Botswana gains Namibian port

Boitshepo Majube | Friday February 21, 2014 16:36

Being landlocked the agreement gives Botswana an opportunity to access the port through Namibia.  The strategic partnership would enable the country to reduce its dependence on South Africa for port services.

The most important factor for Botswana is that through the Namibian port it will be easy for transportation of goods into Botswana.  On the Namibian side goods routed to Botswana would benefit the country through employment that would be created at the port.  It would also receive much needed revenue from taxation.

The Minister of Minerals and Water Resources Kitso Mokaila hailed the agreement, saying that transportation of goods is always better if you have a port.  “Being a landlocked country is a challenge because you need the port to transport your goods,” Mokaila said, citing examples of goods such as oil.

The agreement also seeks to utilise the two countries’ natural resources by sharing infrastructure to the benefit of its citizens.  Namibia has abundant gas, while Botswana has abundant coal deposits, which are both resources that can be used to produce energy.

Despite being rich in natural resources to produce energy (power), both countries do not generate enough for their national demands.

Mokaila’s counterpart from Namibia, Minister of Mines and Energy Isak Katali stated that the agreement would help the two countries develop their energy production and meet their respective national demand. 

“It needs political commitments to encourage the private sector to take the opportunities that come with this agreement,” Katali said.  He urged the national utility firm, Botswana Power Corporation, together with its Namibia counterpart to tap into opportunities that this agreement bring about. 

Katali implored the two countries to take equity in each others infrastructure. 

“We can own this infrastructure together or share it for the benefit of the two countries,” Katali said.

With the newly born Botswana Oil in its infancy stage, Katali urged them to use this agreement to learn from its Namibian counterpart, which has been in the market longer.

Negotiations that culminated in this agreement started in 2010, with the agreement being reached last year.