Vegetables import ban stimulates local production - Kgafela
Other products to be considered for restriction
Nicholas Mokwena BG Reporter
The ban on the importation of vegetables has contributed to the stimulation of local production.
Minister of Trade and Industry, Mmusi Kgafela stated this week that the importation of fruits and vegetables for the years 2020, 2021 and 2022 were P354, 944,687.55; P375, 683,004.00 and P176,999,364.27 respectively.
According to Kgafela, these figures show at least a 50 percent decline in the value of imported fruits and vegetables. In this regard, the Minister said the import ban has contributed in reducing imports and has also stimulated local production.
“Due to the ban, local production of horticulture has increased from 36 244 tonnes to 45 211, which is an increase of 25 percent. This was further facilitated by the government initiative of providing an Impact Accelerator Facility to the tune of P70 million which allowed for a 50 percent grant and 50 percent own contribution to farmers. To this end 461 farmers have benefited from the initiative across the country”, Kgafela explained.
The Minister pointed out that exports were: P3, 358,407.76; P2, 894,485.83 and P3, 732,432.68 for the years 2020, 2021 and 2022. Kgafela said this shows that exports increased by 28.95 percent compared to the last year before the restriction.
In adding to this, the imposition of the restriction on importation of fruits and vegetables clearly has had an impact on the structure of imports.
Kgafela said before the ban, food, beverages and tobacco made up to 36.1 percent of total imports in December 2020, according to Statistics Botswana.
“However, in December 2022 food, beverages and tobacco only contributed 12.8 percent to total imports. This shows that imports on food, which vegetables are a part of, have reduced significantly due to vegetables restriction by at least 23.3 percent,” he said, adding that there is great potential for other food products in the basket of already restricted commodities to be added.
Kgafela added that an assessment to determine additional products will be undertaken with a view to informing the decision on specific products for inclusion.
Kgafela, who is also Member of Parliament for Mochudi West stated that government has in place other import restrictions which are: restriction on the importation of salt; restriction of importation of pre- packed refined sugar; restriction on the importation of bottled water; restriction on the importation of baked goods; restriction on the importation of wheat flour; and restriction on the importation of maize extruded snacks.
He explained that the impact of these measures has been positive but an in- depth analysis is still to be carried out. Kgafela reminded the MPs to be mindful that the base years 2020 and 2021 were not normal years due to COVID- 19 affliction where the country experienced lockdowns, while the economy was a bit slow in 2021.
He said monitoring of the economy will continue to be done in order to assess the impact of not only the ban on vegetables but all statutory instruments imposed by government.
BG ECONOMY
en-bw
2023-03-24T07:00:00.0000000Z
2023-03-24T07:00:00.0000000Z
https://enews.mmegi.bw/article/281586654842442
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