The easing agricultural trade friction in SACU is crucial

--:--
The Southern African region has experienced agricultural trade friction in the past few years. Namibia and Botswana placed a ban on the imports of South African vegetables and citrus. Simply put, the rationale of both Namibia and Botswana was that the import ban ensures that their domestic producers are not exposed to the South African competition, thus having space to rebuild for self-sufficiency.

With all these countries under the customs union, the Southern African Customs Union (SACU), such a policy reaction is outside the spirit of free trade. While South African fruit exports could be redirected to other markets worldwide, the vegetable industry had to bear the financial impact of the reduced regional demand.

Beyond the trade breaching of the customs union spirit, Botswana and Namibia also have limitations regarding the land's potential to produce sufficient high-quality vegetable products. Thus, there have been various reports of food inflation challenges in these countries.

Fortunately, South Africa did not react irresponsibly to the ban on its vegetable and citrus exports. The major objective should always be to enhance regional agricultural production and discourage the fragmentation these bans attempt.

With a new administration under President Duma Boko, there is an opportunity to reverse the prohibitions of the previous administration and encourage stronger regional agricultural production and trade. The priority should be to ensure that the people of Botswana can access high-quality agriculture and food products.

Listen to the podcast for more insights.

Richard Humphries, Sam Mkokeli, and Amanda Murimba produce this podcast.
24 Nov English South Africa Investing · Food

Other recent episodes

SA's agricultural employment improves

While the 2023-24 mid-summer drought has been the central theme of the downbeat performance of South Africa's agriculture this year, we see a welcome positive change in the jobs data. Statistics South Africa data show that primary agriculture employment improved by 4% from the previous quarter to 935k jobs in…
19 Nov 12 min

Government and industry's efforts to control animal disease spread must be lauded

The past three years have been challenging for South Africa's livestock and poultry industry because of the spread of animal diseases. Throughout this period, we have had various cases of foot-and-mouth disease in cattle, African swine fever in pigs, and avian influenza in poultry. While animal disease outbreaks are not…
3 Nov 15 min

SA’s immense responsibility of stabilizing Southern Africa’s food security

South Africa’s agriculture and agribusiness sectors have a broader responsibility for food security beyond our borders. The Southern Africa region leans heavily on South Africa for food supplies. This is clear from the observation of South Africa’s agricultural exports. The country exported about US$13,2 billion of agricultural and processed food…
27 Oct 15 min