16 Jul 2014

Botswana is advocating for the extension of African Growth and Opportunity Act (AGOA), permanent secretary in the Ministry of Trade and Industry, Ms Banny Molosiwa has said.

AGOA, which was signed into law by President Clinton in May 2000 with the objectives of expanding US trade and investment with sub-Saharan Africa, to stimulate economic growth, encourage economic integration, and facilitate sub-Saharan Africa’s integration into the global economy, expires in September 2015. 

Responding to a questionnaire, Ms Molosiwa said they were anticipating that more local companies would benefit from AGOA. She noted that her ministry in collaboration with other stakeholders such as Southern Africa Trade Hub (SATH) held yearly consultative forums in Francistown and Gaborone to sensitise the industry about AGOA since its inceptions.

“This is an on-going exercise despite the challenges associated with AGOA, therefore efforts have been made to sensitise the local investors even during monitoring exercises of industries around the country.”

Also, Ms Molosiwa said initiatives were being pursued to help improve the local industries capacities.

The programmes include Private Sector Development Programme (PSDP) which is jointly supported by the European Union, the Centre for Development Enterprises, the Chanel foundation and Botswana government.

She noted that the programme aimed at stimulating and sustaining growth through diversification of the economy, while building the capacities of institutions and human resources that support the private sector.

“The programme was launched on May 23, last year and will run for three years until 2016. About 100 entrepreneurs will benefit from this programme,” she said.

Another initiative includes the Textile and Apparel Strategy, meant to drive the industry to utilise production management system in order to be efficient and effective and also to develop a competitive and sustainable clothing sector.
The strategy, she said, is anchored on six main strategy pillars which include developing a globally competitive textile clothing sector as well as increasing domestic, regional and international market share for Botswana textile industry and clothing.

The strategy is also meant to increase innovation and creativity in the textile and clothing sector as well as to promote entrepreneurship in the textile and closing sector.

 It will further improve textile and clothing businesses access to finance as well as improve quality of clothing products and services.

Ms Molosiwa stated that there was an initiative called Tokafala in which  Botswana government partnered with Anglo American to  develop local supply chain opportunities while targeting high growth potential SMMEs.

“It will support up to 600 micro enterprises, 445 small enterprise and nine to 15 medium enterprises. It will also sustain 5 800-6 000 jobs, while creating 400 new jobs,” she said.

Ms Molosiwa said the programme would assist in building capacity of government enterprise development institutions to improve their mentoring quality and quantity.
“A pilot programme commenced in July 2013 and ended November 2013, while the formal programme started in January 2014 and will run for three years,” she said.

Botswana, she said, is implementing three strategies on leather, dairy and textile and apparel of which the products are within AGOA eligible list. ENDS