26 Jun 2017

Botswana is the next chair of the Southern African Customs Union (SACU), effective July 15, 2017 to July 14, 2018, taking over from Swaziland.

According to a communiqué from the just ended 5th summit of SACU, the heads of state and government congratulated President Lt Gen. Dr Seretse Khama Ian Khama on assuming the chair of SACU, and commended King Mswati III for the able leadership and guidance rendered during his term.

The 5th Summit of the Heads of State and Government that was held on June 23, 2017, in Lozitha, Swaziland, was meant for heads of state and government to consider the report of the council on progress made on implementation of the roadmap to reinvigorate SACU work programme that was endorsed by heads of state and government on November 12, 2015, in Windhoek, Namibia.

The summit also noted with appreciation that in accordance with the roadmap, the SACU council of ministers convened its 3rd ministerial retreat on June 19 to 20, 2016, in Muldersdrift, South Africa, where the council discussed and agreed on broad principles that are crucial to enhancing the SACU work programme.

Additionally, as per the communiqué, the summit emphasised that SACU economies experience similar economic challenges, which can be better dealt in an integrated manner within the region.

“In this regard, the summit directed the ministerial task teams to prioritise industrial development and develop concrete cross-border projects to promote industrialisation to ensure that the region is able to optimise economic benefits to withstand global economic shocks,” adds the communiqué.

Furthermore, the summit reaffirmed the importance of SACU as an organisation in deepening regional economic integration, industrialisation and economic diversification of SACU economies, as a common goal, as well as positioning SACU to take advantage of regional and global economic developments.

It also noted and endorsed the work programme, based on outcomes of the 3rd ministerial retreat, which outlined detailed activities, key deliverable and time lines within which proposed activities will be undertaken.

The main focus areas of the work programme are; review and development of a suitable architecture for tariff-setting, rebates, duty drawbacks and trade remedies and review of the revenue sharing formula and long-term management of the common revenue pool.

Other main focus areas include; establishment of a stabilisation fund and exploring feasibility of a financing mechanism for regional industrialisation, identifying financing options for regional projects and development of public policy interventions to promote and align industrial development and value chains.

The summit also noted that the council has agreed to review aspects of the SACU Agreement 2002, to facilitate development of SACU economies.

Further, as per the communiqué, the summit also commended the council of ministers for establishing two ministerial task teams on trade and industry, and on finance, including approval of their terms of reference, to facilitate urgent implementation of the work programme.

SACU economies, the summit emphasised that experience similar economic challenges, which can be better dealt in an integrated manner within the region.

“In this regard, the summit directed the ministerial task teams to prioritise industrial development and develop concrete cross-border projects to promote industrialisation to ensure that the region is able to optimise economic benefits to withdraw global economic shocks,” adds the communiqué.
The heads of state and government expressed their appreciation to the government and people of Swaziland for the warm hospitality extended, and for hosting a successful 5th summit of SACU Heads of State and Government.

The summit that was chaired by King Mswati III, and was attended by Botswana Vice President, Mr Mokgweetsi Masisi, South Africa President, Mr Jacob Zuma, Namibia’s Minister of Finance, Carl-Hermann Gustav Schlettwein and a representative of Lesotho. ENDS