Botswana will assume South Africa’s position as China’s main beef trading partner in Africa due to the outbreak of FMD in its southern neighbour. This means Botswana will be expected to match South Africa’s beef exports to the massive Chinese market that amounted to 5412 tonnes last year
BONGANI MALUNGA
Botswana’s beef protocol with China will see the country replace South Africa as the Asian giant’s main beef trading partner in Africa.
Since May this year, South Africa suspended exporting beef to China due to the outbreak of the Foot and Mouth disease (FMD) that has ravaged the country in the last few weeks.
Matching SA’s output
China is the world’s biggest importer of beef. Last year, the Asian country imported 2.87 million tonnes of beef from multiple trade partners around the world.
Matching SA’s volumes
Botswana will be expected to match South Africa’s beef exports to China which amounted to 5412 tonnes last year. This is the second time China has suspended importation of beef from South Africa after the Asian nation enacted a similar ban under similar FMD circumstances in 2022.
China has recently cancelled its beef imports from the United States due to the trade war between the two biggest economies in the world.
According to global media outlet Reuters, Chinese customs agencies suspended beef imports from seven companies in Brazil, Argentina, Uruguay and Mongolia in March.
China’s biodiversity protocols
The suspensions and bans have presented an opportunity for Botswana to plug the supply holes in the lucrative Chinese market. Botswana currently meets China’s biodiversity protocols, given its disease-free status.
Speaking at the signing ceremony of the export deal at the Forum on China-Africa Cooperation (FOCAC) in China last week, the Minister of International Relations, Phenyo Butale, hailed the opportunity as a big economic boost for Botswana.
“Access to China’s market can significantly boost Botswana’s beef industry, enhance export revenue and invigorate local economies,” he said.
Geopolitical tensions
“The protocol allows Botswana to diversify its export markets, reducing reliance on traditional markets and mitigating risks from demand fluctuating on geopolitical tensions.”
In an interview with Chinese media company CGTN, Butale noted that such trade deals will help Botswana evolve from being a single-commodity economy.
“We now have to implement diversification,” he said. “We have to ensure that we take part in downstream industries, and diamonds and other minerals, to which we are inviting China.
“We have seen ourselves as the gateway to Southern Africa, the gateway to Africa. Many Chinese companies could then be interested in setting up manufacturing plants in Botswana, and launching into the big Southern African markets.”