As the African Union and European Union foreign ministers pledge to boost cooperation on peace, security and the economy, Botswana has called for Brussels to lead more strategic investments in the country.
Speaking to Euronews, Botswana’s foreign minister, Phenyo Butale, said his country is open for business. Butale, who participated in the third EU-AU ministerial meeting in Brussels, said that although Botswana has enjoyed solid relations with the EU, there is an opportunity to deepen ties.
“There is room for us and Europe and Belgium to reimagine this relationship and ensure that we improve our trade and ensure that Botswana and Europe benefit mutually from this relationship,” he said.
Butaye’s call for more trade and investment with the EU comes amid a 37% trade tariff imposed by US President Donald Trump on Botswana, making it one of the hardest-hit nations in Africa.
The country’s economy, which is heavily reliant on the exports of diamonds, contracted last year by 3.1% from a weak global demand for the gem.
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Lauded for decades as the world’s fastest-growing economy, Botswana’s diamond exports are second only to Russia. However, the southern African nation’s gemstones are typically larger and considered of greater value.
This year’s economic forecast suggests a 3.3% growth based on an expected recovery in the global diamond market and “continued positive sentiment in the non-diamond mining sectors,” according to a budget speech made by the Finance Minister, Ndaba Gaolathe, in February.
That optimism is now being questioned as fears of a disruption to global trade supply chains sparked by the Trump administration’s trade tariff war pose long-term implications for exporters looking to diversify markets beyond traditional partners.
According to Butale, relations with the US, which he describes as a key ally, will remain excellent.
“We are engaged with the government of the US through bilateral and diplomatic channels. We have an excellent relationship with the US and believe this relationship, which has existed for years, will be able to ensure an amicable and mutually beneficial solution for both countries.”
Botswana’s total exports in 2023 amounted to around €5.4 billion and although less than 2% of that went to the US, much of it was carried out within the African Growth and Opportunity Act (AGOA) programme that provides duty-free access to the US market for most exports from eligible sub-Saharan African countries.
That trade pact is scheduled to expire this September, marking a key decision point for the programme’s future.
EU is Botswana’s second trade partner
In contrast, the EU is Botswana’s second largest trading partner after South Africa.
According to the European Commission report on Botswana, the 27-nation bloc maintains long-standing economic and trade relations with Gaborone.
The EU-SADC Economic Partnership Agreement (EPA) has been the foundation of this solid trade and investment relationship since its start of implementation in 2016, the EU Commission says.
Focusing on the areas of green transformation, economic diversification and job creation, the EU allocated €24 million in bilateral funding to its partnership with Botswana, for the period 2021-2027.
The European Union stated its support for Botswana’s efforts to develop and strengthen eco-tourism and horticulture value chains, transition to more sustainable energy sources and advance the country’s digital agenda.
Butale on Thursday lauded this cooperation and urged for more mutually beneficial investment.
“There are a lot of opportunities in the mineral sector. Right now, there is a rush for rare earth minerals and there are opportunities in that space,” he said.
Last year, Botswana witnessed a historic and peaceful transfer of power, marking a significant shift after the long-ruling Botswana Democratic Party (BDP) lost to the opposition, a change many analysts have attributed to a desire for transformation among voters, who were seeking solutions to economic challenges and job creation.