BEDIA exports reach P380 million

MBONGENI MGUNI
Staff Writer | Wednesday September 28, 2011 00:00

 

According to figures provided by BEDIA on Monday, South Africa accounted for 82 percent of exports by the private sector companies between April and August, representing latest available statistics.

BEDIA-assisted exports are considered representative of the country's non-core exports, stemming from the agency's export development programme involving numerous private sector players. Botswana's core exports include diamonds, tourism, copper/nickel, gold, textiles and tourism.

While the data reflects a cracking start to the year when compared to the P365 million exported in 2010/11, it also belies the fact that goods sold are still skewed towards minerals.

According to the data, the P312.8 million exported to South Africa since April consists largely of soda ash and salt mined in Sowa Town. For the same period, BEDIA-assisted exports, excluding soda ash and salt, amount to approximately P111 million or less than a third of total exports.

According to Botswana Ash, the country's sole producer of soda ash and salt, most of its production is secured in contract to South African and Zimbabwean manufacturers. Its coarse and fine salt is also popular in South Africa, Zimbabwe, Zambia and the DRC.

BEDIA's Acting CEO, Lameck Nthekela, explained South Africa's allure for local exporters thus: 'South Africa is the largest market partly because it's within SACU where exports are duty free and also because of its proximity. Prior to this, beef, beef by-products and leather were popular, but they have declined,' he told journalists on Monday.

However, beef could soon be making a comeback as discussions with Angolan and Mozambican authorities for supply arrangements were still underway, Nthekela said. 'The BMC recently had large orders from the Mozambique market,' he revealed. 'Last year, the Commission did not sell to Mozambique; but this year, due to the investment mission, they have secured orders. The Mozambicans' only other supplier has been Swaziland.'

Nthekela and his senior management were quick to explain that several other local products were proving popular on the international market. These included fruit juices, maize meal, cooking utensils, bottled water, motorboats, animal medication, pasta, cosmetics, chemical products, tobacco flavouring extracts and electric cables.

According to BEDIA data, Hong Kong and Japan were the destinations of tobacco flavouring extracts produced in Francistown while condoms, military type gear and other products were heading to South Africa. Pasta products and maize meal were being exported to the DRC, Namibia and Angola, while another local company was building a thriving business in Angola for polyethylene tanks and pipes.

Since April, Zimbabwe, the DRC and Hong Kong have been the biggest market for local exports after South Africa.According to BEDIA data, exports to Zimbabwe for all products amounted to P27.5 million, to the DRC P12.5 million, Hong Kong P11 million and Angola P5.4 million.

When soda ash and salt are excluded, the most important export destinations for BEDIA-assisted companies are South Africa, Hong Kong, Zimbabwe and Angola, in descending order.

Together with the services sector led by the multi-billion Pula tourism and hospitality sector, non-mining continues to widen the country's GDP base.

Numerous economists have stressed that non-mining exports were essential as the principal mining commodities such as diamonds and base metals are frequently exposed to the vagaries of global markets.