Botswana

Location : Southern Africa. Landlocked, shares borders with: Zimbabwe, Zambia, Angola, South Africa

Capital : Gaborone

Languages : Setswana 78.2%, Kalanga 7.9%, Sekgalagadi 2.8%, English 2.1% (official), other 8.6%, unspecified 0.4%

Area : 600,370 sq km

Land Use : arable land: 0.65% permanent crops: 0.01% other: 99.34% (2001)

Natural Resources : nickel, uranium, rare earth oxides, peat, cobalt, copper, platinum, vanadium, arable land, hydropower, niobium, tantalum, gold, tin, tungsten, kaolin, limestone

Population : 1,640,115 (July 2005 est.).

Labour force : 264,000 (2002)

Labour force participation rate : 16.10% of population (2002)

Population below poverty line : 47% (2002 est.)

International Organisation participation : ACP, AFDB, AU, C, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, ISO, ITU, MIGA, NAM, OPCW, SACU, SADC, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$9,200 (2004 est.)

GDP Growth Rate : 5.2% p.a. 1990-2001

GDP sectoral composition : agriculture: 4% industry: 44% (including 36% mining) services: 52% (2003 est)

Investment (gross fixed): 25.5% of GDP (2004 est.)

Industries: diamonds, copper, nickel, salt, soda ash, potash; livestock processing; textiles

Industrial production growth rate : 4.4% (2001)

Agriculture - products : livestock, sorghum, maize, millet, beans, sunflowers, groundnuts

Exports : U$2.94 million f.o.b. (2004 est.)

Exports - commodities : diamonds, copper, nickel, soda ash, meat, textiles

Exports - partners : European Free Trade Association (EFTA) 87%, Southern African Customs Union (SACU) 7%, Zimbabwe 4% (2000)

Imports : U $2.255 million f.o.b. (2004 est.)

Imports - commodities : foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Imports - partners : Southern African Customs Union (SACU) 74%, EFTA 17%, Zimbabwe 4% (2000)

QUALITATIVE TRADE PROFILE

The mining sector has to date been almost exclusively responsible for Botswana's quiet favourable economic performance. It accounts for over a third of GDP and nearly 90% of export earnings. Despite this, the sector is responsible for only 3.5% of formal employment. The main employer in Botswana is the government which accounts for 37% of formal sector employment.

The Ninth National Development Plan states that the primary aim of Botswana government policy is the creation of "internationally competitive sustainable economic diversification". Unsurprisingly therefore, the central theme of Botswana's trade policy is export diversification, specifically into non-traditional goods, such as textiles, clothing, engineering products, leather goods, electronics, and pharmaceuticals.

As a member of the Southern Africa Customs Union (SACU) Botswana's trade policy is regionally determined. Its tariff bindings cover 96.5% of its tariff lines. Average applied tariff rates stood at 5.8% in 2002, with the average for agricultural goods being 9.1% and non-agricultural goods being 5.3 %. A key issue for SACU is the structure of the external tariff which is determined by South Africa and often reflects South Africa's policy priorities and industrial structure. Approximately 45% of tariff lines are duty free on an MFN basis and non-ad valorem rates apply to approximately 14% of tariff lines. In accordance with the revised provisions of the 2002 SACU Agreement, the joint SACU Tariff Board will, in future, determine duty rates, including anti-dumping and countervailing duties.

INSTITUTIONAL FRAMEWORK 

• There is a division of responsibility for trade policy in the Government of Botswana. While trade policy generally falls within the remit of the Ministry of Trade and Industry, the Ministry of Finance and Development Planning is the lead ministry for SACU affairs. The Ministries of Agriculture, Mineral Resources, T ransport and Communication as well of the central bank are involved in policy formulation in their respective sectors.
• Trade policies are formulated through a consultative process involving all stakeholders, including government, business, workers, and civil society. An initial consultancy report is prepared and released for public comment through a national seminar. Following revisions, a white paper is usually produced as the basis of government policy.Trade policy coordination among officials is conducted mainly on an ad hoc basis with few formal structures in place. The High Level Consultative Council, chaired by the President, consists of the Vice-President, Ministers and private‑sector representatives. Discussions and recommendations at sectoral levels are reported to the Council, and once approved, are discussed in national seminars before draft bills are prepared.

TRADE AGREEMENTS

Bilateral

• Botswana has free trade agreements with Zimbabwe and India. Botswana also has a reciprocal customs agreement with Malawi and MFN trade agreements with China, Czech Republic, Cuba, India, Slovakia, Romania, Russia, Republic of Korea and Zambia. In addition, Botswana is also a beneficiary of the United States African Growth and Opportunity Act (AGOA). Other countries providing Botswana with GSP treatment include Australia, Canada, EU, Japan, New Zealand, Norway and Switzerland.
• Regional
• Botswana is a member of the Southern Africa Development Community (SADC) and hosts the secretariat. It is also a member of the Southern Africa Customs Union (SACU) though it does not participate in the Common Monetary Area. Through SACU it is currently in the process of negotiating bilaterals with the United States, MERCUSOR and EFTA. Botswana is also a member of the African Union. Botswana is currently negotiating an Economic Partnership Agreement with the EU through the SADC configuration.
• Multilateral

Botswana is a founding member of the WTO and applies at least MFN treatment to all its trading partners. It has a tariff schedule equivalent to that of South Africa except in some minor respects. Botswana has GATS commitments in 19 sectors.

NEED PRIORITIES  

A significant challenge for Botswana is achieving policy coherence between all the various trade agreements to which it is a party. As such, a key area for assistance is in the preparation of negotiation strategies. Implementation of Economic Partnership Agreements, the development of a National Trade Policy and National Export Development Strategy and capacity to deal with standards are similarly pressing concerns. Given the increasing role agriculture is planned to play in Botswana's trade profile, capacity is also needed to address sanitary and phytosanitary (SPS) measures.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.