Botswana's Minister of Trade and Entrepreneurship Tiroeaone Ntsima emphasized strengthening economic cooperation with China while expressing concerns over potential U.S. diamond tariffs on the sidelines of the fourth China-Africa Economic and Trade Expo that opened Thursday in Changsha.
The four-day event, themed "China and Africa: Together Toward Modernization," has drawn nearly 4,700 companies and over 30,000 participants. Organizers said the volume involved in preliminary agreements on cooperation projects exceeded 11 billion U.S. dollars.
Botswana stands as a model of development in Africa, boasting political stability, robust economic growth, and close multi-sector cooperation with China.
In an interview with China Global Television Network (CGTN), Ntsima highlighted the growth of Chinese investment in manufacturing, construction, and services.
"Well since the beginning of the relationship, there has been a lot that has been going between the two countries. We've seen some Chinese companies, some of them settling in Botswana producing some goods. We have also seen some service-related companies from China going to Botswana to provide services. We've also seen a lot (of Chinese companies) in the construction industry, most civilian building that China has contributed to. But over time also we've seen our societies interacting. We have now Chinese people who have taken residence in Botswana who are now our brothers in the country," Ntsima said.
The Botswana Minister then said that proposed U.S. tariffs could severely impact Botswana's diamond-dependent economy, which already lacks growth momentum.
"The actioning of these tariffs would be dire for Botswana, because our main export to the United States are diamonds. And as you know, diamonds are our major export products, and the diamond has been the one holding onto our economy which makes up 63 percent of what we sell out to the U.S. market, and also a larger contributor of our GDP. So if the tariffs were to come into place that would be very dire for our economy. In the current environment of course that we are already experiencing of the diamonds not selling as they used to," he said.
China is ready to negotiate and sign the agreement of China-Africa Economic Partnership for Shared Development to implement the zero-tariff treatment for 100 percent tariff lines for 53 African countries which have diplomatic relations with China. China will provide more convenience for the least developed countries in Africa to export to China.
Ntsima pointed to China's zero-tariff policy for African goods as a growth opportunity.
"China is another market that is opening up, I mean, we'll take advantage of that, because it would have a very good impact on our economy. If more people buy our products, that means we can produce more, and producing more would need more labor. So we'll create more employment for the people of Botswana. And if more people are working, then more people start paying tax. Then there is of course the leverage for government also in terms of collecting tax to have money to subsidize government programming," he said.
"Zero-tariff regime, that means that it is good for our market, especially for a country like ours that does not have much to produce or export. And I think because we're also attending these events like the one that we are attending today, is also to bring investors from China through this relationship. So that they can set up in Botswana manufacturing plants and other things, also to contribute to the economy of Botswana," Ntsima said.
Botswana trade minister commends strengthened ties with China
