EU-Botswana Business forum to boost weak, undiversified trade relations
The co-hosting of the 17th edition of the Global Expo Botswana with the inaugural EU-Botswana Business Forum (EBBF) this week is expected to enhance efforts towards the actualisation of the EU-SADC Economic Partnership Agreement (EU-SADC EPA).
The events are co-hosted by Botswana Investment and Trade Centre (BITC) and the European Union (EU).
The Agreement (EU-SADC EPA) was signed in June 2016, with the EU embarking on helping SADC countries to implement it by availing EURO 6 million to enhance the capacity of Botswana’s public and private sector to reap the benefits of the Agreement.
According to Trade and Industry minister, Mmusi Kgafela, EU-SADC EPA support programme was officially launched in 2021 and will run until July 2024. “The EU-Botswana Business Forum was born out of this support programme,” Kgafela said this week when welcoming delegates to the four-day event.
The main objective of the EU-Botswana Business Forum is to promote trade and investment, and relations between EU and Botswana through several dialogues to be held this week.
“We are optimistic that we will be able to present compelling, value propositions to EU companies that have graced the Business Forum and Global Expo,” Kgafela said, adding that Botswana is ready to receive Foreign Direct
Investment (FDI) from Europe and across the world.
Kgafela is hoping that in the duration of the Business Forum and Expo that ends on Sunday, there will be long-term investments and partnership deals. Currently, trade and investment relations between Botswana and the EU
remains weak and undiversified.
According to the Trade Minister, in 2022, Belgium was the only European country in the list of the top export destinations for Botswana. Trade with Belgium accounted for 18.7 percent of total exports, with the main product being diamonds.
“On the investment side, Europe remains the key partner for Botswana and in 2021, Europe accounted for 57.1 percent of stock of FDI of which mainland Europe contributed 47.9 percent,” he said, further assuring European investors that Botswana has favourable investment climate with the highest credit rating in Africa of BBB+ Ratings accorded by the Standard and Poor’s, and a A3 Rating from Moody’s Investor Services.
Kgafela told delegates that Botswana continues to improve the business environment to align it to private sector needs.
“Seriously consider investing in Botswana. Take advantage of the opportunities presented by the many trade agreements Botswana is a party to, including the African Continental Free Trade Area (AfCFTA). This is tempting because it covers the whole of Africa,” he said, adding that Botswana avails herself as the launch-pad of the AfCFTA market and beyond.
When officiating at the Global Expo that is held under the theme, ‘AfCFTA as a springboard to intra-Africa trade,’ President Mokgweetsi Masisi said the Business Forum and Expo comes after the successful hosting of the 15th US-Africa Summit that was hosted in Botswana in partnership with the Corporate Council on Africa (CCA).
Further, that these efforts demonstrate Botswana’s aspirations to transform into a regional hub for investment and international trade, as well as Meetings, Incentives, Conferences and Exhibitions - commonly referred to as MICE.
The President aid Botswana is intentional to maximise on opportunities presented by positive bilateral and multilateral relations to broaden key socio-economic developmental areas such education, health, finance and other priority sectors.
He said the African Union (AU) has declared 2023 as the year of ‘Accelerating the Implementation of the AfCFTA’, following the ratification of the Agreement by close to 90 percent of all AU Member States.
“It is befitting that the theme of this year’s Global Expo Botswana resonates with the continental declaration. The main aim of the declaration is to create a single African market for goods and services, and further promote economic integration and development across the continent in line with the continental flagship project of Agenda 2063,” he said.
He added that the immediate opportunity offered by the Global Expo platform, is that it offers prospects for strong future bilateral, as well as continental partnerships.
“Such partnerships, if properly harnessed, stand to be very instrumental in addressing the critical shortages we face regarding specific economic enablers for the movement of goods and services.”
President Masisi also believes that the economic enablers of interest to harness for sustainable economic development include, suitable road networks, railway lines, airports as well as the necessary digital infrastructure to enable connectivity that is required for innovation and knowledge-based industries to thrive and have impact.
“What is critical at this point, is for our Governments, Botswana included, to align all the institutional machinery we have available; progressively rationalise all policies and strategies of development, or develop new ones; the aim being to nurture and favour this intended acceleration and transform Africa into the global powerhouse of the future that we all want,” he said.
Further that in Botswana, government has already initiated a Transformational Agenda aimed at breaking current growth barriers; removing economic hurdles; and building momentum towards the country’s goal of achieving a high-income status by 2036.
The reforms in place include, among others, implementation of Value-Chain Development across sectors with a view to unlock opportunities for new, high growth industry operations.
In addition, Digitisation is also believed to have immense potential to enable high productivity among citizens, especially women and youth, who are regarded as the engine of small and medium enterprises across multiple sectors.
Masisi added however, that digitisation is not only an economic tool, but also a means of fostering active and responsible citizenship through availing various forms and sources of information, knowledge, and do-it-yourself skills that engender self-efficacy and capacity for networking in community development initiatives, among other things.