Nigeria has partnered Botswana to create a trade gateway in the 16-member Southern African Development Community (SADC).
At the recently-concluded Botswana-Nigeria Business and Investment Forum, both countries showcased each other’s investment climate, preferential market access under the African Continental Free Trade Area (AfCFTA) and opportunities in manufacturing, agribusiness, pharmaceuticals and logistics.
Speaking, Manager for Export Promotion and Development at the Botswana Investment and Trade Center (BITC), Calvin Ketshabetswe, said Nigerian businesses could trade and invest in Botswana while using the country as a production and distribution hub for the wider SADC market. He highlighted Botswana as not just another export destination, noting that its strategic location, stable investment climate and preferential market access make it an ideal base for companies looking to expand across the region under AfCFTA. “Botswana offers a stable, high-income gateway into SADC and the Southern African Customs Union (SACU),” he said.
He said both countries have gazetted their provisional schedules of tariff concessions, enabling qualifying products to trade under AfCFTA’s preferential rules once they satisfy the agreement’s Rules of Origin requirements.
However, he stressed that the continental free trade agreement must extend beyond tariff reductions by addressing non-tariff barriers, trade facilitation, investment and digital trade, creating conditions for businesses to establish regional value chains instead of simply exporting goods across borders.
BITC’s proposition is that Nigerian manufacturers and agro-processors establish operations in Botswana and use the country as a gateway into both the SADC market and SACU while Botswana companies gain reciprocal market access into the Economic Community of West African States (ECOWAS) through Nigeria.
While bilateral trade between both countries is tiny, he said there is room for expansion under AfCFTA. Botswana’s exports to Nigeria peaked at $1.4 million in 2023 before declining to $147,000 in 2024. Botswana’s imports from Nigeria also fell from $376,000 in 2023 to $161,000 last year. He argued that the low trade volume should not be viewed as a limitation but rather as evidence of untapped potential.
With preferential market access, reduced trade costs and stronger commercial partnerships, BITC believes bilateral trade can expand under AfCFTA while moving into higher-value manufacturing and value-added production.
To strengthen its investment proposition, BITC highlighted a range of fiscal and regulatory incentives designed to attract regional manufacturers and investors. These include a preferential 15 per cent corporate tax rate for manufacturers, International Financial Services Centre (IFSC) entities and innovation hub companies, compared to the standard 22 per cent rate, 10-year tax holiday and tax rebates of up to 200 per cent.
He said investors can also benefit from customs and VAT rebates on imported machinery and raw materials, while Special Economic Zones offer additional incentives including corporate tax rates as low as five percent, transfer duty exemptions and long-term land leases.
Priority areas presented to Nigeria included energy security and renewable transition, logistics infrastructure, digital transformation, healthcare, mining and agriculture, with Botswana positioning these sectors as areas where Nigerian capital, technology and expertise could support national development while creating regional export platforms.
Responding, National Coordinator of the Nigeria AfCFTA Coordination Office, Patience Okala, said there should be renewed focus on equipping businesses to participate effectively in continental trade so they can fully benefit from opportunities created under AfCFTA.
Providing an entrepreneur’s perspective, Le Look Nigeria Limited’s Chief Executive Officer (CEO), Chinwe Ezanwa, shared her experience trading under the AfCFTA and expressed readiness to explore investment opportunities and partnerships with businesses in Botswana.
Nigeria’s High Commissioner to Botswana, John Shama Shaga, expressed hope that this trade mission model be replicated across other African countries as a blueprint for strengthening intra-African trade and investment.
