FNBB boss decries lack of implementation
First National Bank Botswana (FNBB) CEO, Steven Bogatsu has called for the removal of various impediments that affect the continent’s ability to strive in business, including in many other sectors such as manufacturing. The FNBB top man was speaking in a panel discussions at the United States-Africa Business summit under the theme, “Enhancing the Africa’s manufacturing value chain,” on Wednesday in Tlokweng.
In Botswana, manufacturing, like some other sectors of the economy, is struggling to grow, partly because of market access, barriers as well as regulations which, among others, impede even those who want to export their produce. Bogatsu explained that for sectors such as the manufacturing, to thrive, there is need to ensure that trade agreements for summits such as US-Africa summit, are implemented.
He told the gathering that, if agreements such as the African Continental Free Trade Area (ACfTA) are implemented, there will be no need for African businesses to cry for the likes of the famed US Africa Growth Opportunity Act(AGOA), which has since been extended to 2025.
He explained that, population-wise, Africa has a much bigger market than the United States, and if all the barriers were addressed, there will be no need to cry foul. “When we start talking about AGOA too many times. It is my view that we are actually externalising our control- we are externalising our ability to control our own situation.
The US market, has about 330 million people, southern African alone has 379 million people, and Africa has 1, 4 billion people. That’s five times the size of AGOA market,” said Bogatsu, adding that there is need to ensure implementation of signed agreements. The AfCFTA is expected to progressively eliminate tariffs on intra-Africa trade, making it easier for African businesses to trade within the continent and benefit from the growing African market. “By removing barriers and regulations within the continent, we unlock access to a much bigger market. When the business case stacks up, investors will flock, financing won't be an issue, and FDI will pour in.
The key to our success lies in implementing the agreements we sign at this Summit. America can support us by enacting anti-dumping legislation and protecting goods produced in Africa. They can also contribute by providing skills and encouraging foreign direct investment (FDI) in Africa.
However, we must recognize that we don't need assistance; what we truly need is to take charge and accomplish these goals ourselves. We should not be celebrating putting on events of this nature but rather celebrate implementing resolutions from these event,” said Bogatsu. Meanwhile, speaking of value chains development in Africa, the FNBB Chief Executive Officer explained that the bank he leads has, in the not so distant past, started participating in areas such as jewellery, diamond cutting and polishing in Botswana.
“There are more opportunities that have been identified downstream, again in the mining environment,” he explained, citing the production of equipment and/or machines that are being used around the country. He said investing in these sub-sectors come with incentives such as grants, availability of land and reduced taxes.
Bogatsu explained that there are opportunities in the country’s pharmaceutical industry, with advantages such as stable power supply, stable economy and less ‘militant work force’. “I encourage investors to go to these sectors,” he stressed. Bogatsu, himself a Certified Chartered Accountant, earlier this week disclosed that he eagerly anticipates the US-Africa summit and foresees significant advancements in value chain development, particularly in agriculture, green growth in the mining and manufacturing sectors.
'The summit's agenda and speakers indicate a strong emphasis on these areas, aligning with the global pursuit of a just climate transition and the net-zero agenda. We expect these topics to dominate the discussions and contribute to sustainable economic progress,” said Bogatsu, who heads the biggest bank in the country.