BCM steps up import substitution drive
Isaac Pinielo | Tuesday October 14, 2014 08:00
According to the Chamber of Mines, the project seeks to combine the purchasing power in the mining industry, by ensuring that local mining companies are actively involved in the procurement of goods and services in the mining industry.
The project also seeks to attract foreign direct investment (FDI) by luring foreign firms that manufacture mining equipment that not available locally.
Project chairman, Ronald Yane, explained that the initiative would drive cost savings and efficiency improvement initiatives for the mining companies.
“This will see massive citizen economic empowerment given its objectives of development of citizen owned companies and development of joint venture companies,” he said. Yane added that the project is expected to benefit Batswana in job creation and beneficiation.
Speaking at the launch, Minister of Trade and Industry, Dorcas Makgato-Malesu said the significance of the project is its potential towards the reduction of the goods that are imported from abroad, transformation of the industrial landscape and employment creation.
Official figures show that in the year 2009/10 the total value of imported goods was over P28 billion, with P14 billion for capital goods, which are used in the mining operations.
These figures have since grown with the value of imports for 2013 at P69.6 billion, while that for capital goods and machinery increased to over P20 billion. Out of these figures was for capital goods including machinery.
Makgato-Malesu noted that if the manufacturing of capital goods and machinery can be facilitated in the country, it would make a huge difference in terms of economic growth, diversification of locally manufactured products and employment. She indicated that her ministry would support the Botswana Chamber of Mines where it will be facilitating foreign direct investments. She also urged investors to align their plans with the launched project.
Also present at the launch was Minister of Minerals Energy and Water Resources, Kitso Mokaila, who pointed out that the business development project would ensure secure supply of goods and services required by the mining industry.
“I am confident that through this forum we have a good opportunity as a country to lure reputable businesses that have already made a mark in the mining industry to come and set-up in Botswana through partnership with equally passionate and dedicated local businesses,” he said. The minister however indicated that some of the shortcomings that hindered most of the local companies from succeeding in penetrating the mining industry supply chain as service providers are related to the standard or quality of such goods and services, and uncompetitive pricing.
He further said there was need for significant participation of citizen-owned companies in the supply of critical material to the mining industry.