PRE SE NT AT ION ON ST RUCT URAL E CONOMIC T RANSF ORMAT - - PowerPoint PPT Presentation

PRE SE NT AT ION ON

ST RUCT URAL E CONOMIC T RANSF ORMAT ION- BOT SWANA

AFRI CA REGI ONAL MI D TERM REVI EW OF THE VI ENNA PROGRAMME OF ACTI ON FOR LANDLOCKED DEVELOPI NG COUNTRI ES FOR THE DECADE 2014-2024

• MR. GIDE

ON MMOL AWA MINIST RY OF INVE ST ME NT , T RADE AND INDUST RY- BOT SWANA 18T

H MARCH 2019

PRESENTATION UPDATE

• S

napshot: Key Economic Indicators

• National Development Plan 11
• S

tate of S tructural Economic Transformation and challenges

• Opportunities and Prospects
• Key Lessons

ECONOMIC INDICATORS

 S

trong economic growth and prudent financial management

 The domestic economy registered a growth rate of 4.3 percent in 2016,

by 1.7 percent in 2015.

 In 2017, R

eal GDP growth rate was 4.7% . after contracting  Inflation relatively low and within Bank of Botswana target of 3-6%  Unemployment proving to be a challenge, rose to 17.8%

in 2017

 International trade plays a critical role in Botswana’s economic

performance

 Botswana’s export performance has been driven mainly by the extractive

Industry; maj or dependence on diamond exports (accounting for over 70%

• f total exports)

ECONOMIC DIVERSIFICATION AND STRUCTURAL TRANSFORMATION

2% 17% business services, of 27% General communications,

• f which:

1% Trade, hotels and restaurants 0% Manufacturing 5% Agriculture Mining Other 13% electricity restaurants communications, of business services,

GDP BY ECONOMIC ACTIVITY - 2017

18% 2% 10% Manufacturing General 6% government Water and 1% Construction 8% Financial and Transport and Trade, hotels and

• f which: which: 21%

15% 6%

GDP BY ECONOMIC ACTIVITY - 2008

Other Agriculture Mining government 12% Financial and business services,

• f which:

Manufacturing 12% 6% Water and Transport and electricity Construction 4% 14%

GDP BY ECONOMIC ACTIVITY - 1966

General Other Financial and government 0% which: 10% Agriculture 20% 43% Transport and communications, of which: 4% Mining Trade, hotels and Water and restaurants Construction electricity 9% 8% 0% 6%

• From

2008 to 2017 contribution of the mining sector went down due to growth in other sectors like Trade, hotels and restaurants

NATIONAL DEVELOPMENT PLAN 11

• Government of Botswana is currently implementing t he NDP 11 running

from 2017-2023 with the theme:

“ Inclusive Growth for the Realisation of Sustainable Employment Creation and Poverty Eradication”

• NDP 11 focuses on six broad-based national priorities:

Developing Diversified S

• urces of Economic Growth;

Human Capital Development; S

• cial Development;

S ustainable Use of Natural Resources; Consolidation

• f

Good Governance and S trengt hening

• f

National S ecurity; and Implementation of an Effective Monitoring and Evaluation S ystem

NATIONAL DEVELOPMENT PLAN 11

A number of policies, strat egies, and programmes have been ident ified t o support the realisation of these national priorities: (i) developing diversified sources of economic growt h through initiat ives such as:

• Cluster

Development - Financial S ervices, Beef, Tourism, Diamond beneficiat ion (re-location

• f

the Diamond Trading Company to Botswana in 2010).

• S

pecial Economic Zones- Policy of 2010 designed to diversify the economic and export base of Botswana into sectors that will continue to grow long aft er diamonds have run out , eight strategic sights identified.

• Local Economic Development -

aims at transforming cities, towns and rural areas into viable economic entities in order t o promote growing local economies to alleviate poverty and create j obs.

(i) t he use of domest ic expendit ure as a source of growt h and employment creat ion by ensuring that domest ic aggregat e demand, including Government expendit ure, is employed t o support growth and employment creation- Economic Diversification Drive; and (ii)pursuing an export -led growt h strategy given the limited size of the domestic economy. The export -led growth strategy draws from the clust er model, where focus is on seven priority sectors (Arts and Crafts, Garments and Textiles, Jewelley and S emi- Precious S t ones, Leat her and Leather Products, Meat and Meat Products, Light Manufacturing and Indigenous Products).

NATIONAL DEVELOPMENT PLAN 11

Launched in 2016 Set

• n

t he principles and pillars

• f

sust ainable development , enabling Bot swana t o build resilience as it pursues it s development agenda.

Has four pillars being;

• S

ustainable Economic Development;

• Human and S
• cial Development;
• S

ustainable Environment and

• Good Governance, Peace and S

ecurity.

BOTSWANA’S VISION 2036

OPPORTUNITIES AND PROSPECTS FOR STRUCTURAL ECONOMIC TRANSFORMATION

 Human Resource Development Strategy- approved in 2009 is

intended to optimise the efficacy and outcomes of the HRD to drive Botswana’s development agenda. The desired

• utcomes of

the S trategy are economic diversification and societal transformation.

• Transforming Botswana economy to a knowledge-based economy through human

capital development

• Botswana is in the process of aligning courses offered at tertiary institutions

with what is required by industry

• improvements include the infusion of entrepreneurship, leadership, and business

management skills within the various programmes offered by local tertiary institutions

 Research, Science, Technology and Innovation



Botswana Innovation Fund – 1st group of beneficiaries received awards in S eptember 2018

OPPORTUNITIES AND PROSPECTS FOR STRUCTURAL ECONOMIC TRANSFORMATION

 Government is in the process of developing a National T

ransformation S trategy – Obj ective is to unlock potential human and financial resources



R e-vamped Economic Diversification Drive P rogramme to encourage the development of a vibrant and innovative private sector

 Initiatives aimed at entrepreneurship development e.g.

• UNDP S

upplier Development Programme – Linkages programme bet ween S MMEs and large-scale enterprises in value chains

• Exporter Development Programmes – to develop local industries to be export ready

 Implementation of the Doing Business Reforms RoadMap to improve

competitiveness

 Improved investment attraction

REGIONAL VALUE CHAINS SADC INDUSTRILISATION POLICY

S

eeks to build regional market as well as address t he common challenge

• f

industrialization t hrough development

• f

st rategies coordinated at regional level.

Obj ective is t o promote regional value chains in 9 sectors wit h 3 priorit y

sectors identified as:

• agro-food processing;
• processing of mineral products and
• pharmaceuticals

S

ADC together wit h COMES A and EAC have also adopted industrial development as one of the pillars underpinning regional cooperation under the Tripartite.

At national level Value Chain S

tudies have been undertaken e.g beef, honey, horticulture and dairy, piggery, indigenous product (morula), poultry.

LESSONS LEARNT FROM BOTSWANA

Good Policies and Programmes but weak implementation framework Lost opportunities - took long to beneficiate diamonds and create

downstream industries around key resources such as the diamond sector, 2012; (Before DTC move, rough diamonds traded in country was US $1b, now US $5b post process)

 Other countries have been improving faster than Botswana in the

• Competiveness. A challenge to attract investment;

 T

ransport Infrastructure does not efficiently support the export -led growth strategy .

 High dependency on only one port of exit for Botswana products, slowly started

usage of Walvis Bay port.

 Delays in investing in road and rail infrastructure network to enable market access to the

northern part of Africa. (e.g.Kazungula Bridge, Mohembo Bridge, rail proj ect to Walvis Bay)

Being land locked and close to large and well-developed economy

has proven to be a significant challenge in our ability to compete.

THANK YOU