In a significant development for the Southern African Development Community (SADC), a Memorandum of Understanding (MoU) was signed yesterday between SADC Executive Secretary Elias Magosi and Dr. Sidi Ould Tah, President of the Arab Bank for Economic Development in Africa (BADEA). This MoU will enable SADC countries to access an initial USD8 billion from an Arab Sovereign Wealth Fund valued at USD1 trillion, aimed at supporting investments in the region.
The agreement marks the first-ever cooperation between SADC and BADEA since the latter’s establishment 50 years ago. This collaboration is expected to enhance regional development in critical areas, including industry, transport, infrastructure, construction, energy, water, health, trade, agriculture, and investment—sectors central to SADC’s development agenda.
The SADC-BADEA Investment Forum, formed as a result of the MoU, will organize various events, including seminars and exhibitions, to foster further collaboration, especially involving the private sector. The signing of the MoU is also seen as a catalyst for accelerating SADC’s regional integration agenda, as outlined in Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP) 2020-2030. These strategic frameworks prioritize initiatives on peace and security, industrialization, infrastructure development, social and human development, as well as addressing cross-cutting issues like gender, youth, environment, climate change, and disaster risk management.
Zimbabwe, in particular, stands to benefit significantly from this agreement. The MoU paves the way for the country to access credit lines from BADEA, offering a critical financial lifeline, especially as Zimbabwe remains under sanctions and has struggled to secure funding from traditional Bretton Woods institutions. Despite these challenges, Zimbabwe has demonstrated resilience, continuing to advance development using local resources—a commitment evident in the preparations for the upcoming SADC Summit.
With access to BADEA funding, Zimbabwe could further accelerate its development projects, potentially doubling down on infrastructure and other vital sectors. The agreement with BADEA is not only a financial boon for the region but also a testament to the strengthening of ties between Africa and the Arab world, setting the stage for future collaboration and mutual growth.
