Ministry of Finance Senior Policy Advisor, Keith Jefferies has warned that government’s decision to ban imports must be exercised with caution as the country is building an export led economy which requires regional integration.
In the past few years, Botswana has been periodically imposing import restrictions on certain vegetables in order to both protect and develop the domestic horticultural industry. The Ministry of Agriculture effected the ban on vegetable imports in December last year with an objective to ensure that local retailers buy from local farmers.
Speaking during the Absa Economic Forum last week, Jefferies stated that inflation is coming from cost pressures than the demand pressure. Recently, the country is experiencing high rate of increase of commodity prices, especially food and fuel due to global economic factors. However, the recent ban of vegetable imports has resulted in hiked prices with supply shortages.
“Imposing restrictions must be handled carefully because we are aiming at the export led economy and this is about regional integration.”
He pointed out that Botswana’s economic weakness is driven by dependence on diamond exports and lack of export diversification. “Exports are still highly dependent on diamonds and there is slow progress with export diversification as potential external imbalances are given little or no growth.”
Jefferies also highlighted that there is no protection of the minority groups in this commodity price increases. On his address, Minister of Entrepreneurship, Karabo Gare pointed out that government continues to make notable strides in providing a conducive investment climate through sound macroeconomic policies, legal and regulatory frameworks and strong economic and political institutions that promote Botswana as a safe and desirable investment destination.
“As a country, we have further developed and continue to develop relevant policies and strategies to accelerate and aid rapid recovery from Covid-19 as well as insulate against future fragility.”
He said the enactment of the economic inclusion bill which seeks to promote effective participation of a targeted citizen in the economic growth and development of the economy will significantly contribute to growth in government’s partnership with the private sector for further economic development.
For his part, Sub Saharan Africa Macroeconomist, Markus Riddle said African countries need to capacitate their citizens first when they come up with import ban statutory instruments. “Some African countries like Ghana and Nigeria had imposed some restrictions but we saw that in seven year period they are still importing food because their citizens' produce could not meet the consumer demand.”
In the past few years, Botswana has been periodically imposing import restrictions on certain vegetables in order to both protect and develop the domestic horticultural industry. The Ministry of Agriculture effected the ban on vegetable imports in December last year with an objective to ensure that local retailers buy from local farmers.
Speaking during the Absa Economic Forum last week, Jefferies stated that inflation is coming from cost pressures than the demand pressure. Recently, the country is experiencing high rate of increase of commodity prices, especially food and fuel due to global economic factors. However, the recent ban of vegetable imports has resulted in hiked prices with supply shortages.
“Imposing restrictions must be handled carefully because we are aiming at the export led economy and this is about regional integration.”
He pointed out that Botswana’s economic weakness is driven by dependence on diamond exports and lack of export diversification. “Exports are still highly dependent on diamonds and there is slow progress with export diversification as potential external imbalances are given little or no growth.”
Jefferies also highlighted that there is no protection of the minority groups in this commodity price increases. On his address, Minister of Entrepreneurship, Karabo Gare pointed out that government continues to make notable strides in providing a conducive investment climate through sound macroeconomic policies, legal and regulatory frameworks and strong economic and political institutions that promote Botswana as a safe and desirable investment destination.
“As a country, we have further developed and continue to develop relevant policies and strategies to accelerate and aid rapid recovery from Covid-19 as well as insulate against future fragility.”
He said the enactment of the economic inclusion bill which seeks to promote effective participation of a targeted citizen in the economic growth and development of the economy will significantly contribute to growth in government’s partnership with the private sector for further economic development.
For his part, Sub Saharan Africa Macroeconomist, Markus Riddle said African countries need to capacitate their citizens first when they come up with import ban statutory instruments. “Some African countries like Ghana and Nigeria had imposed some restrictions but we saw that in seven year period they are still importing food because their citizens' produce could not meet the consumer demand.”
