Transcript ECONOMIC DIVERSIFICATION DRIVE(EDD) OVERVIEW AT …

REPUBLIC OF BOTSWANA
By: Peggy O. Serame
Ministry of Trade and Industry
At National Business Conference, 15th October 2012
MINISTRY OF TRADE AND INDUSTRY
BOTSWANA
Outline
 Background - What is EDD?
 Expected Deliverables
 How - The Approach


Short term
Medium to Long Term
 Implementation Challenges
 Interventions
 Institutional Set-Up
 What is Different?
 Conclusion
Background -What is EDD?
 Economic Diversification Drive (EDD) was
approved in April 2010.
 A national strategy aimed at accelerating
diversification of the economy.
 Efforts are consolidated and integrated,
coordination done by the Ministry of Trade
and Industry.
 Covers the period 2010-2016.
 Two (2) components: Short–Term and
Medium to Long Term (MTLT).
Expected Deliverables
 More pillars of economic growth;
 Diversified sources of fiscal revenues, export
earnings;
 Industrialisation;
 Entrepreneurship development;
 Employment Creation.
How - The Approach
 In the short term
 Use of Government purchasing power to
“jump-start”
local
enterprises through
preference schemes.
 “Local” refers to all enterprises operating within
Botswana.
 Local Manufacturers and Services Providers
issued with EDD Certificates.
How - The Approach cont’d
 The EDD Certificate
 Operation in Botswana verified
 Capacity, quality assessment made
 Referral to Business Development Institutions for
capacity building
 Facilitation of Linkages
 Does NOT guarantee award of tenders
 National Suppliers Directory to be updated annually.
EDD Enterprises by Product Classification
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How - The Approach cont’d
 Government Procurement – Recorded Purchases
for 2010/2011 through to 2012/2013
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How - The Approach cont’d
 Import Bill Analysis (2011)
Product
Value of Imports
(2011) in Billion Pula
Value of Government
Purchases (2010/2011) in
Billion Pula
Gap (Potential
Opportunity)
in Billion Pula
Building Material
2.03
0.02
2.01
Electrical Products
2.02
0.02
2.00
Chemicals and
Chemical Products
1.29
0.17
1.12
Food
1.07
0.04
1.03
Furniture
0.65
0.03
0.62
Motor vehicles
parts & accessories
0.44
0.04
0.40
Paper & Paper
Products
0.31
0.02
0.29
Textiles & Clothing
0.08
0.01
0.07
Total
7.89
0.35
7.54
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How - The Approach cont’d
 In the Medium to Long Term
 Develop a vibrant and globally competitive private
sector;
 Achieve technology and skills driven knowledge
economy through seven (7) areas of intervention of:
 Sectoral Development & Business Linkages;
 Export Development and Promotion;
 Investment & Finance;
 Quality Control, Standards & Production;
 Technology Development, Innovation & Transfer;
 Research & Development;
 Entrepreneurship Development.
How - The Approach cont’d
 Medium to Long Term Strategy: July 2011 - 2016.
 Stage I: Development of a Priority List of the EDD Sectors/Subsectors. List has been approved by National Economic Diversification
Council (NEDC).
 The list includes:
 Primary Production
 Agro-processing (dairy, horticulture, meat, etc)
 Leather & Leather Products
 Renewable Energy
 Textiles & Clothing
 Recycled Material Products –Paper, Plastic & others
 Arts & Crafts
 Services/Support Sectors
 Banking, Finance & Insurance
 Coal, Diamond & Other Minerals Beneficiation
 Construction/Building Materials
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How - The Approach cont’d
 Stage II: Development of Sector/sub-sector Specific
Strategies.
 Strategy for the Leather Industry has been approved by
NEDC. Funding be sourced.
 Strategies for the Dairy and Textiles and Clothing sectors are
being refined for consideration by NEDC in December 2012.
 Stage III: Development of Sector/Sub-sectors
 Value Chains Development
 Formation of clusters for business linkages & sector
associations
 Implementation of sector specific interventions.
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How - The Approach cont’d
Other Components - MTLT Strategy
 Enterprise Competitiveness: Work to develop an Enterprise
Competitiveness Framework has commenced.
 The framework will address issues of:
 Business Management;
 Quality;
 Productivity;
 Skills development;
 Technology uptake and adaptation;
 Packaging and labelling;
 Testing and certification;
 Patenting and Intellectual Property .
 This will facilitate capacity building to achieve
competitiveness.
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How - The Approach cont’d
Other Components - MTLT Strategy
 Outward Investment: Through this tool, established and
competitive enterprises will be facilitated to participate in
external markets.
 Support provided in the form of guarantees to financiers,
who in turn fund the enterprises to invest outside the
country.
 Enterprises may provide employment and/or repatriate
some profits back into the country.
 NEDC has directed this should be accelerated as an
additional economic growth and diversification tool.
 BDC to take the lead in Outward Investment.
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Implementation Challenges
 Product quality;
 Uncompetitive prices;
 Undeveloped/fragmented supply chains;
 Irregular and unreliable suppliers;
 Coordination of stakeholders;
 Limited range of locally manufactured goods
services;
 Inadequate industry relevant skills;
 Doing business environment.
and
Interventions
 Enterprise Competitiveness Framework;
 Monitoring and evaluation
 Purchases
 Import Bill Analysis
 Monitoring of Enterprises with EDD certificates
 Investment Promotion Activities
 Reporting to Special Cabinet every two (2) months
 Performance monitoring solution for key performance
indicators being developed;
 EDD Communication Strategy;
 Doing business and competitiveness initiatives – National
Doing Business Committee, Cabinet Sub-Committee.
Cabinet
Figure 1: EDD Institutional Set-Up
National Economic Diversification
Council
Economic Diversification Drive
(Botswana Excellence Strategy)
MTI EDD ‘’Big Bang’
Policies and
strategies
Ministries and Parastatals
‘EDD’’ Big Bang’’ Policies and
Strategies
Private Sector Development
Strategy
Economic Diversification Thematic Areas
Sectoral
Development
& Linkages
Export
Development
& Promotion
Investment
& Finance
Industrialised
Economy
Diversified
Exports
Entrepreneurship
Development
Enhanced Citizen
Economic
Empowerment
Technology
Development,
Transfers &
Innovation
Increased
Employment
Quality
Control,
,Standards &
Production
Improved
Quality of
Life
VISION 2016: PROSPERITY FOR ALL
Research &
development
What is Different?
 Emphasises integrated approach, with implementation
from national perspective.
 Private Sector & other stakeholders play a significant role.
 Sector development - definition of critical success factors,
value chain mapping, cluster development for business
linkages, sector-specific strategies;
 Strategic alliances & partnerships.
 Put a premium on Innovation and Creativity.
Conclusion
 EDD
- building enterprise capacity,
enhancing competitiveness, product &
market
diversification,
exploiting
opportunities.
 Unlocking implementation challenges;
 Private Sector-led growth;
 EDD - changing the industrial landscape,
transforming the Botswana economy.