Tanzania calls for a carefully- structured implementation of SADC Development Fund

HARARE: TANZANIA has called for a carefully structured implementation of the SADC Regional Development Fund, citing financing challenges and the need for member states to align internal procedures before fully operationalizing the mechanism.

The stand was presented by Tanzania’s Deputy Minister for Finance, Laurent Luswetula, who led Tanzania’s delegation to the Committee of Ministers of Finance and Investment of the Southern African Development Community held in Harare.

The meeting brought together finance ministers, central bank governors and senior financial officials from all 16 SADC member states to deliberate on regional economic integration and financing of development programmes.

ALSO READ: Tanzania seeks to expand access to affordable infrastructure financing after talks with ShafDB  

Speaking after the session, Luswetula said Tanzania focused on two key issues of national interest, including the implementation of the SADC Regional Development Fund and proposed alternative financing mechanisms for regional development projects.

He said Tanzania supports the fund in principle, having ratified the agreement in 2016, and is currently completing internal procedures that will allow full participation in its implementation.

However, he noted that challenges remain, particularly regarding initial capital contributions from member states, many of which are facing fiscal constraints.

“We have explained that once all internal procedures are completed, the government will formally notify the SADC Secretariat so that Tanzania can fully participate in the implementation of the Regional Development Fund,” he said.

The second issue raised by Tanzania concerned proposals to introduce tourism levies and import duties as funding sources for SADC budgets and programmes.

 Luswetula said Tanzania believes the proposals require further detailed analysis before adoption.