Botswana’s new administration drops vegetable import ban

19 Dec 2024

Vegetable import restrictions that have hurt both South African farmers and consumers in Botswana have been lifted, thanks to Botswana’s new government.

Botswana’s new administration recently announced its decision to lift the ban on vegetable imports from South Africa.

The newly elected Botswana government, led by President Duma Boko, announced on Friday, 13 December that Botswana’s vegetable import bans on South Africa will be lifted in two phases, according to the National Agricultural Marketing Council (NAMC).

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The first phase, already in effect, has lifted the ban on turmeric, patty pan, pumpkin, sweet potatoes, green peas, mushrooms and eggplant. The next phase, which will take effect around April 2025, will allow crops such as beetroot, butternut, onion, tomatoes, sweet pepper, potatoes and watermelon to cross Botswana’s border, says the NAMC.

Cost of the ban

Over the past year, Botswana’s vegetable import restrictions have had a negative economic effect on both the South African agricultural industry and consumers in Botswana.

In 2021, before the ban, 15% of South Africa’s total vegetable exports went to Botswana, according to the NAMC.

“Total vegetable exports fell to 2016 levels from a record high of $224.3-million in 2021 to $190.4-million in 2023,” said the NAMC.

“The impact of import restrictions further contributed adversely to the agricultural economy. For example, the agricultural sector contributed 0.7% of the 0.3% GDP loss of South Africa during the third quarter of 2024.”

Vegetable exports decreased by 35% from the second quarter of 2024 to the third quarter of the same year, according to the NAMC.

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Between November 2023 and November 2024, South African vegetable prices deflated by 2.6%, despite a CPI inflation rate of 2.9%, according to Stats SA. The NAMC estimates that this could be a result of an oversupply of vegetables in South Africa, which exerts a downward pressure on vegetable prices.

In Botswana, increased food inflation due to the import restrictions became a “major challenge for Botswana’s consumers, further adding to the strain and threatening food insecurity for lower and some middle-income households,” according to the NAMC.

Suitable strategy?

“Botswana’s decision to lift the ban on vegetable imports from South Africa is a positive development, both for South Africa and for consumers in Botswana,” said Wandile Sihlobo, chief economist at the Agricultural Business Chamber.

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The ban was put in place by Botswana’s previous administration, led by Mokgweetsi Masisi. Its barring of South African produce was used as a protectionist strategy to spur the growth of its domestic agricultural industry, said Sihlobo.

“The justification that they had put forward was that they wanted to support their domestic farmers, and therefore they needed to eliminate the competition from South Africa,” he said.

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But Botswana’s agricultural production has not been able to keep up with demand, partially due to the country’s dry climate, which gives it a comparative disadvantage in vegetable production relative to South Africa, according to the NAMC.

“The consequence of (the ban) has been that of higher food prices in Botswana, and the fact that the local farmers have not been able to quickly produce what is required in the market in Botswana,” said Sihlobo.

“Now, with the lifting of the ban, it does mean that consumers in Botswana can afford high-quality and affordable vegetable products out of South Africa.”

Now that Botswana has been reopened as an export market for South African vegetables, the future of South African vegetable farmers looks fruitful. But while the vegetable ban may not have been the right move, the development of Botswana’s agricultural sector, while keeping borders open, is a worthy goal for the future, says Sihlobo. DM

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Cost of the ban

Over the past year, Botswana’s vegetable import restrictions have had a negative economic effect on both the South African agricultural industry and consumers in Botswana.

Suitable strategy?