R18bn

Finweek English Edition - - Indepth -

“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

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