1 0 S O U T H E R N A F R I C A N D E V E L O P M E N T C O M M U N I T Y (SSA). It also has the highest GNI per capita in the whole 2.2.2.1 of SSA. Thus, despite a relatively small market size, the Population and Gross Domestic Product (GDP) SADC region can still reap significant static and dynamic In the year 2002, SADC had a combined population of gains from regional integration, provided supply side approximately 210 million people with a total GDP of constraints are adequately addressed. US$ 226.1 billion. During the same year GDP grew by Driven by the need to rapidly reduce poverty, like other SSA regions, SADC has embarked on the implementation of about 3.2 per cent, which was above the population growth rate of approximately 2.1 per cent. a number of reform measures aimed at promoting As shown in Figure 1, 2002 output in SADC was macroeconomic stability and higher growth combined with extremely uneven, reflecting mainly differences in resource the improvement in the delivery of social services. endowment and economic size of the different Member The section below analyses the economic developments of SADC on the basis of the following selected States. South Africa is the largest economy in the region in terms of GDP. The average regional GDP growth rate during the macroeconomic indicators: 1990s and beginning of the 2000s was significantly positive despite a slow start in 1990-1992. Strong signs of 2.2.2 Selected Macroeconomic Indicators economic recovery in the region started showing in 1993 and gained momentum in 1996 with a SADC average GDP growth rate of 5 per cent. However, in the following years, Fig 1: SHARE OF SADC GDP, 2002 1 1 1 1 1 2 3 4 5 6 7 8 9 0 1 2 3 SEYCHELLES LESOTHO SWAZILAND MALAWI NAMIBIA MOZAMBIQUE ZAMBIA MAURITIUS BOTSWANA DRC ZIMBABWE TANZANIA ANGOLA 0 0 0 1 1 2 2 2 3 3 3 6 6 the growth pattern fluctuated considerably from year to . . . . . . . . . . . . . 4 5 7 2 9 2 4 9 1 3 6 1 1 % % % % % % % % % % % % % year and reached 3.2 in 2002 (see Figure 2 overleaf ). Improvement in economic performance is largely attributed to positive political developments in the region as well as to introduction of macroeconomic reforms in most Member States, which occurred at the end of the 1980s and beginning of the 1990s. However, economic performance on the whole has remained fragile and most SADC countries continue to be exposed to natural disasters and adverse external shocks. 2.2.2.2 SADC Structure of Production 9 7 8 10 The structure of production of SADC countries is 11 6 5 12 characteristic of a developing region where large shares 4 of GDP originate in primary sectors of production viz: 12 3 13 agriculture and mining, whose total contribution is, on average over 50% of total GDP. Statistics on SADC show that only Mauritius and South Africa have sizeable manufacturing sectors at approximately 25% of GDP. The formerly sizeable south africa 65.7% manufacturing sector of Zimbabwe was not sustained due to several factors, including the influx of cheaper foreign goods, higher input costs and shortages of foreign exchange for importing inputs. This country has gradually become more reliant on services than before. The rest of Source: SADC Statistics Database, 2003 the Member States have relatively small manufacturing sectors. They depend on services, agriculture or mining.