Khama leaves for key SACU meeting in Tshwane

MBONGENI MGUNI
Staff Writer | Wednesday July 14, 2010 00:00

 

Between July 15 and 16, SACU heads of state and government and finance and trade ministers from Botswana, South Africa, Namibia, Lesotho and Swaziland will attempt to heal the divide that has characterised the customs union since last year.

In June 2009, South Africa and Namibia held back as the three fellow SACU states signed an interim Economic Partnership Agreement (iEPA) with the European Union. The move sparked speculation of a split in the world's oldest customs union; the consequences of which could spell doom for even the biggest SACU members, South Africa and Botswana.

With the next round of EU talks scheduled for late August, the heads of state and government are expected to lend weight to the latest olive branch initiatives within SACU aimed at solidifying the union and addressing outstanding issues.

 Yesterday, presidential spokesman Sipho Madisa confirmed that Khama would be part of the crucial Pretoria meeting. 'He's leaving on Thursday to attend the meeting and he will return on the 16th after the meeting,' Madisa said.  'For meetings of this nature, the President is accompanied by the Ministries of Trade and Industry, Foreign Affairs and International Cooperation as well as Finance and Development Planning [officials].' According to the programme of the meeting, finance and trade ministers will meet tomorrow, while the summit of heads of state/government will convene on Friday. The spotlight will fall on the summit, which SACU has since institutionalised.While the heads of state/government, whose inaugural summit was in Windhoek earlier this year, were meeting to mark the union's centenary, analysts say they were roped in as peace brokers for the troubled body.  The April 2010 Windhoek summit emphasised: 'In order for SACU to remain a viable institution and achieve its new vision, it has to be transformed into a vehicle for regional economic integration capable of promoting equitable development.'

Contentious issues for trade and finance ministers include the forthcoming review of the revenue-sharing formula, establishment of tariff tribunals and boards and positioning SACU within the regional context. Other items for the Pretoria meeting are the review of the 2002 SACU Agreement, specifically to broaden it to include areas such as Trade in Services, Finance and Investment, Government Procurement, the Environment, and Market and Monetary Integration.

Aware of the difficult road to unity ahead, SACU Executive Secretary, Tswelopele Moremi, recently said the customs union would plod on nevertheless. 'Member states are fully aware that this process will be a long and challenging one,' Moremi said at a meeting in Gaborone. 'But they remain committed to SACU as an institution, notwithstanding these challenges.

'It is important to acknowledge that SACU is fully aware that the union is not just about revenue-sharing. Issues of trade facilitation, harmonisation of policies and cooperation among member states to harness investment in the region are equally important.'