Ministry of Investment Trade & Industry (MITI) last week launched the AGOA National Response Strategy for Botswana at the Gaborone International Convention Centre.
Through AGOA, Botswana and other African countries get non-reciprocal concessions of more than 6,500 product lines duty free into the U.S. market. Speaking at the launch, MITI minister, Vincent Seretse explained that following AGOA’s re-authorization in 2015, Botswana had developed a National AGOA Response Strategy with assistance from the USAID Southern African Trade and Investment Hub. The strategy provides a prioritized roadmap for developing Botswana’s export competitiveness under AGOA.
Minister Seretse told attendants that the broad objectives of the Botswana AGOA Strategy were to advise the Government of Botswana on how to systematically take advantage of AGOA. He said the strategy will help government identify policy responses in targeted sectors to capacitate current and potential exporters in Botswana to increase exports under AGOA and also Develop an ongoing consultative mechanism between the public and private players as well as attract investment in the identified sectors that can benefit from international trade. ”These objectives are in line with the AGOA broader objectives of deepening U.S trade and investment ties with the region,” he said.
The Strategy has identified potential sectors, which are to export to the US market under the Act. These include the Horticulture and Agro-processing; Handicrafts (Arts and crafts); Jewellery and semi-precious stones; Leather and leather products; Natural (indigenous) products; Meat and meat products and the Textiles/ Apparel sector. It also encompasses an elaborate implementation matrix detailing specific sector based actions and activities to be undertaken for effective implementation of the Strategy.
According to Seretse a technical analysis of the Competitiveness and Market Opportunities for Botswana Beef Exports into the USA is currently being undertaken through the assistance of the Southern African Trade and Investment Hub. “I am reliably informed that this work will continue with other sectors identified in the Strategy,” he shared
The Minister further highlighted that the Strategy resonates with the aspirations of Vision 2036 and National Development Plan (NDP) 11, being an export led and diversified economy. “By taking advantage of the AGOA preferential treatment, Botswana will be able to increase the export base of Botswana goods to the U.S. market,” he said.He further noted that the government continues to refine policies aimed at improving the business environment, revealing that the Doing Business Reform Framework had already been adopted by government. The framework is aimed at easing the business environment. He said the one-stop shop centre was operational and will be officially launched in October.
Still at the AGOA strategy launch it was noted that the recent re-opening of the Botswana based – USAID Southern Africa Trade and Investment Hub on the 23rd August 2017, was testimony to the commitment that the U.S. Government has to the development of the economy of Botswana and the SADC Region at large. MITI in collaboration with the Hub is looking into exploring further support in terms of creating business-to-business linkages between local industries and the U.S. market, with particular emphasis on the priority sectors identified in the Response Strategy.
When commenting on the strategy, vice president of the Botswana Exporters and Manufacturers Association (BEMA) Mr. Pako Tsimanyana said the development of the Strategy was drawn from the strengths and lessons from the previous African Growth Opportunity Acts. He noted that the global trade landscape and the strategic comparative advantage informed the identification of sectors that are export-ready for the American market.
Tsimanyana highlighted that investment was a powerful tool that can be used to create meaningful opportunities for growth at the macro and micro levels. “Botswana remains an investment destination of choice because it offers investors several comparative advantages such as a well-established financial sector, political and macro-economic stability and respect for private property rights.”
“AGOA opens up yet another catalyst to investment into Botswana. But, nationally we must do our homework to attract and maintain investment,” he observed, emphasizing that time was of the essence. He advised that the year 2025 may seem far away but was near for the next generation. “I urge that we move with agility in implementing the AGOA National Response Strategy, for the betterment of our people and country.”
The AGOA program is an Agreement between African countries and the United States on matters of trade, to facilitate penetration of African companies into the United States market. The program targets manufacturing companies in strategic sectors like agriculture and textiles. The United States hopes to boost African developing economies with this platform. The Act was enacted into the United States Trade Act, on 18 May 2000 as Public Law 106 of the 200th Congress. AGOA has since been renewed to 2025.
The legislation significantly enhances market access to the US for qualifying Sub-Saharan African (SSA) countries. The intention was to set requirements for local textile fabric sourcing, where it was considered that sufficient quantities were available in AGOA-eligible countries; third country fabric (the provisions related only to denim initially) would thus first have to be sourced locally or regionally before third country imports could be utilized for onward import of denim garments.
This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.
“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.
Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.
A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.
Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.
A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.
Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.
In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.
The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”
In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.
Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.
The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.