News

SADC Block Seeks Unity Against US Trade Tariffs

SADC Block Seeks Unity Against US Trade Tariffs
Monday, 25 August 2025 18:35

While the Southern African Development Community (SADC) has been holding an increasing number of protocols and summits to promote regional integration since 1992, most of these commitments have gone unfulfilled. The rotating presidency, which Madagascar assumes this month, begins a new chapter. However, the organization's structural contradictions continue to limit its room to maneuver.

The Southern African Development Community (SADC) is trying to project an image of unity, but the recent summit in Antananarivo revealed the persistent obstacles to true regional integration. While the 45th meeting focused on industrialization and energy transition, it was overshadowed by new trade pressures from the United States. In early April 2025, Washington announced surtaxes of 47 to 50% on exports from countries like Madagascar and Lesotho, a move that exposed how vulnerable and fragmented the bloc remains.

Unfulfilled Protocols Undermine Integration

According to a note circulated in early August by the think tank The South African Institute of International Affairs (SAIIA), the instruments intended to strengthen this integration and regulate trade, investment, and free movement have struggled to be ratified or implemented, allowing member states to act in a fragmented manner. The report states that 27 protocols have been adopted since 1992, but their implementation remains limited. For instance, the Protocol on Industry, adopted in 2019 to stimulate industrialization, has been ratified by only six countries. Even when ratified, many protocols are underutilized because the "states meant to benefit from these initiatives are not always aware of the protocols’ existence or how they can take advantage of them." The analysis cites the European Centre for Development Policy Management (ECDPM), noting that "over 92% of Mozambique’s eligible exports to SADC states were not using the SADC Protocol on Trade in Goods."

"Despite the Free Trade Area agreement, many goods are nonetheless subjected to tariffs," explained political analyst Kim Heller. "Not all member states abide by the Free Trade Area provisions. Slow custom machinery, poor road and railway infrastructure, cumbersome border logistics, and inefficient value chains add to the difficulties."

A Call for Action from Within

This weakness is acknowledged even within the organization's own ministerial meetings. In Harare last June, ministers of trade and regional integration once again urged states to ratify outstanding protocols, including those on trade, industry, and services, which are meant to provide a common framework for removing trade barriers and coordinating industrial policies. “We must move away from constructing barriers amongst ourselves," insisted Zimbabwean Minister Amon Murwira, who chairs the SADC Council of Ministers. "We are all aware of the fragile state of global trade relations ranging from unilateral actions, reversals of trade commitments, and threats to multilateralism. This uncertain environment reinforces the need to build our collective resilience, through promotion of sustainable development, deeper regional integration, stronger value chains, and expanded trade within our own region."

This lack of coordination is evident in how states respond to external shocks. Faced with the 2025 U.S. surtaxes affecting the region's textile, mining, and agricultural exports, several countries have adopted their own strategies. Zimbabwe announced a unilateral suspension of its customs duties on U.S. imports to protect its tobacco, a decision former Finance Minister Tendai Biti called suicidal, selfish, and a betrayal of regional solidarity. Madagascar opened bilateral discussions with Washington. Lesotho offered a stake in its energy sector to regain U.S. favor, while South Africa's government has explored the possibility of a separate trade agreement.

IMG1 copy

Source: GIS Report

While these individual approaches can be explained by the varying impacts of the U.S. decision on each country, they underscore the absence of a common operational framework within SADC. Despite a combined gross domestic product estimated at $841 billion for its sixteen members, SADC has failed to capitalize on this economic weight due to a fragmented market. This fragmentation limits its ability to confront major trading partners and negotiate as a unified bloc. "To date, intra-regional trade stands at a low of about 23 percent, signifying that, as SADC member states, we are trading more with the rest of the world than we do amongst ourselves," said Elias Magosi, the organization's Executive Secretary, in November 2024.

New Prospects for a More Unified Front

Amidst these structural blockages and national reflexes, a few signs point to more favorable prospects. SADC announced in early April that it was conducting a detailed assessment of the impact of the U.S. surtaxes with the goal of developing a collective response. If successful, this step would constitute a concrete move toward better regional coordination. Economic integration could also be strengthened by internal dynamics. Angola has just finalized its tariff offer to join the SADC Free Trade Area, which will bring the number of fully engaged member countries to 14, up from only 12 a few years ago. Only the Democratic Republic of Congo and the Comoros would remain outside the common market.

According to an analysis published by GIS Report, connections with other continental frameworks also open new perspectives. The African Continental Free Trade Area (AfCFTA), which offers broader access to African markets, can serve as a conduit for diversifying exports and reducing dependence on external partners. At the June 5 meeting in Harare, trade ministers announced the adoption of several tools to stimulate cooperation, including an investment climate scorecard, a SADC-AfCFTA consultative forum, and an action plan for small and medium-sized enterprises. For the new Malagasy rotating presidency, the great challenge will be to demonstrate that SADC can finally overcome its blockages to become a more unified and influential regional actor.

Louis-Nino Kansoun

On the same topic
EUR 106 million allocated for project- and program-based technical and financial cooperation. EUR 100 million in direct budget support aligned with...
Rwanda maintained strong growth and adequate reserves, but external pressures are mounting. Public debt is projected to rise toward 80% of GDP by 2027,...
Dangote Foundation pledges 1 trillion naira for Nigerian education over decade Funding targets STEM, girls’ education, teacher training from...
The mining group is refocusing on iron, aluminium, lithium and copper while placing other activities, including titanium, under strategic review, raising...
Most Read
01

Omer-Decugis & Cie acquired 100% of Côte d’Ivoire–based Vergers du Bandama. Vergers du Band...

Omer-Decugis & Cie Expands Mango Operations in West Africa
02

Eritrea faces some of the Horn of Africa’s deepest infrastructure and climate-resilience gaps, lim...

AfDB Re-engages Eritrea With Strategy Focused on Infrastructure, Climate Resilience and Regional Integration
03

Huaxin's $100M Balaka plant localizes clinker production, saving Malawi $50M yearly in f...

Malawi: New $100M Cement Plant Targets Forex Crisis but Faces Energy Reality
04

Nigeria seeks Boeing-Cranfield partnership to build national aircraft MRO centre Project aims t...

Nigeria Pursues Boeing, Cranfield Partnership to Establish Aircraft Maintenance Center
05

Benin says a coup attempt was foiled, crediting an army that “refused to betray its oath.” ...

Benin Government Says Attempted Coup Against President Talon Has Been Foiled
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.