07 Aug 2022

Creation of industrial value chains will move Southern Africa Customs Union (SACU) towards a new and brighter future of joint investment and development.

It was on such backdrop that South Africa President, Mr Cyril Ramaphosa, urged member states comprising his country, Botswana, Lesotho and eSwatini, to conclude work on the creation of industrial value chains in the region.

President Ramaphosa made the call at the 28th anniversary celebrations of Botswana and South Africa bilateral trade relations held in Gaborone on August 4-5.

He said the region would, through such value chains, also be able to grow industrial exports to the rest of the continent as new markets in West, East, North and Central Africa hold immense potential for both South Africa and Botswana.

“It is pleasing to note that work is underway in SACU on a work programme on industrialisation to promote industrial development and regional value chains, export promotion, investment attraction and promotion,” he said.

He added that Botswana and South Africa could both achieve more by working closely together since the trade and investment ties between the two countries had grown stronger over the years and laid a firm basis for even greater economic cooperation and integration into the future.

“Over the past five years, South Africa’s foreign direct investment stock in Botswana has increased year on year, reaching over P51 billion in 2021. While we will continue to encourage South African investment into Botswana, we are encouraged by the Botswana companies that have already invested in South Africa,” he said.

President Ramaphosa said nine Foreign Direct Investment(FDI) projects from Botswana to South Africa were established between January 2003 and December 2021, attracting capital investment worth P4 billion, resulting in the creation of over 2 000 jobs.

President Ramaphosa was also happy that joint export promotion platforms discussed at SACU level for leveraging African Continental Free Trade Area (AfCFTA) opportunities were promising.

“I am encouraged by the work that has already begun through our respective trade and industry ministers to align our plans towards a common SACU plan of action for operationalising the African Continental Free Trade Area,” he said.

He added that intra-African trade opportunities accruing from the AfCFTA could only be realised through facilitating intra-Africa investments, hence the need to encourage companies to invest in areas that would address the continent’s infrastructure and industrial deficits.

“South Africa is committed to supporting our partners on the continent to reach their industrialisation goals,” President Ramaphosa said. ENDS