Botswana is yet to rip the full benefits of the restrictions on imports of some agricultural products imposed last year as the national output has remained stagnant.
In 2023, the agriculture sector contributed just two percent to the GDP, a slight increase from 1.76 percent the previous year.
This is despite the government putting in place measures and policies aimed at ensuring food security, such as the ban on the importation of certain fresh produce.
The ban on the importation of fresh produce, which included a host of vegetables like tomatoes, potatoes, onions and other produce, was set to expire in December 2023, but was extended to the end of 2025, with the government expanding the list to include cucumber, asparagus and lettuce among others.
However, despite these protectionist measures, as well as many others in the other sub-sectors, observers argue that this has not yet brought desired results.
Protectionism is viewed negative in economic policy as it implies a desire to limit international trade to focus on domestic growth. Put more bluntly, it wants to close doors. The rhetoric of protectionism might sound tough, but the reality is that the strategy is used when a country is struggling, according to a top US economist.
In its quarterly review for Q1 2024, Econsult, a local economic think tank, argued that while there is a high-level commitment to pursue export-led growth, as is essential for a small open economy, too many policies have been focused on inward-looking protectionism.
Econsult, led by Dr. Keith Jefferis, stated that this has had the opposite outcome and leads to higher prices and decreased efficiency and competitiveness.
Figures indicate that the agriculture, forestry and fishing industry went up by 1.3 percent in real value added during the first quarter of 2024, relative to an increase of 1.6 percent registered in the same quarter of 2023.
According to Statistics Botswana data, the overall performance in real value added of crop farming andhorticulture and livestock farming was 1.6 and 1.4 percent,respectively and was mainly due to the decrease in average rainfall and increase in average temperatures experienced during the quarter.
The decrease in the livestock farming sub-industry is attributed to fewer cattle marketed during the quarter under review.
Cattle sold to Botswana Meat Commission (BMC) registered a decrease of 20.3 percent.
Last year, the government allocated P1.09 billion to the Ministry of Agriculture, with bulk of which was earmarked for the final phase of the Integrated Support Programme for Arable Agriculture Development (ISPAAD) as well as the preparatory activities of its successor programme, Temo-Letlotlo.
But even as the sector’s contribution remains marginal, Head of Business Banking at Absa Bank Botswana, KeletsoSetimela, insists these efforts are bearing fruits, and that this will soon reflect in the contribution of agriculture to the GDP.
“The contribution of primary agriculture to the GDP is around 3 percent and in our view the efforts to diversify the economy with agriculture are bearing fruits as we have seen more farmers increasing their production hence reducing imports of the fresh produce,” Setimela said in an interview.
“As expected, you would not see a significant jump as farmers are also building capacity to live up to the demand.”
Setimela believes the restriction of importation of fresh produce which was designed to promote the commercialisation of agriculture and assist in reducing food reliance of the country on imports, has resulted in stimulating the economy as more people are venturing into agriculture covering the small, medium and large farmers.
“It is worth noting that this initiative will take some time as farmers are also adapting to the demands and we have seen farmers adopting new farming approaches including use of green houses, shed nets, irrigation and an improvement in the overall farming methods,” he explained.
“The farmers are now able to supply the vegetable that in the past were being imported.”
Even as the numbers still remain low, Setimela noted that it is important to reflect and understand the rationale behind this move by the government.
“Food sufficiency is at the core of this move,” he said.
“Additionally, prior to this move the portion on the horticultural produce on the import bill was significant hence there are clear positive moves that have resulted from this.”
One of the outcomes from this move is the creation of a stable market for the local farmers to increase their capacity with the knowledge that there will be a market for the products.
“As an economy, we can channel our foreign currency to other areas as we have no need to import those items that we can produce locally,” he said.
“Now with Citizen Economic Development Agency (CEDA) setting up the horticultural market, it will even strengthen the farmers to produce more knowing the market is readily available.”
Setimela said while the restriction on the importation of fresh produce has benefitted local producers, he pointed out that naturally, it is expected that this initiative by government will get some push back from other stakeholders.
“As a bank we are playing our part through funding farmers in the horticultural sector and our commitment to this sector is unwavering.”
An economist who spoke to The Business Weekly & Reviewsaid it is unfortunate that government efforts have coincided with the drought.
“The drought is not helping the situation,” he said.
Another key challenge he mentioned is the market infrastructure, including transportation of produce to the market.
“We also have issues of major retailers having their own farms which push local producers out of business,” he said.
Moreover, he called for improved communication from authorities with the farmers.
“Post the drought we should see improved coordination, because this is an important sector that can grow.”
