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Botswana and China in the agricultural sector. Photo credit - AI Generated

FROM AID TO TRADE: HOW CHINA’S AGRICULTURAL INVESTMENT AND ENGAGEMENT IS SHAPING BOTSWANA’S VALUE CHAIN

Introduction

China’s role in Botswana’s agricultural sector has shifted noticeably over the past two decades. Originally, China provided development aid and small demonstration projects, but this has grown into deeper commercial partnerships that link Botswana’s producers to larger markets. In June 2025, China signed a P1 billion agreement with Botswana’s beef sector, encouraging Botswana to move away from the EU as its main trading partner and stabilising the agricultural economy. But is this sort of massive investment always positive for Botswana and its people? 

 

From Aid to Investment

A major change is the move from short-term support toward investments that strengthen processing and trade. Recent joint ventures in feedlot development, crop trials, and livestock infrastructure show this shift clearly. Instead of focusing only on training or equipment donations, Chinese firms are partnering with local institutions to create projects that support long-term value creation. Botswana has also created new Special Economic Zones (SEZs) aimed at encouraging international investment, particularly from China. For Botswana, this brings new opportunities but also new responsibilities. 

 

Advantages

Through this massive Chinese-led investment in its agricultural sector, Botswana gains access to improved technology, research partnerships, and markets that can support value-chain upgrading. These links help producers move from raw commodity sales to processed goods with higher returns. Collaboration with universities also introduces crop varieties and farming methods suited to local conditions. These sorts of investments that China is offering cannot be turned down completely. 

 

Disadvantages

At the same time, such comprehensive commercial engagement with China raises questions about sustainability, environmental pressure, and how much value remains in local communities. China’s recent beef deal was notably aimed at feedlot beef, and much of the investment was intended to improve feedlot infrastructure. Feedlot beef is of higher quality, and one feedlot cow produces more beef than an equivalent free-range cow, for which Botswana is known, therefore increasing profits for Botswanaan farmers. But feedlot practices have significant environmental and animal welfare drawbacks, and such foreign investment risks damaging the long history of Botswana’s beef, especially its tradition of free-range cattle. 

 

Investment – but not Control

Botswana maintains financial independence from China, unlike many Southern African countries tied to the Belt and Road Initiative. While Chinese investment in agriculture is welcomed, transparent contracts, clear policies, and strong local participation are essential to ensure infrastructure and investment benefits support Botswana’s growth as a regional economic power.

 

Conclusion

China’s involvement in the Botswanan economy has moved beyond just supplying aid, as it did twenty years ago. China now plays a vital role in shaping how Botswana’s value chain grows, competes, and connects to global markets, and while that is necessary for Botswana’s economy, it is important to ensure that Botswana’s economic fortunes are not tied to China’s in the future.

 

By Benjamin Waterer, Oxford University and Becky Bontshitswe, Botswana 

 

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Becky Bontshitswe

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