The Southern African Development Community (SADC) has called for deeper regional integration as intra-regional trade recorded only modest growth in 2025 amid mixed performance across key economic indicators.
Intra-SADC trade reached 20.2% in 2025, driven by manufactured products, fuels, machinery, vehicles and agricultural goods, SADC Executive Secretary Elias Magosi said at the Ordinary Meeting of the SADC Council of Ministers in Durban.
Magosi said economic transformation remained at the centre of SADC's regional integration agenda, but stressed the need for member states to work more closely together to strengthen regional resilience and drive development.
Manufacturing value added as a share of gross domestic product declined from 11.3% in 2024 to 10.9% in 2025, highlighting the need for renewed efforts to strengthen industrialisation and value addition.
The region's merchandise trade balance remained positive at US$27.9 billion (R449.5bn), although it declined by US$2.2bn (R35.5bn) during the year.
Foreign direct investment increased 44% to US$11bn (R177.4bn), largely driven by strong inflows into Mozambique and South Africa.
Magosi said the increase reflected continued investor confidence in opportunities across the region, but warned that investment in research and development remained below regional and continental targets.
“No Member State has achieved the regional target of investing 1% of GDP in research and development, nor the African Union target of 1.5%,” he said.
Regional trade also continues to face disruptions from disease and extreme weather.
Recent foot-and-mouth disease outbreaks have disrupted livestock production and related trade, threatening livelihoods and market access, while floods earlier this year damaged critical infrastructure and disrupted trade.
These challenges reinforced the need for greater regional resilience and cooperation, Magosi said.
“The future of our region will increasingly depend on our ability to trust each other more and work together more to strengthen regional resilience and drive our own development agenda under our own terms,” he said.
SADC member states have reaffirmed their commitment to deeper regional integration, collective resilience and sustainable development as the bloc seeks to strengthen its economies amid geopolitical tensions and shifting global economic conditions.
