South Africa takes SADC chair as regional trade and growth slow

South Africa has taken over the chairmanship of the Southern African Development Community as the 16-member bloc faces a familiar problem: economic growth is improving, but trade between its members remains below its potential. 

The leadership change comes as SADC seeks to increase regional trade, strengthen manufacturing and remove barriers that make it harder and more expensive for companies to move goods across borders.

SADC has identified the removal of non-tariff barriers as a key priority for regional trade.

President Cyril Ramaphosa is also taking the chair at a politically sensitive time. Protests over undocumented migrants in South Africa forced tens of thousands of people, mainly from Zimbabwe and Malawi, to leave the country. 

Speaking ahead of the SADC summit in Durban, Ramaphosa said South Africa was “deeply concerned and ashamed” by the treatment of foreign nationals. “We cannot preach integration at summits and practice exclusion in our streets,” he said.

Trade barriers weigh on growth 

SADC’s economy grew 3.4% last year and is expected to expand 3.9% in 2026, according to the figures provided in the regional assessment.

But growth remains below the bloc’s 7% target, with Zimbabwe the only member to reach that target in 2025. 

Manufacturing is another concern. Its contribution to the regional economy fell to 10.9% in 2025, according to South African government figures, leaving SADC well short of its goal of raising manufacturing’s share of GDP to 30% by 2030.

South Africa drives regional trade 

South Africa exported $28.3 billion in goods to SADC countries in 2024 and imported $6.8 billion, according to data compiled by the Trade Law Centre. SADC accounted for 91% of South Africa’s intra-African exports, with machinery, industrial goods, food and consumer products among the main shipments. 

Remittances also show the close economic ties. More than R112 billion ($6.9 billion) was sent from South Africa to SADC countries between 2016 and 2024, with Lesotho, Zimbabwe, Mozambique and Malawi accounting for most of the payments.

Industry and infrastructure in focus 

South Africa plans to use its chairmanship to push industrial development, regional supply chains and infrastructure investment.

The government also wants more critical minerals and agricultural products processed within the region instead of being exported in raw form. 

SADC’s regional development plans include efforts to improve trade corridors and address bottlenecks at major border posts.

The bloc has identified delays, poor infrastructure and complex customs procedures as obstacles that raise costs for businesses. 

South Africa is the region’s largest industrial economy and a major supplier of manufactured goods to its neighbors.

Its companies, factories, banks and logistics networks are closely tied to markets across Southern Africa, giving Pretoria significant influence over regional trade. 

For SADC, the test is whether South Africa can turn that economic influence into easier cross-border trade, stronger manufacturing and more investment while rebuilding trust among neighboring countries.