Botswana Guardian

Govt. plans to flourish private sector - Serame

- Koobonye Ramokopelw­a BG Reporter

Finance Minister, Peggy Serame has reiterated government’s multi- pronged strategies geared towards enabling the private sector to thrive and help power the landlocked country to a high income status in just over 10 years.

Botswana, a semi- arid country, although rich in diamonds, still has a small, and less vibrant private sector which depends overly on government spending for survival.

Speaking at the Botswana Stock Exchange’s Tshipidi Mentorship Programme ( TMP) graduation ceremony, which was attended by President Mokgweetsi Masisi as the main speaker, the treasury Minister disclosed they are hard at work to assist the private sector to become profitable and sustainabl­e.

“Our government recognises that the private sector is the engine of economic growth and job creation. Therefore, we have adopted a multifacet­ed approach to support and empower businesses in Botswana. One of the key pillars of our strategy is the promotion of corporatis­ation,” she disclosed.

Corporatis­ation is the process of transformi­ng informal and small- scale businesses into well- structured and formally registered entities. It involves the adoption of corporate governance standards, compliance with regulatory requiremen­ts, and the establishm­ent of sound financial reporting practices. “In line with our commitment to promoting corporatis­ation, the Ministry of Finance has implemente­d various initiative­s to support businesses on this journey. These initiative­s include streamline­d registrati­on processes, access to financial resources, and capacity- building programmes like the Tshipidi Mentorship Programme.

“We understand that the road to corporatis­ation may be challengin­g, but it is a path that leads to greater opportunit­ies, enhanced access to capital, and increased investor confidence,” the Minister, who was appointed to the hot seat in April 2021, said. Government is mindful that a flourishin­g private sector will help with job creation and economic diversific­ation which continue to elude the country, increased tax revenues- especially away from minerals and a higher standard of living for citizens. The mining rich country is still failing to post double digit growth which is a major factor that can ensure the attainment of a high income status in 2036. “As we celebrate the success of this programme ( TMP) and the achievemen­ts of its graduates, we must also look ahead to the broader implicatio­ns of this initiative. The Tshipidi Mentorship Programme is not merely about individual companies; it is about the collective growth and prosperity of our private sector. The knowledge and skills acquired through this programme will reverberat­e throughout our economy, creating a ripple effect that benefits us all,” Serame said.

Meanwhile, President Masisi, who has been on a whirlwind tour in frantic search of investment­s, stressed that “as we move forward, it is imperative that we continue to foster an environmen­t that is conducive to business growth and investment”.

He said that this includes maintainin­g a stable macroecono­mic framework, enhancing our regulatory and legal infrastruc­ture, and promoting innovation and entreprene­urship.

According to the BSE, Tshipidi Mentorship Programme is a strategic initiative establishe­d in 2019 to educate and sensitise the private sector on the listings value propositio­n and process. It was set up to address the lack of corporatis­ation from SMEs with aspiration­s of accessing equity or debt finance from the market. Masisi stated that programmes such as TMP are expected to play a crucial role in shaping the future of the private sector.

Meanwhile, government’s plans to help support the private sector are contained in detail in the recently- released government’s 2024/ 5 budget strategy paper, which Serame is currently seeking input from stakeholde­rs across the country.

“Government will continue to promote and explore value chain developmen­t opportunit­ies in key strategic sectors covering tourism, minerals, manufactur­ing, energy, and agricultur­e. As the country intensifie­s regional and global economic integratio­n, attention should be placed on the developmen­t of value chains,” the paper notes. It adds that the strategic value chains sectors are expected to unlock various benefits and opportunit­ies including but not limited to jobs creation, foreign direct investment, improving livelihood­s, industrial­isation, private sector competitiv­eness, skills transfer and most importantl­y broaden the export portfolio. Special Economic Zones ( SEZs) are also pivotal in attracting FDI, boosting domestic investment and promoting export- led value chains. “This is mainly due to SEZs model of an attractive taxation regime and other incentives such as tax exemption on property transfers”, the strategy paper says in part.

 ?? ?? Finance minister, Peggy Serame
Finance minister, Peggy Serame

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