09 Feb 2022

Provision of infrastructure is essential as it creates a conducive environment for economic development and efficiency.

Speaking during a First National Bank budget review session in Gaborone Tuesday, Ministry of Investment, Trade and Industry chief negotiator, Mr Phazha  Butale said infrastructure development played a key role in facilitating trade.

Improved road network, air transport, railways and logistics, he said, would result in increased trade flows that would in turn lead to economic growth, he said.

Mr Butale said government investment in Information  and  Communications  Technology  (ICT)  infrastructure was  poised to  have a positive trade effect on both exporters and importers.

Saying infrastructure development was also key to the attainment of export-led economic growth, he therefore welcomed  investment in the construction of the Kazungula Bridge and the planned A1 Road extension.

“The road, rail and aviation networks should be of certain standards to facilitate trade, thus it is commendable that government invested in the construction of the Kazungula Bridge and the proposed extension of  the A1 Road which is a welcome  development to enhance trade and exportation of goods,” he said.

Such infrastructure developments, he said, were legacy projects as they would have a lasting impact on  economic growth.

Mr Butale said infrastructure development should not rely solely on government self-capitalisation but should allow for private sector participation.

"The involvement of the private sector in the infrastructure development drive will serve as a true example of Public Private Partnership (PPP) which is a way of delivering key infrastructure projects at less cost to the state," he said.

Mr Butale said there was a huge potential for industrial growth in Botswana due to the new free trade market in Africa.

The African Continental Free Trade Agreement (AfCFTA), in line with the Boosting Intra-Africa Trade (BIAT) initiative, aimed to position Africa as the new frontier for world economic growth, he said.

"Intra-Africa trade currently stands at only 15 per cent," Mr Butale noted adding that AfCFTA  presented the greatest opportunity for Africa to realise its aspiration of a united and prosperous continent.

The agreement, he said, provided huge opportunities for development in the areas of industry, infrastructure and market liberalisation while also providing an avenue for the flourishing of trade in services.

Through AfCFTA, local importers would have access to cheap inputs in the form of raw materials which could turned into finished products for export to the rest of the continent which boasts a population of about 1.3 billion people, he said.

Mr Butale said Botswana’s geographical position in Africa  presented it as a suitable hub for provision and distribution of both goods and services. 

In addition, he said  the country  was strategically positioned to transform into a transport logistic hub for both Southern and Central Africa. 

Cognisant of Botswana’s small population, he said local manufacturers should strive to penetrate foreign markets in order to maximise profits.

Mr Butale also challenged local entrepreneurs to position themselves for market integration.BOPA