REGIONAL INDIC ATIVE STRATEGIC DEVELOPMENT PL AN 1 1 In the period 1991 to 1999, there was positive growth F i g 2 : G RO W T H R ATE S I N S A D C 1999-2002 of manufacturing value added (MVA) in many SADC Member States. During this period, the un-weighted average rate of growth of MVA in the SADC was 5.2 3.50% percent. The un-weighted average rate of growth declined 3.23% during the first five years of the decade as a few countries 3.00% in the region experienced negative rates of growth of MVA. 2.83% 2.74% 2.50% 2.2.2.3 Per Capita Income SADC's average level of per capita income, as measured 2.00% by Gross National Income (GNI), is very low and has been declining in most countries over the last three decades. In 1.50% the year 2002, SADC average GNI per capita stood at 1.47% US$1,563. Seychelles, a SADC Member-State with approximately only 82,000 inhabitants, has the highest GNI per 1.00% capita at US$6,530. Other high-income countries in the region include Mauritius (US$3,830), Botswana (US$3,100) 0.50% and South Africa (US$2,820). The low per capita income countries in the SADC region, with income levels below 0.00% US$500, are DRC (US$80), Malawi US$160), Mozambique 1999 2000 2001 2002 (US$210), Tanzania (US$270), Zambia (US$320), and Zimbabwe (US$480). Source: SADC Statistics, 2003 If the region is to achieve the Millennium Development goal (MDG) of halving the poverty level by 2015, GNI In addition to having a small manufacturing sector, SADC economies do not produce a diversified range of manufactured products. They produce a similar range of products such as foodstuffs, beverages, tobacco, textiles, clothing and footwear, which are agricultural-resource based. South Africa and Zimbabwe have significant mineral-resource based manufacturing industries also. But vertical integration in the different structures of production are lacking. Manufactured goods contribute substantial proportions to total formal merchandise exports in South Africa, Mauritius and Zimbabwe. Some of these countries per capita must grow consistently over the next few years at rates of approximately 10 per cent. This is of particular relevance to the less developed countries in the region. GNI per capita growth should also be accompanied by appropriate policies of wealth distribution to achieve poverty reduction. Main contributing factors to the current level of per capita income include distorted and underdeveloped structures of production, poor economic performance, problems in macro-economic management and unfavourable international economic environment. exports' levels are higher than the 16 percent average ratio for Middle East and North Africa. But they were all below the world average ratio of 78 percent and the 2.2.2.4 Inflation and Interest Rates average ratios for all low and all high-income countries of As compared to the 1980s, most SADC Member-States 75 percent and 81 percent, respectively, in 1997. have performed relatively well in stabilizing inflation In mid 1990s, the average percentage of the labour rates, particularly since the early 1990s. In 2002 the force in industry in SADC was only slightly higher than 15%. average inflation rate in SADC was approximately 25%. The following countries had above average percentages: Sound macroeconomic policies and inflation targeting Mauritius, South Africa, Botswana, and Namibia. pursued by most Member States are the underlying