ECONOMIC DIVERSIFICATION POLICIES AND STRATEGIES :
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Transcript of ECONOMIC DIVERSIFICATION POLICIES AND STRATEGIES :
ECONOMIC DIVERSIFICATION POLICIES AND STRATEGIES:
What Is Different From What We Have Always Done?
Joel Sentsho, PhDTrade Policy Advisor
Ministry Of Trade And IndustryMinistry Of Trade And Industry
27th August 2014
REPUBLIC OF BOTSWANA
MINISTRY OF TRADE AND INDUSTRY
BOTSWANA
PRESENTATION OUTLINE1. INTRODUCTION
2. WHAT IS DIFFERENT FROM WHAT WE HAVE ALWAYS DONE?
2.1 Market Approach visa-a-vis Pragmatic Approach
2.2 Economic Policy and Implementation Matrix
2.3 Development of Priority List of Sectors/Sub-Sectors
2.4 Development of Sector Specific Strategies
2.5 Institutional Setup
3. ACHIEVEMENTS SO FAR
4. CONCLUSION: - Where are our Policies and Strategies pointing to?
This will be based on Economic Policies, Strategies and Sector-Specific Strategies ECONOMIC POLICIES:
Industrial Development Policy for Botswana (July 2014)
Special Economic Zones Policy for Botswana (February, 2011)
Trade Policy for Botswana (2009)
Citizen Economic Empowerment Policy (CEEP)
ECONOMIC STRATEGIES:SPEDU Strategy for Selebi-Phikwe Regional Economic Diversification (2013) Botswana’s Cooperative Transformation Strategy (September 2012) Economic Diversification Drive (EDD) Strategy for Botswana (2010) Botswana National Export Strategy (2010) Investment Strategy for Botswana (2010)
SECTOR SPECIFIC STRATEGIESThe Strategy for Development of the Dairy Sector in Botswana (2013)
Botswana Textile and Clothing Development Strategy (2013)
A High Level Strategy for the Development of the Leather Industry in Botswana (2012)
• Government creates conducive environment for Private Sector
• Private Sector identifies priority Sectors for development
Pragmatic
Approach
Market Approac
h
Govt Sector
Govt Sector
Devt Partne
rs
Devt Partne
rs
Parastatals
Parastatals
Private
Sector
Private
Sector
Labour
Labour
Economic Diversificati
on
Each Policy has a Vision, Mission, Theme and Implementation Matrix. For IDP 2014 we have:
Vision: To have diversified, sustainable, and globally competitive industries.
Mission: IDP2013 aims at promoting development of diversified and viable industries as well as commercial sectors, using skilled personnel and appropriate technology whilst leveraging on active private sector collaboration and participation.
Theme: Placing Botswana among the Industrialized Economies of the 21st Century.
Implementation Matrix with milestones, Strategic Initiatives, Responsible Implementer and Timeframes
A priority list of sectors is developed by all Stakeholders
The list includes sectors/Subsectors with potential for domestic and international market growth, export potential and employment growth
The identified list is developed by the private sector which is the engine of growth for Botswana
For each sector/sub-sector a Sector specific strategy is developed which includes:
SWOT Analysis
Value Chain Analysis
Cluster Development
Development of Business Linkages
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Value Chain Analysis breaks a production chain into its constituent parts to identify and understand:
Value adding activities in the chain;
Value chain business opportunities and challenges;
Economic actors at each stage of the value chain;
Value chain leadership or governance;
Domestic, international and global value chains;
Required policy interventions to sustain the sector.
BREEDERSBREEDERS
FEEDPROCESSING
TECHNICALSUPPORT FROM ALL
BDS
TECHNICALSUPPORT FROM ALL
BDS TRANSPORT
PACKAGING AND
BRANDING
FINANCIERSFINANCIERS
FEED GROWERS
DAIRY COWS
• Membership to represent all critical Stakeholders16 Ministries11 Parastatals 2 Independent Departments 3 Private Sector Representatives 2 MTI Departments 7 Chairpersons of Thematic Teams 5 EDD Unit
• Ensures Effective Coordination, Collaboration and implementation
• Monitoring and Evaluation to track progress
• Private Sector Involvement (BOCCIM and BEMA)
• Impact: Effective Coordination, Collaboration and Implementation
a) EDD purchases: Cumulative PurchasesA cumulative figure of Government purchases of P12.566 billion worth of goods and services has been recorded since inception of the EDD in 2010. Out of this figure, the cumulative value of purchases from local manufacturers and service providers is almost P7 billion.
Cumulative Purchases Since 2010
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Manufacturer
P97.5m P214.2m P298.3m P182.0m P792m
% 16.51 11.36 16.24 7.7111.86
Service Provider
P493.0m P1.672bn P1.539bn P2.180bn P5.854bn
% 83.49 88.65 83.78 92.29 87.69TOTAL EDD PURCHASES
P590.5mP1.886b
nP1.837bn P2.362bn P6.676bn
CategoryApril 2010 – March 2011
April 2011 – March 2012
April 2012 – March 2013
April 2013 – March 2014
Total
a) EDD purchases: Cumulative Purchases by PercentagesCumulative Purchases Since 2010
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Manufacturer
P97.5m P214.2m P298.3m P182.0m P792m
Service Provider
P493.0m P1.672bn P1.539bn
P2.180bnP5.854bn
TOTAL EDD PURCHASES
P590.5mP1.886b
nP1.837b
nP2.362bn P6.676bn
% 51.30 49.93 53.73 55.97 53.13Retailers P437.2m P1.460bn P1.208bn P1.504bn P4.609bn
% 37.98 38.66 35.33 35.64 36.68Foreign Supplier
P123.0m P431.0m P374.0m P353m P1.281bn
% 10.69 11.41 10.94 8.36 10.19
TOTAL PURCHASES
P1.151bn
P3.777bn
P3.419bn
P4.220bn
P12.566bn
CategoryApril 2010 – March 2011
April 2011 – March 2012
April 2012 – March 2013
April 2013 – March 2014
Total
a) EDD Purchases
ii) Analysis of Purchases per product for 2011/12
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b) Promotion of Local Production and Consumption
i) Employment Creation, Investment and Turnover
The turnover for these enterprises declined by over P86.9 million representing a 6% decline. The decline is for 37 enterprises out of the 110 enterprises in the sample, or 34%.
Most of the companies which showed declined in turnover are those involved in the production of building/construction products (such as bricks, pipes, cement) bakeries, milk, chemicals and furniture.
The figures are as shown in the table below:
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ACHIEVEMENTS SO FAR CONT’D
SPEDU Strategy – works that are underway:
◦Turning the old mine shaft into a mining museum;
◦Refurbishment of Selebi-Phikwe Airport;
◦Beneficiation of copper
◦Steel Manufacturing and Casting
◦Use water from the mine for Horticulture
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A Leather Park is planned to be developed at Lobatse.
Benchmarking studies [2014] have already been undertaken to Brazil, Ethiopia, India and Italy.
A feasibility study for the Leather Park will
be will be undertaken and is expected to be completed by December 2014
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“Develop diversified, sustainable and globally competitive industries,“ that will place Botswana among the industrialized countries of the 21st century.
“Develop diversified, sustainable and globally competitive industries,“ that will place Botswana among the industrialized countries of the 21st century.
Attract world class firms that will produce world class goods for world markets
Attract world class firms that will produce world class goods for world markets
Open world markets for Botswana Goods and Services
Open world markets for Botswana Goods and Services
Ensure that Batswana participate and benefit from the opportunities opened by Botswana’s economic policies and Strategies
Ensure that Batswana participate and benefit from the opportunities opened by Botswana’s economic policies and Strategies
Industrial Development Policy (2014)Industrial Development Policy (2014)
Special Economic Zones Policy (2011)Special Economic Zones Policy (2011)
Trade Policy for Botswana (2009)Trade Policy for Botswana (2009)
Citizen Economic Empowerment PolicyCitizen Economic Empowerment Policy
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Turn Selebi-Phikwe into a vibrant, Diversified, and sustainable economic region
Turn Selebi-Phikwe into a vibrant, Diversified, and sustainable economic region
Develop globally competitive enterprises
Develop globally competitive enterprisesDiversify exports and export markets through a vibrant and globally competitive private sector
Diversify exports and export markets through a vibrant and globally competitive private sector
Turn Co-operatives into Vibrant, Competitive and Profitable Business Enterprises based on modern business practices
SPEDU Strategy for Selebi-Phikwe Regional Economic Diversification
SPEDU Strategy for Selebi-Phikwe Regional Economic Diversification Economic Diversification Drive (EDD) Strategy
Economic Diversification Drive (EDD) Strategy
Botswana National Export StrategyBotswana National Export Strategy
Cooperatives Transformation Strategy
Cooperatives Transformation Strategy