South Africa, Botswana Pledge To Strengthen Economic Ties, Remove Trade Barriers

South Africa and Botswana have agreed to strengthen their economic ties and remove barriers that restrict free movement of goods between the two countries.

During a meeting in Pretoria on Monday, the Deputy Minister of Trade, Industry and Competition Zuko Godlimpi and the Botswana Minister of Trade and Industry Mmusi Kgafela made this commitment.

The two ministers discussed how to promote trade and investment and agreed to tackle key challenges that limit economic cooperation between their countries.

They also promised to improve communication about trade relations and create investment opportunities that benefit both nations and support sustainable industrial development and job creation.

Deputy Minister Godlimpi and Minister Kgafela stressed the need to simplify trade processes and lower the barriers that currently block the free flow of goods, SA News reported.

The two ministers also talked about potential cooperation in areas of mutual interest where investment can be increased, such as manufacturing, agriculture, transport and other service sectors.

A major part of the discussion focused on solving existing problems like non-tariff barriers, regulatory issues, and market access challenges that have slowed down trade growth. Both countries agreed to create a bilateral working group to identify and address these issues to ensure a fair and open trading environment.

Both delegations were hopeful about the future of their economic partnership and agreed to have regular meetings to monitor progress and explore new opportunities for cooperation.

South Africa and Botswana have shared formal diplomatic relations since Botswana got independence in 1966. Both countries have engaged in diplomatic exchanges and cooperation on several regional and international issues.

Last year, the state-owned rail companies of South Africa and Botswana were looking for $230 million in funds to make a 113-kilometer railway line between the two countries to transport several items including coal.

The Mmamabula-Lephalale link will have a capacity of transporting 24 million tons of material every year and it will be connected to the existing routes of South Africa's Richards Bay and Mozambique's Maputo port.

As of 2021, South Africa exported $4.47 billion worth of products including Refined Petroleum ($669 million), Diamonds ($465 million), and Delivery Trucks ($123 million). Whereas, Botswana exported $684 million worth of products including Diamonds ($188 million), Insulated Wire ($104 million), and Bovine ($76.8 million).