Donors Analyse SADC Economic State

An analysis from Oxfam, Norwegian Church Aid (NCA) and the Development Finance International (DFI) has recommend that Southern Africa Development Community (Sadc) countries need to reduce public spending by $30.2 Billion between 2022-2026.

The recommendation comes in the wake of a recent economic report which shows economic shortfalls among Sadc member states due to among others, the devastating effects of the novel covid-19 and Russia – Ukraine war.

This means that there should be plans to reduce spending among member states as poverty is bound to worsen in the region.

According to a statement released on Tuesday signed by Norwegian Church Aid Senior programme officer Felix Ngosa, the Commitment to Reducing Inequality Index (CRI) report shows that fifteen Sadc member states lost about $80 billionin 2020 due to lower-than-expected growth an equivalent of around $220 for every Sadc citizen.

Meanwhile in a related development on Tuesday, President Lazarus Chakwera invited Vice President, Saulos Chilima, to join him for a ‘regular meeting’ with the Minister of Finance and the Governor of the Reserve Bank aimed at making “further progress on designing solutions” for the problems in the economy.

The meeting will also be a preparation for the visiting International Monetary Fund (IMF) delegation who will be assessing the country’s economic progress if it qualifies for a Balance of Payment Support (BPS).