A region experiencing rapid change

In the early 1990s Southern Africa was still caught up in ruinous civil wars. Growth rates were marginal, national economies were isolated as a result of high customs tariffs and trade barriers.

Today the region is pacified and undergoing a period of rapid change. In political and economic terms the individual nations have united and grown as members of the Southern African Development Community (SADC). With the abolition of apartheid, the Republic of South Africa has been fully reintegrated into the international community and has used its economic power to create many new stimuli.

New success stories have been added to the well-documented stories of Botswana and Mauritius. Pragmatic economic policy-making has increasingly enabled states such as Mozambique and Zambia to attract foreign investors and develop resources. For the largest growth market, Angola, which has been posting annual growth rates in excess of 20%, the Hermes export credit guarantees were stocked up and an investment protection agreement was signed.

Today, democracy and the rule of law are firmly anchored in most states. Nations that once gave cause for concern are now making progress. Good governance is gaining ground, and mechanisms to combat corruption are increasingly put in place.

As a result of the generous debt relief, a major obstacle to growth has been removed. Such development cooperation measures which are subject to certain conditions promote democracy, good governance and sustainable development in a targeted manner.

In recent years Southern Africa has attracted record high levels of direct foreign investment with rewarding spheres of activities like energy and mining, water and electricity, telecommunications, transport, agriculture and tourism. Despite the fact that structural problems like widespread poverty, HIV / AIDS and high crime rates in urban agglomerations still need to be overcome, Southern Africa with its 250 million people is a market of great opportunities. China has already recognised this fact and has developed a strong presence in this region.