Barclays Botswana has once again introduced a more convenient package and small medium enterprises tailored initiative in the area of procurement and logistics businesses.
The Enterprise and Supply Chain Development Programme (ESD) will provide businesses development facilities and access to financial assistance so that SMEs can fulfill their purchase orders and watch their businesses prosper. When giving a key note address at the launch in Gaborone this past Wednesday Barclays Managing Director, Reinette van der Merwe said her company recognized the integral role played by small medium enterprises in the growth of Botswana economy and diversification of the latter.
"When we grow our business, those around us should grow with us and prosper. This is what will drive economic growth in our country. Based on our research of SMEs early development, the ESD Programme will aim to increase SME access to financial coaching and mentorship,” she said.
Explaining the package, Barclays Head of Enterprise and Supply Chain Development Programme, Kushata Chilisa said SMEs were the heartbeat of Botswana’s economy but were currently challenged when it comes to them accessing financing hence the programme. She explained that small medium enterprises engaged in supplies and procurement both for government and private sector purchases will partner with Barclays in form of an MOA and be provided with financing to resource their procurement and supply tenders.
“We will be giving loans to qualifying SMEs with evident financial discipline and book keeping record without asking for security,” she said. “The project is aimed at addressing challenges faced by small enterprises in Botswana.” Botswana Chamber of Mines which is a commercial lobby group of mining companies in Botswana also presented on their similar program which compliments the Barclays package. Joe Ramotshabi said through their program they have been able to partner with over 30 businesses and employ over 400 talented Batswana.
“Our programme is made up of procurement managers from all mines operating in Botswana.” Ramotshabi said as a company in the mining sector which constitutes numerous procurement, purchases and supply of equipments, materials and other instruments used in daily operations and support services they came up with the program to boost government efforts of employment creation.
“We looked at what we could use to complement the government to create employment and diversify the economy and we came up with our own project too. We identify capable citizen owned companies that need to be mentored to grow and offer services and supply products to the mining sector and put them under our programme,” he said.
Barclays has over the years developed a number of initiatives aimed at empowering SMEs, the products supplement a number of national strategies put together by government and the private sector. Small Micro & Medium Enterprises (SMMEs) have been identified as the missing puzzle in Botswana’s economic makeup. This sector comprises small scale business, community cooperatives, hawkers, roadside traders as well as medium scales businesses. Over 30% of Botswana’s workface is employed by small medium enterprises. This sector currently contributes over 20% to Botswana‘s economy.
In its quest to empower Batswana and realize economic diversification away from the diamond sector, as well as employment creation and sustainable growth, the Government of Botswana has setup various business facilitation arms and also introduced a number of programs and initiatives.
Youth Development Fund under the Ministry of Youth Empowerment, Sports and Cultural Development intends to finance young people to start up medium enterprises in almost every sector from agriculture , manufacturing and ICT. The Department of Gender Affairs under the Ministry of Nationality, Immigration and Gender Affairs offers the Women’s Grant to groups of women to a tune of P350 000 for the women to turn community cooperatives and indigenous small medium business into profit making entities.
Local Enterprise Authority ( LEA) under the Ministry of Investment Trade & Industry offers development and support services to the local industry needs of SMMEs, The Authority's key sectors are manufacturing, tourism, agriculture, and any services that support the three business sectors.
In particular, LEA targets women, youth, and the unemployed. In delivering their mandate and mainly supporting the Small Micro & Medium Enterprises LEA conduct entrepreneurship awareness workshops annually across the country to cultivate the spirit of entrepreneurship in youth and the unemployed.
The Citizen Entrepreneurship Development Agency (CEDA) operates as an investment arm and financer to viable projects and feasible business ideas. Although it initially gave funds of up to tens of millions, CEDA recently introduced an SMME tailor made initiative-Mabogo Dinku.
Through the program CEDA provides subsidized loans for various micro-entrepreneurs to enable citizen participation in enterprise development. Mabogo-Dinku loan offers micro-enterprises an opportunity and enables citizen participation in enterprise development. The initiative provides micro-enterprises with funds for their business needs ranging from working capital to small asset finance. Mabogo-Dinku offers short term loans from P500.00 to a maximum of P150, 000.00 per person, payable in 3-12 months to citizens who are micro-entrepreneurs to assist in the growth of their business.
Namibia’s deliberate actions on SME development
Namibia, whose economical setup is similar to that of Botswana, seems to be progressing as far developing SMEs is concerned. The Namibia Ministry of Trade, Industry & SME Development scooped position 1 in the Country Pavilion category at the last week Global Expo held in Gaborone.
In an interview with Brian Patako, senior official representing the Ministry WeekendPost established that the Namibian Government took deliberate steps to enact the Small Medium enterprises development as a key national agenda hence the renaming and realignment of the trade ministry to the nomenclature “Ministry of Trade, industry & SME Development” in 2014.
According to Patako SMEs currently contribute only just above 12 % to the Namibian economy, a figure that improved tremendously since 2014 prioritization on empowerment of the SME sector. “As much as we pursue foreign direct investment (FDI) realized we needed to put forward the development of our ordinary people businesses, because we have like all other African countries experienced the wrath of fly by night investors and pseudo business people who come into our country and exploit our generosity, pocket proceed and exit,” he said.
Joint venture between De Beers and Government of Republic of Namibia announces new plan, supporting economic, commercial, employment and community benefit, following receipt of royalty relief Namdeb Diamond Corporation (Proprietary) Limited (‘Namdeb’), a 50:50 joint venture between De Beers Group and the Government of the Republic of Namibia, today announced the approval of a new long-term business plan that will extend the current life of mine for Namibia’s land-based operations as far as 2042.
Under the previous business plan, the land-based Namdeb operations would have come to the end of their life at the end of 2022 due to unsustainable economics. However, a series of positive engagements between the Namdeb management team and the Government of the Republic of Namibia has enabled the creation of a mutually beneficial new business plan that extends the life of mine by up to 20 years, delivering positive outcomes for the Namibian economy, the Namdeb business, employees, community partners and the wider diamond industry.
As part of the plan, the Government of the Republic of Namibia has offered Namdeb royalty relief from 2021 to 2025, with the royalty rate during this period reducing from 10% to 5%. This royalty relief has in turn underpinned an economically sustainable future for Namdeb via a life of mine extension that, through the additional taxes, dividends and royalties from the extended life of mine, is forecast to generate an additional fiscal contribution for Namibia of approximately N$40 billion. Meanwhile, the life of mine extension will also deliver ongoing employment for Namdeb’s existing employees, the creation of 600 additional jobs, ongoing benefits for community partners and approximately eight million carats of additional high value production.
Bruce Cleaver, CEO, De Beers Group, said: “Namdeb, a shining example of partnership, has a proud and unique place in Namibia’s economic history. This new business plan, forged by Namdeb management and enabled by the willingness of Government to find a solution in the best interest of Namibia, means that Namdeb’s future is now secure and the company is positioned to continue making a significant contribution to the Namibian economy, the socio-economic development of the Oranjemund community and the lives of Namdeb employees.” Hon. Tom Alweendo, Minister of Mines and Energy for the Government of the Republic of Namibia, said: “Mining remains the backbone of our economy and is one of the largest employment sectors within our country.
Government understood the fundamental impact of what the Namdeb mine closure at the end of 2022 would have had on Namibia. Therefore, it was imperative to safeguard this operation for the benefit of sustaining the life of mine for both the national economy as well as preserving employment for our people and the livelihoods of families that depend on it.”
Riaan Burger, CEO, Namdeb Diamond Corporation, said: “After more than a century of production, these operations were approaching the end of their life, but the creation of this new business plan means we can continue to deliver for Namibia for many years into the future. This is great news for the hardworking women and men of Namdeb, as well as for all our community partners who we are proud to have worked with over the years. We now look forward to starting a new chapter in Namdeb’s proud history.”
Botswana has recorded its first trade surplus for 2021 since the only one for the year in January.
The country’s exports for the month of July surpassed the value of imports, Statistics Botswana’s July International Merchandise Trade data reveals.
Released last Friday, the monthly trade digest reports a positive jump in the trade balance graph against the backdrop of a series of trade deficits in the preceding months since January this year.
According to the country’s significant data body, imports for the month were valued at P7.232 billion, reflecting a decline of 6.6 percent from the revised June 2021 value of P7.739 billion.
Total exports during the same month amounted to P7.605 billion, showing an increase of 6.1 percent over the revised June 2021 value of P7.170 billion.
A trade surplus of P373.2 million was recorded in July 2021. This follows a revised trade deficit of P568.7 million for June 2021.
For the total exports value of P7.605 billion, the Diamonds group accounted for 91.2 percent (P6.936 billion), followed by Machinery & Electrical Equipment and Salt & Soda Ash with 2.2 percent (P169.7 million) and 1.3 percent (P100.9 million) respectively.
Asia was the leading destination for Botswana exports, receiving 65.2 percent (P4.96 billion) of total exports during July 2021.
These exports mostly went to the UAE and India, having received 26.3 percent (P1. 99 billion) and 18.7 percent (P1.422 billion) of total exports, respectively. The top most exported commodity to the regional block was Diamonds.
Exports destined to the European Union amounted to P1.64 billion, accounting for 21.6 percent of total exports.
Belgium received almost all exports destined to the regional union, acquiring 21.5 percent (P1.6337 billion) of total exports during the reporting period.
The Diamonds group was the leading commodity group exported to the EU. The SACU region received exports valued at P790.7 million, representing 10.4 percent of total exports.
Diamonds and Salt & Soda Ash commodity groups accounted for 37.8 percent (P298.6 million) and 6.2 percent (P48.7 million) of total exports to the customs union.
South Africa received 9.8 percent (P745.0 million) of total exports during the month under review. The Diamonds group contributed 39.9 percent (P297.4 million) to all goods destined for the country.
In terms of imports, the SACU region contributed 62.7 percent (P4.534 billion) to total imports during July.
The topmost imported commodity groups from the SACU region were Fuel; Food, Beverages & Tobacco, and Machinery & Electrical Equipment with contributions of 33.3 percent (P1.510 billion), 17.4 percent (P789.4 million) and 12.7 percent (P576.7 million) to total imports from the region, respectively.
South Africa contributed 60.1 percent (P4.3497 billion) to total imports during July 2021.
Fuel accounted for 32.1 percent (P1.394 billion) of imports from that country. Food, Beverages & Tobacco contributed 17.7 percent (P772.0 million) to imports from South Africa.
Namibia contributed 2.0 percent (P141.1 million) to the overall imports during the period under review. Fuel was the main commodity imported from that country at 82.1 percent (P115.8 million).
During the months, imports representing 63.5 percent (P4.5904 billion) were transported into the country by Road.
Transportation of imports by Rail and Air accounted for 22.7 percent (P1.645 billion) and 13.8 percent (P996.2 million), respectively.
During the month, goods exported by Air amounted to P6, 999.2 million, accounting for 92.0 percent of total exports, while those leaving the country by Road were valued at P594.2 million (7.8 percent).
Founders from twenty companies have been accepted into the program from Botswana, Namibia, and South Africa
The 4th Cohort of the Stanford Seed Transformation Program – Southern Africa (STP), a collaboration between Stanford Graduate School of Business and De Beers Group commenced classes on 20 September 2021. According to Otsile Mabeo, Vice President Corporate Affairs, De Beers Global Sightholder Sales: “We are excited to confirm that 20 companies have been accepted into the 4th Seed Transformation Programme from Botswana, Namibia, and South Africa. The STP is an important part of the De Beers Group Building Forever sustainability strategy and demonstrates our commitment to the ‘Partnering for Thriving Communities’ pillar that aims at enhancing enterprise development in countries where we operate in the Southern African region”. Jeffrey Prickett, Global Director of Stanford Seed: “Business owners and their key management team members undertake a 12-month intensive leadership program that includes sessions on strategy and finance, business ethics, and design thinking, all taught by world-renowned Stanford faculty and local business practitioners. The program is exclusively for business owners and teams of for-profit companies or for-profit social enterprises with annual company revenues of US$300,000 – US$15million.” The programme will be delivered fully virtually to comply with COVID 19 protocols. Out of the 20 companies, 6 are from Botswana, 1 Namibia, and 13 South Africa. Since the partnership’s inception, De Beers Group and Stanford Seed have supported 74 companies, 89 founders/CEOs, and approximately 750 senior-level managers to undertake the program in Southern Africa.