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Botswana steps up efforts to attain food security

Botswana‘s efforts to produce enough food for itself has been noted as bearing fruits, this emerged recently at a number of agricultural gatherings nationwide.


A week ago in Mosisedi Farmers Harvest day, Vice President Mokgweetsi Masisi observed that Botswana was capable of being food sufficient and even exporting agricultural food produce to foreign markets. The VP however remarked that such dream will not be realized over night. Currently, Botswana imports cumulatively across all food commodities well over 50 % of its food consumed daily. Notably a lot more under the fruits fresh produce and diary, milk products with only 6 % of milk consumed locally being produced in Botswana.


The country’s biggest supplier of agricultural produce is South Africa. Apart from government policies which include agriculture tailored funding frameworks; incentives and land allocations, farmers’ commitment is viewed as major ingredient to realization of Botswana’s dream of being food secure.


Cluster farming, which is a cooperative-like large scale professional farming set-up is one of the strategic models echoed many times as a highly productive undertaking. Mosisedi farms and Pandamatenga farmers are notably some commercial farming setups that are believed to be true success stories of cluster farming.


Government investment arm Citizen Entrepreneurial Development Agency (CEDA) Chief Executive Thabo Thamane urged other farmers from other locations around Botswana to come to the party by learning from Mosisedi farmers and other successful cluster agricultural producers.


“We as CEDA spent over 50 million in Mosisedi farmers alone, and we continue doing more for these serious farmers ranging from organized training, skills exchange and capacity building, but my worry and concern is that other farmers around the country are just spectators in this endeavour of commercializing agriculture, we have long asked them to formulate very formidable clusters with feasible ideas well put in paper so that we can assist them financially but they are not showing any seriousness,” he said.  Mosisedi Farmers Association comprises of twenty-five dedicated farmers, who collectively till over 10,000 hectares of land, with the common objective of ensuring food security for the country producing field crops.


CHALLENGES FACING AGRICULTURE IN BOTSWANA


Just like any other economic sector, Agriculture is faced with its own unique challenges that are mainly environmental because of the nature of the sector itself. Most farmers being small scale and non commercial depend on rain for ploughing and also use outdated methods of farming.

 

For Animal Husbandry Botswana as a semi desert vegetated country is vulnerable to animal diseases with a common one being Foot and Mouth Disease which has proven expensive to deal with in the past. As for crop produce, slow adoption of Batswana farmers to modernized techno-based models and methods of farming due to lack of knowledge and agricultural education hinders efforts of a commercial farming Botswana.  Botswana‘s climate conditions also contributes negatively to farmers’ produce.


Vice President Masisi noted that issues of poor climate conditions needed to be outsmarted by introduction of new technologies and modernized practices of farming. “Considering the scarcity of higher yielding agricultural land, I urge all farmers to embrace Climate Smart Agriculture as it promotes sustainable intensification of agricultural inputs, which increases output per area, without necessarily increasing the area under production. Furthermore, I encourage farmers to continue soil testing and using the right agro-chemicals for their crops,” he emphasized.


Poor infrastructure is also noted as a contribution to slow improvement of the agricultural sector locally. Still at the Mosisedi Harvest Day Bangwaketse Paramount Chief Kgosi Malopi told gatherers that poor roads was a huge challenge during the times of harvest. He said that farmers needed roads in good conditions to move large tonnes of harvest to reach their market after ploughing seasons. He however commended government efforts where electricity reached most farmers and this helps them cut costs of operations and improved on efficiency.


Mosisedi farms also recently joined the Motloutse farms in SPEDU region to enjoy subsidized connection of electricity in their farms. “Mosisedi Farmers’ Association is amongst those who have already benefited from ESP, with 18 farms now connected to electricity. I am further informed that the Association is planning to do irrigated arable production in response to climate change and the electricity will facilitate installation of irrigation equipment,” observed Masisi.



GOVERNMENT FACILITATION


Botswana Government efforts to unleash potential in the Agricultural Sector precisely commercial farming are commendable. The establishment of National Development Bank, though it hasn’t been as much as successful as anticipated has assisted in setting up of some of Botswana’s largest commercial farms especially in the livestock segment.

 

CEDA also a government arm funds viable agricultural projects to tunes of millions and government has already spent billions of pula investing in Agriculture through CEDA. For environmental challenges Government with additional technical support from regional and global partners has introduced the Climate Smart Agriculture (CSA) programme. This is a long-term initiative that commenced in 2015 and is expected to continue until 2030. Masisi echoed that the primary aim of the CSA programme is to improve agricultural productivity, while reducing farmers’ vulnerability to climate change.


“CSA will boost investment in agricultural research and innovation in order to achieve high levels of sustained productivity. Vision 2036 aspirations speak to a sustainable agricultural sector that optimizes agricultural returns through the adoption of modern applicable farming technology. It is, therefore, pleasing to note that the CSA programme has already encompassed the use of technology as a driver for attaining high output in the agricultural sector,” he said.


Government last year September rearranged ministries and aligned departments to keep to times with evolving economic challenges, administration and governance shortcomings. The Ministry of Agriculture as realigned to add the segment of Food Security with an aim of fast tracking Botswana‘s quest for food sufficiency.

 

Former President of Botswana Sir Ketumile QJ Masire was quoted recently applauding the efforts of Botswana in improving the agricultural sector saying they are beginning to bear fruits. Masire, a farmer himself observed that youth participation in agricultural businesses presented hope that in decades to come agriculture will create jobs and deliver a much needed diversified economy.

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Business

Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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Business

Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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Business

Electricity generation down 15.8%

9th January 2023

Electricity generation in Botswana during the third quarter of 2022 declined by 15.8%, following operational challenges at Botswana Power Corporation’ Morupule B power plant, according to Statistics Botswana Index of Electricity Generation (IEG) released last week.

The index shows that local electricity generation decreased by 148,243 MWH from 937,597 MWH during the second quarter of 2022 to 789,354 MWH during the third of quarter of 2022.

This decrease, according to the index, was mainly attributed to a decline in power supply realized at Morupule B power station. The index shows that as a result of low power supply from the plant, imported electricity during the third quarter of 2022 increased by 76.3 percent (123,831 MWH), from 162,340 MWH during the second quarter of 2022 to 286,171 MWH during the current quarter and Statistics Botswana added that the increase was necessitated by the need to augment the shortfall in generated electricity.

In the index Statistics Botswana stated that Eskom was the main source of imported electricity at 42.0 percent of total electricity imports. “The Southern African Power Pool (SAPP) accounted for 38.4 percent, while the remaining 10.1, 9.1 and 0.5 percent were sourced from Electricidade de Mozambique (EDM), Cross-border electricity markets and the Zambia Electricity Supply Corporation Limited (ZESCO), respectively. Cross-border electricity markets are arrangements whereby towns and villages along the border are supplied with electricity from neighbouring countries such as Namibia and Zambia.”

The government owned statistics entity stated that distributed electricity decreased by 2.2 percent (24,412 MWH), from 1,099,937 MWH during the second quarter of 2022 to 1,075,525 MWH during the third quarter of 2022. The entity noted that electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 85.2 percent during the third quarter in 2022 and added that this gives a decline of 11.8 percentage points. “The quarter-on-quarter comparison shows that the contribution of electricity generated to electricity distributed decreased by 11.8 percentage points compared to the 85.2 percent contribution during the second quarter of 2022.”

Statistics Botswana meanwhile stated that the year-on-year analysis shows some improvement in local electricity generation. Recent figures from entity show that the physical volume of electricity generated increased by 36.3 percent (210,319 MWH), from 579, 036 MWH during the third quarter of 2021 to 789,354 MWH during the current quarter. According to Statistics Botswana electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 57.7 percent during the same quarter in 2021. This gives an increase of 15.7 percentage points.

 

The entity noted that trends also show an increase in physical volume of electricity distributed from 2013 to the third quarter of 2022, thereby indicating that there are ongoing efforts to meet the domestic demand for power. “There has been a gradual increase of distributed electricity from the first quarter of 2013 to the third quarter of 2022, even though there are fluctuations. The year-on-year perspective shows that the amount of distributed electricity increased by 7.2 percent (71,787 MHW), from 1,003,738 MWH during the third quarter of 2021 to 1,075,525 MWH during the current quarter.”

The statistics entity noted that year-on-year analysis show that during the third quarter of 2022, the physical volume of imported electricity decreased by 32.6 percent (138,532 MWH), from 424,703 MWH during the third quarter of 2021 to 286,171 MWH during the third quarter of 2022. “There is a downward trend in the physical volume of imported electricity from the first quarter of 2013 to the third quarter of 2022. The downward trend indicates the country’s continued effort to generate adequate electricity to meet domestic demand, hence the decreased reliance on electricity imports.”

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