Windhoek: Southern African Customs Union (SACU) heads of state on Sunday approved the establishment of a R5 billion regional innovative funding mechanism to support development projects across member states. The initiative, known as the Fund of Funds, was given the green light at the ninth SACU Summit held in Cape Town, South Africa. The fund will be capitalised over the 2027/28 and 2028/29 financial years, with resources drawn from the bloc's Common Revenue Pool.

According to Namibia Press Agency, a communiqu© issued on Sunday stated that the summit directed additional technical work to establish the fund's governance arrangements, access criteria, project pipeline, legal requirements, and hosting arrangements. Furthermore, the summit highlighted the need to explore opportunities to mobilise additional funding through a network of development finance institutions and private sector partners. The summit emphasized the importance of sustained and close cooperation among SACU member states to address economic challenges posed by current global developments, particularly through economic diversification and the development of regional value chains.

The summit also called for a minimum 15-year extension of the African Growth and Opportunity Act (AGOA), which is set to expire in December 2026. The extension is viewed as crucial for ensuring continuity of trade, market access, as well as the preservation of the industrial base and job security across the region. The communiqu© expressed the summit's support for extending AGOA to December 2026 and advocated for further extension to maintain regional economic stability.