Q: With the implementation of preferential trade under the AfCFTA agreement becoming a reality for Botswana starting from April 1, 2024, what implications does this development hold for your association?
A: The AfCFTA simply means easier access for our membership companies into the African market. This is propelled by the low cost of market entry as there will be reduced tariff rates.
Q: How do you perceive the impact of AfCFTA on Botswana’s exporters and manufacturers?
A: The expectation is simply that our local companies gain a sizeable portion of the African market, retain the market, expand business and contribute towards employment creation. The AfCFTA is aligned with the nation’s trade objectives and Vision 2036, of becoming an export-led economy. The onus lies with both state and private sector parties to ensure the full utility of the continent-wide agreement.
Q: What opportunities do you envisage for Botswana’s exporters and manufacturers under the AfCFTA?
A: The opportunities for manufacturers to gain market for their products elsewhere, increase sales and ensure the sustainability or rather continuity of their operations as their basket would be wide-spread.
Q: What challenges do you envisage under AfCFTA?
A: Financing options and inadequate incentives. There is a need to comprehend the status of the business landscape in Botswana, the nation is mostly comprised of Small and Medium Scale companies and therefore most of the financial services offered locally seem to not be inclusive or rather convenient for them, owing to hefty security requirements. .
Q: How will AfCFTA enhance the competitiveness of Botswana’s export and manufacturing sectors?
A: The prime area that is poised to enhance competitiveness is that of niche markets and indigenous products. Directly competing in markets that other countries such as South Africa have fared well in may not be sustainable for our nation, as there would be a market resistance that would be implications of higher losses.
Q: Will it improve market access for Botswana’s products within Africa?
A: The AfCFTA is not a tool for improving access for Botswana products, but simply an end goal. This means duties are bound to state actors to facilitate the private sector to trade well with our African counterparts on an even playing field and push for key stakeholders to establish the commitment to ensure the agreement is fully utilized, for instance, there may be a need for incentives and a push for banking institutions to improve efforts in this regard. The government should ensure there is proper facilitation, provision of incentives and sensitising financiers on the need for industry support services geared towards the full utility of the AfCFTA.
Q: What should Botswana’s exporters and manufacturers do to maximise the benefits of AfCFTA?
A: Just like any other foreign market, we ought to understand that such markets have their own unique set of requirements beyond the liberal-trade nature of the agreement and special efforts such as market research should be made. Market research will help inform product standards, quality, market trends etc.
Q: Is there any support BEMA is providing to help members navigate AfCFTA-related opportunities and challenges?
A: We already have programs to enable our members to tap into markets such as South Africa, and programs in collaboration with other trade support institutions. We also intend to broaden our approach to more African nations.
Q: Are there any specific policies or initiatives you would like to see implemented to facilitate trade under AfCFTA?
A: It would be thrilling to witness the conception of programs for small and medium-scale companies geared towards primarily tapping into the African market where provisory training and partial or full funding would be rendered.
Q: How would you measure AfCFTA’s success?
A: The success of the AfCFTA will be depicted by data and figures, sales and revenue from focus-African markets and not just a widespread and hypothetical analysis. A three-year duration period should be sufficient to determine success, where on an annual basis, evaluations will be made to ensure members are not being deprived of the promised prospects of the AfCFTA market.
