Southern African Customs Union facts for kids
Quick facts for kids
Southern African Customs Union
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 Coat of arms
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Members of the SACU
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| Headquarters | Windhoek |
| Largest city | Johannesburg |
| Official language | English (de facto)a |
| Demonym(s) | Southern African |
| Type | Customs union |
| Membership |
5 states
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| Leaders | |
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• SACU Chair
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 Lesotho |
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• SACU Executive Secretary
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T.D. Khasipe |
| Establishment | 1910 |
| Area | |
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• Total
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2,672,830 km2 (1,031,990 sq mi) |
| Population | |
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• 2021 estimate
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 68,358,016 |
| GDP (PPP) | 2021 estimate |
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• Total
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$950.7 billion |
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• Per capita
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$13,907 |
| GDP (nominal) | 2021 estimate |
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• Total
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$457.3 billion |
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• Per capita
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$6,689 |
| Gini (2015) | ▼ 59.0 high |
| HDI (2021) |  0.696medium |
| Currency |
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| Time zone | UTC+2 (SAST) |
| Driving side | left |
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The Southern African Customs Union (SACU) is like a special club for five countries in Southern Africa: Botswana, Eswatini, Lesotho, Namibia, and South Africa. These countries work together on trade. A customs union means they have the same rules for goods coming in from outside their group. Their main office, called the headquarters, is in Windhoek, the capital city of Namibia. SACU started a long time ago, in 1910.
Contents
The History of SACU
SACU is the oldest customs union still around in the world. It has a long and interesting past.
How the Union Began
The first trade agreement in this area started in 1889. It was between the British Cape Colony and the Orange Free State. More areas joined later, like Basutoland and Natal.
In 1903, after a big war, a new agreement created the Southern African Customs Union. Many areas joined this new union, including Southern Rhodesia and Swaziland.
SACU Today: A Modern Union
In 1910, the union was officially set up with the Union of South Africa and three other territories: Bechuanaland, Basutoland, and Swaziland. These agreements helped manage trade and taxes.
When these territories became independent countries, the agreement was updated. On December 11, 1969, SACU was relaunched. It included the Republic of South Africa, Botswana, Lesotho, and Swaziland.
Namibia joined SACU in 1990 after gaining its independence from South Africa. This made Namibia the fifth member. For many years, South Africa managed SACU. The union collected taxes on goods made locally and on goods imported from outside SACU.
Leaders of SACU
SACU has leaders who help run the organization. The Executive Secretary is in charge of daily operations. Tswelopele C. Moremi was the Executive Secretary in 2007. Paulina Mbala Elago took over in 2014. Currently, Thabo David Khasipe was appointed as the Executive Secretary on February 1, 2023.
Who Are the SACU Members?
There are five countries that are part of the Southern African Customs Union. They work together to make trade easier and fairer for everyone.
| Country | Area
(km2) |
Population |
|---|---|---|
 Botswana |
581,730 | 2,630,296 |
 Eswatini |
17,360 | 1,201,670 |
 Lesotho |
30,360 | 2,305,825 |
 Namibia |
824,290 | 2,567,012 |
 South Africa |
1,219,090 | 59,893,885 |
How SACU Works
SACU's main goal is to allow goods to move freely between member countries without extra taxes. This creates a large, shared trade area.
Trade Rules and Money Sharing
SACU has a common external tariff. This means all member countries charge the same import taxes on goods coming from outside SACU. They also have a common excise tariff, which is a tax on certain goods made and sold within the union.
All the money collected from these taxes goes into a central fund managed by South Africa. This money is then shared among the member countries using a special formula. The countries of Botswana, Lesotho, Namibia, and Eswatini (often called the BLNS countries) get a share. The money from SACU is a very important part of the income for these BLNS countries.
Meetings and Committees
The union holds yearly meetings to talk about important trade matters. There are also special committees that meet several times a year. These committees focus on different areas like customs, trade, industry, and agriculture.
Changes and Structure of SACU
After South Africa formed a new government in 1994, SACU members decided to update their agreement. They wanted to make SACU more democratic and better meet the needs of all member states.
New Structure for SACU
In 2000, the ministers from the SACU countries agreed on a new way to organize the union. This new structure helps SACU run more smoothly.
- Council of Ministers: This is the top decision-making group. It has one minister from each SACU country. They meet every three months and make decisions together.
- Commission: This group handles the daily administration. It includes senior officials and different technical committees.
- Tribunal: This is an independent group of experts. They help set tariffs (taxes on imports) and deal with unfair trade practices.
- Secretariat: This office manages the day-to-day work of SACU. It is funded by the money collected by the union.
The ministers also agreed on a new way to share the money collected by SACU. The money is divided into three parts:
- Customs Pool Share: This part is given based on how much each country trades within SACU.
- Excise Pool Share: This part is given based on each country's Gross Domestic Product (GDP), which measures how much a country produces.
- Development Component: This is a special part of the money set aside to help all SACU members grow. It is given out to countries that need more support for their development.
Trade Deals with Other Countries
SACU also makes trade deals with groups outside its own members. For example, SACU made a free trade deal with the European Free Trade Association in 2006. They have also been talking with the European Union about other trade agreements.
Images for kids
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Evolution of the Southern African Customs Union from 1903 to the present day
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SACU headquarters in Windhoek
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See also
- Trade bloc
- Common Monetary Area
- Southern African Development Community (SADC)
- Common Market for Eastern and Southern Africa (COMESA)
- Free-trade area
- Tariff
