21 Mar 2023

Ministry of Trade and Industry is reviewing the National Investment Strategy (NIS) with the aim to increase Botswana’s attractiveness as an investment destination of choice.

Trade and industry minister, Mr Mmusi Kgafela revealed this when presenting budget estimates for the 2023/2024 financial year in Parliament on Monday March 20.

Minister Kgafela said the strategy review was expected to be complete by the first quarter of the 2023/2024 financial year.

He said at the heart of the NIS was Botswana’s business case for boosting domestic productive capacity, attracting new investment flows, transitioning to more innovative and sustainable investment as well as change in investment mindset.

He indicated that in collaboration with EU and SADC, trade and industry ministry had made commendable strides in implementing the Job Creation and Investment programme.

“One major deliverable of the programme was the baseline study report on Doing Business and Investment Climate in Botswana. 

The main outcome of the report is the need to develop Investment Law,” he said.

In order to make the country’s goods and services globally competitive, Mr Kgafela said the ministry had developed the National Quality Policy with the aim to increase market access for Botswana products both locally and abroad.

He added that strides had been made in promoting economic diversification through development of strategic industry support infrastructure and facilitate ease of doing business and integration to regional trade.

“In line with government’s efforts to promote an export-led economy, the ministry will continue to come with interventions to facilitate export development and investment promotion,” he said.

He added that notable progress had also been made in the implementation of the Special Economic Zones (SEZs) reform with respect to the development of enabling legislative framework.

To date, Mr Kgafela said Special Economic Zones Authority had licensed nine investors in the mineral beneficiation, automotive, Information and Communication Technology, renewable energy, manufacturing and agriculture sectors.

In addition, Mr Kgafela said Botswana Trade Commission (BOTC) was in the process of being reviewed in order to broaden its mandate to be in line with national interests in relation to industrialisation, export-led economy and economic diversification.

“The review also seeks to enable BOTC to administer instruments such as tariff changes, trade remedies, rebates and duty drawbacks, which will improve productive capacities of industries,” he said.

On the budget estimates for the next financial year, Mr Kgafela said under recurrent budget the ministry would require over P582m and over P46.6m for the development budget.

Under the development budget, he said funds would go towards development of SEZs and construction of the 30-km Mathathane-Plaatjan border road, which was expected to be completed in September 2026.

Strategic industry support structure projects include the construction of 12 grain storage silos, each with the capacity of 5 000 metric tonnes at Pandamatenga SEZ. 

Mr Kgafela said the projected was expected to be completed this month.

He said the design and land servicing of the first phases of Francistown and Lobatse, together with designs and upgrading of the fairgrounds SEZ would commence in the next financial year.

Additionally, Mr Kgafela said the engagement of a transactional advisor would, among others, assist the SEZA in identifying appropriate Public Private Partnerships model for infrastructure development for the nine SEZs countrywide. Ends