'Collapse' of SACU could sink Botswana - Study

If that happened, it could result in the country losing billions of Pula, forcing it to take drastic measures like imposing a higher Value Added Tax, raising income tax and charging higher tariffs on imports from South Africa and other neighbouring countries to make up for the losses from the SACU Revenue Pool.

According to a study conducted by the Botswana Institute For Development Policy Analysis (BIDPA), the Interim Economic Partnership Agreement with the EU has had a divisive effect on SACU after Botswana, Lesotho and Swaziland initialled the treaty last June while Namibia and South Africa balked at it, probably because of little accruing to them.