SA threatens to divert P800m cross-border trade

MONKAGEDI GAOTLHOBOGWE
Staff Writer | Friday June 11, 2010 00:00

Botswana's businesses that rely on the long trans-boundary trade at Kazungula border post in the northwest and Martins Drift border post in the east are anxious after receiving a memorandum last week warning them of South Africa's intention to divert the P800-million a year trade to Zimbabwe's Beitbridge border post. Anxious traders see the rather underhanded move as an attempt by South Africa to boost Zimbabwe's ailing economy at the expense of Botswana. The sting of the unilateral move is also in the manner of its delivery: South African authorities bypassed the Botswana government and dropped the bombshell on traders.

Only last minute intervention by Botswana authorities over the weekend made South Africa withdraw the memorandum, but suspicious traders are convinced South Africa is keen to divert the business to Zimbabwe.

Mmegi is informed that stakeholders who had an urgent meeting with Beitbridge border post officials on Monday were told by a South African Revenue Services (SARS) branch manager at the border post, Thembi Vilakazi, that the best she could do was extend the deadline of July 3 by a month or so.

'However, she did say that her headquarters had told her the issue had stirred negative reactions from other stakeholders,' said one stakeholder who attended the meeting that lasted six hours. 'I assume she was referring to the Botswana government.'

The Martins Drift border post - which acts as southern Africa's gateway to Africa north and south of the Limpopo - currently has 25 clearing agents in situ, Mmegi has established. Botswana Unified Revenue Services (BURS) told Mmegi yesterday that they were not aware of the impeding hostile action by its South African counterpart, SARS, and had learnt about it only from members of the public. 'There has been no communication between SARS and BURS on this matter,' said a BURS statement prompted by Mmegi. 'BURS is therefore taking up the matter with SARS authorities and will only provide information to the media subsequent to such consultations.'  Anxious entrepreneurs operating on the Botswana side of the border with South Africa last week made frantic telephone calls to the Vice President, Confederation of Commerce, Industry and Manpower (BOCCIM) and other authorities alerting them of a memorandum issued by SARS informing them that with effect from July 3, South Africa would clear only entries from non-SACU members at the Beitbridge border post.

Mmegi is in possession of the memo.Botswana authorities, including BURS and the Ministry of Trade, immediately set intervention measures in motion that resulted in South Africa withdrawing the controversial memo on Monday. Even so, Botswana traders say they fear South Africa is determined to re-route the business to Zimbabwe in a matter of months. BOCCIM's Executive Director, Maria Machailo-Ellis, told Mmegi her office learned about South Africa's shocking move on Monday last week from anxious traders on the Botswana side of the border at Martins Drift.

She said she had held consultations with a deputy permanent secretary at the Ministry of Trade who had also reacted with shock. Machailo-Ellis said they were becoming 'very unsettled' by South Africa's surprise moves lately, adding that the country had recently decided to make it a requirement that truck drivers who operate between South Africa and other countries should have South African work permits. Another of South Africa's recent 'unsettling moves' was that transit tourists who travel to neighbouring countries from its OR Tambo Airport should have South African visas. 'It is very unsettling,' Machailo-Ellis said. 'We are very concerned.'

Currently Botswana has two major commercial border posts linking it with South Africa, namely, Tlokweng and Martins Drift. The majority of traffic entering Botswana at Tlokweng is not SADC-bound but delivers goods mainly to Gaborone.

Ninety percent of all commercial vehicles entering and exiting Martins Drift are SADC-bound, in transit to Zimbabwe, Zambia and the DRC. From Martins Drift, vehicles traverse through Palapye, Francistown, Nata and Pandamatenga, exiting Botswana at Kazungula in the northwest. 'The SARS threat represents a massive financial blow to both BURS and the private sector,' said a concerned trader at Martins Drift who requested anonymity.

'BURS receives revenue from these commercial vehicles in the form of in-transit SACU permits that enables them to traverse Botswana.' The oil sector also sells a vast amount of fuel to the commercial vehicles because fuel is more available and affordable in Botswana than in neighbouring countries.

Nata Village, for example, would lose its largest employer, the three filling stations there, overnight. The Botswana government has invested heavily in infrastructure along this route. Such investment is in the form of a multi-million Pula weighbridge at Martins Drift and the upgrading and resurfacing of the road between Nata and Kazungula.

Zambia and Botswana are in a joint project to build a bridge across the mighty Zambezi/Chobe River which at Kazungula that will see a 20-percent increase in vehicles using this route.