Moroka calls for increased intra-African trade

WANETSHA MOSINYI
Staff Writer | Friday July 3, 2009 00:00

 

'It makes little sense for us to fight for overseas markets when we can in fact do business amongst ourselves,' Moroka said at the official opening of the exhibition of the 16th annual general meeting of the shareholders of the African Export-Import (Afrexim) Bank held at the Gaborone International Convention Centre (GICC) yesterday.

Moroka said African countries needed to open markets to each other so they got investment and help diversify the continent's economies. 

He said Africa is well endowed with natural resources but they have been over the years exported mainly in the form of commodities, without any value addition.

'The consequence of this has been lack of both industrialisation and diversification of our economies.'

The minister also warned against the continent having also relied heavily on tariff incomes. 'With the advent of tariff liberalisation, African economies are in danger of collapsing,' he said.

'It is incumbent upon us as African governments, therefore, to take responsibility for diversifying our economies by adding value to our commodities to produce finished goods that we can sell to the world markets.'

Moroka gave an example of East African countries that are major producers of coffee beans, yet none of them can be regarded as a major manufacturer and exporter of coffee.

He also acknowledged that whilst Botswana has made some progress in diversifying the economy away from dependence on the mineral sector, particularly diamonds, there is still considerable room for improvement.

'Our efforts in diversifying the economy have not borne as much fruit as we would have liked.'

He said a strong dynamic private sector is crucial for the long-term economic growth of any country.

'Over the coming years, government will place the highest priority on private sector development and economic diversification to attain sustainable rapid economic growth. It is our intention to facilitate the creation of an environment that encourages and supports business and entrepreneurial activities.'

Moroka said it is important, that governments continue to identify and remove administrative and regulatory bottlenecks, or any other constraints to private sector development.

The ultimate objective, he said, being to facilitate the growth of a private sector that is dynamic, efficient, outward-looking and internationally competitive.

The minister however acknowledged that although investment potential in some countries might be hampered by poor infrastructures, bureaucracy, labour inflexibility and to some extent, lack of political stability, 'Africa as we might all know, was the world's fastest-growing continent for foreign direct investment in 2008.  We must build on this,' he said.

Moroka encouraged exhibitors to take advantage of Botswana hosting Afrexim Bank's 16th AGM because opportunities range from identifying financing opportunities, networking and exploring and designing packages beneficial to them.