This report identifies challenges facing SADC and the foreign donor agencies and makes a number of proposals. This includes better mechanisms for consultations and dialogue, improved harmonisation of external support and better alignment with SADC priorities. The report also argues that SADC and the SADC Secretariat should exercise stronger leadership in their engagement with the foreign donors. Major reforms in the way aid is delivered and managed are required if aid shall succeed in advancing regional co-operation and contribute to the reduction of poverty in Southern Africa.