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Johannesburg - Addressing "inadequate" diversification in industrial output and infrastructure will help achieve sustainable growth and development in many African countries, Minister of Trade and Industry Rob Davies said on Friday at a Southern African Customs Union (Sacu) conference.
The union comprises SA, Namibia, Botswana, Lesotho and Swaziland.
Davies said that the customs union would need to work on improving regional industrial development and value-added productive activities.
As part of its 100-year anniversary, Sacu recently adopted a new vision to transform into an economic community with equitable and sustainable development.
"Sacu must be transformed and serve as a platform for engagement in trade relations. It must be a developmental vehicle," Davies told the conference.
"The global economy is undergoing major structural change," Davies said, adding that Sacu should take advantage of this and increase trade with developing countries that were forecast to be responsible for most of the global growth in a few years' time.
"Countries in developing world remain important partners to us all," he said.
A growing middle class and urbanisation in Africa would be the potential growth drivers to look out for, Davies noted.
Revenue sharing
A review of the Sacu revenue-sharing arrangement "must take place", said Tswelopele Moremi, Sacu's executive secretary.
"How does one ensure revenue sharing that supports the new Sacu vision? How do we ensure predictability and guard against external shocks," Moremi said.
Leaders within Sacu, comprised of SA, Namibia, Botswana, Lesotho and Swaziland, have admitted that one of the weaknesses of the revenue-sharing formula was its vulnerability to volatile economic cycles.
The new revenue-sharing arrangement should bring about "great predictability" and support regional integration, Davies told the conference.
The union comprises SA, Namibia, Botswana, Lesotho and Swaziland.
Davies said that the customs union would need to work on improving regional industrial development and value-added productive activities.
As part of its 100-year anniversary, Sacu recently adopted a new vision to transform into an economic community with equitable and sustainable development.
"Sacu must be transformed and serve as a platform for engagement in trade relations. It must be a developmental vehicle," Davies told the conference.
"The global economy is undergoing major structural change," Davies said, adding that Sacu should take advantage of this and increase trade with developing countries that were forecast to be responsible for most of the global growth in a few years' time.
"Countries in developing world remain important partners to us all," he said.
A growing middle class and urbanisation in Africa would be the potential growth drivers to look out for, Davies noted.
Revenue sharing
A review of the Sacu revenue-sharing arrangement "must take place", said Tswelopele Moremi, Sacu's executive secretary.
"How does one ensure revenue sharing that supports the new Sacu vision? How do we ensure predictability and guard against external shocks," Moremi said.
Leaders within Sacu, comprised of SA, Namibia, Botswana, Lesotho and Swaziland, have admitted that one of the weaknesses of the revenue-sharing formula was its vulnerability to volatile economic cycles.
The new revenue-sharing arrangement should bring about "great predictability" and support regional integration, Davies told the conference.
