22 Jun 2025

 Botswana is grappling with productivity and competitiveness challenges, which are impacting standards of living and employment opportunities, according to Deputy Permanent Secretary Ms Tshepo Nkwadi of the Ministry of Labour and Home Affairs.

Speaking at the commemoration of World Productivity Day, Ms Nkwadi highlighted the country’s economic stagnation and rising unemployment, citing a 2023 Situation Analysis Study by BIDPA that identified key issues. 

These include, she said, the absence of a comprehensive policy framework, fragmented efforts to address productivity, deterioration in the national value system, and weak work ethics, all contributing to subpar performance across sectors.

The study also pointed out deficiencies in data collection, monitoring, and research on productivity metrics. 

International rankings further reflect these struggles, with Botswana’s performance declining in recent years. 

The 2018/19 World Economic Forum Global Competitiveness Report ranked Botswana at 89th out of 140 countries, while the 2025 IMD World Competitiveness Yearbook placed it at 59th out of 69 countries, down from 55th last year. 

The country’s overall score has also dipped from 50.31 to 46.12, underscoring a downward trend.

“This is a day for us as a nation to reflect on the importance of productivity at all levels. Botswana aims to escape the middle-income trap and attain prosperity by 2036, aspiring to be a high-income country with a diversified, inclusive and sustainable economy driven by high productivity, ” Ms Nkwadi said.

To support this vision, the ministry has developed the draft National Productivity and Competitiveness Policy, Strategy, and Implementation Plan in collaboration with the European Union. 

Approved by Cabinet, the policy aims to address national challenges cohesively and form the foundation for transforming Botswana into a high-income country.

Ms Nkwadi also announced plans to transform the Botswana National Productivity Centre (BNPC) into a National Productivity Organisation, following a merger with the Botswana Public Service College (BPSC) and the Institute of Development Management (IDM). The move aims to enhance efficiency, policy support, and economic growth.

Reflecting on the country’s recent performance, BNPC Acting General Manager Ms Segolame Siku reported alarming declines in labour productivity growth, which dipped from 2.2 per cent in 2023 to 0.4 per cent in 2024. 

Similarly, total factor productivity fell from -2 per cent to -3.6 per cent over the same period, signaling unsustainable trends.

The IMD report identified key hurdles, including low worker motivation (ranked 68th), poor internet bandwidth (67th), persistent budget deficits (68th), low export levels (69th), and high unemployment (67th). 

These issues ripple through the economy, hindering growth, deepening inequality, and dampening prospects for shared prosperity.

Despite these setbacks, Ms Siku highlighted signs of progress. Patent registrations soared from 1.1 per cent in 2024 to 10.8 per cent, indicating a growing culture of innovation. 

She said export of commercial services as a percentage of GDP increased from 2.97  per cent to 3.84 per cent, reflecting sector diversification.

 Furthermore, she said exchange rate stability had bolstered investor confidence and macroeconomic resilience.

“These achievements, rooted in productivity, demonstrate that focused efforts and collaboration can begin turning the tide. Productivity-led growth must be prioritised as the key to sustainable development, job creation, and economic resilience,”Ms Siku said.

The event’s theme: From Ideas to Impact: Protecting Intellectual Property for Competitive Start-ups, resonate with Botswana’s developmental aspirations. 

Mr Timothy Moalusi, Acting Registrar General of CIPA, underscored the importance of intellectual property as a driver of innovation and economic value. 

“Protecting ideas fuels productivity and strengthens our global competitiveness,” he said, reaffirming CIPA’s commitment to supporting local entrepreneurs and innovators. ENDS