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Botswana realizes over P3 Billion of FDI in 2018

Publishing Date : 10 September, 2019


Minister of Investment, Trade and Industry Bogolo Kenewendo says a total of P3.2 Billion worth of Foreign Direct Investment was realized in 2018/19 against a target of P2.3 Billion.

The positive FDI inflows were as a result of a number of companies investing a significant amount of money under the International Financial Service Centre IFSC and the mining sector. Meanwhile, a total of P3.4 Billion worth of Domestic and Expansions investment was achieved in the same period against a target of P2.8 Billion.

In contributing towards fulfilment of National Development Plan 11’s ultimate goal of addressing the country’s main development challenge of unemployment, the Ministry facilitated and funded creation of 7756 jobs from April 2018 to March 2019. A total of P370.7 Million worth of investment has been realized since implementation of the SPEDU Revitalization Strategy, culminating in creation of 1.5 jobs. For the year 2018/2019, Domestic and Expansions Investment stood at P176.6 Million and P43.9 Million was realized in Foreign Direct Investment creating 623 jobs. Over 3 hundred jobs have been realized from April to July 2019. The construction of the Plathan Bridge is 88% complete.

Kenewendo said BOSSC processed a total of 602 government authorization and achieved 97% approval rate in the previous year. In the quest to promote and facilitate the establishment of investment opportunities across Botswana, BITC opened a new regional office in Francistown in March 2019.

Meanwhile, the Ministry through the Local Enterprise Authority LEA has reviewed the Leather park business plan. Following approval of the revised business plan, the project manager is currently reviewing tender documents to accordingly align them and this was finalized last month. To this end, consultations with various stakeholders are being undertaken with a view to ensure adequate supply of leather once the park becomes operational. In this regard hides and skin collectors, exporters, artisan tanners and leather product manufacturers elected an interim national leather industry association to work with government on 31 Just 2019.

 LEA presented a business model for Letlhakane Municipal abattoir which will be used to produce quality hides and skins to key stakeholders. Development of the business plan is on-going. First meeting of intuitions of High Learning, Botswana Qualifications Authority BQA and Human Resource Development Council HRDC was held on 6th August 2019 to mobilise them for training and skill development for the leather industry.

Further, meeting with fodder production unit was held to mobilise fodder farmers to use treated waste water and boreholes with enough water to produce fodder to mitigate drought. A list of fodder producers is being compiled to ease contact. A breeding plan for small stock farmers has been developed to assist them in small stock rearing so as to address low off-take, birth and mortality rates.

Under the Export Development Apex, Kenewendo said the Ministry will facilitate export-led growth by promoting export of goods for which the country has a comparative and competitive advantage. She said through the Export Development Apex, new markets have been secure for Botswana exporters. ‘’as of June 2019, market access for a number of products to the East African Community has been secured.

Tariff negotiations were concluded under the auspices of the SADC-EAC-COMESA Tripartite Free Trade Area Agreement. Product lines to benefit immediately from the liberalized trade include beef, processed salt and plastic tubes. Under the current review of SACU- European Free Trade Association, Botswana stands benefit from increased market access for products- beef and lamb meat.

Further, under the African Continental Free Trade Area negotiations, Botswana will benefit from access to almost all African states market. New markets have also been acquired in Zimbabwe and South Africa, exporting lab equipment and organic fertilizer respectively. In addition, six textile companies have been selected to supply Cash Bazaar retail stores.

Furthermore, the Minister noted that the Revised National Export Strategy was launched in May 2019 and has identified priority sectors for export as follows; Arts and Craft, Garments and textile, jewellery and semiprecious stones, leather and leather product, meat and meat products, and light manufacturing and indigenous products sector,

She highlighted that seven companies were taken through QMS training, while seventeen were assisted to develop export marketing plans and diagnostic assessment were done on 14 companies. Kenewendo underlined that BITC with the support from UNDP have engaged the services of Imani Development consultancy to develop the Revised BEDP.

International Trade Centre has committed to assisting BITC with efforts to help set up an e-commerce marketplace to sell products manufactured by Ngwao Boswa Basket Weavers Association. Products are to be marketed and sold through either Amazon Handmade or Esty virtual platforms. She also said that Options currently being explored include opening a PayPal Business Account at FNB Botswana, as opposed to setting up a subsidiary company in the US.

Moreover, she noted that BITC in collaboration with Ministry of Youth Empowerment, Sport and Culture Development are working towards building a storage facility in Gumare to stockpile products for external market. To this end, fabrication of structure has been completed, and it is awaiting transportation to Gumare for handover.

The operationalization of Medium to Long-Term and Outward Insurance Initiative Products was approved in August 2018 in line with the National Economic Development Council NEDC approval. MLT encourages businesses operating in Botswana to export capital goods or participate in projects outside the country with medium to long term repayment terms, whilst OII encourages investors operating in Botswana to expand outside the boarders.



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