European Union supports AfCFTA implementation
The European Union (EU) is supporting Botswana to unleash her economic potential in line with government’s ambition to achieve a High Income Status by 2036 and to transform the country from a mineral-based economy to a knowledge-based economy.
EU Ambassador to Botswana and SADC, Petra Pereyra told the media this week that EU has been teaming up with the government of Botswana on two main priorities - to bring transformation and economic diversification, as well as job creation.
She said diversification of the economy and job creation, especially for the youth, will be crucial for further development of Botswana to increase the resilience of the economy to external shocks.
Botswana is one of EU closest partners on the African continent and has witnessed remarkable socio-economic development over the years. The EU is also Botswana’s second biggest trade partner after South Africa.
The EU in collaboration with the Botswana Investment and Trade Centre (BITC) is hosting the inaugural EU-Botswana Business Forum side by side the 17th Global Expo this week under the theme, ‘Accelerating the Implementation of the AfCFTA.’
On lessons that the African Union (AU) - custodians of the AfCFTA - can take from the established EU trade bloc, Pereyra said there are several takeaways.
Firstly, the EU is very diverse but united in diversity. But while diversity presents some challenges, there are also opportunities to be explored. The EU is diverse in terms of the size of populations of countries, economic size of individual countries, and has a variety of small economies, as well as bigger economies.
“European integration and single market, the largest in the world did not happen overnight and it is a very long process,” she said, further stating that the process started in the early 1950s after the second World War.
Another lesson from the European Union experience, is that in the first 10 years, between 300 000 and 900 000 jobs were created thanks to the single market. There was substantial increase in EU income in the first 10 years.
In addition, inflation rate in the EU has been maintained very low than it would be without the single market.
She said for smaller markets like Botswana, it is great to have an opportunity to trade within a larger market like SADC and the AfCFTA.
“That is why the Agreement is worth preserving. We appreciate the work we continue to do together with the SADC Secretariat to facilitate trade links within the SADC region. We also appreciate the fact that Botswana has joined the AfCFTA and hope to see the successful implementation of the trade Agreement.”
Pereyra said the EU has supported the AfCFTA with over EURO 74 million earlier before 2020 through the Pan-African programme. The funding has been helping with capacity building, negotiation and ratification programme of the trade agreement, as well as supporting African governments in putting the agreement into motion.
“We have an initiative with member states in supporting the implementation of the Agreement,” Pereyra said.
Meanwhile, Pereyra said they have not yet determined the length of the partnership in hosting the Global Expo in partnership with the Ministry of Trade and Industry through the BITC.
“We will have to take stock of the event afterwards to see what fruit it bears and what we can do better in the future and how we can do this in a way that it is productive and impactful as possible,” Pereyra said.
In addition, Permanent Secretary in the Ministry of Trade, Ellen Richard-Madisa explained that on an annual basis depending on a theme that is being promoted, different partners may be engaged to ensure that the theme is articulated well.
“Last year we partnered with Afrixem Bank and we know that that partnership has resulted in better things. We have further partnered with them in assisting businesses in Botswana with capacity building and funding,” she said.
Richard-Madisa added that Botswana has always partnered with the EU and the belief is that this particular partnership regarding the Global Expo is the beginning of another aspect of the relationship that will see more EU investors coming to participate in the Global Expo in the coming years.
EU Ambassador to Botswana and SADC, Petra Pereyra told the media this week that EU has been teaming up with the government of Botswana on two main priorities - to bring transformation and economic diversification, as well as job creation.
She said diversification of the economy and job creation, especially for the youth, will be crucial for further development of Botswana to increase the resilience of the economy to external shocks.
Botswana is one of EU closest partners on the African continent and has witnessed remarkable socio-economic development over the years. The EU is also Botswana’s second biggest trade partner after South Africa.
The EU in collaboration with the Botswana Investment and Trade Centre (BITC) is hosting the inaugural EU-Botswana Business Forum side by side the 17th Global Expo this week under the theme, ‘Accelerating the Implementation of the AfCFTA.’
On lessons that the African Union (AU) - custodians of the AfCFTA - can take from the established EU trade bloc, Pereyra said there are several takeaways.
Firstly, the EU is very diverse but united in diversity. But while diversity presents some challenges, there are also opportunities to be explored. The EU is diverse in terms of the size of populations of countries, economic size of individual countries, and has a variety of small economies, as well as bigger economies.
“European integration and single market, the largest in the world did not happen overnight and it is a very long process,” she said, further stating that the process started in the early 1950s after the second World War.
Another lesson from the European Union experience, is that in the first 10 years, between 300 000 and 900 000 jobs were created thanks to the single market. There was substantial increase in EU income in the first 10 years.
In addition, inflation rate in the EU has been maintained very low than it would be without the single market.
She said for smaller markets like Botswana, it is great to have an opportunity to trade within a larger market like SADC and the AfCFTA.
“That is why the Agreement is worth preserving. We appreciate the work we continue to do together with the SADC Secretariat to facilitate trade links within the SADC region. We also appreciate the fact that Botswana has joined the AfCFTA and hope to see the successful implementation of the trade Agreement.”
Pereyra said the EU has supported the AfCFTA with over EURO 74 million earlier before 2020 through the Pan-African programme. The funding has been helping with capacity building, negotiation and ratification programme of the trade agreement, as well as supporting African governments in putting the agreement into motion.
“We have an initiative with member states in supporting the implementation of the Agreement,” Pereyra said.
Meanwhile, Pereyra said they have not yet determined the length of the partnership in hosting the Global Expo in partnership with the Ministry of Trade and Industry through the BITC.
“We will have to take stock of the event afterwards to see what fruit it bears and what we can do better in the future and how we can do this in a way that it is productive and impactful as possible,” Pereyra said.
In addition, Permanent Secretary in the Ministry of Trade, Ellen Richard-Madisa explained that on an annual basis depending on a theme that is being promoted, different partners may be engaged to ensure that the theme is articulated well.
“Last year we partnered with Afrixem Bank and we know that that partnership has resulted in better things. We have further partnered with them in assisting businesses in Botswana with capacity building and funding,” she said.
Richard-Madisa added that Botswana has always partnered with the EU and the belief is that this particular partnership regarding the Global Expo is the beginning of another aspect of the relationship that will see more EU investors coming to participate in the Global Expo in the coming years.
