07 Mar 2017

Minister of Investment, Trade and Industry, Mr Vincent Seretse says the reservation policy has had significant impact on the retail sector and has opened opportunities for citizens to participate in the retail sector such as bakery and fresh produce, which have been the domain of chain stores. Responding to a question from Specially Elected MP, Ms Bogolo Kenewendo recently, Mr Seretse said the policy had made it possible to reserve certain trade activities for citizens or companies wholly owned by citizens.

He said reservation of such trades was premised on the fact that they were easy to operate and do not need technical expertise, special technology and special skills. Some of these activities, he said included general dealer, general clothing, fresh produce, bakery and hair and beauty parlours. He explained that the economic growth of the country was sustainable when driven by its own citizens. That, he said, resulted in development of entrepreneurial skills and consequently improvement of people’s wellbeing.

The minister also indicated that profit generated from reserved business activities was re-injected into the economy, hence it reduced leakages of income out of the country. Further, he said reserved businesses under the Economic Diversification Drive included manufacturing, services and agricultural production. He said procurement from producers in such sectors would in the medium to long term lead to their competitiveness, which would encourage retail sectors currently dependent on imports to source products locally.

MP Kenewendo had wanted to know the impact of the reservation policy in the retail sector on the Botswana economy. ENDS