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Initiative for Southern Africa
>> Regional Overview >> ISA Overview
Previous Years' Activities
2002, 2001, 2000, 1999
Last updated: 20
THE DEVELOPMENT CHALLENGE: Southern Africa, a region that encompasses 14 countries, has substantial natural resources, a market of $179 billion, and a total population of 190 million. The Southern African Development Community (SADC) unites these countries in a regional framework with broad economic and political goals. Strong economic growth in some member states pushed overall real economic growth in the region to 3.5% in 2000, compared with 1.9% in 1999. The national interests of the United States in the southern Africa region include trade and investment, enhanced regional security and stability through improved governance and democratization, HIV/AIDS control, improved natural resource management, and hunger prevention.
Countries supported by the Initiative for Southern Africa include Angola, Botswana, the Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, the Seychelles, Swaziland, Tanzania, Zambia, and Zimbabwe. Over the past ten years, political and economic policy reforms by southern African governments plus positive U.S. engagement have resulted in a sustained social and economic transformation in the region. Democracy is taking hold; a majority of southern African nations hold regularly scheduled elections that increasingly meet internationally established norms. South Africa transitioned to democratic rule in 1994, and its annual economic growth rate since then (2.7%) is three times higher than during the apartheid era. Namibia has managed a similar democratic and economic transition. Mozambique, Zambia, Malawi and Tanzania have taken positive steps towards sustaining democratic processes and market-oriented economic reforms, while Botswana has used its democratic institutions to build one of the most prosperous nations in sub-Saharan Africa. The region is economically and politically resilient and can serve as a catalyst for growth in all of Africa.
Notwithstanding this progress in achieving democratic reforms and economic growth, the region still faces formidable challenges. Overall average economic growth still remains well below the six to seven percent level required to lift the region from poverty. Achieving this rate of growth will require higher levels of domestic savings, foreign direct investment, and external development assistance. Moreover, the region continues to experience high rates of unemployment and poverty. An estimated 40% of the people of the region live in abject poverty. Between 30% and 40% of potential workers are either unemployed or have low-paying jobs in menial labor or agriculture. These high rates of poverty and unemployment could lay the groundwork for future regional political instability. Most SADC countries are landlocked, resulting in high import and export costs. Existing transportation and communications networks are inadequate to support effective international trade and business expansion. High HIV/AIDS infection rates, ranging from 10% in Mauritius to 35% in Botswana, pose a severe threat to continued growth and stability over the medium and long term. Continued violence and instability in Zimbabwe, the Democratic Republic of the Congo, and Angola adversely affect the investment climate throughout the region and reduce opportunities for effective use of natural resources.
THE USAID PROGRAM:
FY 2002 Estimate: $17.367 million FY 2003 Request: $24.731 million The Initiative for Southern Africa is USAID's regional development program covering southern Africa. It is managed from the agency's Regional Center for Southern Africa in Gaborone, Botswana, and is distinct from USAID's bilateral country programs in the region. The Initiative for Southern Africa includes activities that address: 1) establishment and strengthening of democratic practices and norms; 2) expansion of trade and investment; 3) improvement in management of shared wildlife and natural resources; and 4) agricultural development through technological changes in farming practices and increased trade in farm products. These objectives build the capacity of regional institutions; harmonize policies in the trade, customs, agriculture, environment, and democracy sectors; increase the participation of the private sector in development; and generate employment and income growth. USAID will use FY 2002 funds to implement ongoing regional programs in democracy, trade, agriculture and natural resources management. The specific activities to be funded with FY 2002 and FY 2003 appropriations are described in more detail in the following Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED: USAID is not requesting new funds in FY 2002 for the following objective, but will utilize funds already appropriated in previous fiscal years.
Number: Title: Last Notified: Planned Completion: 690-005 Create Capacity for Informed Decision Making FY 98 FY 2002 OTHER PROGRAM ELEMENTS: Through the Education for Democracy and Development Initiative, USAID is providing equipment to the University of Botswana to improve the quality of its course offerings and to conduct outreach programs increasing women's enrollment in science and mathematics programs. USAID is funding the rehabilitation of two sections of the Botswana's major commercial highway, using regional International Development Assistance (IDA) flood supplemental appropriations. The USAID Office of Foreign Disaster Assistance provides training for disaster management in several countries in southern Africa.
OTHER DONORS: USAID's regional activities are well coordinated with those of other donors. The European Union and USAID are the two largest donors to SADC countries in the trade and investment, natural resource management, and agricultural sectors. France and USAID provide joint regional assistance in agricultural policy analysis. Sweden, the United Kingdom, Germany and the World Bank join with USAID in offering regional technical assistance concerning management of water resources. Along with Germany, Sweden and the African Development Bank, USAID promotes regional trade and the development of transportation corridors in southern Africa.
Program Data Sheets
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Last Updated on: May 29, 2002 |
