18 Dec 2019

Minister of Investment, Trade and Industry has called on the private sector to participate in the Economic Diversification Drive (EDD) by purchasing more locally manufactured products.

The EDD initiative was introduced by government with the aim to diversify the economy by developing more sectors, such as the manufacturing industry, so that they could contribute more meaningfully to the Gross Domestic Product (GDP).

Speaking during the tour of Flo-Tek plant in Lobatse on Tuesday, Ms Peggy Serame expressed concern that many local companies continued to shun locally manufactured products.

“When we started EDD they (private sector) were supposed to also have a role to play through something that is measurable and can be monitored. But I think that has been lacking for some time. We need to engage with them and see how we can move forward and ensure that the private sector also play their role in terms of supporting local industries,” said the minister.

She said the manufacturing industry in Botswana would develop further if it received deliberate support from the local market.

“We have been aware of some of the challenges and continue to engage. Specifically there are a number of ministries with very big government projects that we are going to engage to ensure that they also buy products available locally,” she added.

Ms Serame further said she would open for discussion the issue of private sector participation in the EDD in her future meetings with private sector organisations.

“I am yet to have my first meeting with them, so these are the issues we can discuss,” she said.

Ms Serame’s comments came after Flo-Tek Managing Director, Mr Vijay Naik pleaded with government to do something to help local manufacturing industries gain more access to the market in Botswana.

Flo-Tek is the largest producer of plastic pipes and fittings for plumbing in the Southern Africa region. The company also produces irrigation systems.

Last year, the company launched its latest plumbing solution, the Chlorinated Poly Vinly Chloride (CPVC) pipes which are used for both hot and cold water applications.

Mr Naik said the product had so far struggled to penetrate the local market.

“CPVC is the product that is replacing copper and is used for hot and cold water.

 We have world class facility here in Lobatse to produce this product and world class laboratory which is going to support the quality assurance of the product. But I am very disappointed to express today that we have been knocking on doors only to get disappointments. People are not willing to get this product and I don’t know why. My request to the honourable minister is to put together a plan which can support EDD in an industrial way because we want to manufacture products that are useful to local projects,” Mr Naik said