26 May 2019

Customs collection is expected to contribute 23 per cent of the government budget for the current financial year.

Officially opening the World Customs Organization East and Southern Africa 24th Governing Council, Minister of Finance and Economic Development, Mr Kenneth Matambo said Botswana, like other developing countries around the world, received a significant proportion of income from customs and excise revenues.

He said government was however, fully aware of the role it had to play in reducing over reliance on customs revenue, hence the relentless pursuit of a number of economic initiatives with the view to enhance the level of investment through broadening the domestic tax base.

In an effort to improve trading environment, he said Botswana had developed and enacted new legislation such as the recently implemented Customs Act and the Excise Act, which are all geared to ensure that customs is well equipped to keep up with future developments and challenges.

Mr Matambo acknowledged World Customs Organization (WCO)’s efforts to improve international trade towards member states in the East and Southern Africa region.

He highlighted that the assistance contributed significantly towards harmonising customs processes and procedures and to build capacity in areas such as combating illicit trade and money laundering.

He commended the role that the WCO played to champion the facilitation of international trade, the development of global customs standards, the enhancement of customs procedures and the development of sustainable global customs capacity building programmes.

“Botswana’s conviction is that we need closer cooperation with other countries across the globe in strategic areas such as customs, if we are to meet the sustainable development goals and other challenges,” he said.

He urged other countries to embrace the principle of free trade as a vehicle to development, adding that the African Continental Free Trade Agreement created a single continental market for goods and services, with free movement of business persons and investment and thus paved the way for accelerating the establishment of the African Continental Customs Union.

“It is important to development sustainable solutions that will bring about and encourage free trade among WCO ESA countries, hence Botswana has faith and confidence in working with international bodies, and has taken a decision to join the global community in adopting various international instruments aimed at simplifying and harmonising customs systems and procedures,” he said.

He therefore remained hopeful that the WCO ESA meeting outcome would provide pointers towards reducing costs involved in international trade as well as securing international trade supply chain for the economic growth of member states.

Mr Matambo said it was through such fora that modern and more efficient strategies of facilitating trade were discussed, shared and adopted for the greater good of member states. ENDS