Regional integration is often regarded as a key for accelerated and sustainable
economic growth. Southern Africa is home to the oldest existing customs union,
SACU, as well as a larger economic grouping that has its origins in the anti
apartheid struggle, SADC. Both organisations have seen substantial changes over
the past 15 years. SACU eventually agreed upon a new agreement that allowed for
more influence for the smaller economies in the customs union. Since the demise of
apartheid, SADC has strengthened its focus on economic development, and
adopted a Regional Indicative Strategic Development Plan (RISDP) to outline its
social and economic policies and priorities. Sound macroeconomic policies are a
key requirement in achieving the objectives and deepening regional integration. A
Memorandum of Understanding (MoU) on Macroeconomic Convergence was
adopted in 2001. The Ministers of Finance and Investment also agreed at the time
on a set of indicators to monitor macroeconomic convergence, although the
usefulness of some of the indicators remains in dispute. Timeframes were set for
when these targets should be achieved.