SADC COUNCIL OF MINISTERS MEETING: MEDIA BRIEFING

UNCLAS MASERU 000182

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EAGR ETRD PREL PGOV KDEM LT
SUBJECT: SADC COUNCIL OF MINISTERS MEETING: MEDIA BRIEFING


1.Summary: The Lesotho Minister of Finance and Development
Planning, Timothy Thahane, in his capacity as Chairman of the
Council of Ministers of the Southern African Development
Community (SADC),held a media briefing on March 22 after the
conclusion of the Council meeting held in Maseru. The briefing
focused on progress being made in the important area of regional
economic integration. The Minister indicated that SADC is
swiftly marching towards the first of its milestones in deeper
regional economic integration, namely the Free Trade Area (FTA)
in 2008, which will soon be followed by the Customs Union (CU)
in 2010, the Common Market (CM) in 2015, and the Monetary Union
(MU) in 2016. Cooperation with development partners was also
touched upon. End Summary.


2. Thahane noted progress in implementation of the decisions of
the SADC Extraordinary Summit Meeting of October 23, 2006
regarding the Free Trade Area, including an audit of gazetted
tariff reduction schedules by member states which commenced in
February 2007 and is expected to be completed by the end of
April 2007. Ministers noted that plans are advanced to undertake
studies on a Customs Union model and compatibility of national
trade policies. In addition a Customs Union Roadmap is being
finalized.


3. The Council of Ministers, according to Thahane, also
considered the following SADC issues:

a) SADC financial statements for the fiscal year ended 31 March
2007, including management accounts for the current fiscal year
(2006/2007) and financial estimates for the 2007/2008 fiscal
year. In this respect, according to Thahane, the Ministers
noted a favorable audit opinion and approved the Secretariat
budget for the year 2007/2008 in the amount of US$45.3 million.

b) Regarding the design, financing, and construction of new SADC
Headquarters, Thahane pointed out that the detailed physical
design has been completed, while the financial arrangements are
soon to be concluded with suppliers. The Headquarters, which
will house 250 personnel, is expected to cost SADC US$25
million, which will be amortized over 15 years through Member
States contributions.

c) Cooperation with the European Union, particularly on regional
economic integration. The Minister indicated that the European
Commission will make available to SADC 135 million under a
joint regional indicative program to support regional economic
integration.

d) In regards to progress on the Conference on Poverty and
Development, the Ministers noted that the Conference themes have
already been identified, while the Southern Africa Trust (SAT)
has committed human and financial resources towards the
preparation for the Conference.


4. Thahane stated that the Council of Ministers had also
considered an update on the regional food situation and the
impact of drought in Member States. The Ministers urged member
states that are likely to suffer food deficits to undertake food
situation assessments quickly and to prepare for importation of
food.

PERRY