President urges faster SACU reforms

President Cyril Ramaphosa has called on member states of the Southern African Customs Union (SACU) to accelerate reforms and strengthen regional cooperation to help the bloc respond to a changing global trade environment.

Delivering closing remarks at the 9th SACU Summit

in Cape Town on Friday, President Ramaphosa said leaders had reached consensus on key strategic issues after what he described as frank and productive discussions.

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.

Member states had made significant advances in industrialisation, investment promotion, export promotion, trade facilitation, logistics and the implementation of the African Continental Free Trade Area (AfCFTA).

The President said 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.

The summit also welcomed the results of joint regional enforcement operations targeting illicit tobacco and tobacco products. According to President Ramaphosa, the operations had led to the seizure of illicit goods, arrests, financial penalties and the recovery of excise duties and value-added tax.

He said 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.

He said the summit had also emphasised the importance of concluding trade negotiations more quickly to diversify export markets and improve the region's resilience amid geopolitical tensions and changes in global trade patterns.

Leaders noted progress in developing a financing mechanism for cross-border industrialisation and infrastructure projects and reaffirmed the importance of diversifying trade as a strategy to strengthen economic resilience.

President Ramaphosa's term as chair of the SACU Summit ends on 14 July. – SAnews.gov.za