2013

SWAZILAND

A 66 Robert Mugabe Avenue

Windhoek

Namibia

Private Bag 13285

Windhoek

Namibia

Standard Bank Namibia Limited

e o the Auditor enera

th oor inan e ou e

igh ourt Road

PO Box 502

Ma eru Le otho

AD INIS A I N

SWANA

1

IS SAA the or d o de t u tom union the Southern A ri an u tom nion SA date ba k to 188 u tom nion onven on bet een the Bri h o on o a e o ood o e and the Orange ree State Boer Re ub i A ne agreement igned on une 2 1 10 a extended to the nion o South A ri a and the Bri h igh ommi ion erritorie i e Ba uto and Le otho Be huana and Bot ana and S a i and South We t A ri a Namibia a a de a to member in e it a admini tered a art o South A ri a be ore it be ame a de ure member he rimar goa a to romote e onomi deve o ment through regiona oordina on o trade

he 1 10 SA Agreement hi h a in e e t un 1 6 reated the o o ing A ommon externa tari on a good im orted into the nion rom the re t o the or d a ommon oo o u tom du e

a er the tota vo ume o externa trade and ex i e du e ba ed on the tota rodu on and on um on o ex i ab e good ree movement o SA manu a tured rodu t ithin SA ithout an du e or uan ta ve re tri on A revenue haring ormu a RS or the di tribu on o u tom and ex i e revenue o e ted b the union

A ear a 1 25 South A ri a ado ted im ort ub tu on indu tria i a on S o i ie ba ked b the ommon externa tari on non SA rodu t he e mea ure guaranteed a regiona market or South A ri an manu a ture hi e re ega ng the Bri h igh

ommi ion erritorie to rodu ing rimar ommodi e nder a artheid South A ri a a the o e admini trator o the ommon SA revenue oo e ng SA im ort du e and e ng ex i e o i

he 1 6 SA Agreement igned b the overeign tate o Bot ana Le otho and S a i and BLS and South A ri a on the in u ion o ex i e du e in the revenue oo and a mu ier in the revenue haring ormu a that enhan ed BLS revenue annua b 2 er ent

o ever imi ar to the 1 10 agreement South A ri a retained the o e de i ion making o er over u tom and ex i e o i ie t a o retained o en a e to the BLS market hi e the high ommon tari rai ed barrier or Southern A ri an neighbor ex ort

to SA he e trade diver ng e e t bene ted South A ri an manu a turer

With the inde enden e o Namibia in 1 0 and the end o a artheid in South A ri a in 1 SA member embarked on ne nego a on in November 1 hi h u minated in a ne SA agreement in 2002

he 2002 SA Agreement addre ed the o o ing three out tanding i ue oint de i ion making ro e e Ar e 3 e tab i hed an inde endent Admini tra ve Se retariat to over ee SA ith it

head uarter in Windhoek Namibia Ar e reated evera inde endent in tu on in uding a oun i o Mini ter a u tom nion ommi ion e hni a Liai on ommi ee a SA ribuna and a SA ari Board he e in tu on are de igned to

enhan e e ua ar i a on b member tate he 2002 Agreement a o rovide or o i oordina on in agri u ture indu tr om e on and un air trade ra e and rote on o in ant indu trie

Ne Revenue Sharing ormu a Revi ion o the RS to in ude a u tom ex i e and deve o ment om onent ue on o externa out ide SA trade the need to deve o trategie that enhan e the o i a e onomi o ia and u tura

integra on o the region ithout eo ardi ing the e onomie o the ma er tate 1 6 SA Agreement Signed b the overeign tate o Bot ana Le otho and S a i and BLS and South A ri a on e ember 11 1 6

SA

S A

A SA

2

3 i ion Mi ion and Work rogramme

Me age rom the hair er on o the SA oun i

o Mini ter

6 xe u ve Se retar re ort

10 SA tru ture and Management

A 1

18 rade a i ita on

A 2

22 Revenue Management

A 3

2 rade Nego a on

A

26 Po i eve o ment and Re ear h

A

2 Regiona ntegra on

A

2 n tu ona eve o ment

ANN 1

3 SA Member tate e onomi er orman e on nued

e onomi un ertain e

ANN 2

50 Member tate e onomi indi ator and trade ta

53 Annua nan ia tatement

Li t o abbrevia on

5 Li t o tab e

N N S

o be a regiona eader exem i ing the idea ra e o

roviding ua it ervi e to a u tom nion

Serve a an engine or regiona integra on and deve o ment

indu tria and e onomi diver i a on the ex an ion o intra

regiona trade and inve tment and g oba om e vene

Bui d e onomi o i oheren e harmoni a on and

onvergen e to meet the deve o ment need o the region

Promote u tainab e e onomi gro th and deve o ment or

em o ment rea on and overt redu on

Serve a a bui ding b o k o an ever o er ommunit among

the eo e o Southern A ri a

eve o ommon o i ie and trategie or area u h a trade

a i ita on e e ve u tom ontro and om e on

eve o e e ve tran arent and demo ra in tu on and

ro e e

W Regiona indu tria deve o ment o i

Revie o the Revenue Sharing Arrangement

rade a i ita on

eve o ment o SA in tu on

ni ed engagement in trade nego a on

3

am great honoured to have been given the o ortunit on beha o the overnment o the ingdom o Le otho a hair er on o the SA oun i o Mini ter hi annua re ort high ight ke deve o ment or the 2012 13 nan ia ear

uring the ear under revie g oba e onomi re over remained ragi e and out ook un ertain Po i ie in the ma or advan ed e onomie had imited im a t in rebui ding on den e in the medium term he un ertaint about the dire on o the S a

o i on nued to reo u inve tor and the nan ia ha enge in the uro Area rai ed a arm about the viabi it o the uro Area nem o ment remained e evated in man art o the or d and nan ia ondi on remained eak

n advan ed e onomie gro th rea hed ver o eve to make a ub tan a dent on unem o ment or the ma or emerging market e onomie gro th a trong at the tart o 2012 and tarted ta ering o therea er

he h oint A ri an nion onomi ommi ion or A ri a on eren e o A ri an Mini ter o inan e P anning and onomi eve o ment noted that the o do n in g oba e onomi gro th a making A ri a a magnet or inve tment and a a e haven or

interna ona a ita hi high ight that A ri a remained re a ve re i ient throughout the g oba o do n ven then on ern about the ma or deve o ed e onomie u h a SA and uro e have ro ound im i a on or our region he e are ke market or ex ort rom our region and trategi artner urther ith the re ogni on that trade ith A ia i gradua in rea ing

Signi ant deve o ment have on nued to take a e in the A ri an on nent Sub Saharan A ri a itne ed u tained gro th hi e g oba e onomi ondi on remained b eak here a re ogni on that high and in u ive gro th a a ne e ar ondi on or u addre ing the ha enge that on ront the on nent SA Member State on nued to regi ter o i ve P gro th on i tent

ith the re t o the on nent Whi t thi a not u ient the o i ve gro th igna ed re i ien e in the e onomie though gro th rate are o er than the re g oba e onomi ri e eve n ra tru ture deve o ment a riori ed in a the Member State budget ee he hi hou d mu ate e onomi gro th and urther addre the unem o ment rob em that the region i re ent a ed ith

A a region a ke i ue that re uired on idera on a hether the g oba e onom a u t hi ng another bout o turbu en e in hat a a a ex e ted to be a o and bum re over or hether the urrent o do n a to ta ith u or onger eriod

SSA AI S N SAN IL INIS S

D L

he ta emate that re u ted rom the oha Round o Nego a on during the Mini teria on eren e o the reviou ear e the region ithout guidan e or the ongoing te hni a ork he on e uen e o thi ha been de a ed bene t rom hat had been on idered to be a deve o ment round o nego a on

uring the ear under revie and a art o o e monitoring the im ementa on o the SA Work Programme the SA oun i o Mini ter on nued to meet in order to give guidan e to the ork o SA urthermore the oun i o Mini ter took a de i ion to in or orate Mini teria Strategi Se ion ithin their a endar o a vi e hi me i be u ed to di u and addre trategi i ue that ma a e t the a e o the im ementa on o the ork rogramme

A on ude a o me to take thi o ortunit to extend m gra tude to the xe u ve Se retar and the Sta o the Se retariat or their dedi a on and ommitment to the mandate o SA demon trated b their di igen e during the a t nan ia ear hi i

eviden ed b the extent o ork arried out during the our e o the re or ng eriod in u ort o the area o the ork rogramme a a tured in thi re ort

D LMinister of Finance and Development Planning (Lesotho) Chairperson of SACU Council of Ministers

SASA

he mandate o the Se retariat entai the over ight o the SA ore to thi i the rovi ion o te hni a and ogi a u ort re uirement during mee ng o the SA n tu on he SA Annua re ort there ore i a a orm rom hi h the e retariat hare ith it takeho der in orma on on the a vi e o the re eding ear a e the tatu o the o era ona and a e

uring the a t nan ia ear the Se retariat undertook a number o a vi e in the ro e o u or ng the ork o the im ementa on o the SA ork rogramme the e are high ighted a o o

On the Revie o the Revenue Sharing Arrangement a a k eam a et u to deve o addi ona o on on the o e on and di tribu on o revenue he a k team a a o dire ted to inve gate nan ing me hani m to u ort the SA indu tria in ra tru ture ork rogramme Member State re ented o on on a ne revenue haring arrangement A o inked to the ork on the revie o the Revenue haring Arrangement ork a arried out and in ude ork on the e tab i hment o the SA

eve o ment und ommen ed a tud on the d nami e e t o the ex an ion o SA Member hi an ana i to determine the im a t o in uding ex uding rebate and dut dra ba k in the ommon Revenue Poo RP and the u e o the varia on o the Leith Mode to e mate the o t rai ing o ering e e t in Member State

o abora on ith nterna ona Organi a on u h a the M ith hom e hare the ame ob e ve on nued during the ear under revie he M re ared and re ented a re ort on regiona integra on in Southern A ri a o u ing on the SA Member State he Re ort en t ed S A bui d on the ork on minimi ing the vo a it o Revenue Share or SA Member State t high ighted exi ng bene t ha enge and uture o ortuni e or dee ening the integra on ro e in SA a e a the bene t o the ommon Monetar Area Other i ue high ighted in ude the vo a it o the SA revenue and the unem o ment ri i a ed b SA

n the area o rade a i ita on o o ing the ado on o the Regiona u tom Po i igni ant rogre ha been a hieved in the area o u tom t nter onne vit here Member State have agreed to ur ue automa on and inter onne vit o u tom n orma on te hno og S tem to enab e the me e e troni ex hange o data bet een u tom Admini tra on Pi ot ro e t

bet een u tom admini tra on in Member State ommen ed during the ear under on idera on On u tom egi a on a ra u tom Bi and a ra u tom ut Bi have been ado ted a mode egi a on in SA Member State are urrent

I S A S

ecu ve Secretar

7

interroga ng the dra bi ith a vie o u i ing them a a ba i or deve o ing imi ar bi or dome u tom egi a on On u tom n or ement and Ri k Management during the a t ear a oint en or ement o era on o era on Auto a arried out

targe ng im orted e ond hand motor vehi e

SA ha iden ed trade artner hi a a vehi e or a hieving trade a i ita on ob e ve uring the ear under revie ork to ard aun hing a re erred trader rogramme on nued he an i to aun h thi rogramme in the oming nan ia ear On another note the iden a on o riorit area to under in a tran ort rogramme in SA ommen ed during the ear under revie thi ommen ed ith the e tab i hment o orking grou in the area o tran orta on o dangerou good road a et and tran ort do umenta on

Work on SA rade re a on and rade Nego a on ith third ar e under the OM SA A SA ree rade Area on nued A roadma or the e tab i hment o the A a e tab i hed and an agenda in ervi e and trade re ated area a in or orated he o u or the oming ear i be on deve o ing moda i e or nego a ng on tari ibera i a on On the SA PA nego a on ork on nued and i ex e ted to on nue into the next nan ia ear On the SA A A a on u ta ve ro e a tarted

to on ider the revie o the market a e rovi ion a rovided or in the agreement Work on the SA SA A nve tment and eve o ment oo era on Agreement ha tem orari ta ed Mean or the ar e to re engage are being ur ued ith the ne a ointed S rade Re re enta ve he SA M R ORS R P A ha not been im emented due to the o rogre o ra a on on both ide he SA Agreement 2002 doe not make rovi ion or rade in Servi e he rea i a on o the im ortant ro e a ed b ervi e in the e onomie o Member State ed to the in or ora on o trade in ervi e into the SA Priorit Work Programme

uring the re or ng eriod ork on deve o ing a SA ide ndu tria eve o ment Po i on nued ith the ommi ioning o a re ear h tud to rovide in ut or a detai ed Po i On agri u tura o i re ated ma er ork a ommi ioned to a e the merit o the agri u tura rebate uota to enab e the BLNS to im ort ertain ta e ood ommodi e dut ree On the ru e o origin on tex e and othing rodu t a tud a ommi ioned the re u t o hi h i a i t SA ana e the o ib e im a t o a hange in the Ru e o Origin on SA and SA Member State On un air rade Pra e and om e on Po i ork on the deve o ment o the annexe on the re evant ar e o the SA Agreement 2002 ha ommen ed

SASA

8

On the Strengthening o the Se retariat oun i dire ted the Se retariat to deve o a om rehen ive organi a ona tru ture to u ort the Mi ion and i ion o the organi a on uring the month o ebruar and Mar h 2012 the Se retariat ommen ed ork

to deve o an organi a ona tru ture in order to de ne the arameter and ontext or a Se retariat trateg n taking thi ork or ard the oun i took a de i ion to onvene a Mini teria Strategi Retreat hi h a to rovide an o ortunit or a trategi

and or ard ooking di u ion on the undamenta i ue that an in orm and rovide im etu to SA a it ur ue the SA i ion and Mi ion and im ement it Work Programme he Mini ter urther de ided that in uture one da be et a ide annua re eding a orma oun i mee ng or Mini ter to in orma di u a i t o iden ed trategi i ue he e trategi i ue i be

determined in advan e b the Se retariat and re ommended to oun i b the ommi ion

o o ing the oun i Retreat he d in Augu t 2012 the ommi ion took a de i ion to onvene it o n Retreat during the month o November 2012 he ur o e o thi retreat a rimari to agree on an a on an to o era ona i e the de i ion o the Mini teria Retreat ithin the ontext o the ve riorit ork area and to on ider the ini a ork undertaken b the Se retariat on the deve o ment o a SA ide trateg

n the area o the Se retariat o era ona ini a ve the ommen ement o the ork on the on tru on o the SA head uarter bui ding tarted on 6 Se tember 2012 ith the o ia hand over o the ite to the a ointed on tru on om an Ne ra inve tment he ro e t i hedu ed or om e on in the third uarter o 2013 n order to addre kno edge management and redu e the ri k a o iated ith ina ro riate a e to or orate in orma on the Se retariat ommen ed the ro e t o im emen ng an e troni o ument and Re ord Management S tem RMS A a re on e to takeho der re ue t or an on ine re our e that ade uate ommuni ate the rede ned vi ion o SA the Se retariat embarked on a ro e t to reengineer the organi a on eb ite he SA Mer handi e rade and onomi Sta data ba e a aun hed in A ri 2012 An inde endent revie o de i ion making o i ie ontro and e urit o i ie a arried out in ine ith re ommended overnan e ra e

he Se retariat bu ine a i a on and torage ere u e u virtua i ed during the ear under on idera on

I S A S

9

A in reviou ear the Se retariat Management on nued to exer i e du iar management in the u i a on o the re our e entru ted u on it or o era ona ur o e uring the ear under on idera on the organi a on on e again re eived an un ua i ed audit rom the audit exer i e or the nan ia ear 2012 13 n thi regard a om rehen ive re ort o the Se retariat nan ia a e a the O era ona nvironment a o orm art o thi re ort

n on u ion ou d ike to o er m in ere gra tude to the SA oun i o Mini ter ho or their overa trategi eader hi and o i dire on the SA u tom nion ommi ion or their over ight and guidan e in the im ementa on o the SA Work Programme A o de erving e ia men on i the Re ub i o Namibia a the o t ountr the or their ho ita it and u ort the oo era ng artner or their ontribu on in the ro e o taking the Work o SA or ard he Se retariat Sta ho e dedi a on

and ommitment annot be over em ha i ed and i demon trab e through making the mandate o the Se retariat a hievab e ear on ear

thank ou

ecu ve Secretar

10

S S SAS NI ANA N

1 DUMISANI MAHLINZA ire tor rade a i ita on and Revenue Management

2 HISKIA NDJAVERA nterna Auditor

3 DAVID MALELEKA e ut ire tor Revenue Management

4 ANTON FAUL ire tor Po i eve o ment and Re ear h

5 TSWELOPELE MOREMI xe u ve Se retar

6 JULIUS MAPATHA ire tor or orate Servi e

11

7 YUSUF DAYA e ut ire tor rade a i ita on

8 RUMBIDZAISHE CHINYOKA Lega O er

9 MAUREEN MATOMOLA e ut ire tor Po i eve o ment and Re ear h

10 NDIBO OITSILE hie Lega O er

11 MARK BENNETT ari Board oordinator

12 ROLF-JOACHIM OTTO e ut ire tor rade Nego a on

12

1 MOHAMMED HOOSAIN inan e Manager

2 LINDIWE DLAMINI ommuni a on Manager

3 MOLUPE PHEKO Po i eve o ment oordinator

4 SUSARA VAN RENSBURG rade nego a on oordinator

5 KHUTSAFALO SEKOLOKWANE Po i Re ear her

6 LEONARD PHUTHI rade nego a on oordinator

7 ABEL SINDANO rade ata Ana t

S S SA N IN D

S A IA S A

13

8 RICHARD YAWE S e ia i t

9 LESLIE MPOFU ran ort S e ia i t

10 MARCEL RATSIU u tom S e ia i t

11 MOTSELISI MATSELA onomi t

12 THEMBA TLADI uman Re our e Manager

13 ALETTA SHATONA Re ord and n orma on O er

14 SOPHIA LUBAKI uman Re our e O er

15 HERMANUS ESTERHUIZEN Pro urement O er

1

S S SA N IN D

S A IA S A

17 PRUDENCE KOTZE A ountant

18 ANNELINE MATHIS Se retar xe u ve Se retar O e

19 ROSALIA AUGUSTINUS Se retar hie Lega O er

20 ANITHA GANASES Se retar ire tor Po i eve o ment

and Re ear h

21 DORIAN AMATETA Se retar ire tor rade a i ita on

Revenue Management

22 ELSEPTOY MAMAREGANE PA xe u ve Se retar

1

23 INGRID NANUS Re e oni t

24 MARIA HEWICKE inan e A i tant

25 ABED SHIPINGANA river

26 ELSON KAMBURONA river

27 EGIDIUS NAMBARA a i i e Admini tra on o er

28 DAVID NALUPE hau eur

29 GIDEON PINEAS and man

1

17

D

A 1

18

A 2

22

A 3

2 N

A

2 D

A

27 I D

A

29

n eeking to im rove the trade environment ithin Member State and the u tom nion trade a i ita on i a ke om onent o the SA mandate rade a i ita on i arge u ed to im rove the regu ator inter a e bet een government bodie and trader at na ona border t rimar goa are to redu e the tran a on o t and om exit o interna ona trade or bu ine and to im rove the trading environment in the region hi e imu taneou o mi ing e ient and e e ve eve o government ontro and revenue o e on

rade a i ita on demand a om rehen ive and integrated a roa h in order to deve o a on i tent tran arent and redi tab e environment en ouraging troub e ree interna ona trade tran a on t in ude a mea ure ne e ar to a i itate the movement o good a ro border

At SA trade a i ita on ro edure are ba ed on interna ona a e ted norm and ra e ertain orma i e and ro edure have been im i ed in ra tru ture and a i i e im roved and a i ab e a and regu a on rea igned

SA trade a i ita on rogramme addre e a number o i ue in e onomi deve o ment and trade in member tate t on i t o t o art the SA W O u tom eve o ment Programme hi h in or orate the ve ke u tom ini a ve and the ran ort Se tor Programme Other area in ude romo ng greater u tom oo era on remova o non tari trade barrier and enhan ing u hain a ro the region to u ort deve o ment

uring the 2012 2013 nan ia ear SA on nued to on entrate on the main trade a i ita on om onent hi h orm art o the SA W O u tom eve o ment Programme he e are u tom o i deve o ment u tom egi a on tandard o era ng

ro edure onne vit ri k management and trade artner hi SA on nue to ur ue the ve u tom ini a ve hi h are a ommodated under the SA W O u tom eve o ment Programme he e are e e troni data inter hange one to border oint u tom ontro and a a it bui ding SA a o iden ed riorit area in the tran ort e tor hi h are re uired to trengthen regiona trade a i ita on

SA W Dn rea ing a en on i hi ing rom na ona or regiona oordina on to interna ona oordina on o border a vi e SA

Member State are a member o the Wor d u tom Organi a on W O and o the Wor d rade Organi a on W O n re on e to the hanging demand o interna ona trade the e organi a on are invo ved in moderni ing the ro e e under inning trade bet een e onomi o erator nder it o umbu Programme the W O a a it Bui ding ire torate ha entered into an agreement

ith SA to rovide te hni a and trategi u ort ith the de ign and im ementa on o ne ini a ve oda the SA W O u tom eve o ment Programme i one o the nion ag hi rogramme

n e ember 2008 the oun i o Mini ter ado ted the om rehen ive u tom eve o ment Programme or SA he rogramme bui d on the rogre a hieved under the ve u tom ini a ve that SA ha ur ued in e 200 he main goa o the SAW O rogramme i to ontribute to the deve o ment o a u tainab e and im roved e onomi environment in SA regarding trade e urit and o ia rote on here u tom authori e be ome air and e e ve trade management artner he rogramme i a i t SA member ountrie to om ith interna ona u tom in trument and moderni e their re e ve u tom

admini tra on t i a o advi e them on the de ign and im ementa on o a om rehen ive regiona re orm rogramme ith a o u on o i deve o ment egi a on ri k management trade artner hi tandard o era ng ro edure in ommon area and

onne vit he rogramme i u orted b the S edi h nterna ona eve o ment oo era on Agen S A and the W O

A 1 AD A ILI A I N

I

18

19

uring the ear under on idera on im ementa on o the SA W O u tom eve o ment Programme on nued o o ing the ado on o a

regiona u tom Po i b the SA oun i o Mini ter at it 25th mee ng in e ember 2011 igni ant rogre ha been a hieved in the area o regiona ri k management and en or ement u tom inter onne vit u tom egi a on and artner hi ith the trading ommunit

A ore ob e ve o regiona u tom a vi e re ate to the rote on o o iet and omba ng i i it trade uring the a t ear SA u tom admini tra on ondu ted a oint en or ement o era on O era on Auto targe ng im orted e ond hand motor vehi e hi a the r t ever oint u tom en or ement o era on ondu ted b SA Member State arried

out ith the a i tan e o the W O Regiona nte igen e Liai on O e R LO a tern and Southern A ri a the o era on in or orated training or Member

State o ia on the u e o the W O u tom n or ement Net ork N too and databa e he a tua o era on then o o ed in e ember 2012 and ie ded u e u re u t and e on n the oming ear Member State i oo erate in im emen ng another oint en or ement o era on targe ng one o the iden ed high ri k e tor in the region

n order to a i itate trade in rea e tran aren maximi e revenue o e on and im rove the ua it o trade data Member State agreed to ur ue the automa on and inter onne vit o their u tom in orma on

A

te hno og tem to enab e the me e e troni ex hange o data bet een u tom admini tra on hi automated e e troni tran er o trade in orma on i a o ri k a e ment to be undertaken rior to the arriva o good at the border together ith data mat hing here ne e ar thu redu ing the ro e ing me at border o t onne vit i a o ontribute to genera ng re iab e and a urate trade data romo ng the

e uitab e haring o u tom revenue

uring the a t ear ork on e tab i hing onne vit bet een member tate on nued o o ing the endor ement b SA ead o

u tom to u e ead o Wor d u tom Organi a on W O data haring a roa h kno n a oba Net orked u tom N or the SA region the deve o ment o tandard data u ter or in orma on ex hange ommen ed n the oming ear the data u ter or im ort ex ort and

tran it i be om eted n addi on Member State on nued ith im ementa on o the t o onne vit i ot ro e t One ro e t i bet een Namibia and Bot ana under the ran a ahari orridor ni a ve and the e ond bet een South A ri a and S a i and e t data ha been ex hanged u e u under ea h o the i ot ro e t and thi data i urrent being ana ed and the data ex hange a orm being re ned n

the oming ear the t o i ot onne vit rogramme i be revie ed and a om rehen ive ro o a deve o ed or onne vit in the SA region

20

he a i a on o imi ar egi a on ith regard to u tom and ex i e du e in the u tom nion i a re uirement in term o Ar e 22 o the SA Agreement 2002 and the ro e o re dra ing the u tom and x i e A t ommen ed in 2003 n 2010 thi

ro e u minated in the deve o ment o a ra u tom ontro Bi and a ra u tom ut Bi he ra u tom ontro Bi i intended to regu ate the movement o eo e and good at border and i rimari on erned ith the ontro o good im orted or intended or ex ort he ra u tom ut Bi i regu ate du e a ab e and i on ned to the ev ing a ment and re over o u tom du e on good im orted or ex orted he e dra bi have been ado ted a mode egi a on in SA ith Member State urrent u i ing them a a ba i or deve o ing imi ar dome u tom egi a on

rade artner hi have be ome a va uab e too in a hieving trade a i ita on ob e ve ithin SA SA trade artner hi trateg o u e on trengthening u tom dia ogue hi e a o deve o ing an Authori ed onomi O erator A O Programme he A O rogramme i a artner hi bet een u tom admini tra on and the trading ommunit aimed at re arding om ian e a i ita ng egi mate trade and romo ng mutua re ogni on among member tate and third ar e n deve o ing the A O rogramme member tate agreed on a ha ed a roa h tar ng ith the e tab i hment o a Pre erred rader Programme Pre erred

trader ma in ude inter a ia manu a turer im orter ex orter broker arrier on o idator intermediarie ort air ort termina o erator integrated o erator arehou e and di tributor

uring the ear under revie ork to ard aun hing a i ot re erred trader rogramme on nued A Member State have e tab i hed re erred trader ro e t team at the na ona eve and regiona a a it bui ding rogramme on u tom audit have been a i itated Member State have agreed on the veri a on and audit ro e to be o o ed or re erred trader in the i ot

rogramme and agreed on the tem ate do ument and orm to be u i ed or the re erred trader rogramme At the 2 th oun i o Mini ter mee ng the oun i a roved a et o bene t to be a orded to the rivate e tor under the i ot re erred

trader rogramme he et o bene t ere deve o ed taking into a ount the ri k a o iated ith the bene t mi ga on o tho e ri k and the re uired a abi i e and a a i e to enab e im ementa on o the i ot rogramme in the region n the oming ear it i ex e ted that the Pre erred rade Programme i be i oted in the region

n addi on to the re erred trader rogramme e ort at trengthening dia ogue bet een u tom and trader on nued Member State on nued to engage ith the rivate e tor through their re e ve Na ona u tom to Bu ine orum and a regiona takeho der engagement ith the rivate e tor a ini ated hi regiona di u ion deve o ed erm o Re eren e or e tab i hing

a Regiona u tom to Bu ine orum and it i ex e ted that the regiona orum i be aun hed in the oming ear hi orum i rovide a a orm to di u the ro e o the rivate e tor in the im ementa on o the SA trade a i ita on rogramme a e a

to obtain in ut on the e tab i hment o SA i ot rogramme

A 1 AD A ILI A I N N IN D

21

S SAAt the Mini teria Retreat he d rom 30 Augu t to 1 Se tember 2008 in a ane Bot ana SA mini ter on urred that an e ient tran ort tem i vita or trade a i ita on e e ia in and o ked member tate he agreed that riorit be given to the SA tran ort agenda and the ro e o the tran ort e tor in a i ita ng trade

n 200 SA om eted an a e ment tud on the tran ort e tor o a member tate he a e ment revie ed ea h o the ountrie tran ort e tor mode o tran ort tra vo ume route and i ue re ated to regu a on a in the ontext o ho

the tran ort e tor a i itate or ham er trade in SA ountrie o o ing the om e on o the tud the Se retariat undertook mi ion to a member tate to on ider the out ome and re ommenda on o the re ort

uring the ear a Senior ran ort O ia mee ng a onvened to de iberate on the re ort and iden riorit area to under in a tran ort rogramme in SA t a agreed that ini a o u be imited to road tran ort At the 2 th oun i o Mini ter mee ng the oun i a roved a et o riorit area to under in a Road ran ort Programme in SA he e in ude

eve o ment o a Po i n trument to guide the SA ran ort Se tor A hieving a eam e e ient o t e e ve and non di riminator tran ort tem in SA through the im i a on o

ran ort o umenta on and Road er harge A hieving e uitab e tran ort market a e ithin SA Promo on o a a e re iab e and environmenta riend tran ort tem ithin the region and Strengthening re a on hi ith other Regiona onomi ommuni e

Working rou in the area o tran orta on o dangerou good road a et and tran ort do umenta on have been e tab i hed and ork in the e area ha ommen ed n the oming ear it i ex e ted that im ementa on o the rogramme i on nue

n the 2012 2013 nan ia ear a ke ha enge a the varied a e o im ementa on o u tom re orm and moderni a on e ort at na ona eve hi a due to a a it on traint o the Se retariat and Member State and the di erent deve o menta eve o member tate

hanging trade regu a on a o remain a ha enge or Member State and bu ine e a in rea ing demand or u hain e urit revai n genera the ro border movement o good and ervi e and minimi ing de a at border o t are in need o on nuou im rovement and on u ta on bet een Member State need to be trengthened

AA igni ant a hievement a the r t ever oint u tom en or ement o era on b SA Member State hi o era on targeted im orted e ond hand motor vehi e and rovided va uab e in ight and ex erien e in the oordina on and ondu ng o oint o era on he e on earnt i be a ied to uture oint en or ement o era on

n the oming ear SA intend to hanne it e ort to ard other oint en or ement o era on in high ri k e tor n addi on aun hing the i ot re erred trader rogramme i a o riori ed A revie o the onne vit i ot i a o be undertaken and

an a roa h to inter onne vit or SA i be determined Work on the im ementa on o the tran ort rogramme i on nue and e ort i be dire ted to en ure that the tran ort o i and egi a ve regime or SA i u or ve o trade a i ita on

Regiona SA i a u un oning u tom union ith ree movement o good bet een member tate and a ommon externa tari he 2002 Agreement hen u im emented i enab e SA to be ome more than u t a tradi ona u tom union in that the agreement addre e addi ona ma er u h a ommon o i ie harmoni a on oo era on and oordina on o variou trade and inve tment o i ie Moving into the uture SA i there ore on nue to o u it e ort on im emen ng the ini a ve re uired to a hieve the trade a i ita on ob e ve a er the 2002 SA Agreement

uring the ear under revie e onomi re over a uneven and ragi e ith ome e onomie re overing a ter hi t other e onomie are either on the mend or agging behind uring 2012 o i interven on in the S and in the uro Area averted imminent e onomi and nan ia ri i hi t e ort to revive a an e onom o o ing the 2011 earth uake a o rovided mu u to g oba gro th urthermore o i and tru tura re orm have been ut in a e in the uro Area to re tore on den e and ea e

re ure on the nan ia e tor a e a to bai out heavi indebted member o the nion hi e at the ame me im emen ng igni ant a re orm Ma or deve o ing and emerging e onomie ho ed re i ien e a though there ere on ern that ex e ive a ita in o into the A ian e onomie ma re u t in a et bubb e he o i ve deve o ment in aba ng the e onomi ri i have

not ho ever u rekind ed the g oba e onom and e onomi un ertaint er i t

n ine ith eak g oba e onomi re over e onomi gro th in SA Member State urther de e erated in 2012 he ro onged tagna on in the uro Area hi h i SA arge t trading artner had ro ound im i a on on the e onomie he uggi h gro th

in the S urther dam ened ex ort demand in ar u ar ex ort o othing and tex e under A OA trade re eren e o ever e onomi gro th in SA Member State ha been main u orted b a ommoda ve ma roe onomi o i ie intended to

mu ate gro th

he Revenue Management Sub ire torate ur ue variou ini a ve intended to a o ate Member State revenue hare e uitab hi t at the ame me the Sub ire torate i in the ro e o revie ing the urrent revenue haring arrangement

S Ao o ing it in e on the a k eam on the Revie o the Revenue Sharing Arrangement ha made notab e rogre ith the on nuou te hni a u ort re eived rom the Ad ho ommi ee he a k eam agreed on a number o o i i ue ari ing rom

Member State ro o a and deve o ed rin i e under inning the te hni a nature o the ne revenue haring arrangement Member State ro o a ere te ted or robu tne and tabi it taking into a ount the agreed et o rin i e and the ne SA

i ion and Mi ion Area or onvergen e ere iden ed and a rame ork or onvergen e ha been agreed

he tud on the nami e t o the x an ion o SA Member hi a ommi ioned and the tud i be u ed to in orm the on going ro e o the Revie o the Revenue Sharing Arrangement he tud i be om eted in Se tember 2013

A dra on e tua rame ork on the e tab i hment o the SA eve o ment und a deve o ed and the ro e i on going he eve o ment und orm an integra art o the Revie o the Revenue Sharing Arrangement

t i ex e ted that the ne Revenue Sharing Arrangement i ike to be om eted in e ember 2013

DA art o an e ort to tandardi e the om i a on o P among SA Member State ork on the rogramme or harmoni ing

P om i a on on nued during the eriod under revie A Stud rou om ri ing o re re enta ve o Member State a e tab i hed and on i t o na ona a ount and u tom ex ert rom the Member State he ob e ve o the Stud rou i to undertake a tud on the treatment and magnitude o taxe on rodu t in the SA Member State ith a vie to harmoni ing P om i a on in SA he Stud rou i u orted b te hni a ex ert rom the nterna ona Monetar und M and nited

Na on Sta e artment NS he na om e on date o the re ort on the tud i Se tember 2013

D L SA art o the im ementa on o the A on P an or im roving the o e on om i a on and di emina on o trade data o SA Member State the Se retariat in o abora on ith NS organi ed a eminar on nterna ona Mer handi e rade Sta M S

he ur o e o the eminar a to revie SA Member State ra e in the om i a on o mer handi e trade ta and the

A 2 N ANA N

22

SD

S

23

im ementa on o the ne and u dated re ommenda on on mer handi e trade ta a ontained in nterna ona Mer handi e rade Sta

on e t and e ni on 2010 M S 2010 thereb a o roviding training and guidan e to ar i ant on ho to im rove their M S uring the ork ho

e ia em ha i a given to data om i a on in the a e o a u tom union data ua it the om i a on o the addi ona data item introdu ed in M S 2010 and the a u a on o ri e and vo ume indi e

he e ond a vit that a undertaken on the A on P an during the ear under revie a the rovi ion o te hni a u ort on the u e o RO RA o are he Se retariat in o abora on ith the OM SA Se retariat

undertook mi ion to Member State to rovide hand on training in RO RA a e a te hni a u ort to im rove the rodu on and

di emina on o interna ona mer handi e trade ta Overa a tota o 33 er onne rom Sta and u tom o e ere trained in Bot ana Le otho Namibia and S a i and RO RA i a dedi ated tem or the om i a on o oreign trade ta deve o ed b uro tat S e i a

it enab e u er to im ort u tom data in order to generate externa trade ta revie and ean data b arr ing out re et and ad ho ua it ontro and uer the data generate and ex ort re ort and a u ate a ertain number o aggregate u h a trade indi e

SA

SA

I DMember State have embarked on an ear ex hange trade data rogramme

ith a vie to im i the ro e and redu e the number o re on i ia on mee ng Sin e the ado on o thi rogramme data re on i ia on i or the r t me be om eted in Se tember 2013

Provi ion o te hni a u ort to Member State on the u e o RO RA o are hi h in uded training

he g oba e onomi o do n and un ertain e onomi re over on nue to undermine e ort made to mu ate gro th in the Member State he g oba

o do n ma have nega ve e e t on im ort in the ommon u tom Area hi h ma redu e the i e o the ommon Revenue Poo hi i re u t in

the redu on o Member State revenue hare in ar u ar or Le otho and S a i and here SA re ei t on tute over 50 er ent o the na ona budget

he im ementa on o the ne Revenue Sharing Arrangement a e a the e tab i hment o the SA eve o ment und i be a ma or mi e tone or SA in ar u ar the nan ing o ro border ro e t

A 3 AD N IA I NS

he SA Agreement 2002 u ate that no individua Member State ma nego ate or enter into ne re eren a trade agreement ith third ar e on it o n o give e e t to thi rovi ion the SA oun i o Mini ter de ided that in uture SA i nego ate a

agreement a a b o A nominated Member State i ead a e i et o nego a on roviding the hie nego ator hi a roa h i being o o ed in a nego a on that SA i invo ved in

Sin e the im ementa on o the SA Agreement 2002 SA on uded a ree rade Agreement A ith the Member State o the uro ean ree rade A o ia on A e and Lie hten tein Nor a and S it er and and a Pre eren a rade Agreement P A ith the Member State o the ommon Market o the South M R OS R Argen na Bra i Paragua and rugua n addi on in

2008 SA Member State igned a rade nve tment and oo era on Agreement A ith the SA hi h entered into or e immediate u on ignature

he A SA A ha been in or e in e Ma 2008 and a o in ude Bi atera Agri u tura Agreement bet een SA and e and Nor a and S it er and Lie hten tein re e ve t o er market a e re eren e on a indu tria rodu t a e a a arge number o agri u tura rodu t n term o the bui t in agenda o the Agreement a revie o the market a e rovi ion or a

rodu t i hedu ed to take a e ve ear a er im ementa on o the Agreement A r t te hni a ex hange o intere t ha taken a e and it i ex e ted that the revie i be aun hed in the oming nan ia ear he aim i to im rove market a e ondi on on

both ide thereb a i ita ng an even be er o o good among t the Member State o the t o organi a on

he P A ith M R OS R ha not et been im emented and i ending ra a on b a ignator ar e On e thi ro e i om ete the Agreement i enter into or e a er 60 da o ering margin o re eren e on the tari a ied on e e ted rodu t overed under the agreement

he A re ent a orum or oo era on bet een the SA and SA in a number o area he e in ude u tom oo era on Sanitar and Ph to anitar Mea ure SPS e hni a Barrier to rade B a e a rade and nve tment Promo on A number o te hni a engagement took a e bet een o ia rom both ide aimed at e tab i hing a ba e or oo era on in the e area

urrent the Southern A ri an rade ub ba ed in aborone Bot ana i ondu ng a tud aimed at iden ing te hni a a a it on traint that a e t SA ex ort a e into the SA market under A and their mi ga on mea ure t i ex e ted that the

iden ed on traint i be addre ed through a te hni a a i tan e rogram or through orma oo era on agreement undertaken under the rame ork o the A Overa the A erve a a u e u too to engage ith the SA to a i itate trade and inve tment

o bet een the t o ountrie

With re e t to on going nego a on SA i nego a ng a re eren a trade agreement ith ndia SA i a o ar i a ng in the nego a on ith the on a SA onomi Partner hi Agreement PA a e a the nego a on on a ri ar te ree rade Agreement bet een OM SA the A and SA A SA Member State are a o ar i a ng in the Wor d rade Organi a on W O oha eve o ment Round o nego a on b virtue o them being member o the W O

he SAD A A nego a on have igni ant im i a on or SA and SA Member State Not on i the en ure re eren a market a e or SA e onomi o erator into the bigge t ing e market in the or d but the

i a o a o uro ean o erator a e into the SA market a a ho e t i a o be the r t me that SA Member State trade re a on ith the uro ean nion i be oordinated A though ub tan a rogre ha been made on mo t o the unre o ved i ue ari ing rom the na i a on o the nterim PA in 200 a e ha enge remain in uding market a e or agri u tura rodu t a

e a nding agreement on ome o i i ue in uding the ue on o ex ort taxe and the Mo t avoured Na on

A om i a ng a tor in the e nego a on i the im ending dead ine o 1 O tober 201 or not on having on uded the nego a on but a o having ra ed the Agreement in order or SA Member State e i a Bot ana Le otho Namibia and S a i and not to o e their urrent re eren a market a e into the uro ean nion hi ari e rom the a t that the uro ean nion i ithdra

the re evant market a e regu a on that a o A P State to en o dut ree uota ree a e into the uro ean nion a o that date hi i re uire ub tan a nego a ng ki to re o ve ith me being o the e en e

Nego a on on a A SA A SAD tarted ith the une 2011 ri ar te Summit here ead o State and overnment agreed on a 36 month hedu e to on ude thi agreement SA i a roa hing the e nego a on a a b o under the SA umbre a t i an i ated that the e nego a on i ead to the rea on o a ree trade area in uding 26 ountrie rom ea tern and outhern A ri a and i to a arge extent addre the urrent itua on o over a ing member hi b individua

Member State in di erent regiona trade arrangement

uring the ear under revie the nego a ng ro e o u ed main on ado ng Ru e o Pro edure agreeing on a ork an and a hedu e or the nego a on agreeing on the in orma on re uired to u ort nego a on a e a the ormat and moda i e or the ex hange o in orma on rea hing a ommon under tanding and inter reta on on the nego a ng rin i e ado ted b the

2011 Summit agreeing on the tatu o the dra ri ar te A Agreement and it Annexe e tab i hing e hni a Working rou and a roving their erm o Re eren e

he o u over the oming ear i a on deve o ing moda i e or and ini a ng nego a on on tari ibera i a on n addi on the N i nego ate the text or the ri ar te A Agreement on the ba i o a dra text deve o ed b the ri ar te Se retariat he

text eventua ado ted i be the out ome o the nego a on Other i ue that i re uire a en on are the nego a on on the ree movement o bu ine er on a e a ho to dea ith rade in Servi e

2

2

he nego a on ith I have ex erien ed ome de a au ed b ro onged na ona on u ta ve ro e e in Member State t i ex e ted though that the e ro e e i be on uded oon and that the nego a on i re ume during the our e o the oming ear

he W D D nego a on are on nuing a beit at a ver o a e he o u during the oming ear i a on the Mini teria Mee ng hedu ed or Ba i ndone ia in e ember 2013 he out ome o thi mee ng i rovide a ear indi a on o here the e nego a on are heading ven though SA i not a member o the W O a u h the aim i to deve o ommon

o i on in the area overed under the SA Agreement e i a market a e he te hni a ork re uired i et to on nue

a h et o nego a on re ent it o n uni ue ha enge Some i ue that ari e are the a e o the nego a on a e a im emen ng on uded agreement and eeding u the di erent ra a on ro e e A urther ha enge remain the e e ve ommuni a on ith e onomi o erator and other a e ted takeho der to make them a are o the bene t that the e agreement

o er and to u under tand the ondi on a a hed

t i ex e ted that the SA oun i o Mini ter i ado t the Annex on the SA ommon Nego a ng Me hani m during the oming nan ia ear hi Annex a or the deve o ment o a ommon SA rade Po i hi h re uire a on erted e ort b a SA

Member State to deve o na ona o i on and on o idate the e into a regiona o i on n thi regard g oba deve o ment i be an in uen ing a tor ith an in rea ed g oba reva en e to re on rote oni t mea ure to u ort dome indu trie and hie d them rom the im a t o g oba e onomi re ure Su h trend ma undermine the bene t o the agreement SA ha entered into

hi e a o making nego a ng o i on taken in on going nego a on more di u t hi ma reate ome ha enge hen deve o ing a rade Po i hi h i a o have to be a ed under the broader umbre a o a ommon SA Regiona ndu tria eve o ment Po i

t i ex e ted that the nego a on ith ndia the uro ean nion and on the ri ar te A i on nue during the next nan ia ear and i in rea e in inten it At the ame me the revie o the agreement ith A i ommen e and oo era on ith the SA i be ex anded Work on a ommon rade Po i i a o ike to ommen e oon

I

I

A

he SA Agreement 2002 re uire the deve o ment o ommon indu tria trategie and o i ie oordina on o agri u ture deve o ment in SA and oo era on on om e on o i ie a and regu a on t urther a or the deve o ment o o i ie and in trument to addre un air trade ra e Another im ortant ob e ve o the SA Agreement i to a i itate the deve o ment o ommon o i ie and trategie ontained in Part ight o the SA Agreement 2002

uring the eriod under revie re ear h a undertaken to in orm the deve o ment and im ementa on o ommon o i ie in the ommon u tom Area a e a to kee u ith regiona and interna ona deve o ment hi h im a t SA and SA Member

State e onomie he ork undertaken in ude the ommi ioning o a re ear h tud to rovide in ut or a detai ed SA ide ndu tria eve o ment Po i urthermore in order to a t tra k regiona indu tria deve o ment ini a ve to undertake ro

border va ue hain and the iden a on o i ot ro e t in the riori ed area o agro ro e ing name ruit and vegetab e eather meat and dair and automo ve manu a turing in uding automo ve om onent ere undertaken and i on nue in

the oming nan ia ear

o im ement the ro border va ue hain ini a ve the Southern A ri an eve o ment ommunit eve o ment inan e Re our e entre SA R and the regiona eve o ment inan e n tu on ere engaged to rovide te hni a u ort Other

re ated a vi e in uded the ormu a on o the i u ion and on e t a er to guide the SA a k eam on ndu tria and eve o ment Po i in deve o ing ro border va ue hain

A art o the regiona ob e ve to romote ondi on o air om e on in the ommon u tom Area Member State re u itated ork on the deve o ment o the om e on Po i and n air rade Pra e Annexe n thi regard the SA a k eam a

on tuted and he d a mee ng to revie the nding and re ommenda on o the tud on n air rade Pra e in SA urther na ona on u ta on are to be undertaken b Member State and the out ome o the e on u ta on i in orm the

deve o ment o the om e on Po i and n air rade Pra e Annexe Work in thi area i earheaded b the SA a k eam on n air rade Pra e and om e on Po i and i on nue in the oming nan ia ear

on erning the agri u tura o i re ated a vi e the revie o the merit o the agri u tura rebate uota that the BLNS1 ountrie have to im ement in order to im ort dut ree ta e ood ommodi e u h a heat bu er hee e and mi k o der a ommi ioned An Ad ho e hni a ommi ee on i ng o the SA e hni a x ert on Agri u ture rade inan e and u tom a there ore on tuted in 2012 and a igned to revie a agri u tura rebate he revie i on nue during the oming nan ia

ear

A art o the ro e to on o idate the South A ri an eve o ment ommunit ree rade Area SA A a revie o the SA Ru e o Origin or rade in ex e and othing Produ t i being undertaken ith the aim to im rove trade among SA Member State n ight o thi the SA Member State have agreed to undertake a tud to in orm their o i on on the ma er he aim o the tud i to om rehen ive a e the o ib e im a t o the hange to the urrent ru e o origin or trade in tex e and othing on SA and SA Member State

A a ne deve o ment area SA Member State in uded rade in Servi e a the ixth 6th riorit area in the urrent Work Programme rade in Servi e a introdu ed a a ne riorit area due to the im ortant ro e it a in the e onomie o SA Member State and in the trade re a on ith third ar e A SA a k eam on rade in Servi e a on tuted to guide the im ementa on o thi ork in uding de ning the eve o ambi on or SA and determining the ne e ar Lega rame ork to be

ut in a e to over ervi e in the broader SA trade agenda

O era ona a a it on traint and the an e a on o e en a takeho der mee ng ontributed to the o rogre ob erved during the ear under revie Previou a o i ork rogramme ere ini ated deve o ed and undertaken b the rade and ndu tr and Agri u tura Liai on ommi ee and hen their mee ng ere u ended o too ere the a vi e in their re e ve

ork rogramme Another a tor i the on going o re over o the g oba e onom hi h on nued to ut re ure on Member State e onomi gro th and avai ab e re our e hi u mate a e ted revenue earned through interna ona and regiona trade On the o i ve ide the e adver e deve o ment re ented an o ortunit or the region to re riori e it agenda and revi it urrent ra e and a roa he to ard regiona and g oba integra on

ondu ng re evant re ear h and ub e uent deve o ing re evant o i ie i vita to en ure tab e and ba an ed e onomi deve o ment ithin the ommon u tom Area uring the next nan ia ear SA i on nue ith the deve o ment o a om rehen ive indu tria deve o ment o i and other re evant re ear h tudie aimed at im roving the SA e onomie

A LI D L N AND S A

1 Botswana, Lesotho, Namibia and Swaziland

2

A INS I I NAL D L N

he SA Agreement o 2002 e tab i he evera in tu on o SA to im ement the Agreement o date o the in tu on e tab i hed under Ar e o the Agreement on the oun i o Mini ter the u tom nion ommi ion the Se retariat and the e hni a Liai on ommi ee have been o era ona in e 200 uring the ear under revie ub tan a rogre a a ained in

in tu ona i ing the Summit o ead o State or overnment Work a o on nued on the o era ona i a on o the ribuna and the ari Board

SA She Amendment to the SA Agreement 2002 to in tu ona i e the SA Summit ere ado ted b a de i ion o the oun i o

Mini ter on the 10th A ri 2013 he Amendment ere igned b the ead o State and overnment o the SA Member State on the 12th A ri 2013 in aborone Bot ana

n a ordan e ith Ar e o the Amendment the Summit ha rovide o i a and trategi dire on to SA re eive re ort on the ork o the oun i meet on e a ear and ma ho d extraordinar mee ng at the re ue t o an Member State he Amendment

i enter into or e thirt 30 da o o ing ra a on b a Member State t i envi aged that the Ru e o Pro edure o the Summit i be tab ed or ado on at the next Mee ng o the ead o State and overnment

he th Mee ng o the ead o State and overnment took a e on the 12th o A ri 2013 in aborone Bot ana he Mee ng a haired b i x e en Lieutenant enera Seret e hama an hama Pre ident o the Re ub i o Bot ana and a a ended

b i Ma e t ing M a o the ingdom o S a i and i x e en i ke un e L Pohamba Pre ident o the Re ub i o Namibia i x e en a ob uma Pre ident o the Re ub i o South A ri a and the Right onourab e r Mot oahae homa

habane Prime Mini ter o the ingdom o Le otho

he Mee ng o the ead o State and overnment re eived rogre on the im ementa on o the ive Priorit Area o the SA Work Programme and endor ed t o addi ona riorit area o S and S S

urther detai on the im ementa on o the SA Work Programme are re e ted in the di erent ha ter o thi ub i a on

SAhe SA oun i o Mini ter he d three Ordinar Mee ng during the 2012 2013 inan ia ear he oun i on idered variou

i ue re ented b the ommi ion and rovided overa o i dire on on the im ementa on o the SA Agreement and the SA Work Programme

he Mee ng o the oun i ere he d a o o 21 Se tember 2012 in u ini S a i and e ember 2012 in S ako mund Namibia and 10 A ri 2013 in aborone Bot ana the a er being the th uarter Mee ng that norma take a e in Mar h n a ordan e ith the e tab i hed ro edure o the rota on o the hairing o Mee ng o in tu on o SA the Re ub i o

Bot ana a umed the hairman hi on the 15 u 2012 o o ing the end o the ingdom o S a i and term on the 1 u 2012

n order to rovide im etu to the im ementa on o the SA Work Programme the oun i onvened a 2nd Mini teria Strategi Retreat on 30 31 Augu t 2012 in Windhoek Namibia he di u ion ere he d under the o o ing theme

SA SASA etai on the out ome o the 2nd Mini teria Strategi Retreat are re e ted

in a di erent e on o thi ub i a on

n a ordan e ith Ar e o the SA Agreement 2002 the u tom nion ommi ion met on a uarter ba i to di harge it mandate he ommi ion i mandated to im ement the SA Agreement and the de i ion o the oun i a e a to over ee the management o the ommon Revenue Poo

uring the eriod under revie the ommi ion met on the 11 u 2012 in Windhoek Namibia thi being the 1 t uarter Mee ng that norma take a e in une 18 20 Se tember 2012 in u ini S a i and 6 e ember 2012 in S ako mund Namibia and A ri 2013 in aborone Bot ana the a er being the th uarter Mee ng that norma take a e in Mar h At the e Mee ng the ommi ion on idered re ort on the te hni a ork undertaken b the variou a k eam and e hni a

ommi ee and made the ne e ar re ommenda on to the oun i or de i ion he detai on the i ue on idered b the ommi ion are re e ted in the di erent ha ter o thi ub i a on

he ommi ion a o onvened e ia Mee ng a o o 18 Ma 2012 in ohanne burg South A ri a to re are or the 2nd Mini teria Strategi Retreat 22 2 anuar 2013 in a Moha e Le otho to o era ona i e the Out ome o the 2nd Mini teria Retreat and on 11 Mar h 2013 in ohanne burg South A ri a to re are or the th Mee ng o the ead o State and overnment

SA art o it re on ibi it o the da to da admini tra on o SA the Se retariat oordinated and monitored the im ementa on o the de i ion o the oun i and the ommi ion n a ordan e ith Ar e 10 o the SA Agreement the Se retariat rovided te hni a and admini tra ve u ort to a i itate the ork o a the in tu on o SA he Se retariat urther oordinated variou te hni a tudie a re e ted in other ha ter o thi ub i a on

27

28

A INS I I NAL D L N N IN D

Ar e o the SA Agreement e tab i he a ari Board a one o the in tu on o SA n term o Ar e 11 the ari Board i be an inde endent in tu on made u o u me or art me member or both he SA ari Board i be re on ib e or

making re ommenda on to the SA oun i o Mini ter on the eve o u tom tari n making it re ommenda on the ari Board i revie the u tom tari inve ga on ini ated b Member State Na ona Bodie

n the eriod under revie Bot ana and S a i and rodu ed dra egi a on that ou d give e e t to Na ona Bodie A SA Mini teria Strategi Retreat that a he d on 30 31 Augu t 2012 in Windhoek Namibia rovided an o ortunit or the SA Mini ter to re e t on the rogre that had been made in e tab i hing the ari Board and the Na ona Bodie he Mini ter agreed that an ex ert a e ment hou d be undertaken to examine the urrent ar hite ture and modu o erandi or e tab i hing and o era ona i ing Member State Na ona Bodie and the SA ari Board he oun i o Mini ter at their mee ng o 10 A ri 2013 in aborone Bot ana dire ted that the a e ment hou d ro eed but that it hou d take into a ount the rogre a read made and the exi ng ega rame ork

Ar e o the SA Agreement e tab i he an ad ho ribuna a one o the in tu on o SA n term o Ar e 13 the ribuna i e e di ute on the inter reta on or a i a on o the SA Agreement uring the eriod under revie ork on the

deve o ment o the Annex to o era ona i e the SA ribuna on nued n ar u ar the di u ion o u ed on the determina on o the uri di on o the ribuna in the ontext o the SA Agreement t i envi aged that on e the i ue o uri di on ha been on uded the Annex on the SA ribuna i be na i ed and re ented or on idera on b the oun i

Ln a ordan e ith Ar e 12 o the SA Agreement the e hni a Liai on ommi ee L are mandated to a i t and advi e the ommi ion in it ork o o ing the de i ion to re tru ture the o era on o the L in order to tream ine their o era on ork

on revie ing the erm o Re eren e o the L on nued hi entai ed on idera on o ro o a on merging and ra ona i ing the un on o ome o the L ith a vie to tream ining the SA in tu ona tru ture a e a ari ing re or ng ine bet een

the L and a k eam e tab i hed b the oun i uring the eriod under revie the a k eam on nued to meet to undertake o u ed te hni a ork a re orted in other ha ter o thi ub i a on

D

A A I NAL N I N N

he inan ia Management Sub dire torate o u e on u ing it rimar ro e a a trategi artner and advi or on nan ia management and

nan ia re or ng i ue o the Se retariat

S e i a the inan ia Management Sub dire torate i re on ib e or the o o ing

Produ on o nan ia an u h a budget a ita an a h o ore a t and nan ia re ort

rea ur management in uding inve tment o und Providing nan ia in orma on to a re evant takeho der to enhan e

de i ion making ithin the Se retariat om ian e ith a the a i ab e a oun ng tandard and

regu ator re uirement Sa eguarding o xed a et inan ia ri k management and or orate governan e and Pa ro ontro

he nan ia re or ng rame ork that ha been a ied in the re ara on o the Se retariat annua nan ia tatement i nterna ona inan ia Re or ng Standard RS in a ordan e ith the rovi ion o the 2002 SA Agreement hi tandard ha en ured on i tent a ignment ith

S

interna ona be t ra e on nan ia re or ng e e ia ith re e t to ub i hed annua nan ia tatement

he annua externa audit o the Se retariat are arried out b the Auditorenera o the Member State on a three ear rota ona ba i he Auditorenera o Namibia i the urrent externa auditor or the Se retariat

o date the Se retariat ha a hieved un ua i ed audit re ort in e it in e on and trive to on nuou a hieve thi mi e tone

he xed a et regi ter ha been integrated into the nan ia a oun ng tem SAP Bu ine One hi ha rovided the bene t o rea me xed

a et management

n the area o ro e automa on the Se retariat i urrent deve o ing e e troni ork o or the nan ia ro e e a art o the e troni

o ument and Re ord Management S tem RMS hi un ona it i a i t in a i ita ng the re evant a rova ro e e a e a roviding

a uni orm tandard on nan ia do ument and ro e e

n the 2013 201 nan ia ear the o u i be on im roving the budge ng tem and ro e e a e a revie ing the banking ervi e

29

30

Ihe im ortan e o the Re ord and n orma on Management O e tem rom Ar e 10 o the 2002 SA Agreement hi h

de are the Se retariat a the re o itor o a SA re ord n thi ro e the ub dire torate manage and re erve the re ord o SA in tu on u h a the oun i ommi ion ari Board e hni a Liai on ommi ee and Se retariat

uring 2012 13 the Se retariat tarted ith the im ementa on o an e e troni do ument and re ord management tem A vi e om eted in ude ana i o do ument and re ord o in the organi a on and de ning o u on or the tem he

tem i anned to be un ona b the end o 2013

he uman Re our e un on a a ke ro e in a i ng the Se retariat to a hieve it goa he uman Re our e unit a i itate the im ementa on o the ondi on o Servi e o the SA Se retariat

n ine ith the oun i de i ion to trengthen the Se retariat a a it the Se retariat ha reated an addi ona o i on o e ut xe u ve Se retar in it organi a ona tru ture to a i t the exi ng xe u ve Se retar in the eader hi o the Se retariat he o i on i in the ro e o being ed Other o i on hi h have been ed are that o uman Re our e Manager he ing o

the e o i on ha trengthened the Se retariat a a it to de iver in it or orate Servi e ob e ve

he Se retariat re ie on e e ve im ementa on o it er orman e management tem to en ure that the target et are met in order or the organi a on to meet it mandate hi tem a o ha a re ard menu to mo vate and retain ex e ent er ormer

One o the ke riori e in the Se retariat i a a it bui ding he need or training rogramme i in ormed b a ki a e ment need ana i and the er orman e management tem here i a budgetar rovi ion or the on nuou deve o ment o ki in order to e ui ta ith the ne e ar too or ada ng to modern ha enge in the ork a e

uring the ear under revie a tota o 18 em o ee ent through variou hort term training rogramme in management eader hi and te hni a rogramme hi tran ate to 5 o the Se retariat ta om ement What mu t be done in the oming ear i to dra u a training an and o i to make ta deve o ment more tru tured

he uman Re our e unit i urrent in the ro e o automa ng it re ord through the a i a on o the P modu e he om e on o u da ng re ord into the P tem i make the management o uman Re our e ro e e more e e ve

I Ihe onvergen e o oud ervi e o ia media enter ri e mobi it Big ata and Next enera on Net ork that hara teri e toda

bu ine environment rovide d nami o ortuni e to onne t em o ee bu ine artner and u tomer n thi regard the Se retariat on nue to trive to reate the right mix o oud ho ted and on remi e te hno ogie that i trengthen it a a it to e e ve de iver on it mandate

he 2012 13 a hara teri ed b our ini a ve name irtua i a on Re ord Management Po i Revie ommuni a on and the SA Web ite

he Se retariat a i a on ervi e and torage ere u e u virtua i ed he on o ida on ha igni ant redu ed a i a on do n me and eeded u the de o ment o ne ervi e t ha a o mo t im ortant aid the ground ork that a o the Se retariat to on ider migra ng urrent ervi e to a oud or ho ted mode in order to redu e o ner hi o t and im rove ervi e de iver

he ana i ha e o the e troni o ument and Re ord Management S tem u minated ith the a rova o a b ue rint do ument t i envi aged that deve o ment and de o ment o thi tem i be om eted during the urrent nan ia ear he ne tem i among other thing im rove the rote on o organi a ona memor through e ient torage and ata oguing o re ord at a ing e our e

A om rehen ive revie o the Se retariat Po i ie a undertaken to en ure a ignment ith indu tr be t ra e re ogni e emerging trend and addre Audit ga he revi ed o i rovide Management m o ee and ith guide ine that hou d

rovide be er rote on or the Se retariat n orma on A et

he Se retariat u graded it ommuni a on in ra tru ture to im rove it re on ivene to takeho der When u de o ed the ne tem i integrate voi e video and data enab ing em o ee to intera t and o aborate ith takeho der in rea me at a ra on o the urrent o t hi uni ed ommuni a on trateg i be u rea i ed hen the Se retariat re o ate to it ne head uarter bui ding

A A I NAL N I N N N IN D

31

hrough intervie ith variou takeho der grou the Se retariat de ned a vi ion ob e ve metri me age ontent and branding or it eb ite he aun h o a rede igned eb ite in the oming nan ia ear hou d rovide takeho der ith a vibrant and intera ve in orma on re our e that a i itate the a hievement o the SA Work Programme

uring the next nan ia ear the Sub dire torate i eek to introdu e ini a ve that en ourage the u e o e e troni ork o in o era on to tream ine ro e e ave me and redu e a er trai n addi on the demand o the SA Work Programme di tate that em o ee are in rea ing mobi e and there ore trategie need to be devi ed to en ure re iab e me and e ure a e to in orma on and re our e ina the i a ter Re over trateg i be revie ed ith the aim o migra ng to a ho ted or

oud a orm

ASACU

At the A mee ng he d on 0 u 2012 the A a roved the re ommenda on o the e hni a va ua on eam and a k eam and a arded the tender or the on tru on o the SA ead uarter Bui ding to Ne ra nve tment Pt Ltd hi i a ro o ed 5 tore in uding ba ement or arking bui ding to a ommodate the SA Se retariat

he Se retariat then on uded a ontra t ith Ne ra nve tment Pt Ltd hi h a o ia igned on 22nd A ri 2012 and the on tru on ite a handed over to the ontra tor on 06 Se tember 2012 hi h i the o ia tar ng date o the ro e t he ontra t eriod or the ro e t i ourteen month 1 ith the om e on date et or 6 November 2013

B the end o Mar h 2013 a tua rogre made on the ro e t a at a 35 om e on rate a er the ro e t rogramme and the ro e t a 2 eek ahead o hedu e

Some o the ha enge en ountered during the anning and re ara on or the ommen ement o the ro e t a the re oning o the R o ever the Mini tr o inan e Namibia a i ted the Se retariat in the re oning ro e to en ure that it a na i ed on me he a i a on or re oning a made to the it o Windhoek through a rivate o n P anner Barrie Wat on o n and Regiona P anner ho over a the me om e on o the ro e he SA Se retariat a a o granted exem on rom the

a ment o be erment ee a e a the environmenta earan e er ate b the Mini tr o nvironment and ouri m Namibia hi h i a re uirement or the a rova o the bui ding an at the Muni i a it

No ma or rob em ere re orted to date that ou d de a the om e on o the ro e t he ate t om e on date remain 6 November 2013

D

32

33

D

C

AANN 1

3 SACU S

ANN 2

0 S I S

3

ANN 1SACU S C U

1 ID

1 1 our ear o o ing the e onomi ri i the g oba e onomi re over ha been uneven and un ertain A ording to the M Wor d onomi Out ook hi h

a re ea ed in O tober 2013 the or d out ut gre b 3 2 er ent in 2012 rom 3 er ent gro th rea i ed in 2011 the o e t gro th in e e onomi ri i he

o do n in the g oba out ut a main driven b a re e ion in the uro Area uggi h gro th in other advan ed e onomie a e a o gro th in the emerging market and deve o ing e onomie he g oba e onomi o do n o urred de ite o i interven on rom the advan ed and emerging e onomie o ever the

g oba out ut i ex e ted to moderate in 2013 and gro b 2 er ent

1 2 n 2012 gro th in the advan ed e onomie de e erated b 1 5 er ent rom 1 er ent rea i ed in 2011 a though the S and a an ho ed ign o e onomi re over he

S gre b 2 8 rom 1 8 er ent re orded in 2011 main boo ted b the revived bu ine on den e a indi ated b the re over o the rea e tate e tor in rea ed on um on and u or ve a and monetar o i ie a an a o re overed rom the e e t o t umani and gre

b 2 0 er ent rom a ontra on o 0 6 er ent re orded in 2011 boo ted b among other thing bo d e onomi trateg that eek to re tore the a ane e e onom o ever out ut in the uro Area ontra ted b 0 6 er ent

driven b re e ion in ta and S ain hi t erman the arge t e onom in the uro Area regi tered a ubdued but o i ve gro th ran e regi tered no gro th t i ex e ted

that the uro Area i remain in re e ion in 2013 o i ta and S ain but the uro Area i ex e ted to ho ign

o re over in 201 and gro b 1 0 er ent

1 3 he e onomi a vit in emerging e onomie tumb ed and gre b er ent rom 6 2 er ent re orded in 2011 e e ia in Bra i Ru ia ndia and hina A ording to the M eak out ut in the emerging market i re e ve o

i a a tor a e a the de rea e in a oten a out ut gro th but at di ering degree Another ontribu ng a tor to the e onomi o do n in the emerging e onomie i the tran mi ion e e t o the monetar o i tan e in the S he e onomi o do n in hina a a ributed to tru tura hange aimed at hanging ex ort and inve tment oriented gro th to on um on oriented gro th n ndia eak externa demand a e a ubdued inve tment re u ted in o e onomi gro th here remain ign o overhea ng in ome emerging e onomie

a indi ated b ra id redit gro th and ri ing a et ri e t i ex e ted that gro th in the emerging market i be o at 5 er ent in 2013 but i ex e ted to rebound in

201 and gro b 5 1 er ent

1 n the on nent Sub Saharan A ri a SSA a hieved re a ve high gro th rate in 2012 and gre b er ent a though i a o gro th om ared to 5 5 er ent re orded in 2011 he trong gro th in SSA i indi a ve o a trong demand in the region o ever i over rom the g oba o do n vo a it in the a ita o

a e a de ining ommodit ri e have a bearing on a o er gro th he M tate that gro th a trong among the o in ome and ragi e tate ex e t or ountrie adver e a e ted b ivi on i t n the

SA region Ango a regi tered an e onomi gro th o 8 er ent bene ng rom the re over o oi rodu on

hi t Mo ambi ue and ambia gre b 5 er ent and 3 er ent re e ve he robu t gro th in Mo ambi ue a main driven b arger than ex e ted oa rodu on

redit ex an ion to the rivate e tor and in ra tru tura inve tment rogramme hi t ambia gro th a driven b ex an ion in agri u ture on tru on manu a turing and nan e indu trie o ever in South A ri a the M revi ed do n the e onomi gro th ro e on or 2013 to 2 0 er ent i ng ten e abour re a on anaemi rivate inve tment and eaker on um on gro th t i ex e ted that e onomi gro th in SSA i in rea e b 5 er ent in 2013 and 6 er ent in 201

1 5 n re on e to the uneven and e onomi un ertain e hi h re u ted in a eak g oba out ut SA e onomie

ex erien ed uggi h gro th in 2012 he re e ion in the uro Area hi h i the main trading artner o the SA

Member State a e a the o gro th in the emerging e onomie e e ia hina and ndia urther ontributed to the uggi h e onomi er orman e he mining e tor in Bot ana Namibia and South A ri a exhibited

a uggi h gro th hi t manu a turing e tor in Le otho and S a i and a o gre o he othing and tex e indu tr in Le otho a main driven b the un ertaint in the rene a o A OA trade re eren e hi t in S a i and the manu a turing a a e ted b the eak on um on and inve tment demand a a re u t o the a ri i

1 6 our Member State o SA are a o member o the ommon Monetar Area MA and to ome extent ur ue imi ar monetar o i he de re ia on o the

rand in rea ing oi ri e and externa u ide ri k exerted in a onar re ure in the MA re u ng in in a on rate

hi h ex eeded 6 er ent ex e t or South A ri a here

3

in a on rea hed 5 er ent Bot ana in a on rea hed 5 er ent e ite the ri k in the in a on out ook

intere t rate have been genera ke t o to mu ate the e onomi gro th but are o e monitored b the Monetar Po i ommi ee a ro the region

1 he eak e onomi er orman e in 2012 a o re uired SA Member State to ur ue ex an ionar a o i ie to u ort e onomi gro th he a o i on in a SA Member State or ened in 2010 11 and 2011 12 and the re u tant in rea e in ex enditure have ed to arge a de it hi h ne e itated Member State to embark on

a on o ida on n re ogni on o o ib e in rea e in nan ing o the budget de it Member State on nue

to ur ue rudent debt and re erve management trateg he a out ook a e a the externa o i on i

ex e ted to im rove in the medium term

1 8 Not ith tanding the o i ve e onomi out ook ha enge on ron ng the SA e onomie remain

Mo t im ortant i the tran a on o e onomi gro th to deve o menta and in u ive gro th Another ha enge i abi it to im rove and u tain dome revenue e e ia among the BLNS Member State So io e onomi ha enge are imi ar a ro the region ith di ering

degree and thi in ude among other thing ri ing overt and unem o ment eve e e ia among the outh and Aid andemi o ever a Member State have re onded to the ight o ri ing unem o ment b embarking on ub i and rivate inve tment rogramme a e a romo on o rivate e tor deve o ment and ma and medium enter ri e to u ort e onomi gro th

and reate ob

22 12.1.1 uring 2012 Na ona A ount in Bot ana ere reba ed

rom 2000 to 2011 and a a re u t the eve o P it gro th rate a e a e tora ontribu on hanged o o ing a ontra on o 8 er ent re orded in 200 the

Bot ana e onom rebounded and gre b 8 6 er ent in 2010 therea er de ined b 6 1 er ent in 2011 and urther de ined b 2 er ent in 2012 a ho n in igure 1 he re ent g oba o do n hi h a om ounded b the un ertaint about the gro th ro e t in the uro Area

hi h i one o Bot ana ma or trading artner art ex ain Bot ana e onomi o do n he de e era on in e onomi gro th a main due to the mining e tor

hi h regi tered a nega ve gro th o 0 er ent in 2012 om ared to a ontra on o 2 3 er ent re orded in 2011

2 12 gure is provisionalSta s cs Botswana, une 2 1

1 D

10

8

6

4

2

0

2

4

6

8 R

ea

P ro

th

2011 2012*

200

2010

8

86

61

42

2.1.2 e ite the ubdued er orman e ob erved in 2011 and 2012 the non mining e tor regi tered a o i ve gro th rate o 6 2 er ent in 2012 om ared to

8 er ent re orded in 2011 ro th in non mining on nue to be boo ted b on tru on hi h gre b

14 4 er ent tran ort and nan e ervi e hi h gre b 5 er ent and 11 0 er ent re e ve a though ater

and e e tri it ontra ted b 3 er ent on tru on out ut a enhan ed b in ra tru ture deve o ment

hi h in ude on tru on o dam and road and the Moru u e B o er ta on

2 22.2.1 he overa unem o ment rate i re orded a

1 8 er ent hi h i mo t notab e among t the outh he Bot ana ore We are ndi ator Povert Surve o

200 10 ho ed im rovement in overt redu on and indi ated that number o Bat ana ho a under the

overt ine have de ined rom 30 6 er ent re orded in 2002 03 to 20 er ent n diver i ing the e onom the overnment ha arge reinve ted the ro eed rom diamond a e into other e tor u h a touri m

manu a turing and agri u ture o ever the overnment re ogni e that rodu vit an in minera i imited to ertain ear ithin the rodu on e and there ore

intend to in rea e rodu vit and u ort nonmining e tor he overnment ha e tab i hed a ide range o rogramme and ini a ve to addre i ue o unem o ment ar u ar among the outh Some

rogramme are aimed e i a to iden and bridge the ki ga

3

2 32. .1 Bot ana ur ue a medium term in a on ob e ve

range o 3 6 er ent he head ine in a on o o ed a ig ag trend in e 2006 and in a the ear ho n in gure 2 in a on ha been out ide the range

ead ine in a on dro ed to 8 6 er ent in 200 and urther dro ed to 6 er ent in 2010 be ore ri ing b

1 6 er entage oint and rea hed 8 6 er ent in 2011 n 2012 in a on trended do n ard and rea hed

5 er ent main due to o dome demand o ever the u ard in a onar re ure rea i ed in 2011 a a a re u t o an in rea e in g oba ood and oi ri e hi h

ere triggered b the o i a in tabi it in the Midd e a t and North A ri a during the e ond ha o the ear n

the r t ha o 2013 g oba in a onar re ure ea ed due to the a ing ommodit ri e and ubdued demand and the admini tered ri e in rea ed margina b 0 24 er entage oint

2 I

14

12

10

8

6

4

2

0

n a on rate

2010 2011 20122006 2008 200200

11 6

1

12 6

8 6

6

8 5

ha

nge 5

2 3 2 e ite a de ine in in a on rea i ed in 2010 and 2012 Bot ana in a on rate ha been o o ing an u ard tra e tor and a ing out ide the u er band Bot ana in a on i arge eighted on ood and non a oho i beverage tran ort and hou ing ater and e e tri it

2 I2.4.1 Monetar o i ea ed amid t o and tab e in a on

he Bank o Bot ana de rea ed the bank rate rom 10 0 er ent regi tered in e ember 200 to 5 er ent in

e ember 2010 hi h a maintained throughout 2012 o ever the bank rate a ut b 100 er entage oint

to 8 5 er ent in the r t ha o 2013 to u ort e onomi gro th A ording the ommer ia bank a o redu ed

rime ending rate rom 11 0 er ent in e ember 2012 to 10 0 er ent in une 2013

22.5.1 he re iminar data ho that the overa ba an e o

a ment re orded a de it o P880 mi ion in 2012 rom a ur u o P3 4 bi ion rea i ed in 2011 he

deteriora on in the ba an e o a ment i a ributed to an in rea e in im ort hi t ex ort de ined A ording to the Bank o Bot ana the trade de it idened a a re u t o the tran er o aggrega on o a vi e o

e Beer iamond rading om an rom the nited ingdom to Bot ana hi ro e ed to the im ort o

diamond rom other ountrie to Bot ana or urther ro e ing be ore being re ex orted

2.5.2 he urrent a ount re orded a de it o P5 3 bi ion in 2012 om ared to a ma de it o R251 mi ion re orded in 2011 he deteriora on in the urrent a ount i main due to the idening o the mer handi e trade

hi h tota ed P13 6 bi ion om ared to the trade de it o P5 0 bi ion re orded in 2011 he mer handi e trade de it i a ributed to the urge in im ort in ar u ar diamond im ort hi h in rea ed b 180 er ent t i e mated that tota ex ort in rea ed b 4 1 er ent in 2012 om ared to tota im ort hi h in rea ed b 21 3 er ent o ever diamond ex ort e b 15 1 er ent due to ommodit a ing ri e a e a o er than ex e ted out ut vo ume

1

2008 2009 2010* 2011** 2012***

Overa ba an e 452 4 563 6 511 3 430 880

urrent a ount 26 412 5 054 251 5 2 1

inan ia a ount 4 14 8 133 2 66 5 502 2 288

a ita a ount 0 0 23 3 0

Source: Bank of Botswana* Revised** Provisional

2.5. m ort a o in rea ed to P61 bi ion om ared to P4 bi ion rea i ed in 2011 de ite a de ine in im ort re ated to on tru on o on tru on o Moru u e B

o er ta on and other ma or in ra tru tura ro e t a ome o the e ro e t ere inding do n A de ine in the im ort o a ita good a o et b an in rea e in im ort o diamond and ue O the tota im ort P42 1 bi ion ere our ed SA region o hi h

1 er ent o u h im ort ere our ed rom South A ri a ota ex ort amounted to P45 6 bi ion o hi h R6 8 bi ion a ex orted ithin the region in ar u ar P5 bi ion orth o good a ex orted to South A ri a O the tota ex ort P38 bi ion a ex orted to out ide

ANN 1 C N INU D

SACU S C U

37

the region in ar u ar P26 21 bi ion orth o good a ex orted to uro e

2.5.4 Net urrent tran er regi tered a ur u o P21 bi ion rom P 5 bi ion re orded in 2011 main due to SA re ei t he a ita a ount hi h on re ord tran er o a et b migrant dro ed rom P10 mi ion to P3 mi ion in 2011 and urther dro ed to in igni ant amount inan ia a ount hi h i made u variou inve tment or o io re orded a net in o o P2 3 bi ion in 2012 om ared to a net in o o P5 5 bi ion regi tered in 2011 A ording to the Bank o Bot ana a high ur u in 2011 a a ributed to the oan dra n do n b the overnment a e a the Bot ana Po er

or ora on

2 5 5 At the end o 2012 the oreign ex hange re erve amounted to P5 3 bi ion e uiva ent to 14 month o im ort over om ared to P60 3 bi ion re orded in 2011

22.6.1 he broad mone u M2 gre b 0 er ent in

e ember 2012 om ared to 4 4 er ent gro th rea i ed in 2011 a a re u t o redit gro th and a de rea e in government de o it ear on ear to e ember 2012 ommer ia bank redit gre b 23 6 er ent a margina

de ine om ared to the redit gro th o 26 4 er ent regi tered in e ember 2011 A o do n in redit gro th

a main due to the eak gro th in redit extended to bu ine e tor a though redit extended to the hou eho d in rea ed b 28 5 er ent uring 2012 Standard Poor and Mood nve tor Servi e re ea ed the overeign redit ra ng or Bot ana Standard Poor maintained oreign urren ra ng at A or ong term and A 2 or hort term and rated the out ook to be tab e Mood

a o retained A2 ra ng or oreign and dome bond and out ook a maintained a tab e

2 72.7.1 n 2010 11 tota revenue and grant amounted to

P31 1 bi ion hi t tota ex enditure and net ending amounted to P38 42 bi ion re u ng in a de it o

0 er ent o P a ho n in ab e 2 he re iminar e mate ho that in 201 12 tota revenue in uding grant in rea ed b 20 6 er ent rom the reviou

nan ia ear and amounted to P38 5 bi ion he gro th in revenue a driven b a urge in tax revenue main minera tax and the u tom oo ota ex enditure and net ending amounted to P38 bi ion re u ng in the overa a de it o P181 4 mi ion hi h i e uiva ent to 0 2 er ent o P

2

2010/11 2011/12 2012/13* 2013/1 **

31 91 38 1 9

Minera 12 06 15 83 12 04 13 25

Non minera 1 85 22 66 2 8 32 1

of which SACU 6 21 8 42 14 12 13 68

o SA to tota revenue 0 1 0 22 0 34 0 54

o SA revenue to P 0 06 0 08 0 13 0 11

38 2 38 7 1 08 3 0

Re urrent 2 0 28 84 31 32 1

eve o ment 11 3 6 36 10 1

Net ending 0 04 0 12 0 05 0 05

D 7 0 0 2 1 0 2 0

Source: Ministr of Finance and Development Planning and 2 1 Na onal Budget* Revised es mate** s mate

2.7.2 Bot ana ha been re ording budget de it rom 200 10 to 2011 12 o ever a mode t ur u o 1 0 er ent o P i ex e ted in 2012 13 he re orded budget de it are exa erbated b the un redi tab e revenue enve o e hi h mo t re ie on re ei t rom minera in ar u ar diamond and SA tran er t i ex e ted the budget ur u i again be rea i ed

in 2013 14

2 82.8.1 he tatutor debt ei ing i a ed at 40 er ent o

P di tributed even bet een dome and externa debt he ate t gure indi ate that the tota debt to

P ra o ro e rom 25 2 er ent re orded in 2010 11 to 25 3 er ent in 2011 12 due to among other thing u dra do n o A ri an eve o ment Bank oan A ording to the Bank o Bot ana tota debt amounted to P28 5 bi ion o hi h P20 0 bi ion a externa debt e uiva ent to 1 er ent o P hi t P8 5 bi ion

a a ounted or a dome debt e uiva ent to 5 er ent o P t i ex e ted that tota debt to P

ra o or 2012 13 i de ine to 22 er ent A though tota debt to P ra o i ar be o the tatutor a the externa debt or o io i a mo t rea hing the 20 er ent ei ing and the government intend to in rea e the dome borro ing to nan e the a de it and ub e uent boo t the dome a ita market b i uing

government bond

38

2 92.9.1 o o ing a rebound in e onomi out ut ex erien ed

in 2010 the e onomi gro th i modera ng and in rea term the e onom gre b 4 2 er ent in 2012 and i ex e ted to gro b 5 5 er ent in 2013 main u orted b the non mining e tor he e onomi o do n i a a re u t o e onomi un ertain e om ounded b the re e ion in the uro Area a e a a eak gro th in the emerging e onomie uro e i Bot ana arge t trading artner ar u ar ith the a e o diamond and the e onomi o do n in the uro one ha

ro ound im i a on on the e onomi er orman e he o do n in e onomi gro th a main driven b

the mining e tor hi h regi tered a nega ve gro th in 2012 and i urther ore a ted to ontra t b 4 er ent in 2013 Non mining e tor are ex e ted to on nue u or ng gro th

2.9.2 he government a hieved it ommitment to ba an e the budget and it i ex e ted that a ur u e i be rea i ed in 2012 13 and 2013 14 main driven b a on o ida on he government i urther ommi ed to

im roving tax o e on and e ort are under a to deve o a Medium erm i a rame ork and trengthen the ore a ng o overnment budget

2.9. Not ith tanding the o i ve out ook there remain ome o ia ha enge in uding high overt eve

Aid andemi though the reva en e i de ining and unem o ment e e ia among the outh n re on e to the e ha enge the overnment ha embarked on tru tura re orm in uding e tab i hment o variou

hub to drive the diver i a on ini a ve targeted und or outh ob rea on o ortuni e e tab i hment o

onomi iver i a on rive to u ort diver i a on and romo on o non minera ex ort and u e o Pub i Private Partner hi a a ro urement method to de iver

ub i in ra tru ture

3 L3 1 1

.1.1 o o ing a gro th o er ent re orded in 2010 the Le otho e onom gre uggi h in 2011 de i ng a rea gro th rate o 3 er ent and i ex e ted to gro moderate b 4 er ent in 2012 Manu a turing remain the main ontributor to P and ontributed 12 0 er ent and 11 1 er ent in 2010 and 2012 re e ve Manu a turing gre b 14 1 er ent in 2010 but ontra ted b 5 er ent in 2011 ex aining o gro th regi tered in 2011 othing and tex e remain the ma or ontributor to the manu a turing e tor a though it ontribu on i o o ing a do n ard tra e tor rom 15 er ent rea i ed in 2002 to 6 3 er ent regi tered in 2011 othing and tex e gre b 15 er ent in 2010 but ontra ted b er ent in 2011 he un ertain e

regarding the rene a o the hird ountr abri Provi ion in the S hi h i the de na on or Le otho ex ort bene ng rom trade re eren e under A OA ed to a de ine in out ut

.1.2 on tru on de ined to 6 er ent in 2011 rom a eak gro th o 28 8 er ent rea i ed in 2008 t i ex e ted that gro th in the on tru on indu tr i in rea e in the medium term given the ma or in ra tru tura rogramme that the overnment i embarking on in uding the on going on tru on o the Meto ong dam and the u oming ha e o the Le otho igh and Water Pro e t L WP n the ter ar e tor gro th in the rea e tate

indu tr a uggi h in 2010 de i ng a gro th o 0 8 er ent but in rea ed b 4 3 er ent in 2011 Po t and te e ommuni a on gre b 10 5 er ent hi t nan ia intermedia on gre b 8 er ent both ho ing a de ine in gro th rom 12 0 er ent and 14 3 er ent gro th rea i ed in 2010

3 D8

6

5

4

3

2

1

0

gro

th ra

te

2011 2012*200 2008 200 2010

4

* Provisional es mates, Ministr of FinanceSource: Bureau of Sta s cs, Na onal Accounts of Lesotho 2 2 2 11

5

36

3 40

.1. ro th in the rimar e tor on nue to be main boo ted b a robu t er orman e in the mining and

uarr ing ub e tor hi h i u orted b in rea ing interna ona demand in or diamond n 2011 mining and uarr ing ontributed 2 er ent to P and gre b 1 4 er ent rom a ontra on o 6 3 er ent regi tered in 2010 he gro th a a ributed to the re o ening o

ao and Li hobong mine and Let eng Mine a o doub ed it out ut Agri u ture re orded a nega ve gro th o 5 4 er ent in 2011 hi t ro rodu on in ar u ar ontra ted b 25 4 er ent a a re u t o ood hi h ere o o ed b drought in 2012

3 2.2.1 Manu a turing e e ia in the othing and tex e

indu tr remain the ing e arge t em o er o o ed b genera government n e ember 2011 em o ment in manu a turing ub e tor dro ed to 40 861 rom to

ANN 1 C N INU D

SACU S C U

1. 2 12 Na onal Accounts were not et released at the me of publica on.

39

45 5 5 and 46 386 re orded in e ember 2010 and e ember 200 re e ve he dro in em o ment a main driven b o ure o ome othing and tex e

a torie a e a the a ermath o the indu tria a on that took a e during 2011 Pub i e tor em o ment de ined b 0 1 er ent in 2011 main a ributed to the 0 8 er ent dro in the number o tea her Migrant mine orker em o ed in South A ri a on nue to o o a do n ard trend rom an average o 55 000 orker bet een 2005 200 to 41 555 regi tered in e ember 2010 o ever the on tru on o Meto ong dam a

e a the on tru on o Po iha i dam or ha e o the L WP and other re ated a vi e are ex e ted to in rea e the number o a ua orker

3 3. .1 he overa in a on rate mea ured a a er entage

hange in the on umer Pri e ndex P in rea ed to an average o 6 1 er ent in 2012 rom 5 0 er ent re orded in 2010 a ho n in ra h 4 he in rea e in in a on a main a ributed to exogenou a tor in ar u ar the urge in interna ona oi and ood ri e a e a the

de re ia on o the Rand hi h i egged to Lo

C

11

10

8

6

5

4

3

2

1

0

P

ha

nge

6 18 0

10

5

3 6

5 0

2010 2011 20122006 2008 200200

6 1

. .2 ategorie hi h exerted in a on re ure ere ood and non a oho i beverage hou ing e e tri it ga and other ue n 2013 the in a on rate in anuar rea hed 5 2 er ent and dro ed to 4 6 er ent in une and u but in rea ed to 5 3 er ent in Augu t

3 I.4.1 he intere t rate movement o o the South A ri a

monetar o i tan e and intere t rate in the ommon Monetar Area MA remained o in 2011 and 2012 aimed at mu a ng the e onomie he Le otho 1 da rea ur Bi rate margina in rea ed to 5 3 er ent in e ember 2012 rom 5 28 re orded in 2011 hi t the

average rime ending rate de ined to 2 er ent in 2012 rom 10 50 rea i ed in 2011

3.5.1 he rovi iona gure or 2012 indi ate that the

Le otho externa o i on im roved and re orded an overa ba an e o a ment ur u o M1 22 bi ion e uiva ent to 6 1 er ent o P om ared to a ur u o M58 mi ion re orded in 2011 he t o on e u ve overa ur u e ere re eded b de it e uiva ent to 4 4 er ent o P re orded in 200 and 5 er ent o

P re orded in 2010 he ur u rea i ed in 2012 i main a ributed to the urge in in o both to the nan ia and a ita a ount hi h amounted to M2 06 bi ion and

M1 61 bi ion a ho n in ab e 3 he ob erved er orman e o the nan ia a ount i a ributed to an

in rea e in the dra do n o ommer ia bank oreign a et mo t he d in South A ri a to meet an in rea ing o a demand or rivate e tor redit ub tan a hanne ed to nan ing on tru on o ho ing ma a e a rivate ro ert he a ita a ount er orman e

i main in uen ed b ma or in ra tru tura deve o ment ro e t in uding the on tru on o the Meto ong dam

3

2008 2009 2010 2011 2012*

Overa Ba an e 2 202 643 0 1 211 38 588 5 1 221 23

urrent A ount 2 6 26 524 68 2 801 86 3 352 61 4 23 61

inan ia a ount 1 280 33 165 68 1 160 32 12 64 2 063 11

a ita a ount 148 5 2 48 0 85 1 3 35 1 611 4

Source: Central Bank of Lesotho* Provisional

.5.2 he urrent a ount de it deteriorated to M4 2 bi ion in 2012 rom M3 35 bi ion re orded in 2011 he deteriora on i a ributed to among other a

idened trade de it a a re u t o a urge in im ort re ated to the on tru on a vi e or Meto ong dam and other

rivate ro er e he deteriora on i urther a ributed to a de ine in SA re ei t rea i ed in 2010 11 and 2011 12 in ome and ervi e a ount a o de i ted a

uggi h er orman e

3.6.1 he gro th in mone u a mea ured b M2 in rea ed

b 6 er ent in e ember 2012 om ared to 2 er ent gro th regi tered in e ember 2011 Net oreign A et N A in rea ed b 0 er ent in e ember 2012 hi t

Net ome A et N A in uding net aim on government de ined b 3 2 er ent igna ing bui d u in government de o it he d ith the entra Bank redit to the rivate e tor in rea ed b 40 6 er ent in e ember 2012 rom 26 er ent regi tered in Mar h 2011 a

er ent to P it in rea ed b 18 3 er ent

0

3 7.7.1 he a o i on deteriorated in 2010 11 and 2011 12

and the a de it rea hed 5 0 er ent o P and 10 0 er ent o P re e ve he budget ou urn or 2011 12 ho ed that tota revenue in uding grant

amounted to M 62 bi ion hi t ex enditure tota ed M11 50 bi ion re u ng in a de it o M1 2 bi ion ax revenue ontributed 44 5 er ent to tota revenue hi t SA revenue ontribu on to tota revenue dro ed to 28 6 er ent a ho n in ab e 4 o ever the adver e im a t o the de ine in SA revenue a o et b an in rea e in dome revenue ith in ome tax ontribu ng 24 er ent to tota revenue hi t A ontributed 14 2 er ent n ome tax gro th a main driven b a urge in individua in ome tax and om an tax a o im roved Non tax revenue im roved main due to an in rea e in ro ert in ome and dividend hi t a ita grant a o urged a a re u t o in rea ed di bur ement geared to ard in ra tru tura ro e t ar u ar on tru on o Meto ong dam ota ex enditure

amounted to M11 50 bi ion o hi h re urrent and a ita ex enditure a ounted or 65 er ent and

35 er ent to tota ex enditure re e ve

2010/11* 2011/12* 2012/13** 2012/13**

8 9 9 1 1 13 79 0 1 1 8

ax revenue 3 4 1 4 283 4 4 415 6 5 800 0

Non tax revenue 1 232 3 1 143 2 1 10 3 1 0 6 2

rant 1 200 1 1 436 8 2 18 8 1 631 1

SACU 2 62 2 52 6 5 66 3 6 054 6

SA to tota revenue 30 28 6 43 6 41 3

to P 16 1 14 4 28 0 28 0

9 381 0 11 97 9 13 818 1 1

Re urrent 6 541 2 45 8 421 5 23

a ita 2 83 8 4 038 1 6 3 6 6 4 842 5

821 1 91 18 7 97 0

D 0 10 0 0 9 0

* u urn** Pro ected ou urn*** s mate

.7.2 he ro e ted ou urn or 2012 13 indi ate an im rovement in the a o i on ith the ex e ted margina a de it o 0 er ent main due to the 11 er ent in rea e in SA revenue ontribu on o SA revenue to tota revenue i ex e ted to a ount or 43 8 er ent re re en ng 28 0 er ent o P ota revenue in uding grant i ex e ted to amount to

M13 68 bi ion hi t tota ex enditure i ex e ted to rea h M13 82 bi ion he a de it in 2013 14 i e mated to margina de ine to 0 4 er ent a o boo ted b an

in rea e in SA revenue a e a in rea ed o e on in dome revenue in ar u ar tax revenue

.7. overnment ommitment to maintain a on o ida on ath hi t a the ame me rea ng o i a e or o ia ending and romo on o rivate e tor i teering

the e onom to ma roe onomi tabi it

3 8.8.1 he ub i debt om ri e externa and dome debt n

2011 12 ub i debt to P ra o rea hed 3 8 er ent t i ro e ted that in 2012 13 tota ub i debt i in rea e to 43 1 er ent o P ith externa debt in rea ing to 3 er ent o P hi t dome debt i margina de ine to 5 45 er ent o P he ra o o ub i debt to P remained be o the 60 er ent u tainabi it thre ho d ho ing that ub i debt i u tainab e a a re u t o high on e iona it and ong term nature o the bu k o externa debt

3 9.9.1 he e onomi out ook i o i ve and the e onom

i ex e ted to gro b an average o 3 4 er ent in the medium term o er than the de ired eve o

er ent he g oba e onomi o do n triggered b the re e ion in the uro one and the eak er orman e o the emerging e onomie in uding South A ri a o e a threat to the e onomi out ook he un ertaint on the rene a o the A OA trade re eren e be ond 2015 and the de ine in agri u tura rodu on evere a e ted b drought i adver e im a t the gro th ro e t

o ever the o i ve deve o ment in the on tru on indu tr e i a the on tru on o Meto ong dam a

e a ha e o the Le otho igh and Water Pro e t i ex e ted to u ort e onomi gro th he on nued ex an ion o out ut in the mining e tor a e a the ex an ion o the rivate e tor redit to ard rivate

ro ert deve o ment i a o ex e ted to boo t gro th he M xtended redit a i it on nue to u ort

e onomi rogram aimed at moving on o ida ng ma roe onomi tabi it o i on

.9.2 Not ith tanding the a oremen oned o i ve deve o ment there remain ome o io e onomi ha enge in ar u ar unem o ment among the outh and rai ing eve o overt he overnment ha

undertaken ome re orm to diver i the e onom and romote dome rodu on through rivate e tor

deve o ment and u ort to the ma and medium enter ri e he overnment on nue to maintain ma roe onomi tabi it though a on o ida on

N1

4.1.1 n rea term the e onom gre b 5 0 er ent in 2012 a o do n rom er ent gro th ex erien ed in 2011 a ho n in igure 5 he mining indu tr on nue to be the main ta o the Namibian e onom and in 2012 the indu tr ontributed 11 3 er ent to P rom 8 2 er ent

ANN 1 C N INU D

SACU S C U

1

rea i ed in 2011 e ite the a ing ommodit ri e the indu tr gre b 12 0 er ent in 2012 rom a ontra on o er ent regi tered in 2011 he ter ar e tor on nue to be the ma or ontributor to P ontribu ng

on average 55 2 er ent rom 200 to 2012 and gre b 6 4 er ent in 2012 he manu a turing e tor i the on e tor hi h de i ted a o gro th in 2012 and gre b

3 er ent rom 4 er ent re orded in 2011

D

6

5

4

3

2

1

0

1

2

P ro

th R

ate

2011 2012200 200 20102008

54

34

11

63

5 50

Source: Namibia Sta s cs Agenc , 2 12 Na onal Accounts

4.1.2 he rimar e tor gre b 12 8 er ent rom 1 er ent gro th re orded in 2011 main due to the rebound in the mining and uarr ing indu tr hi h gre b 12 0 er ent

hi t ive to k arming gre b 21 1 er ent rom a ontra on o 1 er ent regi tered in 2010 hing a o

gre b 16 er ent ro th in the e ondar e tor de e erated main due to the ontra on o 2 2 er ent in the h ro e ing indu tr a e a the moderated gro th in the on tru on indu tr hi h gre b 12 5 er ent rom 1 3 er ent rea i ed in 2011 ro th in the ter ar e tor a boo ted b an a e erated out ut in the ho e a e and retai trade a e a ub i admini tra on

24.2.1 Like other member in the MA Namibia in a on

rate o o ed an u ard trend in e 2010 averaging 6 5 er ent in 2012 a ho n in igure 6 he u ard tra e tor a main due to in rea ing ri e o ue ood non a oho i beverage and hou ing Pri e

in rea e in ood and ue ere ue ed b g oba deve o ment a e a the de re ia on o the Namibian

o ar hi h i egged to the Rand he in a on rate rea hed 6 6 er ent in anuar 2013 and o ed to 5 5 er ent in Se tember 2013

C

12

10

8

6

4

2

0

P

na

on ra

te

5 1

6

10 4

8 8

4 5

5 1

2010 2011 20122006 2008 200200

6 5

4 2 2 he im a t o the eaker Namibian o ar de end on the extent eed the dura on o de re ia on a e a the

ha e o the bu ine e o ever the a through rom the de re ia on o the Namibian o ar to in a on ou d be on trained b o er than ex e ted e onomi

gro th

3 I4. .1 he g oba e onomi un ertaint and the e onomi

o do n ne e itated the Bank o Namibia to maintain a ommoda ve monetar o i to mu ate e onomi gro th he re o rate a redu ed to 6 0 er ent in

e ember 2010 and remained un hanged un Augu t 2012 hen it a urther redu ed to 5 5 er ent and in e then it ha remained un hanged A ording the rime ending rate a redu ed rom 5 er ent to 25 er ent

4.4.1 he externa e tor deteriorated and re orded an overa ba an e o N 156 mi ion rom a ur u o N 4 1 bi ion re orded in 2010 a ho n in ab e 5 he deteriora on in the externa o i on a main driven b a eak er orman e in a ita and nan ia a ount

hi h dro ed rom N bi ion re orded in 2011 to N 2 02 bi ion An in rea e in a ita and nan ia in o re orded in 2011 a main due to the i uan e o uro bond hi h ed to the redu on in net ou o rom ong term or o io inve tment

4.4.2 he urrent a ount re orded a de it o N 316 mi ion an im rovement rom a de it o N 2 0 bi ion re orded in 2011 he im rovement in the urrent a ount de it

a main driven b SA re ei t hi h amounted to N 12 1 bi on t i e the amount re eived in 2011 he trade de it a o idened a the va ue o im ort rea hed N 46 4 bi ion hi t ex ort tota ed N 33 1 bi ion Net urrent tran er in rea ed b 63 4 er ent a a re u t o

high SA re ei t

2

N

2008 2009 2010 2011* 2012*

Overa Ba an e 6 213 1 024 3 88 4 086 156

urrent A ount 2 244 6 1 416 1 3 316

a ita and inan ia 1 201 336 86 8 4 2 01

Source: Bank of Namibia 2012 Annual Report

4.4. A igni ant redu on in a ita and nan ia in o a driven b a de rea e in oreign dire t inve tment

hi h dro ed rom N 5 bi ion to N 2 bi ion hi t net or o io ou o tota ed N 3 1 bi ion rom

N 224 mi ion re orded in 2011 Other inve tment ong term re orded a net in o tota ing N 1 mi ion rom N 1 2 bi ion re orded in 2011 main driven b a de ine in dra ing on government oan

4.4.4 he to k o interna ona re erve in rea ed to N 14 bi ion rom N 14 4 bi ion re orded in 2011

he in rea e in re erve i a ributed to among other an in rea e in SA re ei t and i uan e o AR bond on S iven a urge in im ort the im ort over margina de ined rom 3 8 month re orded in 2011 to 3 4 month over

4.5.1 Broad mone u mea ured b M2 de e erated in 2012 and gre b 6 1 er ent om ared to 11 8 er ent rea i ed in 2011 he o gro th in M2 a main driven b the ontra on in N A a a re u t o a redu on in ong term

de o it o ever redit extended to the rivate e tor in rea ed due to trong demand in oan and advan e n ar u ar redit extended to hou eho d in rea ed

b 6 5 er ent rom 5 5 er ent re orded in 2011 hi t redit extended to bu ine e in rea ed b 6 1 er ent om ared ith 1 er ent gro th re orded in 2011

4.6.1 he overnment ur ued an ex an ionar a o i rom 2008 0 ith a vie to u hion the e onom rom

the e e t o the e onomi ri i he a ex an ion a trengthened during 2011 12 ith the introdu on

o argeted nterven on Program or m o ment and onomi ro th P hi h i e mated at N 14 3 bi ion and o u ed main on in ra tru ture and tran ort agri u ture hou ing and anita on and touri m P a made o ib e through the ounter i a a o i amid t ha enging ma roe onomi environment P i aimed at rea ng ob and a ing u inve tment in e onomi and o ia

in ra tru ture and i ex e ted to ind do n in 2014 15

4.6.2 n 2011 12 tota revenue and grant amounted to N 2 2 bi ion hi t tota ex enditure amounted to N 36 61 re u ng in de it o N6 6 bi ion e uiva ent to er ent o P he a de it a e than N 10 3 bi ion origina ro e ted hi h a e uiva ent to 11 2 er ent o P he deve o ment budget

in uding P amounted to N 6 0 bi ion rom an origina a o a on o N 8 0 bi ion

N

2010/11 2011/12 2012/13*

23 37 29 922 1 38 0 0

ax revenue 21 538 0 2 148 0 35 412 0

Non tax revenue 1 813 0 2 5 6 0 2 4 4 0

rant 24 0 1 0 168 0

SACU 5 14 3 13 0 13 5 8

SA to tota revenue 22 0 23 36 3

to P 6 2 5 13 2

27 2 3 3 3 11 38 0 2

Re urrent 22 56 4 2 403 32 4 3

a ita 4 4 6 20 5 5 568 6

3 878 89 3 11 0

D 4 6 7 0 0 0

Source Ministr of Finance** pected ou urn

4.6. he ro e ted ou urn in 2012 13 indi ate that tota revenue in uding grant i ro e ted to in rea e to N 38 05 bi ion de i ng an in rea e o 2 er ent rom 2011 12 a tua o e on An in rea e in revenue a main driven b SA revenue hi h in rea ed

b a mo t 100 er ent rom the reviou ear rea hing N 13 8 bi ion a ho n in ab e 6 x enditure i

ro e ted to tota N 38 04 bi ion hi h i e uiva ent to 36 4 er ent o P di aggregated a N 32 4 bi ion or o era ona ex enditure and N 5 5 bi ion or deve o ment ex enditure main geared to ard nan ing P t i there ore ro e ted that the

2012 13 budget ou d rea h a ero ba an e a do n ard revi ion rom an e mated a de it o 4 4 er ent

74.7.1 n e ember 2012 tota debt in rea ed to N 26 4 bi ion

re re en ng debt to P ra o o 25 6 er ent hi h remain be o the debt ei ing o 35 0 er ent An in rea e in the to k o debt a main driven b the i uan e o the Rand denominated 850 mi ion ten ear bond hi h i i ted on S ome debt in rea ed rom N 16 0 bi ion

to N 1 2 bi ion e uiva ent to 16 er ent o P and on tuted 65 4 er ent to tota debt

4 2 uring the ame eriod oreign debt tota ed N 1 bi ion e uiva ent to 8 er ent o P and on tuted 14 6 er ent to tota debt he in rea e in oreign debt a arge a a re u t o the i uan e o

the S i ted bond a e a the de re ia on o the Namibian o ar again t other trading urren ie he

urobond a o in rea ed the debt or o io and it va ue in rea ed to N 4 2 bi ion

ANN 1 C N INU D

SACU S C U

3

84.8.1 ro th ro e t remain avourab e in the medium

term but do n ide ri k emana ng rom the g oba e onomi un ertain e o e a threat to the out ook

he e onom i ro e ted to gro b an average o 5 0 er ent during the M eriod he on nued re e ion in the uro Area a e a the o do n in the emerging e onomie ha had a ro ound e e t on the Namibian ex ort o ever the a ommoda ve

a and monetar o i ie a e a the robu t rivate on um on demand i on nue to u ort gro th

4.8.2 Namibia i a ed ith o ia ha enge hi h in ude high unem o ment rate in rea ing eve o overt ine ua it a e a high reva en e o the A S

andemi o addre the e ha enge the government ha embarked on a number o targeted interven oni t

rogram and o i ie

S A1

5.1.1 n rea term the e onom gre b 2 5 er ent in 2012 a o gro th rom 3 5 er ent re orded in 2011 a ho n in igure he o do n a main driven b

a eak er orman e o the mining indu tr a e a a de e era on in the main ontribu ng indu trie ithin the ter ar e tor n 2012 the ter ar e tor on nue to be the an hor o the e onom and ontributed on average 1 er ent to P he manu a turing indu tr ontributed on average 11 er ent to P and gre b

2 4 er ent a de e era on rom 3 6 er ent gro th rea i ed in 2011 Mining and uarr ing de i ted a nega ve gro th o 4 0 er ent rom a o but o i ve gro th o 0 3 er ent rea i ed in 2011 he g oba demand or minera ommodi e dam ened a a re u t o the g oba e onomi o do n triggered b un ertain e and re u tant

re e ion in the uro Area anaemi gro th in the S and the o do n in emerging e onomie ome a mining rodu on ontra ted main due to er i tent indu tria a on mining o i un ertaint de ining ommodi e ri e a e a in rea ing admini tered ri e

5.1.2 Manu a turing on nue to be one o the im ortant i ar or gro th in South A ri a a though it a or t hit b the

e onomi ri i in 200 and ontra ted b 10 1 er ent n ine ith the gro th ro e t in 2010 it re overed and

gre b 5 5 er ent but de e erated b 3 6 er ent in 2011 and urther eakened and gre uggi h b 2 4 er ent in 2012 he eak gro th a main driven b dam ened g oba and o a demand ex hange rate vo a it and re urring indu tria a on n re ara on or the 2010 A Wor d u and other re ated a vi e the on tru on e tor gre b 15 0 er ent in 200 and dro ed to

0 er ent in 2010 o o ing the om e on o in ra tru tura ro e t t then i ked u and gre b 2 5 er ent in 2012 main driven b the ub i e tor

in ra tru ture rogramme and ub i e tor a ita inve tment va ued at R844 6 bi ion to be ent over the medium

7 D6

5

4

3

2

1

0

1

2P

roth

Rat

e

2010 2011200 2008 200 2012

55

36

15

31 35

25

Source: Sta s cs South Africa, DP Second uarter 201

5.1. he gro th in the ter ar e tor on nue to be u orted b genera government hi h gre b

3 1 er ent a de e era on rom 3 er ent gro th rea i ed in 2011 he ommer e ub e tor in ar u ar

ho e a e retai and motor trade gre b 3 6 er ent a o a de ine rom a gro th to 4 5 er ent regi tered in 2011 Mu h a the intere t rate have been ke t o to mu ate gro th a o do n in thi ub e tor an be a ributed to di ru on in the retai indu tr due to indu tria a on a e a the dam ened gro th in the g oba demand hi h nega ve a e ted the motor indu tr ro th in the tran ort and ommuni a on ub e tor a o de ined rom 3 1 er ent rea i ed

in 2011 to 2 3 er ent he rea va ue added in the nan e in uran e rea e tate and bu ine ervi e e tor de rea ed rom 4 0 er ent regi tered in 2011 to

3 3 er ent Primari a a re u t o uggi h a vit in e uit and bond market a e a the banking indu tr

5.1.4 enera a the ub e tor de i ted a o do n in gro th ex e t or agri u ture and on tru on thu ex aining a o do n in e onomi er orman e in 2012

25.2.1 On average unem o ment rate ight in rea ed to

25 1 er ent rom 24 er ent re orded in 2011 A ording to the uarter Labour or e Surve hi h a o in ude em o ment in the agri u tura and in orma e tor over 1 mi ion ob ere o t bet een the ourth uarter o 2008 and third uarter o 2010 but 646 000

ob ere regained during the r t uarter o 2013 outh unem o ment rate a o in rea ed rom 51 5 er ent to 52 er ent in 2012 Ab or on rate hi h re re ent em o ed to o u a on ra o remained at 41 0 er ent

he unem o ment rea hed 25 2 er ent in the r t uarter o 2013 and margina in rea ed b 4 ba i oint

to 25 6 er ent in the e ond uarter

35. .1 o o ing ubdued in a onar re ure in 2010

on umer ri e index in rea ed to an average o 5 0 er ent and 5 er ent in 2011 and 2012 re e ve a ho n in igure 8 n anuar 2012 head ine in a on rea hed the eak o 6 3 er ent but dro ed to 4 er ent in u be ore i king to 5 5 er ent in Se tember and rea hed 5 er ent in e ember n a on brea hed the u er band o the target in the r t our month o the ear ex e t in Mar h hen it rea hed the target he o do n in the g oba out ut and the de rea e in ommodit ri e during the e ond uarter o 2012 moderated in a onar re ure a though head ine in a on moderate in rea ed during the ame

eriod he in a onar re ure ere driven b dome deve o ment in uding the de re ia on o the rand high admini tered ri e and age in rea e in ex e o the in a on emana ng rom high unit abour o t

8 I

12

10

8

6

4

2

0

P

Rate

3 2

6 2

10 1

1

4 35 0

5

2010 2011 20122006 2008 200200

5. .2 n 2013 head ine in a on brea hed the u er end o the target band rea hing 6 3 er ent and 6 4 er ent in u and Augu t re e ve he in a on o o ed an u ard trend due to the re urring de re ia on o the rand a e a the ri e in etro ri e A u tained de re ia on o the rand ma o e ri k to the in a on out ook and the South A ri an Re erve Bank SARB e mate that in a on

ou d average 5 er ent in 2013 and moderate to 5 8 er ent and 5 4 er ent in 2014 and 2015 re e ve hi t other inde endent urve redi t that in a on i

brea h the u er target band Modera on in in a on ma be driven b o ommodit ri e and do n ard revi ion o the average e e tri it ri e in rea e b the Na ona

nerg Regu ator o South A ri a rom 25 er ent to 16 0 er ent a though the de re a on o the rand and

age bargaining ma exert re ure on in a on

I5.4.1 e ite the u ide ri k to the in a on out ook main

driven b the ex hange rate and age re ure the Monetar Po i ommi ee MP on nued to ado t an a ommoda ve monetar o i tan e to mu ate e onomi out ut he re o rate a e un hanged at 5 5 er ent in e November 2010 to Ma 2012 main due to the vo a e and un ertain e onomi out ook a e a the u ide ri k o ever the re o rate a redu ed b 50 ba i oint to 5 0 er ent in u 2012 and a e un hanged in Se tember 2013 to urther ea e the trained e tor o the e onom and in rea e out ut

5.4.2 he Re erve Bank on idered the brea h o in a on target in u and Augu t 2013 a tem orar given the ubdued demand ide re ure a e a on um on

ex enditure o ever the Re erve Bank ommi ed to o e monitor the u ide ri k and undertook to take

a on in a e the u ide ri k deteriorate n ur uit o it mandate the MPP i on nue to monitor dome and g oba deve o ment and re ond a ording

5 5 Ba an e o a ment5.5.1 n 2012 the urrent a ount de it in rea ed to

6 3 er ent o P a deteriora on rom a urrent a ount de it o 3 4 er ent rea i ed in 2011 a ho n in ab e

he deteriora on in the urrent a ount de it a arge driven b or ening trade de it a the va ue o

mer handi e im ort in rea ed a ter than the va ue o mer handi e ex ort he trade ba an e re orded de it in 2003 to 2008 but it hed to ur u e in 200 to 2011 due to ubdued dome demand and again regi tered a de it in 2012 Whi t it a ex e ted that the de re ia on o the rand ou d boo t ex ort the

o e onomi a vit ou ed ith the indu tria a on adver e a e ted the rodu on out ut he de it in the net ervi e in ome and urrent tran er remained tab e at a roximate 4 er ent o P

7 C A 1

2009 2010 2011 2012

Mer handi e ex ort 503 565 6 1 2 6 6 2

Net go d ex ort 52 8 5 5 5 3 1 1

Mer handi e im ort 554 2 5 8 2 30 1 842 8

2 3 27 2 1 7

Net ervi e in ome and urrent tran er 4 102 2 115 2 122 1

97 1 7 98 8 197

D 1 2 8 3 3

Source: SARB Annual conomic Report 201

ANN 1 C N INU D

SACU S C U

5.5.2 overnment ha deve o ed o i ie to romote trade and om e vene but the rate o gro th o ex ort

a air moderate ith a 4 er ent gro th rea i ed in 2012 he to ve ategorie name minera rodu t ba e meta re iou meta ma hiner and e e tri e ui ment a e a motor vehi e on tuted

er ent o tota ex ort Mer handi e im ort gre b 15 er ent in 2012 rom 22 er ent gro th regi tered in 2011 Manu a tured good on tuted 66 er ent to tota im ort o o ed b mining hi t agri u tura im ort ontributed a ma hare to tota im ort

5.5. he vo ume o net go d ex ort de rea ed b 4 er ent in 2012 amid t g oba e onomi o do n he ri e o go d in rea ed rom an average S 1 56 er oun e in 2011 to S 1 668 er oun e in 2012 main due to the de re ia on o the rand

5.5.4 a ita o to the emerging market be ame high vo a e but South A ri a e tru tured a ita market ho ed re i ien e A ording to the SARB 2013 Annua

onomi Re ort the umu a ve in ard oreign dire t inve tment tota ed R210 0 bi ion rom 2008 to 2012 and the inve tment a hanne ed into banking te e ommuni a on ho e a e and mining indu trie On the ontrar umu a ve out ard dire t inve tment de ined to R1 3 bi ion during 2008 to 2012

5.5.5 he gro go d and other interna ona re erve in rea ed rom S 48 bi ion in 2011 to S 50 bi ion at the

end o 2012 o ever the net re erve de ined to S 4 0 bi ion at the end o une 2013 a er the

re a ment o an interna ona bond b the Na ona rea ur he to k o gro re erve margina dro ed rom 4 month im ort over in 2011 to 4 8 im ort over during the r t uarter o 2013

5.6.1 o o ing the nan ia ri i the gro th in broad de ned mone u M3 a ubdued but ho ed ign o re over in 2010 Sin e then gro th in M3 ha

been u tua ng bet een 6 and er ent in ine ith the o e onomi gro th Net aim on the rivate and government e tor u orted gro th in the mone u A ording to the SARB 2013 Annua onomi Re ort the urge in the rivate e tor aim a main driven b an

in rea e in genera oan in ta ment a e redit a e a the ea ing nan e ontrar to the reviou ear hen gro th in mortgage nan ing dominated thi ategor Net aim on government a o gre uggi h a a re u t o o er than ex e ted a umu a on o government e uri e b the banking e tor

5.6.2 ro th in bank tota oan and advan e extended to rivate e tor a on a do n ard tra e tor in e 2008

main driven o i mea ure aimed at modera ng the a er e e t o the nan ia ri i n 2012 redit extended to the or orate e tor on tuted

43 er ent to tota redit hi t redit extended to the hou eho d on tuted 56 3 er ent hi h indi ate a rever a o er entage ontribu on re orded in 200 ear on ear redit extended to the rivate e tor

im roved rom a ontra on ex erien ed in 2010 and in rea ed b an average o 6 er ent in 2011 and moderate gre b an average o 8 er ent rom 2012 to Ma 2013 S o gro th in redit exten ion on nued de ite the ur uit o a ommoda ve monetar o i and mortgage advan e dro ed rom 30 1 er ent in anuar 200 to 3 6 er ent in Ma 2013

75.7.1 South A ri a ma roe onomi rame ork ivot around

ounter i a a o i ie to u ort gro th and inve tment a ong ide monetar o i ie hi h reate an environment o tab e and o in a on to rote t the iving tandard o o in ome hou eho d and

orker he budget o i i guided b the rin i e o ounter i a it u tainabi it and intergenera ona airne he government o o medium term

ex enditure rame ork M hi h out ine ub i ervi e de iver ommitment in ur uit o na ona

deve o ment and tran orma on goa he M or the eriod ahead re e t government ommitment to rea ng ob gro ing the e onom romo ng e uit and a e era ng a e to ua it o ia ervi e

ro th in ending o u e on in ra tru ture edu a on and ki deve o ment im roved hea th out ome integrated and u tainab e human e ement and rura deve o ment n addi on o ia and e onomi in ra tru ture inve tment are to be a ed u Sin e 2011 12 e ia o u ha been a ed on in ra tru tura deve o ment igna ing a rene ed

ub i e tor inve tment drive a a ounda on or ongterm gro th em o ment rea on and deve o ment

5.7.2 ragi e g oba e onomi re over on nued during 2011 12 but gro th in tax revenue remained rm and

a driven b the er ona in ome tax re over o or orate ro t and re i ient on um on demand ota revenue amounted to R843 5 bi ion hi t tota

ex enditure amounted to R 51 3 bi ion re u ng in a budget de it o 3 6 er ent o P an im rovement rom a budget de it o 4 2 er ent rea i ed in 2010 11

5.7. n 2012 13 revenue tota ed R 0 6 bi ion o hi h in ome tax on tuted 30 4 er ent to tota revenue

hi t A and om an tax ontributed 23 8 er ent and 1 5 er ent to tota revenue re e ve ota ex enditure ex eeded a tri ion or the r t me and

amounted to R1 04 tri ion re u ng in a budget de it o 4 2 er ent An in rea e in the ex enditure

a main driven b the ub i e tor in ra tru ture rogramme and ub i e tor a ita inve tment hi h a e mated at R844 6 bi ion over the medium term

and tood at 4 er ent o P hi t inve tment b rivate e tor rea hed 12 2 er ent o P n a drive to ex and rivate inve tment in in ra tru ture R3 2 tri ion orth o in ra tru tura deve o ment a under on idera on and ome o the ro e t are

hedu ed to be im emented during the medium term

5.7.4 t i e mated that in 2013 14 revenue i amount to R 8 bi ion hi t ex enditure i rea h R1 14 tri ion re u ng in an ex e ted budget de it o 4 2 er ent imi ar to the budget de it rea i ed in 2012 13

85.8.1 he net ub i e tor borro ing re uirement a

nan ed through the i uan e o rea ur Bi and dome government bond n 2011 12 tota gro debt amounted to R1 1 tri ion re re en ng 3 er ent o P and in rea ed to R1 3 tri ion during 2012 13 re re en ng 42 5 er ent o P ome debt ontribute 0 er ent to tota debt hi t oreign debt ontribute 10 er ent he ub tan a in rea e in the ountr out tanding externa debt main re u ted rom

an in rea e in rand denominated oreign debt re e ted b non re ident ur ha e o dome a i ued bond and their ho ding o rand denominated de o it ith the South A ri an banking e tor he o eve o oreign debt redu e the government ex o ure to externa ri k hi t on o ida ng and trengthening dome

nan ia market A ording to the SARB 2013 Annua onomi Re ort during 2012 13 the government rai ed

R22 6 bi ion rom dome hort term nan ing our e hi t R120 bi ion a rai ed rom government bond

5.8.2 n Se tember 2012 ra ng agen Mood nve tor Servi e do ngraded the ra ng o South A ri a government bond b one not h to Baa1 rom A3 ith a nega ve out ook Mood a o o ered South A ri a ong term ountr ei ing or oreign urren debt to

A2 rom A1 hi t the ei ing or ong term oreign urren de o it a o ered rom A3 to Baa1 n O tober 2012 Mood a o do ngraded South A ri a arge tate o ned enter ri e name S OM and L OM b one not h rom Baa2 to Baa3 due to o e o era ona and nan ia ink ith the government hi h a er eived to have

a eak nan ia ro e Again in O tober 2012 Mood urther do ngraded oreign urren de o it ra ng o

South A ri a ve bigge t bank name Standard Bank Ab a ir tRand Bank Nedbank and nve te Bank Ltd a

e a eve o ment Bank o Southern A ri a BSA and ndu tria eve o ment oo era on rom A3 to Baa1 he do ngrading o the overeign urren de o it a

main driven b the eakening o the government redit ro e given high overeign ex o ure o the e bank

95.9.1 he o and un ertain g oba gro th ath and dome

on traint are exer ng re ure on the South A ri an e onom Rea P gro th i ex e ted to de e erate to 2 1 er ent in 2013 and therea er a e erate b 3 0 er ent in 2014 and rea h 3 5 er ent in 2016 he gro th ro e t in the medium term are re e ve o g oba e onomi re over ex e ted robu t hou eho d on um on a e a trong ub i and rivate e tor

inve tment he anned in ra tru tura deve o ment i ex e ted to ex and the rodu ve a a it o the e onom hi t e tora deve o ment are ex e ted to boo t rodu vit om e vene and re ear h and deve o ment o ever the u ide di ru on in uding on nued abour di ute adver e a e t South A ri an om e vene and eigh do n bu ine on den e hi h re u t in o e onomi a vit

5.9.2 Rea gro th in ex ort i ex e ted to average 6 2 er ent a ear over the medium term a ommodit ex ort

bene t rom trong demand and high ri e hi t im ort are ex e ted to gro b 6 3 er ent ead ine n a on ore a t i ex e ted to remain ithin the target range o

3 6 er ent edging to ard the u er end o the range in 2013 a the e onom trengthen ntere t rate are ex e ted to remain o over the medium term and the urrent a ount de it ex e ted to iden to 6 3 er ent

in 2013 and average 6 2 er ent in the medium term

S1 2

6.1.1 n 2010 11 and 2011 12 S a i and ex erien ed a ri i due to a de ine in revenue in ar u ar SA

revenue hi h a o er than ex e ted to nan e budgetar o era on A a re u t the e onomi o ed rom 1 er ent rea i ed in 2010 and gre b 1 3 er ent

in 2011 hi h i igni ant be o the targeted average gro th rate a ho n in igure but i ex e ted to moderate gro b 1 er ent in 2012 he ter ar and e ondar e tor ere mo t a e ted due to among

other thing a government a and hiring ree e de a in a ment o the good and ervi e the o ure o a ood u ant government redu on o the a ita budget hi h adver e a e ted the on tru on indu tr and

the rivate e tor a o d ind ed due to o o bu ine on den e

ANN 1 C N INU D

SACU S C U

2. 2012 Na onal Accounts were not o ciall published at the me of prin ng na onal accounts data was sourced from conomic Background Paper which was submi ed in September 201 .

7

9 D3 5

3 0

2 5

2 0

1 5

1 0

0 5

0 0

roth

rate

2010 2011*200 2008 200 2012**

* Provisional ** s mateSource: Background conomic Paper September 201

35

24

13 1

13 1

6.1.2 n 2012 re iminar gure indi ate o i ve gro th ro e t in the ter ar e tor a a re u t o the reviva o

the government a vi e a e a the ex an ion o the bu ine ervi e he e ondar e tor i a o ex e ted to on nue exhibi ng a nega ve gro th a though it de i ted an im rovement but a ontra on o 0 3 er ent rom a nega ve gro th o 2 1 er ent re orded in 2011 he im rovement in the e ondar e tor a main

driven b a ma re over in the on tru on indu tr a the rivate e tor i gradua gaining momentum he

rimar e tor i ex e ted to de e erate b our er ent main due to o agri u tura out ut but mining out ut i ro e ted to in rea e due to the ommen ement o iron ore and oa mining

26.2.1 nem o ment remain high e e ia among the outh

and i e mated at 2 er ent in 2011 he a ri i eakened the rivate e tor and re u ted in the hedding

o ob in the tex e indu tr and other indu trie he romo on o rivate e tor deve o ment a e a the

SM i intended to urb high rate o the unem o ment e e ia among the outh o ever the number o em o ed eo e remain high in the in orma e tor and ub i ten e agri u ture

36. .1 Like other SA Member State in a on rate

deve o ment indi ate an u ard tra e tor in 2012 n a on rea hed 12 6 er ent in 2008 and dro ed to

4 5 er ent in 2010 and therea er o o ed an u ard trend in 2011 and 2012 a ho n in igure 10

10 C I

14

12

10

8

6

4

2

0

n a on rate

ha

nge

2010 2011 20122008 200200

8 1

12 6

5

4 5

6 1

8

6. .2 n 2012 ood and non a oho i beverage on tuted 3 er ent o the on um on ba ket and gre b 13 1 er ent the main driver o the genera ri e in rea e ou ing and u i e index a o ho ed a igni ant gro th driven b an in rea e in on tru on

a vi e a e a the ri e in rea e in u i e in uding e e tri it he in a onar re ure a om ounded b the introdu on o A in A ri 2012 xterna a tor u h a in rea e in the g oba ue in rea e a e a the

de re ia on o the Rand hi h i egged to the Li angeni a o exerted re ure on in a on

I6.4.1 S a i and i a member o MA and there ore o o

the monetar o i tan e ur ued b South A ri a he entra Bank o S a i and e the di ount rate un hanged

at 5 5 er ent in e 2010 but redu ed the rate to 5 er ent in u 2012 and it ha remained un hanged to date n ine

ith the intere t rate movement the ommer ia bank a o redu ed the rime ending rate to 8 5 er ent and it ha a o remained un hanged to date

6.5.1 n 2012 the re iminar gure indi ate that overa ba an e o a ment re orded a ur u o 1 3 bi ion rom a de it o 6 0 mi ion re orded in 2011 he

im rovement in S a i and externa o i on a a a re u t o the good er orman e de i ted b the urrent and the nan ia a ount he urrent a ount re orded a ur u o 1 08 bi ion a ho n in ab e 8 main driven b an in rea e in SA re ei t hi h brought a urge in net urrent tran er rom 3 85 bi ion to 8 0 bi ion in 2012

8

8

2008 2009 2010 2011* 2012**

urrent a ount 1 866 6 3 4 50 2 46 60 2 6 4 5 1 084 10

inan ia A ount 3 10 2 2 8 6 85 20 835 50 663 8

a ita A ount 323 2 1 1 105 20 146 0 30 3

Source: CBS Annual Report 2012 1** Revised*** Preliminar

6.5.2 he trade a ount a o re orded a ur u o 63 2 mi ion rom a de it o 31 2 bi on re orded

in 2011 hi t ervi e and in ome a ount regi tered de it he trade a ount regi tered a ur u due to an in rea e in ex ort o iron ore and oa a e a ugar ex ort and it re ated rodu t main to South A ri a and the he deteriora on o the in ome a ount a main driven b ou o o ro t and dividend b re ident om anie o ned abroad

6.5. he nan ia a ount o the BOP deteriorated in 2012 regi tering a net ou o o 663 8 mi ion om ared to the net in o o 835 5 mi ion re orded in 2011 he net ou o a main driven b de it re orded in the or o io and other inve tment a ount An ana i o the indi ate that re inve ted earning a ount or 42 4 er ent hi t ong term a ita a ount or 3 5 er ent hort term a ita and e uit a ount or 11 3 er ent and 6 8 er ent re e ve

6.5.4 o o ing o eve o re erve hi h dro ed be o the interna ona re ommended thre ho d im ort over eve o three month in 2010 and 2011 the re erve

a umu ated to 2 month o im ort over in 2012 be o the thre ho d An in rea e in re erve a a a re u t o the SA re ei t ind a hi h re eni hed the re erve to ard the target eve

6.6.1 he broad mone u mea ured b M2 in rea ed b 1 er ent in Mar h 2013 rom 3 3 er ent gro th re orded in Mar h 2012 main driven b the re over in the N A he urge in N A a a ributed to the in rea e in SA re ei t a e a the de re ia on o the externa va ue o the Li angeni he N A in rea ed to 12 bi ion rom 3 6 mi ion regi tered in 2011 redit extended to

the rivate e tor regi tered a nega ve gro th due to the dam ened demand or redit in ine ith the ubdued e onomi a vit redit extended to bu ine e de ined

hi t redit extended to the hou eho d margina in rea ed

76.7.1 SA revenue hare ontribute on average 60 er ent

o tota revenue A de ine in SA revenue ex erien ed in 2010 11 and 2011 12 ou ed ith idened age bi gave e e t to the a ri i o ever a dra in rea e in SA revenue hare in 2012 13 augmented SA hare to tota revenue a e a it hare to P re u ng

in a re iminar a ur u o 3 8 er ent o P

6.7.2 n 2010 11 tota revenue in uding grant amounted to 6 83 bi ion hi t in 2011 12 tota revenue in rea ed

to 48 bi ion main driven b the e tab i hment o the S a i and Revenue Authorit SRA he a ad u tment on nued in 2011 12 re u ng in ub tan ve ex enditure ut ota ex enditure de rea ed to 13 bi ion in

2011 12 rom 10 34 bi ion regi tered in 2010 11 main driven b the ra ona i a on o ex enditure hi h

a in ine ith the M Sta Monitored Programme on e uent the a de it de ined to 4 8 er ent

o P rom a de it o 10 er ent o P rea i ed in 2010 11

6.7. he ro e ted ou urn or 2012 13 indi ate that tota revenue and grant in rea ed to 11 2 bi ion ith SA revenue amoun ng to 1 bi ion in u ive o 2010 11 ur u SA revenue in rea ed b 145 er ent and ontributed 60 3 er ent to tota revenue NonSA tax revenue amounted to 4 68 bi ion o hi h in ome tax and A amounted to 1 60 bi ion and

1 5 bi ion re e ve ota ex enditure amounted to 10 42 84 bi ion re u ng to a ur u o 1 3 bi ion

7

2010/11 2011/12 2012/13* 2013/1 **

830 7 79 11 720 0 12 839 3

ax revenue 6 584 340 11 4 0 12 466 8

Non tax revenue 186 5 104 1 12 0 1 1

rant 5 4 34 5 3 6 200 5

SACU 2 630 8 2 883 6 064 8 156 6

to tota revenue 38 5 38 6 60 3 55

to P 10 0 10 0 22 0 1 0

10 338 3 132 3 10 420 0 13 236 1

Re urrent 8 465 1 8 113 8 038 0 10 308

a ita 1 8 2 2 1 018 6 1 3 6 0 2 2 5

3 07 7 1 2 9 1 300 0 39 9

D 10 9 8 3 8 1 1

Source: CBS Annual Report for 2012 1 and M F * e pected ou urn** 201 14

ANN 1 C N INU D

SACU S C U

9

6.7.4 he 2013 14 e mate indi ate that tota revenue i ex e ted to in rea e b er ent tota ing 12 8 bi ion again boo ted b SA revenue hi h tota ed 16 bi ion in u ive o RP ur u o 650 mi ion ota ex enditure i ex e ted to amount to 13 24 bi ion ith urrent ex enditure amoun ng to 10 31 bi ion hi t a ita ex enditure i ex e ted to rea h

2 3 bi ion t i there ore ex e ted that a de it i rea h 1 1 er ent o P

86.8.1 ebt to P ra o i the o e t in SA and i ar be o the interna ona thre ho d ota debt in rea ed to

5 30 bi ion in Mar h 2013 re re en ng 18 5 er ent in rea e rom 4 48 debt to k re orded in Mar h 2012 An in rea e in debt to k i art due to the de re ia on o the Li angeni again t ma or urren ie ebt to P ra o tood at 15 1 er ent in 2012 13 rom 14 2 er ent re orded in 2011 12 hi t dome debt on tuted 6 1 er ent and 0 er ent o P in 2011 12 and 2012 13 re e ve ome debt ha been in rea ing over team due to the in rea ing i uan e o government e uri e main the rea ur bi

96.9.1 he out ook i o i ve and the manu a turing e tor i ex e ted to a ume it ro e o being the main ta o the S a i and

e onom he manu a turing indu trie in ar u ar the rodu on o on entrate ugar and tex e are ex e ted to rebound and in rea e ex ort earning and revita i e the e onom he ending o the a ar and hiring ree e in the ub i e tor i a o ex e ted to boo t on um on demand hi h i be u orted b on going a ommoda ve o i ie he government ini a ve to romote rivate e tor deve o ment taking into on idera on the a read iden ed area or rivate e tor ro e t i ex e ted to boo t e onomi gro th to an average o 3 er ent in the medium term

6.9.2 he im ementa on o i a Ad u tment Roadma aimed at on o ida ng a o i i ex e ted to enhan e dome revenue and ra ona i e ex enditure Moreover the onomi Re over Strateg aimed at im roving the bu ine environment and thu

romote rivate e tor deve o ment i a o u ort e onomi gro th and reate ob o ever S a i and i on ronted ith the re ing o io e onomi ha enge u h a high eve o overt high reva en e o A S a e a high unem o ment rate e e ia among the outh

0

ANN 2S I S

1 I SACU 2010/11

L N S A S

Bot ana x ort 18 136 2 14 13 2 316

o ntra SA 0 1 2 1

Le otho x ort 3 2 148 2 2 153

o ntra SA 2 1

Namibia x ort 323 11 4 65 24 5 323

o ntra SA 0 3 4 8

South A ri a x ort 30 235 11 186 2 10 13 8 85 230

o ntra SA 2 3 10 2 0 13 4

S a i and x ort 5 26 144 8 0 8 322

o ntra SA 0 1 0 1 8

30 37 11 2 0 30 191 17 339 13 938 103 3

2 S

2008/09 2009/10 2010/11 2011/12 2012/13 2013/1A

Bot ana 4 3 16 115 11 502 12 608 13 452

Le otho 4 01 4 18 2 08 4 103 4 80 5 438

Namibia 8 502 8 585 6 44 56 11 33 13 160 16

South A ri a 24 264 24 125 22 651 25 4 28 651 32 21 13

S a i and 6 00 5 18 2 56 4 310 6 0 8 6 504

ore a t o RP1 53 150 51 84 42 0 6 55 22 63 656 0 4 11

Share o RP

Bot ana 18 18 1 21 20 1

Le otho 10 8 8

Namibia 16 1 15 1 18 1

South A ri a 46 46 54 4 45 46

S a i and 11 10 8 10

1. Does not represent actual pa ments made to Member States.

1

he re on i ed intra SA trade gre b 5 er ent in the a ear 2010 11 rom the trade eve o R 6 bi ion regi tered in 200 10 a ear uring the ear 2010 11 Bot ana intra SA ex ort de ined b 0 5 er ent om ared to a de ine o 15 er ent in 200 10 hi e intra SA im ort in rea ed b 2 8 er ent om ared to a de ine o 6 5 er ent in 200 10 Le otho intra SA ex ort in rea ed b 0 er ent om ared to a de ine o 0 1 er ent in 200 10 hi e intra SA im ort in rea ed b 4 3 er ent a om ared to 5 2 er ent in 200 10 Namibia intra SA ex ort in rea ed b 3 2 er ent in 2010 11 om ared to an in rea e o 14 er ent in 200 10 hi e intra SA im ort in rea ed b 12 er ent a om ared to 0 er ent in 200 10 South A ri a intra SA ex ort gre b 6 0 er ent om ared to an in rea e o 1 er ent in 200 10 hi e

intra SA im ort gre b 5 1 er ent a om ared to 11 4 er ent in 200 10 Simi ar S a i and intra SA ex ort gre b 10 5 er ent in 2010 11 om ared to an in rea e o 25 6 er ent in the reviou ear hi e intra SA im ort gre b 1 er ent a om ared to 26 5 er ent in 200 10

n term o intra SA im ort market hare Bot ana a ounted or 2 6 er ent in 2010 11 o o ed b Namibia 2 2 er ent o the im ort market hare South A ri a 16 8 er ent o the im ort market hare S a i and 13 5 er ent o the im ort market hare and Le otho 10 er ent o the im ort market hare he main ommodi e that ere im orted b the Member State

in 2010 11 ere vehi e ha ter 8 a oun ng or a hare o 6 5 er ent o tota intra SA im ort o o ed b ma hiner and me hani a a ian e ha ter 84 a oun ng or 5 0 er ent Whi e on the ex ort ide South A ri a on nued to dominate the intra SA ex ort market in 2010 11 a oun ng or 82 5 er ent o o ed b S a i and a oun ng or 8 1 er ent and Namibia a oun ng or 5 2 er ent o the market Bot ana a ounted or an ex ort market hare o 2 2 er ent hi e Le otho a ounted or 2 1 er ent o the ex ort market hare

A Member State ith the ex e on o South A ri a re orded an intra SA trade de it or the ear 2010 11 South A ri a re orded an intra SA trade ur u o R6 bi ion or the ear under revie hi e the re t o the Member State re orded intra SA trade de it a o o Bot ana R28 3 bi ion Le otho R 1 bi ion Namibia R24 bi ion and S a i and R5 6 bi ion

3 I SACU I

200 /0

2008/9

200 /07

2009/10

2007/08

2010/11

2008/09

2011/12

2009/10

2012/13

2010/11

2013/12010/11

A

Bot ana 16 8 18 233 25 253 31 8 8 2 80 30 63 2 8

Le otho 8 483 638 246 10 246 10 5 11 240 4 3

Namibia 15 336 1 368 23 205 26 548 26 8 30 1 1 12

South A ri a 13 424 13 5 8 14 0 14 80 16 4 4 1 33 5 1

S a i and 10 66 10 1 5 220 10 814 13 6 5 13 38 1

2

3

A

54

S AC U SACU S

Index Page

Council approval and statement of responsibility 55

Report of the Auditor eneral to the Council of Ministers on the nancial statements of Southern African Customs Union 56

Report of the council 57

Statement of nancial posi on 58

Statement of nancial performance 59

Statement of comprehensive income 60

Statement of changes in e uity 61

Statement of cash o s 62

Notes to the nancial statements 63

Contents

55

Co n a o a and state ent o es ons to t e ea ended 31 a 2013

he Council of Ministers duly represented by the Chairperson of Council has delegated the responsibility of monitoring revie ing and managing the business opera ons to the Commission inance and Audit Commi ee and the xecu ve Secretary he annual

nancial statements are ointly signed by the Chairperson of Council and the xecu ve Secretary

he Commission and the inance and Audit Commi ee meet uarterly to monitor and revie the a airs of the Secretariat and then present to the Council

he xecu ve Secretary xecu ve Management and nternal Auditor are responsible for regular revie s and ensuring compliance ith the policies and procedures in the day to day opera ons of the Secretariat urther the Secretariat is accountable for the

implementa on and maintenance of an ade uate system of internal controls dependable records and ensures the safeguarding of assets he Secretariat is further accountable for ensuring that all transac ons are duly authorised

he nancial statements have been prepared in accordance ith nterna onal inancial Repor ng Standards and are based on appropriate accoun ng policies hich are consistently applied and supported by reasonable and prudent udgments and es mates

he Auditor eneral ho is appointed by the Council of Ministers is responsible for the external audit process and to give an independent opinion on the fairness of the nancial statements he Auditor eneral s report is presented on pages 56 to 57

he nancial statements have been prepared on the going concern basis since the Council members have every reason to believe that the Secretariat has ade uate resources in place to con nue in opera on for the foreseeable future

Against this background on behalf of the Council the Chairperson of Council and the xecu ve Secretary accept the responsibility for the annual nancial statements set out on pages 58 to 73 hich ere approved on 1 August 2014 and are signed by

S gonge a A ad a Pa na agoMinister of Finance ecu ve SecretarChairperson: SACU Council of Ministers SACU Secretariat

56

e o t o t e A d to ene a to t e Co n o n ste s ont e nan a state ents o So t e n A an C sto s Un ono t e ea ended 31 a 2013

Int od onhe nancial statements of Southern African Customs Union are sub ect to be audited by the Auditor eneral Namibia in terms

of ecision 27 of SACU Council of Ministers mee ng held on 16 September 2011 in Lesotho

Financial statementsWe have audited the accompanying nancial statements of Southern African Customs Union hich comprise the Statement of

inancial Posi on as at 31 March 2013 the Statement of inancial Performance Statement of Changes in uity and Cash lo Statement for the year then ended and a summary of signi cant accoun ng policies and other explanatory notes as set out on pages 63 to 73

Sco e o t e a dithe xecu ve Secretary of the Secretariat is responsible for the prepara on of the nancial statements and for ensuring the

regularity of the nancial transac ons t is the responsibility of the Auditor eneral to form an independent opinion based on the audit on those statements and on the regularity of the nancial transac ons included in them and to report his opinion to the Council of Ministers

he audit includeda examina on on a test basis of evidence relevant to the amounts disclosure and regularity of nancial transac ons included

in the nancial statementsb assessment of the signi cant es mates and udgements made by the xecu ve Secretary of the Secretariat in the accoun ng

of the transac ons her determina on of and decision on relevance of the transac ons to the Secretariat and of hether the accoun ng policies are appropriate to the Secretariat s circumstances consistently applied and ade uately disclosed and

c evalua on of the overall ade uacy of the presenta on of informa on for its inclusion in the nancial statements

he audit as planned and performed so as to obtain all the informa on and explana ons considered necessary to provide su cient evidence to give reasonable assurance that

the nancial statements are free from material misstatement hether caused by error fraud or other irregularity in all material respect the expenditure and income have been applied to the purposes intended and the nancial transac ons conform to the authori es hich govern them

A dit ndings and o se a onsPolicies and procedures

he audit discovered that the Specialist prepared the isaster Recovery Plan he Strategy and he nforma on Security Policy o ever these documents have not yet been approved despite being recommended by the rnest oung Audi ng

rm during the 2012 Audit and the follo up done by the nternal Auditor urthermore the Secretariat does not have an Steering Strategic Commi ee that reports on the progress of ni a ves to Council

Riskhe above men oned ndings may lead to uncertainty on hat ac ons to take hen a disaster occurs ithin the department

or the Secretariat as a hole he absence of an approved strategy could result in goals that do not contribute to the department s strategic plan if any

Recommenda onhe xecu ve Secretary is recommended to ensure that the isaster Recovery Plan he Strategy and he nforma on Security

Policy are approved by Management

Opinionn our opinion the nancial statements present fairly in all material respects the nancial posi on of the Secretariat as of

31 March 2013 and of its nancial performance and its cash o s for the year then ended in accordance ith nterna onal inancial Repor ng Standards and in the manner re uired by the Southern African Customs Union Agreement 2002

unias tuna and ekeAuditor eneral

1 August 2014

57

Report o t e Council

he Council of Ministers has pleasure in submi ng their report together ith the annual nancial statements of the organi a on for the nancial year ended 31 March 2013

State o a airshe state of a airs of the Secretariat as at 31 March 2013 and the results of its opera ons for the year then ended are fully set out

in the annual nancial statements

Results o opera onshe Secretariat recorded total spending amoun ng to R53 088 951 for the year under revie out of a budget of R87 353 733 he

follo ing provides compara ve informa on

2013 2012

R R

Opera ng expenditure 46 655 846 44 365 353

Capital expenditure 6 433 105 4 726 996

53 088 951 49 092 349

When formula ng the annual budget the Secretariat applies the ac vity based approach in con unc on ith the medium term expenditure frame ork as a basis for planning uring the year under revie budget absorp on as hampered by the slo uptake of the construc on of the ne SACU head uarters building as ell as the development of a SACU legal instrument tender and savings on the ndustrial evelopment Policy tender a ard

xecu e anagementhe members of the execu ve management team ho served during the year under revie ere

Ms T C Moremi xecu ve Secretary

Mr Mahlin a irector Trade acilita on and Revenue Management

Mr J M Mapatha irector Corporate Services ll 31 January 2013

Mr A J aul irector Policy evelopment and Research

Ms N D Oitsile Chief Legal O cer

e Secretariat and t e SACU Council o inistersThe Secretariat as established by the 2002 SACU Agreement as the technical and administra ve arm of the Southern African Customs Union SACU The SACU Council is the highest decision making body of SACU and it is comprised of Ministers of Trade and inance from the SACU Member States The Member States are Bots ana Lesotho Namibia South Africa and S a iland

Su se uent e entsNo material events have occurred bet een the repor ng date and the date of this report hich could materially a ect the nancial statements or re uire addi onal disclosures regarding these events

58

Statement o nancial posi on as at 31 arc 2013

2013 2012

Note R R

ASS S

Non current assets

Property plant and e uipment 5 23 597 239 17 193 963

Current assets 61 133 190 64 136 165

Cash and cash e uivalents 8 58 720 043 63 647 529

Trade and other receivables 7 2 413 147 488 636

Total assets 84 730 429 81 330 128

Capital and reserves

Accumulated funds 70 827 387 68 244 917

CURR NT LIA ILITI S 13 903 042 13 085 211

Bank overdra 8 – 318 244

Trade and other payables 9 11 172 026 10 291 892

Provisions 10 2 731 016 2 475 075

Total reserves and lia ili es 84 730 429 81 330 128

59

Statement o nancial per ormanceor t e ear ended 31 arc 2013

2013 2012

Note R R

Total revenues and ot er income 45 720 458 43 181 393

Common revenue pool contribu on 2 12 43 507 813 40 579 483

ost Country Contribu on 2 212 645 2 067 895

WCO S DA unding – 534 015

Total opera ng expenses 16 46 619 060 44 365 353

Tari Board 1 055 668 376 019

xecu ve Secretary and nternal Audit 6 323 051 6 693 810

Legal Assurance 2 712 727 1 560 611

Communica ons 1 857 707 2 437 218

Trade acilita on and Revenue Management 9 100 611 9 777 061

Policy Development and Research 10 307 938 6 561 009

Corporate Services 15 261 358 16 959 625

Opera ng surplus/ de cit 898 602 1 183 960

inance income 12 3 517 858 4 033 659

Pro t loss on disposal of xed assets 26 727 15 725

Pro t loss on foreign exchange 10 059 12 401

Surplus or t e ear 2 582 470 2 821 573

60

Statement o compre ensive income or t e ear ended 31 arc 2013

2013 2012

Note R R

Surplus for the year 2 582 470 2 821 573

Total comprehensive income 2 582 470 2 821 573

61

Statement o changes in e uit or the ear ended 31 arch 2013

Accumulated unds Total

Note R R

Balance at 1 April 2010 23 429 478 23 429 478

Total comprehensive income 13 607 156 13 607 156

Prior year reclassi ca on of deferred income 9 29 003 641 29 003 641

Prior year overstatement of receivables 616 931 616 931

alance at 31 arch 2011 65 423 344 65 423 344

Total comprehensive income 2 821 573 2 821 573

alance at 31 arch 2012 68 244 917 68 244 917

Total comprehensive income 2 582 470 2 582 470

alance at 31 arch 2013 70 827 387 70 827 387

62

Statement o cash o s or the ear ended 31 arch 2013

2013 2012

Note R R

Cash o s rom opera ng ac vi es

Cash generated in opera ons 13 1 322 314 3 116 804

nterest received 3 517 858 4 033 659

Net cash rom opera ng ac vi es 2 195 544 7 150 463

Cash o s rom inves ng ac vi es

Addi ons to Property plant and e uipment 5 6 804 786 4 726 996

Net cash rom inves ng ac vi es 6 804 786 4 726 996

Net decrease /increase in cash and cash e uivalents 4 609 242 2 423 467

Cash and cash e uivalents at beginning of year 8 63 329 285 60 905 818

Cash and cash e uivalents at end o ear 8 58 720 043 63 329 285

63

Notes to the nancial statements or the ear ended 31 arch 2013

1 eneral in orma on The Secretariat has been established according to the SACU Agreement 2002 and is responsible for the day to day

administra on of SACU

Statement o compliance The nancial statements have been prepared in accordance ith nterna onal inancial Repor ng Standards RS

2 Summar o signi cant accoun ng policies The principal accoun ng policies applied in the prepara on of these nancial statements are set out belo These policies

have been consistently applied to all the years presented unless other ise stated

2 1 asis o prepara on The nancial statements have been prepared in accordance ith nterna onal inancial Repor ng Standards The nancial

statements have been prepared under the historical cost conven on as modi ed by the revalua on of available for sale nancial assets and nancial assets and nancial liabili es including deriva ve instruments at fair value through pro t

or loss

The prepara on of nancial statements in conformity ith RS re uires the use of certain cri cal accoun ng es mates t also re uires management to exercise its udgment in the process of applying the Secretariat s accoun ng policies

The areas involving a higher degree of udgment or complexity or areas here assump ons and es mates are signi cant to the consolidated nancial statements are disclosed

2 2 Foreign currenc transla on (a) Func onal and presenta on currenc tems included in the nancial statements are measured using the currency of the primary economic environment in

hich the en ty operates the func onal currency The func onal and presenta on currency of the SACU Secretariat is the South African Rand AR

(b) ransac ons and balances oreign currency transac ons are translated into the func onal currency using the exchange rates prevailing at the

dates of the transac ons oreign exchange gains and losses resul ng from the se lement of such transac ons and from the transla on at year end exchange rates of monetary assets and liabili es denominated in foreign currencies are recognised in the Statement of inancial Performance except hen deferred in e uity as ualifying cash o hedges and ualifying net investment hedges

Changes in the fair value of monetary securi es denominated in foreign currency classi ed as available for sale are analysed bet een transla on di erences resul ng from changes in the amor sed cost of the security and other changes in the carrying amount of the security Transla on di erences related to changes in amor sed cost are recognised in pro t or loss and other changes in carrying amount are recognised in e uity

Transla on di erences on non monetary nancial assets and liabili es are reported as part of the fair value gain or loss Transla on di erences on non monetary nancial assets and liabili es such as e ui es held at fair value through pro t or loss are recognised in pro t or loss as part of the fair value gain or loss Transla on di erences on non monetary

nancial assets such as e ui es classi ed as available for sale are included in the available for sale reserve in e uity

2 3 Propert plant and e uipment Land is not depreciated as it is deemed to have an inde nite life

Property plant and e uipment are stated at historical cost less deprecia on istorical cost includes expenditure that is directly a ributable to the ac uisi on of the items

Subse uent costs are included in the carrying amount of the asset or recognised as a separate asset as appropriate only hen it is probable that future economic bene ts associated ith the item ill o to the Secretariat and the cost of the

item can be measured reliably The carrying amount of the replaced part is derecognised All other repairs and maintenance are charged to the Statement of inancial Performance during the nancial period in hich they are incurred

Deprecia on on property plant and e uipment is calculated using the straight line method to allocate their cost or revalued amounts to their residual values over their es mated useful lives as follo s

Buildings 5 20 years Motor vehicles 20 5 years urniture and ngs 20 5 years ousehold urniture and ngs 20 5 years O ce e uipment 20 5 years T uipment and so are 33 3 years Leasehold improvements 25 4 years

64

2 Summar o signi cant accoun ng policies con nued2 3 Propert plant and e uipment con nued The residual values of the assets and useful lives are revie ed and ad usted if appropriate at each repor ng date

The carrying amount of an asset is ri en do n immediately to its recoverable amount if the asset s carrying amount is greater than its es mated recoverable amount

ains and losses on disposals are determined by comparing the proceeds ith the carrying amount and variances are recognised in the Statement of inancial Performance

2 4 Impairment o non nancial assets Assets that have an inde nite useful life for example good ill are not sub ect to amor sa on and are tested annually

for impairment Assets that are sub ect to amor sa on are revie ed for impairment henever events or changes in circumstances indicate that the carrying amount may not be recoverable An impairment loss is recognised for the amount by hich the carrying amount of the asset exceeds its recoverable amount The recoverable amount is the higher of fair value less of the asset costs to sell and value in use or the purposes of assessing impairment assets are grouped at the lo est levels for hich there are separately iden able cash o s cash genera ng units Non nancial assets other than good ill that su ered impairment are revie ed for possible reversal of the impairment at each repor ng date

2 5 Financial assets The Secretariat classi es its nancial assets in the follo ing categories at fair value through pro t or loss loans and

receivables and available for sale The classi ca on depends on the purpose for hich the nancial assets ere ac uired Management determines the classi ca on of its nancial assets at ini al recogni on

(a) Financial assets at fair value through pro t or loss inancial assets at fair value through pro t or loss are nancial assets held for trading A nancial asset is classi ed in this

category if ac uired principally for the purpose of selling in the short term Deriva ves are also categorised as held for trading unless they are designated as hedges Assets in this category are classi ed as current assets

(b) Loans and receivables Loans and receivables are non deriva ve nancial assets ith xed or determinable payments that are not uoted in an

ac ve market They are included in current assets except for maturi es greater than 12 months a er the repor ng date These are classi ed as non current assets The Secretariat s loans and receivables comprise trade and other receivables and cash and cash e uivalents in the Statement of inancial Posi on note 7 and 8

(c) Available for sale nancial assets Available for sale nancial assets are non deriva ves that are either designated in this category or not classi ed in any of

the other categories They are included in non current assets unless management intends to dispose of the investment ithin 12 months of the repor ng date

Regular purchases and sales of nancial assets are recognised on the trade date being the date on hich the Secretariat commits to purchase or sell the assets nvestments are ini ally recognised at fair value plus transac on costs for all nancial assets not carried at fair value through pro t or loss inancial assets carried at fair value through pro t or loss is ini ally recognised at fair value and transac on costs are expensed in the Statement of inancial Performance inancial assets are derecognised hen the rights to receive cash o s from the investments have expired or have been transferred and the Secretariat has transferred substan ally all risks and re ards of o nership Available for sale nancial assets and nancial assets at fair value through pro t or loss are subse uently carried at fair value Loans and receivables are carried at amor sed cost using the e ec ve interest method

ains or losses arising from changes in the fair value of the nancial assets at fair value through pro t or loss category are presented in the Statement of inancial Performance ithin other losses gains net in the period in hich they arise Dividend income from nancial assets at fair value through pro t or loss is recognised in the Statement of inancial Performance as part of other income hen the Secretariat s right to receive payments is established

Changes in the fair value of monetary securi es denominated in a foreign currency and classi ed as available for sale are analysed bet een transla on di erences resul ng from changes in amor sed cost of the security and other changes in the carrying amount of the security The transla on di erences on monetary securi es are recognised in pro t or loss hile transla on di erences on non monetary securi es are recognised in e uity Changes in the fair value of monetary and nonmonetary securi es classi ed as available for sale are recognised in e uity

When securi es classi ed as available for sale are sold or impaired the accumulated fair value ad ustments recognised in e uity are included in the Statement of inancial Performance as gains and losses from investment securi es

Notes to the nancial statements con nued

or the ear ended 31 arch 2013

65

nterest on available for sale securi es calculated using the e ec ve interest method is recognised in the Statement of inancial Performance as part of other income Dividends on available for sale e uity instruments are recognised in the

Statement of inancial Performance as part of other income hen the Secretariat s right to receive payments is established

The fair values of uoted investments are based on current bid prices f the market for a nancial asset is not ac ve and for unlisted securi es the Secretariat establishes fair value by using valua on techni ues These include the use of recent arm s length transac ons reference to other instruments that are substan ally the same discounted cash o analysis and op on pricing models making maximum use of market inputs and relying as li le as possible on en ty speci c inputs

The Secretariat assesses at each repor ng date hether there is ob ec ve evidence that a nancial asset is impaired n the case of e uity securi es classi ed as available for sale a signi cant or prolonged decline in the fair value of the security belo its cost is considered as an indicator that the securi es are impaired f any such evidence exists for available for sale

nancial assets the cumula ve loss measured as the di erence bet een the ac uisi on cost and the current fair value less any impairment loss on that nancial asset previously recognised in pro t or loss is removed from e uity and recognised in the Statement of inancial Performance mpairment losses recognised in the Statement of inancial Performance on e uity instruments are not reversed through the Statement of inancial Performance mpairment tes ng of trade receivables is described in note 2 6

2 6 Trade receiva les Trade receivables are recognised ini ally at fair value and subse uently measured at amor sed cost using the e ec ve

interest method less provision for impairment A provision for impairment of trade receivables is established hen there is ob ec ve evidence that the Secretariat ill not be able to collect all amounts due according to the original terms of the receivables Signi cant nancial di cul es of the debtor probability that the debtor ill enter bankruptcy or nancial reorganisa on and default or delin uency in payments more than 30 days overdue are considered indicators that the trade receivable is impaired The amount of the provision is the di erence bet een the asset s carrying amount and the present value of es mated future cash o s discounted at the original e ec ve interest rate The carrying amount of the asset is reduced through the use of a provision account and the amount of the loss is recognised in the Statement of inancial Performance ithin bad debt provision When a trade receivable is uncollec ble it is ri en o against the provision account for trade receivables Subse uent recoveries of amounts previously ri en o are credited against bad debt recovered in the Statement of inancial Performance

2 7 Cash and cash e uivalents Cash and cash e uivalents includes cash in hand deposits held at call ith banks other short term highly li uid investments

ith original maturi es of six months or less and bank overdra s Bank overdra s are sho n ithin borro ings in current liabili es on the Statement of inancial Posi on

2 8 Trade pa a les Trade payables are recognised ini ally at fair value and subse uently measured at amor sed cost using the e ec ve interest

method

2 9 orro ings Borro ings are recognised ini ally at fair value net of transac on costs incurred Borro ings are subse uently stated at

amor sed cost any di erence bet een the proceeds net of transac on costs and the redemp on value is recognised in the Statement of inancial Performance over the period of the borro ings using the e ec ve interest method

Borro ings are classi ed as current liabili es unless the Secretariat has an uncondi onal right to defer se lement of the liability for at least 12 months a er the repor ng date

2 10 mplo ee ene ts (a) Pension obliga ons The Secretariat par cipates in a provident fund The fund is generally funded through payments to a trustee administered

fund determined by periodic actuarial calcula ons The Secretariat has a de ned contribu on plan A de ned contribu on plan is a pension plan under hich the Secretariat pays xed contribu ons into a separate en ty The Secretariat has no legal or construc ve obliga ons to pay further contribu ons if the fund does not hold su cient assets to pay all employees the bene ts rela ng to employee service in the current and prior periods

or de ned contribu on plans the Secretariat pays contribu ons to privately administered pension insurance plans on a mandatory contractual or voluntary basis The Secretariat has no further payment obliga ons once the contribu ons have been paid The contribu ons are recognised as employee bene t expense hen they are due

(b) Bonus plans The Secretariat recognises a liability and an expense for bonuses based on performance ra ngs

66

2 Summar o signi cant accoun ng policies con nued2 11 Provisions Provisions are recognised hen the Secretariat has a present legal or construc ve obliga on as a result of past events it is

probable that an ou lo of resources ill be re uired to se le the obliga on and the amount has been reliably es mated

Provisions are measured at the present value of the expenditures expected to be re uired to se le the obliga on using a pre tax rate that re ects current market assessments of the me value of money and the risks speci c to the obliga on

2 12 Revenue recogni on The Secretariat recognises revenue hen the amount of revenue can be reliably measured Revenue is measured at the fair

value of the considera on receivable An exchange for goods or services of a similar nature and value is not regarded as a transac on that generates revenue

Revenue comprises the Secretariat s share of the customs excise and addi onal du es collected in the Common Customs Area Revenue is sho n net of value added tax returns rebates and discounts

Deferred ncome: n compliance ith AS18 funds received from the Common Revenue Pool have been deferred to match the costs incurred

during the period ith the recognisable income for the year

The unused funds at the end of the nancial year are transferred to Accumulated unds and then used to reduce the budgetary re uirements for the follo ing year

nterest income: nterest income is recognised on a me propor on basis using the e ec ve interest method When a receivable is impaired

the Secretariat reduces the carrying amount to its recoverable amount being the es mated future cash o discounted at the original e ec ve interest rate of the instrument and con nues un inding the discount as interest income nterest income on impaired loans is recognised using the original e ec ve interest rate

2 13 overnment grants rants from the government are recognised at their fair value here there is a reasonable assurance that the grant ill be

received and the Secretariat ill comply ith all a ached condi ons

overnment grants rela ng to costs are deferred and recognised in the Statement of inancial Performance over the period necessary to match them ith the costs that they are intended to fund The unused funds are held in reserves so that future funding takes into account these unused funds

The Secretariat has received the free use of the current o ce premises from the overnment of Namibia A no onal annual rent of R2 212 645 is recognised in the Statement of inancial Performance as a rental cost and also as the ost Country Contribu on This amount is based on an evalua on that as carried out by property evaluators in March 2010 and the standard rental cost escala on in Namibia of 7 2012 7 per annum Rehabilita on costs ere incurred to make the building habitable and these

ere capitalised as leasehold improvements amor sed over a period of four years

overnment grants rela ng to property plant and e uipment are included in non current liabili es as deferred government grants and are then credited to the Statement of Comprehensive ncome on a straight line basis over the expected lives of the related assets

2 14 Leases Leases in hich a signi cant por on of the risks and re ards of o nership are retained by the lessor are classi ed as opera ng

leases Payments made under opera ng leases net of any incen ves received from the lessor are charged to the Statement of inancial Performance on a straight line basis over the period of the lease

Notes to the nancial statements con nued

or the ear ended 31 arch 2013

67

3 Financial risk management3 1 Financial risk actors The Secretariat s ac vi es expose it to a variety of nancial risks market risk including currency risk fair value interest

rate risk cash o interest rate risk and price risk credit risk and li uidity risk The Secretariat s overall risk management programme focuses on the unpredictability of nancial markets and seeks to minimise poten al adverse e ects on the Secretariat s nancial performance

Risk management is carried out by the xecu ve Commi ee using the guidance of policies approved by the inance and Audit Commi ee

(a) Market risk (i) Foreign e change risk The Secretariat operates interna onally and is exposed to foreign exchange risk arising from various currency exposures

primarily ith respect to the United States Dollars oreign exchange risk arises from future commercial transac ons recognised assets and liabili es and net investments in foreign opera ons

(ii) Price risk The Secretariat is not exposed to e uity securi es price risk at the repor ng date

(iii) Cash ow and fair value interest rate risk The Secretariat s interest rate risk arises from investments in a Current account Call account a ixed Deposit account

and t o 32 day Deposit accounts nvestments at variable rates expose the Secretariat to cash o interest rate risk nvestments at xed rates expose the Secretariat to fair value interest rate risk

(b) Credit risk Credit risk arises from cash and cash e uivalents deposits ith banks and nancial ins tu ons as ell as credit exposures

to outstanding receivables and commi ed transac ons or banks and nancial ins tu ons only reputable commercial ins tu ons are accepted ndividual risk limits are set based on internal or external ra ngs in accordance ith limits set by the Council

The Secretariat ill only deal ith nancial ins tu ons that conform to the follo ing criteria Should have minimum audited capital and reserves of R50 million Must be registered in terms of the Namibia Banks Act Unit Trust Control Act No 54 of 1981 and or ith Nam sa

Wri en uota ons on interest rates ill be re uired from at least three nancial ins tu ons and the investments ill be placed ith the counterparty ith the highest o ered interest rate provided that criteria set above have been met

The Secretariat ill only invest in the follo ing Call and other term deposits at ma or banks overnment of Namibia Treasury Bills and overnment Stocks Money Market Unit Trust unds registered in terms of the Unit Trust Control Act No 54 of 1981

unds must be ell diversi ed bet een authorised investment products and nancial ins tu ons so as to spread the risk

Investment T pe aximum Percentage o por olio

Purpose o investment

Opera onal Bank Account

Up to 100 of total por olio These funds ill be used to contribute to ards the daily opera ons and ill be deposited in a current account opened speci cally for this purpose hich

ill be an interest bearing account

Bank Call account and Money Market Account

Up to 100 of total por olio These funds ill be used to provide the Secretariat ith immediately available funds for any unforeseen

payments hilst maximising the interest return

Bank Deposits and Treasury bills up to 12 months

Up to 80 of total por olio These funds ill be invested in money market instruments and term deposits to enable the Secretariat to have easy access to its funds but at the same me earn higher returns on its investments

68

3 Financial risk management con nued3 1 Financial risk actors con nued (b) Credit risk (con nued) The table belo sho s the credit limit and balance of the ma or counterpar es at the repor ng date

31 arch 2013 31 March 2012

Counterparty Credit limitalance

R Credit limit Balance

R

Standard Bank Namibia Ltd – 58 716 815 R1 million 63 324 387Receiver of Revenue – VAT None 1 190 734 None 325 480Prepaid expenses None 184 083 None –Sta allo ances advances None – None 3 489nterest receivable None 220 281 None 12 829

WCO S DA funding None 818 049 None 146 838Total Trade and other receivables 2 413 147 488 636Total Counterparty balances 61 129 962 63 813 023

No credit limits ere exceeded during the repor ng period and management does not expect any losses from nonperformance by these counterpar es

(c) Li uidit risk Prudent li uidity risk management implies maintaining su cient cash and marketable securi es the availability of

funding through an ade uate amount of commi ed credit facili es and the ability to close out market posi ons

The table belo analyses the Secretariat s nancial liabili es into relevant maturity groupings based on the remaining period at the repor ng date to the contractual maturity date The amounts disclosed in the table are the contractual undiscounted cash o s Balances due ithin 12 months e ual their carrying balances as the impact of discoun ng is not signi cant

At 31 March 2013

Less than1 ear

R

et een 1and 2 ears

R

et een 2and 5 ears

R

Over 5 ears

R

Bank overdra Trade and other payables 11 172 026At 31 March 2012Bank overdra 318 244Trade and other payables 10 291 892

3 2 Capital risk management The Secretariat s ob ec ves hen managing capital are to safeguard the Secretariat s ability to con nue as a going concern

in order to provide bene ts to the Member States

3 3 Fair value es ma on The fair value of nancial instruments approximates its carrying amount due to the short term nature of these instruments

4 Cri cal accoun ng es mates and udgments s mates and udgments are con nually evaluated and are based on historical experience and other factors including

expecta ons of future events that are believed to be reasonable under the circumstances

4 1 Cri cal accoun ng es mates and assump ons The Secretariat makes es mates and assump ons concerning the future The resul ng accoun ng es mates ill by

de ni on seldom e ual the related actual results The es mates and assump ons that have a signi cant risk of causing a material ad ustment to the carrying amounts of assets and liabili es ithin the next nancial year are discussed belo

(a) Residual value of land and buildings No deprecia on has been provided on land since the land has signi cant residual value

(b) Deferred income The transfer of deferred income into the next nancial year as approved ith the budget for the next nancial year

4 2 Cri cal udgments in appl ing the en t s accoun ng policies No cri cal udgments ere re uired in applying the en ty s accoun ng policies

Notes to the nancial statements con nued

or the ear ended 31 arch 2013

69

5 Propert plant and e uipment2013 2012

Asset class

Cost/valua on

R

Accumulateddeprecia on

R

Carr ingvalue

R

Costvalua on

R

Accumulateddeprecia on

R

Carrying value

R

Land and buildings 23 768 787 1 960 688 21 808 099 17 697 433 1 736 351 15 961 082

Motor vehicles 1 164 462 738 134 426 328 1 164 462 885 798 278 664

urniture and ngs 723 675 547 808 175 867 699 325 505 871 193 454

ousehold furniture and ngs 1 023 603 954 134 69 469 1 001 462 939 357 62 105

O ce e uipment 422 401 312 146 110 250 414 789 316 023 98 766

T e uipment 5 099 230 4 147 744 951 486 4 791 583 4 259 941 531 642

Leasehold improvements 1 339 540 1 283 805 55 735 1 339 540 1 271 290 68 250

Total 33 541 698 9 944 459 23 597 239 27 108 594 9 914 633 17 193 963

The carrying amounts of property plant and e uipment can be reconciled as follo s

Asset class

Carr ingvalue at the

beginningo the ear

RAddi ons

RDisposals

RReclassi ca on

RDeprecia on

R

Carr ing value at the

end othe ear

R

2013

Land and buildings 15 961 082 6 443 090 – – 596 073 21 808 099

Motor vehicles 278 664 – – – 147 664 426 328

urniture and ngs 193 454 24 296 – – 41 883 175 867

ousehold furniture and ngs 62 105 95 445 73 304 – 14 777 69 469

O ce e uipment 98 766 19 356 11 744 – 3 877 110 255

T e uipment 531 642 702 450 394 803 – 112 197 951 486

Leasehold improvements 68 250 – – – 12 515 55 735

Total 17 193 969 7 284 637 479 851 – 401 510 23 597 239

2012

Land and buildings 12 000 042 4 212 874 – – 251 834 15 961 082

Motor vehicles 433 131 – – – 154 467 278 664

urniture and ngs 225 936 93 816 15 267 11 181 99 850 193 454

ousehold furniture and ngs 185 464 9 119 – 6 320 138 798 62 105

O ce e uipment 119 203 38 296 3 122 3 891 59 502 98 766

T e uipment 493 442 325 676 1 028 970 287 418 531 642

Leasehold improvements 345 530 47 215 – 248 324 247 68 250

Total 13 802 748 4 726 996 19 417 248 1 316 116 17 193 963

70

6 Financial Instruments6a Financial instruments b categor

Loans andreceivables

R

Assets at airvalue through

the pro tand loss

R

eld tomaturit

R

Availableor sale

RTotal

R

31 arch 2013 Assets as per Statement o Financial Posi on Trade and other receivables 2 413 147 – 2 413 147Cash and cash e uivalents 58 720 043 58 720 043Total 61 133 190 61 133 190

Liabili es at air value through the

pro t and loss

R

Other nancial

liabili esR

TotalR

Liabili es as per Statement o Financial Posi onTrade and other payables – 11 172 026 11 172 026Total 11 172 026 11 172 026

2013 2012

R R

6b Credit ualit o nancial assets

The credit uality of nancial assets that are neither past due nor impaired are assessed by reference to external credit ra ngs if available or to historical informa on about counterparty default rates The counterparty balances and a ributes are as follo sTrade receivables Counterpar es without e ternal credit ra ng, but who had no defaults in the past:Receiver of Revenue – VAT 1 190 734 325 480Prepaid expenses 184 083 –Sta allo ances advances – 3 489nterest receivable 220 281 12 829

Donor funding – WCO S DA 818 049 146 838Total trade receivables 2 413 147 488 636Cash at bank and short term bank depositsStandard Bank Namibia Limited 58 716 815 63 651 634Total nancial assets 61 129 962 64 140 270

The residual of the Statement of inancial Posi on item Cash and cash e uivalents cons tute cash on hand

Notes to the nancial statements con nued

or the ear ended 31 arch 2013

71

2013 2012

R R

7 Trade and other receivablesPre payments 184 083 –

Other receivables – VAT 1 190 734 325 480

Sta Allo ances advances – 3 489

nterest and refunds receivable 220 281 12 829

Donor funding – WCO S DA 818 049 146 838

2 413 147 488 636

The fair values of trade and other receivables approximate its carrying amounts

As at 31 March 2013 trade receivables of R2 413 147 2012 R488 636 ere fully performing

Trade receivables that are less than three months past due are not considered impaired As of 31 March 2013 no trade receivables ere past due and none ere impaired The ageing analysis of the trade receivables is as follo s

Up to 3 months 2 413 147 488 636

Total 2 413 147 488 636

The maximum exposure to credit risk at the repor ng date is the carrying value of each class of receivable men oned above The Secretariat does not hold any collateral as security

8 Cash and cash e uivalentsStandard Bank Current Account 1 479 375 –

Standard Bank Call Account 468 722 585

Standard Bank 32 day Deposit 56 779 656 63 651 049

Standard Bank garage card 10 938 9 003

Cash on hand 3 228 4 898

Total 58 720 043 63 647 529

Overdra

Standard Bank current account – 318 244

Total Cash and cash e uivalents 58 720 043 63 329 286

9 Trade and other pa ablesTrade payables 11 172 026 10 291 892

Total Trade and other pa ables 11 172 026 10 291 892

10 Provisions or other liabili es and chargesAt 1 April 2 475 075 1 032 494

Charged credited to the Statement of inancial Performance

– xpenses charged to Statement of inancial Performance 1 531 024 3 196 403

– Addi onal provisions – 717 328

– Unused amounts reversed 1 275 083 1 036 494

At 31 arch 2 731 016 2 475 075

Provisions relate to

– The amount of R1 626 504 2012 R1 596 268 is for leave pay hich accrues on termina on of the services of members of sta

– A further provision of R1 104 512 2012 R2 878 807 is made for the payment of performance bonuses to sta

72

2013 2012

R R

11 mplo ee bene t expenseWages and salaries 28 756 515 25 218 228

Number of employees 40 38

The Secretariat has a de ned contribu on provident fund plan for support sta There are no liabili es for de ned bene ts as there is no de ned bene t plan

12 Finance income and costsPro t loss on foreign exchange 10 059 12 401

inance income

– nterest income on short term bank deposits 3 517 858 4 033 659

Net nance income 3 507 799 4 021 258

13 Cash generated rom opera onsCash o s rom opera ng ac vi es

Surplus de cit 2 582 470 2 821 573

Ad ustment for:

– Deprecia on and amor sa on 401 510 1 316 116

– Non cash ad ustment to xed assets – 19 665

– nterest income 3 517 858 4 033 659

533 878 123 695

Changes in working capital:

Trade and other receivables 1 924 511 233 075

Trade and other payables 1 136 075 3 226 187

1 322 314 3 116 804

14 Commitmentspera ng lease commitments Secretariat as lessee

There are no future aggregate minimum lease payments under non cancellable opera ng leases

15 Related part transac onsThe follo ing transac ons ere carried out ith related par es

The Secretariat is funded from the SACU Common Revenue Pool

Common Revenue Pool contribu ons

– Receipts during the year 43 507 813 40 579 483

43 507 813 40 579 483

e Management Personnel transac on

– xecu ve Secretary Sundry debt recovered a er the repor ng date – 2 989

– 2 989

Notes to the nancial statements con nued

or the ear ended 31 arch 2013

73

2013 2012

R R

16 Detailed Statement o Financial Per ormanceIncome

Common revenue pool contribu on 43 507 813 40 579 483

ost Country Contribu on 2 212 645 2 067 895

WCO S DA unding – 534 015

Total income 45 720 458 43 181 393

xpenses 46 619 060 44 365 353

Adver sing for procurement 1 014 442 284 349

Audit fees 40 226 25 805

Bank charges 66 026 61 009

Communica on costs 715 222 887 111

Deprecia on 401 510 1 316 116

lectricity ater and rates 234 618 198 969

eneral expenses 699 1 058

ospitality expenses 227 911 178 843

ousehold expenses 256 682 314 054

nsurance 92 235 139 664

T services 409 772 508 447

Media and Public rela ons 121 059 323 334

Motor vehicle expenses 158 946 182 427

O ce Supplies 217 594 194 848

Professional fees 4 118 024 4 262 828

Recruitment costs 931 842 1 408 220

Reloca on costs 289 692 667 660

Rent 2 212 645 2 067 895

Repairs and maintenance 189 951 142 970

Salaries 28 756 515 25 218 228

Security 144 780 132 648

Sta training and development 130 132 129 556

Subscrip ons and reference materials 24 391 32 656

Travel accommoda on and subsistence 5 169 187 4 222 444

Workshops and conferences 694 959 1 464 214

Opera ng de cit 898 602 1 183 960

Pro t loss on disposal of xed assets 26 727 15 725

Pro t loss on foreign exchange 10 059 12 401

nterest income 3 517 858 4 033 659

Surplus or the ear 2 582 470 2 821 573

74

List o abbrevia ons

ACP African Caribbean and Paci c roup of Countries

BLNS Bots ana Lesotho Namibia and S a iland

C T Common xternal Tari

CRP Common Revenue Pool

COM SA Common Market for astern and Southern Africa

PA conomic Partnership Agreement

RP nterprise Resource Planning

C uropean Community

U uropean Union

TA ree Trade Agreement

AC ast African Community

CM nterprise Content Management

TA uropean ree Trade Area

ARP enerally Accepted Recordkeeping Principles

DP ross Domes c Product

R uman Resources

CT nforma on Communica ons Technology

PA nterim conomic Partnership Agreement

RS nterna onal inancial Repor ng Standards

M nterna onal Monetary und

T nforma on Technology

TAC nterna onal Trade Administra on Commission of South Africa

LDC Least Developed Country

M RCOSUR Southern Common Market comprising of Argen na Paraguay Uruguay and Bra il

M DP Motor ndustry Development Programme

MMT Mala i Mo ambi ue Tan ania ambia

MOU Memorandum of Understanding

PMS Performance Management System

PTA Preferen al Trade Agreement

R Cs Regional conomic Communi es

RS Revenue Sharing ormula

RTA Regional Trade Agreement

SACU Southern African Customs Union

SAD Single Administra ve Document

SADC Southern African Development Community

SAP Systems Applica ons and Programs

SNA System of Na onal Accounts

SPS Sanitary and Phyto sanitary Standards

TBT Technical Barriers to Trade

TC DP Technical Clothing ndustry Development Programme

TDCA South Africa – C Trade Development and Coopera on Agreement

T SP Trade and conomic Sta s cs Portal

T TA COM SA AC SADC Tripar te TA

T DCA US SACU Trade nvestment and Development Coopera on Agreement

TLC Technical Liaison Commi ee

UNCTAD United Na ons Conference on Trade and Development

US A United States of America

WCO World Customs Organisa on

WTO World Trade Organisa on

75

List o tables

Table 1 ntra SACU trade for the period 2008 09 iscal ear R Millions

Table 2 Trends in Member States revenue shares R Billions

Table 3 ntra SACU mports sta s cs for the purpose of revenue sharing R Millions

Midn ight Star