Trade facilitation, industrialisation talks for SACU
Southern African Customs Union (SACU) executive secretary Pauline Elago yesterday paid President Hage Geingob a courtesy visit to brief him on developments pertaining to the union.
Updating the president, she said SACU remained committed to distributing revenue collected to its member states despite the low economic growth witnessed in the southern African region.
She also said that trade facilitation and industrialisation talks would feature high on the custom union's agenda when the SACU council of ministers meet to deliberate on trade issues in the region and used the opportunity to dispel the notion that South Africa was not getting its fair share of the revenues.
“We are hoping the council of [trade] ministers will pick up the pace to discuss the SACU revenue-sharing formula. The council has agreed that there are certain principals that will guide the agenda, we will therefore have to see,” she said on the side-lines of her visit to the president.
“We want to build on what SADC has regarding industrialisation and what kind of tariff-sharing mechanisms will be put in place for all its members.”
On South Africa's grievance and whether discussions regarding a broader slice of the cake would be granted, she said, “There is always this notion that there are transfers to BLN countries (Botswana, Lesotho, Namibia).
There is a provision for revenue-sharing. It is just not transfers, it is an arrangement. However there is an understanding that the formula needs to be reviewed. The discussion will be broader. There are a whole lot of issues that will need to be discussed.
Sharing his thoughts, Geingob, a former trade minister said SACU remains critical.
“Even with the crisis we have, SACU is important.”
Namibia's share from the SACU pool was reduced by almost N$3 billion in the 2016/17 financial year, markedly lesser then it had received in prior years. Elago however said that Namibia's share would be satisfactory compared to the allocation given in the 2016/17 financial year, albeit a bit bigger. The latest national accounts compiled show that Namibia received just over N$17 billion in SACU transfers in 2015. Namibia receives as much as one-third of its income from the SACU revenue pool.
SACU is one of the oldest customs union and comprises Botswana, Lesotho, Namibia and South Africa. Collectively, they are known as BLNS countries in trade circles.
OGONE TLHAGE
Updating the president, she said SACU remained committed to distributing revenue collected to its member states despite the low economic growth witnessed in the southern African region.
She also said that trade facilitation and industrialisation talks would feature high on the custom union's agenda when the SACU council of ministers meet to deliberate on trade issues in the region and used the opportunity to dispel the notion that South Africa was not getting its fair share of the revenues.
“We are hoping the council of [trade] ministers will pick up the pace to discuss the SACU revenue-sharing formula. The council has agreed that there are certain principals that will guide the agenda, we will therefore have to see,” she said on the side-lines of her visit to the president.
“We want to build on what SADC has regarding industrialisation and what kind of tariff-sharing mechanisms will be put in place for all its members.”
On South Africa's grievance and whether discussions regarding a broader slice of the cake would be granted, she said, “There is always this notion that there are transfers to BLN countries (Botswana, Lesotho, Namibia).
There is a provision for revenue-sharing. It is just not transfers, it is an arrangement. However there is an understanding that the formula needs to be reviewed. The discussion will be broader. There are a whole lot of issues that will need to be discussed.
Sharing his thoughts, Geingob, a former trade minister said SACU remains critical.
“Even with the crisis we have, SACU is important.”
Namibia's share from the SACU pool was reduced by almost N$3 billion in the 2016/17 financial year, markedly lesser then it had received in prior years. Elago however said that Namibia's share would be satisfactory compared to the allocation given in the 2016/17 financial year, albeit a bit bigger. The latest national accounts compiled show that Namibia received just over N$17 billion in SACU transfers in 2015. Namibia receives as much as one-third of its income from the SACU revenue pool.
SACU is one of the oldest customs union and comprises Botswana, Lesotho, Namibia and South Africa. Collectively, they are known as BLNS countries in trade circles.
OGONE TLHAGE
Comments
Namibian Sun
No comments have been left on this article