Single monetary union for SADC
It seems that the Southern African Development Community (SADC) is definitely embarking on the journey to create a single monetary union for the region by 2016. The SADC agenda is to create a free trade area by 2008, a SADC customs union by 2010, a common market by 2015 and a monetary union by 2016 with a single currency and central bank.
South Africa's Reserve Bank governor, Tito Mboweni says that important economic targets still have to met to make the single monetary union a reality - no kidding. These include, reducing inflation in all SADC countries to single-digit figures by 2008 and to 5% or less by 2012. The budget deficit of SADC countries has to be 5% or less of gross domestic product by 2008 and 3% or less by 2012. This is to force governments in the region to strengthen their tax collection and stop reliance on central bank borrowing, according to Mboweni. (More)