22 Aug 2024

Botswana has no significant export products to Brazil, prompting the business community to accelerate efforts to leverage the existing preferential market access between the two countries.

This was said by the Minister of Trade and Industry, Honorable Mmusi Kgafela, during the Botswana-Brazil Multi-Sectorial Trade Mission Summit held yesterday at the Avani Hotel in Gaborone.

The summit, hosted by the Botswana Investment and Trade Centre (BITC), aims to attract investors to Botswana by sharing insights and forecasts on local business opportunities.

Minister Kgafela lauded the longstanding relationship between Botswana and Brazil, which dates back to 2005, and encouraged the business community to pursue opportunities for collaboration.

He encouraged businesses to  take advantage of the preferential market access already in place between the two countries.

“It is always an honor to attract attention from a successful economic powerhouse like Brazil, known for its achievements in various industries including beef, aviation, food, consumer durables, and petrochemicals, among others,” Mr Kgafela said.

He highlighted that Brazil’s success stories offered valuable lessons for Botswana, especially as the nation seeks to develop new growth drivers and diversify its economy.  “The timing of this forum is crucial as the government is finalizing its plans for the 12th National Development Plan. I hope the interactions here will provide valuable insights for local policymakers,” he added.

In addition to the bilateral cooperation agreements, both Botswana and Brazil are linked at a multilateral level through a free trade area established between the Southern African Customs Union (SACU) and MERCOSUR, which came into effect in 2009.

“The free trade area aims at promoting trade between SACU and MERCOSUR regions providing both parties with access to concessions on over 1000 tariff lines offered by each party. Additionally in 2022, our two countries signed the Agreement on Visa Waiver for Nationals from Brazil and Botswana, with the aim to facilitate business travels and to increase tourism between the two countries,” he said.

However, Mr Kgafela reiterated that the cordial relations between the two countries has not translated into meaningful flow of investment and trade, adding that currently, the trade balance between the two countries was in favor of Brazil, which exported to Botswana goods worth over P189.7 million (US$14.2 million) in 2023.

Meanwhile, Ambassador of Botswana to Brazil Her Excellency, Ms Benetia Chingapane and her counterpart His Excellency Mr Joao Genesio de Alemeida Filho expressed gratitude for businesses in both countries seeing it fit to honour business engagement.

The two ambassadors noted that this was testament to the potential of multi-sectoral business opportunities between the two countries. ENDS