Strengthening Regional Financial Integration: SADC Ministers Advance Investment Agenda and Development Fund

12 June 2025, Gaborone, Botswana: The Meeting of Ministers of Finance and Investment of the Southern African Development Community (SADC) convened from 12–13 June 2025 in Victoria Falls, Republic of Zimbabwe. The Ministers applauded significant progress in the implementation of Stage 1 of the SADC Regional Development Fund (RDF), particularly on resource mobilisation efforts and operational readiness.

The African Development Bank (AfDB) is supporting SADC Member States in mobilising financial resources for equity participation in the RDF through the African Development Fund (ADF) and African Development Bank (ADB) financing windows. Member States eligible for ADF funding are targeting the ADF-17 Call for Proposals in July 2025, as well as accessing the Transition Support Facility (TSF), specifically its targeted Support Window (Pillar III). AfDB President, Dr. Akinwumi A. Adesina, reaffirmed the Bank’s commitment to the successful implementation of Phase 1 of the RDF, which aims to fund regional infrastructure, industrial development, economic integration, and disaster risk financing.

Ministers further welcomed the revised Strategic Plan (2024–2029) of the SADC Development Finance Resource Centre (DFRC), which has been realigned with its foundational mandate. The strategy addresses institutional challenges such as financial sustainability and strategic positioning. It is built on four core pillars: capacity building, policy research and advocacy, project preparation, and resource mobilisation.

The Meeting also assessed the operations of the SADC Project Preparation and Development Facility (PPDF), acknowledged Germany’s continued support, and reaffirmed commitment to projects in the PPDF pipeline. Ministers highlighted the importance of reviewing the governance frameworks of the PPDF to effectively implement its Sustainability and Business Plan.

In line with continental investment alignment, Ministers reviewed SADC’s Regional Investment Instruments to identify inconsistencies with the African Continental Free Trade Area (AfCFTA) Investment Protocol. They recommended policy reforms and legal coherence to ensure alignment and effective implementation. The Ministers also emphasised the urgency of conducting a diagnostic analysis of Member States' national investment laws and regulations against the provisions of the AfCFTA Protocol, a legally binding framework designed to promote, facilitate, and protect intra-African investment.

The Meeting further urged Member States to undertake national consultations on harmonising Cross-Border Third-Party Motor Vehicle Insurance Schemes. This includes exploring the benefits and challenges of a unified versus a mutually recognised non-unified scheme.

Lastly, the Ministers adopted amendments to Annex 12 of the SADC Protocol on Finance and Investment to incorporate provisions for Countering the Financing of Terrorism (CFT), Countering Proliferation Financing (CPF), and ensuring alignment with the Financial Action Task Force (FATF) Recommendations.