Mozambican President Daniel Chapo has called for renewed dynamism in economic cooperation with Botswana, arguing that current trade levels between the two countries are far below their potential given their proximity and complementary economies.
Speaking at the Mozambique-Botswana Business Forum in Gaborone on Monday, Chapo presented stark figures showing that between 2021 and 2025, Mozambique exported goods valued at approximately $79 million to Botswana while importing goods worth around $13 million from its neighbour.
In 2025, Botswana accounted for only 0.1 percent of Mozambique’s total exports, a figure Chapo described as “far below the economic potential of both nations”.
“These figures fall far short of the potential of our economies and the quality of our political-diplomatic relations,” Chapo said. “Our political-diplomatic relations are excellent. Now we need to strengthen economic and trade relations”.
FOUR PRIORITY SECTORS FOR COOPERATION
Chapo proposed four platforms for transforming the relationship from one that is predominantly political and diplomatic into an economic partnership grounded in trade, investment, production, industrialization, and job creation .
Logistics and Transport – Chapo highlighted the ports of Maputo, Beira, and Nacala, along with development corridors, as infrastructure that can boost regional trade. He called for joint investments in the Limpopo Corridor, railways, roads, energy, and fuel storage. “Transport and logistics is an area we must focus on,” he said.
Agriculture, Livestock, and Agro-Processing – The President proposed joint ventures between Mozambican and Botswana entrepreneurs, combining Mozambique’s agricultural potential and water resources with Botswana’s livestock expertise. “We want to produce, process, transport, and market together within SADC and globally,” Chapo said.
Tourism – Chapo proposed integrated circuits linking Botswana’s conservation destinations with Mozambique’s coastal and biodiversity attractions, highlighting Inhambane, Vilankulo, Pomene, Inhassoro, and the islands as areas with potential for new investment.
Industrialization – The President called for reducing dependence on raw material exports and focusing on value addition, pointing to opportunities in fertilizers, energy generation and transmission, and other industrial initiatives linked to Mozambique’s energy potential.
BI-NATIONAL COMMISSION SIGNED
The Business Forum preceded the signing of an agreement establishing a Bi-National Commission between Botswana and Mozambique, elevating their 51-year bilateral relationship to a high-level joint mechanism for managing all cooperation issues.
Botswana President Duma Boko said the two nations were looking to forge strategic ties to enhance trade relations. He highlighted opportunities in agriculture, energy, infrastructure, manufacturing, mining, tourism, transport, and logistics, saying the forum should “unlock opportunities and build private-sector-led economies that are resilient, inclusive, and globally competitive”.
The two countries signed Memoranda of Understanding in health, transfer of sentenced prisoners, correctional services, double taxation avoidance, tourism, science and technology, and arts and culture .
TECHOBANINE PORT AND ENERGY COOPERATION
Chapo also highlighted the Techobanine deep-water port project, a joint venture between Mozambique, Botswana, and Zimbabwe valued at approximately $6.5 billion with a railway line of about 1,700 kilometres—as a priority for enhancing Botswana’s access to Mozambican logistics corridors .
In the energy sector, Botswana is eyeing further cooperation as Mozambique upscales its hydropower projects. Boko also noted that Mozambique is accelerating the expansion of Matola Port, an essential oil storage hub for fuel arriving by sea, which would be core to regional oil importation.
GAS REVENUES TO DRIVE DIVERSIFICATION
Speaking to the Mozambican diaspora later in the visit, Chapo said gas projects in development or preparation could represent investments of $50 billion to $60 billion over the next five to ten years. He said the government strategy is to use gas revenues, including taxes and royalties, to drive other sectors including agriculture, tourism, infrastructure, logistics, industrialization, trade, and digitalization .
The two countries are also working on creating air links between Botswana and Mozambican tourist destinations including Vilankulo, Inhambane, and Maputo, with the aim of developing integrated tourism packages .