When Botswana introduced a vegetable import ban in January 2022, the government framed it as a bold policy shift to protect local farmers, boost national food security, and reduce dependency on imports. But beneath the protectionist rhetoric, a shadow market took rootโone where cartel-like practices, discrimination, and market manipulation allowed commercial farmers to exploit loopholes while sidelining informal traders.
The ban, which restricted imports of over 30 types of vegetablesโfrom potatoes and onions to tomatoes and carrotsโcreated an uneven playing field. Investigations by the Competition and Consumer Authority (CCA) revealed how commercial producers manipulated pricing and supply chains to their advantage, excluding small-scale vendors, particularly hawkers, in ways that undermined the policyโs intent and likely violated competition law.
According to the CCA, the informal sector was systematically sidelined due to the absence of inclusive safeguards. At a recent policy dialogue hosted by the Botswana Institute for Development Policy Analysis (BIDPA), Ernest Bagopi, CCAโs Director of Investigations, Policy and Research, detailed how informal traders bore the brunt of the policyโs implementation failures.
โCommercial horticulture farmers deliberately ignored supply to the local informal market, choosing instead to focus on retailers and wholesalers,โ Bagopi said.
The CCA found widespread discriminatory behaviour, with farmers denying hawkers access to higher-grade produce. While retailers placed bulk orders via WhatsApp, paid electronically, and received timely deliveries, hawkers were left to queue for daysโsometimes up to six weeksโat farm gates. Many were turned away or sold the lowest-quality vegetables, often at prices similar to premium grades.
โHawkers were not allowed to buy Grade One or Two vegetables, particularly potatoes. They were only offered Grade Three produceโoften damaged or near spoilage,โ Bagopi said. He noted that 98 percent of all complaints related to produce access during the ban were about potatoes, followed by onions.
Despite Botswanaโs laws prohibiting cartel conductโsuch as price-fixing, supply restrictions, or market divisionโthe CCA uncovered behaviour that mirrored illegal collusion. One case involved the Ministry of Agricultureโs staggered cropping strategy, designed to avoid market oversupply. In practice, this approach granted individual farmers temporary monopoly control, enabling them to set inflated prices.
โThis strategy gave commercial farmers monopoly control during their harvest windows, allowing them to charge exorbitant prices. It effectively enabled cartel-like behaviour,โ Bagopi explained.
One of the most egregious incidents occurred in early 2024 in Ghanzi. Hawkers unknowingly bought potatoes damaged by a crude frost-prevention methodโfarmers burned glass to warm crops, resulting in potatoes cooking underground. Though they appeared fine externally, the produce was rotten inside by the time it reached the market. Hawkers lost thousands of pula, were refused refunds, and had no formal channels to report the losses.
Not all regions were implicated equally. In Pandamatenga, where grain farming dominates, hawkers reportedly had better access to quality produce. But Tuli Block and Ghanzi were flagged as hotspots for discrimination. Farmers often defended their actions by citing a lack of preparation and guidance following the sudden implementation of the ban. While inspections by CCA prompted temporary compliance, violations resumed after officials left.
โThe farmers complied during inspections, but the moment we left, they reverted to their old ways,โ Bagopi said.
Ultimately, the import ban benefited commercial farmers while harming informal traders and consumers. Prices of key vegetables like potatoes and onions rose sharply, fuelling food inflation.
โWe received a lot of complaints from consumers about spiking prices when the ban began,โ Bagopi noted.
The CCA has urged the government to ensure greater institutional coordinationโespecially with agencies tasked with protecting consumers and small businessesโwhen formulating policies that impact essential supply chains.
โThis policy might have been well-intentioned, but without strategic coordination, it exposed vulnerable players to exploitation,โ Bagopi said.
โWe believe the initiative had merit. But what was needed was a robust implementation plan to close the gaps that left consumers and SMMEs vulnerable to discrimination and abuse.โ
