Trade and Investment Promotion-Budget Speech 2009

An extract on trade and investment promotion from Botswana’s 2009 Budget Speech themed “Turning Challenges in Opportunities-Building on the Achievements of NDP9”. The full speech was delivered to the National Assembly on February 2, 2009 by the Honourable Minister of Finance and Development Planning, Honourable Baledzi Gaolathe. 57. Mr. Speaker, we have registered achievements during NDP 9 in the areas of competitiveness, as well as business and investment climate as indicated by improvements in rankings such as the World Bank 2009 Doing Business Report and the World Economic Forum most improved competitor. Building on these achievements, Government will undertake a number of comprehensive reviews and development of new policies, legislation and regulations with a view to enhancing competitiveness in the business and investment environment. In that light, the draft Trade Policy was completed during the 2008/2009 financial year and will be presented to the National Assembly during the July 2009 meeting. The purpose of the Policy is to facilitate smooth integration into the Multilateral Trading System. The review of the Industrial Development Policy will commence during the first quarter of 2009/2010 financial year. The review will identify achievements, challenges and opportunities posed by globalisation in line with the Policy objectives. 58. The implementation of the Industrial Development Act, 2006, and its regulations began in April 2008. Under the Act, processing of licensing activities for small and medium scale manufacturing enterprises was decentralised to 29 District Councils. The amendment of the Act has facilitated the harmonisation of the Industrial Development Act, the Trade Act and Liquor Act, 2003. Guidelines to assist in the registration of micro enterprises falling below licensing requirements will be finalised in March 2009. In another development, Government is finalising the National Export Strategy to be completed in March 2009. Government is also reviewing the Trade Act, 2003, and the Liquor Act, 2003, to improve the processes and procedures for obtaining business licenses. In another effort by Government to curb the abuse of alcohol consumption, the Traditional Beer Regulations are being drafted. This will bring regulation of traditional beer under the ambit of the Liquor Act 59. Mr. Speaker, following the launch of the Copyright and Neighbouring Rights Act in June 2008, a copyright Office was established to monitor the implementation of the Act and the Copyright Society of Botswana was registered as a company limited by guarantee in June 2008. The Company started the sale of the security device or hologram in August 2008 in an endeavour to stop copyright infringements. Government is also developing a Competition Law which will help curb unfair and restrictive business practices. With respect to the Gaming Industry, the preparation of the Gaming and Gambling Bill and the establishment of a self financing autonomous Gambling Authority will be finalised during the 2009/2010 financial year. 60. The Botswana Export Development and Investment Authority’s (BEDIA) strategy to focus on green field investment and encourage expansions is yielding results. Over the last five years, a total of 9 363 jobs were generated with a corresponding level of capital investment of P971 million from both green field investments and expansions. Out of this total investment, P323.4 million was attracted between April and December 2008, creating 2 071 jobs. Starting in NDP 9, BEDIA adopted a new approach which focuses on investor targeting, selling of identified opportunities, emphasising product differentiation and market streamlining. Further, BEDIA has completed feasibility studies for the establishment of a cargo and logistics hub in Botswana, as well as a study that assesses the viability of establishing Botswana as a tertiary education hub. The envisaged investment would bring about skills development that will have a ripple effect on other sectors of the economy. 61. Mr. Speaker, the development of local entrepreneurship will continue through services offered by institutions such as the Local Enterprise Authority. In an effort to develop skills and enhance capacity of our entrepreneurs, LEA conducts a number of business management, marketing and technical training courses. Since inception, 2 771 entrepreneurs have been trained, with 1 548 entrepreneurs in 2007/2008 and 1 223 in the 2008/2009 financial year. To date, 8371 entrepreneurs have applied for the Local Enterprise Authority (LEA) services of which 68 percent (5 725), have passed the screening process and enrolled for LEA services. Out of these entrepreneurs, 51 percent are in the agricultural sector, followed by manufacturing sector which accounts for about a quarter (24 percent) of LEA clients, with the remaining under the services (15 percent) and tourism sectors (10 percent). 62. Following a study on economic diversification of Selebi - Phikwe in 2006, a detailed six-year Medium Term Strategy and financing plan was developed. The Strategy contains a series of actions and projects in and around Selebi -Phikwe aimed at ensuring the viability of the town beyond the life expectancy of the mine in 2013. One of the key elements of the Strategy is the establishment of the Selebi - Phikwe Economic Diversification Unit (SPEDU) to spearhead the implementation of the regeneration programme. A senior official was seconded from my Ministry to set up the Unit and kick-start the process. Meanwhile, efforts are on-going to recruit a Coordinator for the Unit, and it is expected that the officer will be appointed by April 2009, while the project will be launched in early 2009. For the full script of the speech visit: www.gov.bw/docs/2009BudgetSpeech.pdf.