Staff Writer
The 9th Summit of the Southern African Customs Union (Southern African Customs Union) Heads of State or Government convened in Cape Town on 26 June 2026, where leaders reaffirmed commitments to deeper regional integration, industrial development, and coordinated responses to global economic shocks.
The Summit was chaired by South African President Cyril Ramaphosa and attended by King Mswati III, Botswana President Duma Boko, Namibian President Netumbo Nandi-Ndaitwah, and Lesotho Prime Minister Samuel Matekane.
A key outcome of the meeting was the approval of a SACU Regional Innovative Funding Mechanism, including a Fund of Funds with an initial capitalisation of N$5 billion over the 2027/28 and 2028/29 financial years.
The fund will be financed through the Common Revenue Pool and directed toward development projects across member states, with further technical work mandated on governance, investment criteria, and mobilisation of additional funding sources.
Leaders also reviewed progress on the SACU Strategic Plan (2022–2027), which focuses on industrialisation, trade facilitation, AfCFTA implementation, external engagement, and institutional strengthening.
The Summit approved extending the plan to the 2028/29 financial year following a mid-term review.
On trade and industrial policy, the Summit emphasised the importance of building regional value chains, particularly in automotive manufacturing and green mineral beneficiation.
It also urged faster implementation of cross-border industrial projects to strengthen SACU’s long-term economic resilience.
Concern was raised over global economic headwinds, including rising protectionism, supply chain disruptions, and elevated food and energy prices.
However, leaders noted that increased South-South cooperation is helping to cushion these impacts.
The Summit further welcomed the extension of the African Growth and Opportunity Act (AGOA) to December 2026, while calling for a minimum 15-year extension to safeguard market access, industrial capacity, and employment.
In trade enforcement, member states reported joint operations that led to seizures of illicit goods valued at approximately N$479 million, alongside continued rollout of the AuthorisedEconomic Operator programme to strengthen trusted trade flows.
Progress was also noted in broader regional and international trade engagements, including developments under the Tripartite Free Trade Area, SACU’s negotiations with partners such as the East African Community, India, China, the United States, and ongoing economic partnership arrangements.
The Summit also confirmed that Botswana will assume the SACU Chairmanship from 15 July 2026, succeeding South Africa.
Leaders commended President Ramaphosa for his leadership during his term and welcomed President Boko’s upcoming tenure.
The meeting concluded with a directive to finalise SACU’s institutional “re-imagination” process by July 2027, aimed at strengthening governance and improving the effectiveness of regional institutions.
