Niël Terblanché
Finance minister Ericah Shafudah opened the 52nd meeting of the Southern African Customs Union (SACU) Council of Ministers with a warning that the months ahead will test the bloc’s ability to protect export markets and drive industrial reform.
Speaking in Windhoek on Wednesday, as Namibia’s term as SACU chair comes to an end, Shafudah told delegates, “This is indeed a critical period for SACU as we navigate these challenging times.”
Ministers from the five SACU member states are meeting for two days to respond to the United States’ new tariff policies and prepare for the possible expiry of the African Growth and Opportunity Act (AGOA) in September.
Shafudah reminded ministers that AGOA has brought significant benefits to the region through market access, job creation, and revenue.
She urged trade ministers to push for an extension of the agreement.
“Despite the major challenge ahead, we must secure an extension,” she said, adding that the council would support negotiations in Washington with the necessary policy and strategic backing.
She also addressed the impact of global instability, noting that conflicts in the Middle East and Eastern Europe are driving up energy costs and slowing global growth.
The World Economic Outlook projects global expansion of just 3% in 2026.
SACU’s own weighted growth is expected to reach only 2% this year. Shafudah said this makes it vital for the bloc to diversify its economies and speed up reforms.
Ministers reviewed progress on the SACU Strategic Plan 2022–2027, which was adopted to drive industrialisation, agroprocessing, and support continental trade under the African Continental Free Trade Area (AfCFTA).
The Council expects updates on regional projects for fertiliser, agrochemicals, and seed production before presenting its findings to the SACU Heads of State Summit on Friday.
Shafudah urged faster delivery of these initiatives to support job creation and reduce the region’s dependence on exporting raw materials. “We must create opportunities at home,” she said.
On Thursday, ministers will attend a retreat focused on the reimagined SACU reform plan.
This blueprint includes proposals for simplified customs procedures and a new decision-making structure.
It has been shaped through national consultations and refined by the SACU Commission earlier this month.
Delegates aim to finalise an actionable plan to present to leaders at the ninth SACU Summit on 27 June.
Namibia’s chairmanship of SACU’s institutions ends on 14 July.
Shafudah used her final address as chair to thank her colleagues and wished South Africa, the incoming chair, success.
With tariff deadlines looming and economic prospects limited, Shafudah said the Council’s decisions this week will shape how SACU responds to global pressures and defends its export position.
