Debswana targets P4bn citizen spend in 2022

Mbongeni Mguni | Monday July 4, 2022 06:00

Debswana’s Citizen Economic Empowerment Programme (CEEP) aims to spend P20 billion on citizen enterprises by 2024, with a cumulative P7.8 billion having already been procured between 2019 when the programme began, and 2021.

The initiative represents the largest citizen economic empowerment spend by a private company in Botswana’s history, rivalled only by the government’s Economic Diversification Drive which annually directs more than P10 billion in procurement by the state to local enterprises.

This week, the diamond group said thus far this year, 38% of its procurement has been sourced from Botswana citizen-owned companies. The balance has come from the majority of foreign-owned suppliers either domiciled in Botswana or outside the country.

“Debswana aims to use its procurement budget and influence to impact socio-economic development in Botswana through citizen participation in the supply chain and creation of jobs,” group spokesperson, Agatha Sejoe told BusinessWeek in an emailed response to enquiries. “Debswana is also committed to the development and support of locally manufactured products as a driver of import substitution and job creation.”

Sejoe said Debswana has set a target of 50% citizen-spend by 2024, a figure that equates to about P10 billion.

Under the initiative, Debswana is engaging citizen companies for various consumables such as fuel, as well as services such as drilling, crushing, explosives, tyre services management, truck maintenance, as well as waste management.

“Debswana has partnered with local banks to facilitate access and management of funds as an enabler of citizen participation in the Debswana supply chain,” Sejoe said.

While mining is Botswana’s economic mainstay, producers mostly source their consumables and services from international companies as the country's industrial base has remained narrow over the years. The government’s P14.5 billion Economic Transformation and Recovery Plan, launched in 2020, has included manufacturing as a priority for development.

“Debswana is also participating in the acceleration of business cases in the agriculture and chemical value chain,” Sejoe said. “The aim is to increase economic activity and job creation in Botswana. “Whilst the current socio-economic development programme seeks to achieve a breakthrough and quantum leap, Debswana has over the years been in the forefront of socio-economic development in Botswana using its procurement and as part of its corporate leadership and importance to Botswana. “Debswana has over the years been an active participant in infrastructure development, education, health, agriculture with an overall strong pedigree on social-economic development.”