In 2011/12, SARS signed Memoranda of Co-operation with the Botswana Unified Revenue Service (BURS), the Dutch Tax and Customs Administration (DTCA), the Seychelles Revenue Commission (SRC) and the Swaziland Revenue Authority (SRA). These agreements serve as the foundation for close co-operation and sharing of expertise and best practice between administrations. In keeping with its commitment to developing tax and customs capacity on the continent, SARS continued to provide assistance to other African administrations in the form of workshops, study visits and attachments. As part of its outreach and capacity building initiatives, SARS introduced a Capacity Building Programme under which it hosted events on taxation in the mining sector, customs modernisation and investigation and audit. SACU has adopted a regional customs policy, which lays the basis for the implementation of the trade facilitation programme. This policy seeks to promote the common strategic objectives of facilitating legitimate trade. The key pillars of the policy include Customs Legislation; Risk Management; Trade Partnerships; Standard Operating Procedures; and Customs Information Technology (IT) Connectivity. Guided by the Trade Policy and Strategy Framework and in support of its industrial development objectives, the Department of Trade and Industry (DTI) played a prominent role in efforts to strengthen trade and economic integration in Africa. Within the SACU Council, a work programme on industrial development has been agreed to. Eight sectors have been identified for cross-border complementarities and value-chains. These sectors are: agroprocessing, leather & leather products, automobiles, clothing & textiles, renewable and alternative energies, mineral beneficiation, pharmaceuticals. The agro-processing sector is currently a pilot case. Additionally, a process has been initiated to develop a common SACU position on the Rules of Origin (RoO) for clothing and textiles in relation to the SADC. This will form the basis of a common negotiation mechanism for future agreements that SACU enters into. In SADC, the view was successfully advanced that focus should be given to consolidating the Free Trade Agreement (FTA), rather than moving towards a customs union. SADC has also adopted a regional industrial development policy framework that aims to promote cooperation between Member States through the development of regional value-chains. As part of advancing development and regional integration in Southern Africa and Africa, a summit was hosted where negotiations to have the T-FTA were launched. The summit adopted a developmental integration agenda premised on three pillars, i) market integration through the Tripartite Free Trade Agreement; ii) industrial development to promote development and employment; and iii) infrastructure development. South Africa’s position regarding timing, scope and broad principles to boost intra-Africa trade was accepted in the African Union (AU) Summit in January 2012. The South African position proposes a gradual and functional approach to continental integration that builds on regional efforts such as the T-FTA. This work was undertaken based on the recognition that the continent has become the biggest opportunity for South Africa, and the country, therefore, has to position itself to assist with the regeneration and industrialization of Africa. The lack of adequate infrastructure in Southern Africa is a limitation to trade and investment growth. In order to address this, the South African President is leading the development, financing and implementation of priority projects on rail and road networks along the North 53

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