MBABANE – The 9th SACU Summit in Cape Town, chaired by President Cyril Ramaphosa, highlighted regional integration priorities as leaders discussed competitiveness and economic transformation.
The 9th Southern African Customs Union (SACU) High-Level Summit has been described as ‘critical and extraordinary’ in shaping the future trajectory of regional integration and competitiveness.
The summit brought together regional leaders including His Majesty King Mswati III of the Kingdom of Eswatini, Botswana President Advocate Duma Gideon Boko, Namibia President Dr Netumbo Nandi-Ndaitwah and Lesotho Prime Minister Samuel Ntsokoane Matekane, in discussions centred on strengthening SACU’s mandate amid a rapidly evolving global economic environment.
SARFERD Resident Coordinator Dr George Choongwa said His Majesty’s submission to the summit was both timely and strategic, noting that the King challenged SACU to rethink its foundational ideology in order to remain relevant.
He said the King had effectively urged member States to embrace a ‘new paradigm shift’ that aligns regional trade and economic frameworks with modern global transformations.
“His Majesty challenged the SACU’s ideology and mandate to evolve and embrace modern and complex regional and global structural and economic transformation,” said Dr Choongwa. “He admonished the region that in order to survive, SACU should embrace a new paradigm shift to remain competitive in the fast-changing regional and global economic landscape.”
His Majesty’s address also highlighted the mounting challenges confronting regional economies, particularly the accelerated changes in the global economic landscape between 2023 and 2026.
These include intensifying geopolitical competition, rising protectionism, disruptions in international supply chains and the increasing use of unilateral trade measures.
According to global economic assessments by institutions such as the World Bank, African Development Bank (AfDB), International Monetary Fund (IMF) and the World Economic Forum, these developments continue to expose developing economies to heightened vulnerabilities, including rising energy, transport and production costs.
Dr Choongwa noted that without strategic and coordinated reforms, SACU member States risk losing competitiveness in key global markets.
Despite these challenges, the January 2026 SACU report reflects a relatively strong regional economic performance. SACU’s combined gross domestic product (GDP) increased to R8.08 trillion in 2024, up from R7.74 trillion in 2023, representing growth of 4.4 per cent.
However, concerns remain over uneven growth distribution within the bloc, with Eswatini still lagging behind in achieving comparable real GDP growth rates at regional level.
Economists argue that this divergence underscores the urgency of structural reforms and deeper integration measures that ensure smaller economies benefit more equitably from SACU’s trade and revenue-sharing framework.
In his submission, His Majesty King Mswati III reportedly raised six key priority areas aimed at repositioning SACU for long-term resilience and competitiveness.
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His Majesty King Mswati III (C) having a conversation with SACU Executive Secretary Dumisani Masilela (R) during the 9th SACU Summit held in Cape Town over the weekend. (Pic: Eswatini Government)