According to Minister of Trade, Industry, and Competition Ebrahim Patel, Botswana and South Africa share borders, making cooperation between the two nations crucial.
“There are opportunities for both countries,” Patel said on Wednesday at a media briefing at the conclusion of the South Africa-Botswana Business Forum in Gaborone.
He said however that both countries have high unemployment challenges. “We have to resolve these challenges, we need to create millions of job opportunities for our youth. We need to complement each other,” he said.
Patel emphasised the necessity of beginning to consider how to handle the issues that both countries are currently facing.
“We need to work together. We are starting a new journey. Hopefully we will be able to address youth challenges,” he said.
The Botswana Ministry of Trade and Industry and the Department of Trade, Industry and Competition organised a High-Level Business Forum in advance of President Cyril Ramaphosa’s working visit to Botswana on Thursday, where he will facilitate discussions at the High Level South Africa-Botswana Business Roundtable.
According to Malebogo Morakaladi, who oversaw the Business Forum’s preparations, the main goal of the engagement was to give business executives from the two nations a forum to have meaningful conversations with senior government officials about removing obstacles to trade and investment and looking into ways to maximise existing trade and investment between the two nations.
The Business Forum and Business Roundtable’s primary goals are to promote business ties between the two nations in order to enable trade, investment, and potential joint ventures.
Lerato Mataboge, the dtic’s deputy director-general for trade and investment for South Africa, said the meeting is essential to fortifying links between the two nations.
“It is envisaged that the roundtable discussion [on Thursday] will provide the Heads of State with an opportunity to have in-depth engagements on issues affecting trade and investment relations between the two countries by being in conversation with strategic and select business leaders from both countries.
“The envisaged outcome is an improved economic relationship anchored by strategic investments in each other’s economies and collaborative solutions for regional growth,” she said.
The economy of Botswana is very open to commerce, with imports and exports making up more than 80% of the nation’s GDP.
It has established a number of trade agreements with other nations for market access and industrialization because of its tiny market.
The fact that Botswana is a member of SACU and has substantial trade with South Africa is crucial since it affects the country’s fortunes. With a market share of roughly 56.8% in 2021, South Africa will continue to be Botswana’s main trading partner for imports.
A unified external tariff on goods entering any of the nations from outside the SACU facilitates duty-free movement of goods, and Botswana gains from both regional economic integration and these benefits.
Such benefits and strong economic ties between the two countries make such partnerships essential for both countries.