Intra-SADC trade accounted for just 20.2% of total regional trade in 2025, highlighting the persistent gap between Southern Africa’s integration ambitions and the reality facing organisations trying to source across borders.
The figure was confirmed by SADC at its 46th Summit and underscores the region’s failure to realise the full potential of its integrated market, despite a combined GDP exceeding $700 billion .
BARRIERS TO CROSS-BORDER PROCUREMENT
According to Paul Vos, Regional Managing Director of the Chartered Institute of Procurement & Supply (CIPS) Southern Africa, the barriers are well understood but stubbornly persistent.
“Despite progress towards regional integration, cross-border procurement across SADC remains complex due to differing regulations, customs requirements and supplier qualification processes,” Vos said. “The result is higher costs, greater complexity and increased risk for organisations operating across borders”.
Limited visibility of supplier capabilities remains another significant barrier. Many organisations continue to default to established local suppliers, while capable businesses elsewhere in the region remain overlooked.
SUPPLY CAPACITY CONSTRAINTS
The challenge is not only about finding suppliers but about whether the region has the capacity to meet demand. In some sectors, specialist expertise and production capacity remain limited, making global sourcing unavoidable.
“Policy reform alone will not be enough. Building stronger regional value chains will require sustained investment in productive capacity, supplier development and industrial competitiveness throughout the region,” Vos said.
This is echoed by SADC’s own assessments. A mid-term review of the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 found that “commodity dependence persists, while intra-SADC trade and manufacturing value addition remain below set targets”.
INFRASTRUCTURE AND BORDER DELAYS
Procurement teams must also navigate challenges beyond supplier availability and regulation. Energy shortages, logistics bottlenecks, and pressure on key mining and transport corridors continue to influence sourcing decisions across Southern Africa.
Border delays, customs complexity, and inconsistent trade processes further erode the potential benefits of buying regionally. Greater trade facilitation will be critical if regional procurement is to reach its full potential .
SADC has identified non-tariff barriers as a major obstacle, with a dedicated Technical Working Group established to address them. At a meeting in April 2026, Member States identified concrete mechanisms to resolve 52% of reported non-tariff barriers.
FATF GREYLIST EXIT CREATES OPPORTUNITY
Recent developments have created opportunities for regional trade and investment. South Africa’s exit from the Financial Action Task Force (FATF) greylist has strengthened confidence among investors and trading partners.
“Improved confidence in financial governance should help reduce friction in cross-border trade and support greater regional investment and collaboration,” Vos said.
TOWARDS HARMONISED PROCUREMENT STANDARDS
Vos argues that a more enabling regional procurement environment will require greater alignment of procurement standards, supplier qualification requirements and regulatory frameworks. This could reduce complexity and compliance costs while increasing confidence among buyers and suppliers operating across borders.
“Harmonisation does not mean removing national autonomy. Instead, the goal would be to make cross-border procurement and trade simpler and more efficient,” he said.
Experience from the European Union, ASEAN and the Gulf Cooperation Council shows that trade agreements alone are not enough. Common standards, regulatory alignment, infrastructure investment and digital connectivity all play a role in building competitive regional supply chains .
FROM PLANS TO EXECUTION
SADC has developed a range of instruments aimed at boosting intra-regional trade, including the Simplified Trade Regime Framework, which seeks to address complex rules of origin and eliminate non-tariff barriers .
But Vos says attention must now turn towards implementation.
“The challenge is no longer defining the opportunity but acting on it. Governments, businesses and procurement leaders all have a role to play in building stronger regional value chains” .
He identifies energy, logistics, mining, manufacturing and agriculture as sectors where greater regional collaboration could produce tangible results and create momentum for deeper integration .