31 Jan 2017

The extension of the African Growth Opportunity Act (AGOA) has increased the business opportunity for Botswana business community.

AGOA, which seeks to facilitate trade between African countries and the United States of America, recently extended its agreement on trade with Africa by a further 10 years.

In an interview with one of the local entrepreneurs involved in the exporting business, Ms Leakanyeng Gakesolofele, it came into light that the new trade agreement came at the opportune time when her business was thriving.

Ms Gakesolofele, who started her business in 2001primarily focusing on supplying ornaments to local tourism businesses, said in recent years her business has grown from strength to strength and it has now spread its wings to such countries as Kenya.

She however stated that it was through her business in Kenya that she was able to export to the lucrative USA market and encouraged local dealers to do the same.

Ms Gakesolofele said she got to realise that there was actually competition within African countries for the market and therefore encouraged business people to bear that in mind and strive for better services as it was the only way to survive competition.

She said she was amazed at how goods from Africa had penetrated the international market and got appreciated by customers.

Ms Gakesolofele encouraged local business people to partner with other Africans as this had helped her to finally export to the lucrative US market.

Ms Gakesolofele said her profits were satisfying since the new trade agreement came into force. She said the agreement gave her opportunity to interact more with her buyers in the US.

She further pointed out that the increase in the trade items presented further opportunity for more Botswana traders. The new trade items include footwear, luggage, handbags, watches as well as certain automotive items, which represented all industries in Botswana ranging from mining to tourism.

She further encouraged those with vocational skills in craft work to make use of their God given talent and export their products to the US. Ms Gakesolofele however warned that dedication and a thorough job were key to a successful exportation.

She also said it was disappointing that currently there were only two companies that were exporting under AGOA out of 13 companies that were registered initially, and that had led to Botswana experiencing negative trade balance.

“I think Botswana manufacturing firms are at an advantage to benefit through the AGOA and this applies to all those who sell ornaments along roadside. This gives them the advantage to now export those to the more lucrative US market, so Batswana must take this more seriously,” said Ms Gakesolofele

Meanwhile, the acting senior business affairs officer of Botswana Tourism Board (BTO), Mr Mothusi Ketsholang has also expressed a keen interest in assisting with the marketing aspect of Botswana companies.

He however cautioned that for a country to be considered for AGOA a number of aspects were considered and therefore entrepreneurs must take such into consideration.

He said Botswana has a good track record in being one of the least corrupt countries where the rule of law still exists. Mr Ketsholang said combining that with a good political background as well as respect for human rights gives Botswana a fair advantage on the AGOA market and therefore Batswana must aim high.

“Exporting goods to a foreign market is very crucial. Botswana has always relied on foreign exchange for earning money, therefore it is heart-warming to see some Batswana making effort in the export market, and we will stand by them all the way.” said Mr Ketsholang.

He however cautioned that entrepreneurs must make sure that they abide by all laws associated with the AGOA as this would make their trade much easier and avoid being cheated.ENDS