02 Nov 2022

Afreximbank is determined to assist Botswana develop its manufacturing and export sector, its president and board chairman has said.

Professor Benedict Oramah, who was paying a courtesy call on President Dr Mokgweetsi Masisi on Tuesday, encouraged government and the private sector to take advantage of its financial services to fast track the development agenda.

“We are here by invitation to officiate at the global expo,” he said. He said one of the bank’s local projects was the ongoing expansion of Lucara Diamond Company’s Karowe Mine in Letlhakane.

Prof. Oramah said the bank was currently financing the development of industrial parks across  Africa explaining; “Countries give us land. We bring in investors into the industrial parks. We are aware that your country has interest in venturing into the automotive industry.”

In an interview post the courtesy call, Assistant Minister of Trade and Industry  Ms Beauty Manake said since the bank’s establishment in Botswana some 29 years ago, the country had not actively participated in its activities nor taken advantage of the partnership.

 “The country has not participated satisfactorily to enjoy the benefits of its membership. Therefore the visit by the president of the bank, Prof. Oramah, is a positive development as he is here to assess our development agenda and identify opportunities to tap into,” said Ms Manake.

She said judging by the support other member states had been getting from Afreximbank, Botswana had to some extent delayed its development agenda by not engaging the bank. 

Support from the bank would give new impetus to the country’s economic diversification efforts, said the assistant minister.  

Ms Manake said Botswana’s main interest was investment in the mining and agricultural sectors.

With regard to mining, government wanted to see locals  getting loans from the bank  to  invest in mining-related projects, she said. 

Noting that the bank had an agreement with World Food Programme on the provision of food relief to nations in need, Ms Manake said Botswana was in a position to take advantage of the accord.

“As a nation, we have the land, the knowledge and the capacity to produce food at locations such as Phuduhudu, Mosesedi and Pandamatenga and therefore we could produce enough food and sell surplus to supply the World Food Programme,” she said.

According to the assistant minister, another sector ripe for private sector investment was the said telecommunications industry. 

“The bank has a big portfolio in financing among others the development of the creative arts industry, infrastructural development. Our interest as the ministry is to facilitate trade. We have increased commodities in the product space that were being sold to other countries such as copper and coal that will require the development of railway networks in order to reach the export market,” she said.

Saying infrastructure challenges hindered the country from taking full advantage of the high demand for coal internationally, the assistant minister called on the private sector  to collaborate with government to develop railway networks for transporting the product to market.

Ms Manake said since budgetary constraints were an impediment to the execution of Botswana’s development agenda, it was critical that the country established partnerships with the private sector.

The private sector was an important partner and therefore must be encouraged to lead the country’s development from the front, she said.

Botswana, she said, was ready to facilitate investors who were willing to set up business in the country. 

Ms said while  Botswana Investment and Trade Centre was traversing the globe to lure in investors, Special Economic Zones Authority was establishing special areas where they would be allocated land to set up businesses.

The assistant minister said in addition, the legislative framework was continually being reviewed to create a conducive environment for business.

Prof. Oramah will be the guest speaker at the ongoing Global Expo which brings together countries and local as well as international entrepreneurs to share business ideas and identify areas for investment.

“We are currently working on signing and finalising African Continental Free Trade Agreement and therefore it is important to understand what one another was doing,” said Ms Manake. ends