Debswana Deputy MD vows to support local firms
Debswana’s Deputy Managing Director, Koolatotse Koolatotse, recently made a bold pledge that could reshape Botswana’s economic landscape: a firm commitment to empowering local suppliers and citizen-owned businesses. His message was clear—Botswana’s future doesn’t lie in imported goods but in the hands of its own entrepreneurs and manufacturers. “Of course you will make mistakes. The first step is that we will forgive you. Then we will hold you up and continue to guide you,” Koolatotse said, embodying a leadership style that acknowledges the trials of business but promises unwavering support. His words resonate deeply within a country that has long depended heavily on imports and is eager to cultivate homegrown industry.
Debswana, a joint venture between the Botswana government and De Beers, has been a cornerstone of Botswana’s economy since the discovery of the Orapa diamond deposit in the 1960s. The company not only mines some of the world’s most valuable diamonds but also channels substantial resources into local economic development. Through initiatives like the Citizen Economic Empowerment Programme (CEEP), Debswana has invested billions of Pula in citizen-owned companies and supplier development, aiming to create thousands of jobs and foster sustainable growth beyond mining. The company has also partnered with local banks to offer financing to small and medium enterprises, easing one of the biggest hurdles for local entrepreneurs—access to capital.
Despite these efforts, Botswana remains heavily reliant on imports. Approximately 70% of the money spent on supplies goes to foreign countries, as Koolatotse pointed out, underscoring a persistent challenge. The import bill includes essentials like machinery, food, fuel, and consumer goods, much of it sourced from South Africa, China, and other countries. This dependency limits the country’s economic sovereignty and stifles the growth of local manufacturing and supply chains. Yet, the potential for local production is vast, ranging from food processing and textiles to pharmaceuticals and leather goods. Expanding these sectors could not only reduce imports but also stimulate job creation and technological innovation.
The manufacturing sector in Botswana, though growing, faces significant hurdles. The domestic market is small, and competition from more established regional hubs is fierce. Skilled labor shortages, limited project financing, and infrastructural challenges further constrain growth. But these obstacles are not insurmountable. With strategic support from major players like Debswana, coupled with government policies aimed at prioritizing local suppliers and manufacturers in public procurement, Botswana is laying the groundwork for a manufacturing renaissance. These efforts align with national ambitions to diversify the economy and reduce reliance on mineral exports.
Koolatotse’s leadership emphasizes a culture of learning and resilience. His encouragement for local entrepreneurs not to fear mistakes is a refreshing departure from traditional business narratives that often penalize failure. Instead, Debswana offers a scaffolded approach where mistakes are forgiven, and continuous guidance is provided. This supportive environment is crucial in a context where many local businesses are still developing their capacity to meet the rigorous demands of large-scale supply contracts. By nurturing these firms, Debswana hopes to build a robust local supply chain that can compete with international suppliers in quality and reliability.
The company’s Supplier Development Programme (SDP) has already made tangible impacts. Hundreds of local suppliers have received training, advisory services, and access to financing. This initiative has prioritized inclusive growth, ensuring that rural communities, women, and marginalized groups gain equal opportunities to participate in Botswana’s economic mainstream. Such inclusive policies are vital in addressing historical inequalities and spreading economic benefits more broadly. Debswana’s commitment to a diverse supplier base reflects a recognition that economic empowerment must reach all corners of society to be truly transformative.
Botswana’s government policies increasingly support these private sector efforts. The Public Procurement Act, revised in 2022, emphasizes local content and supplier development, requiring government and parastatal bodies to favor citizen-owned companies. This regulatory environment creates a more level playing field, encouraging local businesses to compete for government contracts and thus gain valuable experience and revenue streams. Additionally, partnerships between government entities, financial institutions, and companies like Debswana are designed to reduce red tape and improve access to markets for local entrepreneurs.
Yet, the road ahead is not without challenges. Local manufacturers must overcome issues such as inconsistent supply quality, limited economies of scale, and infrastructure deficits. Moreover, the cultural shift needed to prioritize local sourcing over cheaper imports will take time. Consumers and large companies alike must develop confidence in local products. Here, Debswana’s role is pivotal—not just as a buyer but as a champion of local industry standards and innovation. By setting high expectations and investing in supplier capacity, the company aims to elevate the entire local supply ecosystem.
The economic stakes are high. Botswana’s economy, though relatively stable, remains vulnerable due to its dependence on diamond revenues and imports. Diversifying into manufacturing and strengthening local supply chains could provide more resilient sources of growth and employment. Debswana’s push for local empowerment aligns with broader national strategies to create a more inclusive and sustainable economy by 2036. It also offers a model for other resource-rich countries seeking to translate extractive wealth into diversified development.
Koolatotse Koolatotse’s vision is not merely about increasing local content percentages but about fostering a mindset shift. It’s about transforming local businesses into agile, confident, and innovative players on the regional and global stage. His leadership style—patient, forgiving of mistakes, and committed to mentorship—embodies the kind of partnership Botswana needs to nurture its entrepreneurs. Through these efforts, Debswana is not just mining diamonds; it is mining the potential of Botswana’s people and businesses.
In the final analysis, the success of this ambitious agenda will depend on sustained commitment from both the private sector and government, as well as the ability of local businesses to seize opportunities and overcome obstacles. The journey from import dependency to local empowerment is complex and fraught with challenges, but with leaders like Koolatotse at the helm, Botswana’s path toward economic self-reliance looks promising. The diamond giant’s vow to empower local suppliers could well become a defining chapter in Botswana’s development story, one where citizens are not just beneficiaries but active architects of their economic future.
For Botswana, the stakes could not be higher. As Koolatotse reminds entrepreneurs: making mistakes is part of growth, but with the right support, those missteps become the stepping stones to a stronger, more self-sufficient economy. The time has come for Botswana to harness its own resources—not just its diamonds, but the ingenuity and resilience of its people—to build a future less dependent on imports and more rooted in local strength and pride.
