While it is widely acknowledged that the beef industry in Botswana plays an important role as a source of foreign exchange, rural livelihoods and employment, the Botswana Institute of Development Policy Analysis (BIDPA) through a recent working paper have demonstrated that the country is an insignificant player in the world beef market.
A paper by Dr Tebogo Seleka and Pinkie G Ketshabile illustrates that the industry has experienced declining output since the 1970s, leading to a steady fall in exports. “This scenario questions the industry’s sustainability and its continued role as one of the country’s leading sources of foreign exchange,” the two researchers point out.
For the continued sustenance of the beef industry in Botswana, it is important that beef exports remain competitive in the export market. However, the fall in exports experienced since the 1970s may have contributed to declining export competitiveness over time. Seleka and Ketshabile therefore tackled this issue by assessing the export competitiveness of the beef industry in Botswana, employing various indices of RCA.
The working paper revealed that Botswana has been the most competitive beef exporter in the SADC region, followed by Namibia. Export shares against the leading beef exporters indicate that Botswana is an insigniï¬cant player in the world beef market.
“However, all other RCA indices suggest that the performance of Botswana’s beef exports was generally impressive, with its competitiveness trends following those for major world beef exporters. Botswana’s beef industry was the most competitive from the early 1960s to the late 1980s, after which it was surpassed by some of the leading beef exporters.”
Seleka and Ketshabile noted a few factors underlying Botswana’s beef export competitiveness.
By way of background, Seleka and Ketshabile share that the BMC, a state trading enterprise, has been the sole exporter of beef since its establishment in 1965, which was made possible through a statutory instrument establishing the entity. Its establishment was geared at exporting beef to Britain, owing to colonial ties of the two countries. Botswana beef has also been accorded preferential access into the EU market through various trade arrangements.
“Before 1975, preferential access was made possible through the Commonwealth Preferential System, which allowed for duty free access of Botswana beef to the British market. From 1975 to 2000, non-reciprocal preferential access was made through the beef protocol of the Lomé Convention, signed between the European Commission (EC) and the African, Caribbean and Paciï¬c (ACP) countries, which exempted ACP beef exports from ad valorem duties levied to non-ACP beef imports into the EC.9 Non-reciprocal trade preferences were further extended through the Cotonou Agreement (CA) during the period from 2001 to 2007, to give the EU and ACP countries time to negotiate WTO compatible Regional Economic Partnership Agreements.”
In 2009, Botswana, Lesotho and Swaziland signed an interim Economic Partnership Agreement (EPA) with the EU, which allowed for the continuation of non-reciprocal preferences. The interim EPA allowed for duty free/ quota free access of Botswana’s beef into the EU market while EU/SADC EPA negotiations were ongoing.
The successful conclusion of negotiations on an EPA between the EU and the SADC EPA Group (Angola, Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland) on 15 July 2014 will result in the signing of a substantive EPA in the near future to facilitate the continuation of the ongoing preferential access of Botswana’s beef in the EU market.
According to the researchers, without doubt, the above institutions have played critical roles in stimulating the development of a competitive beef industry in Botswana, through promoting export market access.
“However, the same institutions are potential threats to beef export competitiveness in Botswana. First, the single export channel, through a state trading export monopoly, means that the collapse of the state trader may lead to an instant collapse of the beef industry in Botswana. Tis potential threat is not farfetched in that the BMC has operated at idle capacity since the 1980s when its throughput began to steadily decline. Such eminent threat is also reï¬‚ected in the poor ï¬nancial performance of the BMC, characterized by declining and negative proï¬ts.”
They further note that Botswana’s competitiveness is enhanced by duty free/quota free access of its beef exports to the EU market, while the country’s key competitors are subject to high import duties in the same market. As a result, Botswana’s beef exports are priced higher than world market prices because of trade restricting protectionist policies in the EU market.
According to Seleka and Ketshabile the Trade reforms in the EU that ease trade restrictions would lower beef prices in the EU market, further leading to preference erosion and reduced beef export competitiveness in Botswana.
“Finally, changes in standards in the EU market pose risks to Botswana’s beef industry, particularly where compliance capacity is limited or compliance costs are prohibitive amongst communal farmers. For example, the requirement that cattle should have been kept in a single enclosed area for a given period before they are slaughtered for the EU market is not practical under communal arrangements and serves as a trade barrier.”
According to Seleka and Ketshabile, given that over 80 percent of Botswana’s cattle are in the communal production system, this requirement would therefore lead to reduced exports to the lucrative EU market, impacting adversely on beef industry competitiveness.
Botswana’s beef cattle are produced under two distinct production systems of communal and commercial (ranching). The communal system is the most prominent and accounted for more than 80 percent of the country’s cattle population during the period from 1979 to 2012. However, the communal system is less productive than its commercial counterpart.
Seleka and Ketshabile have established that the steady and consistent fall in real cattle producer prices, from P1,228 per 100kg of carcass in 1974 to P776 per 100kg of carcass in 2005, has had long term adverse eï¬€ects on beef export competitiveness in Botswana.
“This period largely coincides with the reduction in export competiveness against SADC countries and the leading beef exporters. Empirical evidence has also shown that the occurrence of drought in Botswana causes farmers to increase cattle sales, as a strategy to minimize the risk of inventory loss from drought-induced cattle mortalities (BIDPA 2006).”
However, in subsequent good years following drought, farmers engage in inventory accumulation to rebuild their breeding stock, and thereby reducing cattle sales. Thus, such drought-induced decisions have had both short- and long-term adverse impacts on beef export competitiveness.
Foot and Mouth Disease (FMD) outbreaks have also impacted adversely on cattle sales directly through the banning of trade from aï¬€ected areas. Moreover, FMD outbreaks have had long-term adverse impacts on the beef industry where they have led to the imposition of mandatory cattle destruction in the aï¬€ected areas to halt further FMD spread.
They note that mandatory cattle destruction impacts adversely on cattle sales to the BMC and overall beef exports. In addition it also reduces the breeding stock now, leading to a reduction in future cattle sales, as these (cattle sales) positively relate with cattle inventory.
“Moreover, subsequent restocking exercises with cattle from disease free areas divert cattle sales from slaughter, further impacting adversely on cattle sales and beef exports. All these decisions adversely aï¬€ect beef industry competitiveness in both the short- and long-term. In sum, the predominance of the communal production system, stagnant cattle population, high communal cattle mortality rates, low communal cattle oï¬€take rates, declining cattle producers’ prices, and recurrent outbreaks of drought and livestock diseases have collectively contributed to the observed decline in the competitiveness of the beef industry in Botswana. If these factors are not eï¬€ectively addressed, Botswana’s beef industry is likely to continue to experience declining competitiveness in future,” they write.
The live cattle market in Botswana may be described as oligopsonistic, with the BMC being a price leader and a residual buyer of live cattle and numerous other buyers constituting the price-taking fringe ï¬rms (BIDPA 2006). Given stagnant cattle supply, Seleka and Ketshabile posit that an increase in domestic demand for beef in Botswana, due to increasing per capita income, would yield a reduction in cattle sales to the BMC. Since BMC is the sole exporter of beef in Botswana, this would further yield a reduction in beef exports.
The BMC’s share of cattle sales declined from about 80 percent in 1981 to 40 percent in 2012, representing a significant loss of market share.
“If we add the share of feedlots to that of BMC, assuming they sell cattle to BMC, the share for 2012 is estimated at 43 percent. This can be contrasted from the share of local abattoirs, which rose from 9 percent in 1981 to about 40 percent in 2012. Given that BMC slaughters cattle primarily for the export market and that local abattoirs slaughter solely for the domestic market, it then follows that the rising demand for beef in Botswana.”
Here is how one Permanent Secretary encapsulates the clear tension between democracy and bureaucracy in Botswana: “President Mokgweetsi Masisi’s Government is behaving like a state surrounded with armed forces in order to capture it or force its surrender. The situation has turned so volatile, for tomorrow is not guaranteed for us top civil servants.
These are the painful results of a personalized civil service in our view as permanent secretaries”. Although his deduction of the situation may be summed as sour grapes because he is one of the ‘victims’ of the reshuffle, he is convinced this is a perfect description of the rationale behind frequent changes and transfers characterising the current civil service.
The result of it all, he said, is that “there is too much instability at managerial and strategic levels of the civil service leading to a noticeable directionless civil service.” He continued: “Changes and transfers are inevitable in the civil service, but to a permissible scale and frequency. Think of soccer team coach who changes and transfers his entire squad every month; you know the consequences?”
The Tsunami has hit hard at critical departments and Ministries leaving a strong wave of uncertainty, many demoralised and some jobless. In traditional approaches to public administration, democracy gives the goals; and bureaucracy delivers the technical efficiency required for implementation. But the recent moves in the civil service are indicative of conflicting imperatives – the notion of separation between politicians and administrators is becoming blurred by the day.
“Look at what happened to Prisons and BDF where second in command were overlooked for outsiders, and these are the people who had sacrificially served for donkey’s years hoping for a seat at the ladder’s end. The frequency of the changes, at times affecting the same Ministry or individual also demonstrates some level of ineptitude, clumsiness and lack of foresight from those in charge,” remarked the PS who added that their view is that the transfers are not related to anything but “settling scores, creating corruption opportunities and pushing out perceived dissident and former president, Ian Khama’s alleged loyalists and most of these transfers are said to be products of intelligence detection.”
Partly blaming Khama for the mess and his unwillingness to let go, the PS dismissed Masisi for falling to the trap and failing to outgrow the destructive tiff. “Khama is here to stay and the sooner Masisi comes to terms with the fact that he (Masisi) is the state President, the better. For a President to still be making these changes and transfers signals signs of a confused man who has not yet started rolling his roadmap, if at all it was ever there. I am saying this because any roadmap comes with key players and policies,” he concluded.
The Ministry of Health and Wellness seems to be the most hard-hit by the transfers, having experienced three Permanent Secretaries changes within a year and a half. Insiders say the changes have everything to do with the Ministry being the centre of COVID-19 tenders and economic opportunities. “The buck stops with the PS and no right-thinking PS can just allow glaring corruption under his watch as an accounting officer. Technocrats are generally law abiding, the pressure comes with politically appointed leaders racing against political terms to loot,” revealed a director in the Ministry preferring anonymity.
The latest transfer of Kabelo Ebineng she says was also motivated by his firm attitude against the President’s blue-eyed Task Team boys. “The Task Team wants to own the COVID-19 pandemic and government interventions and always cry foul when the Ministry reasserts itself as mandated by law,” said the director who added that Masisi who was always caught between the crossfire decided on sacrificing Ebineng to the joy of his team as they (Task Team) were in the habit of threatening to resign citing Ebineng as the problem.
Ebineng joins the Office of the President as a deputy Coordinator (government implementation and coordination office).The incoming PS is the soft-spoken Grace Muzila, known and described by her close associates as a conformist albeit knowledgeable.
One of the losers in the grand scheme is Thato Raphaka who many had seen as the next PSP because of his experience and calm demeanour following a declaration of interest in the Southern African Development Community (SADC) Secretary post by the current PSP, Elias Magosi.
But hardly ten months into his post, Raphaka has been transferred out to the National Strategy Office in what many see as a demotion of some sort. Other notable changes coming into OP are Pearl Ramokoka formerly with the Employment, Labour and Productivity Ministry coming in as a Permanent Secretary and Kgomotso Abi as director of Public Service Reforms.
One of the ousted senior officers in the Office of the President warned that there are no signs that the changes and transfers will stop anytime soon: “If you are observant you would have long noticed that the changes don’t only affect senior officers but government decisions as well. A decision is made today and the government backtracks on it within a week. Not only that, the President says this today, and his deputy denies it the following day in Parliament,” he warned.
Some observers have blamed the turmoil in the civil service partly to lack of accountable presidential advisers or kitchen cabinet properly schooled on matters of statecraft. They point out that politicians or those peripheral to them should refrain from hampering the technical and organizational activities of public managers – or else the party (reshuffling) won’t stop.
In the view expressed by some Permanent Secretaries, Elias Magosi, has not really been himself since joining the civil service; and has cut a picture of indifference in most critical engagements; the most notable been a permanent secretaries platform which he chairs. As things stand there is need to reconcile the imperatives of democracy and democracy in Botswana. Peace will rein only when public value should stand astride the fault that runs between politicians and public managers.
Former Permanent Secretary to the President, Carter Morupisi, is fighting for survival in a matter in which the State has charged him and his wife, Pinnie Morupisi, with corruption and money laundering.
Morupisi has joined a list of prominent figures that served in the previous administration and who have been accused of corruption during their tenure in office. While others have been emerging victorious, Morupisi is yet to find that luck. The High Court recently dismissed his no case to answer application.
United States President, Joe Biden, is faced with a decision to make relating to the Covid-19 vaccine intellectual property after 175 former world leaders and Nobel laurates joined the campaign urging the US to take “urgent action” to suspend intellectual property rights for Covid-19 vaccines to help boost global inoculation rates.
According to the world leaders, doing so would allow developing countries to make their own copies of the vaccines that have been developed by pharmaceutical companies without fear of being sued for intellectual property infringements.
“A WTO waiver is a vital and necessary step to bringing an end to this pandemic. It must be combined with ensuring vaccine know-how and technology is shared openly,” the signatories, comprising more than 100 Nobel prize-winners and over 70 former world leaders, wrote in a letter to US President Joe Biden, according to Financial Times.
A measure to allow countries to temporarily override patent rights for Covid related medical products was proposed at the World Trade Organization by India and South Africa in October, and has since been backed by nearly 60 countries.
Former leaders who signed the letter included Gordon Brown, former UK Prime Minister; François Hollande, former French President; Mikhail Gorbachev, former President of the USSR; and Yves Leterme, former Belgian Prime Minister.
In their official communication, South Africa and India said: “As new diagnostics, therapeutics and vaccines for Covid-19 are developed, there are significant concerns [about] how these will be made available promptly, in sufficient quantities and at affordable prices to meet global demand.”
While developed countries have been able to secure enough vaccine to inoculate their citizens, developing countries such as Botswana are struggling to source enough to swiftly vaccine their citizens, something which world leaders believe it would work against global recovery therefore proving counter-productive.
Since the availability of vaccines, Botswana has been able to secure only 60 000 doses of vaccines, 30 000 as donation as from the Indian government, while the other 30 000 was sourced through COVAX facility. Canada, has pre-ordered vaccines in surplus and it will be able to vaccinate each of its citizens six times over. In the UK and US, it is four vaccines per person; and two each in the EU and Australia.
For vaccines produced in Europe, developing countries are forced to pay double what European countries are paying, making it more expensive for already financially struggling economies. European countries however justify the price of vaccines and that they deserve to buy them cheap since they contributed in their development.
It is evident that vaccines cannot be made available immediately to all countries worldwide with wealthy economies being the only success story in that regard, something that has been referred to as a “catastrophic moral failure”, head of the World Health Organisation (WHO), Tedros Adhanom Ghebreyesus.
The challenge facing developing countries is not only the price, but also the capacity of vaccine manufactures to be able to do so to meet global demand within a short time. The proposal for a patent waiver by India and South Africa has been rejected by developed countries, known for hosting the world leading pharmaceutical companies such US, European Union, the United Kingdom, and Switzerland.
According to the Financial Times, US business groups including pharmaceutical industry representatives, have urged Biden to resist supporting a waiver to IP rules at the WTO, arguing that the proposal led by India and South Africa was too “vague” and “broad”.
The individuals who signed the letter, including Nobel laureates in economics as well as from across the arts and sciences, warned that inequitable vaccine access would impact the global economy and prevent it from recovering.
“The world saw unprecedented development of safe and effective vaccines, in major part thanks to US public investment,” the group wrote. “We all welcome that vaccination rollout in the US and many wealthier countries is bringing hope to their citizens.”
“Yet for the majority of the world that same hope is yet to be seen. New waves of suffering are now rising across the globe. Our global economy cannot rebuild if it remains vulnerable to this virus.” The group warned that fully enforcing IP was “self-defeating for the US” as it hindered global vaccination efforts. “Given artificial global supply shortages, the US economy already risks losing $1.3tn in gross domestic product this year.”