Govt Urged To Cut The Business Red Tape

Lebogang Mosikare | Monday May 29, 2017 15:40

Ishmael Radikoko told attendants recently at a UB business seminar that the Global Economic Monitor (GEM) survey shows that many factors that stimulate entrepreneurship in the country save for physical infrastructure have failed to encourage business in Botswana. The seminar was held under the theme, “Innovative business financing during tough economic times”. The GEM survey is the world’s largest global survey on entrepreneurship with an estimated 74% of the world’s population and 87% of world’s total Gross Domestic Products (GDP).  Radikoko explained that even though GEM is pleased with the country’s infrastructure which has one of the fastest growth rate in Sub-Saharan Africa, the road network and telecommunications among other infrastructure in Botswana, is not found in some areas of the country which hinders business growth.

He said the GEM survey found out that other factors which help to stimulate entrepreneurship like entrepreneurial finance, Government policy, business education, entry regulations, commercial and legal infrastructure and culture and social norms need to be reviewed with a view to making them business and investor friendly.

The GEM survey is in stark contrast to the World Bank report, which says there is an encouraging regulatory environment, good infrastructure, low corruption, low tax regime and stable political climate, which encourage entrepreneurs to start businesses in the country.   The finance expert said many countries in Africa are still recovering from the effects of the 2008 world economic downturn therefore entrepreneurs should come up with innovative ways of financing their enterprises during this era of difficult economic times. Radikoko also lamented the high cost of starting a business in Botswana, which he said makes it difficult for many aspiring entrepreneurs to penetrate various business industries.

He stated that there are many sources of business financing like buying shares, using internal earnings and others, but cautioned entrepreneurs to use the most cost-effective methods of financing their businesses.  Earlier when giving welcome remarks, the deputy mayor of Francistown Godisang Radisigo thanked UB for continuing its journey of improving the social conditions of Batswana and the world at large by holding business seminars.

Radisigo hailed the seminar as a forum where UB experts and the business community share ideas of how to improve the country’s business environment for the betterment of people’s lives.

He said the City of Francistown, which has a vision of becoming an investment destination of choice, benefit a lot from such interactions and would fully utilise the information from the experts.