The Southern African Customs Union (SACU) is confronting growing uncertainty as the African Growth and Opportunity Act (AGOA), a key trade agreement with the United States, is set to expire in September 2025.
SACU Ministers of Trade are preparing to continue negotiations with their US counterparts in hopes of securing an extension.
Namibia’s Minister of Finance and Chairperson of the SACU Council of Ministers, Ericah Shafudah, addressed the issue during the 52nd Meeting of the SACU Council.
She emphasised the importance of AGOA in providing member states with vital access to the US market, which has supported job creation, revenue generation, and economic growth across the region.
“Further to the US tariff issue, you may recall that on the trade front, the AGOA arrangement is coming to an end in September 2025. SACU has greatly benefited from this arrangement in terms of market access, job creation and revenue generation for the national fiscus, as you may recall from the presentation that tralac made during our May 2025 Meeting in the Republic of South Africa,” Shafudah said.
She noted that the meeting followed the Council’s May session in South Africa, which addressed the implications of the United States’ new tariff stance—changes that pose significant risks to SACU’s trade and revenue streams.
The Minister expressed concern that these trade and geopolitical challenges are occurring during a crucial period for SACU’s transformation.
Central to this transformation is the implementation of the SACU Strategic Plan 2022–2027, endorsed by the 8th Summit.
Member States have been urged to accelerate progress in areas including industrialisation and agro-processing, such as the production of fertilisers, agro-chemicals, and seeds, to strengthen the agricultural sector.
“During this Meeting we urged that the implementation of the SACU Strategic Plan should be accelerated to fast-track industrialisation and ensure that our economies create opportunities for our citizens as well as to maximise the opportunities emanating from the AfCFTA,” Shafudah added.
The Council also reviewed progress on the re-imagination of SACU, with the Commission—tasked with compiling national positions from Member States—meeting earlier in June to prepare recommendations for the upcoming 9th SACU Summit scheduled for 27 June 2025.
Among other items, the Council is expected to consider the Commission’s report on the SACU Work Programme, the Executive Secretary’s Report, trade and finance matters, and institutional arrangements.
Final documents, including the Council’s report and draft communiqué, will be submitted to the Summit for approval.
