17 Feb 2025

Failure to comply with the 30 per cent government off-take directive cripples some of the manufacturing firms at the SPEDU region, which were set up to revive the local economy that was crippled by the closure of BCL mine.

This was revealed by the chairperson of the Manufacturers Association for the SPEDU region, Mr Joseph Ithobogeng during the SPEDU stakeholder workshop recently. 

The 30 per cent off-take is a 2017 government directive that binds government departments and parastatals to procure 30 per cent of their needed goods and services from the manufacturing industries in the SPEDU region.

Mr Ithobogeng noted that the manufacturing firms were set to revitalise and diversify the region’s economy. 

However, some of the firms struggled with market penetration, therefore the directive was to bridge the market opportunities gap and to present the government’s commitment to supporting the firms and other SMEs.

He noted that though the directive was long put in place, benefit from it was not easy as some procurement officials from the government departments and parastatals were said to be not complying with it for reasons of clashing with procurement policies among others.

“Challenges of market penetration have been recognised as one obstacle in the growth of business entities, making it difficult to meet the repayment obligations of credit facilities; therefore, the 30 per cent off-take was ideal to lessen such challenges,” he said.

CEDA Regional Manager for the North region, Ms Ogaufi Tafa, noted that more than P160 million from CEDA had been used for some manufacturing business in the region and most entities funded struggled to gain foothold in the market, making it difficult for them to repay loans.

She expressed hope and said that the 30 per cent off-take resolution would be a game changer that would not only revive struggling businesses, but would also set the stage for sustainable and self-sufficient economic development.

One entrepreneur, Ms Patricia Monyake from Dzombo Fences in Selebi Phikwe, appreciated the directive. However, she shared her concern about corrupt practices which she said always thwarted efforts aimed to uplift SMEs.

Earlier on, Botswana Business Vice President for the North Region, Mr Humphery Nawa, emphasised the need to identify solutions that would bridge the gap between producers and customers to lay the groundwork for a thriving and inclusive economy.

He said the relationship between procuring entities and local businesses would ensure that local businesses had the opportunity to thrive, both within borders and beyond. ENDS