03 Jul 2022

Southern African Customs Union  (SACU) members have agreed to refocus the SACU work programme on  industrialisation through the development of regional value chains, export, and investment promotion.

Speaking at the 7th SACU summit in Gaborone, Executive Secretary of the SACU Secretariat, Ms Paulina Elango said the union had prioritised financing for industrialisation, trade facilitation and logistics together with the implementation of the African Continental Free Trade Area (AfCFTA) as key focus areas for the SACU Work Programme.

“This refocused Work Programme is deliberately structured to ultimately position SACU as the manufacturing and innovation hub for the continent,” she said.

The implementation of the AfCFTA, Ms Elonga said was a major priority for SACU as it presented the best opportunity for the region to achieve its integration objectives at both the regional and continental levels.

For SACU, she said the key was to position itself strategically to take full advantage of the export opportunities, diversify and broaden its industrial capacity to supply the African continent and beyond.

Regarding industrialisation, Ms Elango said SACU sought to deepen regional economic integration through the development of regional value chains. “To guide this work, the SACU member states have adopted a vision for industrialisation which seeks to build a diversified, competitive, sustainable and equitable industrial base that supports structural transformation and the economic integration of the SACU region,” she said.

Further, Ms Elango said to attain this vision, the union had identified priority sectors like agro processing, textiles, cosmetics and essential oils as well as pharmaceuticals which were all selected based on their potential to benefit the region and the opportunities they present as well as their overall contribution to economic development.

In the area of trade facilitation and logistics, Ms Elango said SACU sought to create a seamless trade environment for cross-border movements.

This, she said would be done through the application of innovative and emerging technologies to streamline processes, enhance collaboration, whilst also detecting and deterring illicit trade in goods within the common customs area.

“The programme also aims at addressing obstacles and hindrances facing businesses that are involved in cross-border trade. Our goal is to develop solutions that are practical, transformational towards enhanced efficiency and that will reduce trade related transaction costs and improve compliance and security of the supply chain amongst others,” she said.

Ms Elango said the revenue and customs authorities in the SACU region were already working closely to implement a dynamic customs modernisation programme, with a view to achieving some of these objectives.

She therefore said it was of critical importance for SACU member states to work together to advance regional integration objectives and find solutions to global challenges. ENDS