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
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