SA threatens to divert P800m cross-border trade

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.