SADC in $225 million deal with USA
Larona Makhaiza | Monday August 7, 2023 06:00
The $225 million that is expected to be pumped into the new agreement deal between SADC and USA is envisioned to go towards the SADC ‘Regional Development Objectives’ only.
Through the MOA signing that was held at the SADC Secretariat, Mphatso Kachule who is the legal counsel for the regional body revealed that funds from the agreement will come in batches. “The funds from the collaborative agreement will be provided in tranches and from 2023 to 2024 the initial allocation is $35.8 million. And this means that next year the government will provide another tranch depending on what the agreement will be in terms of the areas of cooperation,” he explained.
Kachule further stated that the process would go on like this for every cycle of the agreement. “This cycle would go on like for more years up until the fund of $225 million in the agreement is exhausted by 2027,” he said. Elucidating more on the agreement, Kachule stated that the agreement’s mandate is to look out for Southern Africa to be able to stand on its own feet and better the living standards of its people. “This agreement is a cooperation agreement between the two organisations and there are a number of areas which the agreement talks about because the US government will avail the much needed resources to implement projects that will improve peoples lives in Southern Africa,” he said.
Kachule stated that some of the focus areas that the collaboration agreement will be embarking on are to alleviate the economy, energy, youth and many other areas. He additionally said there are areas that they wait to pump the funds into as soon as the money is availed. “There are quite a number of areas that need our attention, for example, one of the areas that need our urgent attention is the health sector and this is the key area that will be focusing on because the health industry has to really be in a good position for countries to prosper,” Kachule revealed.
Moreover, Kachule said another focus areas would be democracy and good governance. He described democracy and good governance as a pillar in the region. 'As long as our region is democratic and the governance is good, it assures good stability in the region and attract more investors that will improve SADC,” he said.
The agreement between SADC and USA government will run out in 2027 with an option to negotiate a better deal for the new agreement.
For his part, Elias Magosi, the Executive Secretary of SADC stated that the move between SADC and USA is an alignment with the regional body's vision.
“This agreement is in consensus with our regional plans of 2030 and as SADC we are therefore, grateful with the US government for collaborating with us in this agreement,” Magosi said.
Meanwhile, Howard Van Vranken (USA representative) revealed that USA’s ambition is to see Africa striving on its own. “We realise that if Africa is really prosperous it can really do greater good for Africa and the US. And US government is certain that SADC must live its own journey,” Van Vranken said.