Simplification of Trade Agreements

Botswana’s exports continue to be a synonym of diamonds, therefore the country’s economic and trade diversification has been a national priority. Although, the country has a comprehensive network of trade agreements enabling the private sector to expand its sales of existing and new export products, the country’s export basket continues to be dominated by mineral products.
International Economics is working with the Government of Botswana to translate the current market access opportunities it enjoys under AGOA, AfCFTA and the UK-SACU+M to help the private sector understand their opportunities better.

What We Found

Botswana is a member of both the Southern Africa Customs Union (SACU) and the Southern Africa Development Community (SADC), which allows Batswana companies to trade under duty-free quota-free rules amongst all the countries of Southern Africa. Similarly, Botswana also has access to two of the world’s biggest economies: the EU, through the Economic Partnership Agreement (EPA), and the US, through the African Growth and Opportunity Act (AGOA). Despite all of this, the private sector is not able to fully benefit from such opportunities, with traders facing major challenges. The DIT has commissioned this consultancy with a view to add momentum towards the trade promotion initiatives by enhancing the business community’s use of beneficiation stipulated by the Trade Agreements to increase economic diversification, enhance understanding of trade issues and create jobs.

Our Strategy and Impact

Preferential market access obtained through trade agreements with the EU, the US and SADC is aimed to spur national priorities, such as economic and trade diversification. Botswana has enacted various policies aiming to broaden the industrial base, however, the implementation of these have not led to any notable change in the country’s export basket. In this context, our team has simplified selected trade agreements which Botswana is party to into plain English language, with the aim of enhancing the ability of the country’s private sector to benefit from such opportunities. The assignment was divided into two clear phases: first the Team analysed the content of the FTAs under review, collected data and undertook stakeholders interviews, to finally focus on the reporting. As a result, the Team has produced a step-by-step guide to exporting to these markets.

Our Core Solutions

As businesses seek to expand operations into new markets, the need to explore global supply chains and understand the international regulatory framework becomes crucial. At International Economics Consulting, we build tailor-made strategies for both import and export-oriented business solutions.

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