BITC hauls in P1.4bn FDI despite COVD-19
The Botswana Investment and Trade Centre (BITC) facilitated Foreign Direct Investment (FDI) to the tune of P1.38 billion against an annual target of P1.8 billion in the 2020-2021 financial year, powering through COVID-19 induced stress in the global investor market.
Figures made available recently indicate that the BITC, which is the country’s chief investment and export development agency, also recorded a total domestic investment of P957.4 million over the same period, against the target of P2 billion.
Briefing the media recently, BITC CEO Keletsositse Olebile said the performance for the last two years was slightly over the 80% target with a slight decline in the 2020-2021 financial year.
“The performance reflects some level of resilience to the COVID-19 situation as the notable achievements realised over the year were a result of investment decisions made in prior years before the pandemic,” he said.
The CEO added during the 2020-2021 financial year, BITC continued to drive Botswana’s economic growth through the attraction and promotion of FDI into the country.
“We also continue to carry out several initiatives targeted towards expanding Botswana’s export base in line with the country’s desire to be an export-led economy. We continue to implement a robust export promotion programme in line with the new National Export Strategy,” he said.
During the year under review, about P2.96 billion was realised as export earnings, against a target of P3.5 billion recorded from BITC facilitated companies. However, Olebile said the export sector locally is faced with challenges that greatly influenced its export performance results.
“We have a small manufacturing sector, which is the sector that traditionally contributes the most export earnings in economies around the world. Local exporters decry lack of export incentives to compensate for high production and transportation costs.”
Meanwhile, the centre has also supported the existing investment companies in Botswana by facilitating their expansions. In the reporting period, BITC-assisted companies created 4,518 jobs against a target of 4,300 jobs, with most of these created in the services sector, agriculture, agro-processing and manufacturing.
According to Olebile, while the mining sector continues to exhibit a downward trend, the agriculture space offers a niche with untapped opportunities. He added that agribusiness offers an opportunity for local producers to strengthen national food security, which currently remains a significant risk for the country.
“BITC has intensified engagement with local and international investors to promote investment in the agricultural sector and we have visited a number of local farmers to discover ways of assisting them to grow their businesses and find the niche markets for their products,” he said.
He further stressed the need to rally local entrepreneurs to take advantage of gaps in the economy. BITC has also adopted a new strategic focus, a shift to domestic investment promotion and the creation of active value chains. The development of the Domestic Investment Strategy will encompass a robust business retention and expansion plan.