This document examines future economic co-operation in the Southern Africa region, the impact of the new domestic political dispensation in South Africa on political and economic developments in the sub-continent, and how this process can be managed to maximise the effectiveness of regional development. Recent changes are due to international competitiveness and advances in transport and communication technology. South Africa’s new stance will be that its future development is through Africa, that the problems of the region should be solved by its own governments, that continued isolation of South Africa is detrimental to African interests; and that South Africa favours a regional approach to African problems. Political relationships between South Africa and its neighbours will depend on its handling of domestic issues and the degree of international acceptance that this attracts.