Ramaphosa Urges Faster SACU Reforms to Strengthen Trade

President Ramaphosa described the summit discussions as constructive and said member states had reached consensus on several strategic priorities after open and productive engagements.

President Cyril Ramaphosa has called on member states of the Southern African Customs Union (SACU) to accelerate economic reforms and deepen regional cooperation as the bloc responds to growing uncertainty in global trade. Speaking at the closing session of the 9th SACU Summit in Cape Town, the President said member countries must work together to strengthen industrialisation, diversify export markets and improve regional competitiveness in an increasingly challenging international environment.

The summit brought together leaders from Botswana, Eswatini, Lesotho, Namibia and South Africa to review progress on regional integration, trade and industrial development. Discussions focused on strengthening the customs union's ability to respond to shifting global trade patterns while creating new opportunities for economic growth across Southern Africa.

Leaders Agree on Priorities for Regional Growth

President Ramaphosa described the summit discussions as constructive and said member states had reached consensus on several strategic priorities after open and productive engagements. Leaders reviewed regional and international developments affecting the customs union, including the rise of protectionist trade policies and changes in global supply chains. They endorsed recommendations from the SACU Ministerial Retreat held on 24 June and welcomed progress made in implementing the SACU Strategic Plan 2022–2027.

According to the President, member countries have recorded meaningful progress in industrialisation, investment promotion, export development, trade facilitation, logistics and implementation of the African Continental Free Trade Area (AfCFTA). Work is also advancing on the development of regional value chains in key sectors such as fertilisers, agrochemicals and seed production. At the same time, collaborative initiatives in automotive manufacturing and battery production are gaining momentum as the region seeks to build stronger industrial capabilities and reduce dependence on imported products. To support these ambitions, a regional investment roundtable is expected to take place later this year with the objective of mobilising funding for strategic industrial projects across SACU member states.

Trade Diversification and Industrialisation Remain Key Focus

President Ramaphosa said the summit highlighted the importance of expanding trade opportunities beyond traditional export destinations. While all SACU member states are now implementing tariff concessions under the African Continental Free Trade Area, leaders agreed that additional efforts are needed to increase trade within Africa and maximise the benefits offered by existing trade agreements.

The summit emphasised the need to conclude trade negotiations more quickly so that businesses can gain access to new international markets and strengthen the region's resilience against geopolitical tensions and changes in the global trading system.

Leaders also reviewed ongoing work to develop long-term strategies for the automotive industry and minerals beneficiation. These sectors are regarded as important drivers of industrial development because they can create higher-value products, generate employment and strengthen regional manufacturing capacity.

Alongside these initiatives, SACU member states noted progress in designing a financing mechanism that will support cross-border industrialisation and infrastructure projects. Officials believe improved financing arrangements will help unlock investment in regional projects while encouraging stronger economic integration across Southern Africa.

Joint Enforcement and Regional Cooperation Deliver Results

The summit also welcomed the success of coordinated regional enforcement operations targeting illicit tobacco and tobacco products. President Ramaphosa said the joint operations resulted in the seizure of illegal goods, multiple arrests, financial penalties and the recovery of excise duties and value-added tax that would otherwise have been lost through illicit trade.

Leaders agreed that stronger cooperation between customs authorities and law enforcement agencies remains essential for protecting legitimate businesses, safeguarding government revenue and maintaining fair trade across the region.

As his term as Chair of the SACU Summit draws to a close on 14 July, President Ramaphosa encouraged member states to maintain the momentum created through the summit's decisions. He said closer cooperation, stronger industrial development and more diversified trade relationships will help SACU countries respond more effectively to global economic changes while creating sustainable growth opportunities for businesses and communities across the region.

The President concluded that continued collaboration among member states will be vital in building a more resilient customs union that supports industrialisation, expands intra-African trade and strengthens Southern Africa's position in the global economy.