18 Apr 2022

Botswana and Mozambique business communities should channel more resources to capacitate the manufacturing and energy sectors, given the ever-rising cost of living and disruptions in the global supply chain.

 “In this regard, the manufacturing, energy, agriculture and services sectors, as well as ICT, which we have seen to be very critical during these times,  present limitless opportunities,” President Dr Mokgweetsi Masisi said during the Botswana/ Mozambique business forum in Gaborone recently.

The President said there was need for the two countries to scale up efforts toward achieving food security through increased production in the agricultural sector.

He said achieving self-sufficiency in food production  and unlocking the  value chains in  the entire agriculture sector should bring full effect on the reduction of the import bill .

Thus, he said it was important to buttress the importance of building and strengthening strategic trade dimensions, given the regularity and frequency of disruptions to global supply chains in the current times.

Dr Masisi said trade flows between  Botswana and  Mozambique displayed a mixed picture adding that as a case in point,  imports from Mozambique to Botswana reached a peak of P1.1 billion in 2016, while exports from Botswana to Mozambique in the same year stood at over P31 million.

“By November 2021, there was a significant decline in terms of imports from Mozambique, which stood at over P60 million  while exports to Mozambique fell just over P29 million,” he said

President Masisi indicated that Botswana’s export basket comprised mainly of pharmaceutical products, meat, boilers, machinery, plastics and articles thereof, amongst other goods while imports from Mozambique primarily comprised mineral fuels, mineral oils, cereals, and machinery and mechanical appliances.

He said the weak performance and decline in imports and exports between the two countries was clear of strong potential for trade and investment opportunities between the two countries.

He urged the business community to maximise gains from the country’s bilateral relations and adopt cluster-based development approaches,  which prioritize critical sectors with greater beneficiation.

Further, President Masisi commended the inclusion of Mozambique, alongside the Southern Africa Customs  Union  (SACU) countries in the  Economic Partnership Agreement (EPA) framework, both with the European Union and lately with the United Kingdom.

This, he said would indeed,  further strengthen economic ties and resolve towards a common market.  

For his part,  President of  Mozambique  Mr   Filipe Nyusi applauded the economic democracy between Botswana and Mozambique highlighting that there were vital for the prosperity and livelihoods enhancement of their respective citizenry.

Mr Nyusi said the proposed  Port Techobanine Inter-regional Heavy Haul Railway project which is envisaged to move passenger traffic and cargo between Botswana,

Zimbabwe and Mozambique was one of the regional flagship projects set to gain traction after the latest round of engagements between the concerned countries.

He said that the mulled mega rail project would result in the creation of an international trade route linking Botswana Mozambique to the eastern markets. ENDS