Southern African Customs Union (SACU) leaders yesterday gave their new Executive Secretary, Dumsani Masilela, a mandate to lead the reforms of the Union by implementing the re-imagined SACU Agenda founded in Eswatini in June 2023.
This was during the 9th Summit of the SACU Heads of State and Government held yesterday under the leadership of outgoing Chairman President Cyril Matamela Ramaphosa of the Republic of South Africa.
His Majesty King Mswati III was amongst the regional leaders, who also included incoming Chairman Advocate Duma Gideon Boko of Botswana, Namibia’s Dr Netumbo Nandi-Ndaitwah and Lesotho Prime Minister Samuel Ntsokoane Matekane.
The atmosphere was one of serious determination as the leaders surveyed a global landscape troubled by rising protectionism, unilateralism and ongoing conflicts that had sent shockwaves through their economies in the form of disrupted supply chains and soaring food and energy prices.
In a communiqué read out by Eswatini’s first SACU Executive Secretary, Masilela was congratulated by the leaders on his appointment and given the responsibility to help navigate these challenges.
At the heart of their deliberations was a vision for a re-imagined SACU.
They reviewed the progress of their Strategic Plan (2022–2027), which they decided to extend to the 2028/29 financial year.
A cornerstone of this plan was the creation of a SACU Regional Innovative Funding Mechanism, initially capitalised with E5 billion to support development projects across all member states.
The leaders envisioned a future where the region does not just trade goods, but also manufactures them together.
They discussed regional value chains in the automotive sector and the potential for green mineral beneficiation.
To protect these growing industries, they celebrated the success of joint operations that had already seized approximately E479 million worth of illicit tobacco products and looked forward to creating seamless non-stop border trade environments.
Looking beyond their borders, the summit emphasised the need to leverage the African Continental Free Trade Agreement (AfCFTA) to build resilience.
They also called for a 15-year extension of the African Growth and Opportunity Act (AGOA) to ensure trade continuity and committed to engaging with global partners such as China, India and the United States as a unified bloc.
As the summit drew to a close, the leaders looked towards a July 2027 deadline to finalise the total re-imagination of their union.
With a spirit of gratitude, they thanked President Ramaphosa for his stewardship as he prepared to hand over the chairmanship.
The meeting ended with a reaffirmed commitment to unity, ensuring that while global economic conditions remain uncertain, the bonds of SACU remain strong.
The SACU Strategic Plan (2022–2027)
The SACU Strategic Plan (2022–2027) is built upon the following six key pillars:
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Industrialisation, Export and Investment Promotion: This pillar focuses on regional value chains, including the automotive sector and green mineral beneficiation, to drive inclusive growth.
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Trade Facilitation and Logistics: This includes initiatives such as the regional Authorised Economic Operator (AEO) programme and joint enforcement operations to combat illicit trade.
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Implementation and Leveraging of the AfCFTA: This involves fulfilling tariff liberalisation commitments to build regional resilience against global supply chain disruptions.
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Unified Engagement with Third Parties: This pillar ensures SACU negotiates as a single bloc with external partners, including China, India and the United States, while maintaining the integrity of its Common External Tariff.
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Finance and Resource Mobilisation: A major development under this pillar is the approval of a E5 billion SACU Regional Innovative Funding Mechanism to support development projects.
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Effectiveness of SACU Institutions: This focuses on strengthening governance and the administrative capacity of the union to ensure successful implementation of the strategic plan.
