Vegetable ban costs local businesses
Private businesses have appealed to the government to consider a phased approach on the vegetable import ban as their businesses have been negatively affected by the ban due to its hasty implementation.
Presenting the study findings of the investment climate in Botswana, an independent consultant, Dr. Monnane Monnane indicated that the private sector welcomes and appreciates most business reforms implemented by government but more needs to be done to avoid unintended negative outcomes.
“The industry recommends that government should consider a phased approach to import restrictions and the regulatory impact assessment."
He revealed that some investors have disclosed that they have lost over 32 million in one year due to the import restrictions. “Investors appreciate the decisions but we are saying that there is a need for regulatory impact assessment before imposing the restrictions."
Speaking during the Investment forum organised by Business Botswana last week Dr. Monnane highlighted that there is a need for consultations on some trading laws such as the alcohol levy.
Some enterprises run their businesses through franchises where the franchiser requires certain standards and a way of conducting business in order to protect their names in all these enterprises. “So the recommended government approach fails to meet the standards of these franchisers. There is a need for consultations with businesses.”
In her remarks during a panel discussion, a representative from the Ministry of Trade and Industry pointed out that the import restriction was promulgated by the Ministry of Agriculture and her ministry was compelled to act on what was already enforced. “I can just say we acted out of fear of unknown because we were influenced by what happened during the outbreak of the Covid-19 pandemic where the borders were closed and we had shortage of goods because we relied too much on imports. This law was rushed to prepare ourselves for the worst scenarios."
For his part, Minister of Trade and Industry, Mmusi Kgafela said government is committed to play its role of facilitating a good investment climate and attracting foreign direct investment. “We know that huge inflows of investment into Botswana combined with domestic investment form the basis for economic growth and job creation.
These together are to contribute to the aspirations of being a high-income country with an export-led economy,” said the minister, further noting that the world has become so competitive such that what used to be the selling points, is no longer appealing to investors hence there is need to change tactics to remain globally competitive.
“We cannot therefore relax when other economies leapfrog us. We need to continuously work on our competitiveness policies and strategies to remain internationally competitive and attractive to both domestic and foreign direct investment,” Kgafela said.