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SACU READY FOR AFCFTA ON JAN 1

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MBABANE - The SACU Council of Ministers has reaffirmed the member States’ commitment to ensure that the regional body is prepared to start trading under AfCFTA from January 1, 2021.

The African Continental Free Trade Area (AfCFTA) will be the world’s largest free trade area since the formation of the World Trade Organisation. It aims to bring together all member states of the African Union (AU) covering a market of more than 1.2 billion people.

Meeting

The SACU Council of Ministers held their 41st meeting, virtually last Thursday. The meeting was chaired by Tito Mboweni, who is Minister of Finance in South Africa, and attended by the respective ministers responsible for trade and industry and finance in the SACU member States. According to a correspondence copied to this publication, the Council deliberated on various strategic issues and reflected on the implementation of the outcomes of the 4th SACU Ministerial Retreat that was held on September 21st 2020. Among the key issues, the council noted that the operationalisation of the AfCFTA was gaining momentum and approved SACU’s initial tariff offer to the free trade area.

“The council also noted progress made towards the ratification of the SACU, Mozambique and UK Economic Partnership Agreement (SACUM-UK EPA).  Internal processes are currently ongoing in the member States to deposit the instruments of ratification before November 30th 2020. The SACUM-UK EPA is envisaged to enter into force by January 1, 2021,” reads the correspondence. The ministers further noted the importance of e-commerce for the SACU region in the wake of the COVID-19 pandemic and directed members to reflect and explore the modalities to develop a regional framework on e-commerce taking into account ongoing work at national and SADC levels on e-commerce.

Budget

“On operational matters, the council considered and approved the revised budget for the Secretariat and a social media policy, among others,” shared SACU. Meanwhile, AfCFTA has eight strategic objectives.  These include creating a single market for goods and services, facilitated by the movement of people;  contributing to the movement of capital and people and facilitating investment;  creating a continental customs union; expanding intra-African trade; resolving the challenges of overlapping memberships in regional economic arrangements; and promoting sustainable and inclusive economic development.

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