Connect with us
Advertisement

Development agenda should be given priority

Dr Grace Tabengwa


The Botswana Institute of Development and Policy Analysis (BIDPA) has called upon the new Parliament to spearhead the development process and remain focused to ensure sustained economic growth.

Macro-Economist and Research fellow with BIDPA Dr Grace Tabengwa said the manner in which the October 24 general election process was handled places Botswana well in terms of democracy and good governance but more needs to be done for the development of the country.

Stressing that significant effort should be directed towards development issues, Tabengwa says, “There is already a lot of ground work on setting the policy framework and economic initiatives to address national challenges of poverty, high and persistent unemployment and diversification and the challenge has lately been on attaining and making progress on the results.”

The continued failure to implement has resulted in slow pace of diversification and continued high unemployment levels.

To her, inclusive growth, youth unemployment are the key areas that continue to warrant attention especially to attain Botswana’s Vision 2016 aspirations for a prosperous, productive and innovative nation. She added that human capital development stands to unlock Botswana’s productivity, efficiency and competitive potential with great prospects for transformation.

Tabengwa said the still limited diversification and private sector potential to drive the growth process and be an engine for transformation, require continued focus with initiatives and sector-specific incentives to enhance private sector grow.

She said the current power and water shortages in the country have jeopardised productivity.  “A solution to the water, power and energy crisis is urgently needed since productivity of the Government, private firms and households depends on these factors of production,” Tabengwa said.  

Water and power are crucial for creating a conducive business climate and provide investor confidence to business profitability, which is a key factor for investment.

The economist emphasised that priorities for development should be given prominence. Currently Botswana is faced with high unemployment rates and poverty and inequality, hence the need for competitive human skills development, addressing poor work ethic, creating a conducive business environment, and developing a sound and vibrant private sector economy.

“Policies and strategies that currently exist should be effectively implemented and fine-tuned to address these challenges meaningfully to ensure that more progress is attained. Fiscal policy reforms are requisite to have efficiency gains in programme and project delivery with public finance management systems, budget oversight and accountability structures,” she noted.

Tabengwa added that more focus should be directed towards enhanced accountability, capacity to deliver mandates and strategies and also at appropriately specified and implemented programmes.

 “These would contribute towards realisation of results and hasten the pace of development and transformation,” she said.

From the policy perspective, Tabengwa said diversification and having other sectors playing a much more sustainable role in the growth process should still remain a priority.  

She highlighted that the need to address competitiveness, productivity and work ethic are crucial for foreign direct investments (FDIs) into the country and business development.

Continue Reading

Business

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.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

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.

Continue Reading

Business

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,

Continue Reading