A new agreement for the Southern African Customs Union (Saco) was reached by all five-member states at the end of last year. Deputy finance minister Rick Kukuri on Wednesday tabled the agreement in the National Assembly for ratification. Namibia derives about one third of its national income from Saco. Swaziland, Botswana, Lesotho and South Africa are the other members of the longest existing customs union in the world, which was started in 1969. The new agreement, which took almost seven years to negotiate, was more transparent and now involved all member states in key decision-making. The most important issue resolved was to agree on a more equal revenue sharing formula. It was further decided to establish a secretariat. Namibia was chosen to host the new Saco secretariat, which is to also handle the settlement of any disputes.

Earlier this year Saco member states engaged in discussions to set up a Free Trade Area between the US and Saco. This will boost the importance of the new secretariat with regard to the US Africa Growth and Opportunities Act (Agoa), which allows certain African countries, including Namibia to export goods to the US tariff free.

The secretariat of the Alliance of Mayors and Municipal Leaders (AMICAALL) was set up in Katutura, Windhoek last year and will receive 3,6 million N$ for its operations in 2003. The organisation was established about two years ago linking the mayors and municipalities of most African countries in a joint fight against HIV/Aids. During a two-day meeting of the AMICAALL coordination committee in Windhoek at the end of last week, the budget, provided by various donors was approved. Windhoek’s re-elected mayor, Matheus Shikongo reiterated Namibia’s will to fight the scourge of Aids. Namibia has about 230 000 people infected with HIV. The possibility of compulsory testing for HIV/Aids was discussed, but rejected by some of the delegates from West Africa.

Metropolitan Life and First National Bank Namibia joined up to start a truly Namibian unit trust scheme. From as little as 150 N$ per month, citizens can invest their money in the new FirstMet unit trust on the market. A strive to diversify products for clients and First National’s countrywide infrastructure were reasons for the joint venture. FirstMet is equally owned by the two entities.

The cost of living in Windhoek from January 2002 to January 2003 rose by 12,8 percent. Compared to December 2002, prices rose by 11,3 percent last month. The Central Bureau of Statistics released these figures this week. Food prices increased 22,1 percent in the past twelve months. At the end of last year, the annual inflation rate for food prices for 2002 was calculated at 24 percent. No relief from these burdens is in sight. The RSA Reserve Bank is not inclined to lower interest rates, which were increased four times last year. The pending war on Iraq and a relatively high inflation rate in South Africa prevent this.