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SACU RECEIPT’S GROWTH

20/02/2023 06:30:00 Mhlengi Magongo

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MBABANE - While SACU remains volatile, His Majesty King Mswati III said SACU receipts from Eswatini were expected to increase by 102 per cent in 2023/24 from E5.8 billion in 2022/23 to E11.75 billion.

In his Speech from the Throne on Friday, the King said the SACU revenue formula was in the process of being reviewed and could result in decreased receipts going forward. With these projections in mind, he said it was important to ensure the country utilised the gains to save for dry days. “It is equally important to strengthen the collection of revenue internally, while pursuing cost-cutting measures,” he added.

Worth noting, SACU businesses will this year access the African Continental Free Trade Area (AfCFTA) market. SACU Category A products will be the first to be traded in the AfCFTA market, which is beneficiary to the country. Category A products are those that are traded in the agriculture sector. The availability of the new market will boost SACU receipts which declined by more than 8 per cent in Eswatini last year.

Commerce

The Minister of Commerce, Industry and Trade, Manqoba Khumalo, as Chairperson of SACU Ministers informed AfCFTA member States that the SACU region was ready to trade. This was during the eleventh AfCFTA Council of Ministers responsible for trade which was held in Gaborone, Botswana on Saturday. Khumalo indicated that SACU members had finalised internal negotiations on the AfCFTA Tariff Offer which meets the level of ambition of 90 per cent for Category A products, which he said were those to be liberalised immediately.

“The offer will be endorsed by the Assembly after undergoing the necessary verification process by the AfCFTA Secretariat. Thereafter, SACU member States can start trading preferentially under the AfCFTA Agreement and the business community will enjoy the benefits of the continental market,” mentioned Khumalo. The minister added that SACU Secretariat would work with the AfCFTA Secretariat to ensure that the offer was available to all AfCFTA State parties once all technical verification has been finalised.

The market comes at a necessary period as SACU member states recorded a trade deficit of R323.9 billion in 2021 with the rest of the World and population in SACU grew from 65.5 million in 2018 to 68.9 million in 2022, according to the SACU report.