Finance Minister Enoch Godongwana says a shifting landscape, including less donor aid and global geopolitical uncertanties, calls for a structural transformation in development finance across the SADC region.
Southern African Development Community (SADC) countries have entered a new era of declining foreign aid, but unlike other periods, the reductions are large and unpredictable and may represent a lasting shock rather than a temporary disruption to their economies.
This was according to Finance Minister Enoch Godongwana, who spoke Thursday at the opening of the meeting of the Southern African Development Community (SADC) Committee of Ministers of Finance and Investment in Zimbabwe.
He said initial estimates by the IMF (International Monetary Fund) suggested a 16%–28% contraction in bilateral aid starting in 2025. These cuts were donor-driven and broad-based in scope, and not a reflection of individual country performance, he said.
“Unlike previous downturns, the current reductions are large, and highly unpredictable, representing a systemic and potentially lasting shock. The poorest and most fragile countries will be disproportionately affected,” he said.
