Exports key to local economic growth – BB president

FRANCISTOWN: For Botswana to reach the status of a high-income economy, there is need for the country to focus more on broadening its export base.

This is according to Gobusamang Keebine, the Business Botswana (BB) president. He was speaking at the just-ended National Business Conference (NBC) held in the second capitol this week. The objective of the biennial conference is to propose ideas that can help the country to improve its economy.

Botswana has set its sights on becoming a high-income country by the year 2036, an ambition captured in the National Vision 2036. Addressing the NBC, Keebine emphasised Botswana should identify unique products that can be manufactured and exported into the region.

“Our natural products have proven to be in high demand in Africa and other parts of the world,” the BB president said. “For example producing solar energy is one focus area Botswana must pursue vigorously.

“The unique products we have can help propel Botswana to a high-income country.” He highlighted that for Botswana to take advantage of the trade agreements in place, the country must understand the types of goods traded in the African region versus traditional trade commodities such as diamonds.

“The types of goods that African countries trade among themselves are very different from those they trade with the rest of the world.

“Botswana should identify what it can produce for the African market,” he said.

Keebine noted that apart from increasing exports the country should also create an economic structure that has the capability of quickly transforming from subsistence agriculture to industrialisation and commercialisation.

Agriculture is widely viewed as one of the avenues Botswana can use to reach high-income status. One of the key speakers at the NBC, Shingai Mutasa who is the CEO of Masawara Group, pointed out that Botswana’s objective of becoming a high-income economy hinges on developing well-trained human resources. “Botswana has the potential to reach high-income status by 2036,” he said. “For a very long time, the country has experienced annual growth rates averaging 10%. “To achieve high-income status Botswana needs to maintain an annual economic growth rate of six percent. “That is why I believe that it is possible for the country to achieve that by 2036. “There is, however, need to invest in capacitating its human capital. “Without sound human capital achieving high-income status will always be an illusion.”

He added that Botswana’s infrastructure will also have to be improved at an accelerated speed. According to Mutasa, infrastructure will be key towards attracting investors who will drive the country’s ambitions of becoming a first-world country. “Botswana’s business leaders must not be afraid to think big. “They have the intellect and capacity to execute all initiatives that can propel Botswana to a high-income state,” he said.

Mutasa expressed his frustrations over business leaders’ tendency to leave politicians as the main drivers of Africa’s economy. He pointed out that economists and business leaders should take control of Africa’s development agenda because they understand business and the economy well.

“Botswana must also realise that it is not alone but is part of a great continent. The more we build our continent, the more we magnify our potential and make it a reality. With the necessary self-belief and remembering that Botswana is not alone, the country is well poised to transform itself into a regional superpower.”