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SACU speeds up green automotive and mineral processing strategy

The Southern African Customs Union (SACU) is moving closer to finalising a unified strategy to transform the region into a competitive hub for electric vehicle manufacturing and green mineral processing.

Speaking at the fifth meeting of the SACU Task Team on Automotive and Green Mineral Beneficiation, South African Chair Sibu Khumalo pressed member states to deliver actionable frameworks to drive regional industrialisation.

With the primary objective to advance the SACU Smart Specialisation Strategy for Automotive and Associated Green Mineral Beneficiation, this strategy fulfils a direct mandate issued by the SACU Council during its December 2024 session.

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“Our draft reports must be comprehensive, clearly articulated and provide a strong framework for regional automotive development,” Khumalo stated.

According to Khumalo, a major item on the task team’s agenda was the evaluation of the sub-regional, cross-border battery value chain project.

“As the global automotive industry transitions toward electric mobility, the project aims to integrate regional supply chains to utilise local mineral resources effectively,” mentioned the Chair of the Task Team.

Member states presented individual country updates on mineral exploration and processing.

The Republic of Namibia shared progress regarding its lithium pilot processing project.

Meanwhile, the Kingdom of Eswatini presented its recent geological mapping data and the current status of its national mineral exploration initiatives.

These initiatives are geared toward mineral beneficiation, a policy priority aimed at ensuring raw materials are processed within southern Africa rather than exported in their raw state.

In addition to internal regional integration, the task team reviewed draft modalities for a proposed Industrial Participation Agreement with North African markets, specifically Egypt and Algeria.

The agreement seeks to establish formal mechanisms for cross-border industrial cooperation, expanding market access for SACU’s automotive and mineral outputs outside of the immediate southern African bloc.

According to the officials during the session, the technical recommendations formulated during the Eswatini meeting will face high-level review.

The task team processed a concept note for an upcoming Investment Roundtable on Mineral Beneficiation, which will be submitted to Senior Officials for refinement.

The outcomes of this meeting directly impact the agenda for the upcoming Ninth SACU Summit.

Both the Council of Ministers and the regional Heads of State and Government have requested two definitive deliverables: the finalised Smart Specialisation Strategy draft and the operational modalities for trade partnership with Egypt and Algeria.

Khumalo credited the SACU Secretariat for maintaining administrative momentum despite current economic challenges,

urging delegates to maintain a focus on practical recommendations that can transition smoothly into enforceable regional policy.

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