banner_9.jpg
banner_274.jpg
Home » News » Business » P10 billion in FDI, 9000 jobs created in 5 years

P10 billion in FDI, 9000 jobs created in 5 years

Publishing Date : 13 November, 2017

Author : REARABILWE RAMAPHANE

Botswana Investment & Trade Centre (BITC), the country’s business and investment facilitation and promotion agency has amassed a total of 10 billion pula worth of foreign & domestic capital investment since its inception in 2012. This was highlighted by President Lt Gen Dr Seretse Khama Ian Khama in his State of The Nation Address (SONA) on Monday.


Khamas said these transactions have resulted in the creation of 8,831 additional jobs. “The total business expansion investment level stood at P618.6 million in 2016-17 compared to P377 million reported in 2015/16.”  BITC was launched in 2012 as an organization established by an act of Parliament, to become an integrated Investment and Trade Promotion Authority (ITPA) with an encompassing mandate of investment promotion and attraction, export promotion, and development, including management of the Nation’s Brand.


BITC further encourages domestic investment and expansion, promotes locally manufactured goods to regional and international markets, contributes towards improvement of the investment climate through policy advocacy, increases citizen participation in the economy and creates sustainable job opportunities.



Khama also said government investment arm Botswana Development Corporation (BDC) has, despite two periods of recession, also experienced growth, with its total investment assets increasing from P1.2 billion to P2 billion over the past decade. This growth has supported over 5,000 jobs across various sectors of the economy. “Through its transformational programme the BDC has re-positioned itself for further growth, with over a thousand new jobs having been created since 2015 from new investments,” he said.


Meanwhile Leader of Opposition (LOO) Duma Boko says the figures are questionable, Boko quashed Khama’s speech saying it does not reflect the reality on the ground. “I don’t believe there is return of investment from these government agencies as our graduates still do not have jobs, which jobs, where?” he asked rhetorically.  


According to Boko during Khama’s tenure, formal employment grew at a slouchy 1.5 per cent per annum, with the highest annual job growth rates registered by public enterprises (4.6%) and Ipelegeng (3.4%). “From 2011 to 2015, enrolment in Ipelegeng rose by 28 percent! Public enterprises and Ipelegeng cannot be the primary sources of job growth for a country with ambition for its young people.”


“In the private sector, which accounts for 56 per cent of formal employment, the rate of job growth averaged 1.2 per cent per annum between 2011 and 2015. Yet, over this period, the labour force grew at an annual rate of 3.5%. Juxtapose labour force growth and the rate of job growth and you arrive at the terrifying conclusion that we have an annual job growth deficit of two percentage points! The message behind these figures is unambiguous. There are no jobs for the unemployed and the youth who leave colleges with diplomas and degrees hoping for a job. Workers cannot expect wage growth! Our collective wellbeing is eroding,” Boko said in his response to the SONA on Wednesday.


Advocate Boko urged the government to challenge the country’s economists in government, academia and the private sector to develop an alternative model for this economy, re-examine economic policies and strategies, and inject a measure of creativity into policy design.
“The current dispensation, in which we muddle along seeking to spend our way to success, and we throw money at problems, is not working and is not sustainable, because the days of rich mineral revenue yields belong to our past. Yet, this is exactly what successive BDP governments have been doing, all the while mouthing platitudes about economic diversification and transformation,” he said.


President Khama had also reported in his last SONA that the country’s balance of trade had positive trend for the past 12 months. He said according to Statistics Botswana, total imports for 2016 were valued at P66.9 billion, against P73.2 billion recorded in 2015, representing a decline of 8.6%. “Total exports for the same period were valued at P80.3 billion, an increase of 26.5%, compared to P63.5 billion recorded in 2015. As a result, our trade balance was in surplus of P13.5 billion in 2016, resulting in a balance of payments surplus of P2.8 billion, in contrast to the deficit of P0.57 billion that was recorded for 2015.”


Further, the president said that as of the end of August 2017, the country’s foreign exchange reserves were valued at P 76.6 billion, which is equivalent to 17 months of import cover. Of the total reserves, the Government Investment Account amounted to P32.1 billion. “Our exchange rate policy continues to support competitiveness of local industries in both domestic and international markets by maintaining the stability of the Pula against a basket of leading currencies,” he said.


BITC organizes the Global Expo which according to the president has generated over 500 million business transaction since inception 12 years ago. The centre recently launched an investment one stop shop which will shorten and simplify administrative procedures and guidelines for issuance of business approvals, permits and licenses, thereby removing bottlenecks faced by investors in establishing and running businesses in Botswana.


Officers from the Ministry of Nationality, Immigration and Gender Affairs, Minister of Employment, Labour Productivity and Skills Development and Ministry of Land Management, Water and Sanitation have been seconded to the centre offices whereas all other service providers will continue to facilitate investment from their respective offices. Amongst the services offered by the one stop shop are Company and Business Registration, Trade and Business license Applications, Entry visas, work and residence permits, Work Permit Exemptions  among others.

Cartoon

Polls

Do you think the closure of BCL will compel SPEDU to double their efforts in creating job opportunities in the Selibe Phikwe?

banner_14.jpg
banner_12.jpg

POPULER BRANDS