WINDHOEK, June 25 (Xinhua) -- The Southern African Customs Union (SACU) Council of Ministers convened its 52nd ordinary meeting on Wednesday in Windhoek, the capital of Namibia, with a focus on pressing external trade challenges and a sluggish global economic outlook.
The meeting is expected to address critical issues, including the implications of the United States' tariff stance and the imminent expiration of the African Growth and Opportunity Act (AGOA).
"This is indeed a critical period for SACU as we navigate these challenging times," said Ericah Shafudah, Namibia's minister of finance and chairperson of the SACU Council of Ministers, in her opening remarks on Wednesday.
Highlighting the ongoing bilateral talks with the United States about its tariff policies, Shafudah said the AGOA agreement, which has greatly increased market access, job creation and revenue for SACU nations, is scheduled to end in September.
"We are confident that the Ministers of Trade, as part of the broader bilateral engagements with the United States, will negotiate for a possible extension of AGOA," she said.
According to Shafudah, the meeting is also taking place amid heightened conflicts in the Middle East and Eastern Europe. "These conflicts have potential negative effects on global growth and energy prices that could trickle down to our economies," she said.
Shafudah noted that according to the World Economic Outlook, global growth is projected to decline to 2.8 percent in 2025 and 3 percent in 2026, a downward revision from earlier forecasts.
"Moreover, the emerging market and developing economies are projected to mirror the global trends with a growth rate of 3.7 percent in 2025 compared to 4.3 percent for 2024. Sub-Saharan Africa will also experience similar growth prospects, projected at 3.8 percent in 2025 compared to 4 percent in 2024. SACU is expected to experience an average weighted growth rate of 2 percent in the current year," she said.
Furthermore, Shafudah said discussions will focus on accelerating the implementation of the SACU Strategic Plan 2022-2027. A key directive from the 7th SACU Summit, prioritizing the production of fertilizers, agro-chemicals and seeds as part of agro-processing to support the agriculture sector, will also be reviewed, she said.
Meanwhile, Shafudah said the Council is expected to prepare a report detailing substantial progress on these initiatives for the 9th SACU Summit, scheduled for Friday.
Namibia's tenure as the chair of the SACU Summit, Council of Ministers and Commission will conclude on July 14, with South Africa set to assume the incoming chairmanship. ■
