RESTRICTED  
  
WT/TPR/G/324  
30 September 2015  
(15-5056)  Page: 1/48  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
SOUTHERN AFRICAN CUSTOMS UNION (SACU) 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by SACU is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on SACU. WT/TPR/G/324 • Southern African Customs Union 
 
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  Contents 
BOTSWANA ......................................................................................................................  5 
1   INTROD UCTION  .......................................................................................................... 5  
2   BOTSWANA'S MACROECONOMI C POLICY DEVE LOPMENTS .......................................... 5  
2.1   Gross Domestic Product .............................................................................................. 5  
2.2   Fisca l Policy ........................................................................................................... ... 5 
2.3   Monetary Policy ......................................................................................................... 6  
2.4   Economic Outlook ...................................................................................................... 6  
3   TRADE AND TRADE RELATE D POLICY DEVE LOPMENTS ................................................ 7  
3.1   Trade Policies and Strategies ....................................................................................... 7  
3.2   Multilateral, Regional and Bilateral A rrangements ........................................................... 7  
3.3   Competitio n Legislation .............................................................................................. 8  
3.4   Protection of Intellectu al Property and Copyrights .......................................................... 8  
3.5   Government  Procurement ........................................................................................... 8  
4   SECTORAL POLICY  DEVELOPMENTS ............................................................................ 8  
4.1   Manufacturi ng Sector ................................................................................................. 8  
4.2   Agriculture Sector ...................................................................................................... 9  
4.3   Mining Sector ............................................................................................................ 9  
4.4   Services Sectors ....................................................................................................... 10 
4.4.1   Financial ............................................................................................................... 10 
4.4.2   Tourism ................................................................................................................ 10 
4.4.3   Comm unications .................................................................................................... 10 
4.4.4   Transportation ....................................................................................................... 10 
4.4.5   Energy ................................................................................................................ . 11 
5   TRADE–RELATED TECH NICAL ASSIST ANCE ............................................................... 11  
6   CONC LUSION............................................................................................................. 11  
LESOTHO ........................................................................................................................ 12  
1   INTROD UCTION  ........................................................................................................ 12  
2   MACROECONOMI C ENVIRONM ENT ............................................................................ 12  
3   PERFORMANCE OF  MAJOR SECTORS .......................................................................... 13  
3.1   Primar y Sector ......................................................................................................... 13 
3.2   Second ary Sect or ..................................................................................................... 14 
3.3   Tertia ry Sect or .........................................................................................................  15 
4   TRADE AND TRADE RELATE D POLICY DEVE LOPMENT ................................................ 15  
5   REGIONAL AND MULTILAT ERAL TRADE RELATIONS .................................................. 16  
6   AID FO R TRADE ......................................................................................................... 17  
7   CONC LUSION............................................................................................................. 18  
NAMIBIA ....................................................................................................................... . 19 
1   MACROECONOMI C ENVIRONM ENT ............................................................................ 19  
1.1   Agriculture and forestry ............................................................................................. 20 WT/TPR/G/324 • Southern African Customs Union 
 
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  1.2   Fishing and fish processing on board ........................................................................... 21 
1.3   Mining and quarrying ................................................................................................ 21 
1.4   Manuf acturi ng .......................................................................................................... 22 
1.5   Electric ity and water ................................................................................................. 22 
1.6   Cons truction ............................................................................................................  22 
1.7   Wholesale and retail trade ......................................................................................... 22 
1.8   Hotels an d restau rants .............................................................................................. 23 
1.9   Transport an d communica tion .................................................................................... 23 
1.10   Financial intermediation ........................................................................................... 23 
1.11   Real Estate, renting and business services .................................................................. 23 
1.12   Public Administration ............................................................................................... 23 
1.13   Ed ucation ..............................................................................................................  23 
1.14   Health ................................................................................................................... 23 
1.15   Savings an d Invest ment .......................................................................................... 24 
1.16   Inflation an d GDP Deflator ....................................................................................... 24 
1.17   Exports, Import s and Trade Balance .......................................................................... 24 
1.18   Key Export  Market s 2014  ......................................................................................... 24 
1.19   Key Import Markets for 2014 .................................................................................... 25 
1.20   Trade in  services .................................................................................................... 25 
1.21   National Developmen t Plans and Vi sion 2030 .............................................................. 25 
2   NEW TRADE REFORMS ............................................................................................... 26  
2.1   Industri al Policy .......................................................................................................  26 
2.2   Invest ment Act ........................................................................................................ 27 
2.3   Export Processi ng Zone (E PZ) Act ............................................................................... 28 
3   TRADE POLICY .......................................................................................................... 29  
3.1   Trade Facili tation Me asures ........................................................................................ 29 
3.2   Trade Poli cy Fram ework ............................................................................................ 30 
4   REGIONAL AND BILA TERAL ARRANGEMENTS ............................................................ 30  
4.1   Africa Growth Opportunity Act (AGOA) ......................................................................... 30 
4.2   COMESA-EAC-SADC Trip artite-FTA Ne gotiations ............................................................ 31 
4.3   SACU-EFTA FTA ........................................................................................................ 31 
4.4   SACU – INDIA PTA NEGOTIATIONS ............................................................................. 32 
4.5   SADC EPA ............................................................................................................... 32 
4.6   SADC FTA ................................................................................................................ 32 
4.7   Continental Free Trade Area (CFTA) ............................................................................ 32 
4.8   Participation in the Mult ilateral Trading System - WTO ................................................... 33 
5   CONC LUSION............................................................................................................. 34  
REFERENCES .................................................................................................................. 3 5 
SOUTH AFRICA ............................................................................................................... 36  
1   INTROD UCTION  ........................................................................................................ 36  WT/TPR/G/324 • Southern African Customs Union 
 
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  2   DEVELOPMENTS IN THE MACRO-ECONOMY ............................................................... 36  
3   RELATED POLICY DEVELOPMENTS ............................................................................. 37  
3.1   Trade Policy and Strategy Framework (TPSF) ................................................................ 37 
3.2   New Growth  Path (NGP) ............................................................................................ 37 
3.3   Industrial Policy Action Plan (IPAP) .............................................................................. 38 
3.4   National Deve lopment Plan  (NDP) ............................................................................... 38 
4   TRADE-RELATED PO LICY DEVELO PMENT ................................................................... 39  
4.1   Agriculture ............................................................................................................. . 39 
5   INTERNATIONAL ARRANGEMEN TS AND TRADE NEGOTIATIONS ................................ 39  
5.1   The Economic Part nership Agreem ent (EPA) ................................................................. 39 
5.2   The African Growth an d Opportunity Act (AGOA) ........................................................... 40 
5.3   The Group of  Twenty (G-20) ...................................................................................... 40 
5.4   Trade Facilitati on Agreemen t (TFA) ............................................................................. 41 
5.5   The Southern African Development Community (SADC) Trade Protocol, Southern 
African Customs Union (SACU), and Tripartite Free Tr ade Agreement ...................................... 41 
5.6   Multilateral Trade Negotiations in the WTO ................................................................... 42 
5.7   South-South Cooperation ........................................................................................... 43 
5.8   BRIC S Forum ........................................................................................................... 43 
SWAZILAN D ................................................................................................................... 4 4 
1   INTROD UCTION  ........................................................................................................ 44  
2   OVERVIEW AND ECON OMIC PERFORMANCE .............................................................. 44  
3   ECONOMIC DEVELOPMENT AND REFORM IN ITIATIVES ............................................. 44  
3.1   Improvement in revenue collection, management and diversification of the revenue 
base .......................................................................................................................... .... 45 
3.2   Attraction and retention of Foreign Dire ct Investment and support of Small, Medium 
and Micro-Scale Ente rprises (SMMEs) ................................................................................. 46 
3.3   Industrial and Agricultural Developm ent as a catalyst fo r economic growth ....................... 46 
3.4   Tourism an d job creation ........................................................................................... 47 
4   IMPLEMENTATION OF MULTILATERAL AND REGIONAL AGREEMENTS AND 
OBLIGATI ONS ................................................................................................................ 47  
5   CONC LUSION............................................................................................................. 48  WT/TPR/G/324 • Southern African Customs Union 
 
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  BOTSWANA 
1  INTRODUCTION 1.1.  The purpose of this report is to highligh t Botswana's macroeconomic policy developments as 
well as trade and trade related policy developments. The report further discuss trade opportunities 
to be exploited in order to drive the country's econ omic growth. This report is prepared at a time 
when, even though the economy is showing signs of recovery from the global financial crises, 
there are still some challenges.  
1.2.  Botswana's national objectives of economic growth and development, economic 
diversification, agriculture and industrial development are enshrined in the National Development Plan (NDP 10) and Vision 2016. In line with the Vision 2016, the objective of prosperity for all, 
employment creation and eradication of abject poverty remain critical objectives for the NDPs. The 
midterm review of the NDP 10 conducted in 2012 recommends that focus for the remaining years 
of NDP 10 should be on creating a private sector enabling and supportive policy environment; stimulating increased domestic and foreign direct investment; and enhancing competiveness in 
both goods and services markets. These national objectives serve as the foundation for the 
country's continued economic growth. 
2  BOTSWANA'S MACROECONOMIC POLICY DEVELOPMENTS 
2.1  Gross Domestic Product 
2.1.  The outlook for Botswana is for a sustaina ble and inclusive economic growth. The country has 
experienced political stability and rapid econom ic growth since independence, but during the 
2008/09 economic and global financial crisis growth slowed down. Nevertheless Real Gross 
Domestic Product (GDP) has grown at an average rate of 3.5% between 2008 and 2014. According 
to the 2015/16 budget strategy paper, real GDP accelerated to 5.8% in 2013 compared to a lower rate of 4.3% recorded in the preceding year. The economic outlook was positive for 2014 due to 
positive developments in the non-mining sectors; such as Trade, Hotels & Restaurants, Finance 
and Banking as well as Social & Personal Services . Government policy is ai med at diversifying the 
economy and the sound performance of the non-mining sectors is creditable as it suggests 
promising steps towards economic diversification.  
2.2.  Key amongst Government policy has been diversification within the mining sector. The 
short-term prospects are robust with economic growth expected to remain at around 5% per annum through to 2015, mainly premised on downst ream manufacturing on the back of the recent 
relocation of De Beers' diamond-sorting and sales activity from London to Gaborone, as well as the 
attraction of a range of complementary activities.  
2.3.  Despite its middle-income status, Botswana has to contend with challenges emanating from 
its narrow economic structure and the attendant over-dependence on the mining sector, in 
particular diamonds. Even though Botswana has a reputation for the prudent management of mining revenues, the need for diversification remains critical. Other key challenges include 
productivity, easy of doing business and human capital development. 
2.2  Fiscal Policy 2.4.  Macroeconomic developments in Botswana have been guided by Vision 2016, a policy vision 
that sets socio-economic indicators for economic growth and poverty reduction. These are 
reflected in the tenth National Development Plan (NDP10), which has been running since 2009 and 
will come to an end in 2017 after Government en dorsed in 2014 that NDP 10 be extended by one 
more year. Preparations for NDP 11 have commenced and it is expected to outline a collection of 
development policies and strategies which will be  due for implementation during the 2017/18 to 
2021/22 period. NDP 11 is expected to review performance of NDP 10, identify emerging 
challenges and provide a development path dict ated by the prevailing economic and social 
dimensions. While subsequent NDPs have focused on increased diversification of the domestic 
economy and accelerated real GDP growth, NDP 11 w ill employ a broader goal of inclusive growth 
and sustainable development.  WT/TPR/G/324 • Southern African Customs Union 
 
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  2.5.  Government has invested earnings from diamonds in key infrastructure areas covering 
education, health, clean water, road network,  and telecommunications to create a conducive 
environment for growth and a better standard of living for citizens. Other policy measures aimed 
at strengthening public financial management and improving the budgeting process have also been 
put in place over the years and will form part of  the critical Government policy. These initiatives 
have been facilitated by the development of a Medium Term Macro Fiscal Framework in 2012. In 
this regard, Government has shifted its priorities to the maintenance of existing infrastructure, 
completing on-going projects as well as investing on high rate of return and self-liquidating 
projects. This is combined with other ongoing Government initiatives of out-sourcing some activities, as well as privatization and rationalization of parastatals.  
2.3  Monetary Policy 
2.6.  Monetary policy, implemented by Bank of Botswana (BoB) aims to achieve a low and 
sustainable level of inflation. Prior to 2008, the Ba nk's price stability was specified in terms of a 
range to be achieved over the coming year. Howeve r, from 2008, it has been defined as a range to 
be achieved over a medium-term horizon, and is currently set at 3-6%. This refers to the annual 
rate of change in consumer prices as measured by the Consumer Price Index (CPI). In this framework, the policy horizon is a rolling 3-year period, which is considered appropriate given the 
long lags in the transmission of monetary policy decision to affect price developments. The 
medium-term horizon satisfies three conditions for the effectiveness of monetary policy; it anchors inflation expectations around the objective; it is consistent with the period covered by the inflation forecast; and it is a reasonable period for policy action to take effect. Average national inflation 
rate has generally been on a downward trend for the past eight years, but reached an all-time high 
of 15.1% in November 2008, reduced to 4.1% in December 2013 and has since declined to 3.8% in December 2014 (2.8% in February 2015).  
2.7.  BoB is also responsible for implementing the exchange rate policy. Containing inflation within 
the medium-term inflation objective range of 3–6% contributes to the stability of the Real Effective Exchange Rate (REER) to maintain international competiveness of domestic industries and hence 
signals the broader objective of economic diversification. Easing inflation allowed BoB to cut the 
Bank policy rate by a cumulative 200 basis po ints in 2013, from 9.5% in March to 7.5% in 
December which supported domestic investment and GDP growth. Given the state of the economy, both domestic and external, the Monetary Policy Committee concluded in September 2014 that 
medium-term outlook for price stability remains positive, with inflation forecast within the 3–6% 
objective range and thus maintained the Bank Rate at 7.5%. 
2.4  Economic Outlook  
2.8.  Despite continued uncertainty over the global economic recovery, the domestic economic 
outlook remains positive. Real GDP is estimated to have grown by 5.2% in 2014, and forecast to grow at a slower rate of 4.9% in 2015. Such posi tive growth is mainly driven by the non-mining 
sectors including Trade, Hotels & Restaurants, Finance and Banking, and Social & Personal 
Services. Furthermore, the developments envisaged for these sectors are expected to contribute to 
the growth of the non-mining sectors in the future, hence contributing to growth and economic diversification, thus creating employment opportunities, and empowering citizens. 
2.9.  A positive domestic economic outlook as shown by some major economic indicators 
characterized by low debt levels as confirmed by external organizations such as Moody's Investors Service, provides a basis for domestic and foreign investment in the country. Similarly, a 
supportive monetary policy that has ensured stabilit y of the Real Effective Exchange Rate should 
promote competitiveness of domestic enterprise s in the global market. The prospect of low 
inflation also has the potential to impact positively on the standard of living of Batswana. Given 
this conducive macroeconomic environment, we expect the private sector to take the lead in 
driving economic growth and employment creation. WT/TPR/G/324 • Southern African Customs Union 
 
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  3  TRADE AND TRADE RELATE D POLICY DEVELOPMENTS 
3.1  Trade Policies and Strategies 3.1.  The National Trade Policy of 2009 defines how Botswana conducts her trade with bilateral, 
regional and multilateral trading partners and the si gnificant role played by the private sector. It is 
designed to facilitate the achievement of the br oadest possible free and reliable access to markets 
for the country's exports of goods and services, while also enabling producers and consumers to access the widest choices of international goods and services on the best possible terms.  
3.2.  Botswana approved the revised Industrial Development Policy (IDP) in July 2014. The 
objective of the IDP 2014 is to expand the country 's industrial base through the development of 
diversified, sustainable and globally competitive industries; and focus on the export led growth, while simultaneously exploring other sectors with potential to drive industrial growth. It is 
expected that through the development of globally competitive and sustainable enterprises, 
Botswana will become an investment destination of choice, thus growing the industry base and creating sustainable enterprises. This is complemented by the Economic Diversification Drive 
Strategy (2011) and the Botswana National Expo rt Strategy 2010-2016 as well as mandate given 
to Botswana Investment and Trade Centre (BITC) to promote trade and investment into priority sectors. Botswana is also in the process of developing Special Economic Zones (SEZ) legislation, 
following conclusion of the Special Economic Zones policy in 2010. To benefit from these 
developments, Government developed the Citizen Economic Empowerment Policy (CEE Policy) of 
2012 with the object of developing citizen capacity to enable their full participation at all levels of economic development.  
3.3.  Through the Investment Strategy and other strategies like the National Export Strategy, 
Botswana is making positive strides towards econ omic diversification. The Ministry of Trade and 
Industry (MTI) is in the process of developing an Investment Facilitation Law. The Law will 
establish a legal regime for foreign and domestic investment promotion and facilitation in 
Botswana. It will also enhance the attractiveness of the country as an investment location, whilst protecting the interests of both the State and th e Investor, by providing the latter with credible 
security guarantees, legal stability, clear regulations and rapid investment procedures. 
3.4.  Infrastructural development projects aimed at improving trade environment include 
commencement of construction of Kazungula Bridge linking Botswana and Zambia. The construction project commenced in December 2014 and is anticipated to be completed in 
December 2018. In addition, Botswana is in the process of establishing a One-Stop Border Post 
(OSBP) at the Botswana/Namibia border post of Mamuno.  
3.5.  In improving efficiency and effectiveness in service delivery as well as to reduce the costs to 
government associated with maintaining parastatals, Government implemented the Rationalisation 
Strategy adopted in 2009 by merging various parastatal organizations with similar mandates. This resulted in the establishment of new entities, among others the Botswana Investment and Trade 
Centre (BITC) whose primary objective is to promote Botswana as an investment destination of 
choice to investors and to attract export oriented investments countrywide on a continuous basis and guided by existing opportunities and comparative advantages. Botswana Institute of Technology Research and Innovation (BITRI) is mandated to identify and/or develop appropriate 
technology solutions in line with national priorities and needs of Batswana. Human Resources 
Development Council (HRDC), an independent statutory body responsible for advising the Minister of Education and Skills Development on all human resource development policy issues was created 
in 2013. The HRDC also has executive responsibility  for national human resource development, as 
well as the planning, funding, monitoring, evaluation and regulation of tertiary education and workplace learning. Botswana Qualification Authority (BQA) is mandated to, amongst others, 
provide for and maintain the National Credit and Qualifications Framework (NCQF) as well as to 
coordinate the education, training and sk ills development quality assurance system. 
3.2  Multilateral, Regional and Bilateral Arrangements  3.6.  Botswana continues to pursue market access opportunities for her goods and services 
through her membership in SACU, SADC, SACU-EFTA, SACU MERCOSUR and WTO. Following the 
conclusion of the WTO Trade Facilitation Agreement in 2013, Botswana notified Category A WT/TPR/G/324 • Southern African Customs Union 
 
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  measures, and ratified Annex on adoption of Aid for Trade (AfT). With regard to bilateral, regional 
and multilateral trade arrangements, Botswana has successfully concluded the EU-SADC EPA negotiations and is engaged in a number of negotiations including, the COMESA-EAC-SADC Tripartite Free Trade Area, SACU-US TIDCA and SAC U-India Preferential Trade Area. The Economic 
Partnership Agreement (EPA) negotiations with the SADC EPA Configuration on the goods chapter 
have been finalized and Botswana initialed the Agreement in July 2014. All products (both agricultural and industrial products) have duty-f ree-quota free access into the EU market. The 
SADC EPA Trade in Services and Investment nego tiations are continuing and expected to be 
concluded in 2015. 
3.7.  In addition to the 2000 SADC Protocol on Trade, Botswana signed and ratified the SADC 
Protocol on Trade in Services in 2012 and 2013 re spectively, and negotiations are ongoing on the 
prioritized sectors of Communications, Tourism, Construction, Finance, Transport and Energy 
related services as identified by SADC.  
3.8.  With the view to implement the 2002 SACU Agreement, Government enacted the Botswana 
Trade Commission Act of 2013, which establishes the Botswana Trade Commission responsible for 
international trade administration.  
3.9.  Botswana/Zimbabwe Bilateral Trade Agreemen t was reviewed in 2010 with a view to improve 
its Rules of Origin (RoO) and facilitate more trade. Botswana had a positive trade balance with 
Zimbabwe in the period 2010-13. The trade flow between the two countries has generally improved, which was partly attributed  to the review of the agreement. 
3.10.  Botswana signed Bilateral Investment Treaties (BITs) with various countries. However, due 
to implementation challenges, there is a moratorium on BITs pending resolution of challenges. 
However, the SADC BIT Model of 2012 was adopted as a reference guide for future BIT negotiations. This harmonization of Investment Protection Agreements at SADC is expected to 
enhance cross-border trade and investments. 
3.3  Competition Legislation 3.11.  The enactment of Competition Act, 2009 led to the establishment of the Competition 
Authority in 2011 with the mandate to prevent and redress anti-competitive practices in the 
economy and remove constraints on the free play of competition in the economy. Furthermore, in 2015, Government decided to amend the Competition Act to cater for consumer protection which has been transferred to the Authority.  
3.4  Protection of Intellect ual Property and Copyrights 
3.12.  The Industrial Property Act was amended in  2010 to streamline certain provisions to enable 
the effective enforcement of Botswana's obligations under WTO Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS), the Patent Cooperation Treaty, and other emerging 
areas under Intellectual Property Laws and treaties.  
3.13.  The Companies and Intellectual Property Authority (CIPA) was established in 2011 as an 
autonomous entity to, among others, improve busi ness environment, and reduce turnaround time 
for starting a business and effective protection and administration of intellectual property rights.  
3.5  Government Procurement 3.14.  Botswana's procurement policy is driven by the objective of ensuring competition, fairness, 
value for money, efficiency, transparency, and ac countability in the management of government 
tenders. Government procurement in Botswana is open to all local and foreign owned investors. 
4  SECTORAL POLICY DEVELOPMENTS 
4.1  Manufacturing Sector 
4.1.  The manufacturing sector in Botswana co ntinues to experience a sluggish growth even 
though the sector has potential to contribute towards economic growth and employment creation. WT/TPR/G/324 • Southern African Customs Union 
 
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  The sector accounted for 5.6% and 5.2% of GDP for the years 2008 and 2013 respectively while 
employment level for this sector was 36 829 in 2012. The lowest share of manufacturing as compared to other sectors in 2013 can be attributed to the limited indigenous capital and skills as well as a limited input base and small market. The major manufacturing activities include but not 
limited to the following: Textiles; Food Products; and Wood Products. 
4.2  Agriculture Sector 4.2.  The National Policy on Agriculture Development of 1991 is under review, the review was 
informed by a number of macro and sector specific developments as well as international 
conventions and commitments, which have a bearing on Agriculture.  
4.3.  Sector specific changes that prompted the 1991 policy review included the Agricultural Sector 
Review of 2010 which noted that the 1991 Policy objectives were still relevant. The main 
augmentation required was to develop a comprehensive implementation plan for the revised 
policy. Other changes included introduction of domestic support programmes (Green box support). 
4.4.  Botswana has four (4) support programmes aimed at increasing agricultural productivity for 
low income or resource poor farmers. These are as follows:  
(i) Livestock Management and Infras tructure Development (LIMID) : provides support 
on dipping facilities (dip tanks and spray races), handling facilities (kraals and crushes), 
water sources (drilling and/or equipping of boreholes/well and reticulation), chaff cutters 
and fodder barn generally available to low–income or resource-poor producers; 
 (ii) Artificial Insemination Services : provides subsidies on semen, artificial insemination 
equipment, and bull fertility testing generally available to low-income or resource-poor 
producers; 
 
(iii) Integrated Support Programme for Arable Agriculture Development (ISPAAD) : 
provides supports on farm implements, fencing, and draft animals, water catchment tanks generally available to low-income or resource-poor producers. In order to augment 
Government efforts towards improving food security, the Government has further 
introduced Agricultural Services Support Pr ogramme (ASSP). Under ASSP Project activities 
will be implemented throughout the country, wherever the Government's new programme to support rain-fed agricultural development (ISPAAD) is operating. ASSP has two (2) 
operational components which are sustainable agricultural production and enabling 
environment for smallholder agriculture; and  
 
(iv) Transportation Support : the programme is generally available to defray costs of 
marketing produce for low-income or resource-poor producers in remote rural areas through Botswana Agricultural Marketing Board (BAMB), which is a state agency. 
 
4.5.  As part of implementing Sanitary and Phyt o-sanitary Measures (SPS) measures, Botswana is 
in the process of enacting a law on biotechnology and genetically modified organisms as well as protection of new plant varieties (intellectual property). 
4.3  Mining Sector 
4.6.  With the view to diversify the mining sector a number of initiatives have been undertaken. 
Firstly, Government launched in 2011 a coal beneficiation road map with the intent to monetize 
Botswana's massive coal resources. Secondly, the Diamond Trading Company (DTC) relocated its 
London-based sales activities to Botswana in 2013 as part of Diamond Beneficiation. Thirdly, a 
concept study of Base metals Beneficiation is on-going and lastly, Commonwealth Secretariat 
engaged (2012) to assist in the development of  a Mineral Policy for Botswana. The Policy will 
provide a diverse, comprehensive and user-friendly guide to investors and other key stakeholders on key issues pertaining to minerals development in Botswana. This would lead to the review of the Minerals Act.  WT/TPR/G/324 • Southern African Customs Union 
 
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  4.4  Services Sectors 
4.7.  The Main services contributions to trade are Communications, Tourism, Construction, 
Finance, Transport and Energy related services . These services forms a critical component 
Botswana's economy, contributing significantly to GDP as well as accounting a significant 
percentage of registered business and employment. To this end, Botswana has signed and ratified 
the SADC Protocol on Trade in Services in 2012 and 2013 respectively, and is engaged in negotiating the above prioritized sectors. In addition, negotiations on the SADC EPA Trade in 
Services are on-going and are expected to be concluded in 2015. 
4.4.1  Financial 4.8.  Bank of Botswana (BOB) and Non-Bank Financial Institutions Regulatory Authority (NBFIRA) 
supervise the financial sector in Botswana. BOB regulates banks and bureau de change while 
NBFIRA regulates the non-bank financial institut ions. The Banking Act, NBFIRA Act, Pension and 
Provident Funds Act as well as Insurance Act are being reviewed to align with new and unfolding developments in the financial sector.  
4.9.  The Securities Act was developed in July 2014 with the object to consolidate and amend laws 
relating to the regulation and supervision of the securities industry in Botswana as well as prohibit insider trading and other forms of market abuse. However, implementation of the Act is yet to 
commence.  
4.4.2  Tourism 4.10.  Government in 2009 reviewed the tourism legislative framework in order to create a 
conducive environment for tourism to thrive. The functions of the Botswana Tourism Board and the 
Department of Tourism were rationalized through the review of the Botswana Tourism Board Act of 
2004, Tourism Act of 1992 and Tourism Regulations of 1993. The instruments have been revised and enacted as follows: the Tourism Act of 2009, The Botswana Tourism Organisation Act of 2009 
and the Tourism Regulations of 2010.  
4.11.  The Tourism Policy of 1990 is being reviewed in recognition of tourism developments around 
the world. 
4.4.3  Communications 
4.12.  Enactment of the Communications Regulatory  Authority Act (CRA Act No.19 of 2012) led to 
the formation of the Botswana Communications Regulatory Authority (BOCRA). BOCRA regulates the communications sector in Botswana, comprising of Telecommunications, Internet, Information 
and Communications Technologies (ICTs), Broadcasting, Postal and related services. BOCRA is 
mandated to, amongst others, promote and ensure universal access to Communications Infrastructure and services in Botswana. 
4.13.  Government is in the process of privatizing Botswana Telecommunications Corporation 
Limited (BTCL). Privatization of BTCL will see 49%  of the company's shares reserved for citizens, 
and will be sold via an Initial Public Offeri ng (IPO), while Government will retain 51%. 
4.14.  In the financial year 2014/15 Government successfully completed the separation of BTC and 
formed a company called Botswana Fibre Networks Ltd (BoFiNet), which is licensed by BOCRA and is fully operational. BoFiNet is responsible for the provision of wholesale telecommunication services to other licensed operators. The company is also charged with the responsibility to deploy 
internet connectivity throughout Botswana. 
4.4.4  Transportation 4.15.  The importance of the transport sector to Botswana cannot be overemphasized. 
Government is developing an Integrated Transpor t Policy, with the objectives to, among others, 
ensure that the supply of transport is responsive  to user needs; better manage transportation 
costs; and improve standards of transport services. WT/TPR/G/324 • Southern African Customs Union 
 
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  4.4.5  Energy 
4.16.  In response to the electricity shortage, Government amended the Electricity Supply Act in 
2009 to allow Independent Power Producers (IPP) to participate in power generation. Botswana uses coal to produce electricity at Morupule.  
4.17.  With regard to petroleum, Government commissioned Botswana Oil Company in 
October 2014. The company's mandate is to maintain strategic stock reserves; ensure security of supply; and diversify petroleum products supply routes. 
5  TRADE–RELATED TECHNICAL ASSISTANCE 
5.1.  Trade-Related Technical Assistance (TRTA) remains critical in enabling Botswana to benefit 
from her international trade commitments and integrating into the multilateral trading system. Botswana needs technical assistance in the following areas:  
(i) Implementation of trade agreements 
•  Technical regulation and standards (Technical Barriers to Trade , Sanitary and 
Phytosanitary Measures) include: 
- Technical assistance to strengthen the animal health and plant protection services 
satisfactorily: this will cover training of agricultural border inspectors, training of professionals on issues of SPS and the multilateral trading system 
- building capacity on auditing and inspecti on competencies on standards that are 
specific to accreditation such as ISO 17020, ISO 17021, ISO 17065, and food 
safety management system, ISO 22000; 
•  Monitoring the implementation of trade agreements (a national monitoring system to 
verify the state of implementation of its obligations); and 
•  Analysis/ interpretation of trade agreements. 
 
(ii) Trade Negotiations 
• Capacity building on the formulation of negotiating positions and preparations for trade 
negotiations, including: quantitative trade flows and trade policy analysis; and data 
retrieval and analysis skills from different data bases. 
 
(iii) Supply-side constraints 
•  To address supply side constraints, there is  recognition that the Private Sector needs 
training on: 
- supply chain management and marketing skills,  
- adherence to standards and quality issues, and 
- adherence to SPS requirements in export markets.  
•  There is need to facilitate the development of sector specific strategies to effectively 
address supply side constraints. 
 
6  CONCLUSION 
6.1.  This Government Chapter shows that Bots wana has experienced economic growth averaging 
3.5% between 2008 and 2014. The economic outlook sh ows that the country is still continuing to 
achieve some stable growth despite economic challenges like the global financial crises of 2009. 
The economic outlook remains positive due to the continued growth and developments in the 
non-mining sectors. 
6.2.  Government remains committed to the multilateral trading system and will ensure that the 
trading rules or disciples are observed. However, to actively and effectively participate in global 
trade, Botswana is of the view that continuous technical assistance from the WTO is necessary.  
6.3.  Most importantly, Botswana maintains an environment of free and transparent trade which is 
open to both domestic and foreign investors. The sectors that will drive Botswana's economic 
growth over the next decades include, among ot hers, agriculture, manufacturing, mining and 
services. WT/TPR/G/324 • Southern African Customs Union 
 
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  LESOTHO 
1  INTRODUCTION 1.1.  Lesotho, like all other World Trade Organisation members, participates in the periodic trade 
policy reviews (TPRs) to reflect on the policy changes that occurred between the review periods. 
The current review follows the 2009 TPR. It is ca rried out jointly with other Southern African 
Customs Union (SACU) member states (Botswana,  Namibia, South Africa and Swaziland). The 
Government of Lesotho finds it important that WT O member states are, for transparency purposes, 
provided with an update of her trade policies and practices. 
1.2.  The Lesotho economy is relatively small. Approximately three-quarters of its population lives 
in rural areas. This population is mainly engaged in subsistence agriculture – mainly centred on maintaining small livestock herds (cattle, sheep and goats) and the production of crops (maize, 
deciduous fruits and some vegetables). Government remains the largest formal sector employer in 
the country; and in the private sector employment in the textiles and apparel value chain is key. It is worthwhile noting that remittances from migrants
1 working in South Africa (as miners, farm 
labourers and domestic workers), and (customs and excise) revenues from the SACU, are also 
vital to maintaining economic stability. 
1.3.  The Government's overall policy objectives co ntinue to be guided by the National Vision 2020 
that was launched in 2003. It remains the over arching policy framework on how Basotho would 
like to see their country economically and social ly by the year 2020. The 2020 document identifies 
seven pillars of development: democracy, unity, peace, education and training, economic growth, management of the environment, and advancement in technology. The National Strategic 
Development Plan (NSDP – 2012/13-2016/17), is th e implementation strategy for the National 
Vision 2020.
2 At an economic level, in order to give effect to commitments in the NSDP, Lesotho 
has finalised policy frameworks for the following sectors: energy, mining, and consumer 
protection. Work is now at an advanced stage with  regards the development of umbrella high level 
industrial, trade, and investment policy frameworks. 
1.4.  In the absence of adopted policy framewor ks the Lesotho Ministry of Trade and Industry 
continues to make interventions that improve th e business environment by reducing cost and the 
time spent by investors in complying with Government regulations, rules and procedures. 
2  MACROECONOMIC ENVIRONMENT 2.1.  GDP growth in 2010 was 5.6%, in 2011 4.3%, 2012, 6% and in 2013 5.6% (in 2014/15 it is 
anticipated to grow by about 4.4%). With a 57% level of poverty, and a 25% rate of 
unemployment, growth has generally not been in clusive enough and there is still widespread 
unemployment, inequality and poverty, particularly in rural areas. 
2.2.  Since 2009 Lesotho's fiscal position has remained generally strong. In 2010/11 Lesotho 
registered an overall deficit of close to 12.8 % of GDP; and in 2013 1.5 %. There has been a 
marked improvement in tax revenues which continues to be dominated by SACU receipts. Total 
government spending rose by from 10.5 % of GDP in 2012, to 24.3 % of GDP in 2013. 
Approximately 80% of Government spending is recurrent; and salaries account for the biggest 
component. Procurement of goods and services, an other large part of recurrent spending, rose 
from 10.4 % of GDP in 2012 to 17.4 % in 2013.  The procurement system is affected by 
inefficiencies which a new Public Management Reform  Action Plan will target. Capital spending rose 
from 10.5 % of GDP in 2012; to about 24.3 % in 2013. 
                                               
1 It is important to note that the number of Ba sotho migrants working on South African mines is 
continually reducing. In this context mineworkers (who  are retrenched or whose contracts are not renewed) 
returning permanently to Lesotho are able to acce ss retraining schemes offe red by the Mineworkers 
Development Agency (MDA), the Lesotho Ministry of Tr ade & Industry's facility (the Lesotho Opportunities 
Industrial Centre), and the Ministry  of Employment and Labour training facility located in Mohales Hoek. 
2 National Strategic Development Plan 2012/13 - 2016/17. WT/TPR/G/324 • Southern African Customs Union 
 
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  2.3.  Fiscal policy has generally remained non-expansionary and surpluses generated were used to 
build reserves and pay liabilities. For 2014/15, the fi scal position is expected to swing into deficit 
with revenue expected to drop faster than expenditure. The revenue outlook is dependent on SACU receipts which are driven by the global  economic environment, and the economic 
performance of South Africa. Typically, for th e period under review, the SACU revenue share 
transfer accounted for about 48% of the national budget. Donor grants make a significant contribution to government revenues; however due to a drop in the number capital projects grants 
were projected to drop to below 9.0% of GDP in 2014.  
2.4.  Monetary policy in Lesotho, like other countries in the Common Monetary Area (Namibia, 
South Africa and Swaziland), remained expansionary reflecting weak economic conditions and low inflationary pressure. Money supply in the period under review grew at an average of 11.1% in 
2013. In 2013 the level of net international reserves amounted to 4.5 months of imports of goods 
and services; and in 2013/14 it stood at 4 months. The Government targets five months of cover; while the international benchmark is three months. 
2.5.  The budget surplus has allowed the governme nt to accumulate reserves and improve its net 
position with the banking system which gave extr a credit to the private sector. Additionally, the 
higher level of international reserves supported  the maintenance of parity between the local 
currency, the loti (LSL), and the South African Rand . Consistent with liquidity conditions, interest 
rates remained low at close to 5 % in December 2013.  
2.6.  In 2012 the average inflation rate was 6.1%; and in 2013 the average rate was 5%. Surges 
in inflation were driven by international fuel and food prices. Lesotho's inflation generally tracks 
that of South Africa, since close to 80% of co nsumer goods are imported from South Africa. 
However, the weakening of the Rand (and the Loti with it) and unpredictable oil prices have posed risks. In 2014/2015, money supply growth is set to decelerate from 11.1% to 6.4% annually 
signalling a tighter monetary policy stance in line with the projected lower inflation. 
2.7.  Exports growth in terms of actual values ha s been encouraging in the last five years reaching 
a total of US$941.2 million by 2013 from US$734.1 million in 2009. This is attributable mainly to 
the preferential market access opportunity to the United States market provided by the Africa 
Growth & Opportunity Act (AGOA), and the revitalisat ion in the production and export of diamonds 
to the EU. Exports contribution to the country's GDP has been outstanding averaging over 46% in 
the last five years. There has however not been any diversification in the country's exports in 
terms of products and their market destinations during the period under review. Lesotho's main 
exports continue to be textile and garments, diamonds, footwear products and water. Main destinations of these exports are United Stat es, the European Union (EU) and South Africa. 
Relative to export growth, imports have been growing even higher causing the country's trade 
balance to be in the negative and reaching over US$-2 409.6 billion in 2014. Imports into the country originate mainly from South Africa, Asia, Saudi Arabia, U.S., and India. The main imports 
have been Petroleum products, cars, building and construction materials, equipments and raw 
materials for the clothing industry, and food items. 
2.8.  Potential sectors for export diversification have been identified in areas such as diamond 
beneficiation; vertical integration of the textile and garments sector; integration into regional value 
chain opportunities in the automobile industry and commercialising agriculture; and water bottling.  
3  PERFORMANCE OF MAJOR SECTORS 3.1  Primary Sector  
3.1.  Lesotho's primary sector industries record ed an average growth of 5.3 % between 2011/12 
and 2013/14, largely influenced by mining. Agricult ure registered an average growth of 3.2% in 
the same period, with crops experiencing a de cline of 6.5% and 16.2% due to drought and 
flooding experienced in 2011/12 and 2012/13. Even  though there was an armyworm attack in 
2013/14, the crops output managed to achieve a high of 13.9% boosted by government intervention in the sector. This influenced the agri cultural sector to register a 13.4% growth. Wool 
and mohair production also contributed to this growth. WT/TPR/G/324 • Southern African Customs Union 
 
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  3.2.  Agriculture in the country is characterized by two main subsectors which form the backbone 
of the sector. These two main sub-sectors are: crop production, and livestock production and products. The agricultural sector is pivotal to the country because 77% of total population relies on it for livelihood. The contribution of the agriculture sector to the Lesotho economy has remained 
relatively constant in the past five years (2010 and 2013 contributions to GDP was identical at 
7.6%). 
3.3.  The agriculture sector is projected to  grow by 2.4% on average between 2014/15 and 
2017/18. As the authorities gradually deal with th e sector problems, such as small and fragmented 
landscape, seeds and fertilisers, irrigation, erosion, output marketing, storage facilities and transport, and the need to implement reforms that will propel Lesotho farmers from subsistence to 
commercial agriculture. The Ministry of Agriculture has contributed to this initiative by increasing 
the area planted through a summer cropping project financed by the Government of Lesotho. As a 
result, the area planted is expected to positively influence the yield in crops since it is projected to rise by 7.5% tonnes per annum covering about 50% of arable land in the medium term.  
3.4.  Between 2008 to 2010 there was an outbreak of anthrax in parts of the country. In response 
to this China imposed restrictions on imports of Lesotho wool and mohair. This affected the prices paid for the county's fibre and annual turnovers for many farmers decreased. Negotiations were 
held between China and Lesotho and the ban was lifted in 2012. 
3.5.  Lesotho manages a system of import controls which regulate the importation of a range of 
agricultural products. In terms of this permit regime importers have to first obtain and import permit from the One Stop Business Facilitation Ce ntre (OBFC); and, then a clearance permit for 
the Ministry of Agriculture. Products covered by this regime include: poultry, eggs, dairy products, 
fruits and vegetables, meats, and processed meat products. 
3.6.  Mining registered a growth of 19.7% and 14.5% in 2011/12 and 2012/13 respectively as a 
result of reopening of the Liqhobong and Kao di amond mines. The diamond sector comprises six 
major mines under leases. All mines are jointly owned by the state in a partnership with a foreign company. As of May 2015, the state participation in these mines ranged from 20% to 30% 
shareholding. This came as global demand recovered from the 2008 economic and financial crisis 
influencing prices to become favourable for expo rts. Furthermore, the exchange rate of Loti 
against the US$ continued to depreciate boosting th e international export returns. The 5.3% dip in 
2013/14 came as a consequence of the Letseng diamond mine operating at a lower scale. In 2013, 
diamond mines employed about 1,700 workers and th e numbers are expected to increase to 3,000 
by 2017. 
3.2  Secondary Sector 
3.7.  The secondary sector accounted for 23.3% of gross domestic product (GDP) and registered 
an estimated growth of 4.8% in 2013, down from 6.5% in 2012. The expansion came from the recovery of textiles and clothing (3.4%); building and construction (7.8%) and electricity and 
water (4%). Additional growth is expected from th e tertiary sector supported by strong financial 
intermediation, transport and telecommunications, and government efforts in health and social welfare. The extension of the Millennium Chal lenge Compact for Lesotho will greatly enhance 
growth in water and sanitation. 
3.8.  Lesotho's manufacturing sector is dominated by her textiles and apparel value chain. In 2014 
the majority of Lesotho made garments were exported to the United States (69.5% by value); while South African fashion retailers purchased 30.5% of Lesotho made garments. This represents 
a significant diversification of destination market s - in 2005 less than 5% of Lesotho made apparel 
entered the South African market. Lesotho current ly export textiles to SADC and beyond.  
3.9.  The footwear manufacturing industry cont inues to be a feature of the Lesotho economy 
(4 firms); as does the electrical and electronic sub-assembly sector (3 firms). However in the 
period under review it is worthwhile noting that  both these sectors have not expanded; but efforts 
will be made to expand them go ing forward. A number of other manufacturers from different value 
chains have established themselves in Lesotho. A significant development has been the 
establishment of two firms making automotive components (wiring harnesses and leather car WT/TPR/G/324 • Southern African Customs Union 
 
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  seats) for the South African and international auto-assembly value chains. Lesotho has ambitions 
to expand this auto-component section of the value chain. 
3.10.  The construction sector remains one of the major drivers of the Lesotho economy. This 
could be attributable to the ongoing: construction of dams, bridges, roads in rural areas and 
buildings. The building and construction sub-sector was estimated to have expanded by 11.3% in 
2013 compared with a growth rate of 34.4% in  2012. The slowdown can be attributed to a 
deceleration in construction activities followin g the completion of some major projects in 2012/13 
(which included the construction and extension of shopping malls, the construction of the Metolong 
Dam, some Millennium Challenge Account (MCA) related projects, new factory shells in the Ha Tikoe industrial area). In the long term projec ts such as the Lesotho Highlands Water Project 
Phase 2, which is scheduled to begin in 2015, wi ll provide a significant fillip to the economy. 
3.11.  Lesotho continues to import electricity from its neighbours. Its current generating capacity 
at Muela (72MW) does not meet the country's needs. However, during the period under review, four mini-hydro plants were developed in the country: at Mantsonyane (2MW), at Semonkong 
(180kW), at Tlokoeng (670kW) and Tsoelike (400kW).  
3.3  Tertiary Sector 3.12.  In 2011/12 through to 2013/14, tertiary indu stries recorded an average growth of 5.8% 
resulting from substantial programmes in health and social work, financial intermediation, 
wholesale and retail trade, and transport and co mmunications. The health sector registered a 
growth of 28.4%, attributed to the opening of the new referral hospital. Financial intermediation sector grew at an average of 12.4% following refo rms to improve access to credit, as well as the 
fact that some financial services were extended to the more remote areas of Lesotho through the 
Lesotho Post Bank. The transport and communication sector grew by 6.0% on average, influenced 
by the post and telecommunications sector, whic h grew by 6.5% on the back of intensive 
developments in the sector. Growth was also bolste red by the opening of shopping malls in Maseru 
and the availability of big name South African brands 
3.13.  Lesotho has recognised the crucial role th at the services sector plays in the economic 
growth of the country. It has also participated in services negotiations at the multilateral, regional 
and sub-regional levels. 
3.14.  The Lesotho financial system has a regu latory and supervisory regime for banks and 
financial institutions (including insurance companies, micro-finance credit institutions, co-operative 
banks and moneylenders) that is consistent with international standards. In the period under 
review the following elements were finalised: Financial Institutions Act (FIA) 2012 (with regulations pertaining to Money Transfers, Credit, Foreign Exchange Bureaus, Financial Leasing, 
the Licensing of Credit Reference Bureaus) and th e Insurance Act 2014. Both of these laws impact 
upon non-banking financial institutions (excluding insurance and retirement funds/private pension funds/capital markets, etc.) which ar e regulated under a separate act. 
3.15.  Lesotho's financial sector in 2013 continued to show resilience as reflected by a 
non-performing-loans-to-total-assets-ratio below 2.8%. Commercial banks generally maintained adequate capital of about 16%. The loan-to-deposit-ratio also increased to about 60% in 2013. 
3.16.  The tourism sector in Lesotho has been identified by the Government NSDP (2012/13-
2016/17) as one of the 4 pillars of economic growth  in the country. The sector's contribution to 
GDP is estimated at 5.5% in 2013. It is envisaged that it will be a catalyst for: the inflow of foreign exchange, the attraction of new investments, the creation of new jobs, a generator of government 
revenues, and, an accelerator of business and entrepreneurial activities. A number of tourism 
destination based feasibility studies are in the process of being finalised. 
4  TRADE AND TRADE RELATED POLICY DEVELOPMENT  
4.1.  The Lesotho Government developed the National Strategic Development Plan (NSDP) 
2012/13 to 2016/17. The Strategic Development plan identifies agriculture, manufacturing, mining 
and tourism as the growth sectors, from which commercial opportunities can be tapped.  WT/TPR/G/324 • Southern African Customs Union 
 
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  4.2.  Lesotho is at an advanced stage in finalising an industrial policy. Work will shortly commence 
on developing a Lesotho trade policy. Lesotho's main trade policy objectives are to expand and diversify exports by taking advantage of preferential market access dispensations. It hopes to use its preferential market access to also promote foreign investment. Work will also be undertaken to 
remove supply-side constraints and improve infrastructure.  
4.3.  The Government of Lesotho is committe d to creating a business environment that is 
conducive to investment and to improve the ease of doing business. Lesotho is ranked 143 out of 
183 countries in terms of the World Bank Doing Business indicators. In order for her to remain an 
attractive investment destination, Lesotho is reforming her investment climate. Major improvements include establishment of One-Stop Business Facilitation Centre (OBFC); and its roll-out to Maputsoe/Ha Nyenye industrial areas in the north of the country. The Companies Act of 
1967 was repealed and replaced by the Companies Act of 2011. The Company Registry Office was 
also transferred from the Ministry of Law and Constitutional Affairs to the OBFC. A modern and efficient company registration has been set up to allow on-line registration of companies. These 
changes resulted in reducing the number of days it takes to start a business from 72 to just under 
5 days. 
4.4.  In 2013 Lesotho formulated a Consumer Prot ection Policy in order to improve consumer 
welfare through consumer empowerment and prot ection, fostering effective competition and 
enabling confident participation of consumers in markets. Since the last TPR review, the following Acts were passed by Parliament to enhance business and investment; the Industrial Licensing Act (2014), the Lesotho Standards Institute (2014), and the Land Act (2010). 
4.5.  A simplified customs clearing system has also been introduced through ASYCUDA World in 
two commercial border posts (Maputsoe and Maseru), cargo clearance facility at Moshoeshoe 1 International Airport as well as Single Administ rative Document (SAD). Improvements have also 
been made to access trade information through Lesotho Trade Portal 
(www.lesothotradeportal.org.ls). 
4.6.  Mining and Energy policies have also been finalised and elements are in the process of being 
implemented. The objective of Mining policy is to adhere to best practices and to allow responsible 
and globally competitive exploitation of the country's mineral resources in a manner that results in sustainable socio-economic development.  The Energy policy is meant to contribute towards the 
improvement of livelihoods, economic growth an d investment, protection of the environment as 
well as ensuring security of supply. 
4.7.  In furtherance of the regional integration agenda, Article 14 of the SACU 2002 Agreement 
provides for the establishment of a specialised, independent and dedicated National Bodies in 
SACU member states to conduct preliminary investigations into Tariff and related SACU issues and 
make appropriate recommendations to the SACU Tariff Board for changes. This objective is in line with the Government of Lesotho's vision to create an efficient regulatory and administrative 
environment within which businesses could operate. In this regard National Body was established 
in 2012 through the Cabinet decision, to execute the functions of tariff investigations, trade remedies and import and export control. Currently  there is a draft law to establish the Trade and 
Tariff Administration awaiti ng Parliament to pass.  
5  REGIONAL AND MULTILATERAL TRADE RELATIONS 
5.1.  Lesotho is a founding member of the WTO, a member of the WTO's Least Developed Country 
(LDC) Consultative Group, and the current Chair of  the WTO's African Group. She is also a Member 
of the Africa Caribbean & Pacific (ACP) group of countries.  
5.2.  Lesotho reaffirms her commitment for a meaningful outcome of the Doha Development 
Agenda (DDA). Furthermore, Lesotho is committed to  undertaking all national processes related to 
the ratification of the Trade Related Aspects of Intellectual Property Rights Agreement (TRIPS), 
and the WTO Trade Facilitation Agreemen t (TFA) that were adopted at the 9
th WTO Ministerial 
Conference that took place in Bali in 2013.  
5.3.  Lesotho, as a member of SACU, is co-negotiating a co-operation agreement with the 
U.S. related to trade, investment and development issues. Lesotho is also, with her WT/TPR/G/324 • Southern African Customs Union 
 
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  SACU partners, in the preliminary stages of negoti ating a preferential trade agreement (PTA) with 
India. The SACU-MERCOSUR PTA is undergoing ratifi cation processes by signatory parties to the 
agreement (Lesotho has already ratified the agreement). 
5.4.  In 2014 Lesotho initialled an economic partnership agreement (EPA) with the EU. Other 
parties to the EPA include Botswana, Mozambique, Namibia, South Africa, and Swaziland (known 
as the SADC EPA Group). 
5.5.  In pursuit of greater African regional integration, and as a member of SADC and SACU, 
Lesotho is negotiating an agreement that will result in a free trade area covering the countries who 
are member states of SADC, the East African Community (EAC), and the Common Market for East and Southern Africa (COMESA). These negotiations – more commonly known as the "Tripartite Free Trade Area" negotiations commenced in 2011. The Africa wide Continental Free Trade Area 
(CFTA) negotiations were launched, under the au spices of the African Union (AU), in order to 
further deepen regional integration and promote regional value chains across the African continent. 
6  AID FOR TRADE 
6.1.  Lesotho continues to benefit from techni cal assistance programs under the Aid-For-Trade 
paradigm. These assistance measures have focussed on: infrastructure, agriculture, trade policy 
and regulation, industrial de velopment, and tourism.  
6.2.  Some of the programmes that Lesotho benefits from include: 
a. Private Sector Competitiveness and Econ omic Diversification Project (PSCEDP) 
Funded by the International Development Association (IDA) the PSCEDP project 
aims to promote sustainable growth and increase the competitiveness of Lesotho's 
private sector by: - improving the business environment - the overall goal is to reduce the cost 
of doing business by reforming company registration and business licensing 
processes, and immigration and passport services; and, improving access to finance. Progress already made in this area includes: the development of a 
consolidated electronic company registry database, and redrafting of the 
legislation and regulations relating to industrial and trade licensing. In order to improve access to credit a guarantee scheme has been established with an 
initial capitalisation of M10m. 
- supporting economic diversification – this relates to building the capacity of 
the private sector with the objective of strengthening its linkages with the regional economy (especially with South Africa); further integrating Lesotho into 
the global economy; strengthening institutional support for employable skills 
and business management; and, improving productivity at firm level. There is a focus on skills development for: the garment industry, horticultural out grower 
schemes, the tourism sector; as well as support for and the establishment of 
the Lesotho Enterprise Assistance Program.  
 
b. Enhanced Integrated Framework (EIF) 
The Government of Lesotho continues to benefit from The EIF project for trade-
related technical assistance. The project, which began in 2011, has the following two components.  
- EIF Tier 1  - With financial support, and technical assistance from USAID, 
Lesotho updated its 2003 Diagnostic Trade Integration Study in 2012. The update highlighted major areas of action for building productive capacities, 
regional trade integration and trade facilitation. An action matrix prioritising 
areas of intervention covering a period of five years (2013/17) and a Sector Medium Term Programme are being implemented.  
- EIF Tier 2  - This component seeks to enhance Lesotho`s sustainable economic 
growth, employment generation, food se curity and poverty alleviation. To 
achieve this objective, a pilot project on Agricultural Productivity and Trade Development is being implemented with the technical assistance of the 
International Trade Centre (ITC). To da te 140 green houses and hail nets have 
been allocated to small holder farmers.  WT/TPR/G/324 • Southern African Customs Union 
 
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  c. Technical Barriers to Trade; Sanitary and Phytosanitary Standards 
The Government of Lesotho has embarked on efforts to reinforce standards and quality infrastructure in order to enhance competitiveness of Lesotho made products. Assistance has been received from USAID for the establishment of a 
Technical Barriers to Trade and Sanitary and Phytosanitary Standards enquiry 
points, and their related capacity building programs. Cooperating partners in this area include the German and Swedish governments, the Food and Agriculture 
Organisation, and the Regional Economic Integration Support Program under the 
European Development Fund.  
 
d. Trade Advocacy Fund 
Lesotho is currently benefitting from the United Kingdom's Department for 
International Development Trade Advocacy Fund (TAF). TAF assistance covers improving institutional coordination and human capacity within the Government of 
Lesotho to enable it to be better prepared for her participation in international 
trade related negotiations. The goal of the programme is to establish a pool of trained personnel that will be able to participate more effectively in international 
trade negotiations in a more coordinated manner. 
 
e. EU-SADC Trade Related Facility 
Lesotho has been allocated an amount of €2.6 million that will allow her to 
effectively implement her commitments under the SADC Trade Protocol and the 
EU-SADC Economic Partnership Agreements (EPAs). Lesotho has identified the following areas of interest:  
- addressing supply side capacity constraints - including standards and quality 
infrastructure;  
- the development of appropriate trade policies and programs, as well as 
establishment of trade and tariff administration;  
- competition institutions. 
 
f. Training & Capacity Building 
Lesotho has benefited by sending delegates to participate in capacity building 
programmes funded by the Chinese and Indian governments. 
 
7  CONCLUSION 
7.1.  The Government of Lesotho is fully committed to the policies and processes underpinning the 
global multilateral trading system. Lesotho seeks to fully exploit the potential benefits of the 
multilateral trading system to ensure that trade continues to serves as a driver of social and 
economic transformation. Furthermore Lesotho seeks to fully utilise the support being given under the various trade related technical assistance programmes both at bi-lateral and multilateral levels in order for it to address its supply side constraints in order to enhance its participation in the 
international trading system. Lesotho strives to take advantage of the technical assistance 
programmes - through the Aid for Trade rubric – in order to address her market access constraints, and to participate fully in the global trading system.  
7.2.  There has been significant progress in terms of enhancing the business and investment 
environment since the last WTO TPR review. The growth in the economy has been positively 
consistent. However it has not been inclusive and therefore issues of unemployment, poverty and 
inequality remain a challenge for the Government . This challenge is obviously due to the narrow 
base of the economy as the country's exports re main firmly bound in the textile and garment 
sector; and lately in diamonds.  
7.3.  Lesotho has identified that economic diversification is key - in particular with regards to the 
manufacturing sector. Secondly Lesotho strives to achieve a more inclusive and sustainable growth 
trajectory to address the high incidence of povert y. Ongoing initiatives such as the Private Sector 
Competitiveness and Economic Diversification Project, the Customs Modernisation Programme and 
the EIF among others, are expected to address supply side constraints, reduce the cost of starting 
and doing business and enhance Lesotho's industrial competitiveness in the global arena. 
 
 WT/TPR/G/324 • Southern African Customs Union 
 
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 NAMIBIA 
1  MACROECONOMIC ENVIRONMENT 1.1.  Namibia is situated on Africa's south-western seaboard; its neighbouring countries are Angola 
to the north, Botswana and Zimbabwe to the east and South Africa to the South, with the Atlantic 
Ocean forming its western border. Namibia covers a total land surface of 824,268 km
2 and is 
divided into 14 regions as determined by the Delimitation Commission.   
1.2.  Namibia is the second most sparsely popula ted country in the world; the average population 
density is 2.6 people per square kilometre. The total population is estimated at 2.1 million, of 
which around 15% resides in the capital, Windhoek  and approximately 37% of the population live 
in urban areas. English is the official language, while Oshiwambo, Afrikaans, Otjiherero, Khoekhoegowab, German, Lozi, Rukwangali, Tswana and various San languages are also spoken. 
1.3.  The employment rate among Namibia's population aged 15 years and older is 66%, while the 
overall unemployment rate, according to the Nami bia Labour Force Survey 2014 Report, is 28.1% 
for both male and female. More than 50% of the workforce is employed in the private and public 
service sectors while 31.4% are in the agriculture, forestry & fishing industries. 
1.4.  Namibia's literacy rate is 88% for people ag ed 15 years and older, while 66% of people aged 
six to 24 are enrolled in schools, of those who are 15 and older 42% have completed their primary 
education, while 15% have completed a secondar y education. The country has three recognized 
tertiary institutions, namely University of Namibia (UNAM), International University of Management (IUM) and Polytechnic of Namibia. 
1.5.  According to the World Bank Atlas method of classifications,  low-income economies are 
defined as those with a GNI per capita US$1,045 or less in 2014; middle-income economies are 
those with a GNI per capita of more than  US$1,045 but less than US$12,736; high-income 
economies are those with a GNI per capita of US$12,736 or more. Lower-middle-income and 
upper-middle-income economies are separated at  a GNI per capita of US$4,125. Therefore, 
according to the World Bank Atlas method and PPP in 2014, Namibia was ranked 116 in the world with a GNI per capita of US$5,820.  
1.6.  The Gross Domestic Product (GDP) average growth rate for the years 2010-2014 is 5.2%; 
the economy showed an increase in the GDP in 2010 of 5.9%, while from the period 2011 to 2013 
the GDP declined by 0.1% whereby the GDP was 5.3%, 5.2% and 5.1%, respectively.  
Chart GDP growth rate 
(%) 
5.9
5.3 5.2 5.1
4.5
0.01.02.03.04.05.06.07.0
2010 2011 2012 2013 2014 
 WT/TPR/G/324 • Southern African Customs Union 
 
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  1.7.  The domestic economy in 2014 has slowed by  recording a growth of 4.5% compared to 5.1% 
in 2013. This slow growth can be mainly attributed  to the secondary and tertiary industries that 
registered growths of 4.7% and 6.3% compared to  8.4% and 7.2%, respectively. The slow growth 
in the secondary industries is due to the construction and manufacturing sectors that recorded 
growth rates of 14.6% and 0.5% compared to 30.2% and 2.9% in real value added during the 
period under review. 
1.1  Agriculture and forestry  
1.8.  The real value added of the agriculture sector is estimated to have recorded an average 
decline of -0.1% during the period 2010 to 2014 and this is mainly attributed by the 2013 decline 
of -26.7% as a result of the drought that was ex perienced.  The year 2014 had a positive growth 
of 6.5% compared to a decline of 26.7% recorded in 2013.  
1.9.  The positive performance in the sector can be attributed to subsectors of livestock and crop 
farming that recorded growths of 8.0% and 4.8% respectively, compared to declines of 37.6% and 9.6% witnessed in the preceding year.  
1.10.  The positive performance in the livestock farm ing subsector is as a result of restocking after 
one of the worst drought in Nami bia and the strict requirements on livestock imports imposed by 
South Africa veterinary services during 2014. The improved performance of the crop farming 
subsector resulted from good rain received during 2014 which culminated in bumper harvest for 
major crops.   
Table 1: Growth in GVA (Gross Value Adde d) at Constant (2011-12) Basic Prices 
(%) 
 2012-13 2013-14 2014-15 
Agriculture, Forestry & Fishing 8.1 -26.7 6.5 
Industry 19.6 33.3 21.0 
Mining, & quarrying 25.1 1.1 -4.4 
Manufacturing 6.8 2.9 0.5 
Electricity, gas, wa ter, supply & other 
utility services 17.8 0.3 6.0 
Construction 8.7 30.2 14.6 
Services 23.1 44.2 46.2 
GVA at basic prices 4.9 4.5 4.4 
GDP (at market prices) 5.2 5.1 4.5 
 
Chart Growth Value Added to the GDP 
(%) 
-30-20-1001020304050Agriculture,
Forestry & FishingIndustryMining & quarryingManufacturingElectricity, gas,  
water supply & 
other utility servicesConstructionServicesGVA 
at basic pricesGDP 
at market prices2012‐13 2013‐14 2014‐15
 
 
1.11.  The Agriculture, Forestry & Fishing sector  showed a growth of 8.1% of gross value added 
(GVA) during 2012-2013 period, but a decline of 26.7 in 2013-2014 due to the drought WT/TPR/G/324 • Southern African Customs Union 
 
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 experienced in 2013 and started recovering in 2014 with a 6.5 growth as good rainfall was 
received. 
Table 2: % Share of different sectors in GVA at basic prices  
Year Agriculture Industry Services 
2011-12 18.3 20.7 60.1 
2012-13 22.4 18.8 54.9 
2013-14 19.9 19.8 56.3 
2014-15 20.1 20.9 56.1 
 
Chart % Share of different sectors in GVA 
0 1 02 03 04 05 06 07 02011-122012-132013-142014-15
Services
Industry
AgricultureYear
Percenta ge  
 
a Agriculture includes forestry & fishing, mining & quarrying. 
b Industry includes manufacturing, construction, electricity, gas & water supply. c Services include trade, hotels and restaurants; transp ort, storage and communication; financing, 
insurance, real estate and bu siness services; community, social and personal services. 
d Advance estimates. 
 
1.2  Fishing and fish processing on board 
1.12.  Fishing and fish processing on board is estimated to have recorded a decline of 0.24% 
during the period 2010 to 2014. The year 2012 had the highest decline 7.6%, while 2014 also had a decline of 4.4% as compared to an increase of  2.5% in real value added registered in 2013.  
1.13.  The poor performance of this sector can be attributed to demersal fisheries processed on 
board that recorded a decline of 21.9% in 2014 co mpared to a growth of 7.7% in output of the 
previous year. Mid-water fisheries processed on board also registered a decline of 1.7% in 2014 compared to positive growth of 1.3% registered in 2013.  
1.3  Mining and quarrying  
1.14.  The mining and quarrying sector is estimate d to have registered an average of 7.7 during 
the period 2010 to 2014. The highest growth was for the year 2012 which had a growth of 
25.1 compared to 2013 which recorded the lowest increase of 1.1. The year 2014 had a decline 
of -4.6, this decline can be attributed to poor performance of uranium, metal ores and other mining and quarrying that all contracted during the year under review. 
1.15.  The uranium subsector recorded a decline of  9.9% when compared to a decline of 6.9% in 
2013. The poor performance in the production of ur anium can be attributed to the unstable market 
prices of uranium during the period under review.  WT/TPR/G/324 • Southern African Customs Union 
 
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  1.16.  The subsector metal ores showed an im provement from the preceding year, albeit not 
strong enough to offset the negative trend recorded in 2013. This subsector registered a negative growth of 1.4% in real value added as compared  to a decline of 27.0% registered in 2013. The 
decline in metal ores can be attributed to the reduction in production for zinc and manganese 
which recorded declines of 12.0% and 16.8%, respectively.  
1.17.  Other mining and quarrying subsector registered a decline of 42.7% in real value added 
during the period under review compared to an increase of 11.0% registered in 2013. This poor 
performance was due to the closure of the fluors par mine and a reduction in the production of 
granite and marble.  
1.18.  Diamond mining registered a growth of 11.1% in real value added compared to 7.3% 
recorded in 2013. Diamond production showed  a strong growth as compared to 2013.  
1.4  Manufacturing 
1.19.  The manufacturing sector is estimated to have recorded an average of 1.9% growth for the 
period 2010 to 2014. The year 2014 recorded a slow growth of 0.5% in real value added compared 
to growth of 2.9% recorded in 2013.  
1.20.  The slow growth is as a result of poor performances from the subsectors meat processing 
and textile and wearing apparel that recorded declines of 14.8% and 11.7% as compared to 
growths of 30.4% and 4.7% registered in 2013 in real value added, respectively. The subsectors 
of beverages, publishing and printing, non-metallic mineral recorded growths of 10.3%, 12.7% and 8.3% respectively in 2014 as compared to growths of 6.6%, 6.8% and 1.1% in 2013, respectively. 
1.5  Electricity and water  
1.21.  The utility sector (electricity and water) is estimated to have recorded an average of 5.9% 
growth for the period 2010 to 2014. The highest growth was recorded in 2012 which recorded 
17.8% in real value added and 2010, 2011 had 2.4 and 3.1 growth respectively. While 2014 had a 
growth of 6.0% compared to 0.3% recorded in 2013. The strong growth was driven by the 
electricity subsector, which recorded an increase of 8.6% in 2014. This was influenced by the 
increase in the local demand of electricity especi ally due to increased activities in the mining 
sector. However, the water subsector recorded a decline of 2.9% due to a 6.5% drop in the demand of water for irrigation, attribut ed to the good rains received in 2014. 
1.6  Construction  
1.22.  The construction sector is estimated to ha ve recorded an average of 15.2% growth for the 
period 2010 to 2014. The year 2013 saw the highest increase in real value added of 30.2%. While 2014 recorded 14.6 growth compared to a massive growth of 30.2% recorded in 2013. The 
performance in the sector is mainly due to the construction works done by mining and quarrying 
sector and general government sector that registered growths of 18.8% and 16.1% in 2014 compared to an increase of 63.3% and 53.3% recorded in the previous year. Construction works 
done by the transport and communications sector registered a growth of 6.7% compared to a 
decline of 0.8% recorded in 2013. The value of buildings completed also registered a growth 9.0% during the period under review. 
1.7  Wholesale and retail trade  
1.23.  The wholesale and retail trade sector is estimated to have registered a growth of 7.72% in 
real value added during the period 2010 to 2014. The year 2013 recorded the highest of 14.5 growth in real value added while in 2014 ther e was a growth of 8.6% compared to 14.5% in 
2013. The performance of this sector is reflected in  sales of supermarket and vehicle that recorded 
strong growths of 22.8 and 21.5%, respectively compared to 10.3 and 18.0%, registered in 2013, respectively. The furniture and clothing subsecto r sales also showed improved performance by 
registering growths of 14.5 and 17.0%, respectively in 2014. WT/TPR/G/324 • Southern African Customs Union 
 
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 1.8  Hotels and restaurants 
1.24.  The hotels and restaurants sector is estimated to have recorded a growth of 5.44% during 
the period 2010 to 2014 in real value added. The year 2010 recorded a decline of 0.2, but 2011, 2012, 2013 and 2014 recorded a progressive growth of 2.0%, 8.1%, 8.0% and 9.3%, 
respectively. 
1.9  Transport and communication  1.25.  The transport and communication sector es timated a growth of 5.1% in real value added 
during the period 2010 to 2014. The year 2014 record ed a growth of 5.6% in real value added 
compared to 6.4% recorded in 2013. The slow growth is attributed to poor performance of railway transport subsector that declined by 28.8% in 2014.  
1.26.  However, the following subsectors recorded  positive growths: telecommunication increased 
by 8.9%, port services by 7.8%, freight by ro ad by 5.8%, airport services by 4.6% and air 
transport by 4.3%. 
1.10  Financial intermediation  
1.27.  Financial intermediation is estimated to have recorded a growth of 8.16% in real value 
added during the period 2010 to 2014. While in 2014 the real value added was 7.7% compared to 16.0% recorded in 2013. The weaker performance of this was mainly attributed to the banking 
subsector that posted a weak growth of 9.8% compared to a growth of 20.9% in 2013. The 
performance of the banking subsector was in turn a ttributed to a slowdown in deposits received by 
the banks in 2014, that increased by 15.9% compared to a huge increase of 47.1% in 2013. The insurance subsector also posted a weak performance of 4.8% in 2014 compared to a 9.6% in 
2013. 
1.11   Real Estate, renting and business services  1.28.  The real estate, renting and business activities sector is estimated to have registered a 
growth in real value added of 3.36% during the period 2010 to 2014. The year 2012 recorded the 
highest growth of 4.7% while 2010 had the lowest 1.7%. 
1.12   Public Administration  
1.29.  Public administration and defence whic h include central government administrative 
activities, statutory bodies and local government activities, is estimated to have recorded a growth of 4.42% in real value added during the period 2010 to 2014. While in 2014 the growth was 4.8% 
compared to 3.4% growth in real value added registered in 2013. This growth is indicative of 
government expenditure in this sector. 
1.13  Education 1.30.  The education sector is estimated to have registered a growth in real value added of 5.41% 
during the period 2010 to 2014. While in 2014 ther e was a growth of 5.9% compared to 3.3% 
registered in 2013. This positive growth is attrib uted to the sub sector of primary and secondary 
education that registered a strong growth of 7.3% in 2014 compared to 2.8 % registered in 2013. 
Tertiary and other education is estimated to have registered a decline of 3.4% in 2014 compared 
to an increase of 6.6% registered in 2013. 
1.14  Health  1.31.  The health sector estimated to have recorded a growth of 6.4% in real value added during 
the period 2010 to 2014. While in the year 2014 there was a growth of 7.6% in comparison to 
6.7% registered in 2013.  
1.32.  The growth in 2014 was supported by a huge increase of 30.8% of government expenditure 
on health compared to 21.1% in 2013. Private hospitals also performed slightly well in 2014 with 
an increase of 8.4% from 8.0% in 2013. WT/TPR/G/324 • Southern African Customs Union 
 
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  1.33.  This slow growth can be mainly attributed  to the secondary and tertiary industries that 
registered growths of 4.7% and 6.3% compared to  8.4% and 7.2%, respectively. The slow growth 
in the secondary industries is due to the construction and manufacturing sectors that recorded growth rates of 14.6% and 0.5% compared to 30.2% and 2.9% in real value added during the 
period under review. 
1.15  Savings and Investment 1.34.  Gross savings is calculated as the difference between disposable income and final 
consumption expenditure. The more a country spends its national income on consumption, the less 
resources is available for investment and savings; and consequently for future production. It shows that investment was consistently higher than gross savings except for 2007 and 2008. This is a reflection of investment from abroad into the economy of Namibia in the latter years. 
1.16  Inflation and GDP Deflator 
1.35.  The period between 2008 and 2014 has witn essed the inflation hovering between 9.1% and 
5.4%. The year 2009 witnessed the highest inflation of 9.5% while the lowest inflation of 4.9% 
was recorded in 2010. The average inflation for 2014 was 5.4%. The main contributors to the 
reduction in the inflation were the categories of housing, water, electricity, gas and other fuels; and alcoholic beverages and tobacco during the period under review. The GDP deflator recorded an 
increase of 11.7% as compared to an increase of 11.1% in 2013. The GDP deflator is a ratio of 
nominal GDP to real GDP and measures the level of prices of all domestically produced goods and services. 
1.17  Exports, Imports and Trade Balance 
1.36.  The overall value of exports has been increa sing but rather at slow pace during the period 
2010 to 2014 whereby it was 43.8 billion, 43.1 b illion, 45 billion, 56.3 billion and 64.6 billion 
respectively.  
1.37.  Total exports for the year 2013 were revised upward to N$56.3 billion from the initial 
estimate of N$54.4 billion, while Total import s was revised upward to N$73.6 billion from 
N$72.4 billion. Consequently, the deficit declined from N$17.9 billion to N$17.2 billion. 
1.38.  Expenditure on imports has been increasing during the period 2010 to 2014, whereby it is 
was 47.6 billion, 48.2 billion, 60.0 billion, 73.5 billion, an d 90.0 billion, respectively.  
1.39.  The trade defici t has been increasing as can be seen for 2010, 2011, 2012, 2013 and 2014 
whereby for it was 3.8, 5.1, 15, 17.2 and 26.2, respectively.  Namibia's trade deficit widened by 
52.3% to N$26.2 billion in 2014 compared to the revised figure of last year in which the deficit 
was at N$17.2 billion. The sharp increase in the defi cit is owed to high import expenditures valued 
at N$90.6 billion compared to export earnings worth N$64.4 billion. 
Table 3: Merchandise trade: exports, im ports, trade balance, and trade openness  
(N$ billion) 
Year Exports Export 
% 
growth As % 
of 
GDP Imports  Imports 
% 
growth As % 
of 
GDP Trade balance Trade 
Openness  
Trade as 
% of GDP Trade 
balance As % 
of GDP 
2010-11 43.8  4.8 53.1 47.6  -6.4 57.8 -3.8 -4.7 1.12 
2011-12 43.1  -0.7 47.9 48.2  0.6 53.6 -5.1 -5.7 1.01 
2012-13 45.0  1.9 42.1 60.0  11.8 56.2 -15 -14.0 0.98 
2013-14 56.3  11.3 45.1 73.5  13.5 58.9 -17.2 -13.8 1.04 
2014-15 64.6  8.3 44.3 90.0  18.5 63.2 -26.2 -18.8 1.08 
 
1.18  Key Export Markets 2014 
1.40.  Namibia's total exports for 2014 was valued at N$64.5 billion of which the bulk valued at 
N$37.5 billion was destined to Botswana, South Africa, Switzerland, Korea and Angola. These 
markets accounted for 58.2% of Namibia's total exports compared to 58.8% a year earlier. WT/TPR/G/324 • Southern African Customs Union 
 
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 Botswana topped Namibia's export destination with N$10.7 billion worth of goods exported to that 
country.  
1.41.  Namibia exports to South Africa dropped by 29.9% while that of Switzerland rose strongly 
by 44.3%. The commodities which contributed to the strong rise in exports to Switzerland were 
copper and ores.  
1.42.  Exports to other countries increased by 3.0% to N$44.8 billion from N$41.8 billion recorded 
in the previous year. 
1.19  Key Import Markets for 2014 
1.43.  South Africa, Korea, China, Bahamas and Germany were the main suppliers of goods to 
Namibia in 2014. The overall value of imports from these countries increased by 7.1% to N$37.5 billion when compared to N$31.1 billion a year ago. These markets accounted for 73.6% of 
total imports in 2014 compared to 66.5% in the previous year.  
1.44.  Imports from Korea increased strongly to N$5.9 billion compared to N$175 million in the 
previous year, due to temporal importation of sh ips, boats and floating structures. On the other 
hand, increases in the value of imports were noted from China at 61.3% and South Africa at 
13.6%. In the case of China, the increase wa s mainly caused by electrical machinery and 
equipment; and boilers, machinery and mechanical appliance.  
1.45.  Imports from other countries outside the top five listed countries decreased by 7.1% to 
N$23.9 billion compared to N$24.6 billion recorded a year earlier.  
1.20  Trade in services 1.46.  The services sector, or the secondary industries, has shown a very slow growth at an annual 
average rate of below 2% over the last 5 year s (2010–2014) compared to the average growth of 
5% of 2009. The deficit in the services account widened during 2014.  
1.47.  Namibia's net services registered a higher deficit of N$588 million compared to the deficit of 
N$129 million registered in 2013. The higher deficit in net services was attributed to increased net 
payments in transportation and insurance services, which rose in line with rising merchandise imports. (Bank of Namibia Annual Report 2014) 
Table 4: Trade in Services  
Year Export Import Net 
2010-11 5,375 5,651 -276 
2011-12 8,838 5,950 2,888 
2012-13 8,905 9,034 -129 
2013-14 10,760 -11,348 -588 
 
Table 5: Foreign Direct Investment inflows  
Year Total FDI Inflows 
2008-09 4,288 
2009-10 5,806 
2010-11 5,925 
2011-12 9,305 
2012-13 7,729 
2013-14 4,490 
 
1.21  National Development Plans and Vision 2030 
1.48.  National Development Plans are large scale investment programmes to develop both soft 
and hard infrastructure for the development of the country. Namibia adopted planning as a tool to 
direct and coordinate development efforts towards a common goal; that of uplifting the standard 
of living of the Namibian people to the level of their counterpart in the developed world. National 
planning involves the process of setting goals,  developing strategies, and outlining tasks and WT/TPR/G/324 • Southern African Customs Union 
 
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  schedules to accomplish the national goals. Planning in Namibia is done at national, regional and 
local levels and it takes the form of short, medium and long term. 
1.49.  Government has therefore come up with the National Development Programmes (NDP 4) 
goals of high and sustained economic growth, increased income equality and employment creation.  
To reach these goals, this NDP has identified key areas of focus that will create the necessary 
momentum for higher economic growth. While other sectors will not be neglected, attention will be shifted to priority sectors to ensure the impact and results of our efforts are optimal. During the 
NDP4 period, the following economic sectors will enjoy priority status: 
 Logistics 
 Tourism 
 Manufacturing 
 Agriculture 
 1.50.  Secondly, the NDP4 focuses on foundation issues: without these foundations, other efforts 
are not likely to succeed. Such issues include –  
 the maintenance of macroeconomic stability  
 the development and retention of superior skills needed by both the private and 
public sectors  
 developing our capacity to do research and development, and  
 making Namibia the preferred investment location in Africa.  
 
1.51.  Namibia's Vision 2030 is a long term perspective plan outlining the course of development and the ideal country that Namibia would like to be in the year 2030. This is a country where people are well developed, prosperous, health and confident in an atmosphere of interpersonal 
harmony, peace and political stability.  
1.52.  This state of development will be achieved in systematic manner through the 
implementation of the medium term plans – whic h are building blocks toward Vision 2030. NDP 2 
is the first of the medium term plan developed after the launch of Vision 2030, and thus NDP 7 will 
be the last medium term plan to be implemente d before reaching 2030. It is envisaged that the 
medium term development plans formulation w ill be based on the integrated sustainable 
development approach and will be characterized by a vigorous and clear cut implementation and 
monitoring and evaluation strategy. 
1.53.  The "magic" for the achievement of goals of both Vision 2030 and medium term 
development plans will be adequate funding fo r the prioritized programmes and projects and 
cultivation of partnership between all stakeholders which include government 
offices/ministries/agencies, development partners, donor communities, private sector as well as support from all citizen 
2  NEW TRADE REFORMS 
2.1  Industrial Policy 2.1.  Namibia finalized its Industrial Policy Impl ementation and Strategic Framework at the end of 
2013 and is further to incorporate results from th e Growth at Home Conference, which are in the 
context of Namibia's Industrial Policy. It is aligned to Vision 2030 and the current National Development Plan (NDP 4). The Implementation Fr amework provides a road map for the execution 
of the Industrial Policy, which has been approved by Cabinet.  
2.2.  The specific objectives of industrialization are outlined in Vision 2030. The Vision emphasizes 
the importance of a change in production stru cture, a change in export structure, and the 
contribution to be made to wealth creation by small- and medium-scale enterprises (SMEs). Vision 
2030 also emphasizes the need for job creation and labor-intensive growth strategies. More 
specifically, the Vision states that, by 2030, the fo llowing targets with respect to industrialization 
would have been achieved. The objectives of the Industrial Policy are as follows: WT/TPR/G/324 • Southern African Customs Union 
 
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 (a) The manufacturing and services sectors cons titute about 80% of the country’s Gross 
Domestic Product (GDP); 
(b) The country largely exports processed goods, which account for not less than 70% of 
total exports; 
(c) Namibia has an established network of modern infrastructure that includes railways, 
roads, telecommunications and port facilities; and 
(d) Namibia has a critical mass of knowledge wo rkers, and the contribution of SMEs to 
GDP is not less than 30%. 
 2.3.  It focuses on three Strategic Intervention  Areas that have been derived from the policy 
framework, benchmark studies, sector consultations, and further stakeholder discussions: 
Supporting value addition, upgrading an d diversification for sustained growth  
 2.4.  Interventions will promote and provide a needs-oriented and comprehensive support to 
industrial development and upgrading projects which contribute towards structural transformation 
of the Namibian economy and enhance domestic value addition.  
Securing market access at home and abroad 
 
2.5.  Interventions will stimulate the development of local industries by utilizing the potential of 
local procurement measures and by generating synergies between local producers and large retailers. Another main focus will be on creating conditions that will boost Namibian exports as well 
as the capacity of Namibian firms to supply and export goods at a competitive level. 
Improving the investment climate and conditions 
 
2.6.  Interventions will focus on improving the institutional environment and in particular the 
availability of skilled labour as well as of land and sites and premises for businesses. This Strategic Intervention Area recognizes the vital role that SMEs play in Namibia's industrialization and socio-
economic development. 
2.7.  Priority Actions supporting value addition, upgrading and diversification include the extension 
of the Industrial Upgrading and Modernisation Programme (IUMP) and a realignment of incentive 
schemes & financing instruments for promoting industrial development and value addition 
projects. The measures will be  complemented by targeted in vestment promotion campaigns. 
2.8.  In order to support local firms in securing markets, a local procurement support initiative, the 
development of a Retail Charter, and a trade competitiveness programme are planned. Priority 
Actions geared towards improving the investment climate will cover an industrial infrastructure 
development programme as well as an updating and enhancing of practical training and of the 
processes for the import of skilled labour. Furt hermore, the review of the SME Policy, the re-
engineering of registration processes for busine sses and intellectual property rights, and the 
establishment of a regular Public Private Dialogue Pl atform form part of this Strategic Intervention 
Area. 
2.9.  NIDA will be established based on the merger of the Namibia Development Corporation 
(NDC) and the Offshore Development Corporation (ODC). Certain functions of relevant MTI 
Departments and Directorates will be incorporat ed and realigned to generate synergies and to 
reduce overlap. The organization al structure will reflect the balance between the horizontal and 
vertical/sectoral focus of the Implementation Fram ework. Involvement of the private sector, other 
Ministries and Agencies will be ensured within the governance structures. 
2.2  Investment Act 
2.10.  The Namibia Investment Centre (NIC) was established in 1990 under the Foreign 
Investment Act No. 27 of 1990(which is currently under review) with the major responsibility of promoting FDI (Foreign Direct Investment). The NIC is the first port of call for investors, local and foreign. WT/TPR/G/324 • Southern African Customs Union 
 
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  Reasons why invest in Namibia 
 
 Namibia has solid foundations for democracy, good governance, peace and stability 
 Business friendly legal and regulatory framework, and liberal investment incentive 
regime (e.g. EPZ, exporters and manufacturers incentives) 
 Sound financial system and stable foreign exchange reserves 
 Ideal gateway to SADC regional market via trade agreements and world port, rail, 
road and air infrastructure 
 Excellent telecommunications network 
 Efficient and transparent bureaucratic system 
 Good housing, health, education and recreational facilities 
 A pool of young and trainable labour force and incentives for training 
 An oasis of investment 
 
Services Offered by NIC 
 
 Act as the first port of call for any potential investors to Namibia 
 Offer investor services such as required in establishing business in Namibia, e.g., 
application for work permits, assistance with search and identification of 
land/premises, etc. 
 Identify and advise on the elimination of administrative bottlenecks confronting 
investors 
 Promote investment opportunities to both local and foreign investors 
 Conduct research on investment climate and trends, sector studies, identify, profile 
and market investment projects and avail this information to interested investors 
 Promote and facilitate joint venture arrangements and encourage domestic 
participation in investment initiatives 
 Issuing of the Certificates of Status Investment 
 Investment Incentives 
 Namibia is currently in the process of revising the previous policy, by redefining 
 
 A domestic and foreign investor and investment. 
 Investor performance requirements. 
 Restriction of some economic subsector to foreign investors. 
 2.11.  As part of drafting the regulation, whic h will form part of the final Act, the Ministry 
commissioned two studies to be undertaken.  The first study deals with the identification and 
classification of economic sectors for investment purposes, while the second study will develop the methodology for the establishment of an Integrat ed Client Service Facility or One-Stop-Shop. 
While the first is underway, the second study still needs to be undertaken. 
2.12.  The current policy includes equal treatment of domestic and foreign investors but this will 
be changed in new act, (for example with re gard to Government policy issues or, sector 
restrictions, as well as performance requirements for investors); openness of almost all the sectors 
to foreigners with few exceptions such as the extractive mining and fish sectors (to be changed in new act). The aim is that the new act will facilita te Foreign Direct Investment (FDI) into Namibia, 
in that it has more clear guidelines for foreign investors (e.g. with regard to thresholds, obligations 
of investors, sector openness and what is defined as investment). 
2.3  Export Processing Zone (EPZ) Act Program 
 
2.13.  The Export Processing Zone incentives are aimed at attracting investment in export oriented manufacturing and value addition activities. In this regard, the government through its 
implementation Agency the Offshore Developmen t Company is currently offering the following 
incentives through the Export Processing Zones Re gime or Program which are offered for a period 
of 10 years to qualifying companies: WT/TPR/G/324 • Southern African Customs Union 
 
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  corporate tax; 
 import tax; 
 VAT, stamp and transfer duties on goods and services required for EPZ activities. 
 2.14.  In the meantime, the government has recognized a need to review these incentives in order to improve the investment climate in the country. The review entails among others: an 
investigation of and comparison with other successful and viable industrial and export 
development and promotional strategies ad policy instruments in other countries with similar contexts/ characteristics like those of Namibia and formulate appropriate recommendations; profiling of existing and potential economic and industrial development opportunities taking into 
account the competitive advantages of the country; a review of the current organizational set ups 
of the institutions tasked with the implementa tion and administration of the EPZ and related 
industrial and export promotion and developmen t functions resorting under the Ministry of 
Industrialization, Trade and SME Development with a view to re-align and harmonize the roles of 
the agencies and enhance their coordination, pe rformance and delivery capacity as well as 
outcomes. The exercise has been completed and recommendations were made to the government. 
3  TRADE POLICY 
3.1  Trade Facilitation Measures Namibia Board of Trade 
 
3.1.  The Namibia Board of Trade is envisaged to provide for the administration and management 
of international trade in Namibia; to define the duties, functions and powers of the Minister in relation to the SACU Agreement and the management of international trade as well as: 
 To provide for the continued control of im port and export of goods and amendment 
of customs duties, rebates, refunds and du ty drawbacks within the context of the 
SACU Agreement;  
 To provide for other matters connected therein; to provide for the investigation, 
evaluation and determination of certain matters pertaining to trade; 
 The establishment of infant industry and unfair trade practices; and to provide for 
the designation of industries. 
 3.2.  This has been enacted under the International Trade Management Bill, which will only be 
finalised after the development of National Trad e Policy which is expected to be finalised by 
December as the Bill has to give effect to the policy.  
National Single Window Initiative  
 
3.3.  Namibia has embarked upon the establishmen t of a National Single Window with the aim to 
enable parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export and transit related regulatory requirements. If 
information is electronic, then individual da ta elements will only be submitted once. 
Benefits to Government: 
 Enhanced global and regional competitiveness 
 Significant increase in revenue  
 Better combined use of existing resources 
 Real-time accurate trade data and statistics 
 Increased transparency and accountability 
 Benefits to the trading community: 
 Reduce the cost of doing business and clearance time at entry points 
 Improve level of security 
 Enhance compliances by the traders 
 The traders will have access to standardized information and documents by logging 
on the system WT/TPR/G/324 • Southern African Customs Union 
 
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   Enhance efficient exchange of information between traders and stakeholders 
involved. 
 It is a platform that allows for real data exchange example the policy makers to 
make informed decisions. 
 Increased predictability 
 Simplified Government-trader information exchange 
 Reduced duplication and error 
 24hr availability 
 Development of knowledge and skills in ICT  
 
3.2  Trade Policy Framework 
3.4.  Namibia just initiated drafting the framewor k for the National Trade Policy, the country needs 
a strategy that defines the national trade interest, informs and guides the country’s engagement in 
the bilateral, regional and multilateral trade arrangements based on the national industrial and 
developmental policy objectives.  
3.5.  Currently, Namibia Trade Policy regime is derived from the context of SACU Agreement of 
2002 and SADC Protocol on Trade and other bilateral and multilateral arrangements including 
WTO. 
4  REGIONAL AND BILATERAL ARRANGEMENTS 4.1  Africa Growth Opportunity Act (AGOA) 
4.1.  The AGOA was endorsed in to law in May 2000, as a component of the Trade and 
Development Act that seeks to enhance trade an d investment between the US and Africa by 
providing a non-reciprocal trade preference for over 6,400 products originating from 37 eligible 
Sub- Saharan African (SSA) countries. Notably, th ese include items such as apparel and footwear, 
wine, certain motor vehicle components, a variety of agricultural products, chemicals, steel and so forth. 
4.2.  Namibia became AGOA beneficiary country in 2001 and qualified for the 'special rule' 
provision on apparel articles which allows the country to be classified as less developed in order to use third country inputs in the manufacture of AGOA eligible clothing.  
4.3.  Namibia's exports to the USA in 2010 were valued at over N$ 1.9 billion and increased to 
over N$2.9 billion in 2011. In 2012 and 2013 Namibia exports to the USA amounted to more than 
N$1.6 billion and N$2 billion respectively.  
4.4.  The positive trade balance for Namibia against  the USA as described above can mostly be 
ascribed to the value of exported minerals consisting of  Uranium ores and concentrates, 
non-industrial diamonds as well as refined copper. Namibia also exported fisheries products to the 
USA such as frozen fillets blocks etc. 
National Strategy for AGOA 
 4.5.  Namibia's strategy on AGOA is not docu mented in a policy format however interests of 
securing AGOA market access for products such as  Meat, grape and fish are well articulated. For 
the last couple of years, Government effort has been to ensure that products of Namibia exports 
interest i.e. beef, grape and fish, obtain market access to the USA under AGOA.  
Strategy for beef under AGOA 
 
4.6.  With respect to beef the process of obtain ing market access for Namibia meat products to the 
US under AGOA is at advanced stage.  Namibia is currently engaged with the United States 
Department of Agriculture-Food Safety Inspection  Services (USDA-FSIS) in an FSIS equivalence 
process for the export of beef to the US. The equivalence process is done in three steps. WT/TPR/G/324 • Southern African Customs Union 
 
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 Strategy on Grapes 
 4.7.  Namibia obtained equivalency certificate to export grapes to the USA back in 2009, with a public notice in the "USA Federal Register Vol.71,  No. 122". This notice also stipulates all the 
conditions under which Namibian table grapes can access the USA market. The requirements set 
forth stipules that the grapes must be fumigated with methyl bromide. Other  additional requirement is that upon arrival in the USA, grapes  which are normally transported at 
temperature of – 0.55 Centigrade need to be rapidly brought to a room temperature of 
15-20 centigrade to see if any fruit flies hatch ou t, before they can be released into the retail 
market. 
Strategy on Fish 
 
4.8.  Currently, there are some Namibian fishing companies that export hake to the US market; 
however, problems are being experienced with regard to logistics. There is a need to look into the 
entire logistics system, especially the transportation  and clearance, jointly with the US authorities. 
The Namibian Government believes that technical and administrative hiccups affecting access of the Namibian exports to the US should be mutually addressed by the two governments hence the 
focus is to engage the USA administration so that this issues is resolved. 
4.9.  During the lobbying mission undertaken by Namibia to the USA in April 2015, the importance 
of AGOA to SACU has been reiterated, with continued inclusion of all SACU Member States except Swaziland in the programme and thus the cooperation agreement has been extended for another 
10 years.  
4.2  COMESA-EAC-SADC Trip artite-FTA Negotiations 
4.10.  The COMESA-EAC-SADC Free Trade Area was launched in June 2015. A number of 
countries, including Namibia, signed the Agreement. As a member of SADC, Namibia is expected 
to access a Tripartite Free Trade Area market of around 600 million consumers with a combined Gross Domestic Product of US$1.3 trillion. This initiative would serve as an opportunity for our 
business persons and exporters of goods to access a free African market with opportunities for 
growth and employment creation. Lot of efforts woul d have to be put in place in order to benefit 
from these economic integrations. The need to expand our industrial base now more than ever, should become an important policy output hinging on the Public Private Partnership relationship 
taking into account our own adopted Industrial Policy. 
4.11.  As a member of SADC, Namibia signed the COMESA-EAC- SADC Tripartite Free Trade 
Agreement in June 2015; an agreement which is ex pected to provide diversified market access for 
Namibian exports as well as alternative competitive sourcing for industrial inputs. The Tripartite 
Free Trade Area represent an integrated market of 26 countries with a combined population of over 600 million consumers and a combined Gross Domestic Product of US$1.3 trillion.  
4.3  SACU-EFTA FTA 
4.12.  The Agreement entered into force on 1 May 2008. EFTA granted the SACU Member 
Countries free trade in all goods from the entry into force, whereas SACU Member Countries dismantle their tariffs progressively until 2014 on almost all industrial products.  
4.13.  The EFTA market has been providing market access for Namibia's major export products 
namely frozen boneless bovine meat to Norway and gold compounds, diamonds, refined copper and zinc not alloyed to Switzerland. Namibia imports pharmaceutical products, machinery and 
mechanical appliances from EFTA, which are used in health care and other industries.  
4.14.  Namibia and other SACU Member States are benefiting from capacity building provided by 
EFTA in a number of areas such as mutual administrative assistance in customs matters and rules 
of origin. The Agreement provides for liberal rules of origin and allows the use of up to 60% of 
non-originating input in the production of certain products. WT/TPR/G/324 • Southern African Customs Union 
 
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  4.4  SACU – INDIA PTA NEGOTIATIONS 
4.15.  SACU and India agreed to negotiate and co nclude a Preferential Trade Agreement (PTA). 
However, there has been little progress in the negotiations. India has on several occasions proposed that SACU agree to an average margin  of preference of 70%. SACU's consolidated 
response resulted in 10% average, very below the proposal. 
4.16.  The SACU-India Preferential Trade Agreement is still under negotiations. It is anticipated 
that the Agreement will provide additional secured market access for Namibia goods, giving special 
treatment in favour of goods exported from Namibia. India is an industrialised country making it a 
good country that will support process of industrialisation in Namibia through the provision of technology and inputs that could be imported from India. 
4.5  SADC EPA 
4.17.  The final negotiation meeting on the Economic Partnership Agreement (EPA) between the 
SADC EPA Group and the European Union (EU) was held on 15–17 July 2014 in South Africa. The parties concluded the negotiations and initialled the final EPA Text and its annexes pending legal 
scrubbing thereof. The initialling of the EPA Text was done to allow the EU to implement certain 
internal measures to avoid disruption of market access for Botswana, Namibia and Swaziland on 1 October 2014.  
4.18.  In view of the above, the last round of negotiations between the Southern African 
Development Community (SADC) EPA Group an d the European Commission (EC) on legal 
scrubbing was held in Brussels, Belgium on 10–13 March 2015. The last Joint meeting on legal scrubbing is scheduled for 27–30 July 2015 in Brussels, Belgium.  
4.19.  The benefit of signing the EPA is that the current preferential market access for beef, grapes 
and fish is maintained. However, the potential im provement of Namibia's beef exports to the EU 
depends largely on the domestic supply capacity as  well as the lifting of restrictions on bone-in 
exports for lamb. Given the current Duty Free Quota Free (DFQF) market access and the fact that 
Namibia has been unable to fill the Cotonou beef quota, it is unlikely that there will be an improvement in Namibia's beef exports to the EU as  a result of signing the EPA. Similarly, export 
for the grapes sector is maintained. This may however increase if the savings from the tariffs are 
re-invested in increasing the supply capacity of the sector. 
4.6  SADC FTA 4.20.  The SADC Protocol on Trade (2005), as amended, envisages the establishment of a Free 
Trade Area in the SADC Region by 2008 and its objectives are to further liberalise intra-regional 
trade in goods and services; ensure efficient production; contribute towards the improvement of the climate for domestic, cross-border and foreign investment; and enhance economic 
development, diversification and industrialization of the region. 
4.21.  Freeing trade in the region will create larger market, releasing the potential for trade, 
economic growth and employment creation. The SADC Free Trade Area seeks to meet the 
following needs of the private sector and other regional stakeholders: 
 Increased domestic production; 
 Greater business opportunities; 
 Higher regional imports and exports; 
 Access to cheaper inputs and consumer goods; 
 Greater employment opportunities; 
 More foreign direct investment and joint ventures; 
 The creation of regional value chains. 
 
4.7  Continental Free Trade Area (CFTA)   
4.22.  In line with the January 2015 African Union (AU) Summit Decision, The AU Summit held 
from 14–15 June 2015 in Johannesburg, launched the Continental Free Trade Area (CFTA) WT/TPR/G/324 • Southern African Customs Union 
 
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 negotiations The Summit also requested the CFTA (CFTA Negotiating Forum to organize its 
inaugural Meeting in 2015 and to work towards concluding the negotiations by 2017.  
4.23.  The main objectives of the CFTA are to create a single continental market for goods and 
services, with free movement of business persons and investments, and thus pave the way for 
accelerating the establishment of the Customs Union. It will also expand intra-African trade 
through better harmonization and coordination of trade liberalization and facilitation and 
instruments across the RECs and across Africa in general. The CFTA is also expected to boost 
intra-African Trade through overcoming dependence on exportation of primary products and 
promotion of social and economic transformation for inclusive growth industrialization and sustainable development in line with the AU Agenda 2063.  
4.8  Participation in the Multilateral Trading System - WTO  
4.24.  Namibia has been a WTO Member since its inception in 1995; hence its trade policy is 
heavily influenced by this membership. A key variable why Namibia supports the multilateral Trading system is that trade can spur economic  growth and development which could help to 
eradicate poverty. Namibia as a net food-import de veloping country has the objective of ensuring 
food security for its citizens.  
4.25.  Namibia continue to engage in the Doha Development Agenda (DDA) Negotiations which 
were launched in 2001 in Doha with developmental promises. It is understood that, the DDA 
negotiations if successfully concluded can help countries reduce poverty. 
4.26.  As stipulated in the national development plans and vision 2030 policy documents, Namibia 
has an aspiration to become an industrialized country by 2030. Industrialization in this context 
mean that Namibia's income per capita base would have grown to be equivalent to that of the 
upper income economies, resulting in a change in status from a lower middle income country to a high income country. Manufacturing and service sector should constitute about 80% of the 
country's gross domestic product etc. These important policy documents serve as catalyst to 
inform the national position when engaging in the multilateral trading system.  
4.27.  The multilateral trade negotiations have now become more complex, with many issues 
being covered and with close to 161 countries participating in the negotiations. The trade 
policymaking process is therefore critical to the identification of trade opportunities and challenges within the context of overall national economic policy objectives, so that a negotiating position can be formulated and promoted.  
4.28.  In this regard, Namibia's has been pursuing its trade and economic interests on DDA as part 
of alliances and coalitions of other WTO members, including NAMA 11, the African Union and the ACP Group of countries and G90.  
Dispute Settlement 
 4.29.  During the Dispute Settlement Body meeting held on 21 April 2011, Namibia had for the 
first time in its history reserved its third party rights in the WTO brought against the EU.  
4.30.  The dispute concerns regulations of th e European Union that generally prohibit the 
importation and marketing of seal products. The EU Seal Regime provides for various exceptions to the prohibition if certain conditions are met, including for seal products derived from hunts 
conducted by Inuit or indigenous communities (IC exception) and hunts conducted for marine 
resource management purposes (MRM exception). 
4.31.  The Appellate Body completed the analysis and ultimately found, as did the Panel, that the 
European Union had not justified its Seal Regime on some WTO provisions. The European Union 
agreed to implement the DSB recommendations and rulings by 18 October 2015. WT/TPR/G/324 • Southern African Customs Union 
 
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  Technical Assistance 
 4.32.  The Namibian Trade Office in Geneva coordinates activities related to the WTO technical assistance matters in conjunction with the Ministry of Industrialization, Trade and SME 
Development as a National focal point on the WTO issues.  
4.33.  It has been reported that since 2009 Namibia hosted various workshops, seminars and 
courses organized by the WTO. This enabled Namibia to enrol more participants on these activities 
than other participating countries. Two officials from the Ministry of Trade, Industrialisation and 
SME Development had completed the two-month advanced and trade policy held in Geneva. Furthermore, more officials also completed the Regional Trade Policy Courses, seminars and workshop held in Swaziland and Botswana. 
4.34.  Namibia has further requested the WTO to facilitate national activities on trade facilitation, 
non-agricultural market access (NAMA) and trade remedies in order to build capacity to cope with the complexity of negotiations under the Doha Development Agenda.  
5  CONCLUSION 
5.1.  The Sixth Trade Policy Review of Namibia is taking place at a time when the prognosis for 
Namibia's growth prospects is robustly optimistic as reflected in various forecasts. Several 
significant steps have been taken to re-energise the economy and there is a strong focus on 
accelerating growth, enhancing investment and increasing value addition on our raw materials and employment creation thus passing on the benefit of the growth process to the common man. WT/TPR/G/324 • Southern African Customs Union 
 
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 REFERENCES 
Annual Trade Statistics Bulletin 2014.  Bank of Namibia, Annual Report 2014. Namibia's Fourth National Development Plan 2012/13 to 2016/17. 
Namibia Statistics Agency, Gross Domestic Product 1
st Quarter June 2015. 
Preliminary National Account 2014. The Namibia Labour Force Survey 2014 Report. 
 
  WT/TPR/G/324 • Southern African Customs Union 
 
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  SOUTH AFRICA 
1  INTRODUCTION 1.1.  This fourth trade policy review is significant in that it comes at the time when SACU had 
celebrated in 2010 centenary of its existence and South Africa two decades of democracy in 2014. 
The lingering effect of the worst global economic since the Great Depression has, however, casted 
a pall on these celebrations. This trade policy review shall also be used to reflect on how far South Africa has come since 1994. Accordingly, deepening integration since 1994 culminated in 
significant reduction in tariff barriers, capital controls on non-residents were abolished, and 
financial markets were also liberalized. 
1.2.  South Africa is able to access foreign savings, our firms can access global markets including 
foreign technology, and government can raise capital abroad for its investments. These reforms, 
however, have contributed to structural changes in the economy in a manner that have favoured a 
highly mobile capital (skill-biased technology) and/ or skilled-labour-intensive production often at 
the expense of low-skilled/labour-intensive produc tion. In addition, the entry of a billion more 
workers into the global labour force intensified competition among workers which further 
depressed wages for most workers around the world including South Africa.  
1.3.  The country was not immune to external shocks as attested by impact of the Asian crisis and 
Russian debt default shortly after the dawn of democracy, the dot com bubble 1997-2000 and the 
events in the US in September 2001, and the su b-prime crisis in 1997, which eventually mutated 
into the worst global economic crisis since the Great Depression. The precarious global situation which ensued eventually plunged South Africa into its first recession in 17 years. The global 
economic crisis had put into sharp relief once again the necessity to transform a number of 
longstanding structural imbalances and weaknesses to place the economy on a new sustainable and productive growth path. The structural weak nesses derived from the reality of an economy 
that remained insufficiently diversified and too largely dependent on primary mineral exports.  
1.4.  We remain convinced that efforts to grow manufacturing in South Africa remain fundamental 
to placing our economy on a new path of sustainable growth. The central task henceforth will be to 
bring about radical economic transformation. Th is has a number of dimensions but requires, 
among other things, that our industrial policy im pact is increased to the point that industrial 
development becomes a key driver of higher levels  of growth along a qualitatively different new 
growth path. The elements of "Higher Impact Industrial Policy"  include building on and expanding 
the infrastructure development programme, implem entation of a number of mineral beneficiation 
projects, pursuing active development integration on the African continent and re-positioning South African manufacturing in a continent that is itself seeking to industrialize.  
2  DEVELOPMENTS IN THE MACRO-ECONOMY 
2.1.  The country continues to grapple with key challenges of poverty, unemployment and 
inequality. In light of this, government adopted a much more expansionary fiscal and 
accommodative monetary policies stance in an effort to supporting economic activity and 
employment. On the fiscal side, the Presidential Infrastructure Coordination Commission (PICC) produced a comprehensive and coherent infrastructure plan capable both of providing a counter-cyclical response to the world's economic travails, while laying the basis for economic 
development, including a major wave of industrialisation. On the hand, monetary policy has been 
supportive of credit extension and consumption by reducing rates to historic lows. In an effort to mitigate the effect of the crisis the South Afri can Reserve Bank, following the flexible inflation 
targeting framework, has reduced interest to a hi storical lows of 5.5% in nominal terms in 2008. 
As the crisis abated, real interest rates increased albeit remained negative for several years before 
reaching the positive in late 2014. 
2.2.  The economic development strategy that South Africa embarked upon sought to accelerate 
growth along a path that generates sustainable, decent jobs in order to reduce the poverty and the extreme inequalities that still characterise its society and economy. The economy registered an 
average of 3% growth between 1994 and 2003 th en nudged an average of 5% between 2004 and WT/TPR/G/324 • Southern African Customs Union 
 
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 2008. Consequently 2 million jobs were created over the latter period and thus made a dent to 
unemployment. Similarly, the OECD Report indicates that the country registered an average growth of 3.1% from 2000 to 2014 but this pa les in comparison with other emerging-market 
growth levels. Unemployment has consequently remained unacceptably high given that a 
sustained growth of at least 5% is clearly warranted. Challenges cited above notwithstanding, the 
Twenty year review of South Africa  Report  (henceforth the Report) notes that gross national 
income per capita rose from R 28 536 in 1994 to R 37 423 in 2013. In light of this, the report 
acknowledges that some progress in reducing poverty has been registered despite pervasive 
poverty and inequality still obtain. 
2.3.  Over the period under review growth in de veloping countries, for some time the mainstay of 
the world economy, has slowed resulting in the down ward revision of global growth by the IMF to 
3.5% in 2015 and 3.7% in 2016. Economic recovery in South Africa after the financial crisis, 
however, was in keeping with the global recove ry. Economic growths of 3.0% and 3.2% were 
registered in 2010 and 2011 respectively; since then the economy has decelerated. Low growth in 
South Africa is the consequence of the following global factors: (i) foreign demand and economic 
growth have weakened from pre-crisis average, and (ii) commodity prices have been declining 
since 2011. Domestic factors were also to blame for this mediocre growth. The country suffered 
protracted labour strikes particularly in mining and manufacturing sectors, lately electricity supply 
has become a major constraint to growth. Government has, however, put in place programmes and projects aimed at addressing these challenges. New power stations are being built and Government is facilitating engagements between business and labour, including agreement on a 
national minimum wage within South Africa's legislative framework in an attempt to avert 
protracted labour strikes.  The economy is expected to continue to grow albeit slowly by 2.0% in 
2015, 2.1% in 2016, and 2.6% in 2017.  
3  RELATED POLICY DEVELOPMENTS 
3.1  Trade Policy and Strategy Framework (TPSF) 3.1.  In 2010, the DTI updated the South African Trade Policy and Strategy Framework document 
amid the lingering impact of the 2007-10 Great Recession. The TPSF 2010 was the outcome of a 
three-year review undertaken in consultation with  other government departments, policy experts, 
Parliament, business and labour. The policy docume nt outlines how trade policy and strategy in 
South Africa can make a contribution to the object ives of upgrading and diversifying the economic 
base in order to increase the production and export of value added products that generate 
employment. This policy framework is set out in the context of the development of the overall 
growth path for South Africa that seeks to accelerate economic growth and development, boost 
industrial capacity and generate decent jobs in the economy.  
3.2.  While South Africa's trade and investment relations with developed countries remain 
important, its future growth and development pr ospects will increasingly require strengthening 
relations with the dynamic and growing emerging ec onomies. Africa has emerged as South Africa's 
most important market for its manufactured exports. The continent is well-poised to become the next global economic growth pole, but its full potential will remain unfulfilled unless we collectively and decisively address the constraints imposed by poor infrastructure, small, fragmented markets, 
and inadequate economic diversification. For th ese reasons, we have advanced an ambitious 
developmental integration agenda in our engagements with our African partners, that combines programmes for market integration with infrastructure development and policy work to support 
economic diversification and industrialisation. Thus the "development integration" approach to 
economic development and integration in Africa would entail a specific focus on regional integration in SACU, SADC and in the recently launched Trilateral Free Trade Agreement (T-FTA) 
and the Continental Free Trade Agreement. 
3.2  New Growth Path (NGP) 3.3.  The New Growth Path (NGP) was launched in 2010. It was considered to be a key jobs driver, 
with potential inclusive of the agriculture, mining, manufacturing and tourism sectors. NGP is a 
strategy for inclusive growth and job creation. To this end, the NGP aims over 10 years to create 
5 million jobs and reduce unemployment to 15%.  Government has also reached a series of 
stakeholder agreements regarding the implementa tion of elements of the NGP, notably in WT/TPR/G/324 • Southern African Customs Union 
 
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  education and skills development, green growth and local procurement. Progress has been made 
in measuring income distribution and developing a macroeconomic framework to support sustainable growth. The focus on labour absorption has helped develop policy in areas such as mineral beneficiation. Significant procurement reforms to promote employment were completed in 
December 2011. 
3.4.  Accordingly we have sought to strengthen  our procurement system to support increasing 
local industrial production. In this regard, sectors already designated include: 
(i) Rail rolling stock (locomotives, wagons and carriages); 
(ii) Power pylons; 
(iii) Bus bodies; 
(iv) Textile, Clothing, Leather and Footwear; 
(v) Canned vegetables; 
(vi) Furniture; 
(vii) Certain Pharmaceuticals; and  
(viii)  Set top boxes 
3.3  Industrial Policy Action Plan (IPAP) 
3.5.  The Industrial Policy Action Plan has now been institutionalised and the seventh iteration of 
IPAP was launched in 2015. It represents a significant step forward in scaling up our efforts to 
promote long term industrialization and industrial diversification beyond our current reliance on 
traditional commodities and non-tradable services. It will contribute to the structural changes needed by expanding production in value-adde d sectors with high employment and growth 
multipliers. The Action Plan accordingly places em phasis on more labour absorbing production and 
services sectors, on increased participation of hi storically disadvantaged people and regions in our 
economy and aims to facilitate, in the medium term, South Africa's contribution to industrial development in the African region. 
3.6.  The Special Economic Zones (SEZ) programme  is one of a number of new instruments we 
have developed to create an appropriate environment for foreign direct and domestic investment as well as the development of strategic industrial capabilities. SEZs also enable the development of 
new industrial regions and the strengthening of ex isting ones. In order to ensure that the SEZ 
programme is effective, a dedicated and integrated legislative framework was warranted. To this end, the Special Economic Zones Bill was promul gated in 2014. The SEZ Bill provides for the 
designation, promotion, development, operation and management of a broad range of Special 
Economic Zones. The Industrial Development Zone (IDZ) is a variant of an SEZ and thus will 
automatically be part of the SEZ programme. This will enable government to effectively regulate all SEZs, including the Industrial Development Zones (IDZs). In 2013, Saldanha Bay was 
proclaimed as an IDZ, few others were mooted and they will span the nine provinces. We have no 
doubt that the combination of support available through the SEZ programme will lead to an 
increase in productive investment by the private sector.  
3.4  National Development Plan (NDP) 
3.7.  The diagnostic report of the National Planning Commission identified poverty, unemployment 
and inequality as key challenges still confronting South Africa. The NDP spells out a vision of South Africa in 2030 characterized by higher leve ls of inclusive economic growth capable of 
reducing the triple scourges of unemployment, poverty and inequality. The NDP is a national vision 
and not only a Government plan and it is broa dly shared by all stakeholders as key in the 
transformation of the South African economy. To reach this vision, the NDP sets long-term targets 
for investment, growth and employment creation, an d provides a holistic plan for reaching these 
targets, drawing on other policies and programmes. Core themes in these strategies have been an accent on infrastructure both to support growth  and bring about greater equality, the need for 
sector strategies to encourage diversification of the economy into more employment-friendly 
sectors, the imperative of improving basic educ ation and skills development, and the recognition 
that African development is critical for South Africa's own growth. WT/TPR/G/324 • Southern African Customs Union 
 
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 4  TRADE-RELATED POLICY DEVELOPMENT 
4.1  Agriculture 4.1.  Since the financial year 2009/10 the new mandate for agriculture extended to forestry and 
fisheries; due to its critical role for food security and sustainable natural resource management. 
One of the most significant policy shifts affecting South Africa's agriculture, forestry and fisheries 
sectors, has been the progressive deregulation of  markets, which largely took place during the 
1990s. The OECD recognises South Africa's agriculture sector as among the least supported in the 
world. 
4.2.  Striving towards enhanced production, employment and economic growth in the sector; an 
enabling environment for food security and sect or transformation; and the sustainable use of 
natural resources in the sector are the response to achieving the National Development Plan's 
(NDP) objectives and targets.  
4.3.  The agriculture sector has been identified in the Governments New Growth Path as one of the 
drivers for economic development and job creation . Governments vision for the sector is a united 
and transformed agriculture, forestry and fisherie s sector that ensures food security for all and 
economic prosperity.  
  Advancing food security and transformation of the sector through innovative, inclusive and 
sustainable policies, legislation and programmes. 
  Enhance production, employment and economic gr owth in the sector by ensuring profitable 
and safe production that contributes to in creased market access by promoting economic 
development, trade and market access for agriculture, forestry and fisheries products and 
foster international relations for the sector. 
  An enabling environment for food security and sector transformation by promoting 
household food security and agrarian reform programmes and initiatives through the 
implementation of the National Policy on Food  and Nutrition Security targeting subsistence, 
smallholder and commercial producers. 
  Ensure sustainable use of natural resources by promoting sustainable agricultural 
production through the management of risks associated with animal diseases, plant pests, 
genetically modified organisms (GMOs) and the registration of products used in agriculture; promote food safety and create  an enabling environment for increased and 
sustainable agricultural production. 
  Information and knowledge management. 
  Technical and advisory assistance and regulatory services. 
  Training and capacity building. 
  Financial assistance. 
4.4.  A challenge for the agricultural sector was rising food prices, globally, nationally and at the 
household level. The Department embarked on campaigns called , Fetsa Tlala aimed at massive 
production of staple foods on fallow land that has the potential for agricultural production; 
Illima/Letsema aimed at supporting sustainable ag riculture and promoting rural development for 
smallholder producers; and LandCare to address land degradation problems and encourage sustainable use of natural resources.  
5  INTERNATIONAL ARRANGEMEN TS AND TRADE NEGOTIATIONS 
5.1  The Economic Partnership Agreement (EPA) 5.1.  After ten years of preparations and nego tiations, the EPA between the SADC EPA Group and 
the EU was "initialled" in Pretoria, South Africa , on 15 July 2014. The initialling of the Agreement 
signals that the negotiations are concluded. The timing is significant because it pre-empted the 
1 October 2014 deadline imposed by the EU afte r which Botswana, Namibia and Swaziland would 
have lost preferential access to the EU market for their exports of beef, fish, sugar on which their WT/TPR/G/324 • Southern African Customs Union 
 
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  economies depend heavily. The EU has assured us all that the act of initialling ensures that the 
current market access will continue until the agreement enters into force. 
5.2.  South Africa had two central objectives in the EPA negotiations. First, we sought an outcome 
that would preserve coherence in the Southern African Customs Union (SACU) in terms of 
protecting the common external tariff that is at the core of the Union. Second, we sought to 
improve our access to the EU market over and above what currently obtains under the bilateral 
Trade, Development and Cooperation Agreement (T DCA). More specifically, we sought improved 
access for South Africa's agricultural products. The EPA outcome achieves these objectives.  
5.3.  In terms of the process and timeframe for entry into force, the Agreement has been 
subjected to a legal vetting process. Thereafter, th e Agreement will be presented to Cabinet and, if 
approved, submitted to the South African Parliament for ratification. Once ratified, the Agreement 
may be signed, and it will enter into force once all Parties have concluded their own respective 
national approval processes.  
5.2  The African Growth and Opportunity Act (AGOA) 
5.4.  AGOA is a unilateral preferential progra mme for about 6400 tariff lines including those 
provided by Generalised System of Preference (GSP) that the US offers to 48 African sub-Saharan countries. About 38 countries, including South Africa currently are beneficiaries of AGOA. As the 
current AGOA will expire at the end of September 2015, the US Congress has approved the Trade 
Preferences Extension Act (TPEA) of 2015 on 29 June 2015. The TPEA, amongst others, extends 
AGOA benefits for 10 years until 30 September 2025 and also the Generalised System of Preferences (GSP) until 31 December 2017.  
5.5.  South Africa has been a significant beneficiary of AGOA as it has been able to utilize these 
preferences to expand its exports in significant high value growth sectors of the South African 
economy, such as automobiles, chemicals, wine, and citrus. In 2014, major AGOA-beneficiary 
sectors, amongst others, included vehicles, mineral and metals, chemicals, and agricultural 
products. 
5.6.  It is of concern that the TPEA has mainta ined a provision that require a 30 day Out-of-Cycle 
Review, specifically aimed at South Africa, after enactment. In our view this is an unnecessary 
provision as the discussions with the USTR on issues that are of mutual concern can be discussed satisfactorily in the existing bilateral platform that exist between our two countries in the context of the Trade and Investment Framework Agreement (TIFA) that meets on an annual basis. It has 
always been our view that the SA-US trade and investment relationship has been working well 
reflected in the growing presence of more than 600 US companies in South Africa and a growing 
bilateral trade relationship.  
5.3  The Group of Twenty (G-20) 
5.7.  The G-20 was established in 1999, as a forum of Finance Ministers and Central Bank 
Governors, to bring together important industri alised and developing economies to discuss key 
issues in the global economy. The Group was create d as a response to the Asian financial crisis of 
the late 1990s. At the core of its founding mandate, was the G-20's role "to prevent another 
regional or global financial crisis" through involvement of the key emerging market economies in discussions relating to the global economy and governance."  
5.8.  It was the global financial crisis which began in the USA which led to the convening of the 
first G-20 Leaders' Summit in Washington in November 2008. In light of these developments the G-20 discussions and processes follow a two track approach namely the finance ministers and 
central bank governors track, and the leaders trac k. The latter has been seized with addressing 
the financial crisis while the former continue to meet regularly in support of the Leaders' process.  
5.9.  A critical aspect of South Africa's G20 outreach strategy is focused on Africa. While 
South Africa does not directly represent Africa n economies, it needs to be mindful of the 
developments in the region so it may work to en sure that G20 policies do not negatively impact 
the region. As the only permanent African memb er of the G20, South Africa has used its 
participation to raise issues of concern to Africa with other G20 members. In this regard, it is WT/TPR/G/324 • Southern African Customs Union 
 
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 important that South Africa continue to engage with regional economies to better understand their 
views on the G20 agenda. This continues to be  important notwithstanding that the countries 
chairing the African Union (AU) and the NEPAD Heads of State and Government Orientation Committee have been invited to attend G20 Summits and are permanent invitees to the 
G20 Sherpa and Development Working Group (DWG)  meetings. Despite having three seats at 
these G20 meetings, Africa's participation remains uncoordinated and stifled.  
5.4  Trade Facilitation Agreement (TFA) 
5.10.  There has been great acclamation that the Ninth WTO Conference delivered the 
first outcome of the Doha Round following the prolonged impasse in the negotiations that stretches back to 2008. A positive interpretation would sugg est that the Bali outcome lays the basis for a re-
start of the Doha Round negotiations. Alternatively, the outcome may have laid the basis for an 
approach in which the specific issues of interest to the more powerful members of the WTO will be 
advanced, while the issues of importance to the weaker members are marginalized.  
5.11.  This latter dynamic was evident in Bali where issues of importance to most developing 
countries, including least developed countries (LDCs), including elimination of export subsidies, 
duty and quota free (DFQF) market access for LDCs , and establishing a monitoring mechanism on 
special and differential treatment in favour of developing countries, were all crafted in best 
endeavour, non-binding language that leave them to  be taken up in future, if at all. Developing 
countries, led by India, did however manage to deliver a positive outcome on food security through public stockholding food programmes for poor people. An interim solution was negotiated in which public stockholding programmes cannot be challenged until a permanent solution is 
found. 
5.12.  The trade facilitation agreement (TFA) involves simplifying customs and other border 
procedures (health inspections, standards requirements or testing) in order to reduce customs and 
transit barriers, and move goods across borders controls faster and at lower cost. Thus there are 
potential benefits to trade facilitation, particularly  in respect of achieving efficiencies in customs 
and border procedures. The TFA may also help to boost intra-Africa trade, provided it is 
implemented in a manner that supports regional integration in Africa and that adequate financial 
and technical support is indeed provided for its implementation. For their part, African countries including South Africa have made strides in pursing programmes for trade facilitation across our various regional integration programmes. 
5.13.  Potential benefits notwithstanding, consider ation must also be given to the impact of the 
TFA on the regional integration processes in Africa. African countries need to ensure that benefits of trade facilitation support the continent's structural transformation, integration and industrial 
development and not simply provide easier access to their markets for products outside the 
continent. In this respect, African countries will need to schedule their TF commitments in a manner that ensures coherence with regional and continental integration objectives. 
5.14.  In conclusion, food security is a critical  challenge facing many poor countries around the 
world, particularly in Africa. Therefore South Afri ca congratulates India and the US on reaching a 
resolution on the issue of Public Stockholding for food security. 
5.5  The Southern African Development Co mmunity (SADC) Trade Protocol, Southern 
African Customs Union (SACU), and Tripartite Free Trade Agreement 
5.15.  The Commission for Africa has aptly noted that supply-side constraints among others were 
arresting intra-Africa trade.
1 In light of this, South Africa is participating actively in the ambitious 
integration and development agenda in Africa. In particular, we are seeking to advance what we 
call "development integration" in the Southern African Customs Union (SACU), the Southern African Development Community (SADC) and in th e recently launched Tripartite Initiative to 
integrate SADC, the East African Community (EAC) and the Common Market for Eastern and 
Southern Africa (COMESA). 
                                               
1 Commission for Africa was published on 11 March 2005. The report asserts that improved trading 
capacity in Africa will depend on four areas of acti on: i) an enabling environment for the private sector, 
ii) infrastructure, iii) reducing Africa's barriers and iv) diversifying out of commodity dependency. WT/TPR/G/324 • Southern African Customs Union 
 
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  5.16.  By development integration, we mean an approach that combines market integration, cross-
border infrastructure development through among others, the Spatial Development Initiatives, and 
policy coordination to advance regional industrial value-chains. We have pursued this agenda with a good degree of success in SACU and SADC and it underpins the approach that has been agreed 
in the SADC-EAC-COMESA Tripartite initiative. 
5.17.  In SACU, South Africa is working with  Botswana, Lesotho, Namibia and Swaziland to 
implement the SACU five-point work programme, which focuses on:  
  promoting regional industrialisation through the establishment of cross border value 
chains;  
  using joint revenue to more directly the implementation of the five- point work 
programme and support infrastructure development and industrialisation;  
  advancing trade facilitation initiatives among the member states;  
  developing common SACU institutions; and  
  strengthening unified engagement in trade negotiations with third parties.  
 
5.18.  Market integration is well-advanced in SADC. The full implementation of the tariff phase down among SADC members, with 92% of goods now trading at zero duty, was consummated in 
2012. Our focus now is consolidating the FTA by addressing outstanding issues related to the 
review of some rules of origin, trade facilitation, harmonizing regional standards and beginning to work promoting regional productive capacity to ta ke advantage of the more open regional trading 
environment.  
5.19.  We have also agreed to extend the free trade area by launching tripartite negotiations 
between members of Southern African Develo pment Community (SADC), the East African 
Community (EAC) and Common Market of Eastern and Southern Africa (COMESA). Negotiations 
have commenced in the market access pillar, which as the first stage will cover trade in goods. The 
trade and tariff negotiations are being complemented by work on cross border infrastructure on the North-South Corridor. This work involves the upgrading of rail and road infrastructure, 
alongside the establishment of one-stop border posts. 
5.20.  Once established, the T-FTA will combine th e markets of 26 countries with a population of 
nearly 600 million people and a combined GDP of US$1 trillion, providing the market scale that could launch a sizeable part of the continent onto a new developmental trajectory. 
5.21.  At the level of the African Union, work is at an early stage but is underway to define 
modalities to launch FTA negotiations in 2017. This aims to build on the T-FTA along with regional integration projects in Central and West Africa. These are early days but the basis is steadily being 
laid. 
5.6  Multilateral Trade Negotiations in the WTO 5.22.  South Africa views multilateralism as the necessary intergovernmental response to 
managing globalisation and deepening interdependence of national economies. We look to the 
multilateral trading system to advance the global development agenda and to tackle 
underdevelopment and the eradication of poverty.  To this extent we remain committed to 
strengthening the multilateral trading system and reiterate the importance of an open-and rules 
based system and underscore the central role of the WTO in this regard. It is in the interest of all 
countries that a mutually beneficial multilateral trading system continues to develop, one that recognizes the differential impacts on count ries while ensuring that all benefit.  
5.23.  The result of a series of missed deadlines to conclude the Doha Round especially for 
developing countries includes that the Doha development objectives remain in abeyance and the mandate may be in danger of unraveling. Potential gains that have important systemic 
implications for the development prospects of developing countries may be lost, particularly with 
respect to agriculture. While the WTO will remain the premier intergovernmental body for implementing the Uruguay Round outcomes, prov iding oversight for the international trading 
system and for settling international trade disputes, the failure to conclude the Doha Round is 
likely to see the impetus for global trade integration shift to regional and bilateral efforts. WT/TPR/G/324 • Southern African Customs Union 
 
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 5.24.  We need to access the impact of the recent acceleration in the negotiations of 
preferential/regional trade agreements on the mult ilateral negotiation process in the WTO. While 
these agreements have the potential to contribute to liberalization of trade and investment, they can fragment the global level playing field since they erode the principle of non-discrimination or 
most favoured nation (MFN) enshrined in Article 1 of the GATT. It is concerning that on issues, like 
services, that developed countries cannot get the necessary traction on their positions in the WTO negotiations they are now starting to nego tiate their own agreements between like-minded 
countries. These so called plurilateral negotiations can have a serious impact on the 
WTO negotiations in these areas and also undermine the principle of single undertaking. We need a multilateral trading system that is fair, balanced, inclusive, and development oriented. 
5.25.  We concur with the observation made exactly ten years ago by the Commission for Africa 
that multilateral agreements provide the main framework of rules and terms for trade. Starting in 
1945, developed countries made efforts to eliminate "beggar-thy-neighbour" trade barriers. Up until the Uruguay Round (1986-1994) developing countries had little voice in trade negotiations, 
and as a result virtually no attention was given to the products in which poorer countries 
specialised... The Doha Development Round of world trade talks is aimed at bringing down tariffs and other barriers to trade on the products that are most important to developing countries . 
5.7  South-South Cooperation 
5.26.  As demand and growth in the North is likely to remain constrained in the foreseeable future; 
South Africa's prospects for economic growth and development will increasingly depend on 
diversifying and strengthening economic links with dynamic economies in the South and in Africa. 
To this end, our participation in the BRICS grouping, is a significant components in this 
diversification strategy as it provides important opportunities to build South Africa's domestic manufacturing base, enhance value-added exports,  promote technology sharing, support small 
business development and expand trade and investment opportunities. 
5.27.  In light of the slow, protracted and uneven recovery across countries from the global 
economic crisis; most rapid growth in trade ha s been between South Africa and other emerging 
economies, notably China which is now its largest trading partner since 2010.  
5.8  BRICS Forum 5.28.  South Africa has joined the league of top performing emerging countries in the world known 
as BRIC
2 countries, effective from December 2010. The move is in line with the country's foreign 
policy to strengthen South-South relations. This group has received a huge amount of capital 
inflows even in the wake of the Global economic crisis. For South Africa, its membership to BRICS 
countries presents an opportunity for the continent and the benefit will be in terms of investment 
and the infrastructure projects. An expansion in infrastructure investment is one of the central 
priorities of our government. The country and in particular, the continent is rich in natural resources and its inclusion will be beneficial for China and India, because they are more abundant 
in the manufacturing of the value added products and the services sector. For Brazil and Russia (a 
major exporter of fossil fuel) the benefit will be in  the natural resource that South Africa does not 
have as they are also more abundant in natural resources. 
 
                                               
2 Brazil, Russia, India and China group of countries. WT/TPR/G/324 • Southern African Customs Union 
 
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  SWAZILAND 
1  INTRODUCTION 1.1.  The Trade Policy Review for the Kingdom of  Swaziland covering the period 2010-15 highlights 
in detail the challenges that the country has face d over the past years. Most prominent has been 
fiscal challenges, which resulted in the halting on several capital projects and further led to the 
reduction in the country's recurrent expenditure which saw an economic slump. Also highlighted are mitigation measures that the country is currently implementing and others that are still on the 
pipeline. 
2  OVERVIEW AND ECONOMIC PERFORMANCE  
2.1.  Swaziland is a small land-locked country covering an area of 17,364 km2. In 2013, the 
population was estimated at 1,093,158 and GDP grew  by 3% reaching SZL 39 billion compared to 
a stronger growth performance in 2012 of 3.7% . The main driver of growth in 2013 was the 
primary sector, which recovered from a decline of 1.7% in 2012, rising by 5.9% in 2013.  
2.2.  In the primary sector, maize production recovered from 76,100 metric tons produced the 
previous year to 81,900 metric tons in 2013 whilst cotton production grew from 1,951 metric tons 
to 2,400 metric tons over the same period. Prod uction of crops (mainly sugarcane and citrus) in 
the Individual Tenure Farms (ITFs) was however affected by unfavorable weather conditions 
characterized by storms and heavy rains which part ially affected the quality of the produce. The 
mining and quarry sector on the other hand is estimated to have grown by 28.8% mainly benefiting from increased coal and iron ore production in 2013.  
2.3.  In the secondary sector, manufacturing prod uction grew by 2.5% in 2013 compared to 0.2% 
in 2012 mainly driven by increased production of zi ppers, soft drinks concentrates and beverages, 
timber products, fruit cups and increased production lines by manufacturing companies. However, growth in the manufacturing sector could have been higher if it were not for muted growth in 
sugar production, which suffered the effects of poor quality cane due to heavy rains during the 
harvesting period. Most of the capital expenditure was directed towards road construction activities and completion of the King Mswati III International Airport. 
2.4.  Growth in the tertiary sector mainly benefited from expansions in the "wholesale and retail 
trade", "transport and communication" and "government services". Central government services registered positive growth as a result of the susp ension in the freezing of posts and in the hiring 
freeze in 2013/14, which had been implemented the previous years. 
3  ECONOMIC DEVELOPMENT AND REFORM INITIATIVES 
3.1.  While the global financial crisis, which emerged in 2007, was resolved to a large extent, the 
residual damage to economic growth is still evident in many countries. Swaziland's export 
markets, mainly South Africa and the countries of Europe and North America, continue to carry low 
rates of economic growth which leave the impact  of reduced purchasing power and thus modest 
levels of demand for Swazi goods. In an economy substantially dependent on the spending ability 
of its public sector, the level of receipts for the Swaziland Government from the Southern African 
Customs Union (SACU) has a significant impact on private sector activity. It is also a key determinant of the extent and quality of public service delivery, which stands at the top of Government priorities. Although the level of SACU receipts has seen a rise in the past two years, 
reducing to a less severe degree the fiscal stringency in the public sector, the unpredictability and 
uncontrollability of this source of revenue, from  a Swaziland perspective, remains a key challenge 
for the country. It needs to be emphasized that the type of growth that is required should be due 
to rising productivity of Swazi workers, rather  than growth due only to temporary raised SACU 
receipts. Growth due to higher productivity will ensure that the improvements are sustained rather than temporary, and shared rather than concentrated in small parts of the economy. 
3.2.  In 2010 His Majesty the King and Ingwenyama presented to the Nation his Vision that 
Swaziland should be a first world country and that progress towards that Vision should be evident by 2022. Within the coming eight years to 2022, the next five years represent a large portion. An WT/TPR/G/324 • Southern African Customs Union 
 
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 important strategy is therefore that the activi ties of the 2013-18 period make a significant 
contribution towards the attainment of the Vision. Vision 2022 accordingly represents the motivating strategy for Government, and the base upon which the Programme of Action is built. The prevailing theme for the Programme of Action  2013-18 is therefore the drive to secure a huge 
expansion of foreign and domestic large scale investment, substantially accelerated growth in 
small, medium and micro scale enterprises, giving rise to taxes and duties that will enable Government to meet the service targets of 2022. Key objectives are drawn mainly from the 
National Development Strategy, Investor Road Map, Vision 2022 and the Programme of Action 
2013-2018. Reforms to be implemented by the Government focus on the following objectives: 
(a) Improvement in revenue collection, management and diversification of the revenue 
base.  
(b) Attraction and retention of Foreign Direct Investment and support of Small Medium 
Enterprises.  
(c) Industrial and Agricultural Development targeting job creation.  
(d) Tourism and job creation.  
3.1  Improvement in revenue collection, mana gement and diversification of the revenue 
base 
3.3.  It is crucial to remember the importance of fiscal prudence and financial control. In the last 
few years the global financial crisis, with the resultant economic recession among our trading 
partners, gave rise to severe fiscal difficulties in Government, requiring a considerable amount of both stringency and resourcefulness from Government within the Fiscal Adjustment Roadmap 
(FAR), and necessitating some reduction in planned capital programmes. Given the uncertainties 
attached to future revenue receivable from th e Southern African Customs Union (SACU) it is 
essential, where the revenue arising from the annu al SACU payment is higher than expected, that 
Government build a financial cushion to protect the public sector from any downside trend that 
might arise in future years. Moving away from this heavy reliance on SACU revenue for the bulk of 
public sector financial resources requires a very substantial increase in domestic-source revenue. As in most free market economies of the world this will arise primarily from taxes and duties and it 
is envisaged that the recent performance of the Swaziland Revenue Authority (SRA), in increasing 
the revenue from these sources, will be continue d. The universal acceptance of, and commitment 
to, the obligation of all individuals and companies to meet the legislative requirements in respect 
of taxes and duties will make Government's task considerably easier.  
3.4.  Government derives a majority its total revenues from SACU receipts. Since the economic 
crisis in 2011, a number of measures have been introduced to reduce the reliance on SACU revenues, including the establishment of SRA and reviewing of personal income tax thresholds. 
Government is actively engaged in efforts towards improving private sector competitiveness in 
order to boost economic performance and increase tax collection. A range of infrastructural development funded by Government supports econ omic growth, including: irrigation projects, 
roads construction and airport infrastructure development. These projects aim to reduce 
infrastructure bottlenecks in the economy and attract foreign direct investment.  
3.5.  By far the largest component of recurrent ex penditure is the public sector payroll which, at 
15% of GDP, and 55% of Government recurrent expe nditure, is one of the highest in sub-Saharan 
Africa. With a determination to avoid redundancies as far as possible, Government is pursuing a tight policy of keeping the number of new posts to the absolute minimum, while introducing a 
performance management system for all civil servants and achieving downsizing through 
retirement and natural causes. 
3.6.  In addition, Government will retain a cons tant awareness of the impo rtance of efficient and 
effective Government financial performance, tighten processes and further develop internal audit 
to eliminate wastage and pursue relentlessly the goal of driving out corruption.  WT/TPR/G/324 • Southern African Customs Union 
 
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  3.2  Attraction and retention of Foreign Dire ct Investment and support of Small, Medium 
and Micro-Scale Enterprises (SMMEs) 
3.7.  Foreign direct investment (FDI) of the right quality lays out rapidly a core of commercial and 
industrial development, spawning SMME growth to  meet its needs. Of considerable relevance in 
this regard will be the launching of the Buy Swazi campaign and the achievement of 
five big-to-small business supply linkages per annum.  
3.8.  One particular incentive – the provision of further factory shells to provide the rapid 
accommodation of investors – is already captured in an existing programme that will continue, and 
will include the transfer of the existing stock and the construction of new factory shells under the recently re-launched National Industrial Develo pment Corporation of Swaziland (NIDCS). Other 
methods of capacitating investors will be examined in a way that encourages new and existing 
investors to adopt a long-stay attitude to operating in the Kingdom. The approach to 
incentivization will be resourceful and not restri cted to fiscal measures. The ultimate package will 
make Swaziland stand out as the investment destination of choice to new and existing large-scale 
investors, as well as making more Swazis want to start, and be capacitated in, a life of sustainable 
commercial activity that feeds, clothes and educates their children. 
3.9.  The importance of large-scale foreign direct and domestic investment of the right quality 
cannot be over-emphasized, since it introduces off its own bat the immensely valuable package of 
capital, equipment, technical expertise and a ccess to the global market. But the country's 
long-term economic prosperity will depend more su bstantially on the growth of small, medium and 
micro-scale enterprises (SMMEs). And that means creating a nation of entrepreneurs. In all of 
these sectors that will drive future economic grow th in the Kingdom, the youth will be the subject 
of special focus and they are the future of our society and our economy. 
3.10.  The Economic Recovery Strategy (ERS) will co ntinue to play a catalytic and facilitation role 
in the mobilization of foreign direct investments, use of Public Private Partnerships (PPPs) and 
domestic investments emanating from the use of the 30% local asset requirement. The focus of 
substantial public and private investments will be in mining, infrastructure development, 
agriculture, tourism, industrial development, energy and information and communication 
technology. 
3.3  Industrial and Agricultural Developm ent as a catalyst for economic growth 
3.11.  The National Industrial Policy implementati on plan currently still being developed will be 
launched to stimulate industrial development, part  of which will include the continued development 
of industrial estates which, by 2018, will have delivered 310 hectares at Sidvokodvo Industrial 
Estate, and 42 hectares in the second phase of the Matsapha Industrial Estate. 
3.12.  An industrial policy is still being formulated which seeks to set strategic policy objectives to 
form the framework for targeted interventions and policy actions that will reverse many of the underlying negative trends and challenges currently  faced by the country. Such an initiative will 
further assist the country to focus on a path of sustainable economic and social development. 
3.13.  On Agricultural development, the country aims to achieve growth targets through a secure 
paradigm shift from current dryland, subsistence farming to irrigated, commercial agriculture. The 
a i m  o f  s u c h  a n  i n i t i a t i v e  i s  t o  h a v e  a  f u r t h e r  2 5  m e d i u m - s i z e d  d a m s  a s  w e l l  a s  e a c h  y e a r  
constructing 12 small earth dams as part of the plan to increase the area under irrigation by 
10,000 hectares by 2018 which should provide the platform for a further increase of 4,000 hectares by 2022. In addition to extending the irrigation network, a programme is underway 
to improve the efficiency of exis ting systems on average by 50%. 
3.14.  Government has been and will continue to assist farmers and communities in the 
diversification of their agricultural products. There will be a particular focus on assistance, 
especially training schemes for 2,000 farmers each year, to give rise to increased production in 
selected products such as fish, baby vegetables, indigenous chicken and cotton. Annual deliveries of vegetables and chicken to NAMBOARD – a reasonable measure of commercial vegetable 
production at SMME level – is projected to increase from E 12 million in 2013 to E 25 million in 
2018 to reflect the impact of the training and capacitation initiatives underway. WT/TPR/G/324 • Southern African Customs Union 
 
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 3.4  Tourism and job creation 
3.15.  Swaziland needs more tourism investment and more tourists in an industry that is known to 
be hugely labour-intensive. The recently produced Tourism Development Strategy will be converted to a time-bound action plan at the same time as identifying a Product Development 
Strategy, as well as a review of visa regula tions and processes, improvement of signage and 
promotion of tourism investment opportunities that embrace the potential offered by the new King Mswati III International Airport. A marketing programme that includes hosting 10 tour operator 
and travel media groups each year, and the annua l worldwide distribution of 60,000 copies of the 
Swaziland Official Tourist Guide will be carried out. A review of existing community tourism projects and a programme to enhance existing ones, and motivate the development of new ones, will be carried out. Representation companies have been appointed in South Africa and 
Mozambique that will provide quarterly reports on their promotional activities for Swaziland, and a 
Memorandum of Understanding has been signed with United Kingdom tour operators for a joint marketing programme. At direct investment level, through its parastatal, Swaziland National Trust 
Commission (SNTC), there will be a revamping of facilities at Malalotja Game Reserve, Mantenga 
Game Reserve and Mlawula Game Reserve to meet  international standards, and a programme to 
identify further commercialization opportunities in national inheritance sites. The target is to 
improve the tourism environment to secure a 5% per annum increase in the tourism 
accommodation spend in real terms, and to place Swaziland in the top 20 tourist destinations in Africa by 2022. 
4  IMPLEMENTATION OF MULTILATERAL AND REGIONAL AGREEMENTS AND 
OBLIGATIONS 
4.1.  Swaziland as a member of the SACU continue s to engage third Parties as a bloc in trade 
negotiations to preserve the integrity of the Common External Tariff (CET). The country has 
participated in the successful conclusion of vari ous trade agreements such as the SACU-European 
Free Trade Agreement (EFTA), SACU-Common Market of the South (MERCOSUR) and SACU-US Trade, Investment and Development Cooperation (TIDCA). SACU-India Preferential Trade 
Agreement is still work in progress. 
4.2.  The country is also currently involved in the negotiations of the TFTA comprising COMESA, 
EAC and SADC. Swaziland is going to be part of the Continental Free Trade Area negotiations which were launched in July 2015. On the other hand, Swaziland is a member of COMESA and 
continues to trade under a derogation, which has been linked to the conclusion of the TFTA. 
4.3.  Swaziland is a beneficiary of the GSP scheme, which provides for goods that originate from 
developing countries to be imported into industrialized countries at reduced customs duty. The 
countries that grant GSP include some of the EU member states, USA, Canada, Japan, Australia, 
Russia and New Zealand. A wide range of export products from Swaziland enjoys market access 
through the GSP scheme.  
4.4.  The SADC-EPA has been concluded and is in  the legal scrubbing phase to be followed by 
signature and thereafter ratification. 
4.5.  South Africa has been and is still predominantly the major trading partner for Swaziland for 
both imports and exports, which accounts for over 75% of its trade. Therefore, SACU continues to 
be a strategic market for the country. Engaging third parties as a bloc also ensures that the 
Common External Tariff (CET) of SACU remain intact. Efforts are underway to develop and operationalize an Industrial and Trade Policy/Strategy which will assist in the identification of areas 
of complementarities both at a national and regional level.  
4.6.  Technical assistance extended to Swaziland by the WTO and other Development Partners 
such as the African Development Bank has seen th e formulation and adoption of an Aid for Trade 
Strategy for the country. Another strategy successfully completed is the Private Sector 
Development Strategy (PSDS). The purpose of a private sector development strategy (PSDS) is to deepen and complement the essential role of the private sector in creating economic growth, jobs and income as well as contributing to development objectives in particular poverty reduction. This 
is done by enhancing the policy and institutional framework which leads to the creation of an 
enabling environment for business. It is envisage d that the PSDS will be implemented between WT/TPR/G/324 • Southern African Customs Union 
 
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  2010/11 and 2015/16 and thereby allowing another five years for improvement towards the vision 
2022. The implementation period will coincide with the three-year rolling National Development Plans and Annual National Budget. 
4.7.  As part of Aid for Trade, in 2014 the country  received support within the Regional Integration 
Implementation Mechanism (RISM) for upgrad ing the Customs System – ASYCUDA ++ to 
ASYCUDA World. Similarly in 2015, Swaziland received additional support to fund the implementation of COMESA regional commitments and to enhance SME competitiveness. Funding 
for both these programmes came through COMESA and was from the EU.  
4.8.  Under Trade Facilitation, the Trade Facilitation  Agreement is still in the process of ratification 
and committees have been successfully formed and awaiting Cabinet approval. Notification of the 
different categories in the Agreement is still being pursued through a decision by Cabinet. 
4.9.  The establishment of the National Body thro ugh the International Trade Administration Bill is 
still work in progress. The Bill has been finalized and is awaiting submission to Cabinet then Parliament for the final enactment to law. Capacity  building initiatives are still being explored to 
capacitate the investigators to be involved in the day-to-day operation of the body. 
5  CONCLUSION 5.1.  Going forward the successful implementation  of growth inductive programmes such as the 
Investor Road Map and the National Development Strategy should induce economic diversification 
and growth. Many projects in the pipeline ca n improve business confidence if implemented 
accordingly and timely. Coupled with that, the introduction of the Public Finance Management (PFM) bill should tackle public finance issues and create a fund to manage SACU receipts that will 
reduce the impact of the volatility that it has in the economy. 
 
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