The report reviews progress under the Nordic/SADCC Initiative on expanded economic and cultural co-operation btween the Nordic countries and the SADCC Member States during the period 1986-1989. It concludes that, in view of the ambitious objectives of the Initiative, only modest results have been achieved thus far. Expansion of economic co-operation in trade and investment has not occurred to any appreciable degree, mainly due to an unfavourable economic environment in the SADCC region. A good basis has been laid, however, for increased future inter-regional collaboration as undertakings tend to have a long gestation period.