Staff Reporter
Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, opened the high-level SADC Committee of Ministers of Finance and Investment meeting in Victoria Falls,today, with a stark warning: Southern Africa faces mounting economic pressures from ballooning debt, climate change, and shifting global economic dynamics.
In a strongly worded address, Ncube said over half of developing countries are now in “debt distress,” with repayments having surged by 35% since 2023, constraining government spending on essential sectors.
“We are witnessing a tightening of fiscal space across emerging markets. This limits our ability to respond effectively to economic shocks and undermines our development goals. But amid the challenge, lies an opportunity well-managed economies can still attract significant foreign investment,” he said
Minister Ncube, Chair of the SADC Finance and Investment Committee together with the co-chairs ofthe Peer Review Panel, called for “scalable and sustainable solutions” to address what he called “an unfolding youth employment crisis.” Over 360 million young Africans are projected to enter the job market in the next decade, but only 150 million jobs are expected to be available.
“This is not just a statistic. It is a ticking time bomb, respond, we must invest in AI, FinTech, green energy, agribusiness and skills development. The private sector must be our partner in building a future-ready workforce,” he warned.
The minister also revealed that SADC had made significant progress in operationalising the long-awaited Regional Development Fund, which is now set to function as a Special Purpose Vehicle with a permanent capital structure. Zimbabwe has been instrumental in pushing this process forward, and Ncube urged all member states to ratify the agreement without delay.
“This fund represents our collective commitment to regional integration. Let us not lose momentum,” he said.
Climate shocks also featured prominently. Ncube said El Niño-induced droughts and cyclones had devastated agricultural output across much of the region.
“In 2024, several countries received their lowest rainfall in over 40 years. Millions have been affected by droughts and floods. Geopolitical tensions and trade disruptions were compounding the region’s fragility,” he noted
Calling for regional unity, he said, “No country can weather this storm alone. We must build resilience together, or we will fall apart separately.”
The Victoria Falls meetings will deliberate on macroeconomic convergence, peer review outcomes, and anti-money laundering frameworks, as SADC strives to navigate an increasingly unstable global landscape.
