Botswana sets course for economic diversification under the AfCFTA

8 March 2025

Botswana has embarked on the development of a National Implementation Strategy for the African Continental Free Trade Area (AfCFTA), a crucial step toward maximising the benefits of the Agreement and boosting intra-African trade.

Speaking at the National Consultative Forum for the Development of Botswana’s AfCFTA Implementation Strategy, Deputy Permanent Secretary of the Ministry of Trade and Entrepreneurship, Goemeone Mogomotsi, emphasised that the strategy comes at an opportune time to guide Botswana’s participation in the AfCFTA and ensure the country fully capitalises on the opportunities presented by the Agreement.

“The strategy will enable us to align Botswana’s areas of comparative advantage with continental demand, with the ultimate goal of diversifying our economy,” said Mogomotsi. 

He further highlighted that the strategy will explore opportunities in continental value chains to optimize trade under the AfCFTA.

The AfCFTA Agreement, signed in Kigali, Rwanda, in 2018, aims to create a single market for goods and services across Africa, progressively eliminating tariff and non-tariff barriers to enhance intra-African trade. 

It is expected to drive deeper economic integration, promote industrialisation, and support sustainable development.

The one-day Forum, hosted by the Ministry of Trade and Entrepreneurship in collaboration with the Economic Commission for Africa (ECA), sought to gather insights from multiple stakeholders to inform the development of Botswana’s AfCFTA Implementation Strategy and Action Plan. The strategy is expected to serve as a roadmap for the country’s private sector engagement, industrial expansion, and economic transformation under the AfCFTA framework.

Highlighting the significance of international trade, Mogomotsi stated:

“International trade is central to economic development. By actively participating in trade, countries can transform their economies, enhance industrialisation, create jobs, and achieve economic diversification. 

The strategy will provide a clear pathway for the private sector to seize the opportunities presented by the AfCFTA.”

To support the effective implementation of the AfCFTA, Botswana has joined the AfCFTA Guided Trade Initiative (GTI) alongside 31 other State Parties. This initiative, spearheaded by the AfCFTA Secretariat, is designed to facilitate actual trade among African countries by connecting buyers and sellers and ensuring that the Agreement is operationalised.

As part of its efforts, Botswana, through UNDP Botswana support, has assisted 15 local companies across various sectors, including agro-processing, cosmetics, and basketry, to participate in last year’s GTI event in Kigali, Rwanda. The initiative aimed to help these businesses secure contracts and position themselves as exporters under the AfCFTA framework.

“We fully recognise that reaping the benefits of the AfCFTA is not automatic. It requires deliberate strategic interventions at both the national and regional levels,” noted Mogomotsi. 

He called on Botswana’s business sector to take the lead in leveraging AfCFTA opportunities.

Speaking at the forum, Stephen Karingi, Director for the Regional Integration and Trade Division of the Economic Commission for Africa, described the AfCFTA as a transformative opportunity for Botswana and the continent at large.

“The AfCFTA is a game-changer, poised to create the world’s largest free trade area and unlock unprecedented economic potential,” Karingi remarked. 

“For Botswana, it offers a chance to diversify beyond diamonds, integrate into regional and continental value chains, and drive industrial transformation.”

Karingi urged Botswana to identify and invest in key high-growth sectors such as manufacturing, agro-processing, and services, as well as develop strategies to move up the value chain by transforming raw materials into finished products. He highlighted that the beef value chain presents significant opportunities for Botswana in this regard.

Speaking on behalf of AfCFTA Secretary-General Wamkele Mene, Gemma Matshediso Mbegabolawe, Principal Officer for Women and Youth in Trade at the AfCFTA Secretariat, commended Botswana for taking legislative and policy steps to facilitate trade under the AfCFTA.

“Developing Botswana’s AfCFTA National Strategy is critical to ensuring that the country maximises opportunities, addresses challenges, and aligns with its broader economic and trade agenda,” said Mbegabolawe. 

She underscored that Botswana’s participation in AfCFTA is not just about market access but also about export diversification, value chain integration, and inclusive economic growth.

The consultative process will continue, with further engagements planned to refine and validate the strategy, ensuring that it is well-aligned with Botswana’s broader economic aspirations before moving to full implementation.

Source: https://rb.gy/ng8s5m

1 day ago

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