Creating Botswana’s Next Value Frontiers
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Many economists have published detailed models about how steep a curve the movement from middle income status to high status is.
The middle-income trap has left many cabinets and high-powered delegations of experts drawing economic formulas that have left nothing beyond growing bodies of theory and a few actions that have delivered the much sought-after value. Emerging markets still remain emerging markets – a status quo long predicted to remain as such for many lifetimes. A few countries have broken away from the middle-income barriers since the establishment of the World Trade Organisation (WTO). Our republic has been having the same debate for more than a generation whilst our economic diversification debate is still on full steam.
As we confront a changing world and new realities we have to answer difficult questions about where we are and where we are going. As a predominantly import economy, how much value do we derive from this economic model versus in-country capacity building in manufacturing? How is the balance of trade between our exports and our imports? Which value frontiers remain untapped? What can give a genuine jump into a high-income economy? How do we get over the – ‘we are better than most adage and complacency?’ How can our natural endowments be the spring board of international competitiveness? What happens when basic goods run dry because exporters cannot even meet their own home demand?
As a construction industry player, I dream of a belt of vast factories – strong primary industries that mushroom from our cities and towns from Ramokgwebana to Charles Hill and beyond – giving beam and life to our people. Skills are harnessed, transferred and shared with our people as we forge a winning coalition of elevating our country beyond what we are and where we are now. I remember the pride of our fathers when they came back from mines back in the yester years, the mere pride of using their own hands and skills in productivity. They understood their contribution in the value chain. In Selibe Phikwe the ‘unending smoke’ from the BCL Mine represented life for the town and its people. A strong sense of nostalgia and a blend of emotions drew tears for many when for the first time in two generations the smoke failed to rise to the skies. The clear skies were symbolic of the new era a new time and a new reality – all minerals are finite. They are abundant today and they are depleted tomorrow.
Nkosi Mwaba, the former Botswana Export and Manufacturers Association Chairman (BEMA) and the current Chairman of Association Entrepreneurs Botswana (AEB) in a recent documentary commented on the pride of strong, local, vibrant manufacturing sector within our shores. “The global value chain can still be fully optimised for a strong manufacturing backbone in our country. We can support existing local manufactures to compete, increase their quality models and have sufficient capacity to cater for our economy and export. I worked for Bolux, they mastered their raw materials, where they source them at competitive rates, created a strong human capital base and today they do not only supply Botswana they supply the region,” says Mwaba.
Many global case studies support this. Germany was resilient in the 2008 global recession because of small enterprises that are a major contributor to the economy. The recession which changed the economic perking order in Europe acknowledged Germany is a supreme economy which was almost insulated when the global economy weaned in horror.
The rise of nationalism is a wave that is sweeping across different nation-states globally. Exacerbated by the new reality of Covid-19 our regional trade is slowly creating a ‘one man for himself’ atmosphere. One of the senior Executive Managers Teedzani Majaula at Botswana National Productivity Centre (BNPC) asked a question. “What happens when South Africa closes its borders to us? What happen when they switch off their power, fuel and food produce? We have to reach a burning platform which will drive and trigger action,”
His assertions go beyond the normal free market economics argued by the ‘old school’ of markets and economics. The argument of raw materials, cost of production and natural endowments may be a to an extent hindrance towards stabilising critical tenets of our economy and day to day livelihoods for the long term. Israel is one of the largest exporters of produce with a climate similar to ours because of the huge numbers of scientists per capital in the country. What may have been dismissed as bear lands and desert terrains is at the centre of harvesting and exporting thousands of tonnes of produce per year.
The new economic model should look into how much of the import bill should be diverted towards the growth of local manufacturers across different industries. Where there is capacity there is no need for imports where there is a shortage there can be a balanced trade-off which includes imports to mitigate shortages. Moatlholdi Sebabole argues that there has to be a balance between increasing local capacity and disturbing FDIs for the broader health of our GDP. “Any form of protectionism may trigger unwanted circumstances in attracting FDIs. There has to be a well-managed narrative in terms of how this is structured,” he argues.
“Establishment of industries is built on assumptions, the access to raw materials at reasonable costs, labour markets that can deliver value, creation the entire value chain considers the profitability and the profitability growth. Going against this grain in hope of support may trigger unwanted circumstances. However, when the quality of products is good the Government can protect those good,” notes Majaule.
For PPC Botswana, the burning platform has always been how the local manufacturer which used local fly ash from Morupule B for years before the arrangement changed can continue employing Batswana.
The quarries in Kgale, Francistown and Mokolodi are part of a value chain which has strong downstream industry beneficiation. The plant at Gaborone West Industrial are a chemical process of cement production which has emboldened and empowered local applied chemistry experts, chemical engineering gurus amongst others. That entire value is lost when the emphasis is on imports at the expense of establishing a full operation. Materials used in blasting rocks, the people behind the science, the expertise and the blending process of cement drives the conversation about having globally competitive assets that can compete in any part of the globe as outlined by the vision of the National Human Resource Development Strategy. With over BWP120 million paid in taxes, imagine how big an impact the cement industry can be if all players had set up shop in-country.
A lot of good quality players have not seen enough of sunlight in many manufacturing industries, not because they cannot compete but because the products and services which were tailored for the market were overlooked for goods and services from far away. When FDIs come into Botswana they should have different strategic options of setting up not just green field where they start from scratch, they should have options of licensing, joint ventures and buying out local players. This will give a huge return to local players and their shareholders. Indonesia has introduced industry protection for the same reasons. The Motor industry in South Africa is protected against grey imports. In Zimbabwe the cost of importing attracts 100% duty for specific goods which are available in-country.
Our philosophy of supporting local enterprise development, community building and CSI projects for SMMEs is our step of demonstrating that true value should include how players impact and influence SMMEs. We have been part of the community growth and development with our signature rising buildings across the country, a testament to our quality management process. For close to half a century our buildings still stand. Matsiloje, PPC and other local manufacturers have good products, the only thing left is for us to answer the question -what do we want to be. An import economy or a vibrant force of nature that is self-sustaining no matter what?
We are at a crossroads, if sings of Covid-19 are anything to go buy, the future of our manufacturing sector is buying local and enhancing capacity of our home-brewed brands. The avenues for new value frontiers are available. The question is -are we bold enough to take the vital steps to make it happen?
*Dumisani Ncube is Digital Executive at PR Practice
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Orange Botswana Continues to Invest in the Youth Through Digital Schools Programme, Celebrating Thankane as 52nd School Engaged
In continued efforts to empower young students across Botswana through the Digital Schools Programme, Orange Botswana through the Orange Foundation don handed over digital equipment worth P53, 731.50 to Thankane Primary School, located in Jwaneng.
“We are excited to be in Jwaneng and to see yet another milestone for impact being delivered. This relationship began with a view towards working together – inclusively and sustainably – give children greater access to quality education. This is, after all, a key goal within our Vision 2036 and even of the UN Sustainable Development Goals. It is also core to our values and beliefs system at Orange Botswana. Our Digital Schools initiative is a true testament to the Orange Botswana Foundation’s unwavering commitment, loyalty, and support towards the youth of Botswana,” said Benson Lenong from Orange Botswana.
Donated equipment includes but is not limited to:
- 50 tablets loaded with local syllabus content
- 50 headsets
- 1 Video projector
- 1 Raspberry servers
- 1 JBL Speaker
- 1 Laptop
- 1 Case (to contain the package)
The Orange Botswana Foundation, in partnership with the Government of the Republic Botswana, embarked on a quest to empower and educate the youth of the country through giving them better access to technology through Government’s Education & Training Sector Strategic Plan (ETSSP). Orange Botswana signed a Memorandum of Understanding (MoU) with the Ministry of Basic Education and Ministry of Local Government and Rural Development in 2017, to kickstart a pilot of the Digital Schools Programme in 2018. The programme has seen 16,225 students benefiting from deployed schools, with 102 teachers trained in using digital kits as a mode of teaching. Thankane Primary is the 52nd school being engaged as part of the nationwide initiative.
The Orange Digital Schools Project is all about utilisation and integration of ICTs in learning, while at the same time addressing issues of digital inclusion and digital literacy. The Programme aims to bridge the digital gap by leveraging technology to improve access to education in primary schools such as Thankane.
Thankane Primary School was established in 1989 with 324 learners enrolled from Jwaneng and surrounding communities. The school continues to perform well in the Primary School Leaving Examinations (PSLE), and consistently works to ensure children learn vital life lessons both inside and outside the classroom. As one of the highest-ranked academic schools in the South region, Thankane Primary boasts excellent academics, leadership, sports, and culture.
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BIUST confers degrees to 297 Graduands
The Botswana International University of Science and Technology (BIUST) last week held it 7th graduation since its inception with the theme ‘Building a University of industry through a well-rounded ecosystem of economic transformation and innovative entrepreneurship’. 297 students graduated from the class of 2022 compared to the 58 from their first graduation as an institution.
The Assistant Minister of Education and Skills Development, Aubrey Lesaso commended the University as the strides made in the midst of the difficult conditions imposed by the Covid-19 pandemic with potentially devastating impact on the learning of students were thrilling. “Some of the challenges experienced during this period include having to change the learning spaces the school was accustomed to, study remotely without adequate preparations and with limited resources,” said Lesaso.
He acknowledged that the Government through his Ministry is committed to ensuring that they provide quality education to the citizens of Botswana, which is in line with one of the aspirations of Vision 2036 that addresses the need for Development of Human Capital.
“I wish to call upon the BIUST leadership and all stakeholders involved, to remain dedicated to driving the BIUST mission and vision and contribute to achieving the targets outlined in the Vision 2036 National Transformation Agenda,” added Lesaso.
The Founder and Chief Executive Officer (CEO) of The Bulb World (PTY) Ltd, Ketshephaone Jacob noted that for decades entrepreneurs have been identified as the critical change agents in socio-economic development, and some countries have been a lot more intentional and successful in promoting enterprising. “It’s only in the last decade that our Government has put in concrete measures towards the citizen enterprising and this is where BIUST plays an integral role, not only in terms of provision of much needed manpower but also as a provider and stimulant of innovative solutions needed for today’s smart manufacturing,” said Jacob.
In addition to this, the University’s Vice Chancellor, Professor Otlogetswe Totolo noted that BIUST has embraced innovative entrepreneurship as part of its core mandate. “Innovation is our focus in promoting inclusive and sustainable industrialization, to not only encourage more innovations in the University, but to encourage innovations that bring sustainable development,” he added.
The University has not only embraced innovative entrepreneurship but has enshrined it as its vision which states, ‘to produce world class research and innovation in science, engineering and technology contributing to industry growth and development and advancement of a diversified knowledge-based economy.
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The Tourism Business Coaching & Mentorship Programme: Inspiring A More Resilient and Dexterous Tourism Entrepreneurs
It is said that challenging times bring to life the resilience of the human spirit and some of the most important innovations. The advent of COVID-19 brought tremendous challenges to the global economy, and the tourism sector was not spared.
It is during this period, that the Tourism Business Coaching & Mentorship Programme was born. Ms. Tshepiso Mganga upon realising the need for tourism operators to get back on track after the slump leveraged her network to assemble a team of professionals across the various disciplines that are critical for the operation of a tourism enterprise. The programme has to date mentored and coached over 70 tourism and hospitality enterprises in Botswana. The programme imparts practical skills to aspiring entrepreneurs who wish to venture into the tourism and hospitality industry, as well as tourism businesses that are already in operation including but not limited to hotels, lodges, guest houses, mobile safari operators, travel agents, tour operators, and travel photographers. In addition, the benefits to start-ups include the enhancement of awareness on issues such as product development and branding, while existing businesses can use insights to reposition their brands and offerings in the market. The programme covers topics such as understanding the tourism value chain, what is takes to operate lodge in remote area, importance of belonging to an association, moving from idea to action, defining target markets, business planning, financial planning, developing digital marketing strategy, branding tourism business, business insurance, customer service excellence, design & guest experiences, travel show readiness.
The bi-weekly sessions are delivered virtually by several experts and professionals within the tourism industry, with the hope that there will be more in-person sessions in the future. The 3-month programme concluded with educational tours to Chobe Game Lodge. The tour brought practical elements to the programme learning, specifically on running a sustainable facility in a remote area. The tour demonstrated the value of environmental sustainability, with the participants being sensitised on level of investment that goes into developing and running an ecotourism product, including encapsulating aspects of reduce, re-use, and recycle in relation to all inputs of running the business. The participants also got to appreciate the return on investment of ecotourism in terms of reduction of costs of operations, enhanced profitability, as well as conservation of the ecosystem. The tour was sponsored by Desert & Delta Safaris, who have been a valuable partner of the programme.
The Citizen Entrepreneurial Development Agency (CEDA) is another valuable partner, and this year (2022), sponsored thirteen (13) participants to be part of the programme.
The programme is sponsored by City & Safari International, a Destination Management Company (DMC) established in 2017. City & Safari International specialises in Meetings, Incentives, Conferences, and Exhibitions, as well as luxury safari planning & bookings covering Botswana and extending to Cape Town, Livingstone, Victoria, and Namibia.
The next cohort is scheduled for 13 May to 30 July 2023. Further information will be shared on Tourism Business Coaching & Mentorship Programme Facebook and Instagram pages.
Tourism Business Coaching & Mentorship Programme
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