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Poor work ethic stagnate manufacturing sector

Human Resource Development Council acting chief executive Dr Molutsi

Manufacturing is touted to have the much needed jobs and, drive creativity and innovation throughout every segment of the society.

Manufacturing has been the key for economic development for some developed nations such as: Britain, and Germany, United States, Japan, USSR and also for the newly industrialised nations of Korea, Singapore, Taiwan, and China, commonly referred to as the Asian Tigers.

In Botswana, formal sector employment is growing very slowly at about 3 percent in 2010, 2011 and 2013. In 2012, only 0.5 percent growth in formal employment was experienced. This has been tied to the weak manufacturing sector that has contributed only 6 percent to GDP (gross domestic product) between 2008 and 2012.

However, Human Resource Development Council acting chief executive Dr Molutsi, pointed out that the country is faced with what he terms ‘the triple E problem’ : a weakened economy, with education that does not address industry needs and industry jobs that have no takers in the form of qualified, experienced personnel.

Barry Mabena, Principal Industrial Officer at the Department of Industrial Affairs in the Ministry of Trade and Industry, said that: “Manufacturing is the vehicle towards rapid sustainable economic growth; the growth of manufacturing machinery output and technological change are the main drivers of the economy. Just look at the explosion of the internet, iphones, and innovations, all made possible by a small subset of Production machinery.”

A vibrant and competitive manufacturing sector therefore plays a leading role in maintaining a globally competitive and innovative economy.   

The manufacturing sector is also crippled by the shortage of skills, particularly boiler making. “There are about a hundred boilers in the country but there is no training institution locally that trains boilermakers; Boilers are an integral part of any manufacturing business,” said a representative from the packaging industry, who did not want to be named.

“While we don’t want to point fingers, we can’t do anything about other issues such as lack of water and electricity, we can only look to the government,” said the manufacturer. “Government must look at policies that protect us as local manufacturers and also introduce incentives that will make it more attractive and the sector can grow from there.”

 “If the economy does not grow, consumers will not grow and manufacturing will not grow; government must set the tone but they instead restrict our growth,” the manufacturer further asserted.

Pelonomi Bantsi of Lithoflex Inks, also told BusinessPost that while the Economic Empowerment Policy specifies that citizen owned businesses must be given priority, in Government procurement, “in practice it is not being adhered to.”

“The Ministry says it is compulsory for Government, which, it is a given that it is the biggest client anywhere, should buy from us before they look outside the country, but we do not see that,” said Bantsi.     

Bantsi is also concerned about levies such as value added tax and customs duty that erode profitability in manufacturing, as most raw materials have to be sourced from outside the country.

M.Shahid Ghafoor, managing director at Western Textiles, said that while they give salaries above the statutory minimum wages in Botswana, they as manufacturers experience poor work ethic and absenteeism on the factory floor, especially at around month end.

According to the Global Competitiveness Report of 2014/2015, the human resource situation in Botswana is plagued by mostly poor ethic, followed by an inadequately educated workforce, government red tape, corruption, lack of innovation and poor access to finance, among many other issues.                                                                                                                                                                                                                                                                                                                                       


Faced with an undiversified economy that is based on a diminishing diamond sector, Botswana’s best hope at a brighter future is a highly skilled workforce. According to Dr Patrick Molutsi, “we are now emphasising skills”.

This past week, the Human Resources Development Council was engaged in the formation of the newly announced sector committees, bringing in industry players into the decision making process, that will be actively engaged in advising, strategising and guiding the way Batswana are trained for industry, in order to curb the trend where there is an oversupply of skills in certain areas and a shortage of skills in some areas.

The new sector committees, which were announced two weeks ago, are Transport, Manufacturing, Education and Training, Public Service, Research and Innovation, Science and Technology.

“There is an admission of the group that we need business leadership training; we have business leadership training institutions, we will go and say to them that can we do weekend courses, and maybe we can meet the costs halfway,”
“We should never have an empty classroom; we should be like security guards who work on shifts, always on duty.”

 “They will tell us how to innovate and grow; the markets are now global because of the internet as we have seen with some of our local manufacturers doing here.” “We are sitting on too many opportunities as a nation,” said Dr Molutsi.

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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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