Transcript ECONOMIC DIVERSIFICATION mr b g mphetlhe deputy permanent

Mrs T. Gaboiphiwe
PRINCIPAL INDUSTRIAL OFFICER
DEPARTMENT OF INDUSTRIAL AFFAIRS
BACKGROUND
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In April 1997 the Local Procurement
Programme (LPP) was introducedPresidential Directive CAB 38/96 Rev 1 of
November 27
Replaced by Directive CAB 24/2001reserved 30% of tender requirements by
Centrat Government, Local Authorities and
parastatal Organisations exclusively for local
manufacturing enterprises and service
providers to compete among themselves. 70
% being an open to international competition.
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In 2004 Presidential Directive CAB 25 (b) on
the Use of Locally Manufactured Goods and
Services (ULMGS).
Economic Diversification Drive per
Presidential Directive 11 (A) of 2010.
is premised on the fact that the country has a
huge import bill. ( P20 billion on average for
the past 5 years.)
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The EDD has two components, the short term
and the medium to long term strategy.
 The
following administrative processes have
been put in place to facilitate implementation
of EDD in the short term:
a) Enterprises should register with Ministry
of Trade and Industry for certification
under EDD (forms can be collected from
the Department of Industrial Affairs);
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b) A suppliers directory is being compiled
from BOCCIM website (www.boccim.co.bw)
as commissioned by the EDD Technical
Committee which is chaired by Hon.
Minister of Trade and Industry.
c) Publicity of the EDD programme is ongoing (through forums such as this, TV
and Radio are in the process of re-airing
the registration campaign).
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Promotion of procurement through turnover
threshold and preference margins:
Turn over threshold
Up to P5 million
P5m to P19 999 999
P20m and above
Margins
15%
10%
5%
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LEA, BNPC, BOBS, NFTRC, BOTEC are working
on modalities of how to improve local
enterprise capacities to meet the required
production and quality levels.
An enterprise audit will be undertaken to
guide the intervention required for capacity
building.
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All Manufacturers and Service providers are
eligible to register under EDD provided that they
are:
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Operating in Botswana
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Registered with the Registrar of Companies in
Botswana
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Posses a valid relevant license or registration
certificate from a competent authority.
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Two copies of the application forms completed.
A copy of certificate of registration or
incorporation issued by the Registrar of
companies.
A copy of tax and / or VAT Registration.
Most recent annual financial statements.
New enterprises are allowed to submit projected
financial statements provided.
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The Suppliers’ Directory will be used by the
procuring institutions as a source of information
on the availability of locally produced goods and
services.
Procuring institutions should, in their Invitation
to Tender request for the EDD certification.
Enterprises should always attach copies of valid
EDD certificate which forms part of the tender
evaluation process.
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Enterprises that have the turnover thresholds
of up to P5 million are required to use quality
standards and quality manual.
Enterprises above P5m turnover require
quality product certificate.
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Government, Parastatals and Private sector
continue to buy imported goods and services
despite the programme that we have in place.
Consumers are reluctant to buy locally made
goods and services. There is a perception
that locally produced goods and services are
of poor quality, expensive and supply is
irregular or unreliable.
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Limited range of locally manufactured goods
and services.
Some companies which have been awarded
tenders to manufacture products locally but
instead import them, except where
exemptions have been duly sought and
granted will be blacklisted.
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Procuring Entities continue to use brand
names despite the call in the EDD guidelines
not to do so. (except where exemptions have
been duly sought and granted).
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The second component of the EDD, is the
medium to long term strategy which will
focus on building productive capacity and
competitiveness. (quality, cost, delivery and
processes).
The draft strategy has been developed and
was discussed at EDD Pitso held on 1st and
2nd November2010
The draft final of the medium to long term
strategy will be considered by stakeholders
once ready.
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Upon accomplishment of the objectives of the
EDD intention is to “wean-off” the private
sector from government support so that they
can be compete openly in both the domestic
market and globally.
We therefore request for your collaboration
and partnership to make EDD initiative a
success.
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I THANK YOU FOR LISTENING
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