IMPORT RESTRICTION PROMOTES DOMESTIC INDUSTRY

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IMPORT RESTRICTION PROMOTES DOMESTIC INDUSTRY
IMPORT RESTRICTION PROMOTES DOMESTIC INDUSTRY

Africa-Press – Botswana. Import restrictions on the 16 horticulture products is to promote the domestic infant industry against relatively cheaper imports and allows for the industry to develop and become competitive in the wake of ever increasing trade liberalisation.

This was said by Assistant Minister of Agriculture, Mr Molebatsi Molebatsi in response to a question from MP for Francistown West, Mr Ignatius Moswaane who asked the minister if he was aware about the shortage of certain vegetables such as tomatoes and potatoes in the country.

Mr Moswaane opined that production of certain vegetables in the country was seasonal and hence the negative financial impact faced by Batswana traders, particularly the informal sector who he said depended largely on vegetable sales.

He also requested the minister to explain how Batswana traders were going to service their loans during the five-month period when the country was not ready to supply the market.

However, Mr Molebatsi said the ministry was aware about shortage of vegetables such as tomatoes and potatoes due to seasonality and that the same vegetables were in short of supply during the same period in the previous year.

“It should be noted that the period and quantities have shortened due to new producers in Pandamatenga and other areas,” he said.

He added that in order to address shortages due to seasonality and production quantities, the ministry introduced Economic Recovery and Transformation Plan (ERTP) and Impact Accelerator Subsidy (IAS) to enable protected cultivation and increase the number of producers and it was anticipated that the production gap would gradually be closed.

Parliament was also informed that the ministry had anticipated the current teething problems faced by the informal sector and efforts were ongoing to link the traders and producers.

Mr Molebatsi added that efforts to link producers and traders resulted from producers complaining about non-availability of a market.

“My ministry has always been responsible for import restrictions through issuance of permits in the past, however, it has since been realised their ineffectiveness in promoting local production due to smuggling, stock piling and other issues,” he added.Furthermore, he said the ministry had not ignored the financial implications on traders hence the introduction of initiatives that ensured production throughout all the seasons.

Again, he said the ministry was mandated to ensure food security in the country and improve local production by enabling participation by local along the entire value chain as well as reduction of the food import bill.

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