Published: 11:54, August 1, 2025
PDF View
Botswana sees opportunity in China's zero-tariff offer
By Mmapula Molapong in Gaborone, Botswana

Facing a weakening currency and a slump in global diamond demand, Botswana is signaling a strategic pivot to diversify its economy.

The timing of China's recent decision to eliminate tariffs on products from 53 African countries — including Botswana — is seen as critical for the southern African country as it seeks to reduce its dependence on a single export.

In an interview with the correspondent, Botswana's minister of trade and entrepreneurship, Tiroeaone Ntsima, said the announcement "opens doors for Botswana to export a wider array of products".

The country's economy is under growing pressure, with its diamond sector struck by reduced global demand. In addition, Botswana recently devalued its currency by 2.76 percent, a move aimed at boosting export competitiveness and preserving foreign exchange reserves.

READ MORE: Xi, Botswana leader exchange greetings on 50th anniversary of ties

In this context, China's zero-tariff initiative is seen not merely as welcome support, but as a lifeline — a timely opportunity for Botswana to break free from its historical reliance on a narrow basket of exports.

"Export diversification has been a priority for the government for many years, and these efforts are being intensified in the face of a subdued global economy, which has adversely affected our traditional export — diamonds," Ntsima said.

While copper ore slag and diamonds remain Botswana's major exports, he said the country is now prioritizing beef, horticultural produce, leather, and processed agricultural goods in a renewed push for economic resilience.

A recently signed beef protocol with China allows for duty-free access to the Chinese market, which is "a significant boost" for the beef industry, he said.

Botswana's ties with China have evolved significantly in recent years. Although they have yet to formalize a bilateral trade agreement, both trade volumes and investment flows have grown rapidly, he said.

"Elimination of tariffs by China for African countries will enhance market access and competitiveness. China's importance as a trading partner is likely to increase."

Mmantlha Sankoloba, CEO of the Botswana Exporters and Manufacturers Association, described China's zero-tariff move as a rare opportunity for local exporters to access new markets, build long-term partnerships and move away from dependence on raw commodity exports.

"Duty-free access to such a large and diverse market offers Botswana exporters the chance to increase their competitiveness through lower landed costs," she said. "It allows us to diversify export markets and reduce overdependence on southern African or Western markets."

Amid mounting economic pressures at home, Sankoloba said she believes Botswana's private sector is well-positioned to turn crisis into opportunity. From the perspective of her association, China's initiative "aligns well with our mission to facilitate greater market access and support Botswana's industrial development agenda", she said.

Niche markets

While Botswana's beef and mineral exports are already well established, Sankoloba is looking ahead to products such as morula oil, baobab-based health supplements, and locally made leather goods that appeal to eco-conscious and health-focused consumers in China.

"Botswana's beef, sorghum, morula-based products, and other indigenous foods already have appeal in niche and health-conscious markets," she said. "We also see potential in textiles and garments."

Crafts and cultural products stand out, too. Sankoloba said handcrafted goods made from local raw materials, particularly those with sustainable or cultural value, are being repositioned for export.

Despite the enthusiasm, Sankoloba remains clear-eyed about the barriers ahead. For many of Botswana's exporters, especially small- and medium-sized companies, entering the Chinese market is no easy feat.

"Logistical costs and complexities remain significant due to our landlocked geography, lack of direct shipping lines, and absence of on-the-ground representation in China," she said.

"There are also language barriers and limited market intelligence. Our exporters struggle with stringent certification standards in the food, health and cosmetics sectors."

According to the Botswana Exporters and Manufacturers Association, overcoming these barriers will require a holistic support system, involving not only the government but also international partners and private sector players.

ALSO READ: New trade agreement with China sparks optimism in Botswana beef industry

To maximize the benefits of the zero-tariff policy, Sankoloba outlined critical areas where Botswana's exporters need support, such as training, research of the Chinese market, and government support.

"We are engaging with the Ministry of Trade and Entrepreneurship to align trade policy and export promotion efforts with this opportunity," she said. "We're also advocating for a Botswana-China Export Growth Strategy, possibly within the framework of the Forum on China-Africa Cooperation."

The association is exploring partnerships with Chinese business chambers, trade expos and e-commerce platforms to enhance visibility for Botswana-made goods, she said.

The writer is a freelance journalist for China Daily.