SACU bets on R5bn regional fund

Southern African Customs Union (SACU) leaders have approved a R5 billion regional development fund and called for a long-term extension of the African Growth and Opportunity Act, as the bloc grapples with rising global protectionism and supply chain disruptions.The 9th SACU Summit, held in Cape Town on 26 June 2026 and chaired by South African President Cyril Ramaphosa, brought together the heads of state of Botswana, Namibia and Eswatini, as well as Lesotho's prime minister.The newly approved SACU Regional Innovative Funding Mechanism, structured as a fund of funds, will be capitalised at R5 billion spread across the 2027/28 and 2028/29 financial years, drawn from the Common Revenue Pool. Leaders directed that technical work on the fund's governance, access criteria, project pipeline and legal arrangements be concluded before it becomes operational.On trade access, the summit welcomed the extension of te African Growth and Opportunity Act (AGOA) to December 2026 but called for a renewal of at least 15 years, citing the need to protect the region's industrial base and preserve jobs.Leaders also flagged the economic fallout from global conflicts and the resurgence of unilateralism, noting disruptions to supply chains, elevated energy and food prices, and a weakened global growth outlook. The communiqué pointed to growing South-South cooperation as a partial buffer against these pressures.On illicit trade, the summit noted that joint regional enforcement operations had resulted in seizures and detentions of tobacco products valued at approximately R479 million, and committed to deepening customs cooperation under the SACU Regional Authorised Economic Operator programme.The bloc reaffirmed its position that all future trade negotiations, including resumed talks with India and new engagements with China and the United States, should be conducted as a unified bloc to preserve the integrity of the Common External Tariff.The summit extended the SACU Strategic Plan to the 2028/29 financial year, and directed that the bloc's reimagination process be concluded by end of July 2027.Botswana assumes the SACU chairmanship from 15 July 2026, succeeding South Africa.

SACU bets on R5bn regional fund

Comments

Namibian Sun 2026-08-20

Please login to leave a comment

SACU bets on R5bn regional fund

Comments

Namibian Sun 2026-08-20

Please login to leave a comment

Subscription Required to Access Content ×

Login

Subscription Required to Access Content