While other countries have taken a confrontational tone in trade policy, SA must continue strengthening relations and widening export opportunities for all the export-reliant sectors of the economy. Agriculture is one sector that largely depends on exports and has benefited immensely from the trade opportunities the SA authorities have successfully negotiated in recent decades.
SA must make an accelerated effort to maintain relationships and strengthen friendships. One region that requires some attention is the Southern African Customs Union (Sacu), a free-trade customs union that includes Botswana, Namibia, Lesotho and Eswatini.
In 2021 Botswana banned imports of vegetables from SA, which continued until the partial removal of restrictions by President Duma Boko in December. This month the government of Botswana plans to remove the remaining import restrictions on beetroot, butternut, cabbage, carrot, garlic, ginger, green melons, herbs, lettuce, onions, potatoes, sweet pepper, tomatoes and watermelons from SA.
This is a welcome development for SA fresh produce suppliers and retailers. Notably, the easing of vegetable imports will mainly benefit consumers in Botswana.
As Botswana removes all the restrictions on vegetable imports from SA this month, the focus will shift to Namibia. In the case of Namibia, the restrictions on vegetable imports from SA started at about the same time as those in Botswana. Both countries’ rationale for banning vegetable imports was that they were building their domestic industries, and that this required cushioning from imports.
However, these bans on imports of agricultural products added uncertainty and have weighed on SA exporters. Moreover, they have fuelled sentiment in some quarters that Sacu needs to be reviewed, especially in the context of SA sharing some financial resources with the region. However, we caution against an unfriendly approach in the Sacu region.
While SA’s agriculture has experienced some challenges recently, the country continues to benefit from the free trade area. For example, Trade Map data shows that the Sacu region accounted for about 19% of SA’s agricultural exports of $13.7bn in 2024. This is the same value as SA’s agricultural exports to the EU. The only difference between the EU and Sacu is the products in the export basket. The EU imports more fruits and wines, while the Sacu basket mainly includes staple grains, vegetables and beverages.
SA imports less than $1bn in products from Sacu, averaging $816m over the past five years. This is about an 11% share of SA’s agricultural imports in the past five years. The imports are mainly live animals (cattle) and sugar. The major exporters to SA in Sacu are Eswatini and Namibia.
The disparity in trade is partly because of the lack of production volume from some of the Sacu countries that are not as naturally endowed as SA. That said, we believe restrictive policies are not the best way for Sacu countries to lift production. Instead, a more collaborative approach that seeks to leverage SA’s technology and scientific know-how could be more helpful.
Considering that this is an enormous export market for SA agriculture and an essential one for importing Sacu nations, the logical steps should be to preserve trade and reduce the frequent occurrence of export bans targeting SA. The policy ambitions of the Sacu members to increase their domestic production could focus on leveraging scientific advancements and investments from SA, which has mature agriculture and food, fibre and beverage value chains. Ideally, collaboration should be the path forward rather than confrontation.
As Botswana lifts its remaining restrictions on vegetable imports from SA, the focus and tone of engagement in both countries should move to collaboration. Botswana must outline the areas of agriculture in which it intends to grow, and thereafter leverage SA technology and skill as it embarks on that journey.
This could be communicated through the respective ministries of agriculture, requesting private sector involvement. Namibia must also move towards this collaborative approach and remove the restrictions on vegetable imports from SA.
Written for and first published in the Business Day.
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