Transcript Document

REPUBLIC OF BOTSWANA
ECONOMIC DIVERSIFICATION POLICIES AND STRATEGIES:
What Is Different From What We Have Always Done?
Joel Sentsho, PhD
Trade Policy Advisor
Ministry Of Trade And Industry
27th August 2014
MINISTRY OF TRADE AND INDUSTRY
BOTSWANA
PRESENTATION OUTLINE
1.
INTRODUCTION
2.
WHAT IS DIFFERENT FROM WHAT WE HAVE ALWAYS
DONE?
2.1 Market Approach visa-a-vis Pragmatic Approach
2.2 Economic Policy and Implementation Matrix
2.3 Development of Priority List of Sectors/Sub-Sectors
2.4 Development of Sector Specific Strategies
2.5 Institutional Setup
3. ACHIEVEMENTS SO FAR
4.
CONCLUSION: to?
Where are our Policies and Strategies pointing
This will be based on Economic Policies, Strategies
and Sector-Specific Strategies
ECONOMIC POLICIES:


Industrial Development Policy for Botswana (July
2014)
Special Economic Zones Policy for Botswana
(February, 2011)

Trade Policy for Botswana (2009)

Citizen Economic Empowerment Policy (CEEP)
ECONOMIC STRATEGIES:



SPEDU Strategy for Selebi-Phikwe Regional
Economic Diversification (2013)
Botswana’s Cooperative Transformation Strategy
(September 2012)
Economic Diversification Drive (EDD) Strategy for
Botswana (2010)

Botswana National Export Strategy (2010)

Investment Strategy for Botswana (2010)
SECTOR SPECIFIC STRATEGIES
 The Strategy for Development of the Dairy
Sector in Botswana (2013)


Botswana Textile and Clothing Development
Strategy (2013)
A High Level Strategy for the Development of
the Leather Industry in Botswana (2012)
Market
Approach
• Government creates conducive
environment for Private Sector
• Private Sector identifies priority
Sectors for development
Private
Sector
Govt
Sector
Devt
Partners
Economic
Diversification
Pragmatic
Approach
Labour
Parastatals
Each Policy has a Vision, Mission, Theme and
Implementation Matrix. For IDP 2014 we have:
Vision: To have diversified, sustainable, and globally
competitive industries.
Mission: IDP2013 aims at promoting development of
diversified and viable industries as well as commercial
sectors, using skilled personnel and appropriate
technology whilst leveraging on active private sector
collaboration and participation.
Theme: Placing Botswana among the Industrialized
Economies of the 21st Century.
Implementation Matrix with milestones, Strategic
Initiatives, Responsible Implementer and Timeframes



A priority list of sectors is developed by all
Stakeholders
The list includes sectors/Subsectors with
potential for domestic and international
market growth, export potential and
employment growth
The identified list is developed by the private
sector which is the engine of growth for
Botswana
For each sector/sub-sector a
Sector specific strategy is
developed which includes:
 SWOT
Analysis
 Value
Chain Analysis
 Cluster
Development
 Development
of Business Linkages
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Value Chain Analysis breaks a production chain into
its constituent parts to identify and understand:
 Value adding activities in the chain;
 Value chain business opportunities and challenges;
 Economic actors at each stage of the value chain;
 Value chain leadership or governance;
 Domestic, international and global value chains;
 Required policy interventions to sustain the sector.
DAIRY COWS
PACKAGING
AND
BRANDING
FINANCIERS
TECHNICAL
SUPPORT
FROM ALL
BDS
BREEDERS
MILK
PROCESSING
FEED
PROCESSING
FEED
GROWERS
TRANSPORT
• Membership to represent all critical Stakeholders
16
11
 2
 3
 2
 7
 5
Ministries
Parastatals
Independent Departments
Private Sector Representatives
MTI Departments
Chairpersons of Thematic Teams
EDD Unit
• Ensures Effective Coordination, Collaboration and
implementation
• Monitoring and Evaluation to track progress
• Private Sector Involvement (BOCCIM and BEMA)
• Impact: Effective Coordination, Collaboration and
Implementation
a) EDD purchases: Cumulative Purchases
 A cumulative figure of Government purchases of P12.566 billion worth
of goods and services has been recorded since inception of the EDD in
2010. Out of this figure, the cumulative value of purchases from local
manufacturers and service providers is almost P7 billion.
Cumulative Purchases Since 2010
April 2010 –
March 2011
April 2011 –
March 2012
April 2012 –
March 2013
Manufacturer
P97.5m
P214.2m
P298.3m
P182.0m
%
16.51
11.36
16.24
7.71
P493.0m
P1.672bn
P1.539bn
P2.180bn
P5.854bn
83.49
88.65
83.78
92.29
87.69
P1.886bn
P1.837bn
P2.362bn
P6.676bn
Category
Service
Provider
%
TOTAL EDD
P590.5m
PURCHASES
April 2013 –
March 2014
Total
P792m
11.86
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a) EDD purchases: Cumulative Purchases by Percentages
Cumulative Purchases Since 2010
Category
Manufacturer
Service
Provider
April 2010 –
March 2011
April 2011 –
March 2012
P97.5m
P214.2m
P298.3m
P493.0m
P1.672bn
P1.539bn
TOTAL
EDD
PURCHASES
P590.5m
%
51.30
49.93
P437.2m
Retailers
%
Foreign
Supplier
%
TOTAL
PURCHASES
April 2012 –
March 2013
P1.886bn P1.837bn
April 2013 –
March 2014
P182.0m
P2.180bn
Total
P792m
P5.854bn
P2.362bn
P6.676bn
53.73
55.97
53.13
P1.460bn
P1.208bn
P1.504bn
P4.609bn
37.98
38.66
35.33
35.64
36.68
P123.0m
P431.0m
P374.0m
P353m
P1.281bn
10.69
11.41
10.94
8.36
10.19
P1.151bn P3.777bn P3.419bn
P4.220bn
P12.566bn
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a) EDD Purchases
ii) Analysis of Purchases per product for 2011/12
PURCHASES ANALYSIS PER PRODUCT CATEGORY FOR FINANCIAL YEAR 2011/2012
Chemicals and
Cleaning Services
Clothing and
Accomodation
1%
Footwear
Wood, Paper and and Utilities
1%
5%
Plastics Products
7%
Construction,
Building Materials
and Maintenance
Miscellaneous
23%
9%
Training and
Consultancy
Services
10%
Office Equipment,
Stationery and
Computer
Accessories
14%
Food and
Agricultural Produce
16%
Transport and
related fields
14%
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ACHIEVEMENTS SO FAR CONT’D
b) Promotion of Local Production and Consumption
i) Employment Creation, Investment and Turnover
The turnover for these enterprises declined by over P86.9 million representing
a 6% decline. The decline is for 37 enterprises out of the 110 enterprises in
the sample, or 34%.
Most of the companies which showed declined in turnover are those involved
in the production of building/construction products (such as bricks, pipes,
cement) bakeries, milk, chemicals and furniture.
The figures are as shown in the table below:
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
SPEDU Strategy – works that are underway:
◦ Turning the old mine shaft into a mining
museum;
◦ Refurbishment of Selebi-Phikwe Airport;
◦ Beneficiation of copper
◦ Steel Manufacturing and Casting
◦ Use water from the mine for Horticulture
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


A Leather Park is planned to be developed at Lobatse.
Benchmarking studies [2014] have already been
undertaken to Brazil, Ethiopia, India and Italy.
A feasibility study for the Leather Park will be will
be undertaken and is expected to be completed by
December 2014
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“Develop
diversified,
sustainable
and
globally
competitive industries,“ that
Industrial Development
Policy (2014)
Special Economic Zones
Policy (2011)
will place Botswana among
the industrialized countries of
the 21st century.
Attract world class firms that
will produce world class
goods for world markets
Trade Policy for
Botswana (2009)
Citizen Economic
Empowerment Policy
Open world markets for
Botswana Goods and Services
Ensure
that
Batswana
participate and benefit from
the opportunities opened by
Botswana’s economic policies
and Strategies
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SPEDU Strategy for
Selebi-Phikwe Regional
Economic Diversification
Turn
Selebi-Phikwe
into
a
vibrant,
Diversified,
and
sustainable economic
region
Economic Diversification
Drive (EDD) Strategy
Develop globally
competitive enterprises
Botswana National
Export Strategy
Diversify
exports
and
export markets through a
vibrant
and
globally
competitive private sector
Cooperatives
Transformation Strategy
Turn Co-operatives into
Vibrant, Competitive and
Profitable
Business
Enterprises
based
on
modern business practices
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