31 Jul 2022

Citizen Economic Inclusion Act, which came into operation on April 20,  requires active participation by both private and public enterprises to contribute to government’s economic transformation and empowerment objective.

Speaking at a Memorandum of Understanding (MoU) signing ceremony between Local Enterprise Authority (LEA) and Farmers United in Gaborone recently, Minister of Trade and Industry, Mr Mmusi Kgafela thus expressed belief that Farmers United was well positioned to help enforce delivery of some of the key functions of the Economic Empowerment office as espoused in the Economic Inclusion Act.

He said the primary objective of the Memorandum of Understanding  bolstered the fact that the cooperating entities were on a journey of providing an enabling and thriving economy by encouraging entrepreneurship and SMME development, particularly in the horticulture sector.

“My hope is that the launch of this partnership will act as a launching pad for the expansion and unbundling of the horticulture value chain, thereby unveiling untapped opportunities that will accelerate government’s efforts to reduce the import bill and attain total food self-sufficiency in the near future,” he said.

He further said since the primary goal of his ministry was to assist in the growth of the economy by fostering a conducive environment for business growth, the formation and success of programmes and initiatives such as the MoU were highly encouraged and supported as they went a long way in complementing government initiatives and empowering local SMMEs.

“To LEA, let me commend you for taking the lead in ensuring that goals of the Economic Inclusion Act are realised because some of the premises of your partnership with Farmers United will contribute immensely to ensuring that economic empowerment programmes are implemented,” he added.

Moreover, Minister Kgafela said some of the initiatives set in the partnership would diffuse the widespread perception that retailers ripped farmers off while retailers on the other hand perceived farmers’ produce to be exorbitant and of poor quality.

“I believe that your interactions will foster meaningful business relationships where farmers and retailers enter constructive procurement partnerships. 

I would like to emphasise the urgency on the part of retailers to work with farmers to set up pricing structures on the crops and harmonise their working relationships in order to uplift the sector for continuous quality food production for consumption within the country and for export,” he said.

For his part, Local Enterprise Authority CEO, Dr Racious Moatshe said recent statistics showed that the country’s demand for food remained a viable market opportunity for producers and other players within the food production value chain.

“Data shows that Botswana imported US$550.779 million worth of food items from all over the world and this constitutes 7.71 per cent of the total import bill,” he said.

Moreover, Dr Moatshe added that recent restrictions on the importation of selected vegetable crops made the country a quick win market, albeit the prevalent challenges inhibiting local production and market penetration.

He said accordingly, agriculture and in particular, the horticulture value chain presented multiple investment opportunities within the innovation and agri-tech industry, where sustainable and efficient solutions remained in high demand to curb production challenges.

“Overall, Botswana’s production stood at 45 per cent of the national demand of its horticulture restricted crops while 55 per cent of the demand is met through imports. 

Thus, to meet the shortfall created by the import restrictions, a 116 per cent increase in local production is urgently required,” he said.

Dr Moatshe said it was against that background that Local Enterprise Authority was pleased to be entering into a partnership with Farmers United and marked one of the first steps toward a competitive horticulture industry with the capacity to stimulate new industries along the value chain.

Meanwhile, United Farmers chairperson, Mr Ratsela Molefe said their aim was to be the country’s first fruit and vegetable national consortium focused on food sufficiency, wealth creation, and active participation in the fruit and vegetable value chain while improving farm projects through robust capacity-building initiatives.

“The MoU aims, among other things, to coordinate efforts and pool resources to guarantee that farmers continue to deliver high-quality food, have better working conditions, receive training, and have access to markets,” he said. Ends