Finance minister, Peggy Serame has reiterated government's multi-pronged strategies geared towards enabling the private sector to thrive and help power the landlocked country to a high income status in just over 10 years.
Botswana, a semi-arid country, although rich in diamonds, still has a small, and less vibrant private sector which depends overly on government spending for survival.
Speaking at the Botswana Stock Exchange’s Tshipidi Mentorship Programme (TMP) graduation ceremony, which was attended by President Mokgweetsi Masisi as the main speaker, the treasury minister disclosed they are hard at work to assist the private sector to become profitable and sustainable.
“Our government recognises that the private sector is the engine of economic growth and job creation. Therefore, we have adopted a multifaceted approach to support and empower businesses in Botswana. One of the key pillars of our strategy is the promotion of corporatisation,” she disclosed.
Corporatisation is the process of transforming informal and small-scale businesses into well-structured and formally registered entities. It involves the adoption of corporate governance standards, compliance with regulatory requirements, and the establishment of sound financial reporting practices.
“In line with our commitment to promoting corporatisation, the Ministry of Finance has implemented various initiatives to support businesses on this journey. These initiatives include streamlined registration processes, access to financial resources, and capacity-building programmes like the Tshipidi Mentorship Programme.
“We understand that the road to corporatisation may be challenging, but it is a path that leads to greater opportunities, enhanced access to capital, and increased investor confidence,” the minister, who was appointed to the hot seat in April 2021, said.
Government is mindful that a flourishing private sector will help with job creation and economic diversification which continue to elude the country, increased tax revenues-especially away from minerals and a higher standard of living for citizens. The mining rich country is still failing to post double digit growth which is a major factor that can ensure the attainment of a high income status in 2036.
“As we celebrate the success of this programme (TMP) and the achievements of its graduates, we must also look ahead to the broader implications of this initiative. The Tshipidi Mentorship Programme is not merely about individual companies; it is about the collective growth and prosperity of our private sector. The knowledge and skills acquired through this programme will reverberate throughout our economy, creating a ripple effect that benefits us all,” Serame said.
Meanwhile, President Masisi, who has been on a whirlwind tour in frantic search of investments, stressed that "as we move forward, it is imperative that we continue to foster an environment that is conducive to business growth and investment”.
He said that this includes maintaining a stable macroeconomic framework, enhancing our regulatory and legal infrastructure, and promoting innovation and entrepreneurship.
According to the BSE, Tshipidi Mentorship Programme is a strategic initiative established in 2019 to educate and sensitise the private sector on the listings value proposition and process. It was set up to address the lack of corporatisation from SMEs with aspirations of accessing equity or debt finance from the market.
Masisi stated that programmes such as TMP are expected to play a crucial role in shaping the future of the private sector.
Meanwhile, government’s plans to help support the private sector are contained in detail in the recently-released government’s 2024/5 budget strategy paper, which Serame is currently seeking input from stakeholders across the country.
“Government will continue to promote and explore value chain development opportunities in key strategic sectors covering tourism, minerals, manufacturing, energy, and agriculture. As the country intensifies regional and global economic integration, attention should be placed on the development of value chains,” the paper notes.
It adds that the strategic value chains sectors are expected to unlock various benefits and opportunities including but not limited to jobs creation, foreign direct investment, improving livelihoods, industrialisation, private sector competitiveness, skills transfer and most importantly broaden the export portfolio.
Special Economic Zones (SEZs) are also pivotal in attracting FDI, boosting domestic investment and promoting export-led value chains. “This is mainly due to SEZs model of an attractive taxation regime and other incentives such as tax exemption on property transfers”, the strategy paper says in part.
Botswana, a semi-arid country, although rich in diamonds, still has a small, and less vibrant private sector which depends overly on government spending for survival.
Speaking at the Botswana Stock Exchange’s Tshipidi Mentorship Programme (TMP) graduation ceremony, which was attended by President Mokgweetsi Masisi as the main speaker, the treasury minister disclosed they are hard at work to assist the private sector to become profitable and sustainable.
“Our government recognises that the private sector is the engine of economic growth and job creation. Therefore, we have adopted a multifaceted approach to support and empower businesses in Botswana. One of the key pillars of our strategy is the promotion of corporatisation,” she disclosed.
Corporatisation is the process of transforming informal and small-scale businesses into well-structured and formally registered entities. It involves the adoption of corporate governance standards, compliance with regulatory requirements, and the establishment of sound financial reporting practices.
“In line with our commitment to promoting corporatisation, the Ministry of Finance has implemented various initiatives to support businesses on this journey. These initiatives include streamlined registration processes, access to financial resources, and capacity-building programmes like the Tshipidi Mentorship Programme.
“We understand that the road to corporatisation may be challenging, but it is a path that leads to greater opportunities, enhanced access to capital, and increased investor confidence,” the minister, who was appointed to the hot seat in April 2021, said.
Government is mindful that a flourishing private sector will help with job creation and economic diversification which continue to elude the country, increased tax revenues-especially away from minerals and a higher standard of living for citizens. The mining rich country is still failing to post double digit growth which is a major factor that can ensure the attainment of a high income status in 2036.
“As we celebrate the success of this programme (TMP) and the achievements of its graduates, we must also look ahead to the broader implications of this initiative. The Tshipidi Mentorship Programme is not merely about individual companies; it is about the collective growth and prosperity of our private sector. The knowledge and skills acquired through this programme will reverberate throughout our economy, creating a ripple effect that benefits us all,” Serame said.
Meanwhile, President Masisi, who has been on a whirlwind tour in frantic search of investments, stressed that "as we move forward, it is imperative that we continue to foster an environment that is conducive to business growth and investment”.
He said that this includes maintaining a stable macroeconomic framework, enhancing our regulatory and legal infrastructure, and promoting innovation and entrepreneurship.
According to the BSE, Tshipidi Mentorship Programme is a strategic initiative established in 2019 to educate and sensitise the private sector on the listings value proposition and process. It was set up to address the lack of corporatisation from SMEs with aspirations of accessing equity or debt finance from the market.
Masisi stated that programmes such as TMP are expected to play a crucial role in shaping the future of the private sector.
Meanwhile, government’s plans to help support the private sector are contained in detail in the recently-released government’s 2024/5 budget strategy paper, which Serame is currently seeking input from stakeholders across the country.
“Government will continue to promote and explore value chain development opportunities in key strategic sectors covering tourism, minerals, manufacturing, energy, and agriculture. As the country intensifies regional and global economic integration, attention should be placed on the development of value chains,” the paper notes.
It adds that the strategic value chains sectors are expected to unlock various benefits and opportunities including but not limited to jobs creation, foreign direct investment, improving livelihoods, industrialisation, private sector competitiveness, skills transfer and most importantly broaden the export portfolio.
Special Economic Zones (SEZs) are also pivotal in attracting FDI, boosting domestic investment and promoting export-led value chains. “This is mainly due to SEZs model of an attractive taxation regime and other incentives such as tax exemption on property transfers”, the strategy paper says in part.
