Trading requires something to trade

The African Continental Free Trade Area (AfCFTA) is scheduled to kick off on January 1, 2021 with trade between countries that have agreed on tariffs. AfCFTA will potentially be the biggest common market in the world, with 1.27 billion consumers, and an aggregated gross domestic product of up to $3.4 trillion.

For Botswana’s aspirations of an export-led economy, AfCFTA is a dream come true. On the ground, however, is the recurring nightmare of AfCFTA leading to a swamping of the local market by cheap imports, drowning out the little manufacturing capacity available. Voices in certain circles fear that AfCFTA could be a ‘mega-South Africa’, which for decades has overshadowed the local productive sector empowered by the provisions of the SACU agreement.