SADC should sweat the small stuff
Summary
This report details a study based on interviews with approximately 50 companies to identify trade barriers within the Southern African Development Community (SADC) region. It highlights a divide in perceived constraints between Southern African Customs Union (SACU) members and non-member states, emphasizing that while large-scale infrastructure projects are necessary, smaller regulatory and bureaucratic interventions are critical for fostering business growth, particularly for small-scale entrepreneurs.
Key insights
- A study of approximately 50 companies identified the most common trade barriers in the region as customs clearance, high bureaucratic burdens, lack of infrastructure, corruption, and difficult access to skilled labour.
- There is a distinct difference in the primary trade constraints identified by different member states: Southern African Customs Union (SACU) states (South Africa, Botswana, Namibia, Lesotho, and Swaziland) rank customs regulations, inefficient bureaucracy, and infrastructure deficits as the top three constraints, while non-member states prioritize infrastructure deficits, followed by customs delays, access to skilled labour, and finance.
- Specific national challenges include banking and tax issues in Malawi and the Democratic Republic of Congo (DRC), and border crossings and corruption for South African firms. In the DRC, corruption is viewed as widespread and an accepted part of the environment by local firms, who prioritize banking reforms over anti-corruption efforts.
- Non-tariff barriers significantly hinder road freight, specifically inconsistent weighbridge readings and the requirement for cash payments for overloaded vehicles, which can force truckers to abandon vehicles to find banks. Additionally, roadblocks in Zimbabwe are cited as a major source of corruption and harassment by police.
- The current regional environment is not conducive to the growth of small-business entrepreneurs because the regional infrastructure development master plan focuses on multimillion-dollar projects across 14 countries rather than the smaller, non-infrastructure barriers that hinder smaller firms.
Cite the original document
- APA
- South African Institute of International Affairs (2012). SADC should sweat the small stuff. https://saiia.org.za/research/sadc-should-sweat-the-small-stuff/
- Chicago
- South African Institute of International Affairs. SADC should sweat the small stuff. 2012. https://saiia.org.za/research/sadc-should-sweat-the-small-stuff/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=SADC should sweat the small stuff |date=13 August 2012 |url=https://saiia.org.za/research/sadc-should-sweat-the-small-stuff/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2012sadc, author = {{South African Institute of International Affairs}}, title = {{SADC should sweat the small stuff}}, institution = {South African Institute of International Affairs}, year = {2012}, month = aug, url = {https://saiia.org.za/research/sadc-should-sweat-the-small-stuff/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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