SADC Executive Secretary Elias Magosi has called on the region’s Development Finance Institutions (DFIs) to play a bolder, more collaborative role in addressing persistent economic and social challenges across Southern Africa. Speaking at the SADC DFIs Chief Executive Officers’ Forum in Gaborone, Magosi urged DFIs to step up and help governments confront poverty, inequality, unemployment, and limited access to affordable development finance.

Hosted under the theme “Bold Steps, Shared Future: Building the DFRC of Tomorrow,” the forum brought together government officials, private sector representatives, and development partners to reflect on how regional DFIs can better respond to the evolving economic landscape in Southern Africa.

Magosi praised the SADC Development Finance Resource Centre (DFRC) and its CEO, Zwelibanzi Sapula, for convening the forum, noting that collaboration among DFIs signals strong regional commitment and urgency toward economic transformation.

“SADC is the only African Regional Economic Community without its own dedicated Development Finance Institution,” he stated, contrasting the bloc’s position with other RECs that have already established sub-regional DFIs to mobilise resources and lower the cost of capital. “DFIs remain critical vehicles for accessing and blending global capital pools for development projects,” Magosi said.

He emphasised that despite commendable resilience, the region continues to face multiple structural and external shocks, including rising food and energy prices, climate-related disruptions, and shifts in global aid and trade policies. These challenges have contributed to slowed GDP growth across member states.

With a combined GDP of approximately US$720 billion and a population of over 366 million—more than 74% of whom are youth—Magosi said the region holds vast untapped economic potential. He stressed the importance of prioritising investments in education, technology, energy, and transport infrastructure to achieve meaningful transformation.

However, he warned that achieving the SADC region’s Sustainable Development Goals would require bridging an annual financing gap estimated at US$402 billion through 2030. “This necessitates scaling up domestic resource mobilisation, leveraging private investment, and attracting increased external financial flows,” Magosi said.

Magosi positioned the DFRC as a pivotal institution for realising regional development and integration goals under the SADC Regional Indicative Strategic Development Plan (RISDP) 2020–2030. He said the DFRC is being repositioned as not only a knowledge partner, but also a strategic enabler of infrastructure development and financial sustainability across the region.

“While there is an urgent need to finance regional infrastructure, the fiscal space to do so independently remains limited,” he said, calling on development partners and multilateral institutions to support DFRC’s capacity building and investment mobilisation efforts.

The secretary General reaffirmed the SADC Secretariat’s support for the DFRC’s strategic transformation and its four strategic pillars: regional impact, rigorous execution, smart partnerships, and financial sustainability.

“The DFIs are trusted by funders and governments, but they must now go beyond the role of recipients. They must become key problem-solvers, helping governments tackle the recurring socio-economic challenges that hinder sustainable development,” he said. “SADC stands ready to walk this journey with you.”