27 Aug 2024

Over the past 55 years, Debswana has been more than just a diamond mining company but a vital partner in the country’s economic development. 

Speaking at the 17^th National Business conference networking dinner in Francistown on August 26, Debswana managing director, Mr Andrew Motsomi said their journey had been characterised by the creation of value not only from the diamonds the company mines, but also by empowering fellow citizens to participate meaningfully in the economy. 

“One of our flagship initiatives is the Citizen Economic Empowerment Programme (CEEP), through which we have generated thousands of jobs and opened significant opportunities for Batswana. This programme is at the heart of our commitment to deepening private sector participation,” he added. 

Mr Motsomi explained that prioritising local businesses in procurement processes and fostering entrepreneurship had enabled Batswana to take ownership of their economic future. 

He said the success of the CEEP was evident in the diverse range of local enterprises that had grown alongside Debswana. 

The managing director explained that from mining services to logistics and catering, Debswana had seen a flourishing of citizen-owned businesses that were not only creating jobs but also contributed to the resilience and diversification of the economy. 

“These businesses are vital links in the value chain, and their growth strengthens Botswana’s position in the regional markets. Despite the success of our CEEP, I would be remiss not to acknowledge the emerging challenges we face, such as the sustainability of our suppliers, primarily due to an over-reliance on Debswana as a customer,” said Mr Motsomi. 

He said the situation called for the private sector to invest in value chain development to ensure sustainable businesses and greater value addition. 

He also noted that it was also evident that there were instances of potential fronting by citizen entities, which included ceding in and delegating contracts without Debswana’s consent, particularly to non-citizen entities. 

Additionally, he said, there were employee welfare concerns, such as poor labour relations, inadequate remuneration, and the failure of suppliers to recognise organised labour. 

Mr Motsomi said it was important that the programme was based on principles of competition and merit, adding that Debswana had noticed attempts by its business partners to exert undue pressure on the Debswana management and employees, particularly after losing tenders. 

“This is unfortunate and does not reflect the professional conduct we expect from our partners. We believe these issues are not insurmountable and we continue to work with our business partners to address them, fostering more sustainable private sector participation within our value chain,” he added. 

As Debswana, he said they looked to the future, one of the critical pathways to sustainable economic growth lies in the development of value chains that enhance export capabilities. 

Mr Motsomi said Botswana was richly endowed in natural resources, but to truly harness and extract the potential of these resources, Debswana must focus on value addition. 

“At Debswana, we have long understood the importance of moving beyond raw resource extraction. Our commitment to the diamond beneficiation process exemplifies how value can be added within our borders, creating skilled jobs, driving innovation, and increasing our export revenues,” he said. 

This approach to value chain development, he said, should be extended across various sectors of the economy, from agriculture to manufacturing, to ensure that Botswana’s exports were not only competitive but also diverse. 

“By investing in value-added industries and encouraging citizen participation in these sectors, we can create a more robust and sustainable economic model. This will not only generate wealth within our borders but also position Botswana as a key player in the global market,” he said. 

On other issues, Mr Motsomi said in alignment with the Mindset Change initiative and Vision 2036, Debswana was committed to fostering a culture of innovation, self-reliance, and global competitiveness. 

“We believe that by embracing this mindset change, we can achieve the goal of transforming Botswana into a high-income country with a prosperous and inclusive economy,” he remarked. 

He said as Debswana celebrates 55 years of partnership with the people of Botswana, the company was fully aware that the journey was part of a broader national narrative. 

“The story of Botswana’s economic transformation is one of vision, resilience, and collaboration. Debswana remains steadfast in its commitment to playing a role in the economic transformation of Botswana,” he said. 

He explained that Debswana would continue to support initiatives that foster private sector growth, deepen citizen participation, and drive value addition across all sectors of the economy. 

The networking dinner brought together a sea of business titans, industry trailblazers, and high profile personalities both from the corporate elite to government heavyweights. 

The main objective of the dinner was to foster business connections and forge new alliances and explore opportunities for collaboration. Ends