26 Feb 2023

Local businesses have been encouraged to take advantage of the opportunities offered by the African Continental Free Trade Area (AfCFTA) Agreement by establishing businesses that can benefit from the favourable terms.

The Minister of Trade and Industry Mr Mmusi Kgafela said this during a press conference in Gaborone on Wednesday.

He told the media that Botswana would now be able to trade under the AfCFTA, after verification of the Southern African Customs Union (SACU) Tariff Offer by the AfCFTA Secretariat, which takes about month.

The media briefing comes after Botswana’s ratification to the AfCFTA Agreement on February 19 during the 36^th Ordinary Summit of the African Union Assembly of Heads of State and Government held in Addis Ababa, Ethiopia.

Mr Kgafela explained that the AfCFTA aimed at creating  a single market for goods and services facilitated by movement of business persons in order to deepen the economic integration in Africa. 

The agreement, he said would accelerate regional integration efforts aimed at ensuring that African countries trade more with each other.

In addition, Mr Kgafela said the agreement would provide for rules of origin that support use of Africa’s raw materials and allows for importation where there are resource gaps in the continent.

Such products would benefit from concession under the agreement and would support Botswana’s efforts to participate in global value chains , he said. 

The agreement provides for SMMEs to trade under the AfCFTA and has a Provision/Protocol on Women and Youth in Trade, he said.

He noted that the Protocol is expected to address the specific constraints and barriers faced by women when trading on the continent.

It will create an environment that allows women to utilise the AfCFTA by accessing wider markets, improving their competitiveness, and participating in regional value chains.

Mr Kgafela further noted that SMMES would thus be able to export their products to the AfCFTA Market provided that the products meet the Rules of Origin criterion and import raw materials from the continent.

Due to the larger market provided by the AfCFTA, companies would set up in Botswana and thus provide employment to the people. Ends