Building regional integration in Southern Africa: Southern African Customs Union as a driving force?

Abstract

The unveiling of the new Southern African Customs Union (SACU) Agreement in 2002 inaugurated new democratic institutional structures for SACU. The revised SACU Agreement provides for accession by new members. Although not new, the idea of expanding SACU has gained currency in recent years. It has been suggested that enlarging SACU could overcome the ‘spaghetti bowl’ problem of overlapping regional membership of the Southern African Development Community (SADC) countries. In spite of its allure, however, enlarging SACU membership is likely to run into difficulties as negotiations about the common revenue pool and the common external tariff become bogged down by attempts to accommodate the needs and interests of countries at different levels of development. It would also spark debate about how the revenue-sharing formula should be restructured and extended to new members. Moreover, whether SACU can act as a driver of regional integration will depend on the extent to which South Africa, the regional power, can translate its hegemonic position into a leadership role.