The Southern African Customs Union (SACU) is an organization that promotes economic integration and facilitates customs cooperation among its member states in the southern region of Africa. SACU is composed of five countries, namely: Botswana, Lesotho, Namibia, South Africa, and Eswatini (formerly Swaziland). It was founded in 1910, with the aim of creating a common customs area within the region.
The primary objective of SACU is to facilitate the free movement of goods and services among its member states, eliminating trade barriers such as customs duties, tariffs, and import quotas. This creates a unified market within the SACU region, allowing for increased regional trade and economic cooperation. SACU also aims to harmonize customs procedures and regulations to enhance efficiency and reduce bureaucratic hurdles for businesses involved in cross-border trade.
One of the key features of SACU is its common external tariff, which means that goods imported from outside the union are subject to the same tariff rates across all member states. This helps to prevent trade diversion and ensures a level playing field for external trade within the union. In addition, SACU countries collaborate on matters related to trade negotiations, policy coordination, and revenue sharing.
Overall, SACU plays a crucial role in promoting economic integration, facilitating trade, and driving economic growth within the Southern African region.
