06 Mar 2022

Parliament has heard that there is no evidence showing that large chain stores are using the ban of importation of vegetables to monopolise trade of horticulture products and driving informal sector out of business.

In response to a parliamentary question on Friday, Assistant Minister of Agricultural Development and Food Security, Mr Molebatsi Molebatsi said the ban on importation of vegetables was an effort by government to protect market for local horticulture products.

He said the move would eventually result in growth of the horticulture sector.

“Government has realised that Batswana are suffocated by import products from other countries. Some of those products are those that we can produce in our country. These include vegetables because we have enough water and land in some parts of the country. We also have programmes which support farmers,” he said.

He said government did not regulate the trade of vegetables between producers and retailers. He added that government, through the Ministry of Investment, Trade and Industry, would be able to intervene where there were unfair business practices.

However, he said there was no evidence of unfair trading since the ban of importation was effected.

Mr Molebatsi said he held a meeting with informal traders, retailers and suppliers in February where they discussed how business would continue.

“During the meeting, potato suppliers said they relied more on the market from informal traders. Therefore there is no how they would refuse to sell to informal traders,” he said.

He urged farmers to enter into contracts with both the informal traders and chain stores to ensure certainty of business.

The minister said the negative impact of the ban so far was that the country had been experiencing shortage of potatoes, which he acknowledged was anticipated. He said there would be enough supply of potatoes by the beginning of April.

“The potato producers have increased their production. We have also had some farmers start new potato production. We are therefore achieving what we wanted through the ban of importation of vegetables, which is to increase production of horticulture products in Botswana,” he said.

Francistown West MP, Mr Ignatius Moswaane had asked whether the minister was aware that the ban on importation of fruits and vegetables was being used by large chain stores to monopolise and drive the informal sector out of business.

Mr Moswaane further asked whether the minister was aware that some informal traders were unable to source enough potatoes from as far away as Ghanzi, Kudumatse and Tuli Block as the farmers were refusing to sell to them.

He further said chain stores entered into contracts with farmers leaving only left overs or nothing for informal traders.

Mr Moswaane also expressed concern that there had been shortage of potatoes for three months which had affected informal traders.

He also alleged that the ban was used by some cabinet ministers to protect their own horticulture business interests.

To that, Mr Molebatsi said he was not aware of those allegations of conflict of interest and unfair business practices.

He further said there was no law that prohibited cabinet ministers from engaging in business, but they only needed to make a declaration to the President about their business interests.

Nata/Gweta MP, Mr Polson Majaga argued that the ban on importation of vegetables was a good move by government. He therefore opposed suggestions for a temporary lift of ban.

Maun East MP, Dr Goretetse Kekgonegile was however of the view that government should have waited for potatoes to be available from local suppliers before banning importation of the commodity.

He said shortage of potatoes had resulted in high increase of their price in the market.  Ends