27 Mar 2022

In welcoming the recent European Union (EU) decision to delist Botswana from financial blacklisting, Botswana has underscored the importance of dialogue in international decision-making. 

Minister of International Affairs and Cooperation, Dr Lemogang Kwape expressed these remarks recently when delivering a statement on the delisting of Botswana by EU from high-risk third world countries. 

Dr Kwape said while Botswana welcomed the recent March 13 delisting by the EU, the country was unhappy with lack of consultation when the decision was initially taken. 

“Our engagement with the EU since October 2020, was necessitated by genuine concern that Brussels had unilaterally, and without due regard for our interest and welfare, taken this decision, which had grave consequences,” Dr Kwape said. 

He added that it was regrettable that such decisions by EU to automatically blacklist states that had been grey listed by Financial Action Task Force (FATF) continued to affect developing countries in the Organisation of African, Caribbean and Pacific States (OACPS) bloc. 

“Of further serious concern was that the absence of consultation risked the processes that Botswana and the affected fellow OACPS countries were undertaking under the auspices of FATF,” Dr Kwape remarked. 

He said following Botswana’s grey listing by FATF, an intergovernmental body set up in1989 to combat money laundering and terrorism financing, Botswana had worked to address loopholes identified in the country’s financial legislative and policy framework. 

“Botswana had already made political commitments at the highest levels, and went on to put in place measures to be in compliance with the FATF regime. 

It was our ardent belief that any other process beyond the FATF could derail the requisite attention at the meeting of its standards,” Dr Kwape said. 

He said the blacklisting by EU only served to have negative impact, leading to reduced flow of investment; lowering business confidence and the ability to attract foreign direct investment (FDI); ineligibility of Botswana firms to receive funding from the EU as well as lessening the country’s ability to solicit support for its candidates in international organisations. 

He said upon starting dialogue with the EU, it was agreed that consultation should be key to cooperation, and that the resolution to the listing process lay with compliance to FATF procedures. 

When Botswana was removed from the FATF grey list on October 21 2021, the expectation was that the EU, which did not have any additional requirements for a country to meet before being delisted from the blacklist would also delist Botswana. 

However the EU only did that, only recently, after President Dr Mokgweetsi Masisi raised the issue during meetings with the President of the EU Council in late 2021, and during the European Union-African Union (EU-AU) Summit in Brussels, in February this year. “We thank our European partners and are comforted in the knowledge that EU as a partner, not only with Botswana but with the SADC, African Union (AU) and OACPS still recognises dialogue as key to fraternal relations,” Dr Kwape said. Ends