‘Access to AfCFTA market open to private sector’

The private sector will be able to trade under the Africa Continental Free Trade Area’s (AfCFTA) market from 1st of April, following the gazetting of the Southern African Customs Union Tariff Concessions under the AfCFTA. The objective of the AfCFTA is to boost intra-Africa trade by eliminating barriers to trade particularly in value-added production and trade across all sectors of Africa’s economy. Minister of Trade and Industry, Mmusi Kgafela said government is at the final stages of gazetting SACU Tariff Concerns. “This means that as of 1st April 2024, Botswana’s private sector will be able to access the AfCFTA market of 1.3 billion people.” According to the AfCFTA trading guidelines, Botswana’s trade with SACU and SADC member states will continue under existing regimes when trading begins. SACU has a common external tariff and a common customs territory which does not have customs duties on intra-SACU trade.

To protect the integrity of the customs union, SACU member states have made a collective offer of tariff concessions in the AfCFTA. Botswana will continue to trade in goods, with other SACU member states under SACU rules. Kgafela said to support implementation; Botswana is developing a National AfCFTA Implementation strategy in partnership with the United Nations Economic Commission for Africa (UNECA). The strategy aims at identifying opportunities and ways for the private sector to capitalise on the Agreement through regional value chains and cross border trade.

The strategy is expected to be completed by June this year. Botswana ratified the AfCFTA in February last year, joining the Guided Trade Initiative platform with 30 other states to fast track trade and connects buyers and sellers. Botswana’s trade with other African countries currently stands at 17 percent with main markets being southern African countries. The country’s exports are mostly diamonds with more than 60 percent of total exports, followed by copper and nickel, beef and textiles. Minister of Finance, Peggy Serame said Botswana Exporter Development Programme (2020 - 2024) will continue to build the capacity of the local private sector to produce goods and services that are competitive in international markets.

“Government will undertake a comprehensive review of business support products and funding models with a view to provide innovative and tailored financial solutions for the private sector to address the current implementation challenges, emerging issues and gaps that affect businesses at different stages of development.”