10 Nov 2015

The government’s top priority is to reduce unemployment and underemployment, says President Lt Gen. Seretse Khama Ian Khama.

 He said the Economic Diversification Drive (EDD) remains a key instrument for creating jobs as well as stimulating the economy. 

Opening the second session of the 11^th Parliament on Monday, President Khama said since its inception in 2010, the EDD had been facilitating employment generating business opportunities by leveraging public procurement in support of domestic industries with additional support for youth entrepreneurs. 

That, he said, had resulted in the purchase of P17.98 billion worth of goods and services, including P1.1 billion for the first quarters of 2015/16 financial year.  He said the number of EDD registered companies stood  at 1 425 which collectively contributed to the employment of over 40 000 Batswana. 

President Khama said to further facilitate local production and consumption, all of government, including local authorities and parastatals had been directed to purchase locally produced goods from locally based manufacturers, service providers and agricultural producers. 

He said procuring entities could only procure products from outside the country where there was a need, and only in exceptional circumstances where justification was given. 

President Khama said the government has adopted an accelerated programme for job creation focusing on key areas that have a high potential for labour intensive economic growth. 

“In addition to EDD and the ESP targeted areas of agriculture, tourism and infrastructure, our efforts to stimulate the economy will be given additional impetus through the establishment of Special Economic Zones (SEZs) as geographically defined economic areas providing investor friendly business environments. 

President Khama said a Special Economic Zones Authority would be established to oversee the SEZs, which in turn would facilitate private sector growth through the creation of value added economic opportunities generated by local business synergies. 

He said industries expected to evolve in such areas included light manufacturing, applied ICT, energy and mineral beneficiation, pharmaceuticals, financial services and agro business and food processing. 

President Khama said a SEZ for Kasane would, for example, cater for expanded tourism, construction, transport services and market access for local agriculture that would result from the construction of the road and rail bridge at Kazungula and the water pipeline to Pandamatenga, along with associated infrastructure. 

“Additional SEZs will enhance already ongoing developments, such as Selebi-Phikwe’s transformation as a metallurgical hub, the expansion of the financial and innovative technology services in Gaborone. Francistown’s projected growth as a nexus for trade and transport and the establishment of the leather park at Lobatse among others,” he said. 

President Khama said since job creation was linked to investment, Botswana International Trade Centre (BITC) continued to promote the country as a competitive location for investment. 

During the 2014/15 financial year,  he said BITC helped realise a total combined capital of just over P3.2 billion, which contributed to the creation of 3 316 jobs. 

Furthermore, President Khama said the government’s job creation efforts were also driven by the Rural Development Council (RDC), which continued to promote various community based projects such as the Mogobane Irrigation Scheme. 

Other projects include the construction of a multi-species abattoir in Tsabong, an agro-processing plant in Selebi-Phikwe and the Phuduhudu Cultural Village in the Kgalagadi District. 

“Business start-ups will also continue to receive critical support from the Citizen Entrepreneurial Development Agency (CEDA), which since 2008, has funded over 2 000 enterprises with a total value of nearly P2.1 billion in the process creating over 11 000 jobs,” he said. Ends