If Switzerland, Ethiopia and other landlocked countries can own shipping lines and dominate global trade logistics, nothing prevents Botswana from following suit, writes DOUGLAS RASBASH
As a landlocked nation, Botswana relies heavily on international shipping and logistics for its trade. While it may seem unconventional for a landlocked country to engage in maritime activities, Switzerland, Ethiopia and other nations have successfully owned or controlled shipping lines, ports and logistics services.
In the race to diversify, we must think out of the box. The first step towards advancing maritime interests would be to establish a Shippers Council – a vital institution that could help the country navigate global trade more strategically.
What is a Shippers Council?
A Shippers Council is an organisation that represents the interests of importers, exporters, manufacturers, and traders by addressing issues related to shipping, freight, logistics, and international trade policies. These councils often advocate for better transport infrastructure, negotiate with shipping lines and port authorities, and influence trade policies to enhance national competitiveness.
Botswana currently relies on foreign shipping lines and port operators, leading to high costs. A Shippers Council can negotiate bulk discounts, advocate for competitive pricing, and reduce inefficiencies in the supply chain. The Council can work with port authorities in Mozambique, Namibia, and South Africa to improve cargo clearance times, reduce bureaucratic bottlenecks, and streamline customs procedures. The Council can lobby the government to improve transport policies, reduce import/export restrictions, and advocate for Botswana’s interests in international trade negotiations.
Botswana is already part of key regional corridor developments, e.g. the Trans-Kalahari Corridor, the Walvis Bay Corridor, the Maputo Corridor. A Shippers Council can strengthen these trade routes and advocate for additional transport infrastructure. The Council would take a lead in educating local businesses and policymakers on best practices in global logistics, supply chain management, and shipping regulations and promote domestic logistics and shipping enterprises.
Switzerland owns MSC (Mediterranean Shipping Company), the second-largest shipping line in the world, despite having no coastline. Ethiopian Shipping & Logistics Services Enterprise (ESLSE) operates maritime services through Djibouti. Bolivia and Mongolia are also land locked but own shipping companies and have port agreements with neighbouring coastal nations. Botswana can secure port agreements and negotiate long-term preferential agreements with ports like Walvis Bay, Maputo and Durban for dedicated Botswana cargo handling.
Botswana could also consider co-investing in port terminals to reduce handling fees and congestion. Botswana can increase its interests in inland dry ports and logistics hubs and facilitate customs clearance inland rather than at congested coastal ports. The country could leverage regional and global trade agreements through SADC, SACU, EAC, ECOWAS and AfCFTA frameworks to strengthen Botswana’s position in regional and global logistics and engage in joint ventures with experienced international shipping firms.
Strategic Advantages for Botswana
Economic diversification through reducing reliance on mining and creating a new sector in logistics, transport, and international trade would be among the perks of having a Shipping Council for purposes just outlined. Reduced trade costs because Botswana currently pays a premium for shipping services – owning or co-owning logistics assets can cut costs. Shippers Councils enable stronger bargaining power and can negotiate better trade terms. Developing a shipping and logistics sector would generate employment across multiple industries in transport, warehousing, customs and finance.
Key Takeaways for Botswana
- Establish a Botswana Shippers Council.
- Advocate for lower freight rates, improved trade logistics, and better port agreements.
- Invest in maritime logistics.
- Consider co-owning port terminals in Mozambique, Namibia, or South Africa.
- Explore leasing ships or partnering with a shipping line for key exports like beef and minerals.
- Develop inland dry ports.
- Streamline customs clearance in Gaborone, Francistown and Palapye to improve trade efficiency.
- Secure long-term port agreements.
- Negotiate preferential trade corridors and port deals for Botswana’s imports and exports.
By following these strategies, Botswana can reduce trade costs, improve export competitiveness, and establish itself as a key logistics player in Southern Africa, just like other landlocked nations that have successfully developed maritime interests. If Switzerland, Ethiopia and other landlocked countries can own shipping lines and dominate global trade logistics, there is no reason Botswana cannot follow suit.
Establishing a Shippers Council is the first step towards securing better trade deals, reducing costs, and developing a national logistics powerhouse that can serve both Botswana and the broader Southern African region.