6 6 S O U T H E R N A F R I C A N 4.10.2 Overall Goal D E V E L O P M E N T • Harmonization of policies, legal and regulatory frameworks that address the business environment and the free movement of all factors of production; The overall goal of this intervention is to facilitate trade and financial liberalization, competitive and diversified C O M M U N I T Y • Formulation and implementation of stability-oriented industrial development and increased investment for macroeconomic policies to achieve macroeconomic deeper regional integration and poverty eradication convergence and engineer credibility; through the establishment of a SADC Common Market. • Promotion of SADC as an attractive investment destination based on the observance and implementation of the Investment MoU and subsequently the 4.10.3 Areas of Focus • Market integration through the establishment of the Protocol on Finance and Investment; • mining development strategies; SADC free trade area, the SADC Customs Union and the SADC Common Market; Consolidation of implementation of the industrial and • Enhancing competitiveness through industrial and • Attainment of macroeconomic convergence; mining development and promotion of increased • Development and strengthening of financial and productivity in productive sectors; taking advantage of capital markets; the rich natural resource base in relation to commodity • • expansion and diversification of industry; Increasing levels of investment in SADC including FDI; and • market, as well as sustainable development, Attainment of deeper monetary cooperation; Enhancing SADC competitiveness in industrial and • Entrepreneurship development with particular emphasis on small and medium scale enterprises. mining and other productive activities for effective participation in the global economy. 4.10.4 Stratgies • • Fast tracking the implementation of the Protocol on the outcome of the mid-term review to be completed by June 2004); Target 2: Completion of negotiations of the SADC by, and take into account the recommendations of the Customs Union - 2010; mid-term review of the SADC Protocol on Trade. Target 3: Completion of negotiations of the SADC However, fast tracking in those areas that have Common Market - 2015; already started doing so should continue; Target 4: Diversification of industrial structure and Negotiations on the establishment of a SADC exports with more emphasis on value addition Customs Union should commence in 2005 having across all economic sectors - 2015 taking into fulfilled some prerequisites such as ensuring that the account the following indicators: FTA is established, carrying out studies on impact of a • Diversify (increase of non-traditional exports) and Customs Union and then commence negotiation for a sustain exports growth rate of at least 5% annually; common external tariff. The problem of multiple • Increase in intra-regional trade to at least 35% by have been resolved by then; Preparations for the establishment of a monetary union; • Target 1: Free Trade Area - 2008 (to be informed by Trade to achieve the FTA, which should be informed membership to many regional organisations should • 4.10.5 TARGETS Negotiations on establishment of SADC Common Market should commence soon after establishing a customs union; 2008; • Increase in manufacturing as a percentage of GDP to 25% by 2015. Target 5: Macroeconomic convergence on: • Inflation rate single digit by 2008, 5% by 2012, and 3% by 2018;