Manufacturing sector under dire stress
Despite several challenges that export oriented manufacturers face due to the turbulent COVID- 19 pandemic threatening to shrink the country’s exports, the sector remains upbeat.
According to Botswana Exporters and Manufacturers Association ( BEMA) Chief Executive Officer, Mmantlha Sankoloba, exporters’ resilience is fueled by their objective of ‘ making sure the private sector survives and thrives with authoritative representation’. She told Botswana Guardian that, the success of the manufacturing sector can only come about through private and public sector proactive efforts. The sector’s current challenges require diligence and strategic counters to overcome, citing that market access has become one of the main challenges ever since the outbreak of COVID- 19. “Nations adopted protectionist measures, they have imposed restrictions on importation to protect their own industries as a result, exporters have lost out on significant foreign market share,” Sankoloba said.
The COVID- 19 hinged threat to the exporters comes on the backdrop of already existing non- tariff barriers in the form of cross- border delays that have been a major obstacle and continue to be. Botswana’s main exports are diamonds, copper, nickel, soda ash, beef and textiles. In addition, currency exchange rates have rendered local products uncompetitive as they are becoming overpriced in comparison to those of neighboring nations. With these
several challenges on the horizon, BEMA remains hopeful for this year and intends to establish new value chains within the leather industry or leather products, indigenous products, agro- business and horticulture space. “It is important that, we create sound and properly reformed citizen economic empowerment law and fast track the review of the economic diversification drive,” said Sankoloba, emphasizing on participation of local players on the value chain.
In addition, the Association also plans to push the retail charter into fruition this year, to secure domestic market for locally made products, especially retail space.“We also continue to advocate and lobby for support and utilization of locally made products and services, especially by highly government or private financed projects and contractors- import substitution,” said Sankoloba. BEMA says though COVID- 19 has disrupted businesses throughout the world, it intends making use of the digital and online space to counter the unravelling impacts of the pandemic.“We have many projects for this year that will make use of digital platforms and yield convenience,” said Sankoloba. On the other hand, BEMA will lobby business community to utilize the countless opportunities for exporting and venturing into new product lines, to contribute to employment creation and industry growth.
“Botswana is subject to several multi- lateral agreements such as the SADC- EU Economic Partnership Agreements, SADC+ MozambiqueUK EPA’s and the much talked about African Continental Free Trade Agreement ( AfCFTA),” said Sankoloba. Sankoloba further said the Association is currently working with the British Council to identify the training needs of Botswana companies through the ‘ Trade Forward Southern Africa’ programme. We are also working with the USAID under several programs such as, the supplier development program and the marketing and technical support program. These programs exist to boost Botswana manufacturers export competitiveness.” As part of its lobbying efforts for manufacturers and exporters, BEMA co- chairs the AGOA reference group at the Ministry of Investment Trade and Industry, while representing the sector in numerous other government committees.