17 Feb 2019

Government appreciates the importance of cultivating a strong business sector in meeting the national development objectives of rapid economic growth, economic independence as well as sustainable development, says Tati West MP, Mr Biggie Butale.

Debating the 2019/2020 budget proposal, Mr Butale said Botswana needed to promote industrialisation by accelerating economic transformation from the primary sector to advanced manufacturing and services in order to achieve economic diversification.

He said cultivating a strong local business sector had numerous benefits for local economies and citizens since money spent at local businesses stayed in the economy much longer.

He noted that such recognition would be a bold step for a nation whose citizens had always depended on formal sector employment and government support in times of natural crisis such as droughts.

He said under those bleak economic conditions, the country’s manufacturing sector had over the years received preferential treatment from government, both in terms of targeted policy and financial support, but that the sector had consistently failed to perform to expectations.

The industrial sector, he said, continued to struggle to make a significant impact in terms of contribution to the GDP as well as employment, adding that more was needed to promote industrialisation in Botswana.

He said there were many untapped opportunities that Botswana could benefit from, including establishing the country as a regional transport hub.

“Botswana is strategically located in southern Africa and is poised by its political and economic stability to become southern Africa’s transport regional hub,” he said.

Furthermore, Mr Butale, who is also Assistant Minister of Health and Wellness, highlighted that one of the most prominent national strategies for realising income redistribution and social justice was through government support for small and micro-scale enterprises.

He emphasised the importance of Small, Medium and Micro Enterprises (SMME’s) in the economy, highlighting that they were fundamental to employment generation and economic diversification.

Mr Butale pleaded with government to safeguard local entrepreneurs and strengthen import restriction regulations as a way of ensuring that locally produced goods got first preference at some national retail chain stores.

He said it was disappointing that some national chain stores had signed obligatory contracts with franchise license holders to only procure goods from recommended franchise suppliers who in most cases were from foreign countries.

Notwithstanding the importance of free trade across nations, Mr Butale said it was economically viable for communities to source a large portion of their requirements locally as imports increased the reliance of the country’s economy on other nations.

He said local businesses were more likely to support their communities through charitable contributions and civic involvement. ENDS