Chairperson of the SACU Council of Ministers, Peggy Serame flanked by fellow Ministers, Dr. Lemogang Kwape and Moagi Lefoko
The Pan Afrikanist Watchman
The spill-over effects from the war in Ukraine are not only threatening the global economic growth prospects but food security with the continued surge in food prices and other commodities.
Officially opening the 47th Meeting of the Southern African Customs Union (SACU) Council of Ministers in Gaborone today (28th June 2022), Botswana’s Minister of Finance and Development Planning,, Peggy Serame, who doubles as Chairperson of the SACU Council of Ministers made this observation:
“We continue to face a surge in energy prices; which is impacting the prices of basic food commodities. If this continues unabated, it will further push our people into hunger and poverty. This is a major concern not only for the SACU region but for the whole world”.
The meeting in Gaborone, which precedes the 7th Summit of the SACU Heads of State and Government slated for the 30th June 2022, is taking place at a time when the world economy remains subdued. Serame said that the ongoing war in Ukraine remains a major risk that will further undermine the economic recovery efforts.
As a result of these developments, the International Monetary Fund (IMF) has reduced its initial projections and is now forecasting a lower global growth of 3.6 percent in 2022 compared to 6.1 percent in 2021.
The advanced economies are now forecast to record growth of 3.3 percent compared to 5.2 percent in 2021. Serame said that similar trends in the emerging market and developing countries, including SACU, also mirror these global trends.
The emerging market and developing countries are forecast to record a growth of 3.8 percent in 2022 compared to 6.8 percent in 2021.
The projection for Sub-Saharan Africa (SSA) region was also reduced to 3.8 percent for 2022 compared to 4.5 percent in 2021.
Seramereminded the meeting that the economies of SACU contracted by a weighted average growth of 6.5 percent in 2020 but are estimated to record a weighted average growth of 4.9 percent in 2021.
However, in the current year, she said growth is projected to be only 2.2 percent.
“It is therefore important that as a region, we accelerate the implementation of the recently approved SACU Strategic Plan, which is geared towards supporting the economic recovery within our region and to maximise the opportunities that will accrue from the implementation of the African Continental Free Trade Area (AfCFTA), as well as creating economic opportunities for our people including the small and medium scale enterprises, especially women and the youth”.
Serame went on to urge the Council of Ministers to continue providing the necessary resources required to realise the successful implementation of the Strategic Plan.
Tuesday’s meeting considered among others, the Recommendations of the Commission emanating from the 62nd and 63rd Meetings of the Finance and Audit Committee (FAC).
According to Serame, normally these recommendations would be approved through a round-robin, but they were added to the Agenda in the interest of time.
Further, the Council considered the Report of the 68th Meeting of the Commission, which includes the Executive Secretary’s Report, the Report of the 64th FAC Meeting, the Report of the Technical Committee of Senior Officials on Industrialisation, Investment, and Export Promotion as well as the Reports on Trade Facilitation and Logistics.
They also considered a paper on the Rotation of the Chair of SACU Institutions.
To prepare for Thursday’s Summit of the SACU Heads of State and Government, Council considered and cleared all the relevant documentation for the Summit including the draft Progress Report from the Council on the implementation of the refocused Work Programme, update on the SACU Strategic Plan, update on the SACU Organisational Structure and the draft Communiqué.
Unlike previous Meetings, this Council of Ministers has allowed for exhibitions at the venue of the meetings to make it possible for the Ministers to get contacts and connections for investment opportunities in some sectors, especially in the private sector.
Minister Serame said the time has come “for us to see our countries as places for potential mutual investment opportunities” and thus invited her peers from Lesotho, Namibia, South Africa, and Swaziland to not only take advantage of the exhibitions but to also visit craft shops in Gaborone to get unique souvenirs.
She also invited them to see Botswana’s wildlife at Mokolodi private farm situated 10km from Gaborone or go to Mountain View, which is 80km from Gaborone where wildlife, including the lions, abound.
The Meeting was graced by Ministers of Finance or Economy and their delegations, Members of the SACU Commission, Senior Government Officials of the Member States, Officials of the SACU Secretariat as well as the Executive Secretary Ms. Paulina M. Elago and her team.
The five-member SACU is the oldest Customs Union in the world, having been formed in 1910.
