Abstract:
The purpose of the study was to investigate and analyse the economic performances of three SADC countries, Botswana, Namibia and Zambia before and after the signing of the MoU on Macroeconomic Convergence during the period of 1990 and 2007. Four macroeconomic indicators namely, budget deficit as a percentage of GDP, current account balance as a % of GDP, real exchange rate and external debt as a % of GDP were used. Using regression analysis techniques, the study found that there was fair favourable economic performance by Botswana and Namibia during 1990 and 2007. Zambia on the other hand had an unfavourable economic performance from 1990 until late 2002. From the estimate results, the study further concluded that the variables in most instances were useful for monitoring regional integration and determining the country‟s macroeconomic performance. Each country had a different variable that determined its economic performance better than the other did. Policies put in place to ensure that the set targets are being achieved are not as efficient yet as the impact of the MoU and its policies are yet to be felt. The study concluded by recommending that more research be done on all the indicators to allow policy implementers to recognise what the main focus should be in achieving regional integration and other SADC objectives. The researchers also recommended that more emphasis should also be placed on mobilising resources that would lead to the achievement of the regional bloc set targets.
