04 Aug 2022

 Botswana and South Africa should strive to close the trade imbalance existing between the two countries.

President Dr Mokgweetsi Masisi said this at the Botswana-South Africa Business Forum Roundtable held in Gaborone yesterday.

He said Botswana had over 28 years experienced negative trade balances with South Africa that ran into billions of Pula each year.

“Between 2017 and 2021, Botswana exported to South Africa goods worth P31 billion while it imported goods worth P210 billion. On average, Botswana is importing P42 billion and exporting only P6 billion worth of goods per annum and these figures reflect trade deficits or negative trade balances,” he said.

The President said though it was not unusual for products from bigger and more industrialised economies to dominate markets of non-industrialised countries, the hope was that the monopolistic industrial and commercial dominance in Botswana-South Africa relations would not persist indefinitely.“The trade landscape between Botswana and South Africa that remains skewed in favour of the latter should drastically improve,” he stated. 

President Masisi said to that end, Botswana continued to work tirelessly to improve exports to South Africa and the rest of the world, in terms of volume, variety and value.

That was achievable mainly by participating in bilateral value chains with South Africa, he said.

“We intend to identify new sectors from the regional and continental product space which can successfully be wholly produced or grown in the country to form part of the value chain. 

These will result in significant job creation, especially for the young people, while also driving the much-needed export diversification to support the country’s aspirations of an export-led economy,” said Dr Masisi.

He said South Africa was a critical partner for Botswana especially as the country continually explored ways  of diversifying and expanding its economic base as well as to tap into the growing African market.

“This will be consistent with maximising the advantages that will accrue consequent to the advent of the Africa Continental Free Trade Agreement (AfCFTA) that brings an opportunity for all to embrace,” President Masisi said.He informed his audience that Botswana was in the process of ratifying AfCFTA. 

“It is through successful implementation of these trade agreements that the low levels of intra-Africa trade can be addressed,” the President said. ENDS