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Every country’s political and economic stability depends on their neighbours forming a flourishing

market, rather than a depressed source of potential migrants and unemployed people without purchasing
power. To be a market, your neighbours must be able to export as well as to import. Growing markets
need investment and trade to be based on confidence about the economic rules of the game. This paper
therefore, endeavors to discuss the benefits for Zambia to belong to regional organization like SADC or
COMESA, and will further describe the bottlenecks faced by Southern African Development Community
(SADC) as an organization in the quest achievement its set of outcomes.

According to Chipeta (1997: 57), successful regional integration (belonging) will depend on the extent to
which there exist regional institutions with adequate competence and capacity to stimulate and manage
efficiently and effectively, the complex process of integration. Integration requires mechanisms capable of
achieving the high level of political commitment necessary to shape the scope and scale of the regional
integration process. This implies strengthening the powers and capacity of regional decision-making,
coordinating and executing bodies. Integration implies that some decisions which were previously taken
by individual States are taken regionally, and those decisions taken nationally give due consideration to
regional positions and circumstances. Regional decision-making also implies elements of change in the
locus and context of exercising sovereignty, rather than a loss of sovereignty.

Zambia is a founding member of both the Common Market for Eastern and Southern Africa (COMESA)
and the Southern African Development Community (SADC). Both of these trade arrangements have the
ultimate objective of free trade among their members. Therefore, Zambia has positioned itself in a fairly
favorable position with respect to its regional trade policy. As a member of both the Southern African
Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA)
Free Trade Areas (FTA) it is one of the few countries whose exports enjoy duty free access to African
trading partners both to its north and south. At the same time, since SADC and COMESA are still Free
Trade Agreements and since Zambia’s World Trade Organization (WTO) commitments are not
particularly constraining, Zambia enjoys considerable freedom to adjust its extra-regional tariffs and
conduct its multilateral trade relationships as it sees fit.

However, there are a number of benefits for Zambia to belong to regional organization like SADC or
COMESA. Some of these benefits include the following;

One of the benefits according to ECA (2002) is liberation and Customs Cooperation. Regional
organization like SADC or COMESA places Zambia at an advantage of adopting a common custom

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scheme that abolishes non-tariff barriers to trade between member states. Furthermore, member countries
are in a position to establish conditions regulating the flow of goods from third party countries within the
Common Market. In addition, member states can simplify and harmonize their trade agreements and
procedures. Also, the regional organization have the benefit of recognizing the unique situation of other
countries like Namibia, Swaziland and Lesotho within the context of the Common Market and give
temporary exemptions, as opposed to full application of specified provision in Article 3 of the COMESA
treaty. According to the Article 46 of the treaty, member states have the advantage of enjoying non-tariff
goods and services within the Common Market. Thus, Zambia enjoys custom exemptions on all imports of
products originating in other member countries with value additions approximately amounting to 45
percent.

Furthermore, Zambia benefit from cooperation in the field of industrial development because the treaty
from regional organization provides stable investment opportunities. As a result, Zambia has the
advantage of providing high quality goods and services in the Common Market because regional treaty
recommends elimination of rigidities in manufacturing and production. Matlanyane (2002) added that
energy is vital to development in Southern African countries like Zambia for industrial purposes. Beyond
its use in daily life, fuel and electricity catalyze infrastructure projects that drive both Regional
Integration and economic growth. As the SADC region industrializes on its path to improved human
development, energy production and distribution will only increase in importance.

In addition, Regional infrastructure development creates a larger market and greater economic
opportunities, and the development of infrastructure is critical for promoting and sustaining regional
economic development, trade and investment, and will contributes to poverty eradication and improved
social conditions. Thus, Zambia has benefited from the regional infrastructure development specifically,
common market.

Moreover, Zambia has also benefited from regional organization like SADC or COMESA through
monetary and Finance aspects. Khandelwal (2006: 91) posit that regional organization promotes member
cooperation in financial and monetary matters and establishes convertibility of their currencies through the
Common Monetary Union. This therefore, helps Zambia to harmonize its macroeconomic activities and
remove the obstacles to the free movement of capital and services within the Common Market.

In line with its mandate of strengthening Regional Integration throughout Southern Africa, the regional
organization like SADC or COMESA promotes Macroeconomic Convergence in the region. This process

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advocates that Member States move toward a common macroeconomic climate with similar policies
on Inflation, Public Debts, and Current Accounts. Macroeconomic convergence stabilizes the regional
economy, safeguarding it from excessive fluctuations due to external factors. It aims for low, stable levels
of Inflation; sustainable Budget Deficits; minimal Public Debt; and equitable Current Account Balances.
This stability in turn fosters Economic Development in Zambia, as it provides a predictable and attractive
environment for Investment and business (Cline, 1978: 236).

Also in the field of agriculture, Zambia and other member states have benefited for belonging to regional
organization like SADC or COMESA. Chipeta (1997: 127) says that this is because Zambia can easily
cooperate in agricultural development and adopt a common agricultural policy in addition to enhancing a
food sufficient region. Consequently, Zambia has the benefit of cooperating in agricultural research and
extension, enhancing rural development and export of agricultural commodities.

Stable food availability, food access, nutritional value and safety are important aspects of food
security. Food Availability means there is a consistent local supply of appropriate food types, either
imported or produced locally. Food access means that the local populations have the means to purchase or
barter for the food they require for appropriate diet and nutrition. Available and accessible food must also
be of sufficient nutritional value and be safe to consume if food security is to be attained. There should
also be a stable supply and access to food for longer periods. This can be achieved with appropriate food
production, handling and storage. Thus, Zambia has benefited from regional organization like SADC or
COMESA especially, during this droughts and prolonged dry spells, floods, cyclones, or wildfires, pests
and diseases, policies adversely affecting agricultural input prices (seeds, fertilizers, agrochemicals etc.),
civil unrest, and Human / wildlife conflicts). Hence, the core focus of Food Security in Southern Africa is
sustainable access to safe and adequate food at all times (Economic Commission for Africa, ECA. 2002).

Kyambalesa (2006) pointed out that Zambia has further benefited from regional organization by making
regulations to facilitate movement of goods and services within the region through transport and
communication and adopting a Third Party Vehicle Insurance Scheme. Additionally, they are in a position
of fostering cooperation in transport and communication among themselves; this facilitates the production
of goods and services and movement of people. He further alluded that a region striving for stronger
integration (belonging) needs an efficient transport system to facilitate trade and socioeconomic ties.
Throughout Southern Africa, this network of roads, railways, ports, and airways currently meets the
demand of most users. However, as industries and economies develop throughout the region, use of the
transport network will exceed its current capacity.

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Through Social and Economic Development, regional organization accords members the advantage of
adopting a regional policy that puts checks on all possible economic and social problems faced during the
implementation of the treaty. Furthermore, Zambia have the benefit of free movement of labor, services,
persons, attraction of investors and the right of residence within the regional organization.

Notwithstanding the above benefits for Zambia to belong to regional organization, there are a number of
bottlenecks faced by Southern African Development Community (SADC) as an organization in the quest
achievement its set of outcomes. The bottleneck to SADC as an organization include the high levels of
Non-tariff measures, infrastructural bottlenecks, trade diversion, stringent rules of origin, lack of diversity
in exports, loss of customs revenue, trade polarization, overlapping membership, food security concerns
among others. These are discussed in the sequel.

Non-tariff Measures are one of the bottlenecks to SADC; Non-tariff Measures (NTMs) are institutional,
infrastructural and regulatory burdens that impede the movement of goods across borders. These include
certification procedures, quantity control measures, technical regulations, market regulations, government
procurement and investment restrictions, insufficient intellectual property rights protection and policies
affecting cost of entry (Johnson et. al., 2007). The persistence of Non-tariff Measures even among Free
Trade Areas is self-defeating in that it impedes the trade that the member nations ‘intend’ to promote. For
example, intra-SADC trade has not changed significantly while the trade has actually declined during the
phase down of tariffs.

Reliable access to adequate food is a fundamental requirement for human well-being. Southern African
Development Community (SADC) Member States face challenges ranging from scarcity or unpredictable
changes in food availability due to factors such as weather and climate, labour-intensive or dated
agricultural methods, and HIV and AIDS, and other health issues affecting agricultural production levels.
This therefore, It is envisaged that reduction in tariffs reduce the price of food therefore increase both
physical and economic assess to food. However, the continued use of NTBs such as SPS and the lack of a
regional policy on the production important food staples such as maize (for example, on the production of
GMO maize) jeopardizes food security in SADC and may lead to reoccurrence of famine in vulnerable
countries such as Malawi and Namibia (Mutambatsere, 2006).

Furthermore, overlapping membership was another bottleneck to SADC. Tavaresa et al., (2011) stipulates
that competing interests and uncoordinated policies have resulted in overlapping regional trade blocs.
However, overlaps exist in SADC, Common Markets for Eastern and Southern Africa (COMESA) and

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East African Community (EAC). All members of SACU belong to SADC. Seven SADC countries
(Angola, DRC, Malawi, Mauritius, Swaziland, Zambia and Zimbabwe) are also members of COMESA.
Tanzania is a member of both SADC and EAC. Overlapping membership presents challenges, particularly
when trading blocs move towards deeper levels of economic integration (SADC, 2008).

For example, Zambia belongs to both SADC and COMESA. Under the SADC TP, Zambia is to extend
duty-free treatment to South African products. However, because of its COMESA membership, Zambia is
to implement a common external tariff in line with the COMESA Customs Union, which excludes South
Africa. This means that Zambia has agreed to simultaneously promote free trade with South Africa and
maintain COMESA tariffs against that same country (SADC, 2008). In recognition of such dilemmas,
Piazolo (2002) cautions South Africa against joining COMESA.

Moreover, the effect of trade liberalization on revenue depends to a large extent on the share of tariff
revenue in total revenue which resulted in revenue loss. Matlanyane and Harmse (2002: 155) found trade
liberalization did not significantly reduce South Africa’s trade tax revenue. On the other hand, Sandrey et
al., (2006) predicted an 11% decline in revenue accruing to Lesotho from the SACU revenue pool as a
result of trade liberalization. This raises concern among government as it may result in fiscal deficits and
macroeconomic instability. However, this concern can be addressed by noting that revenue losses are not
an economic costs and that such losses can easily be made up through normal economic growth.

Lastly, the SADC secretariat lacks binding authority and member countries are not willing to cede power
to a centralized authority. This results in uncoordinated interventions and may undermine the long-term
success of the SADC, Free Trade Areas and other deeper forms of integration agreed upon.

From the foregoing discussion, it can be deduced that every country’s political and economic stability
depends on their neighbours forming a flourishing market, rather than a depressed source of potential
migrants and unemployed people without purchasing power. Therefore, Zambia being a member of both
the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development
Community (SADC), has benefited a lot from these regional organization as articulates above. However,
the paper has further highlighted the bottlenecks to SADC as an organization include the high levels of
Non-tariff measures, infrastructural bottlenecks, trade diversion, stringent rules of origin, lack of diversity
in exports, loss of customs revenue, trade polarization, overlapping membership, food security concerns
among others. Thus the onus of the paper.

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REFERENCES

Chipeta C (1997). Review and Rationalization of the SADC Programme of Action. Harare
Zimbabwe: CSIR-SA.

Cline, W. R. (1978). Benefits and Costs of Economic Integration in CACM. In Cline, W. R. and
Delgado, E. (eds). Economic Integration in Central America. Washington:
the Bookings institution.

Economic Commission for Africa, ECA. (2002). Economic Report on Africa: Tracking
Performance and Progress. New York. USA: Palgrave MacMillan.

Johnson, S., Jonathan, O. and Arvind, S. (2007). “The Prospects for Sustained Growth in Africa:
Benchmarking the Constraints.” International Monetary Fund. Washington.
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Khandelwal, P. (2006). International Monetary Fund: COMESA and SADC, Prospects and
Challenges for Regional. Commonwealth Secretariat. London. UK.

Mutambatsere, E. (2006). Trade Policy Reforms in the Cereals Sector of the SADC Region:
Implications on Food Security. Contributed Paper prepared for
presentation at the International Association of Agricultural Economists
Conference. Gold Coast. Australia.

Matlanyane, A. and Harmse, C. (2002). Revenue Implications of Trade Liberalization in South


Africa. Pretoria, South Africa: World Bank.

SADC (2012). Regional Peacekeeping Training Centre. Gaborone: Southern African


Development Community.

Tavaresa, R. and Tang, V. (2011). Regional Economic Integration In Africa: Impediments To


Progress. The World Bank, Washington.

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