South Africa's trade policy must prioritize strengthening relations and expanding export opportunities, particularly in agriculture. This sector heavily relies on exports, benefiting from trade agreements negotiated by South African authorities. The Southern African Customs Union (SACU), including Botswana, Namibia, Lesotho, and Eswatini, requires attention.
In 2021, Botswana imposed a ban on South African vegetable imports, partially lifted by President Duma Boko in December. This month, Botswana plans to lift the remaining restrictions on imports of beetroot, butternut, cabbage, carrot, garlic, ginger, green melons, herbs, lettuce, onions, potatoes, sweet pepper, tomatoes, and watermelons from South Africa. This move benefits South African suppliers and Botswana consumers.
As Botswana eases restrictions, attention shifts to Namibia, which imposed similar bans to bolster domestic industries. These restrictions have created uncertainty for South African exporters, prompting discussions on reviewing SACU dynamics. However, a friendly approach is advised.
Despite challenges, South Africa benefits from the free trade area, with SACU accounting for 19% of its agricultural exports. SACU imports mainly staple grains, vegetables, and beverages, while the EU imports more fruits and wines. South Africa imports less than $1bn from SACU, primarily live animals and sugar, with Eswatini and Namibia as major exporters.
Trade disparity arises from SACU countries' limited production. Restrictive policies are not ideal for boosting production. Collaborative approaches leveraging South African technology could be more effective. SACU members should focus on scientific advancements and investments from South Africa's established agricultural value chains.
Botswana and Namibia should engage collaboratively, outlining agricultural growth areas and leveraging South African expertise. Ministries of agriculture could facilitate private sector involvement to foster cooperation.
Source: Agricultural Economics Today