P7.8m set aside for private sector development
ATISA- SDP to boost youth- women led SMEs
Aprivate sector- led economy for Botswana is still out of reach, but thanks to the Sustainable Private Sector Development ( SPSD), a UNDP flagship project, this could soon be a thing of the past.
The SPSD is expected to provide comprehensive and inclusive support for the sustainable development and growth of the private sector.
Among the restraints, according to Boitumelo Mbaakanyi a Project Manager at UNDP, is the fact that Micro Small and Medium Enterprises ( MSMEs) and the informal sector remain relatively small in aggregate, undeveloped and uncompetitive.
There is also limited access to markets and uptake of trade agreements by MSMEs, undiversified exports by MSMEs, limited access to available market opportunities, slow uptake and adoption of digital solutions to harness efficiencies and innovations, as well as limited effective participation and leadership in businesses led by women and youth among others.
Costing P7.8 million, the project will therefore bring together the three UNDP portfolios to implement the objectives of the Country Programme Document 2022 to 2026 through a portfolio approach to programming towards strengthening an inclusive private sector to propel Botswana to prosperity.
According to Mbaakanyi, the project will contribute towards building a greener economy, capitalising on opportunities to recycle materials and utilise renewable energy. It will also contribute towards developing a commercially independent agriculture sector that can function without large- scale subsidies.
Mbaakanyi says opportunities created by the COVID- 19 pandemic will be harnessed to propel the businesses, especially MSMEs and vulnerable groups to adopt innovative and transformative ways of doing things, including the productive use of technology and digital approaches.
The project will build on past achievements by UNDP portfolios’ initiatives such as the ATISA Supplier Development Programme ( SDP), # YouthConnekt, Small Grants Project ( SGP), climate smart agriculture, renewable energy activities and other climate change- related projects, among others.
The ATISA- Supplier Development Programme ( SDP) that brings together Buyers, Suppliers and UNDP certified Consultants has already made an impact on beneficiaries.
It has strengthened local product and service diversification, value chains and job creation across various sectors.
Giving the project impact update this week, Mbaakanyi said the ATISA- SDP’s support footprint is expected to further expand during next year’s rollout, especially businesses owned by women and youth. In the first year, 17 percent of entities enrolled on the programme as suppliers were youth owned and 18 percent were women- owned.
ATISA- SDP that was previously known as the UNDP- SDP so far has in two cohorts, 11 buyers, 175 SMEs including 51 from Youth Conneckt and 45 citizen consultants. The nine current focus sectors of the programme include, Mining, Agro- Processing, Infrastructure, Energy, Leather, Textiles, Health, Digital and other Manufacturing.
Mbaakanyi is impressed with the impact of the project to date. Beneficiaries registered increased sales, increased in staff employment, improved product quality and processes, enhanced access to new markets including export market, more products diversification, more market diversification, increased access to finance - as a result of negotiated competitive lending rates with partner banks, consistent and timely deliveries, quality products and priced right offerings, among others.
She further said they had initially targeted at least five new jobs per SME, but managed on average three jobs per SME, a significant feat considering the harsh environment that Covid- 19 presented. She also reported an increase in the number of exporting SMEs. In addition, 75 percent of SMEs reported at least five percent annual growth in revenue.
To ensure sustainability and growth of SMEs, Mbaakanyi adds that some from the cohort will be introduced to the Botswana Investment and Trade Centre’s ( BITC) Export Development Programme.
In addition, preferential lending rates of partner banks for 12 months after graduation will be extended to SMEs, as well as access to Townhall Capacity building Workshops for 12 months after graduation. SMEs will also be assisted to penetrate external markets through the African Continental Free Trade Area ( AfCFTA) and AGOA among others.
Permanent Secretary in the Ministry of Entrepreneurship, Joel Ramaphoi said the impact of the ATISA- SDP is commendable, further stating that it cements what his ministry was set up for, which is to serve as a catalyst in value chain development, clusters development and mindset change, among others.
He says the UNDP has support government in a number of ways including the evaluation and development of the Botswana Exporter Development Programme ( BEDP). It complements the BEDP especially in supporting the capacity building of SMEs and fostering integration of the SMEs with the large businesses.
“SMEs that are eligible are also encouraged to enroll in the BEDP to develop their export capacity,” Ramaphoi said. He further added that UNDP has been instrumental in the simplification of six selected trade agreements that Botswana is party to.
“The simplification of the requirements of the trade agreements is meant to promote the level of understanding of the agreements and the opportunities they offer,” he said, adding that it has also helped in the development of a Trade in Services Strategy for Botswana, as well as a National Investment Strategy.
UNDP is also supporting the BITC to undertake a study and profile different African markets to determine Botswana’s potential to increase its exports into Africa under the AfCFTA.
“The other support has been extended to CEDA to develop their Results Based Monitoring and Evaluation System,” Ramaphoi said.