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Southern African
Development Community

Towards a common future

Southern African
Development Community

Towards a common future

Invest in SADC

Official source of info for investing in SADC

Business and Investment Policy and Regulatory Frameworks

Attracting FDI and intra SADC investment has been placed at the core of the SADC developmental integration agenda. SADC recognizes that to improve the levels of investment in the region there is a need for creating a favourable investment climate that is responsive to the needs of investors and private sector whilst remaining competitive. Several strategies, policies and reforms have been made to ensure a conducive investment/business climate.

Protocol on Finance and Investment

In order to foster investment in the region, SADC established the Protocol on Finance and Investment in 2006. This Protocol outlines SADC policy on investment, encouraging Member States to enact strategies to attract investors and implement legislation that creates a favourable environment for investment, such as tax incentives that ease financial burdens for private firms seeking to invest in the region. The Protocol highlights the importance of FDI and encourages Member States to promote entrepreneurship in industries that specifically attract FDI. This Protocol also seeks to foster harmonisation of the financial and investment policies of the Member States in order to make them consistent with objectives of SADC and ensure that any changes to financial and investment policies in one Member State do not necessitate undesirable adjustments in other Member States.

Protocol on Trade in Services

The Protocol on Trade in Services was signed in 2012 and marked the beginning of negotiations on the liberalization of the priority sectors (communication services, construction services, energy-related services, financial services, tourism services, and transport services). The Protocol sets out general obligations for all State Parties with regard to the treatment of services and service suppliers from other State Parties. While it does not contain liberalization obligations, it provides for a mandate to progressively negotiate removal of barriers to the free movement of services.

Regional Indicative Strategic Development Plan (RISDP)

The Regional Indicative Strategic Development Plan (RISDP) which among other things, outlines factors that investors consider when assessing a region for its suitability for business, including a stable political and macroeconomic environment as well as favourable regulations, quality economic infrastructure, qualified human resources, and a transparent and predictable legal system; integration of the national markets into an expanded regional market with a higher level of liquidity; and a harmonized investment regime and business environment.

SADC Industrialisation Strategy and Roadmap

The SADC Industrialisation Strategy and Roadmap 2015–2063 aims to promote industrialisation, enhance competitiveness, and deepen regional integration through structural transformation, leading to an increase in manufactured goods and exports. This strategy calls on Member States to implement investment friendly policies to attract FDI resources to increase productive capacity and facilitate technological and skills transfers.

Regional Action Programme on Investment (RAPI)

To improve the investment and business environment in the region, SADC is implementing, the Regional Action Programme on Investment (RAPI) which has the following components:

  1. Developing and harmonizing the relevant policies and frameworks for attracting and promoting both domestic investment and FDI;

  2. Investment promotion initiatives in the region;

  3. Developing relevant platforms for sharing information which is relevant to investors.

RAPI helps Member States to identify opportunities to attract investments into supply chains that can help advance the industrialization process of the region and promote sustainable development.

Investment Policy Framework (IPF) and National Action Programmes on Investment (NAPI).

IPF guides Member States in developing their National Action Plans for Investment (NAPI). It identifies five policy action areas to help Members States to improve business and investment climate:

  1. Promoting a coherent and transparent investment environment;

  2. Ensuring market access and competition;

  3. Providing security and protection of investor’s rights;

  4. Ensuring responsible and inclusive investment for development; and

  5. Promoting regional and international integration.

Through the IPF SADC has helped Member States to meet their growth challenge by placing transparent and accountable institutions, market access and competition, inclusiveness, and economic integration at the centre of the region's strategy for attracting sustainable private investment.

Business and Investment promotion strategy (BIPS).

The core principles of BIPS are anchored on the SADC regional IPF. Its main objectives are to complement the IPAs Investment Promotion Strategy, to present and promote SADC as an FDI destination and to create and maintain the visibility of SADC as a regional investment destination.