21 Feb 2017 16:40pm
WINDHOEK, 21 FEB (NAMPA) The Southern African Customs Union (Sacu) has registered an improvement in the revenue pool, which could increase the revenue allocation to member countries.
This was revealed by Sacu Executive Secretary, Paulina Elago at a media briefing after she paid a courtesy call on President Hage Geingob at State House on Tuesday.
Sacu revenue allocation to Sacu member states may be different from last year as there have been improvement in the revenue pool; that is what most member states will be happy with, Elago said.
She explained that the revenue sharing are determined by the customs and excise duties collected through trade activities in the region.
Sacu, one of the oldest customs unions in the world, is 105 years old and consists of five members - Botswana, Lesotho, Namibia, South Africa and Swaziland.
She noted that the Unions revenue toward Namibia was reduced by about N.dollars 3 million in 2016, because of the economic decline that impacted revenue sharing.
Elago stressed that Sacus revenue sharing formula determine the annual shares being distributed among Sacu members, thus it will not be a surprise for Namibia to get funds.
The executive secretary explained that shares are allocated based on projections.
When the shares are collected, Sacu does recalculation which determines a surplus or deficit in the revenue allocations based on the difference encountered, Elago said.
She further noted that the Sacu Council of Ministers are busy reviewing the revenue formula which is intense and involve many scenarios.
Elago said the review of the formula will further be discussed during the Council of Ministers meeting scheduled to take place at the end of March in Namibia.
The council of ministers will review certain principles of revenue sharing formula and one of them is that no country will be worse off, she said.
Elago added that the meeting will agree on the guideline to regional integration, industrialisation and tariff setting mechanisms that will be applicable to all member states.