Gaborone– Botswana President, Mokgweetsi Masisi, and President, Cyril Ramaphosa, of South Africa met last Wednesday and Thursday on the occasion of the 28th anniversary of diplomatic, cultural and economic relations under the theme “Tirisanyo Mmogo”, in Gaborone-Botswana, to evaluate and enhance the levels of trade and cooperation.
Addressing the Botswana-South Africa Business Forum Round-table held Thursday, President Mokgweetsi Masisi, said his country continues to work tirelessly to improve exports to South Africa, adding that the country wants to correct imbalances in its economic relations with South Africa.
“The trade landscape between Botswana and South Africa remains skewed in favor of the latter and should drastically improve toward stabilization,” said Masisi.
Figures from Botswana’s statistical agency, Statistics Botswana, indicate that Botswana exported to South Africa goods worth 31 billion pula (about 2.5 billion U.S. dollars) while it imported goods worth 210 billion pula between 2017 and 2021.
On average, Masisi said Botswana imports 42 billion pula while exporting only 6 billion pula worth of goods per annum.
“This needs to be reversed,” said Masisi, adding that increasing exports to South Africa will result in job creation, especially for young people while also driving the much-needed export diversification to support Botswana’s aspirations of an export-led economy.
Botswana’s exports to South Africa include diamonds, beef, soda ash while those Botswana imports include cereals, vehicles, and beverages, among others, he said.
Speaking at the same event, President Cyril Ramaphosa, of South Africa said even as the two nations’ bilateral relations have grown over the years, far greater levels of trade and investment between the neighboring countries need to be seen.
The South Africa – Botswana Business Round Table was preceded by the Business Forum which enhanced linkages, trade and investment and prospective joint venture partnerships between the two countries.
President Ramaphosa welcomed the 9 FDI projects from Botswana to South Africa worth R 3,9 billion over the last decade.
“Even as our bilateral relations have grown stronger over the years, we want to see far greater levels of trade and investment between our two countries”, Ramaphosa said.
It should be noted that South Africa’s foreign direct investment stock in Botswana reached $5.1 billion last year,” President Ramaphosa said.
At the South Africa – Botswana Business Round Table chaired by the two Heads of State, business leaders from the two sisterly countries participated in identifying measures to address trade and investment barriers as well as strengthening cooperation between government and private sector in maximizing localization, export promotion efforts and industrialization.
President Ramaphosa principally agreed to a feasible joint public – private partnership investment of both governments on the 129 km Lephalale – Mamabule rail line which will enhance regional value chains.
He further called for accelerated investment in catalytic development projects particularly in infrastructure which have a positive ripple effect on sectors among them manufacturing, logistics, tourism and technology.
Ramaphosa highlighted that the Southern African region has the potential to distinguish itself worldwide as an economic bloc in multiple areas of specialisation due to its abundance of natural resources and skills.
He further expressed confidence at the Southern African Customs Union (SACU) programme of creating industrial value chains in leather and leather products, textiles, fresh produce, meat and meat products, clothing, cosmetics and essential oils.
South Africa’s President also welcomed Botswana’s declaration of opening all border posts to South Africa following the easing of COVID-19 regulations, which will speed up trade and economic recovery between the two countries.
