For Botswana to be added to the league of developing economies – Brazil, Russia, India, China, South Africa, Japan, etc, the process can be fast tracked only through diversification of the economy by reinvigorating the income of many investors, the manufacturing sector and developing local raw materials.
Despite the surge in economic activities and investment growth resulting from series of economic reforms embarked upon by the government and several industrialisation initiatives, the manufacturing sector had not impacted positively to the economy. Factors including security challenges, flooding in major parts of the country, infrastructural challenges, multiple taxation and dearth of local skills and technology has been responsible for the less than 5 per cent contribution of the manufacturing sector.
One of the ways I felt Botswana can be among the league of developing economics soonest is to ensure that there are innovations that can translate local raw materials to finished product that can complete with foreign economies, adding that many emerging economies have taken the step and Botswana must strive to follow the trend that is working in other countries.
I believe that it is critical to state that adopting some strategies for achieving a sustainable growth of the manufacturing sector may include massive investment in the power, energy and technology sector if we are to join the league of emerging economies of the world.
Government needs to adopt measures to bring down interest rates to a single digit as high interest rates stifle the survival and profitability of all manufacturers having recognised the manufacturing sector as the driver for economic growth, creation of wealth and employment. Thus, manufacturing sector must be accorded its due regard and priority in the scheme of things.
Increasing the utilisation of local raw materials through product research to enhance competitiveness, Botswana must reduce reliance on diamond and focus on building capacity in areas of skill and competence, promote industries research and development and research and development for commercialisation, increase investment in technology, support and improve the research industry linkage, institute local content development and strengthen the nation system of innovation, as well as build infrastructures and technology incubation centers.
Would I be wrong in saying that Botswana was classified as a factor-driven economy as opposed to efficiency and innovation driven economy, and that the investment in human capital is very low compared to other developing economies?
Quote me, “Unless we develop Botswana huge natural resources, put the right skill and infrastructure in place, we will not be in competition”.
I think it is a massive amount of money to be investing in a one-shot deal and I think there needs to be further debate and further evidence provided on the economic benefits on a regional basis rather than relying on some sort of trickle-down national security which is taking us nowhere.
If Botswana is to achieve the ambitions set out in its growth plan, the whole country will need to grow by attracting more private sector businesses, more jobs, and by growing its digital industries and renewable energy sources and manufacturing sectors.
With access to the country’s development needs and allowing or giving investors to risk their millions in investing by giving them all permits required in just 7200 minutes, Botswana will become an even greater hub for tourism and business.
“I want to play my own part in making my argument while also making sure all the different elements have been looked at to maximize the benefits to this country.”
Therefore my focus will be aimed at pressing the Government to bring forward much-needed investment to the country such as allowing investor to stay rather than giving power to security guys via the home affairs ministry chasing them away.
CASH has been swishing around the world on a yield-seeking mission for the past few years, trying to find a place to earn a decent living. Can we allow Botswana to be the place?
Before the financial crisis in 2008, we were filling up the markets with air (just as we are doing again now), but at least some of that exuberance spilt over into emerging markets. Money for emerging markets has been abundant. What have we done with it?
Have we made the most of these good times? Can any countries graduate from the past decade as the class of 2013 that makes it into the developed world?
No, not really, not yet!
Will we ever?
I think it all has to start with a plan, a long-term plan, a plan that may have to survive three election terms. That’s how long it might take for the new accord to take root, to change culture, to be a good habit, to fulfill expectations. So many inspired leaders have not been followed by others capable of seeing their strategies to completion.
So, partnership is vital. We are fortunate in Botswana in that the before, during and after people of our young, clumsy and transforming democracy are all still here. We can co-design the best of all outcomes from the best of all inputs. Although we have a population of about 3-million, we’ve been through stuff together, and that means we all know who has to be at the table, to come to terms, to construct an enduring plan. Please don’t quote me, I am not a politician and am not campaigning for any party.
We will be required to be bound at the hip, old and new, by necessity, by the need to survive intact for the next era of our togetherness. It will take determined and credible leadership to gather the top 200 people (that’s probably all we need) required to hold hands ÔÇö they’d all fit easily into a school hall. We can no longer simply hope to be greater than the sum of our parts, we have to merge now, to create one nation, accepting differences but submitting to a higher common cause.
Let us lay the ground rules to get Botswana into the developed country graduation class of 2016, say? We’ll have to pass some tests. There remains a lot to do. A plan towards broader economic participation (not transfers or participation) will be required to narrow the economic divide which is now close to revolutionary limits.
We have the dubious honour of the highest Gini coefficient in the world. We will need to privatise all but the most essential services. We’ll have to loosen up labour practices. We’ll have to change to an environment that enables new business.
The common thread among the success stories elsewhere is that the state was the primary driver, behind a leader with a vision ÔÇö but that vision was embraced and adopted by the private sector. No partnership with business, no deal.
Policies of openness to foreign investment, uncluttered and clearly defined bureaucracy, and simple financial rules and systems have proven to be the right recipe to attract foreign direct investment.
Foreign investment cannot be a substitute for local endeavour, it has to be a partnership which, over time, transfers technology and skills to the local population.
If not, we’ll fight it.
Political tension is a killer for investment. That, and uncertainty over the rules of fair play, are automatic disqualifiers for capital that has choice. You have to play by the rules of the new world order if you want to trade freely in the club.
If the promises of development growth by the government aren’t fulfilled, if the spoils aren’t spread around, then the disappointment will take Botswana back to a place worse than before.
Such is the risk facing our country. The rainbow dream has left a broadly based expectations gap, the security dividend has been held close to the chests of the few in the country. The poor are poorer, the rich are richer and no more in number, racism is alive and well. We can only solve it together. Business leadership must be invited into the inner sanctum of government decision making, NOW!
