This investment case focuses on boosting agricultural productivity and resilience through the development of irrigation infrastructure powered by renewable energy. The project will mobilize public and private financing to support priority value chains including soybeans, rice, cotton, and wheat. Irrigation water will be sourced from two main systems: small reservoirs located in Angola, Mozambique, and Malawi; and solar-powered irrigation pumps deployed in Zambia, Zimbabwe, and South Africa.

The total investment is estimated at USD 402.53 million, of which USD 218.14 million will be contributed by Member States. The project has a projected internal rate of return (IRR) of 20.5% and a net present value (NPV) of USD 235.74 million, making it financially attractive. Specific investments will include the establishment of shallow irrigation systems, procurement of irrigation equipment such as solar pumps, fenced enclosures, and drip irrigation kits. The initiative will also introduce an integrated water governance framework at the basin level and smart subsidy mechanisms to incentivize private sector participation. This combination of infrastructure and governance reforms is expected to expand irrigated land, stabilize production, and enhance resilience to climate variability.

The HIH Initiative uses geospatial, biophysical and socio-economic data, as well as advanced analytics to identify territories where agricultural transformation and sustainable management of forest and fisheries have the greatest potential for alleviating poverty and hunger. GIS analysts, economists, agronomists, and other experts bring analytics, models, and mechanisms to the Initiative. Numerous partnerships with leading research institutions across the world also enrich the informational and analytical content of these tools. The integration of technical tools informs policymaking and contributes to capacities of countries.

This initiative seeks to add value to strategic agricultural commodities by developing agroprocessing infrastructure across four designated Special Processing Zones (SPZs) located in areas with high production potential and trade connectivity. The project targets the processing of edible oil, soya meal, rice, wheat flour, animal feed, cotton lint, yarn, and fibre for both domestic and export markets.

The selected zones include soybean processing (Zambia and Zimbabwe), rice milling (Malawi and Mozambique), wheat flour production (Namibia and Botswana), and cotton value addition (Eswatini and Lesotho). The investment is estimated at USD 332 million, with USD 47.8 million committed by Member States. The project has an IRR of 16.7% and an NPV of USD 161.27 million. Investments will include SPZ infrastructure, processing facilities, and integrated textile and apparel plants. Supportive services will cover technology upgrades through a guarantee fund, manpower development, quality control systems, and market access strategies. This investment case responds to the urgent need for import substitution, value addition, rural industrialization, and regional trade competitiveness.

SADC is implementing a transformative initiative to address structural barriers to regional and global trade integration. The project aims to reduce high trade costs—such as tariffs, non-tariff barriers, inefficient customs procedures, and poor infrastructure—that currently hinder participation in value chains. It also addresses limited commodity diversification, delayed implementation of regional trade commitments, and fragmented political coordination.

This intervention is valued at USD 827 million, with full financial commitment from Member States. It is projected to deliver an IRR of 24% and an NPV of USD 215 million. Benefits include a rise in rural GDP per capita and savings from a 5% reduction in border processing time. Based on World Bank and IFPRI estimates, a 50% reduction in tariffs and 80% reduction in non-tariff measures could raise regional GDP by 0.3%, while a 5-hour time reduction at borders translates into savings of approximately USD 205 million for the private sector.

Furthermore, the implementation of the African Continental Free Trade Area (AfCFTA) is expected to reduce extreme poverty by approximately 4 million people and moderate poverty by 9 million in Southern Africa. The initiative will support the development of trade logistics, digital customs systems, harmonized trade policies, and public-private dialogue platforms. Together, these investments will unlock the region’s full trade potential, promote inclusive growth, and enhance food and economic security.

Additional impacts / benefits:

a) %50% reduction in tariffs and 80% reduction in non-tariffs measures can increase the region’s GDP by 0.3% (IFPRI 2022)

b) Reduction of ~5 hours at border represents gains for ~205 million USD for private sector

c) Extreme poverty reduction in Southern Africa attributable to AfCFTA: ~4 million people (WB, 2020)

d) Moderate poverty reduction in Southern Africa attributable to AfCFTA: ~9 million people (WB, 2020)