13 Mar 2014

There has been an increase in purchase of locally produced goods and services by government departments, ministries and parastatals, Parliament has been informed.

The Minister of Transport and Communications, Mr Nonofo Molefhi explained on Wednesday, March 12 that the move to purchase locally produced goods and services was aimed at promoting production and consumption of local goods.

Answering a question on behalf of the Minister of Trade and Industry, he said a cumulative figure of P10.7 billion worth of goods and services had been recorded since the inception of the Economic Diversification Drive (EDD) in 2010.

Out of that figure, he stated that P8 billion worth of goods and services were purchased from local manufacturers and service providers and that the figure for this financial year stood at P2.35 billion.

“During the period April 2010 to date, a total of 898 enterprises have been issued withed certificates. Of this total 723 are in the small scale category, 112 in the medium scale category, and 63 in the large scale category.

EDD registered enterprises enjoy preferential treatment in the government procurement system through the use of preference margins,” said the minister.

He said the Ministry of Trade and Industry had introduced three programmes under EDD aimed at enhancing enterprise competitiveness. The first programme which started in February 2013 is the Botswana Economic Diversification and Competitiveness Programme, whose main objective is to assist government in formulation and implementation of reforms geared towards improving the business landscape.

He said the second one is the Tokafala Programme, which is a joint initiative between government and Anglo American. “The programme aims at increasing levels of productivity in the local SMEs sector by leveraging on existing programmes in Botswana,” he added.

Additionally, he said the third programme is the Private Sector Development Programme, which is jointly supported by the European Union, Centre for the Development of Enterprises, Chanel Foundation and the Botswana government.

“The programme targets SMMEs, Community Based Organisations, and Intermediary Organisations capable of making the best contribution towards the objectives of economic diversification,” Mr Molefhi said.

The MP of Okavango Mr Bagalatia Arone had asked the Trade and Industry minister to state the tangible achievements brought by the EDD Policy since its introduction in April 2010. Ends