Economic diversification has been the priority concern in recent and current national development plans (NDP 9&10). Given the agricultural sector’s decreasing share in GDP, there is a need to diversify agricultural production and promote the potential for investment in agro-industrial and supply chain development.
Grain/fruits and vegetables Value Chains Investment
Botswana is a Net Food Importing Developing Country (NFIDC) the opportunity to increase domestic production of basic foodstuffs, particularly cereals (grain sorghum and maize) and pulses. Cereal national demand stands at 200 000 tons per year, of which only 17% is supplied through local production. Investments in arable agriculture will; stimulate private sector development, create employment, create value-addition opportunities, and enhance food security and ultimately exports.
The Pandamatenga agricultural Infrastructure development project, located in an area receiving the highest average annual rainfall, could create spin-offs in sunflower processing instead of exporting sunflower production for processing. The Zambezi Agro-commercial Development Project presents another investment opportunity. The Zambezi River will supply irrigation to will help increase 20 000 hectares of agricultural development.
Similarly, recommendations from the National Master Plan for Arable Agricultural and Dairy Development (NAMPAADD)report identify projected irrigation in Mmadinare-Tobane (750 hectares), supplied by Shashe Dam, and in Selebi-Phikwe (1,019 hectares) supplied by Letsibogo Dam. Spin off investment opportunities of these projects include horticulture packaging and gross sales to domestic and international markets at standardized rates. Tomato paste production is an existing opportunity, utilizing surplus tomato production, and opens the possibility to other food packing opportunities.
Livestock Value Chains Investment
Dairy farming has been identified as a potential area of growth and investment in the domestic agricultural sector. A notable challenge is the cost of feed, which creates an additional investment opportunity for domestic feed production.
Botswana is renowned for cattle farming and potential exists to expand the rawhide processing and tanning industries. A study on the Economic Diversification of Selebi-Phikwe, in 2006 noted that Botswana produces around 360,000 cattle hides per year, with the majority being exported in raw form.
Pork/Beef Products; Botswana is a net importer of pork products. According to the 2011 LEA study on pork value chain development in Botswana, in 2008/09, local pork production stood at 441.1 million tons while imports were 952 million tons. Traditional suppliers of pork products are South Africa and Namibia. The Southern African Customs Union (SACU) Region has a net import demand currently met by supply from Brazil, offering a regional market for pork exports. There are opportunities to invest in pig rearing, slaughter facilities, and grain/feed production. Botswana has exported fresh and frozen beef products to Europe since Independence. Further investment opportunities exist in domestic production; fodder/feed production; transportation and processed meat for domestic and export markets.
Further Information can be sourced from the Agriculture Hub at +267 3689092.
Opportunities in this Sector
See below for the opportunities in this Sector accross various districts in Botswana...