Recognising the benefits of a regional power pool that would reduce investment and operating costs of electricity generation while maximising reliability, SADC passed the Southern African Power Pool (SAPP) Inter-Utility Memorandum of Understanding on 7th December 1994. This Memorandum of Understanding establishes an official cooperation among SADC Member States and the extra-SADC nation of Zaire for sharing the costs and benefits of energy generation.
Along with the rights and obligations of members in the Southern African Power Pool, the Memorandum of Understanding sets out conditions for membership and agreements with non-member countries. It also specifies the power pool’s operating principles, objectives, and organisational structure, stipulating a system of committees and subcommittees dedicated to aspects of power generation – operations, planning, environmental effects, technical and administrative work – and naming each group’s duties, schedule of meetings, and decision-making procedures.