India signs Preferential Trade Agreement with five Southern African Nations

India and the Southern African Customs Union have signed the official terms of Reference for negotiations towards a Preferential Trade Agreement.

The signing took place in New Delhi.

The Southern African Customs Union (SACU) comprises five countries in the region, and these are Botswana, Eswatini, Lesotho, Namibia and South Africa.

Like other customs unions, a key feature of the SACU is the application of a single tariff regime, which is the Common External Tariff (CET)

It was pointed out during the event that India and Africa share deep and historic relations rooted in trust, solidarity, mutual respect and a shared commitment to development.

This relationship is entering an important new phase as both sides expand economic cooperation, strengthen trade and investment, and work together to create new opportunities for their people.

A significant milestone therefore came on 12 August 2026, when India and the Southern African Customs Union (SACU) signed the Terms of Reference for negotiations towards a Preferential Trade Agreement (PTA) at the official event held in New Delhi.

The agreement provides a framework for India and the five Southern African Customs Union member states to work toward expanding market access and strengthening economic ties.

The new development demonstrates the growing ambition on both sides to deepen commercial relations and create new opportunities for businesses, investors and communities.

Africa itself is moving forward with increasing economic integration, industrial development, infrastructure investment and technological transformation.

The continent’s young population, growing consumer markets and expanding entrepreneurial ecosystem are creating significant opportunities for international partnerships.

“India and Africa share deep and historic relations that are rooted in trust, solidarity and mutual respect. The strengthening of economic ties with African nations demonstrates that this relationship is moving forward with confidence and a shared vision for the future.”

According to a statement, India and Africa are moving forward together.

The two sides invest in trust as the foundation, partnership as the pathway and shared prosperity as the goal.

SACU predates modern trade and customs Agreements, and it remains the oldest functioning Customs Union. It was originally established by the British colonial power in the 1880s.

In 1889, a Customs Union Convention was held between the British Colony of the Cape of Good Hope and the Orange Free State Boer Republic, preceding the formal establishment of SACU in July 1910.

Later, in 1891, this Customs Union Convention was joined by British Bechuanaland and Basutoland while Natal joined in 1899.

Following the end of the South African War, a new Customs Union incorporating the previous Territories of the original Customs Union plus the Transvaal and Southern Rhodesia, was formed in 1903.

The Kingdom of Swaziland joined this enlarged Customs Union in 1904 and North-Western Rhodesia in 1905.