Pretoria: President Cyril Ramaphosa has urged member states of the Southern African Customs Union (SACU) to evolve the regional bloc from a traditional customs arrangement into a vibrant industrial hub. This transformation, he emphasized, is crucial for shielding the region from global economic shocks.
According to South African Government News Agency, President Ramaphosa delivered the keynote address at the opening of the 9th Summit of the SACU Heads of State and Government at the Cape Town International Convention Centre. He stressed that no African nation can thrive in isolation amid growing global uncertainties.
The President noted the reshaping of the global economy, with changing trade patterns, emerging technologies, and reconfigured supply chains. He underscored the importance of a re-imagined SACU agenda in this context.
Despite the unstable global environment, SACU countries display economic resilience, with projections of 2.64% economic growth in 2026 and 2.1% in 2027. President Ramaphosa highlighted the necessity for SACU, the world's oldest customs union, to adapt to the changing global dynamics.
He emphasized that SACU should evolve from a mere fiscal instrument to a catalyst for development, promoting regional economic resilience and self-reliance. The President called for collaboration to build a robust industrial ecosystem capable of global competition.
President Ramaphosa pointed to specific national competitive advantages within the SACU region, such as Eswatini's manufacturing base, Lesotho's textile sector, Namibia's green hydrogen and uranium potential, Botswana's diamond beneficiation experience, and South Africa's automotive and steel capacity. He stressed industrialization as a path from commodity dependence to a sustainable economy.
The President highlighted Africa's endowment with about 30% of the world's mineral reserves, urging SACU to leverage this to support regional value chains and fast-track raw material beneficiation. He stressed the importance of investing in infrastructure, like the Trans-Kalahari Railway and the Lesotho Highlands Water Project, as transformative regional necessities.
President Ramaphosa concluded by emphasizing Africa's potential to be a key player in global development, urging leaders at the Summit to transform SACU into a dynamic engine of regional development.