By Oscar Habeenzu | for Moakanyi Magazine
It is to Botswana’s economic benefit that the Zimbabwean economy remains in Drama Queen Mode (DQ Mode). In fact, it is very beneficial for not only Botswana, but Zambia, Mozambique, and South Africa, to keep Zimbabwe in DQ Mode. DQ Mode is basically political ups and downs toward a democratic destination which is never achieved.
The Southern African Development Community has fostered this drama queen mode due to various reasons that have manifested in these countries benefiting enormously from exports to Zimbabwe as individual countries. Business is business, and not politics, and many a times citizens of a country do not realise that when it comes to neighbouring countries; it is time that Batswana realise that about Zimbabwe.
According to Harvard University’s economic data portal, from 2008 to 2017, Botswana has made P14 Billion (US$1.356 Billion), the bulk of the exports being salt, paper, cars, construction material, petrol, food, soap, blankets, nickel, sulphates and more.
Botswana has relied on Zimbabwe, as it imported Cotton, Wood, Cement, Sugarcane, Aircraft Spares, and Tea from Zimbabwe of the last decade to 2017.
Zimbabwean Immigrants
Statistics Botswana states that migrants are employed in agriculture, mining and quarrying, manufacturing, electricity and water, construction, wholesale and retail trade, hospitality, transport and communications, finance, real estate, education, health, private households, and foreign missions.
In the 2011 Botswana Population Census, the Statistics Botswana estimates the number of migrants from Zimbabwe at 66, 777, out of the 111,846 immigrants, a whopping 60%.
According to a survey conducted by Finmark Trust, Zimbabwean Immigrants send an average P400,000 back to Zimbabwe to their families, amounting to about P4.8 million a year.
Productivity and Bilateral Agreements
Other than the SADC agreements, there is one known agreement between the two countries. In terms of the Botswana/Zimbabwe Trade Agreement, goods originating from either of the trading partners are exempted from payment of customs duties on condition that the goods meet a minimum 25% local content. Excise duty and local taxes, such as VAT, are due and payable where applicable.
To date this has benefited Botswana more than Zimbabwe, due to productivity, as Botswana’s industry is more capitalised than Zimbabwe’s industry, which the is estimated to operating at 20% of capacity (2018).
If the economic drama queening in Zimbabwe continues, there could be more outsourcing of manufacturing by Zimbabwe to Botswana, considering that the manufacturing capital of Zimbabwe, Bulawayo, is a few kilometres away from the Botswana border. It would make sense for Bulawayo based manufacturing industries to partner with Botswana investors, to supply their Zimbabwean markets.
Opportunity Cost of Pride
Clearly the issue with Zimbabwe has nothing to do with economics, but pride, that has affected how the economy is governed, and that pride must benefit its neighbours, as they can not only gain a cheaper labour force, but also taking over certain industries that fed the continent like Manufacturing and Agri-processing.
Source: Harvard University, Finmark Trust, Botswana Government,
