the monitor

Closed borders push up vegetable prices

Higher and higher: Vegetables are leading price increases in the inflation calculation
Higher and higher: Vegetables are leading price increases in the inflation calculation

While inflation has been cooling in recent months, reaching a 35-month low of 1.5 percent in July, the average price of vegetables has remained stubbornly high, measuring annual average of 15.8% last month.

Data from Statistics Botswana’s Consumer Price Index (CPI) released last week, show that vegetables top the list of goods and services with the highest percentage change on a 12-month basis running from July last year to the same month this year. The price of vegetables has been on a sharp increase over the course of the year due to market supply side inconsistencies.

This follows government’s decision in January 2022 to impose a restrictive ban on the importation of 16 vegetable types. The ban targets 16 vegetables such as onions, butternut, tomatoes, watermelons, carrots, potatoes, cabbage, and ginger but three crops, in particular, potatoes, tomatoes and onions accounted for 53% of the horticultural import bill. Responding to a question in Parliament, the Minister of Trade and Industry, Mmusi Kgafela said though Botswana had not reached full production capacity, mild signs of improvement were starting to show as the import bill had been slashed and the country's production capacity was improving.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

Have a Story? Send Us a tip
arrow up