The Protocol on Finance and Investment (FIP) is one of the protocols entered into by the Southern African Development Community (SADC) member states to give legal and practical effect to their commitments under the SADC Treaty. The SADC Treaty is the anchor that provides the legal basis for SADC as a regional community. The FIP sets out commitments made by the fourteen member states to a) improve the investment climate in each state and region, and b) achieve the preparation, cooperation and harmonisation necessary for regional financial integration. The FIP was signed in August 2006 by all SADC member states1 and was ratified by the required two-thirds majority of member states during 2010. Consequently, the FIP came into force on 16 April 2010. The status of implementation across the region was not well understood, and there is no measurement framework in place for monitoring future progress or regression.

Purpose

The purpose of this report is fourfold:

  • To document the status of FIP implementation across fourteen member states as at July 2011;
  • To present a measurement framework of indicators to monitor implementation progress;
  • To present the indicators for 2011 as a baseline; and
  • To identify strategic interventions that will support the implementation of the FIP.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), on behalf of the German government, and the FinMark Trust commissioned economic consultants, Genesis Analytics, to undertake these tasks on behalf of the SADC Secretariat’s Directorate of Trade, Industry, Finance and Investment (TIFI).