Zuma aims to end row with neighbours

Cape Town - President Jacob Zuma will host a two-day summit of the five-nation Southern African Customs Unit (Sacu) in July, the government said on Tuesday.

"President Jacob Zuma will host a summit of Sacu leaders in Pretoria from July 15 to 16 to discuss the challenges Sacu is facing and discuss the way forward," government spokesman Themba Maseko told a post-Cabinet briefing.

Grouped within the world's oldest customs union are South Africa, Botswana, Lesotho, Namibia and Swaziland.

It has been threatened by a bitter row between members over an economic partnership agreement with the European Union. Botswana. Lesotho and Swaziland have signed an interim agreement, while South Africa objects to what it calls "inconsistencies" in the deal.

Trade and Industry Minister Rob Davies has warned that it is crucial to resolve the disagreement to keep the customs union going.

"The issue is not yet resolved and we are looking to the summit to show us the way forward," Davies's spokesman Sidwell Medupe said on Tuesday.

The four smaller member countries depend on revenue from the Sacu pool to cover between 20% and 40% of their annual budgets.

- Sapa