Godongwana Urges SADC to Build Stronger Regional Economy
Godongwana also warned that falling international development assistance presents a growing challenge for Sub-Saharan Africa.
Devdiscourse News Desk | Pretoria | Updated: 02-07-2026 22:17 IST | Created: 02-07-2026 22:17 IST
Citing International Monetary Fund (IMF) estimates, the minister said bilateral aid to developing countries could decline by 16 to 28 per cent from 2025. Image Credit: Facebook (G20 South Africa)
Key Takeaways
- South African Finance Minister Enoch Godongwana called for stronger regional cooperation among SADC member states to address global economic uncertainty.
- He emphasized the need for coordinated economic policies to enhance the region's competitiveness and reduce vulnerability to external shocks.
- Godongwana highlighted the importance of utilizing critical mineral resources for industrialization, food security, and expanding intra-regional trade.
- He urged for strong political leadership and implementation of agreed policies, focusing on trade facilitation, transport corridors, and digital payment systems.
South African Finance Minister Enoch Godongwana has urged Southern African Development Community (SADC) member states to strengthen regional cooperation and adopt coordinated economic policies to better withstand growing global economic uncertainty. Speaking at the SADC Committee of Ministers of Finance and Investment meeting in Harare, Zimbabwe, Godongwana said the region must position itself as a competitive producer by working together to reduce vulnerability to external economic shocks. He said SADC countries should focus on using their critical mineral resources to drive industrialisation, improve food security through joint agricultural production and agro-processing, expand intra-regional trade and strengthen transport infrastructure and supply chains.
Focus on implementation and regional integration
Godongwana stressed that achieving these goals will require strong political leadership, closer institutional cooperation and a greater focus on implementing agreed policies rather than simply making commitments. He identified several priority areas, including trade facilitation reforms, the development of transport and logistics corridors, and improving digital payment systems across the region. He also called for lower remittance costs to make cross-border financial transactions more affordable for citizens and businesses.
According to the minister, these practical measures would help improve regional competitiveness while creating a stronger and more integrated SADC economy.
Declining aid requires new financing models
Godongwana also warned that falling international development assistance presents a growing challenge for Sub-Saharan Africa. He said changing global funding patterns require SADC countries to adopt more sustainable financing strategies by expanding the use of blended finance, public-private partnerships (PPPs) and greater private sector investment to offset declining donor support.
Citing International Monetary Fund (IMF) estimates, the minister said bilateral aid to developing countries could decline by 16 to 28 per cent from 2025. He noted that the reductions are being driven by donor countries rather than the performance of recipient nations and described the situation as a potentially long-term structural challenge.
Godongwana warned that the poorest and most vulnerable countries are likely to be affected the most, making regional cooperation and diversified sources of development finance increasingly important for sustainable economic growth.
