Rural investment strategy on the cards

Keikantse Lesemela | Monday July 28, 2014 17:28

The motion, moved by the Member for Parliament (MP) for Shoshong, Phillip Makgalemele noted that rural areas must compete for investors.

“I am much aware that rural areas do not exist in isolation, but they are an integral part of Botswana. Therefore just like cities, towns and urban areas of this country they must compete for investors,” said Makgalemele. He said the newly reconstituted Rural Development Council (RDC) advocates for a strong focus on rural development communities to a level where they become resilient and enterprising.

 “This also involves transforming rural communities to not only identify but also to take advantage of opportunities in the evolving technology and infrastructure to advance their socio economic status,” Makgalemele said. His motion also called for targeted approach to attracting investors to the rural areas. He said areas identified for special economic zones are predominantly urban areas but there are challenges for the strategy to succeed. “In my view the positives for rural areas investments to succeed by far outweigh the challenges and setbacks that could have been experienced thus far in our country. Rural areas can be assisted to develop a menu of comparative advantages,” said Makgalemele. He noted that agriculture could be the main commodity for attraction of investors in rural areas.

“We can for example lobby an investor to plough 100 hectares of beans in a rural area and commit to a contract farming instrument with Botswana Agriculture Marketing Board (BAMB). Given our integrated farming policy, the investment can also undertake other farming projects,” he said.

Makgalemele said the government has enough resources to attract investors to the rural areas, but what is needed is the targeted approach. “Our diplomatic missions have made contact with a series of investors in the renewable energy space. This will also serve as a huge boost for rural areas investment, especially if government can facilitate signing of power purchase agreements with various communities in the rural areas,” said the Shoshong legislator. Before the motion passed, fellow backbenchers, however, poured water on it. 

The MP for Francistown South Wynter Mmolotsi, said government was unable to develop this strategy as it is investor unfriendly.

“We can try to call investors but they are suffering in Botswana, they are forced to share their profits with the ruling party. Right now the government cannot develop this strategy,” said Mmolotsi, the Umbrella for Democratic Change MP.

The MP for Letlhakeng West Ngaka Ngaka shared Mmolotsi sentiments. The ruling party MP said the government is not capable of developing this strategy because there is lack of infrastructure in the country, something that scares off investors. He said government should invest more on infrastructure development if they have to attract investors.

The assistant minister of Trade and Industry Keletso Rakhudu disagreed with the MPs. He supported the motion saying that the government has developed some strategies to attract foreign investors.