Thursday, April 22, 2021

BOCCIM concerned about deteriorating business climate

The Botswana Confederation of Commerce Industry and Manpower (BOCCIM) has concurred with 2011 Global Competitiveness Report as having expressed the reality on the ground.

The Director Policy and Advocacy, Bino Mogono, said Botswana’s rankings, which are continually going down, is a clear sign that the country is far from having an enabling business environment.

The report proposed that Botswana is relatively doing better on issues of institutional setup and financial market development and has not fared well on issues of business sophistication, technological readiness innovation, and other key attributes to economic development. These have eluded the country for quite some time.

Commenting on the slow progress in areas of innovation and business sophistication sectors, Mogono said, “This is not good for the economy as sustained and rapid economic growth elsewhere has been driven by business sophistication and innovation.”

He said there is need to intensify research on technological improvements and innovation as they are key sectors that are expected to meet future developmental objectives in Botswana.

The report suggested that Botswana is somewhere transitioning from a factor driven economy to an efficiency driven economy.
“The trend postulates that we might not even complete the transition epoch and fail to reach the stage of an innovation driven economy, where most of developed countries are,” Mogono said.

He said to improve productivity, business and public sector processes have to be re-engineered adding that Botswana needs to penetrate the foreign market frontier to augment the small market it has.

Mogono said the supply chain of businesses across sectors has to be unpacked and intimately appreciate the bottlenecks associated with the linkages between the small, medium, and large enterprises. “It is only then that we may know how to address the constraints that compromise the growth in the level and incidence of private sector participation,” he said.

Mogono said there is need to intensify social dialogue, especially at a tripartite setup to address the problems of low productivity, incomes policy and pro-active dispute resolution mechanisms.
“Dialogue between employers and employees as well as government will unearth the root causes of such poor work ethics,” he said.

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