Analysts urge government to diversify economy

Financial analysts in Botswana have urged the government to pay more attention to declining agricultural production, noting that the current overreliance on diamonds could pose a threat to future economic growth. The Botswana Institute of Development and Policy Analysis (BIDPA) warned that the government's monopoly of the beef and ostrich industries was responsible for declining output, and commented that in recent years the state-run Botswana Meat Commission (BMC) had failed to meet its annual export quota to the lucrative European Union (EU) market. In a paper presented to beef industry stakeholders, BIDPA noted that government control of the meat commission was largely responsible for the uncompetitiveness of the cattle market, which had led to several livestock farmers opting to invest in other sectors. It warned that the decline in the livestock industry would have serious consequences for the country's largely rural population. According to figures released last week by the Central Statistics Office, the national cattle herd declined from 3 million in the late 1980s to around 1.7 million this year. Recurrent outbreaks of foot-and-mouth, among other animal diseases, have also depleted the national herd, due to mass slaughters to stop the diseases from spreading. In a media statement last week, the government-controlled Botswana Ostrich Commission (BOC) said its only abattoir would be closed indefinitely at the end of June, because local farmers were failing to supply the 20,000 birds needed to meet the annual EU export quota. The BOC entered the EU market less than a year ago, but has fallen far short of its annual target, slaughtering only 570 birds in 2003 and 1,115 in 2004. As a result of the closure at least 45 ostrich farmers, who were trained and financed to supply the commission, will have to find alternative consumers in the domestic market. The Minister of Minerals, Energy and Water Affairs, Charles Tibone, recently told the Botswana Press Agency that reliance on the country's lucrative mineral industry had led to wholesale neglect of the agriculture sector, including crop and livestock production. He called on the government to diversify the economy, adding that greater support should be directed towards bolstering agricultural development. "We need to venture into nontraditional activities, like bee-keeping, game and ostrich farming, on a commercial scale. Government should not seek to replace the private sector, and should withdraw from activities that can be better done by the private sector," Tibone was quoted as saying. Calls to end Botswana's dependence on diamond wealth as the mainstay of the economy are mounting. In its economic blueprint for the 2005-2009 period, the Botswana National Productivity Centre said output needed to diversify as soon as possible, and cautioned that the boom in the world diamond trade would not last forever.