This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/22/2019

Overview

Agriculture only comprises approximately 2% of GDP, but it is vital to livelihood for many citizens of Botswana who operate farms for subsistence.  Livestock production, especially cattle, contributes an estimated 80% to the agricultural GDP.  Former President Khama directed the Ministry of Agricultural Development and Food Security to increase domestic food production, and ministry officials report they are developing an incentives package to attract investors and improve commercial viability in the sector.

Livestock and cattle raising and grazing is by far Botswana’s primary agricultural product and export.  The cattle population is currently estimated at 2.1 million.  Livestock production exceeds domestic needs and the country has exported range-fed beef to the European Union.  The development of a modern cattle farming and slaughter industry (and the corresponding development of a market for U.S. feed stocks, ingredients and technology) is limited by the government’s monopoly on meat processing plants, exports, livestock prices, as well as outbreaks of  Foot and Mouth Disease especially in the northeastern part of the country.  The GOB is seeking new market opportunities abroad with particular interest in the Middle East market, and the BITC is currently working on a strategy to export beef to the U.S market.

The crop sub-sector is dominated by the growth of cereals, but is limited by constrained productivity in the sector, unreliable water supply, and the fact that desert and poor soils cover 70% of the country.  In 2017, national cereal production totaled 20,985 metric tons (MT)(this excludes commercial production).  Sorghum comprises 28.4% of national cereal production, followed by maize (66.3%) and millet (5.2%).  Botswana also produced 2348 MT of beans, 145 MT of groundnuts and 78 MT of sunflowers in 2017.  Horticulture production is focused in the southeast, with a small annual production valued at $14 million in 2013, primarily consisting of potatoes, tomatoes, cabbage and oranges. 

Botswana consumes about 4,000 tons of fish per year and out of this quantity only 300 tons are produced locally and 3,700 tons are imported from neighboring countries.  Efforts to augment fish production through aquaculture, such as the construction of fish hatcheries to supply fish seed to over-fished reservoirs, are being explored and may provide a niche market for incoming investors.  The sector also supplies raw materials for agro-based industries such as meat processing, tanning, milling, oil, soap, and brewing.

USDA’s Foreign Agricultural Service in Pretoria prepares more than 50 reports each year on the agricultural situation by commodity sector in South Africa.  Some reports highlight opportunities for U.S. farm exports.  For U.S. exporters of agricultural products, it may be useful to start with the Exporter Guide for South Africa at: www.fas.usda.gov/scriptsw/AttacheRep/default.asp.

For other sector reports please see the Attaché report on the main FAS website: www.fas.usda.gov.

If you are an exporter of U.S. agricultural products, please feel free to contact the Foreign Agricultural Service for further information at the following address:

Foreign Agricultural Service
U.S. Embassy Pretoria, South Africa
Tel: +27-12-431 4235
Fax: +27-12-342 2264
Email: agpretoria@fas.usda.gov 
 

Sub-Sector Best Prospects

Grains, dairy farming, pet foods, health foods, food service, leather, and fish farming are the best sub-sector prospects.
 

Opportunities

The GOB is seeking to attract private sector investment to establish commercial farms, tanneries for the export of processed hides and skins, a poultry hatchery, breeder stock and poultry abattoirs, and pig feed production and breeder stock.  In 2015, Parliament approved a Special Economic Zones (SEZ) law to streamline investment in sector-targeted geographic areas in the country and has since set up the Authority which is in full operation now.  The GOB plans to operationalize a Selibe-Phikwe SEZ to focus on horticulture, additional SEZs in Lobatse for beef and leather, and another to target agriculture in Pandamatenga.

The Zambezi Agro-Commercial Development Project in northern Botswana will develop infrastructure and agricultural production on a large commercial scale.  In addition to job creation, this project intends to encourage private investment in the agricultural industry.  The Government of Zimbabwe has raised objections to the GOB’s plans to divert water to irrigate this project.

There is considerable potential for the development of entrepreneurial fish farming.  Currently it is not conducted on a commercial scale and is confined mainly to the Chobe River and Okavango Delta.
 

Web Resources

Ministry of Agricultural Development and Food Security: www.gov.bw/government/ministry_of_agriculture.html 
U.S. Foreign Agricultural Service: www.fas.usda.gov 
Ministry of Investment, Trade, and Industry: www.mti.gov.bw 
Botswana Unified Revenue Service: www.burs.org.bw

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.