- Article 18 (2) of SACU Agreement permits Botswana, Namibia’s import bans on SA fresh produce
- SA’s Agricultural Business Chamber acknowledges it depends on Southern African trade
BONGANI MALUNGA
Botswana’s decision to ban importation of fresh produce from South Africa is within provisions of the Southern African Customs Union (SACU) Agreement that empower member states to control their intake of goods from others.
However, affected stakeholders in the South African market hold that the ban violates trade agreements in the region.
Key SACU provision
According to Article 18 (2) of the SACU Agreement, “member states have the right to impose restrictions on imports or exports for the protection of humans, animals, plants, the environment, treasures of artistic, historic or archeological value, public morals, intellectual property rights, national security and exhaustible natural resources”.
Botswana and Namibia have taken advantage of the loophole to exert bans on importation of a range of fruits and vegetables from South African since December 2021.
Discussion reopened
A recent social media post by President Mokgweetsi Masisi defending the ban reopened discussion with South Africa’s Agricultural Business Chamber (Agbiz) on the ban.
The organisation protects the business interests of agribusinesses in South Africa with a focus on legislative and policy issues.
Agbiz argues that the ban is eating into the country’s market as exporting to neighbouring countries such as Botswana and Namibia was worth up to 60 percent of its vegetable exports before the countries introduced their bans.
“Measured response”
In an even-tempered article published by South Africa’s Daily Maverick of 28 July, the Chief Economist of Agbiz, Wandile Sihlobo, called for “a measured response” to Botswana and Namibia’s continued bans.
“South Africa’s response will need to be sensitive but firm,” he wrote. “Admittedly, South Africa has significantly benefitted from the African continent in its agricultural export progress.
“For example, in the record agricultural exports of US$13.2 billion in 2023, the African continent accounted for roughly 40 percent.
SA’s dependence
“This figure has been the same for the past decade. Importantly, in every dollar of agricultural products South Africa exports to the African continent, 90 cents is within the Southern African region.
“Thus, an engagement with this region about the export ban must appreciate that South Africa greatly depends on the area as a country.”
Sihlongo argued that Botswana and Namibia’s stance is somewhat hostile, saying aiming to overtake South Africa should not be the two countries’ goal.
He urged the countries to instead work with South Africa and leverage its technologies in order to increase regional agricultural production.
Positive spillover
“The growth or desire to expand agricultural production in these countries also has a positive spillover for South African agribusiness, which can supply farm implements and inputs to these countries,” Sihlongo wrote.
“Botswana and Namibia should remain open and not hostile in this respect. These Southern African countries should revive the regional spirit and formulate agricultural policies and programmes from that perspective.
“The hostility among neighbours and offensive communication is not a path to Southern Africa’s agricultural prosperity.”