18 Oct 2020

Africa is ready to work with the European Union (EU) to come up with a strategy that promotes common interests.

This was said by the Minister of Investment, Trade and Industry minister, Ms Peggy Serame when addressing a virtual conference on the transformation of African economies in the case of Botswana as a gateway to doing business in Africa.

Ms Serame said the strategy aimed at achieving shared strategic objectives with concrete targets, but most importantly, strengthening and supporting Africa’s priorities.

She said the conference bore testimony to the importance attached to the advancement of the relationship between Africa and Europe.

Therefore, Minister Serame commended EU for initiating the draft strategy that would form the basis of consultation for a future partnership agenda based on a strong political relationship and close cooperation in key areas between the regions.

The minister highlighted the key areas of the proposal, which included peace and governance, green transition and energy access, sustainable growth and jobs, digital transformation as well as migration and mobility.

Ms Serame said, “True partnership can only be realised by a renewed commitment from both sides to refocus the relationship by creating a mutually beneficial alliance, based on respect, understanding and the pursuit of a prosperous future for all.”

She emphasised that EU would remain Africa’s important trade partner, adding that Eurostat data showed that in 2019, over 65 per cent of goods imported to EU from Africa were primary goods including food and drinks, raw material and energy, while 70 per cent of goods exported from the EU to Africa were manufactured goods.

“It is our hope that the Economic Partnership Agreement between the EU and African countries would create value in the global value chain with majority of processing retained in Africa to create the much-needed jobs and technical know how,” she said.

Without doubt, Ms Serame said the strategy would open new opportunities for growth and development in Africa and in Europe underpinned by trade and investment.

She said Africa presented better prospects when it came to attracting Foreign Direct Investment (FDI). “The 2019 Ernst and Young Africa Attractiveness Survey, however, indicates that FDI in Africa remains small by global standards, but prominent in relation to GDP. It is apparent that Europe will remain an important source of FDI globally and most importantly into Africa,” she said.

Further, Ms Serame said the 2020 FDI Greenfield Investment Report highlighted that Western Europe was the leading source of FDI in 2019, with 7 210 FDI projects recorded, accounting for 46 per cent of all FDI globally and US$300.5 billion in capital investment.

“In this light, Africa remains ripe with business opportunities in a number of sectors, including infrastructure development, energy, agriculture, natural resources as well as information and communication technology, among others,” she said.

Ms Serame said Botswana stood to reap maximum benefits by creating strategic partnerships that could be used as a model for the transformation of other African economies. She said the country had a politically stable and mature democracy, with an established rule of law offering a secure and predictable business environment.

Further, Ms Serame said the country was committed to creating and further improving the doing business environment that would facilitate attraction for investment, supportive infrastructure as well as  a competitive and highly productive workforce.

On trade and investment, Ms Serame said the country had made some strides on the establishment of the Customs Management System to enable pre-online declarations and payment for goods before they arrive at ports of entry.

“This system also forms the foundation for the development of a single window system and future development of one stop border posts with our neighbouring countries,” said Minister Serame.

Ms Serame said Botswana was ready to partner with EU on several key factors of the economy including manufacturing, financial and business services as well as agro processing. ENDS