Trade and Industry

Sunday, 01 February 2009

Linkages between Trade and Industrial Policies in Botswana

  • Year: 2009
  • Organisation: TIPS
  • Author(s): Farai Zizhou
  • Countries and Regions: Botswana

This paper aims to establish the links between the industrial policy and the trade policy in Botswana. The paper finds that after gaining independence the Botswana government has deliberately targeted industrialisation as a strategy to overcome the high concentration of economic activities and welfare of the country centred on diamonds. The strategy aimed at creating an enabling environment for the establishment, growth and development of particular types of firms through financial support. The government also centered trade policy in negotiating for preferences for Botswana's products whilst securing import requirements at competitive prices. There is evidence, nevertheless, that the formulation of trade policy, such as tariff policy, was largely disengaged from Botswana's industrial policy considerations. Commitments under SACU and SADC affect Botswana government's use of trade policy for own purposes.. Partly combined moreover with the cession of industrial policy to South Africa for most of the pre- and post-independence period, the study generally concludes that the link between the Industrial policy and trade policy has been weak.