02 May 2022

 There is need to invest in higher productivity sectors and activities including productive infrastructure and digital transformation.

Senior policy advisor in the Ministry of Finance, Dr Keith Jefferies said this at the Absa Bank Botswana fourth annual economic outlook forum in Gaborone recently.

 Dr Jefferies also highlighted the importance of  using export-led growth to drive productivity, rationalise state owned enterprises (SOEs), business environment reform, green transition and financial sector development.

Dr Jefferies also called for diversification of exports in Botswana given that there was little and external imbalance as a result of slow progress with export diversification.

“I foresee crisis for Botswana if continuity of lack of diversification and export growth remains,” he said.

He added that it was also no longer viable for Botswana to keep on relying on diamonds because they had been, especially now, affected by the Russia-Ukraine conflict as well as the COVID-19 pandemic.

Still at the same event, Entrepreneurship Minister, Mr Karabo Gare commended Absa Bank Botswana for recognising and valuing the wider stakeholders on investment matters.

It was through such sessions that pertinent market analysis from industry leaders were obtained to resuscitate and build a resilient economy post COVID-19 pandemic, said Mr Gare.

The minister also hailed the partnership between Absa Bank Botswana which began when government developed the Economic Diversification Drive Strategy which focused on building a private sector and export led economy.

He said the bank continued to maintain such partnership as it continued to partake in the supplier development programme, a component of the Economic Diversification and Inclusive Growth portfolio under the United Nations Development Programme (UNDP) partnership with Botswana.

Further, Mr Gare ackowledged the Absa Botswana partnership with implementing agencies such as Local Enterprise Authority (LEA), saying that gave hope to Small Medium and Micro Enterprises (SMMEs) that had decried lack of access to finance.

Mr Gare said the economic outlook forum, held under the theme ‘Accelerating Transformative Investments in Botswana’ spoke to the core of the mandate on the Ministry of Trade and Industry.

“My ministry is mandated to drive development of sustainable industries and trade and that could be achieved through accelerated transformative investments in Botswana as the theme details. The importance of economic diversification and structural economic transformation is no longer an issue for debate,” he said.

He added that the forum discussions therefore would support the completed and ongoing reforms towards building a conducive business environment to position Botswana as an investment destination of choice.

Mr Gare further said Botswana was committed to ensure sustainable and impactful investment that would contribute to Botswana’s transformation from an upper middle income country to a high income country by 2036.

However, he indicated how the COVID-19 pandemic had amplified the urgency for economic diversification in Botswana and therefore called all the economic forums to be competitive.

He said government had developed relevant policies and strategies to accelerate and aid rapid recovery from COVID-19 as well as insulate against future fragility.

He added that Absa Bank Botswana was aligned to government priorities of attracting quality foreign direct investment to achieve job creation and sustainable economic growth.

“COVID-19 has taught that business could not be done as in the olden days. A lot of businesses have gone digital as they continue to transform the economy through different sectors, innovative and creative ways, adding that businesses need support through both private and public sector reforms,” he said.

Accelerating transformative investment, he said therefore remained critical in unlocking opportunities across all sectors for sustainable industries.

Meanwhile, the economic outlook forum brought together industry leaders, government stakeholders, policy makers to look into expectations for the year. ends