The Southern African Customs Union (SACU) leaders have admitted that the member countries of the regional body need each other more than ever before as global economic growth is expected to be slowest since the great recession.

The news of slow growth comes at a time whereby a new world order is being characterised by lower commodity prices which are likely to stay that way for the foreseeable future, and weakening of currencies resulting from slow growth in the economies of SACU major trading partners, particularly China.

South African President Jacob Zuma, who is chairperson of SACU, described the body’s new headquarters in Windhoek as a symbol of unity for the union’s member states.

SACU leaders joined Namibian President for the inauguration of SACU headquarters in on November 12, 2015.

Other SACU leaders – Botswana President Ian Khama and the Prime Minister of Swaziland Barnabas Dlamini as well as Mothetjoa Metsing, the deputy prime minister of Lesotho attended the official inauguration of the N$42 million five storey building.

Zuma noted that: “We are pleased to gather here as regional leaders today to witness the official launch of the SACU headquarters, which is a symbol of our collective effort to promote regional growth and development of the SACU region and its people, as well as a symbol of unity among SACU member states,” Zuma said while speaking at the inauguration.

“Effective regional integration is of particular pertinence now, especially with uncertainty surrounding the global economy and stagnation still likely to continue in traditional markets such as Europe.”

Zuma said developing economies face widening trade deficits resulting from low commodity prices and weak demand for imports have put pressure on the foreign exchange reserves and, consequently, on the fiscal and monetary policies.

“It cannot be business as usual, we need to develop practical work programmes that address the challenges we collectively face to promote complementarities between our economies.

“We need to consider a funding mechanism that will ensure speedy and effective implementation of agreed programmes. This requires that we take charge of our destiny due to limited resources and aid globally,” he said.

President Zuma said diversification was important while economy and export basket concentrated in a few products could be very vulnerable and prone to destabilization.

“Sustainable and continued economic development becomes very unlikely, if not impossible, in such a destabilised economic environment.

“In addition, a strong and diversified manufacturing sector across the region will increase the impact of SACU as an integration tool for all of us.

Competitive and diversified manufacturing will increase the trade potential among us.

“Our economies have resources that can be utilised to spur economic growth through the development of both our agriculture and manufacturing sectors.

“We must redouble our efforts to build and rehabilitate the regional infrastructure that must underpin production and trade growth,” he said.

The SACU chairperson said enormous opportunities for cross border trade within Africa in food products, basic manufacturing and services remain unexploited.

Cross border production networks that have been a significant feature of development in other regions, especially East Asia, are yet to materialise in Africa, hence the renewed focus on sectoral cooperation through a value-chain approach to industrial development, Zuma noted.

“We need to utilise our resources to change the region’s fortunes away from being an exporter of primary products and an importer of manufactured goods.

“Challenges on our own continent remind us of the immense burden of responsibility we carry as African leaders, to bring about substantive improvements to the material wellbeing of all our citizens.”

The South African leader said as agreed, “SACU must continue to play an important role in the economies of its Member States and that it should be transformed into a vehicle for regional integration capable of promoting equitable development and the new SACU Vision.

“Consequently, as leaders, we agreed on the need to take bold decisions, requiring a collective commitment towards securing the long-term economic prosperity of our region for the benefit of our people.

“We need to consider very seriously what we can do to avert these crises for the benefit of our people.

As SACU Member States, we need each other more than ever before.”

President Geingob on his part said member countries needed to work together to further deepen and strengthens the customs union.

He said they needed to work on the priority areas of focus of the union including a review of the revenue sharing model, intellectual property, industrial development, industrial policy, and strengthening the capacity of the SACU Secretariat, amongst others.

“A worrying global development is the discrepancy in income distribution across and within nations.

The rich are getting richer while the poor remain in a vicious poverty trap.

“Therefore, prosperity must be shared and growth must be inclusive. Furthermore, let us be cognisant of the dangers of unequal economic development.

What we want for our Union and region are economies characterized by sustained and inclusive growth as well as stable political climates,” he said.

Geingob noted that that leaders of the union’s member states need to be cognisant of the dangers of unequal economic development.

Geingob noted that it was political will and commitment to the economic integration process that will determine the success of the regional body.

“What we want for our union and region are economies characterised by sustained and inclusive growth, as well as stable political climates,” Geingob said.

“Let us continue to work together as a family in this SACU house to build a strong and prosperous sub-region where nobody should feel left out.”

Geingob shared Zuma’s sentiment about the need for economic diversification.

He said the African Development Bank undertook a study on the prospects for the economic integration of Southern Africa.

“The study indicates that Africa must transform its weak production structures and fragmented markets by embracing economic integration with a renewed sense of purpose and direction.

“The ghastly alternative would be a sub-continent at risk of marginalisation in its participation in the global economy.

“In this regard, we need to transform our region into a hive of economic opportunities and in so doing; make economic participation more accessible and inclusive,” said Geingob.

Geingob however said he was happy that they have made progress in institutionalizing the Summit of the SACU Heads of State and Government.

“It can thus be expected that the SACU Summit will strengthen sub-regional stability and development, and increase investor confidence in our sub-region.

The extent of our political will and commitment to the economic integration process will determine the success of SACU.”