Botswana’s foreign minister has urged the EU to increase its investment efforts in the country. This is especially true given the significant impact of a 37% trade tariff imposed by the Trump administration.
As the African Union and European Union foreign ministers commit to strengthening collaboration in areas like peace, security, and economic development, Botswana is appealing for more strategic EU-led investments.
In an interview with Euronews during the third EU-AU ministerial meeting in Brussels, Foreign Minister Phenyo Butale said that Botswana is open for business and sees potential for closer ties with the EU, building on an already strong relationship.
“There is room for us and Europe and Belgium to reimagine this relationship and ensure that we improve our trade and ensure that Botswana and Europe benefit mutually from this relationship,” he stated.
Foreign Minister Butale's appeal for increased trade and investment from the EU comes in response to a 37% trade tariff imposed by US President Donald Trump, a move that has severely impacted Botswana, one of Africa’s most affected countries.
The nation’s economy, which depends heavily on diamond exports, shrank by 3.1% last year due to weakened global demand for the precious stones.
Once hailed as the world’s fastest-growing economy, Botswana ranks just behind Russia in diamond exports. However, its gems are generally larger and regarded as more valuable.
This year, Botswana's economy is forecast to grow by 3.3%, driven by an anticipated rebound in the global diamond market and “continued positive sentiment in the non-diamond mining sectors,” according to Finance Minister Ndaba Gaolathe during his budget speech in February.
However, that optimism is now under scrutiny, as concerns grow over potential disruptions to global trade supply chains triggered by the Trump administration’s tariff war.
These developments could have lasting consequences for exporters like Botswana that are seeking to diversify beyond their traditional trade partners.
Despite these challenges, Butale underscored that Botswana’s relationship with the United States continue to remain strong.
“We are engaged with the government of the US through bilateral and diplomatic channels. We have an excellent relationship with the US and believe this relationship, which has existed for years, will be able to ensure an amicable and mutually beneficial solution for both countries.”
In 2023, Botswana’s total exports reached approximately €5.4 billion, with less than 2% destined for the US. Much of this trade occurred under the African Growth and Opportunity Act (AGOA), which grants duty-free access to the US market for most exports from qualifying sub-Saharan African countries
The agreement is set to expire this September, representing a crucial moment for determining the future of the program.