A call was made for member states of the Southern African Customs Union (SACU) to accelerate reforms by President Cyril Ramaphosa at the 9th SACU Summit in Cape Town last week.
Image: Phando Jikelo | GCIS
Southern African Customs Union (SACU) should accelerate reforms, President Cyril Ramaphosa said at the 9th SACU Summit in Cape Town.
Ramaphosa said that cooperation between SACU member states is essential to help the bloc respond to a changing global trade environment.
“SACU comprises Botswana, Eswatini, Lesotho, Namibia, and South Africa. The summit considered regional and global developments affecting the customs union, including growing protectionist measures and shifts in international trade. Leaders endorsed recommendations from the SACU Ministerial Retreat held on 24 June and noted progress in implementing the SACU Strategic Plan for 2022–2027.”
Ramaphosa added that work had begun on regional value chains in fertilisers, agrochemicals and seed production, while initiatives in the automotive and battery manufacturing sectors were also progressing.
“A regional investment roundtable is expected later this year to mobilise funding for these industries,” he said.
Ramaphosa said that work was also under way to develop strategies for the automotive and minerals beneficiation sectors, alongside a long-term industrialisation strategy for the customs union.
“All SACU member states are now implementing tariff concessions under the AfCFTA, the President said, adding that leaders agreed on the need for an export strategy to boost intra-African trade and maximise the benefits of existing trade agreements.”
Minister of Trade, Industry and Competition, Parks Tau, said the summit reaffirmed SACU's continued relevance as a catalyst for regional development and economic transformation.
“The outcomes of this summit reaffirm our collective commitment to building a stronger, more industrialised, and globally competitive SACU. As the world's oldest functioning customs union, SACU continues to demonstrate that regional cooperation remains one of our greatest strengths in advancing inclusive growth, expanding trade and improving the lives of our people,” he said.
Tau added that member states had reaffirmed their commitment to positioning SACU as an engine for regional integration, industrial and economic diversification, expanded intra-regional trade and investment, policy harmonisation and sustainable economic development.
“Industrialisation remains at the centre of SACU's development agenda. By strengthening regional value chains, promoting investment, improving trade facilitation and supporting productive industries, we are laying the foundation for sustainable economic growth, job creation and shared prosperity across Southern Africa,” said Tau.
Tau said that member states also recognised the importance of strengthening cooperation in customs modernisation, trade facilitation, resource mobilisation and the implementation of the African Continental Free Trade Area (AfCFTA), while continuing to pursue coordinated engagement in regional and global trade matters.
“The future of SACU requires the right ingredients brought together through partnership and shared purpose. Industrialisation, investment promotion, trade facilitation, AfCFTA implementation, resource mobilisation and effective institutions are all essential ingredients in building a customs union that delivers meaningful benefits for our citizens.”
Tau said South Africa remains committed to working closely with fellow member states, including the incoming Chair of Summit, Botswana, to implement the decisions of the summit and advance a re-imagined SACU that supports industrialisation, investment, trade and inclusive economic development across the region.
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