Talking Notes by Hon. Dr Hage Geingob, Chairperson of the SADC Council of Ministers and Minister of Trade and Industry of the Republic of Namibia on the occasion of Briefing the Media on the outcome of the Meeting of the SADC Council of Ministers, Windhoek, Namibia, 04 March 2011

1. INTRODUCTION

We have invited you today to give you an overview of the outcome of the Southern African Development Community (SADC) Council of Ministers’ meeting that took place here yesterday and today as a way of facilitating your access to information in order to share it with the Region’s citizens and your audiences at large.

Before I delve into that, let me just say that the SADC Region remains stable and peaceful and that has created a conducive environment in which we are implementing our regional development and integration agenda towards the realisation of SADC Objectives of, among others, poverty alleviation with the ultimate aim of eradicating it.

Developing and integrating the region cannot be the achieved by any one entity. We have to work together as governments, non-state actors and individual citizens. The media has a major role in enabling regional development and integration by empowering the region’s citizens with information that will enable them to take informed decisions and participate in the implementation of the Region’s programmes as provided for in the SADC Treaty.

As you might know, the SADC Council of Ministers was established by Article 11 of the SADC Treaty, to, among others; oversee the proper functioning and development of SADC, implementation of its policies and execution of its programmes.

This includes advising Summit on matters of overall policy, the efficient and harmonised functioning and development of SADC, approving of policies, strategies and work programmes as well as coordinating and supervising the operations of SADC Institutions subordinate to it.

Accordingly, Council currently meets twice, yearly. First  around February/March to review the implementation of its previous decisions including financial expenditure of SADC Institutions as well as to approve the budget of SADC Institutions for the following fiscal year, commencing yearly on April 01.  In August Council meets again to prepare for the annual ordinary meeting of the SADC Summit of Heads of State and Government including deliberating on strategic regional integration issues.

Thus, this Council meeting was convened to review the implementation of certain Council decisions and the SADC Corporate Business Plan and expenditure for the period2010/11 and to consider the 2011/2012 SADC Budget and Business Plan.

2. IMPLEMENTATION OF COUNCIL DECISIONS

2.1 Review of the Regional Indicative Strategic Development
Plan (RISDP)

The Regional Indicative Strategic Development Plan (RISDP) is a 15 year blue print for SADC development that sets the priorities, policies and strategies for achieving long-term goals of SADC of deeper regional integration and poverty eradication.

To this end, fifteen, five and one year plans have been developed for its implementation.

It serves as a guide to Member States, SADC Institutions and regional stakeholders and within the framework of the Windhoek Declaration it is the framework for SADC cooperation with its International Cooperating Partners (ICPs) towards the realisation of the Community’s Vision of a “Common future, a future within a regional community”

Its implementation commenced in 2005 and in August 2010, the Council of Ministers, directed the Secretariat to carry out its 1st Mid Term Review within six months. We have now realised that that time frame was too short and have thus further mandated the Secretariat, assisted by Member States, to undertake a desk assessment of the status of the implementation of the RISDP by Member States of SADC programmes including compliance with the Treaty and other obligations. The assessment will inform the review of the Terms of Reference after which tenders will be invited through advertising in all SADC Member States. The comprehensive independent Mid Term Review will then be carried out over a 12 months’ period.

2.2 SADC Consultative Conference

In August 2010 Council had approved that the Consultative Conference between SADC and its ICPs should be held in Maseru, Lesotho in October 2010 under the theme for the Conference “Global Financial and Economic Crisis: Impact on and Lessons for SADC Regional Economic Integration”.

However, during this sitting we received a report to the effect that the International Cooperating Partners (ICPs), through the EU Delegation in Gaborone, requested for a postponement of the Conference from October 2010 to a date to be agreed upon in 2011.

Having considered all the challenges that led to the postponement of the Consultative Conference we mandated the Double Troika – Senior Officials and the Secretariat to review the role and functioning modalities of the Consultative Conference within the context of the Windhoek Declaration and to submit a Report with recommendations for consideration by Council in August 2011 in order to determine the way forward.

2.3 Towards Continental Integration – the proposed COMESA-EAC-SADC Tripartite Free Trade Area

You may recall that in 2008 in Uganda, the Heads of State and Government of Regional Economic Communities (RECs), namely the Common Market for East and Southern Africa (COMESA), the East African Community) SADC held a tripartite summit. A Memorandum of Understanding (MoU) on Inter-regional Cooperation and Integration between the three RECs was signed by their Chairpersons and the second Tripartite Council and Summit will be hosted by South Africa, co-chaired by the chairpersons of the three RECs, namely, SADC Chairperson, H.E. President Hifikepunye Pohamba of Namibia COMESA Chairperson, H.M King Mswati III of the Kingdom of Swaziland and EAC Chairperson, H.E. President Pierre Nkurunziza of Burundi.

Prior to this, the SADC Council of Ministers and Summit of Heads of State and Government will meet to consolidate the Region’s position on the Tripartite.

3. REPORT OF THE FINANCE COMMITTEE

In this regard, Council received a report of the Finance Committee outlining the process of institutional reform and the status of finances for SADC programmes and operations for the 2010/11 fiscal year.

3.1 Institutional Reforms

With regard to institutional reforms, Council considered and approved several measures aimed at addressing capacity constraints, good governance, efficiency and effectiveness including approval of the Updated Road Map and Progress Report on Implementation of Capacity Building Framework on the main areas of the Institutional Reforms, namely:

Accounting Standards, External Audit Standards, Internal Control Framework, Internal Audit Standards and Procurement and directed the Secretariat, in consultation with Member States, to expand the Road Map to cater for institutional requirements of Member States and other ICPs.

Council also approved the Revised SADC Procurement Policy aligned to international best practice and the implementation of the Road Map on the Institutional Reforms and the establishment a SADC Audit Committee with effect from April 01, 2011 whose mandate includes the reviewing compliance with financial, regulatory, corporate governance, accountability and transparency framework provided for by the SADC Treaty.

Still towards improving good governance, Council approved the Revised Internal Audit Charter to comply with international professional standards including allowing risk management and internal control to receive adequate management attention by elevating the position of the Head of Internal Audit to director level.

3. 2 Annual Member States’ contributions

On this, I am delighted to say that Council noted that our Member States have remitted their annual memberships contributions for the fiscal year 2010/11.

The exception is Madagascar with outstanding contributions of for the years 2009/10 and 2010/11. The SADC Secretariat continues to engage Madagascar on the matter because, though under suspension pending its return to constitutional normalcy, Madagascar is still a SADC Member State and SADC continues to expend its resources towards assisting Malagasy people in resolving the situation currently prevailing in their country.

We directed the Secretariat to continue engaging Madagascar and report back to us in August 2011.

3.3 Funding from development partners in 2010/11

In pursuit of its regional development and integration agenda, SADC is not alone but has some development partners who also contribute resources. Accordingly, Council noted the status of committed expenditure from the budgeted imprest funds from the development partners as at 30 September 2010.

A total amount of US$37 million was appropriated in the budget for the fiscal year ending March 31, 2011 and revised to US$47 million in September 2010. In the six months’ period to September 2010,   US$14 million had been committed.

In order for SADC to address over reliance on development  partners’ funding, Council noted the proposed Resource Mobilisation Strategy and SADC Development Fund which were considered by the Ministers of Finance and Investment in February 2011 and which will be finalised at a meeting scheduled for March 2011.

Council also commended Development Partners for their continued support towards SADC programmes and projects and directed the Secretariat to prioritise the completion of the Report on donor funded projects as well as submitting recommendations on Resource Mobilisation Strategy and SADC Development Fund to Council in August 2011.

3.4 Review of the formula on the distribution of the Annual Member States contribution

Council approved a revised formula for the distribution of annual Member States’ contribution to come into effect on April 01, 2011, that was developed pursuant to recognition of extreme increases in some of our Member States resulting from sharp rises in GDP.

I do not want to bog you down on the technicalities; suffice to say that the new formula bases the distribution of Member States annual contributions on a moving average of the Gross Domestic Product (GDP) of the previous five instead of three years in order to smoothen movements in the GDP and retains the 20% ceiling and 5% floor except for Member States with populations of 500,000 or less.

3.5 Annual Accounts, Audited Financial Statements and Auditors Report for the year ended March 31, 2010 

Council also approved the Executive Secretary’s Report on the Annual Accounts for 2009/10, the Interim Internal Audit report for the period December 31, 2010 as well as the Annual Audited Financial Statements and Auditors Report for the same period, noting, amongst others, the Unqualified Audit Opinion given the Secretariat for the year under review.

4. 2011/12 SADC INSTITUTIONS BUDGET & CORPORATE BUSINESS PLAN

Approved budget: Council approved the 2011/12 Budget for SADC Institutions which provides expenditure estimates of US$83.5 million, 10% increase from the 2010/11 approved budget of US$76.3 million. This budget is aimed at facilitating the implementation of interventions in approved programmes and corporate services.

Sources of funding: Towards this budget, SADC Member States will provide US$26.0 in annual Member States contributions. Member States will further contribute US$3.4 and US$2.0 million towards ADC Headquarters unitary charges payment and HIV and AIDS Trans-boundary Projects, respectively. US$0.6 million is expected to be accrued from the existing Member States funds. Development partners will contribute an indicative US$51,5 million towards the approved Budget for the fiscal year 2011/12. SADC Member States will fund27.64% while the development partners will contribute 72.36% towards the approved budget.

Recognising the current challenges that Member States are facing, the regular budget for 2011/12 funded by Member States has incorporated austerity measures resulting in a reduction of 8% from 2010/11.

Following the opening of the SADC Headquarters in November 2010 by the SADC Heads of State and Government, the Member States have assumed an additional financial obligation on the recurrent basis for the next 15 years. In 2011/12, Member States will avail US$3.4 million towards the payment of the unitary charges.

The programme budget share amongst the SADC sectors is12.21% allocated Organ for Politics, Defence and Security Cooperation, 12.97% to Trade, Industry, Finance and Investment and 16.87% to Infrastructure and Services while Food, Agriculture and Natural Resources got 15.92%, Social Human Development and Special Projects 32.94%, Policy Planning and Resource Mobilisation got 5.87%, Macroeconomic Surveillance 0.19%, Gender 1.23%, SADC Tribunal got 1.80%.

Council approved the Annual Corporate Business Plan for the year 2011/12. The Plan links the approved Planning and Budget Outlook Paper for the period 2011/12, the annual business plans and estimates of income and expenditure for the year.

5. OTHER BUSINESS

Under this agenda item Council considered the following items added onto the agenda:

5.1 Illegal immigrants and refugees in the SADC Region

Increasing influx of illegal immigrants and refugees into the SADC Region that poses socio - economic challenges which negatively impact on Member States and referred the to the Inter State Defence and Security Committee of the Organ on Politics, Defence and Security Corporation which deals with all matters pertaining to defence and security in the Region which will then report to Council in August 2011.

5.2 Regional selection of candidates to the African Union Commission

In preparation for the election of new candidates to the AUC positions of Chairperson and Commissioners by the African Union Assembly of Heads of State and Government in January 2012, Council has directed SADC Permanent Representatives to the AU to draft and guidelines to serve as a basis for the SADC Region’s candidates submit them by March 2011. Council also directed the Executive Secretary to prepare a consolidated SADC Region’s candidates by April 2011.

5.3 From SADC Chairperson’s office

 Finally, Council also directed the Secretariat, in consultation with Member States, to prepare documents for Council to deliberate at its next meeting in August 2011 on the following items:

• Establishment of a Committee of SADC Ambassadors
• Appointment of Permanent SADC Professionals
• SADC Member States consider establishing a SADC Counter at Arrival Points
• Operationalisation of the SADC Protocol against Corruption
• Dealing with non sate actors
• RETOSA
• SADC Parliamentary Forum

That is the outcome of the SADC Council Meeting just ended here today.

I thank you
Merci Beaucoup
Muito Obrigado