“During the 2015/16 financial year the Botswana Investment and Trade Centre (BITC) registered P377 million of investment expansions resulting from their investor aftercare programme, which encourages companies to reinvest locally.
FDI attracted through BITC in 2015 amounted to P1.493 billion compared to P1.489 billion the previous year, while domestic investment amounted to P1.253 billion compared to P238.4 million the previous year. In 2015, BITC further facilitated exports valued at P2.2 billion.
As part of Government's investment promotion strategy, BITC has been further attracting investment in areas of competitive advantage such as cargo and logistics, beef, coal and soda ash beneficiation, auto components, ICT and leather production.
Moving forward our potential as a centre for trade and investment has been enhanced by the recent signing of the EU – Southern African Development Community (SADC) Economic Partnership Agreement (EPA), which accords duty and quota-free market access for Botswana's exports to the EU market.
Under this Agreement, our infant industries can be protected against EU imports from established industries. The Agreement also provides for transitional safeguard measures for Botswana's sensitive products.
To support industrial development, provision has been made for the application of export taxes on up to eight products from Botswana for a period not exceeding 12 years from entry into force of the Agreement.
In addition to benefiting from sourcing inputs for production within the SADC and EU regions, Botswana industries have been also accorded the opportunity to source raw materials and intermediate inputs from African, Caribbean and Pacific (ACP) countries, as well as EU Overseas Countries and Territories.
The Agreement further supports the objectives of the SADC Regional Indicative Strategic Development Plan of poverty eradication and specifically the industrial pillar, where Member States envisage transformation of the region through value addition.
Government is considering the enactment of an Investment Facilitation Law, which will establish an investment code for Botswana and stipulate service standards and turnaround times for facilitating investors.
Economic Development Initiatives
A Board for the Special Economic Zone Authority (SEZA) has been appointed and is already engaged a Technical Advisor for the rollout of the zones. Priority is now being given to the development of the mixed use Special Economic Zone at Selebi Phikwe.
In addition SPEDU has engaged with communities in the SPEDU Region to resuscitate and support development projects in such areas as piggery, fish farming through co-operatives and development trusts. SPEDU is also facilitating the establishment of a Regional Chamber of Commerce and the development of the strategy to incorporate the SMME's into the mainstream economy in partnership with Business Botswana.
SPEDU is further facilitating the allocation of land for the establishment of private sector businesses including a pharmaceutical and air separation plants and an aloe Vera farm and plant. These businesses are expected to be fully operational before the end of the 2016/17 financial year, while plans to facilitate dam tourism are also underway.
From April 2015 to March 2016, 2657 entrepreneurs were trained and mentored by LEA, of whom 2033 were youth. As of March 2016, an additional 25,189 were also trained through the Entrepreneurship Awareness Workshops programme, which targets secondary school leavers, vocational education trainees, as well as prison inmates.
Government is employing sector specific strategies to promote local industries. A statutory instrument to restrict importation of salt in small quantities has been introduced to promote market access for locally packaged salt. Since its commencement two salt packaging companies have been established. Restrictions on the exportation of scrap metal are also in place to improve accessibility by local metal foundries.
The Gambling Authority has now taken over from the previous Casino Control Board and is in the process of tendering for new licences, which includes casinos, sports betting and the national lottery among others. As this industry diversifies, we expect that this issuance of new licences will create more enterprises involving Batswana as well as external investors.
Botswana's 241 cooperatives continue to contribute to economic, social and cultural development. Government is therefore monitoring the implementation of the Co-operative Transformation Strategy, with a view to resuscitate, revamp and re-direct the development of co-operatives into competitive businesses.”
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.