Botswana comes out top in SA’s trading partners
Botswana leads the pack in SADC as the major trade partner of South Africa in 2020 by listing the highest trade value of 29% (R81,3 billion) from the total trade value of R278,9 billion of some commercial border posts in southern Africa, a new report shows.
The report released by South Africa’s Cross Border Road Transport Agency shows that Zimbabwe and Mozambique became the second and third trade partners with 25% and 21%, amounting to R70 billion and R58 billion, respectively.
Zimbabwe registered the third importer of South Africa by importing approximately 12% (3,3 billion pieces of goods) of South Africa’s total export volumes (27,2 billion pieces of goods) transported by road.
Eswatini was the principal exporter to South Africa by exporting about 38% (1,4 billion pieces of goods) of the total trade volumes (3,7 billion pieces of goods), compared to the neighbouring countries.
Botswana was the second exporter to South Africa since South Africa imported around 27% (999 million pieces of goods) of its total import volumes (3,7 billion pieces of goods), transported by road.
Grobler’s bridge and Ramatlabama border post administered about 9% (349 million and 329 million pieces of goods, separately) of South Africa’s total trade volumes imported from all neighbouring countries, and this made them the highest in handling South Africa’s imports compared to other commercial border posts of Botswana in 2020.
Mozambique and Zimbabwe registered fourth and fifth exporting partners of South Africa by exporting around 15% and 12% to South Africa, separately.
In 2019, South Africa had an exceptionally healthy trade balance with Botswana. It exported around R95,3 billion to Botswana and imported about R11,2 billion from Botswana, equaling a trade surplus of R84,1 billion.
In 2020, South Africa’s exports to Botswana valued about R74,0 billion, which was 22% lower than the exports of 2019. The value of South Africa’s imports in 2020 declined 35% to R7,3 billion from R11,2 billion in 2019. Consequently, South Africa enjoyed a trade surplus of approximately R66,6 billion, although it experienced a 21% decrease from 2019 (R84,1 billion).
The report explained that the decline of inter-trade between South Africa and Botswana in 2020 was mainly driven by restrictive measures imposed by member states due to the global spread of the COVID-19 pandemic.
COVID-19 led to limited travel and freight movements to the essential goods and essential workers only. However, there was a noteworthy difference in the decline of cross-border commercial vehicle activities across South Africa and Botswana borders.
“Ultimately, these national lockdowns led to long delays in the movement of the essential goods at Botswana’s border posts due to required COVID-19 testing by the truck drivers and truck crews for COVID-19 before crossing the border, long delays of up to five days before the truckers being cleared to deliver goods in Botswana, or transit through the country, partially due to reduced business hours at the border posts and the need for trucks to be disinfected in some instances,” the report says.
South Africa’s total volumes exported to Botswana through four commercial border posts documented about 9,8 billion pieces of goods in 2019. In 2020, exports recorded about 6,5 billion pieces of goods, resulting in a decline of 34%.
The report says the highest decline in export values were realized in April 2020 compared to April 2019, with a negative 71% and all the subsequent months till the end of December 2020 also recorded a decrease.
“In 2020, Skilpadshek border posts processed the highest export volumes, constituting about 38% compared to other Botswana commercial border posts with the highest total value amounting to 36% (R26,3 billion).
Ramatlabama border post followed Skilpadshek with 25% of volumes of goods that were cleared. These goods valued the least percentage of 9% amounting to R6,9 billion concerning other commercial border posts in Botswana,” the report says.
Kopfontein border post registered the third South African exporting passage by processing volumes of goods equaling 23% of South Africa’s total exports to Botswana in 2020. The total value of goods administered in Kopfontein was approximately R28,9 billion during the year, scoring the second-highest value totalling 34% after Skilpadshek.
The last border post that processed the smallest volume of goods was Grobler’s’ bridge with 13%. The respective value of the same goods was around R15,8 billion, which was 21% of the total value of exported goods from South Africa to Botswana.
The highest volumes of South Africa’s exports to Botswana that traversed all Botswana commercial border posts in 2020 were; Crude, Coal, Petroleum and Electricity with about 1,1 billion litres contributing 17,1%; Salt, sulphur, stone and plastering material with about 934 million kilograms registering 14,4%; Cell phones, Electrical Equipment and Machinery with 92,6 million pieces documenting 14,3%.
In 2020, Grobler’s bridge border posts processed the highest imports volumes that recorded about 35% associated with other Botswana commercial border posts with the second-highest total value amounting to 26% (R1,9 billion) after Kopfontein border post, which processed the lowest volumes of goods border post with approximately high value of R2,2 billion (31%).
Skilpadshek border post followed Grobler’s bridge with 33% of volumes of goods that were cleared, and these goods valued about 25%, amounting to R1,9 billion compared to other commercial border posts in Botswana (Figure 2).
Ramatlabama border post registered third South Africa’s importing passage in 2020 by processing volumes of goods equaling 20% (329 million pieces of goods) from Botswana. The total value of goods administered in Ramatlabama during 2020 was approximately R1,3 billion, scoring the lowest with 18% after Skilpadshek.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.