Botswana fuels trade war with SA

Botswana has imposed yet another ban on agricultural imports from SA, this time on oranges.

Effective from June 17 to the end of August, the temporary ban has been enforced by Botswana’s agriculture ministry to support local farmers and stabilise the market.

The move is part of a broader strategy aimed at achieving self-sufficiency in food production, a goal that has seen Botswana extend and expand restrictions on various fresh produce imports until the end of 2025.

Their ministry urged businesses to source oranges locally from the Tuli Block, emphasising the importance of sustaining Botswana’s agricultural sector. Authorities have been tasked with closely monitoring the production situation to ensure the initiative’s success.

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This ban on SA oranges is not an isolated incident; it follows a series of restrictions that include vegetables such as sweet potatoes and mushrooms.

These measures could negatively affect SA’s export revenue, job market and vegetable prices. SA farmers, previously supplying about 80% of Botswana’s food before a two-year ban implemented in January 2022, have previously argued that the bans violate the Southern African Customs Union (Sacu) agreement.

Botswana, however, sees the situation differently. The government argued that these measures are essential for protecting nascent industries and promoting economic self-sufficiency.

In Botswana’s state of the nation address in 2023, President Mokgweetsi Masisi noted that the import ban had slashed Botswana’s fresh-produce import bill by 71%. That reduction underscores the financial and economic motivations behind the policy.

For Botswana, boosting local agriculture, reducing dependency on imports and improving the livelihoods of its farmers are paramount.

However, economist Wandile Sihlobo has criticised the prolonged bans on SA vegetable imports by Botswana and Namibia, arguing that they undermine regional agricultural co-operation within Sacu.

Sihlobo acknowledged that these actions, aimed at bolstering domestic production, were technically permissible under Sacu’s Article 18 (2), which allows import restrictions for reasons such as national security.

However, he pointed out the substantial financial harm inflicted on SA farmers, and called for a balanced response that considered the interconnectedness and mutual dependency within the Southern African region.

Sihlobo has advocated for improved communication and co-operation to avoid perpetual hostility. He suggested that Botswana and Namibia clearly outline their plans and timeframes for import restrictions, allowing SA farmers to better plan their exports.

He highlighted the potential for positive spillovers, where SA agribusinesses could support agricultural growth in Botswana and Namibia by supplying farm inputs and technologies.

Ultimately, Sihlobo called for a revival of regional co-operation and shared prosperity in agriculture, leveraging SA’s capabilities to benefit the entire region.

“The response will need not be antagonistic or arrogant but rather understand Botswana and Namibia’s aspirations, formulate pathways of coexistence and better communication of policy approaches within the region. Having hostile neighbours will not benefit any of these countries’ citizens. After all, the people primarily want affordable, accessible and safe food,” he said.

GobaN@businesslive.co.za