Cape Town – President Cyril Ramaphosa says it is pivotal that the Southern Africa Customs Union (SACU) achieves its mandate if Southern Africa’s economies are to navigate the current global economic challenges.
Speaking at the 8th SACU Heads of State and Government Summit, Ramaphosa emphasised that fulfilling SACU’s mandate is crucial for Southern Africa’s economies to withstand the “seismic shifts” in the global economy.
“As the UN Conference on Trade and Development noted earlier this year, food and energy crises, surging inflation, debt tightening and the climate emergency are all contributing to one of the lowest rates of global economic growth in decades.
“As the Southern African Customs Union, it is critical that we fulfil our mandate if we are to withstand these global shocks and mitigate their impact on our respective countries,” he said.
Ramaphosa outlined several tools that SACU can utilise to promote the development of member states’ economies, including spatial development initiatives, industrialisation, exports, investment promotion, and regional manufacturing linkages.
President Cyril Ramaphosa Urges Southern Africa Customs Union to Fulfill Mandate for Economic Resilience#SACU #PresidentRamaphosa #EconomicResilience #GlobalEconomy #TradeandDevelopment pic.twitter.com/pPiS0PCLbG
— Trisha Pillay (@Trishpill) June 29, 2023
He also highlighted the significance of economic infrastructure, such as renewable energy capacity, transportation networks, telecommunications, and water infrastructure.
“South Africa believes that spatial development initiatives, industrialisation, exports and investment promotion and regional manufacturing linkages will enable our countries to diversify our economies. It will also enable us to take advantage of opportunities opened up by the African Continental Free Trade Area.
“For this to happen, we should prioritise economic infrastructure, especially scaling up renewable energy capacity, roads and railways, ports and airports, telecommunications and water infrastructure,” Ramaphosa said.
The president emphasised the need for SACU to prioritize economic diversification and take advantage of opportunities presented by the African Continental Free Trade Area.
He said that SACU should contribute to significantly increasing African trade and play a vital role in African economic integration, aiming to advance mutual prosperity and ensure inclusive development in the region.
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Compiled by Betha Madhomu
