/ 24 August 2007

Botswana concerned over trade imbalance with SA

Botswana has repeated its criticism of the unhealthy trade balance with South Africa, saying it is heavily skewed in favour of its economically stronger neighbour.

Speaking during the welcoming of foreign diplomats by President Thabo Mbeki at Tuynhuys on Friday, Botswana’s newly appointed High Commissioner, Motlhagodi Molomo, said Botswana President Festus Mogae was concerned about the trade inequality between the two countries.

”Mogae expressed concern that … the balance of trade has remained skewed in favour of South Africa and there is a need to promote a healthier trade balance in order to generate equitable growth between the two countries,” she said.

In response, Mbeki said the South African government was equally concerned about the trade imbalance, and that it would do everything to encourage local companies to invest in Botswana.

He said South Africa had plans to import thermal power from Botswana.

”This will also help address this matter of trade imbalance,” he said.

During his 2005 address to the South African Parliament’s joint sitting, Mogae expressed concern about South Africa’s trade dominance, saying overall trade figures for 2004 showed that Botswana exported goods worth R2-billion to South Africa, while its imports from South Africa stood at R17-billion.

South Africa also hosted about 6 600 Botswana students at universities and technical colleges, for which their government paid more than R500-million.

Molomo said it was only fair for South African companies to invest more in her country.

”[It would provide] much-needed employment for our citizens, many of whom you may be aware … are products of educational institutions from South Africa,” she said.

Meanwhile, other foreign diplomats welcomed by Mbeki include Liberian ambassador Lois Lewis-Brutus and Rwanda’s Eugene Munyakayanza. — Sapa