Botswana pushes for a united African market

• African countries undermine their economic growth by prioritising trade with Europe and the United States over regional markets.
• How do we ensure that African countries trade among themselves? asks Dr. Phenyo Butale, Botswana’s Minister of International Relations.
• “We [Botswana] have high-quality beef in Botswana and the North West province, we export it to the European Union, yet Angola and the Democratic Republic of the Congo buy their beef from Brazil. Does that make sense? It doesn’t,” says Dr. Butale.

Despite its vast resources and production capacity, regional trade in Africa remains low with many economies relying heavily on overseas markets. This state of affairs has prompted Botswana to raise the alarm about low levels of intra-African trade.

“It’s disheartening that Africa is still unable to realise trade among its countries,” said Dr Phenyo Butale, Botswana’s Minister of International Relations, delivering a lecture in honour of the late South African Deputy Foreign Affairs Minister Dr Aziz Pahad at the North-West University (NWU) on 25 February 2025.

Emphasising the need for stronger economic ties among African nations, Dr Butale questioned why countries continue to import goods readily available within the continent.

“We should be asking ourselves how to make intra-Africa trade a reality,” he said. “How do we ensure that African countries trade among themselves? We have high-quality beef in Botswana and the North West province, we export it to the European Union, yet Angola and the Democratic Republic of the Congo buy their beef from Brazil. Does that make sense? It doesn’t.”

His remarks highlighted concerns that African countries undermine their economic growth by prioritising trade with Europe and the United States over regional markets. Some argue that this practice contributes to economic stagnation.

Dr Butale also reflected on the diplomatic legacy of Dr Aziz Pahad who played a key role in shaping Africa’s foreign policy through institutions such as the African Union and the Southern African Development Community.

“Dr Pahad understood that for South Africa to thrive, Africa must thrive. His diplomatic acumen and strategic engagement served as a guiding light. He taught us that dialogue, not the barrel of a gun, is the surest way to resolve conflict.”

He added that the call for increased intra-African trade comes amid broader efforts to implement the African Continental Free Trade Area agreement, which aims to create a unified market. However, logistical, regulatory and production challenges continue to hinder its full realisation.

Dr Butale’s comments underscore the urgency of shifting trade priorities within the continent. “The question is not whether Africa can trade within itself,” he said. “It is whether we are willing to make it happen.”

The State of Intra-African Trade

Intra-African trade has historically been limited, accounting for approximately 15 per cent of the continent’s total trade, significantly lower than intra-regional trade figures in Europe and Asia.

To address this disparity and foster economic integration, the African Continental Free Trade Area (AfCFTA) was established in 2019, aiming to create the world’s largest free trade area by connecting 54 of the 55 African Union member states.

As of April last year, the AfCFTA entered its operational phase, marked by the establishment of rules of origin, 90 per cent tariff liberalization, an online mechanism to report non-tariff barriers, a Pan-African payment and settlement system, and the African Trade Observatory portal. These developments are designed to streamline trade processes and enhance transparency across the continent.

Impact on Key Sectors

The energy sector stands to benefit significantly from the AfCFTA. The agreement is expected to drive investment in Africa’s energy infrastructure, particularly in nations like South Africa, Ghana, and Kenya, which are experiencing high rates of urbanization and electrification.

By encouraging the development of cross-border infrastructure and renewable energy projects, the AfCFTA positions countries such as South Africa, Nigeria, and Egypt to expand their energy exports while boosting intra-African trade.

Despite these advancements, several challenges still face intra-African Trade. They include:–

Infrastructure Deficits: Many African nations lack the necessary infrastructure to support seamless trade, including efficient transportation networks and reliable energy supplies.

Regulatory Barriers: Diverse regulatory environments and non-tariff barriers can impede the free flow of goods and services across borders.

Limited Free Movement: Traveling across Africa with a domestic passport remains complicated due to extensive visa requirements and bureaucratic hurdles. This issue significantly hinders intra-African trade and cultural exchange. While the AfCFTA and the Free Movement of Persons Protocol aim to address this, only a small number of countries have ratified these agreements, and very few offer visa-free travel to all African nationals.

Future Outlook

The AfCFTA aims to increase intra-African trade to 38 per cent by 2030, reduce poverty for 30 million people, and boost the continent’s GDP by 7 per cent by 2035.

Achieving these goals requires addressing the aforementioned challenges through concerted efforts in infrastructure development, regulatory harmonization, and policies promoting the free movement of people. Global support for the AfCFTA, including initiatives from international partners, indicates a promising outlook for Africa’s economic integration and development.

In summary, while intra-African trade has historically been limited, the implementation of the AfCFTA marks a significant step toward economic integration. By addressing existing challenges and capitalizing on opportunities in key sectors like energy, the continent is poised to enhance intra-regional trade and achieve sustainable economic growth.

Read also: AfCFTA’s promise: liberating Africa from the chains of raw material export