2 8 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 debts and the free flow of capital through liberalisation legal and policy frameworks through the formulation and of exchange controls. Another challenge is that despite adoption of appropriate instruments such as protocols substantial liberalisation in the financial sector, small and policy and strategy guidelines. These are examined in and medium enterprises continue to face difficulties in the subsequent sections. accessing credit from the banking system. There is also a need for financial reforms for the non-bank finance institutions. Such reforms should address the case for 3.3.2 ENERGY women entrepreneurs, who are constrained by laws and procedures, which deny them full capacity to access 3.3.2.1 credit. Review of Current Energy Policies and Strategies The other serious challenge facing the region is how The overall goal of the Energy Sector is to ensure the to stamp out money laundering, which is assuming great availability of sufficient, reliable, least-cost energy services proportions not only in the region, but also at the continental level. that will assist in the attainment of economic efficiency and the eradication of poverty whilst ensuring the environmentally sustainable use of energy resources. The sub-sectors for cooperation include woodfuel, petroleum 3.3 INFRASTRUCTURE AND SERVICES 3.3.1 OVERVIEW The development of infrastructure and services is critical for promoting and sustaining regional economic development, trade and investment. The potential for deepening integration through the sharing of the production, management and operations of infrastructure facilities, hubs, development corridors or poles is considerable. While the overall picture is one of inadequate coverage, poor maintenance, weak financing and inefficient management systems, differences do exist across the countries in the Region. Many countries have and natural gas, electricity, coal, new and renewable sources, and energy efficiency and conservation. The SADC Protocol on Energy was signed in August 1996 and came into force in April 1997 after receiving the required number of ratifications. The Protocol aims at the harmonisation of national and regional energy policies; cooperation in the development of energy and energy pooling; ensuring the provision of reliable, continued and sustainable energy services in the most efficient and costeffective manner; promoting joint development of human resources and organisational capacity building; and cooperation in research, development, adaptation, dissemination and transfer of low-cost energy technologies. The Protocol provides the broad legal and policy framework for cooperation in the energy sector and is operationalised through a SADC Energy Cooperation Policy and Strategy and an SADC Energy Sector Action Plan been able to upgrade and expand their infrastructure approved by the SADC Council of Ministers in 1996 and assets and improve services through a combination of 1997 respectively. The Activity Plan approved by Council in policy changes, institutional reforms and conducive August 2000, identifies four priority areas as Energy Trade, investment climate. These policy reforms have paved the Information and Experience Exchange, Training and way for increased private sector involvement in the Organisational Capacity Building, and Investment and provision of infrastructure resulting in commercialisation Funding. In essence the Activity Plan is a detailed pro- and cost recovery measures being put in place. The major gramme of activities to be implemented over a 3-5 year challenge now facing Governments is to establish period. regulatory frameworks to foster fair competition, support the emergence of a regional market and ensure that end 3.3.2.2 users obtain the expected benefits. Evaluation of Current Policies and Strategies In order to enable the region to meet the challenges The Energy Policy Framework is comprehensive and its of infrastructure development, SADC has put in place emphasis on the availability of sufficient, reliable and