17 Oct 2022

Delegates to the Business Botswana national conference have been called upon to raise their company productivity levels to keep inflation in check.

An environment of high productivity and low and stable inflation would pave way for Botswana to achieve high-income status, President Dr Mokgweetsi Masisi said in Francistown yesterday.

He told the delegates that they were also expected  to contribute to policy review and the regulatory environment.

In addition, they should propose new and transformative reforms to promote trade and investment in Botswana and beyond, said Dr Masisi.

Highlighting some government initiatives, the President mentioned the promulgation of the Economic Inclusion Law seeking primarily to promote effective participation of citizens in the economy.

Another initiative was the development of special economic zones focusing mainly on manufacturing, including diversification of the diamond industry to make the country Africa’s diamond hub, he said.

President Masisi said the zones would enable Botswana to take full advantage of the African Continental Free Trade Area which presented huge opportunities for business growth.

He described the two-day biennial conference as a perfect platform to deliberate on ways of transforming Botswana from an upper-middle-income country to a high-income one as well as on economic recovery post-COVID-19.

“This conference is a true reflection of our quest for inclusivity in our endeavour to promote a private sector-led economic recovery and growth,” said Dr Masisi.

He noted that Botswana was grappling with the downside of the restrictive measures implemented to fight the COVID-19 pandemic.

One such effect was global supply chain bottlenecks which he said had led to delays in the delivery of inputs for production.

The President said the Russia/Ukraine war, which resulted in  skyrocketing prices for fuel, transportation, food and other commodities exacerbated the situation.

 The cost of living shot up  while inflation reached an all-time high of 14.6 per cent in August, he said.

In an attempt to cushion Batswana against soaring inflation, President Masisi said government moved with speed and reduced Value Added Tax (VAT) by two per cent for six months and also exempted liquefied petroleum gas and cooking oil from VAT for the same period.

“An increase was also made on student allowances and old age pensions to cushion the beneficiaries against financial squeeze,” he stated.

 The President said government also extended financial assistance to Botswana Meat Commission to enable it to pay farmers and other suppliers on time.

For his part, Masawara Holdings group chief executive officer, Mr Shingai Mutasa said the onus was on both government and the private sector to work towards revamping and building a strong economy.

He said the conference helped re-energise synergies between government and the private sector, especially after a two-year hiatus due to the COVID-19 pandemic.

“The theme; Roadmap to High Income, Accelerating Transformation, calls on us to re-tool ourselves so that we will be able to stand when a phenomenon such as COVID-19 comes,” he said.

 Mr Mutasa said the special economic zones initiative,  alongside the Reset Agenda, would propel Botswana to greater heights. BOPA