Botswana to reap optimal benefits from AfCFTA- Chief Negotiator

Botswana government’s chief trade negotiator, Pazha Butale is optimistic the country will reap optimal benefits from the recently signed African Continental Free Trade Area ( AfCFTA).

The country started trading under AfCFTA agreement beginning of this month, a platform expected to boost intra- African trade, promote industrialization and competitiveness as well as contribute to job creation. The development comes after President Mokgweetsi Masisi signed the agreement last February, making Botswana the 51st country to sign the pact.“The local economy is ready to benefit from the new preferences provided by the AfCFTA. “However, a lot of work still needs to be done to ensure optimal benefit for Botswana under the AfCFTA,” said Butale, the government chief negotiator.

According to trade statistics, AfCFTA covers a market of 1.2 billion people and a gross domestic product ( GDP) of $ 2.5 trillion, across all 55 member States of the African Union. Butale however said efforts have been done to develop and improve the capacity particularly of local industry to be able to compete favorably. “We are currently also working with the UN Economic Commission for Africa ( UNECA) to come up with a strategy that will aid Botswana to realize optimal benefits from the AfCFTA,” he said.

The Economic Commission for Africa and its partners consider that the AfCFTA can play a key role in accelerating Africa’s economic recovery and building back on stronger, more resilient bases thanks to the structural transformation of African economies. Butale also hopes that the agreement will give local enterprises an opportunity to benefit from inter- regional trade within the African continent, and contribute to the country’s economic growth and diversification.

AfCFTA has ambition of becoming the world’s largest trade bloc and generate a market of more than 1.2 billion consumers. Meanwhile, SACU members and Mozambique have signed an economic partnership agreement with the United Kingdom of Great Britain and Northern Ireland ( SACUMUK EPA), also expected to boost trade for the country.“We expect a growth in economic activity with fellow African states. With regard to the SACUM- UK EPA we expect at bare minimum to conserve the trade that we have been doing with the UK when it was still part of the EU. “The EPA is a roll- over of rights and obligations of the parties previously contained under the SADC- EU EPA,” said Butale.

Butale further said the highlights of the SACUMUK EPA are that it will be able to show the country how much trade the country has been doing with the UK, now that it is no longer part of the EU. “Hopefully it will also provide new opportunities which were hitherto suppressed by the UK’s EU membership,” said Butale.

The SACUM- UK EPA was entered into force on the 1st of January 2021, following the end of the UK’s transition period and the deposit of the instruments of ratification by all the Parties to the SACUM- UK EPA. According to SACU the entry into force of the SACUM- UK EPA will provide for the continuity of trade between the UK and the SACU Member States and Mozambique as the UK ceases to be a Member of the EU single market and customs union.