African Renaissance Conference  24- 26 May 2018



    Services in the SADC Region


    Trade in Services in the SADC Region The services sector in the SADC region is characterised by moderate investment, comparatively high cost and limited access to services by the general public.  At the same time, it is acknowledged that services are the most important part of Southern African economies and are also important inputs to production in all sectors. Services are important elements for growth and competitiveness. Most SADC Member States adopted services sector liberalization policies in the 1990s providing limited market access to foreign services suppliers, including through foreign direct investment.  

    In 1995, all SADC MS (except the Seychelles) became WTO Members and undertook binding liberalization commitments through the GATSand bilateral agreements. SADC Member States recognize that the deeper integration not only of trade in goods, but also of their services markets holds great economic potential.  In the SADC TreatyMember States undertook to develop policies aimed at the progressive elimination of obstacles to the free movement of capital and labour, goods and services.  The RISDP, [link to RISDP paragraph, ] recalls the objective of eliminating obstacles to the free movement of capital, labour and goods and services and the improvement of the region's economic management and performance through regional cooperation with the ultimate goal of eradicating poverty, and foresees the establishment of a Common Market through removal of barriers on factors of production.  Whereas SADC has concentrated its efforts towards establishment of a Free Trade Area for goods, work on policies to eliminate obstacles to the movement of services has to date progressed slowly.  A framework Protocol on Trade in Services was adopted in 2009 by Ministers of Trade, and awaits clearance by Ministers of Justice/Attorneys General and signature by Heads of State. It is important to note that the Draft Protocol on Trade in Services provides for a mandate to progressively negotiate removal of barriers to the free movement of services, but does not bring about any integration of markets in and by itself. SADC Ministers of Trade decided in November 2011 to commence with negotiations on the liberalization of six priority sectors ( communication services, construction services, energy-related services, financial services, tourism services, and transport services