10 Feb 2022

The African Continental Free Trade Agreement (AfCFTA)  which was scheduled to become operational January 1 last year is held in abeyance owing to outstanding negotiations on rules of origin and tariffs.

Officiating at the national consultative forum on the development of AfCFTA  yesterday, Minister of Investment, Trade and Industry, Mr Mmusi Kgafela said Botswana was yet to ratify the agreement despite having deposited the required number of ratification instruments to allow for the treaty’s commencement.

Minister Kgafela said in preparation for implementation and subsequent accession to the agreement, his ministry had secured support from the United Nations Economic Commission for Africa to develop the country's strategy.

The strategy would complement Botswana’s broad trade policy by identifying key trade opportunities, current constraints and steps required to take full advantage of the agreement, he said.

That, he said, would support the country's economic diversification endeavours and increase the competitiveness of local goods and services in intra-African trade.

Minister Kgafela reaffirmed Botswana’s commitment towards ensuring that local entrepreneurs benefitted from the  agreement.

The critical role of the private sector in the implementation and exploitation of the agreement could not be over emphasised, the minister said.

Describing the agreement as a tool, he expressed optimism that it would help the country realise its Vision 2036 aspirations of stimulating growth through value addition and beneficiation of natural resources.  

“Similar to our Vision 2036 goal, AfCFTA  also calls for the modernisation of our agriculture, full digitisation of  information and communication infrastructure as well as empowerment and full participation of our citizens towards transforming our country from a resource-reliant economy to a fully industrialised one,” he said.

Minister Kgafela  said Botswana’s geographical location coupled with its integrated transport network and information and communication technology would enable the country to harness opportunities offered by AfCFTA.

The agreement would not only  be a vehicle for trade among African states, but would also offer an opportunity to exploit the abundant wealth and resources for the benefit of the citizenry, said Minister Kgafela.

He said the recently completed Kazungula Bridge also offered huge prospects for access to the wider African market.

The ministry’s chief negotiator, Mr Phazha Butale said as the agreement brought with it several opportunities to eliminate abject poverty and unemployment, it was important to solicit proposals from key stakeholders that would inform the development of a national AfCFTA implementation strategy.

Commenting on the ratification delay,  Mr Butale emphasised the importance of negotiating favourable export tariff duties to enable Botswana's exporters to be more competitive in African markets and to access raw materials at competitive  rates.

Before depositing ratification instruments, he explained, it was critical for the country to establish flexible rules of origin which facilitated Botswana’s  participation in the  continental value chain as well as to affirm favourable terms of trade to attract investments.

Mr Butale urged the private sector to position itself for optimal benefit from AfCFTA implementation.BOPA