The heads of state of the Southern African Customs Union (Sacu) members on Friday met in Pretoria to receive a report on progress in five priority areas noted as the focus of the union, at a prior summit in July 2010.

The Sacu Council of Ministers would deliver the report to stakeholders including Swaziland King Mswati III, Namibian President Hifikepunye Pohamba, Botswana President Ian Khama, Lesotho Prime Minister Pakalitha Mosisili, and South African President Jacob Zuma.

The meeting would discuss a report conducted by an independent Australian consultancy on the review of the revenue-sharing formula within Sacu.

“We want a formula that ensures a sustainable revenue-sharing mechanism that promotes fair and equitable development for all Sacu member States,” said Zuma.

The group would also receive feedback on work on a trade facilitation programme, which would aim at improving border efficiency, to facilitate free movement of goods and services in the union.

Delegates would also receive a report on progress to develop a unified engagement approach for trade negotiations, such as the Economic Partnership Agreements with the European Union, where a more united Southern African front was said to be required.

“Principles of such an approach were developed by Ministers and we shall have to consider them and give guidance accordingly,” noted Zuma.

At the July 2010 summit, heads of State tasked Ministers with developing a roadmap towards the establishment of the outstanding common institutions within Sacu, such as a Tariff Board and the Tribunal within an agreed policy framework.

These institutions were viewed as important for Sacu to reach efficiency and deliver on its objectives, and progress in this regard would also be deliberated.

Finally, the stakeholders gathered in Pretoria would hear of developments in the creation of a common regional industrialisation approach to encourage regional economic development.

Zuma said that Sacu States needed to prioritise economic diversification and the industrial development of the region.

This would require building diverse productive capacity across Sacu, and identifying practical interventions that could create employment and improve the welfare of the people of the region.

Zuma further stated that Sacu should move beyond strategies, towards programmes that meet these objectives.

“As we build these strategies, we need to take into account the new sources of growth in the global economy. While traditional partners remain important, we must engage more proactively with emerging economies of the South,” Zuma reiterated.

He also emphasised that Sacu members needed to recognise the “enormous opportunities” that could arise from widening integration in Africa.

“Africa is widely considered to be the new trade and investment frontier in the global economy. In this context, the forthcoming Tripartite Summit between the Southern African Development Community, East African Community and the Common Market for Eastern and Southern Africa is to be welcomed and Sacu must play a positive role in this engagement,” Zuma stated.

At the conclusion of the Summit, Zuma said the deliberations had been very valuable, and emphasised that Sacu must position itself as an organisation capable of promoting cross-border trade and development, and establishing new partnerships with regional, continental and global trade entities that would contribute to the region's development priorities.