Although the levies were reduced in August to between 10 and 15% following diplomatic talks, Business Botswana warns they remain high enough to threaten sales and jobs.

Business Botswana Chief Executive Norman Moleele described the trade dispute as a turning point for the country’s economy. He cautioned that blocked exports could cost employment, but stressed that Botswana is already broadening its trade horizons.

“The tariffs that were set by the US government came as a shock to everyone,” Moleele said. “We took it in our stride as a country and proceeded to negotiate, as advised by the American government itself. We hope that with continued negotiations, these tariffs will be reduced to manageable levels or even removed completely, because we have good relations with our American friends.”

In the meantime, Botswana is eyeing new partners, particularly through the African Continental Free Trade Area and in Asia. Moleele pointed to several sectors as potential winners in the diversification push.

Beyond diamonds, the country sees promise in jewellery exports to markets such as China, India and the wider African region. A budding automotive parts industry, producing harnesses for South Africa’s motor sector, could also be extended to vehicle assembly markets in Ghana, Nigeria and Kenya. In addition, Botswana’s beef exports are drawing interest from China, with preparations underway to expand shipments.

Moleele said the government is seizing the moment to accelerate reforms that would make the economy more resilient to global shocks. “Crises are always an opportunity to do reforms that otherwise would not have been done if things were still moving smoothly,” he said. “We’ve entered a new era that we should see as an opportunity rather than just crying over the challenges.”

–ChannelAfrica–