The just ended sixth SACU Summit of Heads of State and Government has resolved to extend the Ministerial Work Programme with an additional year from December 2018. This was necessitated by a number of outstanding issues which need further consultation. The much anticipated outcome of the summit was the revenue sharing formula, among others. Unfortunately the decision has not yet been taken. Discussions on the formula will continue. The revenue sharing formula has three components; the customs, excise duties and the development component. The current formula was implemented in 2004 to calculate revenue shares for member states. According to this formula, South Africa, who is the custodian of the common revenue pool, gets the biggest share of its revenues. However, South Africa has in the past indicated that it is not getting what they feel they deserve as a country, this has created a debate among member states. Other focus areas of the work programme include the long term arrangement on the management of the common revenue pool, the establishment of a stabilisation fund, exploring the feasibility of a regional mechanism for SACU regional infrastructure projects and industrialisation. There will be another summit later this year to iron out all the outstanding issues such as delays or differences of views. The summit was attended by all heads of states attended and reaffirmed SACU’s relevance.
Sydney
29
℃
November 28, 2025

