02 Jun 2013

The trade deficit in Botswana remains a concern, which must be seen as a clarion call to the private sector to assist government in diversifying the economy, says Botswana Telecommunications Corporation (BTC) chief executive officer, Mr Paul Taylor. 

Speaking at the official opening of the Botswana Confederation of Commerce Industry and Manpower (BOCCIM) Northern trade fair on May 31 in Francistown, Mr Taylor said in 2012, trade imports stood at P61.3 billion. This, he said, represented year on year growth of 23 per cent versus  trade exports of P45.5 billion at 14 per cent, which left a cumulative deficit of P15.9 billion.               

Therefore, he said there was need for the private sector to come on board and assist government in creating a truly private sector led economy. He highlighted that government had demonstrated its commitment in developing a business enabling eco-system, in which citizen entrepreneurs and overseas investors could build businesses through different policies.

In addition, he pointed out that through working together in the form of Private Public Partnerships (PPPs), significant opportunities could be enhanced and intended goals could be achieved. “We must rise to the challenges if we are to defy the global economic trends and deliver on these win-win opportunities,” said Mr Taylor.

He further explained that in an economic report for the first quarter of this year, the economic data released provided a mixed picture for the country’s economy. The overall economic growth rate for 2012 came out at 3.7 per cent, significantly below the 6.1 per cent recorded in 2011, he noted.

He explained that it was because traditional drivers of the economy such as the mining sector slowed down greatly, also noting that several other sectors including manufacturing, government construction, water and electricity also showed a slower growth last year than in 2011.

“This outcomes, calls for us to harness the skills, capabilities and resources of our country so as to encourage efficiency, drive innovation and maximize diversity so as to be  in a better position to compete on the international stage as well as focus on the made at home –used at home model,” he said.

 Mr Taylor said Botswana should aim to curb the country’s high import bill, whilst selling more to the world market, adding that private enterprise contribution to economic growth, job creation and social development is critical.

He added that in an increasingly borderless world the country could nott settle for “good enough” but should rather strive for world class performance. He nonetheless stressed that the world class approach model to goods and services produced locally also applied to the government entities and parastatal organizations, so that together they drive the economy on the same platform. ENDS