Southern Africa has experienced agricultural trade friction in the past few years after Namibia and Botswana placed a ban on imports of SA vegetables and citrus. The rationale expressed by officials of both countries was that the import ban ensured that their domestic producers were not exposed to SA competition, giving them space to rebuild production capacity to promote self-sufficiency.
These countries fall under the Southern African Customs Union (Sacu) and such policy positions are outside the spirit of free trade. While SA fruit exports could be redirected to other markets worldwide, the vegetable industry had to bear significant financial fallout due to the reduced regional demand.
Beyond the trade restrictions being outside the spirit of the customs union, Botswana and Namibia also have limitations regarding their potential ability to produce sufficient high-quality vegetable products. There have thus been reports over the years of food inflation challenges in these countries.
SA did not react with countermeasures to the bans. We believe the major objective should always be to enhance regional agricultural production and discourage the fragmentation these bans cause.
With a new administration in place in Botswana under President Duma Boko there is an opportunity to reverse the prohibitions of the previous administration and encourage stronger regional agricultural production and trade. The priority should be to ensure that the people of Botswana can access high-quality agriculture and food products.
In the medium to long term the focus should be on satisfying Botswana’s ambition of increasing its domestic production — where land capabilities permit. However, domestic ambitions should not trump the need for a regional agricultural approach. Botswana could benefit from some of SA’s technologies to improve its agriculture.
We already have cases of countries in the region that benefit from SA’s agricultural technologies. A case in point is the citrus industry, where research that is carried out primarily in SA is shared with all members of the Citrus Growers Association of Southern Africa. On the other hand, SA has imported some vaccines for the livestock industry from Botswana in the past few months.
This example shows that co-operation is the best path to effective regional agricultural development. The approach from each country should be to communicate its ambitions and not resort to trade-distorting mechanisms that undermine consumer welfare.
Equally, as a significant agricultural producer in the region, SA should seek to broaden export markets in other areas, such as Asia and the Middle East, to benefit the whole of Southern Africa.
Efforts to grow exports in the coming years should focus on the Middle East while maintaining access to existing markets. Southern African countries are working to expand their agricultural production, so SA must focus on broadening access to new regions with potentially more robust demand. But this will not be an overnight effort, especially in the current climate of trade fragmentation.
In essence, the Southern Africa region has an opportunity to reset its agricultural trade and production collaboration. The new administration in Botswana should ideally remove the ban on vegetable and fruit imports to ease domestic food inflation concerns.
A similar approach from Namibia is critical. After that, the ministers of agriculture in the region should encourage knowledge sharing among agricultural stakeholders so the countries that intend to boost their production in the coming years can easily access the best technologies and know-how.
If any Sacu countries believe their agricultural industries are being compromised by exports from SA, there should be clear communication about such a matter so the exporters can be given time to provide space for domestic supplies. Agricultural collaboration in the region could have been achieved without the confrontation that has taken place.
SA, as a large agricultural producer, should start the conversations with the governments of Botswana and Namibia. The departments of trade, industry & competition and agriculture must be at the forefront, supported by the department of international relations & co-operation.
• Sihlobo is chief economist at the Agricultural Business Chamber of SA and an extraordinary senior lecturer in Stellenbosch University’s department of agricultural economics.
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