms Duarte pointed out that progress had been made in that the implementation of the Lesotho Protocol on HIV/Aids had been implemented. Member states were responsible for introducing their own national health programmes. The only monitoring done on this by the SADC unit would be to see to that the minimum requirements for providing medication as well as health-care services were being met.

Insofar as the customs union was concerned, Ms Duarte said that a study would be finalised in June 2007 as Botswana, Namibia, Lesotho and Swaziland (BNLS) enjoyed a dual membership of both Common Market for Eastern and Southern Africa (COMESA) and Southern African Customs Union (SACU). There needed to be discussion on SACU and whether it should become the nucleus of a newly formed Customs Union, or whether there should be an entirely new Customs Union. Botswana, Namibia, Lesotho and Swaziland (the BNLS states) received enormous amounts for their central budgets from their involvement in SACU and were therefore reluctant to give up their positions.

Other developments were the establishment of a Monetary Surveillance and Performance Unit (MSPU) that would monitor the macro-economic convergence in the region, and which would report in June 2007. The Science and Technology Msaft protocol would be submitted to the August summit for adoption. Developments had been made in finalising strategic plans related to the control of malaria and tuberculosis. A five year business plan had been elaborated to implement the Maseru declaration on HIV/Aids. On the political front, the DDG reminded the committee that South Africa had been mandated to mediate talks in Zimbabwe.

Discussion
Mr M Sibande (ANC) agreed with Ms Duarte that SADC as a region is regarded as a no-conflict area but asked why there was a need for a US military base in Botswana.

Ms Duarte explained the historical events and that it was

Ms Duarte replied that this was a historical issue, based upon a bilateral agreement between these countries. The US wants a regional force on the continent and the view is held that it is not conducive to the development of the region. The matter had been raised within member states but will have to be discussed more thoroughly.

Mr Sibande also asked whether the South African government was really ready to allow free trading, noting that it had a negative impact on the country, especially on the traders in the stree.

The DDG responded in saying that SADC-produced products must not be undermined by those from other centres.

Ms P Mulder (FFP) asked why the South African Government was exporting electricity to Mozambique when there was a serious shortage in South Africa.

Ms Duarte responded that it was not true that South Africa sold more than it bought from Mozambique. It was part of a back to back guarantee for energy supply. The Department could provide further information in this regard. She added that all the electricity South Africa bought went into the power pool, that South Africa was warned four years ago that an energy problem will exist in 2007, and that additional energy supplies will be required to meet the national consumption. She further added that an amount had been borrowed from the World Bank for a project to be done through a consortium of all the utility companies, which was to run in two phases. It would commence to upgrade the existing infrastructure for energy supplies to the region and within seven years all the energy needs in the entire region would be complied with. Ms Duarte added that Caborra Bassa also sold to Malawi and Zimbabwe. She added that all electricity bought went into a power pool. Ms Duarte reminded the Committee that it had been forecast that South Africa would have difficulties in 2007.She said that the SADC Development Fund was mooted essentially to assist countries to improve their electricity supply lines.


Mr L B Labuschagne (DA) asked for more clarity on the Ingwe project.

Ms Duarte replied that there were two phases on this project.

Mr L Labushagne (DA) asked Ms Duarte how many of the 23 Protocols were signed or ratified.

Ms Duarte replied that the Department of Foreign Affairs coordinated various protocols involving seventeen government departments. Out of the 23, two had not been signed, one being a legal instrument that there is no need for and the other involving forestry where the relevant Department was reluctant to reduce minimum standards regarding the protection of the environment

Adv Z Madasa(ANC) raised questions on the the gender issue, how the movement was lodged in South Africa and what strategies would be utilised in the region.

Mrs S Camerer (DA) also requested clarification regarding the Msaft Gender Protocol and which Minister activated this and who was dealing with the issue. She furthermore requested a copy of the document to be supplied to the Committee. Clarification was also requested on the 50-50 representation

Ms Duarte replied that the Gender protocol was in Msaft form. and that Minister Pahad and the Minister of Justice were involved The elements agreed upon were that within SADC there should be a thirty percent representivity of women in government structures. The Declaration of the African Union of 2005 indicated that SADC should move to a fifty percent representivity of men and woman. The Msaft would be made available to the Committee and the Protocol needed to be ratified by nine member states to come into effect.
In regard to women's issues, she added that this was essentially a national movement but the idea was to redesign the Pan African Women’s Organisation into a much more powerful continental movement.

Mr D J Sithole (ANC) asked how the South African government could assist the MsC with the development of its parliament.

Adv Z Madasa, in regard to the MsC, asked if there were cooperation agreements and if the Department was coordinating those agreements.

The Chairperson also raised the question what Parliament could do to assist the MsC.

Ms Duarte confirmed that there were extensive agreements between South Africa and the MsC and seventeen other government Departments, coordinated through the DFA. The issue was that departments required more funding for commitment to projects. For the past two years funding for MsC projects was provided through the African Renaissance Fund but the fund was unable to continue.The MsC required much more than bilateral agreements from South Africa for infrastructural development. DFA would be attending to the matter. Parliament can play a positive role within the the MsC It will be discussed in Foreign Affairs how to go about it.

In regard to the development of the MsC parliament, Ms Duarte replied that the Pan African Parliament (PAP) already existed and that it was not in the SADC’s interest to form a new Parliament immediately. It would be preferble to form Parliamentary Forums that would inform delegations and countries in the regions and would strengthen the PAP. If the matter needed to be reviewed it would have to be well constructed, but this issue had not been raised again recently. South Africa’s role in the PAP would be in terms of providing excellent facilities, although a substantial additional funding was required. Member states were not giving enough financial support for the efficient running of the Parliament.

Mr D Gibson(DA) thanked Ms Duarte for a thorough briefing. He asked how the Minister and the Department could, by way of a clear approach, strengthen the Pan African Parliament as well as SADC, and asked if secondment of personnel would be a possibility.

Ms Duarte outlined the problems involved in the secondment of personnel to SADC forums, specifically regarding remuneration of professionals. This challenge would have to be adMsessed The possibility of recruiting previous experienced public service personnel or obtaining persons from the private sector on a contractual basis was being looked into and a response from Cabinet was awaited to recommendations in this regard

Mr Sithole enquired about the status of bilateral diplomatic relations, and SADC’s involvement. He also referred to his meeting with the German Ambassador regarding the non payment of subscriptions, which caused problems in building the infrastructure. Another point raised were problems encountered with the Regional forum

Ms Duarte said that in regard to the payment of subscriptions, only two countries were involved, the MsC and Madagasgar, who had promised to fulfil their commitment before August. Most countries paid on time. She was unsure why the comments were made by the German Ambassador but it would be followed up by the Department. In regard to the diplomatic relations, she noted that South Africa was playing a central economy role and would assist other economies.This could only be achieved through Bilateral and Trade Agreements on a range of issues.

Ms Duarte added that SADC was an economic entity The political relationship of New Economic Partnership for African Development (NEPAD) was used by member countries to interact pertaining to their particular priorities within the region. In regard to the Development Fund, discussions were being held with the Treasury Department and by various Departments collectively to determine what funds could be available


Mr P Ditshetelo (United Democratic Party) raised his concern on what was being manufactured, and where, in the SADC, and where these items were exported. He asked for reports on this to be forwarded by the Department to the Committee.

Ms Duarte responded that there were very few small industries in the region and those were needed to stimulate the economy. Financing was therefore required and there was an the intention to improve the capacity

Mr Gibson referred to a previous visit to Ruacana and enquired about the current status of this facility as an electricity supplier *

Ms Duarte undertook to look into the matter and report back to the Committee.

The meeting was adjourned.