18 May 2022

Government is resolute in developing SMMEs as an engine for economic growth as demonstrated by the establishment of a new ministry, Assistant Minister of Trade and Industry Ms Beauty Manake has said.

Addressing the 5th Prosperity Africa Small Businesses and Exporters Conference in Gaborone on Tuesday, Ms Manake noted that the new ministry would focus on the development of entrepreneurial development policies for SMMEs.

“The recent rationalisation of government machinery has resulted in the new Ministry of Entrepreneurship mandated to coordinate all entrepreneurial development initiatives which included rendering support to SMMEs to benefit from the Africa Continental Free Trade Area (AfCFTA),” she said.

She said AfCFTA provided an opportunity for Small Macro Medium Enterprises (SMMEs) to grow and have a significant impact on the future of Africa, further noting that the full implementation of the agreement would enable SMMEs to be the catalyst of healthy industrial development.

“It is clear that with supporting policies and relevant interventions SMMEs can contribute significantly to economic diversification efforts, especially for African countries whose dominant mining sector often comes up with capital intensive productions,” said Ms Manake.

Ms Manake said it was government belief that a well-crafted AfCFTA would generate new opportunities for business, SMMEs in particular.

She said though having signed into AfCFTA in 2019, the country had not yet ratified the agreement as it was currently dealing with issues of trade and goods that were critical for the implementation of the trade agreement in order to have tangible benefits for its economy.

“We had to define areas where we have capacity and capability as we join the African market.

Some of the local products and services that the country could export to the continent and the rest of the world through AfCFTA included vaccines for veterinary services, organic fertilizers and vegetables from the agricultural sector, small stock and salt,” said Ms Manake.She said SMMEs as the heartbeat of market economies could only thrive and contribute to Africa’s radical economic transformation through support from the private sector.

The three-day conference organised by the Pan African Chamber of Commerce and Industry (PACCI) in collaboration with the Association of SADC Chamber of Commerce and Industry (ASCCI) Business Botswana was to provide SMMEs with a platform to facilitate trade under the Africa Continental Free Trade Area (AfCFTA).

She thus noted that the event was aligned with government’s commitment to diversifying the economy, given its objective to grow SMMEs and expand their market base in Africa.

Ms Manake said the conference came at a time when small businesses in Africa were returning with renewed robustness from the aftermath of the COVID-19 pandemic to rebuild prosperity in all sectors of the economy.

Additionally, she said the conference came at a time when Africa was getting ready to gain access to over 200 million markets under the AfCFTA.

She said government efforts to develop and diversify the economy were complemented by long term partnerships with the private sector bodies such as Business Botswana. 

The Assistant minister advised that participating in the AfCFTA required careful planning, hard work and the ability to follow through during tough times.

She said expanding access to market opportunities for small businesses through AfCFTA was one of the most precious business investments for the continent.

Furthermore, Ms Manake said SMMEs in collaboration with Business Botswana would launch a market intelligence information system which currently had over 3 000 registered participants.

“We believe this is where we are going to enable and grow SMMEs as market information will be available, which is among challenges faced by small businesses,” said Ms Manake.

Moreover, she commended PACCI for supporting small businesses, especially those starting up across the continent.

“We hope this will be a catalyst to unlock markets in Africa and beyond for small businesses,” she said. ENDS