Future lies in identifying new export markets

I wish to express my gratitude for having been afforded the opportunity to officially open the 13th National Business Conference which is being held in Maun for the first time. I hope the local business community will find this event beneficial. Let me also extend a warm welcome to you all and in particular, to our Guest Speaker, the Chief Executive Officer of Anglo American, Mr Mark Cutifani.

Ladies and gentlemen, the theme for this year’s conference is “Opening Botswana to the world, attracting Foreign Direct Investment (FDI) and ensuring that Botswana firms can compete in the global economy”. This is indeed a fitting theme given our level of economic development of an upper-middle income status. It is, therefore, imperative and opportune for us to ensure that we drive the economy to higher levels by providing a conducive environment for industries to thrive and thereby catalyse economic growth.

Our future drivers of economic growth will now be based on identifying new export markets, as well as widening our range of export products in line with our new Industrial Development Policy, which focuses on import substitution and export-led growth. Thus, in our efforts to accelerate economic diversification, we need to pay special attention to the alignment of the Industrial Policy with the attraction of FDI.

FDI plays an important role in our economic development strategy because of the multiplier effect it has on job creation, and transfer of intellectual capital and technology. In addition, it contributes to other important objectives such as economic diversification and industrialisation. As Government, we intend to leave no stone unturned to ensure that Botswana becomes one of the top destinations in Africa for global investors. It is thus encouraging to note that Botswana was ranked the best investment destinations in the world this year by the U.S. Foreign Policy Magazine that evaluated 112 countries based on the Baseline Profitability Index (BPI). A feat worth acknowledging.

We will continue to redouble our efforts to attract FDI in the manufacturing sector because of its potential to create permanent skilled jobs. The sector could also prove crucial in developing the next generation of competitive Batswana workers with industry relevant skills. This, in my view, will go a long way in bridging the relevant skills industry gap that we are always alluding to.

I recognise of course that a significant portion of FDI has, by and large, flowed into the mining and financial services sectors. While this is a welcome development, it also calls for prudence in ensuring that FDI flows are diversified to guarantee that other key economic sectors such as hospitality, tourism, construction, ICT and manufacturing also benefit. If we do so, we will be ensuring that local firms in these sectors also grow and become globally competitive, in line with the theme of this Conference. I would like to also bring it to your attention that the recently concluded European Union (EU)/Southern African Development Community (SADC) Economic Partnership Agreement (EPA) offers a guaranteed market for our exports.

In addition, the extension of the African Growth Opportunities Act (AGOA) by 15 years also offers us quota and duty free access to the US market.
The recent relocation of diamond aggregation and sales to Gaborone, as well as the development of the diamond cutting and polishing industry bear testimony of our quest to diversify our industrial base. I do recognise that the global competiveness of our diamond industry value-chain can still benefit greatly from an improvement in productivity. In this regard, I wish to congratulate the Botswana Chamber of Mines for their initiative, “Business Development Project”, which will support and nurture participation of local manufacturers and service providers through consolidated purchasing of inputs for the mining sector. This initiative, which was launched in October, 2014, will further promote FDI through attraction of foreign firms that manufacture mining equipment that is not available locally.

However, we should not be complacent and start believing that our new status as a diamond centre is an end in itself. Our goal should be to become a global diamond centre that is second to none. In the same vein, the tourism sector has also given us confidence as it has enabled us to demonstrate our ability to deliver highly attractive and diverse range of products in this sector.

Unemployment is a source of deep concern not only for Botswana, but for most if not all countries across the world. It is, therefore, evident that unless we can create the necessary number of jobs, the unemployed, including the youth, will remain reliant on Government.  As Government, our aim is to create the requisite jobs that will not only enhance the welfare of Batswana but, will also be consistent with the level of economic growth. The key, therefore, is in the development of globally competitive export-oriented industries as well as grow significantly the SMMEs. 

At the same time, we also need to, as a nation, to focus on the issue of “work ethics” in order to improve productivity. According to the Global Competiveness Report 2015, “work ethics” continues to be one of the areas which requires our urgent attention.While the road ahead will not be easy, it is not by any stretch of the imagination, insurmountable. It requires boldness, assertiveness, hard work, a supportive regulatory environment and a pro-business approach by both the public and private sectors.

It is also imperative that as Government continues to work on improving the ease of doing business, the private sector should also intensify its participation in the development agenda of this country, as this will also support its growth. It is imperative for Botswana businesses to have a broad outlook that also has elements of international orientation.   In conclusion, I note that the Conference programme is quite diverse and covers all issues on the competitiveness of our firms. It is my hope that the debates that will take place in the Conference, will assist in informing us on transformational reforms. It is also encouraging to note that you have a whole session dedicated to the issue of corruption.

It is my hope that the outcome of this session would enhance or broaden the already existing mechanism for private sector involvement in curbing this scourge, with the Directorate on Corruption and Economic Crime (DCEC).Let me also take this opportunity to express my gratitude to the guest speaker Mr. Mark Cutifani for agreeing to come and share his rich business experience with us. This, surely also demonstrates the passion that the Anglo American Group has for Botswana and their desire to see us succeed.I would like to take this opportunity to wish you fruitful deliberations. It is now my pleasure to declare the 13th National Business Conference officially open.