“The last time I looked, SA would be some better off if it could tear up the customs subsidy portion of the revenue-sharing formula.”
also told Parliament in 2015 that SA contributed about 97% of the customs revenue pool and received only about 17% of it.
Tutwa Consulting senior consultant and former diplomat Catherine Grant-Makokera attributes the imbalanced contribution to SA being forced to pay for its sins of being the economic “big brother” by propping up the budgets of smaller neighbouring states.
“It’s a very contentious issue,” she tells finweek. “The revenue-sharing agreement sees SA transferring around 1% of its annual revenue to member states, making SA in essence the largest donor of development funds in the world.”
A June summit between the heads of state of Sacu members, in Swaziland, seemed to yield little progress