Gov't expands infant industry protection measures
Lewanika Timothy | Monday March 9, 2026 09:31
Thermal paper, shade nets, and surgical masks have now been added to the growing list of industries protected under Botswana’s trade protection framework. Importers seeking to source these products from outside the country will face higher tariffs as the government attempts to shield emerging local manufacturers from established foreign competitors.
The expansion follows months of negotiations within the SACU bloc, where Botswana required the consent of member states before implementing the measures. Tabling his ministry’s budget before the Committee of Supply recently, Minister of Trade and Industry Tiroaone Ntsima said the process had taken longer than anticipated because of consultations with other member states, with obvious objections from large-scale producers of these materials, like South Africa
“Additionally, implementation of Infant Industry Protection for thermal paper, shade net,s and surgical masks was delayed by protracted consultations with SACU Member States, exposing these industries to continued existential threats.”
“I am pleased to inform you that the Government has introduced infant industry protection measures to safeguard these industries against established competitors while they grow and mature,” he said.
Infant Industry Protection is a trade policy instrument that allows Botswana to impose temporary tariffs or quantitative restrictions on imports in order to give domestic firms time to establish themselves in the market. The measures are permitted under the SACU Agreement but are intended to be temporary and subject to periodic review.
Over the years, Botswana has applied the policy to several sectors, including dairy products, poultry, and certain manufactured goods, as part of a broader strategy to stimulate domestic production and reduce reliance on imports.
However, the country’s continued reliance on these measures has increasingly drawn criticism from some regional industry groups, particularly in South Africa, which supplies the bulk of manufactured and agricultural goods into the Botswana market.
South African dairy producers have been among the most vocal critics of the policy. They have previously shared that Botswana’s prolonged use of protectionist measures in the dairy sector has effectively limited South Africa’s ability to expand exports into the country.
Similar tensions have surfaced in other agricultural sectors. South African producers have in recent years raised concerns over Botswana’s restrictions on vegetable imports, arguing that the measures disrupt established supply chains and create uncertainty for exporters operating within the SACU market.
From an economic perspective, infant industry protection policies are widely used by developing economies seeking to nurture domestic production capacity. The central idea is that young industries require temporary protection from larger and more efficient foreign competitors until they are able to achieve economies of scale and compete independently.
Within the SACU framework, the growing use of protectionist measures also raises broader questions about the balance between industrial policy and regional integration. Botswana is one of the largest beneficiaries of the SACU revenue-sharing arrangement, which distributes customs and excise duties collected across the bloc.
Trade disruptions that reduce cross-border flows can potentially affect the overall customs revenue pool, which remains a significant source of government income. For Botswana, SACU receipts are the single largest contribution to the government's coffers as revenue, making the stability of the regional trade system critical for public finances.
Even so, authorities argue that selective protection remains necessary if the country is to develop domestic industries and reduce its dependence on imports. The latest additions to the IIP list signal that the government is prepared to continue using the policy as a tool for industrial development, even as debate intensifies within the region over the long term implications for trade within the SACU bloc.