AN ANALYSIS OF MACRO-ECONOMIC CONVERGENCE IN SADC

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  • The views and opinions in this paper do not necessarily reflect the views and opinions of the SA Reserve Bank or the University.

Abstract

One of the goals of the Southern African Development Community (SADC) is macro-economic convergence leading to monetary unification and a single central bank. This goal is aligned with the goal of the African Union to build a monetary union for the entire continent in stages, starting with each of the subregions, of which SADC forms one important region. Despite views to the contrary, the current degree of compliance with the Maastricht criteria for convergence and membership of the European Union, shows that the challenges facing a SADC monetary union would not be insurmountable if the convergence criteria are viewed as permanent goals, rather than preconditions.

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