Report on the Economic and Social Condistions in Southern Africa 2012

With sluggish recovery and growth in industrial countries, coupled with fiscal challenges in Europe, the demand for primary commodities in the short to medium term is likely to slump. Capital and aid flows to Africa are also expected to fall. While the Southern African Development Community (SADC) has generally been resilient to external shocks, the unfolding events in Europe cast uncertainty over the subregion’s future economic outlook. Member Statesare therefore called upon to be proactive in exploring various interventions and policy options including adopting counter-cyclical fiscal and monetary stances to mitigate potential exogenousshocks. In going forward, the subregion should take advantage of the opportunities presented by new and emerging markets, such as Brazil, Russia, India and China (BRIC), to build its buffer zones. Within the context of south-south cooperation, SADC is also urged to identify new poles ofgrowth anchored on the subregion’s vast resources and comparative advantages.