Botswana lifts vegetable import restrictions, signalling a new era for South African trade

Botswana was immediately lifting import restrictions on vegetables from South Africa.Picture: Courtney Africa / Independent Newspapers

Botswana was immediately lifting import restrictions on vegetables from South Africa.Picture: Courtney Africa / Independent Newspapers

Published Dec 20, 2024

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Botswana’s newly elected government under President Duma Boko has officially lifted its import restrictions on vegetables from South Africa.

This decisive move is expected to revitalise trade routes that have been affected by previous policies and enhance food security within Botswana’s borders.

The National Agricultural Marketing Council (Namc) yesterday heralded this decision as a pivotal moment not only for Botswana but for the agricultural economy of South Africa as well.

According to Namc, the restrictions had previously caused a significant dip in South African vegetable exports to Botswana—falling from $33.8 million in 2021 to just $14.7m in 2023.

In a statement, Namc said a key feature of the Southern African Custom Union (SACU) is the application of a single tariff regime, that is, the common external tariff (CET).

“This means the member states form a single customs territory which provides for a free movement of goods where tariffs and other barriers are eliminated on all trade between and amongst them,” Namc said.

“The CET applies to goods imported from all territories that are not members of SACU; and potential inability for SACU as block to fully exploit trade opportunities that accrue and emanates from the Africa Free Trade Continental Agreement.”

The adverse impact of these regulations was stark; vegetable exports across the board plummeted from a record high of $224.3m in 2021 to $190.4m just two years later.

Botswana is known to be a crucial market for South African vegetables, accounting for up to 15% of total exports in 2021. The restrictions imposed in recent years have not only disrupted trade but have also exacerbated food insecurity issues in Botswana, threatening the fragile local food systems and raising inflation levels for staples like vegetables.

As announced, the lifting of the ban will occur in two phases. The first phase, effective immediately, allows for the import of various vegetables such as turmeric, patty pan, pumpkin, sweet potatoes, green peas, mushroom, and eggplant.

The second phase, scheduled for April 2025, will expand this list to include popular crops like beetroot, butternut, onion, tomatoes, sweet pepper, potatoes, and watermelon, which are vital to meeting local demand and stabilising prices in both countries.

Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), expressed optimism about the implications of this policy shift.

Sihlobo said the new administration under President Boko wanted to ensure that the people of Botswana had access to high-quality agriculture and food products.

“The people of Botswana will now have access to better-priced and high-quality vegetables from South Africa. In November 2024, South Africa’s vegetables were deflated (-2.6%),” Sihlobo said.

“Meanwhile, in Botswana, vegetable price inflation was still in double digits. This speaks to the difficulty the households had to ensure and the potential benefits of affordable prices in the coming months.”

Sihlobo said he was acutely aware of Botswana’s ambition to boost agricultural production where land capabilities permit, which must be supported.

However, he said there were better ways of improving domestic production without banning imports from South Africa, adding that a similar undertaking from Namibia was critical.

“I think Botswana could benefit from some of South Africa’s technologies to improve its Agriculture,” he said.

“Namibia still has various restrictions on South Africa’s vegetable imports. They must follow Botswana’s policy approach and lift the restrictions on vegetable imports from South Africa. This will also be ideal for the consumers in Namibia.”

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