Answer to Question #193369 in Economics of Enterprise for Beau

Question

Overlappings between SACU, SADC and AfCFTA could pose a problem to Namibia. Briefly discuss the possible problems that could result from such overlapping membership.

Answer 1

Having overlapping membership between the groups will lead to conflict, and it will almost certainly increase transaction costs for businesses and governments. These issues will become more serious as these regional groups step toward deeper trade and economic integration.