Southern African Development Community

The Southern Africa Development Community (SADC) is an inter-governmental organization that promotes economic growth, as well as peace, security, and poverty alleviation, within the region. Its members include Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe. Standards Alliance is looking to engage regionally with the SADC Cooperation in Standards (SADCSTAN), and has received requests for country-specific engagement with Lesotho, Malawi, and Zambia. Trade Africa was an initiative between the United States and sub-Saharan Africa that was initiated in 2013 with countries of the East African Community to increase continental and regional trade within Africa, and to expand trade and economic ties among the Unites States, Africa, and other global markets. In 2014, the Trade Africa Initiative expanded to involve new partners, including Cote d’Ivoire, Ghana, Mozambique, Senegal, and Zambia. In support of Trade Africa, the Standards Alliance partnered with Cote d’Ivoire, Ghana, and Senegal to improve compliance with the WTO rules on trade facilitation and technical barriers to trade.”

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Priority Sectors

Priority sectors may be added based on interest from the private sector in either country.

Relevant Agreements and Regional Organizations

• WTO Agreement on Technical Barriers to Trade (TBT)
• Common Market for Southern and Eastern Africa (COMESA)
• Southern African Customs Union (SACU)
• African Organization for Standards (ARSO)

Additional Information

• CIA World Factbook: Lesotho
• CIA World Factbook: Malawi
• CIA World Factbook: Mozambique
• CIA World Factbook: Zambia
• U.S. Trade Representative background information on Lesotho
• U.S. Trade Representative background information on Malawi
• U.S. Trade Representative background information on Mozambique
• U.S. Trade Representative background information on Zambia

LESOTHO

Lesotho's GDP grew by 2.5 percent in 2015, down from 3.4 percent in 2014. U.S. goods exports to Lesotho reached $0.9 million in 2015, while goods imports from Lesotho reached $332 million, resulting in a U.S. trade deficit of $331 million. Lesotho is eligible for preferential trade benefits under the U.S. African Growth and Opportunity Act (AGOA). The United States has signed a Trade, Investment, and Development Cooperative Agreement (TIDCA) with the Southern Africa Customs Union (SACU), of which Lesotho is a member. Top U.S. goods exports to Lesotho consist of cotton and yarn. Approximately 80 percent of U.S. imports from Lesotho include knit apparel and woven apparel.

MALAWI

Malawi's GDP growth decreased in 2015 to 3.0 percent after several years of more than 5 percent annual growth. In 2015, U.S. exports to Malawi totaled $37.2 million. The same year, U.S. imports from Malawi equaled $61.4 million, bringing the balance of trade to a deficit of $24.2 million. U.S. goods exports to Malawi generally consist of cereals, pharmaceutical products, baking related products, and machinery. Top U.S. goods imports from Malawi include tobacco, knit apparel, spices, coffee and tea, edible fruits and nuts, and sugars. Malawi is eligible for preferential trade benefits under the U.S. African Growth and Opportunity Act (AGOA). The United States has signed a Trade and Investment Framework Agreement (TIFA) with the Common Market for Eastern and Southern Africa (COMESA), of which Malawi is a member.

MOZAMBIQUE

Mozambique is one of Africa’s most promising markets with an average annual GDP growth of 7% for the past two decades. In 2015, Mozambique continued this impressive trend as GDP grew by 6.3%. In 2015, U.S. exports to Mozambique totaled $264 million. The top U.S. exports to Mozambique included mineral fuel (petroleum coke), machinery, iron/steel, vehicles, and fats and oils. In 2015, imports from Mozambique were $96 million, decreasing 4.0% from 2014. The top U.S. imports from Mozambique were ores and slag, precious stones (rubies), edible fruit and nuts, and tobacco. Agricultural products account for more than 25% of the United States’ total imports from Mozambique. Mozambique is eligible for preferential trade benefits under the U.S. African Growth and Opportunity Act (AGOA) and also qualifies for textile and apparel benefits. The United States signed a Trade and Investment Framework Agreement (TIFA) with Mozambique in 2005 and a Bilateral Investment Treaty (BIT) that came into force in 2005.

ZAMBIA

Zambia's economy has experienced impressive growth in recent years. Its GDP has grown at a rate of more than 6 percent annually from 2005 to 2012. U.S. goods exports to Zambia totaled $84.2 million in 2015. U.S. goods imports from Zambia totaled $47.1 million in the same year, bringing two-way trade to goods, a U.S. surplus, to $37 million. U.S. goods exports to Zambia typically include vehicles, machinery, baking-related goods, and optic and medical instruments. U.S. goods imports from Zambia include iron and steel, nickel and nickel products, tobacco, tea, and hides and skins. Zambia is eligible for preferential trade benefits under the U.S. African Growth and Opportunity Act (AGOA). The United States has signed a Trade and Investment Framework Agreement (TIFA) with the Common Market for Eastern and Southern Africa (COMESA), of which Zambia is a member.