02 Jul 2018

Southern African Customs Union (SACU) will continue to operate in the interest of its citizens.

“SACU was developed, is operating, will continue to operate in the best interest and for the best interest of the citizens of SACU,” said President Mokgweetsi Masisi when briefing the media at the end of SACU summit on June 29.

He said the organisation was therefore focused on improving the welfare of the citizens of the region.

The president, who is currently SACU chairperson until July 14, said the organisation, being the oldest customs union in the world, established in 1910, provided for special responsibility for making sure that whatever the members do, was additive to the success of the organisation, whether at regional level at Southern African Development Community (SADC) or continental Free Trade Area.

“Indications are that there is a lot of attention and interest in our own success and history, so there is a lot of value in whatever has been done, which we cherish and want to share with others, elucidate and analyse so that SACU and its people benefit even more,” he said.

Meanwhile, President Masisi described the just ended SACU summit as successful, as all Heads of State or Government of the member countries, Botswana, eSwatini, Namibia, Lesotho and South Africa were present.

“We are all committed to the values, ideals and mission of SACU.

The value proposition of SACU is reconfirmed by the highest organ,” he said.

The president said with respect to progress, indicators reflected their success against their state objectives and vision. President Masisi also said SACU members were interested in the establishment of a Stabilisation Fund and wanted to contribute ideas to it.

“It is an issue that affects all of us so it is not one country against all of us.

It is a common issue and will be addressed again in September when finance ministers meet,” he said.

The purpose of the Stabilisation Fund, he said, was to address the volatility of the Common Revenue Pool (CRP) to guard against loss of funds during economic difficulties.

According to the SACU secretariat executive secretary, Ms Paulina Elago, the benefits to the member states were that they would be able to utilise the Stabilisation Fund when the CRP forecast was lower than the actual revenue collected, and revenue shares would not be negatively adjusted.

She said, additionally, fluctuations in the revenue shares brought fiscal challenges, which affected government planning.

Ms Elago said the establishment of the African Free Trade Area would not erode SACU, but rather open opportunities for the region to export goods to bigger markets.

She said SACU was committed to the continental free trade area as it would deepen regional integration, adding that SACU had been negotiating as a bloc with all members actively participating.

Meanwhile, meeting of ministers in September will iron out any pending issues and another summit will be held later in the year.

Ministers responsible for trade, industry and finance are to meet over several issues including the review of tariffs, rebating and strengthening trade in the region.

Several countries in the region, including Namibia, have been listed by the European Union (EU) as being a tax haven, and thus President Masisi said they were committed to helping such members as Namibia.

He said the EU, being their trading partners, would also be engaged over the matter. ENDS