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Botswana lifts bans on SA vegetables

Restrictions had adverse economic repercussions in Southern African, particularly SA

 Implemented in 2022 to support Botswana’s local agricultural sector, the ban on SA vegetables has led to revenue losses for farmers who previously supplied Botswana’s market.  File photo: JEFF J MITCHELL/GETTY IMAGES
Implemented in 2022 to support Botswana’s local agricultural sector, the ban on SA vegetables has led to revenue losses for farmers who previously supplied Botswana’s market. File photo: JEFF J MITCHELL/GETTY IMAGES

Botswana’s newly elected government led by president Boko Duma has announced a phased lifting of restrictions on vegetable imports from SA expected to be completed by April 2025.

Boko ended the Botswana Democratic Party’s rule after 58 years in the election.

Implemented in 2022 to support Botswana’s local agricultural sector, the ban has led to revenue losses for SA farmers who previously supplied Botswana’s market with produce such as onions, potatoes and cabbages. The ban was recently extended to 2025, with the latest expansions to include oranges.

SA vegetable exports s to Botswana more than halved from 2021 to 2023.

According to the National Agricultural Marketing Council (NAMC), the phased approach to lifting restrictions includes an immediate removal of bans on items such as turmeric, patty pan, pumpkin, sweet potatoes, green peas, mushrooms, and eggplant. A second phase, set for April 2025, will lift restrictions on other key vegetables and fruits such as potatoes, onions, tomatoes, butternut, and watermelon.

Botswana’s import bans had significant economic repercussions in Southern African, particularly SA. Vegetable exports from SA to Botswana, which made up 15% of SA’s total vegetable exports in 2021 and were valued at R498.8m, fell to R272.4m by 2023, said the council.

Total vegetable exports fell to 2016 levels from a record high of $224.3m in 2021 to $190.4m in 2023, it said. This drop contributed to SA’s overall economic slowdown. GDP contracted 0.3% in the third quarter of 2024, with agriculture accounting for 0.7% of this reduction, said the council.

The restrictions also disrupted regional trade dynamics, undermining the goals of the Southern African Customs Union (SACU), which promotes tariff-free trade among member states.

The council said they also posed challenges to the broader ambitions of the African Continental Free Trade Agreement (AfCFTA) by impeding efforts to enhance intra-African trade.

These trade barriers strained relations in the region, and limited economic opportunities for SACU members.

We need to work continuously on strengthening regional agricultural collaboration and resist any urge to complicate trade in the region in the future.

—  Wandile Sihlobo,  Agricultural Business Chamber of SA chief economist 

In Botswana, the import restrictions affected food security and inflation adversely. The council said food costs surged, disproportionately affecting low- and middle-income households.

The food price index rose steeply from 107.2 in January 2021 to 143.1 in February 2024, while vegetable prices climbed from 129.5 in February 2023 to 142.4 in February 2024.

Meanwhile, SA farmers experienced surplus produce due to the restrictions, leading to a 4.0% month-on-month and 2.6% year-on-year drop in vegetable prices by November 2024.

The council said the decision to lift import restrictions reflected the interconnectedness of SACU member states, where SA serves as a crucial market for agricultural exports.

In 2023, SA accounted for 80% of Botswana’s agricultural exports and more than 40% of Namibia’s and Eswatini’s agricultural output, it said.

The council views Botswana’s policy shift as a positive step towards fostering regional trade and economic growth. As the continent seeks to implement the AU’s Agenda 2063, including the Comprehensive Africa Agricultural Development Programme and the AfCFTA, the council urged policymakers to adopt win-win trade strategies.

The council encouraged other SACU members such as Namibia to consider similar trade liberalisation measures to promote intra-African trade and strengthen the region’s agricultural sector. This step, it said, could pave the way for deeper economic integration and enhanced food security across Southern Africa.

Agricultural Business Chamber of SA chief economist Wandile Sihlobo said Southern African countries should prioritise regional agricultural collaboration and avoid trade-distorting measures that harmed consumer welfare.

SA, as a key producer, had to broaden its export markets, focusing on Asia and the Middle East. Namibia should lift restrictions on SA vegetable imports, following Botswana’s lead, he said.

Sihlobo said regional governments should promote knowledge sharing to enhance agricultural productivity and address trade concerns collaboratively to avoid conflicts. Strengthening regional trade and fostering open communication will boost food security and economic growth across the region, he said.

“Overall, the decision by the new leadership of Botswana to lift the ban on the imports of vegetables from SA and the speed at which this action will be taken is commendable. We need to work continuously on strengthening regional agricultural collaboration and resist any urge to complicate trade in the region in the future.”

goban@businesslive.co.za

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