Let me take this opportunity to thank the organizers of this Local Manufacturing Summit for inviting me to be part of this historic event, whose outcomes will be of great value to our national development agenda.
In the same vein, I wish to applaud our hosts, the Botswana Chamber of Mines, for demonstrating astute leadership in putting together this important national Summit. The Summit comes at an opportune time when we are intensifying efforts at maximising our value chain development in the manufacturing sector.
Distinguished Ladies and Gentlemen, this coming together of key strategic players is, indeed, a great milestone for Botswana, as we witness the Botswana Chamber of Mines taking the initiative to move out of their comfort zone.
It can no longer be accepted nor rewarding to continue with the traditional mining focus of exploration, extraction and exportation without mineral beneficiation and its associated benefits within the larger mining spectrum. This, Bagaetsho, is what we mean by value chain development.
Mining, as a significant contributor to our Gross Domestic Product (GDP), has despite its own challenges, experienced some measure of success over the years. The most significant achievement has been our renegotiation with the De Beers Group to attain more value from our diamonds, through our partnership in the Debswana venture. The new Sales Agreement will translate into more economic benefits for Batswana.
This Summit is, therefore, a demonstration of your dedication to the implementation and achievement of the 2020/21 – 2022/23 Economic Recovery and Transformation Plan (ERTP), together with the Reset Agenda, for which I am champion.
In fact, the Economic Recovery and Transformation Plan identifies manufacturing as one of the sectors that Government has to develop to achieve its twin objectives of employment creation and economic diversification. As a result, Government has adopted a number of initiatives, both at the national and international levels aimed at developing the sector.
For instance, the Selebi Phikwe Economic Diversification Unit (SPEDU) incentives mandates Government’s procuring processes to reserve a minimum of 30 percent of their procurement for manufacturing enterprises located in the SPEDU region.
Furthermore, the revised Citizen Entrepreneurial Development Agency (CEDA) guidelines launched in 2021 prioritise and offer greater opportunities to the manufacturing sector with specific incentives, such as longer loan repayment periods, longer grace periods and relatively easier requirements relating to loan security and others.
The importance of manufacturing as a uniquely powerful economic force cannot be over-emphasised because of its ability to create sustainable employment. Currently, the manufacturing sector contributes the 5th largest share of jobs at 7.1%, and we can and we must definitely do better.
As you may be aware, the Botswana Chamber of Mines was established to serve the interests of the mining and exploration companies together with associated industries in the country. The Chamber subscribes to the philosophy that the entrepreneurial success of its member mining companies should be underpinned by social and economic responsibility. The mining industry, particularly, the diamond mines have for a long period of time been the backbone of the country’s economic development, driving most of Government’s revenue.
The mining sector has long realised the need to push the agenda for import substitution driven by local manufacturing. It was against this background that as early as 2014, the mining industry reviewed its position and decided to focus its procurement internally to assist in the development of the economy.
It is, therefore, critical that all the other different sectors follow suit and support locally produced goods and services in order to enhance the economic performance of our country. This will also reduce our high import bill while also stimulating more local production and, in the process, creating the much needed jobs.
Also Read: Our Journey to Citizen Economic Inclusion
Bagaetsho, a formalised Agreement Charter was signed by all the operating mines in Botswana in 2014. This Charter was intended to ensure that the participating mining companies utilise their purchasing power and influence to promote and facilitate the development of commercially viable local and citizen owned companies and or joint venture businesses in Botswana. It was also meant to drive cost savings and efficiency improvement initiatives at individual company level.
As a result, several citizen-owned companies have been established in the country supported by individual members of the Botswana Chamber of Mines.
Catalysing Citizen-Owned Business participation in Morupule Coal Mine’s Supply-Chain
“Morupule Coal Mine has embarked on establishing Citizen Economic Empowerment Program (CEEP) offices. This program is underpinned on efforts to deliberately drive import substitution initiatives and that is an ideal Citizen Led Mining Outfit”, said His Excellency Dr. Mokgweetsi Eric Keabetswe Masisi.
To show their commitment to this cause, Debswana Diamond Company and Morupule Coal Mine recently embarked on an inclusive Citizen Economic Empowerment Policy (CEEP) with an import substitution driven by a local manufacturing stream, aimed at increasing local procurement and facilitating the Citizen Economic Empowerment drive. As I conclude, Ladies and Gentlemen, I expect this Summit to generate progressive actions to address issues such as access to funding, access to markets, quality of locally manufactured goods, as well as access to information
Citizen Economic Empowerment requires scalable value, it means you have to have enterprises scalable in order to absorb and have direct jobs. High growth means we need to give our citizens the skill to create products and services with economic impact therefore bringing high growth and impact at the end of the day
Tefo Setlhare – Debswana
