07 Jun 2023

It was critical for Botswana to ensure that the private sector would benefit before the country ratified the African Continental Free Trade Area (AfCFTA) agreement.

Speaking during the launch of Botswana’s foreign policy conversation programme in Gaborone on Tuesday, Ministry of Trade and Industry chief negotiator, Mr Phazha Butale, said government had to negotiate agreements with other countries with the interest of the country’s private sector uppermost in their mind.

Botswana ratified the AfCFTA during the 36th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Ethiopia in February, becoming the 45th AU member to ratify the agreement.

He said before ratifying the agreement, it was critical for the country to negotiate flexible rules of origin, which would facilitate the country’s participation in the continental value chain as well as favourable terms of trade to attract investment.

He said AfCFTA, which aims to create a single continental market for goods and services, would boost Botswana’s economic growth and diversification drive as well as create employment.

He pleaded with the country’s private sector to position itself to benefit from upcoming opportunities. He added that the agreement provided opportunities for the country to develop its industry, infrastructure as well as liberalise the market while also providing an avenue for the flourishing of trade in services.

Mr Butale also said government’s role was to create a conducive environment for the private sector to prosper and not to be involved in business.

The intra-continental free trade agreement, Mr Butale said, also offered manufactures the opportunity to access cheaper raw materials through preferential trade agreements.

He added that the cheap raw materials would enable local manufactures to add value and to export finished products back to the African continent.

He urged country’s private sector to position itself to benefit from the implementation of the AfCFTA agreement.

Mr Butale also said the geographical location of the country was suitable for it to be the hub for both goods and services distribution and provision.

For her part, Botswana Exporters and Manufactures Association (BEMA) chief executive officer, Ms Mmantlha Sankoloba said the implementation of the agreement was an opportunity for local exporters to reach a wider market base. She said it was a challenge in the past for local exporters to reach markets outside the Southern African Development Community (SADC) and Southern African Customs Union (SACU), and that she was optimistic AfCFTA would unlock a wider export base for local manufactures.

Ms Sankoloba also noted that AfCFTA presented an opportunity for local manufactures and exporters to partner with their peers in the region.ENDS