In the fourth quarter of 2008, the South African economy contracted for the first time in a decade, officially entering a recession in the first quarter of 2009, at the same time recording the worst quarterly economic performance since the 1980s. Domestic financial markets also suffered as investors became increasingly risk averse.
  In general, most countries in Africa are forming regional economic integration arrangements in order to; secure access to larger markets and enhance trade flows and in the process attract the much needed foreign direct investments; lower trade costs among neighbours; leverage or lock in domestic reforms; create a framework for regional cooperation and resource pooling; increase their bargaining power and political cohesion.