Masisi urges Phikwe businesses to ‘think export’
Chakalisa Dube | Monday March 25, 2024 10:09
Masisi said this when officially opening the Selebi Phikwe Business Expo which attracted over 60 businesses on Wednesday. Half of the businesses were from Phikwe region.
The Expo offered a great opportunity for Batswana to appreciate and explore businesses in Selebi Phikwe and surrounding areas.
Since the closure of the BCL Mine in October 2016, the town has attracted manufacturing entities, something that has contributed significantly to its economic diversification efforts.
“You will recall that we ratified the African Continental Free Trade Agreement (AfCFTA) in 2023, and we are full members of this huge common market comprising 1.3 billion people. “This Agreement enables the free flow of goods and services across the continent and boost the trading position of Africa in the global market, Botswana included,” Masisi said.
He added: “This means that businesses in Selebi Phikwe and those in other parts of Botswana have to participate and upscale production in the targeted sectors over which the impediments of trade tariffs have been removed.”
On Wednesday, the Ministry of Trade and Industry announced that local businesses could trade under AfCFTA from April 1. The Ministry urged interested businesses to contact the Botswana Unified Revenue Service for help in putting together the administrative requirements for trading.
After the closure of BCL, which anchored the economy of Phikwe as well as its surroundings, government put together a portfolio of incentives aimed at making the Selebi Phikwe Economic Diversification Unit (SPEDU) region more attractive to investors. These incentives include five percent corporate tax for the first five years followed by 10% for an indefinite period as well as 30% government off-take. With the exception of a few businesses, the bulk of the products manufactured in Phikwe and surroundings are sold locally.
“As a Special Economic Zone, SPEDU has the potential to produce big industries that can serve the export market which would, in turn, alleviate unemployment. “Businesses in the region have already shown that they have the potential to produce products of good quality than can be exported,” Masisi said. Furthermore, the President said that the government’s efforts to drive economic growth are not only centred around established and semi-established firms. He stated that the government is committed to ensuring that the informal sector plays an integral role in the economic growth of the country. He announced plans to review and implement the 2019 Informal Sector Strategy in the upcoming financial year.
“The planned strategy aims to support the growth of the informal sector by providing better infrastructure, capacity building, improved market access, and financial inclusion.”
For the 2024-2025 financial year the government has announced plans to support the informal sector with funds amounting to P500 million in a revolving fund.
The government has often been accused of not demonstrating commitment to supporting informal sector entities across the country. In the main the government has been accused of not giving informal sector businesses conducive operational spaces to run their ventures or helping to incorporate the sector into the mainstream economy.