The commitment was made during a high-level business forum held in Gaborone, which brought together government officials, private-sector representatives and development partners to identify areas where companies from both countries can collaborate under the continental free trade agreement. Organised by Business Botswana and the Botswana Investment and Trade Centre (BITC) as part of a Nigerian trade mission, the forum sought to facilitate direct business-to-business engagements between private-sector companies from the two nations.
Business Leaders Call for Practical Action
Business Botswana Chief Executive Officer Tumi Mbaakanyi called on stakeholders to pursue "targeted, result-oriented policy measures" aimed at creating a more efficient and conducive trading environment between Botswana and Nigeria. Officially opening the forum, she highlighted the longstanding diplomatic relations between the two nations, founded on mutual respect and cooperation, while noting that significant opportunities remain for expanding bilateral trade, investment and private sector collaboration.
"May today's session be more than just a discussion, but a reflection of a belief that meaningful economic transformation happens when governments create enabling environments for businesses to invest, innovate and collaborate," Mbaakanyi said.
Botswana's Deputy Permanent Secretary Prof. Goemeone Mogomotsi warned that AfCFTA opportunities would not materialise automatically, while Business Botswana CEO Tumi Mbaakanyi stressed that trade agreements must translate into concrete business partnerships.
Botswana Positions Itself as Gateway to SADC
Botswana is pitching itself as a gateway for Nigerian businesses seeking access to the 16-member Southern African Development Community (SADC), with officials using the forum to showcase the country's investment climate and preferential market access under AfCFTA.
Botswana Investment and Trade Centre Export Promotion Manager Calvin Ketshabetswe highlighted that Nigerian businesses could trade and invest in Botswana while using the country as a production and distribution hub for the wider Southern African market.
"Botswana offers a stable, high-income gateway into SADC and the Southern African Customs Union," Ketshabetswe said.
He noted that both countries have gazetted their provisional schedules of tariff concessions, enabling qualifying products to trade under AfCFTA's preferential rules once they satisfy the agreement's Rules of Origin requirements. The continental free trade agreement extends beyond tariff reductions by addressing non-tariff barriers, trade facilitation, investment and digital trade, creating conditions for businesses to establish regional value chains instead of simply exporting goods across borders.
Potential Sectors for Collaboration
Nigeria's High Commissioner to Botswana, John Shama Shaga, identified potential cooperation in sectors including agro-processing, manufacturing, textiles, tourism and financial technology, particularly through cheaper and faster cross-border payment systems.
BITC has identified immediate opportunities for Nigerian investors in agro-processing, pharmaceuticals, personal care and cosmetics, textiles and apparel, light manufacturing, logistics, fintech and digital services. Additional opportunities exist in mining and mineral beneficiation, renewable energy, tourism, agribusiness and business services—sectors that align with Botswana's economic diversification agenda.
Botswana's government priority areas presented to delegates included energy security and renewable transition, logistics infrastructure, digital transformation, healthcare, mining and agriculture, positioning these sectors as areas where Nigerian capital, technology and expertise could support national development while creating regional export platforms.
Investment Incentives
To strengthen its investment proposition, BITC highlighted a range of fiscal and regulatory incentives designed to attract regional manufacturers and investors. These include a preferential 15 percent corporate tax rate for manufacturers, International Financial Services Centre entities and innovation hub companies, compared to the standard 22 percent rate; tax holidays of up to 10 years under the Development Approval Order; and tax rebates of up to 200 percent. Investors can also benefit from customs and VAT rebates on imported machinery and raw materials, while Special Economic Zones offer additional incentives including corporate tax rates as low as five percent, transfer duty exemptions and long-term land leases.
Digital Payments and Trade Facilitation
Digital payments were a major focus of the discussions, reflecting one of the primary barriers affecting intra-African commerce. High transaction costs, currency conversion challenges and limited payment connectivity have often increased the cost of cross-border trade. The Pan-African Payment and Settlement System (PAPSS), supported by Afreximbank, is designed to allow businesses to settle transactions in African currencies and reduce reliance on foreign currencies, potentially lowering the cost and complexity of trade between Botswana and Nigeria.
The Nigerian delegation also explored commercial opportunities beyond government discussions, including product showcases at Botswana retail chains such as Choppies and Sefalana, where businesses examined possible routes into the local market.
Presidential Endorsement
The push for stronger ties received high-level endorsement when Botswana's President Duma Gideon Boko described the AfCFTA as a key driver of Africa's economic integration. Following the presentation of credentials by Nigeria's High Commissioner Ambassador John Shama Shaga, President Boko expressed support for the proposed areas of cooperation, highlighting significant opportunities for collaboration in the tourism and legal sectors.
"The AfCFTA presents a unique opportunity to deepen economic integration across the continent, while sectors such as tourism and legal services offer immense potential for stronger bilateral cooperation," President Boko said.
Ambassador Shaga reaffirmed Nigeria's commitment to strengthening the long-standing friendship and mutually beneficial cooperation between both countries, identifying key areas for enhanced collaboration including trade and investment, agriculture, particularly the livestock sector, creative industries, financial technology and tourism.
Current Trade Volumes
Available trade statistics indicate considerable room for growth. Botswana's exports to Nigeria declined from approximately US$1.4 million in 2023 to US$147,000 in 2024, while imports from Nigeria decreased from US$376,000 to approximately US$161,000 during the same period.
Botswana's exports to Nigeria are currently dominated by wooden office furniture valued at $54,000, followed by raw hides and skins worth $34,000, leather products ($10,000), raw swine hides and skins ($9,000) and machinery parts ($9,000). Imports from Nigeria are led by commodities ($57,000), medicaments ($33,000), hair preparations ($8,000), human hair products ($7,000) and beauty or make-up preparations ($5,000).
BITC argues that these relatively low trade volumes should not be viewed as a limitation but rather as evidence of untapped potential. With preferential market access, reduced trade costs and stronger commercial partnerships, bilateral trade can expand rapidly under AfCFTA while moving into higher-value manufacturing and value-added production.
What Happens Next
The successful implementation of AfCFTA trade opportunities between Botswana and Nigeria has the potential to strengthen bilateral economic relations, promote private-sector collaboration and contribute to broader continental economic integration. The UNDP has highlighted its commitment to supporting inclusive economic growth, particularly by ensuring that women, youth and small, medium and micro enterprises benefit from market opportunities arising from the implementation of the AfCFTA.
UNDP Deputy Resident Representative Josephine Lewis said it was important for small businesses to develop a sound understanding of AfCFTA trade protocols, including rules of origin, goods classification, certification requirements and market-access procedures.
"We stand ready to support governments and private-sector entities in realising the AfCFTA vision and encourage them to use platforms such as these for tangible outcomes in building lasting connections that drive prosperity across Africa," Lewis said.
With reporting from Daily News Botswana, Ecofin Agency, Business Weekly Botswana and Voice of Nigeria.
