14 Apr 2014

Backward and forward linkages in any economy occur when output from one economic sector or industry is used as an input to another, Parliament has been informed.

Acting Minister of Youth, Sports and Culture, Mr Vincent Seretse stated that the concept defined flows of goods and services between industries and sectors of economy.

Hence by definition, he said, sectors with strong backward and forward linkages were those that played a major role in the development strategy of a country. In Botswana, such sectors included agriculture, mining and tourism.

The acting minister said he did not feel that it was appropriate or correct as implied that there are no backward and forward linkages in the domestic economy.

Mr Seretse stated that output in the agricultural sector was used as input in the manufacturing sector such as in the production of maize or sorghum meal, baby food products such as Tsabana, canned beef as well as chicken and livestock feed.

He noted that such strong linkages would also see the development of the planned Leather Industry Park as well as transformation of the dairy industry into a viable and commercial industry creating export demand for the agricultural sector and employment for the rest of the economy, particularly the rural populace.

Mr Seretse further indicated that other strong linkages were between the mining sector and other economic sectors, such as the relocation of the Diamond Trading Company from London to Gaborone which has seen the development of diamond cutting and polishing industries.

The value added from these has spin-off effects in to the rest of the economy particularly through investment in sectors such as education and transport and communication, all of which in-turn enhances efficiency of the mining sector.

Similarly, he said the tourism sector was linked to the service and transport sectors impacting positively in the rural communities in terms of employment creation.

Mr Seretse said it was in this context that it was believed that there were adequate strong backward and forward linkages between different economic sectors and or industries in the domestic economy.

He noted that what was perhaps needed was for the private sector and individuals, to effectively exploit such linkages with a view of enhancing economic growth and individual livelihoods.

The Acting Minister was answering a question from MP for Selebi Phikwe West, Mr Gilson Saleshando who had wanted to state the reasons why it was difficult to have better backward and forward linkages in the domestic. Ends