Botswana: New P300 Livestock Export Permits Levy Imposed

• Botswana has revised its livestock export rules, limiting each farmer or buyer to a single export permit.
• The levy for live cattle exports has significantly increased from P30 to P300 per head.
• Meat exports are now restricted to citizen-owned companies, promoting local economic participation.
• These changes aim to ensure wider farmer benefit and improve cash flow, addressing past uneven distribution of opportunities.
• The new measures are implemented amidst ongoing government efforts to control a Foot and Mouth Disease outbreak that began in January.

The new framework, therefore, seeks to enhance market access for a broader base of farmers, simultaneously assisting them in reducing accumulated livestock numbers and improving their immediate cash flow.

Botswana has implemented substantial changes to its livestock export regulations, introducing new measures designed to broaden participation in international markets while addressing historical imbalances. Dr. Edwin Dikoloti, the Minister of Lands and Agriculture, announced these revisions at a media engagement in Gaborone on Monday. A key modification is the imposition of a strict limit, allowing each farmer or livestock buyer only a single export permit under the updated system. This move is part of a broader strategy to ensure more equitable access to export opportunities.

Furthermore, the government has dramatically increased the levy on live cattle exports. The fee per head has escalated tenfold, from P30 to P300. In contrast, the levy for domestic slaughter will remain at P30 per head, with a formal review only considered once the local market demonstrates sufficient stability. Another significant policy shift dictates that all meat exports under this new dispensation will be exclusively reserved for citizens and companies that are wholly citizen-owned, aiming to bolster local economic empowerment within the sector.

Minister Dikoloti articulated that these revised conditions are primarily intended to foster greater inclusivity and ensure a wider distribution of benefits from export activities among the nation's farmers. He highlighted that the previous live cattle export dispensation, initially launched in 2019, had been extended four times over a six-year period before its scheduled conclusion on April 30, 2025. During its operation, this program facilitated the export of over 551,570 cattle, predominantly to neighboring South Africa and Namibia, providing a crucial alternative market to the Botswana Meat Commission (BMC), particularly during periods of drought and operational delays in traditional slaughter facilities.

However, Dr. Dikoloti acknowledged that the advantages of the prior arrangement were not uniformly distributed, with a concentrated number of participants capturing a disproportionate share of the available opportunities. The new framework, therefore, seeks to enhance market access for a broader base of farmers, simultaneously assisting them in reducing accumulated livestock numbers and improving their immediate cash flow. This initiative is also expected to help farmers meet their financial obligations, compensate workers, and sustain their farming operations, especially following months of movement restrictions and market disruptions.

The introduction of these new export rules coincides with the government's ongoing efforts to contain Foot and Mouth Disease (FMD) and rebuild confidence in Botswana's vital livestock industry. An FMD outbreak, which commenced in January of the current year, has significantly disrupted trade and placed considerable strain on livelihoods, necessitating proactive interventions to safeguard the national herd and mitigate further economic losses. To combat the disease, the government has allocated approximately P97 million towards control measures, including extensive vaccination campaigns, enhanced surveillance, fencing, and strengthened biosecurity protocols.

Under the revised measures, live cattle exports will be permitted for a duration of six months, specifically limited to slaughter-ready steers. Exports of meat and meat products, however, will operate under a longer 12-month dispensation. Individual livestock slaughter is also permitted across all zones, contingent upon the prevailing disease situation and adherence to applicable veterinary requirements. Dr. Dikoloti emphasized that while restoring market access is a priority, it must be carefully balanced with stringent measures to prevent further FMD transmission. He urged farmers to maintain compliance with all veterinary requirements, underscoring that the export dispensation does not negate the necessity for robust disease-control practices, reflecting the government's steadfast commitment to protecting livestock, revitalizing markets, and ensuring the long-term sustainability of Botswana's beef industry.

Lawyers and compliance officers advising clients in Botswana's agricultural sector, particularly those involved in livestock or meat exports, must be aware of the new restrictions on export permits (one per farmer/buyer), the significantly increased live cattle export levy (P30 to P300), and the requirement for meat exporters to be citizen-owned. This necessitates reviewing existing export strategies and ensuring compliance with the revised conditions to avoid penalties and maintain market access.

Source: Original reporting via Botswana Daily News