BUSINESS • volatility in the market . Senosi pointed out that in 2023 Botswana imported more than it exported , resulting in a negative balance of payment with little manufacturing taking place , and given the variety of imports this represents enormous opportunities for import substitution .
Top imports include diamonds ( 15 %), fuel , electrical products , machinery – mostly used in mining , food and beverages . Although Botswana is the largest producer of gem diamonds by value in the world and second by value , the aggregation of all De Beers Group mined diamonds are consolidated and sold from Botswana , and hence the diamond imports .
Bobo Senosi , director International Business – RSA at the BITC .
Senosi explained that multi- and bi-lateral agreements help to mitigate the economic effects of a small population of around 2.3 million , enabling market access to millions of additional consumers and reducing trade tariffs and other barriers to trade .
Botswana is a member of SADC ( offering access to in excess of 290 million consumers ); the Southern African Customs Union ( SACU where fellow members South Africa , Namibia , Lesotho and eSwatini enjoy duty- and quota-free access to 61 million consumers ); SACU- EFTA ( offering a free trade agreement between member states of the European Free Trade Association – Norway , Iceland , Switzerland , Liechtenstein and SACU ) and SACU-MESCOSUR ( preferential trade agreements with SACU and the South American Customs Union comprising Argentina , Brazil , Paraguay and Uruguay ). Botswana is also an AGOA beneficiary ( enabling export up to 6000 product lines , duty and quota free to the US by a single company ).
Furthermore , a Botswana-Zimbabwe bi-lateral trade agreement stipulates those goods with minimum 25 % local content from either of the countries be exempted from customs duties . The country is also part of the AfCFTA and EU-SADC EPA offering market access to all countries in Africa ( a population of about 1.3 billion ) and duty and quota free market access to the European Union , respectively . Senosi added , “ In terms of taxation agreements – 21 double taxation agreements are in full force and effect . Four that have been concluded and are ready to be signed with another four that are currently being negotiated between Portugal , Singapore , Qatar and Germany , while we have ratified with Belgium , Kenya , Malawi .”
He added , “ Through initiatives such as this seminar , we hope that investors will come to Botswana and produce from Botswana to assist us to import substitute ,” explaining that the BITC ’ s Business Intelligence Team in Botswana offers investors a market intelligence tool called the International Trade Center tool . Using the tool , based on the comparative and competitive advantages of countries , one can deduce what further trade potential lies between countries . At the time of writing , the tool suggested that there is more potential to export diamonds , wiring harnesses for motor vehicles , live animals and the sodium carbonate , which is a derivative of soda ash to South Africa , while South Africa has the potential to export more diamonds , since they are aggregated in Botswana , more motor vehicles , more maize , cement and beverages .
Watch this space for Navigating opportunities in Botswana ’ s evolving mining ecosystem trajectory ( Part 2 ) in African Mining incorporating Mining Mirror ’ s forthcoming issues . •
References :
1 . Innovative Entrepreneurs is a registered South African non-profit company founded to increase the momentum of social economic development in Africa and to create market access opportunities by bringing together like minded representatives from the private sector , government , civil society and communities . Arlene Wilson-Max , director , Innovative Entrepreneurs ( arlene @ innovative . org . za ).
2 . Forvis Mazars in Botswana was founded in 1981 , it boasts a team of 275 professionals and a presence in 8 locations nationwide . It is one of the country ' s largest audit and accounting firms and its extensive experience in the mining and related sectors includes navigating complex regulatory environments and optimizing financial strategies for clients .
3 . BITC assists local and foreign investors – facilitating business processes to explore Botswana ’ s enabling business environment and helping local businesses become exporters .
4 . Welcome remarks by HE Sanji Monageng , High Commissioner of the Republic of Botswana to South Africa at the Botswana Country Focus Seminar at the Forvis Mazars office , Johannesburg . September 2024 .
5 . At the time of the Seminar in September 2024 .
Through initiatives such as this seminar , we hope that investors will come to Botswana and produce from Botswana to assist us to import substitute . www . africanmining . co . za African Mining Publication African Mining African Mining • February 2025 • 25