Botswana’s economic autonomy threatens SA trade relations

In 2022, a ban on 16 types of vegetables was enforced to bolster the local horticulture industry FILE PIC
In 2022, a ban on 16 types of vegetables was enforced to bolster the local horticulture industry FILE PIC

Metaphorically, Botswana and South Africa (SA) are akin to siblings, with socio-economic roots spanning beyond the pre-independence epoch, separated only by a colonial border.

However, recent shifts in trade dynamics have prompted Botswana to reconsider this relationship, highlighting a growing concern over the imbalance in trade favouring SA, oftentimes at the detriment of the former. Trade relations between the two nations have roots dating back to the apartheid era when Batswana patriarchs, with little to no skills, worked as mining artisans in SA gold mines to support the families they left behind while earning the country foreign exchange. With time, economic relations strengthened, positioning Botswana as an evergreen trade partner for its southerly neighbour until the recent produce bans. President Mokgweetsi Masisi, emphasising the need for economic autonomy, particularly in the power sector, expressed what critics across the border quickly deemed unpopular views. “Clearly, reliance on power imports to meet our increasing electricity requirements is no longer an option as this poses a huge risk to our economy,” Masisi said. After expressing his views on national interest during the launch of the Jindal Mmamabule Power Station, Masisi's sentiments were emphatically made clear during a Botswana-SA business round table discussion last year. Acknowledging the skewed trade balance, he called for a change in trade rules. A comprehensive view of government policies reveals Botswana's reluctance to rely solely on SA's economic largesse.

As is, Morupule B has a baseload capacity of 600MW but is presently generating well below that as it undergoes an overhaul. Botswana’s peak energy demand, which occurs during winter, is more than 700MW. The difference is sourced through imports from the bilateral import agreements with SA's Eskom, other regional utilities, and purchases from the Southern African Power Pool.

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