BEDIA out to woo foreign investors

TUMELO SETSHOGO
Correspondent | Wednesday May 14, 2008 00:00

 

BEDIA chief executive officer (CEO) Dorcas Makgato-Malesu was speaking at a news conference at which she outlined her strategic plan for the country's investment body last week.

Since its inception nine years ago, BEDIA has brought combined investments and expansions to the tune of P692, 27 million, creating 9,314 jobs. New investments stand at P357, 77 million, creating 6,079 jobs and expansion investment of P334, 5 million that created 3,235 jobs.

Makgato-Malesu, who replaced BEDIA's founding chief executive officer Mmasekgoa Masire-Mwamba last November, said: 'We want to at least attract investment of half a billion Pula every year. This is the target we have set for ourselves.'

She said the total investments brought by her authority after nine years of existence is not enough 'looking at the fact that setting up the organisation took some time for the results to come.

Last year (2007/2008) alone the performance of BEDIA in terms of combined investments and expansions gave a total capital investment of P290 million, creating 1,980 jobs. New investments were P121 million worth of 955 jobs and expansions of P169 million, creating 1,025 jobs.

The value of exports stood at P134, 2 million with increased market access to Democratic Republic of Congo (DRC), Angola, South Africa, United Kingdom (UK), Mozambique and Tanzania for the past nine years. In 2007/2008 financial years alone the value of exports stood at P32, 2 million.

Makgato-Malesu said the new strategies and change in approach will make it possible for them to meet the half a billion Pula target every year.

She said the shift in approach and strategy to yield greater results will entail coming up with new business ideas 'to strengthen what we have been doing'.

'Futuristic comprehensive research, investor targeting, which will focus more on selling opportunities, are some of the approaches we will employ,' said Makgato-Malesu, adding that targeting markets with potential, product differentiation and market streamlining are part of the strategy as well.

Makgato-Malesu mentioned that they want to reduce interfacing with the investors in terms of applying for work and resident permits and procedures in registering companies.
She commended government for giving BEDIA two Statutory Instruments (SI) of processing the application of work and resident permits for the chief executive officers and six management positions without going through laid out channels.

The six positions are: finance, production, quality development, operations and marketing managers. The SI for the CEO was given in 2003 while for the six managerial positions authority was granted in February this year.

'The SI gives us the authority to screen these people and make recommendations to the Commissioner of Labour to issue them with work and resident permits,' said Makgato-Malesu, adding that this will help her organisation reach its target.

Other approaches to help BEDIA realise the target are: improve technical expertise, handling of all enquiries by investors, turnaround times, and to raise Botswana to higher platform of operational efficiency.

Meanwhile, Makgato-Malesu revealed that they have identified sectors and opportunities in the fields of glass and beef 'with studies being completed in these two areas'.

Pipeline studies for more opportunities are in the field of education services, where a consultant has been appointed to start work. 'Health services study is also planned to commence this financial year,' she noted, adding that these will help investigate opportunities and market them to potential investors.

'Coordination of the hubs will be led by BEDIA for promotion,' said Makgato-Malesu.
The BEDIA boss said they have intensified working relations with the stakeholders for mutual benefit. She said they are developing and implementing a Memorandum of Understanding (MOU) with agencies to identify areas of cooperation.

The Botswana market, which is limited due to the small population and the fact that the country is landlocked, is one of the challenges faced by BEDIA in its endeavours to lure investors.

Other challenges include the need to intensify the hunt for foreign direct investment (FDI) and to increase competition for 'export market access because Africa Growth and Opportunity Act (AGOA) does not include Botswana alone but other countries such as Namibia,' she said.

The way forward for BEDIA is to intensify advocacy for an improved investment environment by engaging government in the process. 'Commitment from government to remove impediments, the current review of our Act and the process of developing an over-arching investment law are also some of the was forward to strengthen our campaign,' she added.