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Global Competitiveness: Botswana inch up

Botswana still has a lot of catching up ton when it comes to global competitiveness, this is despite moving one notch up in the latest Global Competitiveness Report – 2017-2018.

According to the 2017-2018 Global Competitiveness Index’ released by the World Economic Forum (WEF), Botswana ranks number 63 out of 137 countries with a score of 4.30. This is a slight improvement from the previous ranking of 64th, further reflecting the upward trend since 2012 when Botswana was ranked 80th in the world.

The Global Competitiveness Index (GCI) tracks the performance of close to 140 countries on 12 pillars of competitiveness. It assesses the factors and institutions identified by empirical and theoretical research as determining improvements in productivity, which in turn is the main determinant of long-term growth and an essential factor in economic growth and prosperity.

The WEF defines it as “the set of institutions, policies and factors that determine the level of productivity of a country”. Others are subtly different but all generally use the word “productivity”. Mauritius remains Africa’s most competitive economy, followed by Rwanda ranked 58th globally with a score of 4.35, South Africa is ranked 61st globally with a score of 4.32. Botswana has done better than the likes of Morocco which is ranked 71st globally with a score of 4.24. On the global scale, Switzerland, United States, Singapore, Netherlands and Germany completed the top 5 economies with scores of 5.86, 5.85, 5.71, 5.66 and 5.65 respectively.

Botswana as a middle income state intends to improve its economic environment to improve Foreign Direct Investment, the ease of doing business, innovative culture in a quest to industrialize the economy, diversify national revenue and create much needed employment, among other things. Stakeholders observe that government still has a major role to play in making sure that Botswana is an attractive place for investment, economic growth and business development. According to Specially Elected Member of Parliament, Bogolo Kenewendo, government has a significant and direct role in ensuring that jobs are created.

Kwenewendo, who is a renowned economist, a trade & investment specialist has observed in previous interviews that government lacked a clear strategic path facilitation of jobs creation. “We cannot continue saying the government is not responsible for creating jobs, while we know the government does not have a clear framework on how we are going to create a conducive environment for somebody else to do so,” she said.

 “We need to devise and craft clear strategies with timeframes on how we want to combat this issue of unemployment which affects most of our youth and continues to be on the rise. People want to hear job creation; we need to have clearer business reforms that can position Botswana among the top investments and business environments in the continents and the world,” she said. Kwenewendo, a former Ghanaian government trade & investment advisor says the Botswana government has a huge task of evaluating its immigration laws, trade regulations and its investment wooing approach.

The former Ecosult Economist appealed to the government to fast track moving into the techno-based economic strategies adding that globally there is a transition to move from physical human resource to information technology, digital and machinery personnel. “If we don’t tap into global changes we will be left behind and that will make it difficult for us to do business or trade with other countries, or even export labor,” she said. Renowned Economic and Finance Specialist at First National Bank Botswana (FNBB) Moathudi Sebabole observes that Botswana‘s Foreign Direct Investment is still untapped.

Sebabole compared Botswana to countries such as Mozambique, Democratic Republic of Congo whom according to him are doing well when it comes to attracting foreign investors to set up business and create employment for natives. “If you look at our FDI figures, they are very low compared to countries I have mentioned, that raises a concern that there might be something we not doing right,” he said.

He further explained that compared to those countries Botswana has better political stability with no civil unrest. “It suggests that there was somewhere we failing as far as attracting investors to Botswana is concerned.” Emphasizing on Sebabole‘s views another youthful business person, Health Education guru, Dr Tiro Mampane of Boitekanelo Group of Companies which includes Boitekanelo College told this publication that Botswana needed to look deeper and introspect its trade and business laws. He indicated that the ease of doing business locally needed to be improved by eliminating cumbersome procedures which might end up discouraging investors.

According to Dr Mampane, Small Medium Enterprises need to be empowered to create wealth and economic survival for the rural and low income people. “If you look into other businesses you will realize that they don’t necessarily require, for example, a physical office to operate, thus they should be exempted from some trade licenses requirement,” he said. The Global Competitiveness Report 2017–2018 comes out at a time when the global economy has started to show signs of recovery and yet policymakers and business leaders are concerned about the prospects for future economic growth.

Governments, businesses, and individuals are experiencing high levels of uncertainty as technology and geopolitical forces reshape the economic and political order that has underpinned international relations and economic policy for the past 25 years. At the same time, the perception that current economic approaches do not serve people and societies well enough is gaining ground, prompting calls for new models of human-centric economic progress.

The Report states that in many advanced economies the value of economic growth for society has come into question as a result of increasing inequality, the challenges of technological change, and the complex impacts of globalization—including those related to trade in goods, services, and data, and to the movement of people and capital. In emerging economies, record decreases in poverty and a growing middle class have fueled higher aspirations and demands for better public goods; these demands are now clashing with slower growth and tightening government budgets.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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