SADC investment protocol welcomed
SABC News, South Africa
SADC investment protocol welcomed
22 August 2006
The association of Southern African Development Community (SADC) Chambers of Commerce and Industry cautiously welcome the signing of the finance and investment protocol by leaders of the 14-member regional trading bloc in Lesotho’s capital Maseru last week Friday.
Through the implementation of the trade protocol and the regional macro-economic policies, SADC member states intend establishing a Free Trade Area by 2008, a Customs Union by 2010, the common market by 2015, and the monetary union by 2016.
SADC which has a 200 million strong market has embarked on a number of initiatives aimed at mordenising its customs procedures and remove bottle-necks on intra-regional trade in order to achieve targets for the creation of a Free Trade Area in 2008.
The regional leadership has moved in to expedite the process of harmonisation of customs legislation and procedures in member countries, including improved transit flows. This is also aimed at preparing for the smooth transition to the SADC Customs Union by 2010. But, there are fears that other countries might find it difficult to be deprived of tariff income which is essential to their single commodity economies. Victor Mathale, the head of New Partnership for Africa’s Development (Nepad’s) private sector unit, concurs.
Regional trade liberalisation
Mathale said: "Countries have to forego some monetary value. Because these customs means revenue to the state. So even if you allow free movement, you must do it in such a way that whatever you promote, whatever the duties they have to pay somewhere, they need to be compensated."
Zodwa Mabuza, the Chief Executive Officer of the Swaziland Employers and Chamber of Commerce, has in the meantime argued that governments over reliance on custom duties often stalls the process of regional trade liberalisation.
"I’ll make an example of Swaziland where more than 50% of our revenue comes from the Southern African Customs Union (SACU) revenue pool. That’s not sustainable. If we want free trade, we have to look at other sources of revenue and also allow free movement of goods within our countries," he added.
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