Cape Town – Leaders of the Southern African Customs Union met in Cape Town on 26 June 2026 for the 9th SACU Summit of Heads of State or Government, adopting a communiqué that charts the bloc’s response to global economic turbulence and commits to a new regional funding mechanism worth R5 billion.
South African President Cyril Ramaphosa chaired the summit, attended by King Mswati III of Eswatini, Botswana President Advocate Duma Gideon Boko, Namibian President Dr Netumbo Nandi-Ndaitwah and Lesotho Prime Minister Samuel Ntsokoane Matekane.
The summit welcomed and congratulated Dumisani Masilela on his appointment as SACU Executive Secretary. 
Leaders deliberated on rising protectionism, unilateralism and ongoing global conflicts that have disrupted supply chains, pushed up energy and food prices and dampened the global growth outlook. The summit noted the growing importance of South-South cooperation as a buffer against these negative effects.
On trade access, the summit welcomed the extension of the African Growth and Opportunity Act to December 2026 but called for a further extension of at least 15 years to protect trade continuity, market access, industrial capacity and job security.
A major outcome of the summit was the approval of a SACU Regional Innovative Funding Mechanism, a Fund of Funds with an initial capitalisation of R5 billion spread across the 2027/28 and 2028/29 financial years. The funding will be drawn from the Common Revenue Pool and made available to support development projects across all member states. Leaders directed that further technical work be undertaken to establish the fund’s governance, management arrangements, access criteria, project pipeline, legal requirements and opportunities to mobilise additional funding sources.
The summit noted significant progress in implementing the SACU Strategic Plan for 2022 to 2027, built on six pillars covering industrialisation, export and investment promotion, trade facilitation and logistics, AfCFTA implementation, unified engagement with third parties, finance and resource mobilisation, and institutional effectiveness. The plan’s extension to the 2028/29 financial year was approved following a mid-term review.
On trade facilitation, the summit reported that regional joint enforcement operations targeting illicit trade had resulted in seizures and detentions valued at approximately R479 million, covering tobacco products. Leaders committed to deepen cooperation to combat illicit trade and welcomed the continued roll-out of the SACU Regional Authorised Economic Operator Programme.
Regarding the African Continental Free Trade Agreement, the summit called on member states to fully leverage the AfCFTA to build resilience and protect against global supply chain disruptions, noting progress on tariff liberalisation commitments and ongoing negotiations.
On third-party engagements, the summit noted the entry into force of the COMESA-EAC-SADC Tripartite Free Trade Area Agreement on 25 July 2024, the conclusion of bilateral tariff negotiations between SACU and the East African Community, updates on Angola’s accession to the SADC Protocol on Trade, and the resumption of negotiations with India alongside new engagements with China and the United States. Leaders reiterated that SACU must continue to negotiate as a bloc to preserve the integrity of the Common External Tariff.
The summit directed that the SACU re-imagination process be concluded by the end of July 2027, following a Ministerial Retreat held on 24 June 2026 to discuss governance and institutional effectiveness.
Botswana will assume the SACU chairmanship from 15 July 2026 to 14 July 2027, succeeding South Africa. The summit commended President Ramaphosa for his leadership during South Africa’s tenure and congratulated President Boko on his forthcoming assumption of the chairmanship.
