In a year marked by economic challenges and market volatility, the Botswana Investment and Trade Center (BITC) has reported a remarkable surge in domestic investment.
Initially setting a target of P1.9 billion for the 2023/24 financial year, BITC surpassed expectations by generating P3.6 billion in local investment across various sectors, including production, manufacturing, mining, and drilling services.
The BITC, tasked with attracting foreign direct investment (FDI) and stimulating local investment, also exceeded its FDI target, achieving P2.5 billion against a goal of P2.4 billion.
This investment influx came from diverse sectors such as aviation services, agro-processing, mining and power generation, and diamond cutting and polishing.
As Botswana seeks to diversify its economy and reduce reliance on mineral revenue, particularly diamonds, BITC has made significant strides.
The agency reported an overall export value of P6.044 billion, surpassing its initial target of P4.5 billion.
The exported goods included automobile batteries, ignition wiring sets, veterinary medicines, clay bricks, and electrical cables, reaching various destinations in Africa, Europe, and Asia.
This economic activity resulted in the creation of 6,636 jobs, far exceeding the target of 3,750.
BITC’s Chief Executive Officer, Keletsositse Olebile, emphasized the need for continued efforts to diversify the economy and reduce dependence on diamond revenue.
“We have set ourself a challenge to diversify the economy and to heighten other sectors and dilute the influence of diamonds by bringing in investment. Real gross domestic product is below the figures which will make us a high income nation therefore more should be done. Competition for FDI in the global space is fierce but the help from president Masisi has been immense, “said Olebile crediting President Masisi’s support for the center’s success.
However, Olebile also noted that the BITC would not host the Global Expo this year due to certain constraints.
One sector identified by Olebile as underexplored is pharmaceuticals, which currently generates only $14 million locally.
Expanding this sector could potentially substitute $190 million worth of imports, presenting a significant opportunity for growth.
In a strategic move to bolster industrialization, BITC has partnered with Debswana Diamond Company to build a repair and rebuild center for mining machinery.
This initiative is expected to create thousands of jobs for Batswana and reduce the substantial costs associated with outsourcing repairs.
Debswana’s Head of Citizen Economic Empowerment Programme (CEEP), Wanatsha Moakufi, highlighted Botswana’s strategic location within the Southern African region, making it an ideal hub for such a center.
The potential savings and local job creation are substantial, given that Debswana currently spends approximately P2 billion monthly on machinery repairs, with significant expenses on maintenance and parts.
Further, Jwaneng Mine as an example operates 59 dump trucks with the cost of one 300 tonnes Komatsu 930 being P67 million without tyres.
Over P1.3 million is spent on maintenance of one truck every single month while one tyre costs P580 000.00 and a truck rides on six tyres which lasts for about 9 months.
“Looking at the amount of money that mining operations, including Debswana, are sending outside the country particularly to South Africa for repairs and rebuilding of their equipment and machinery, it goes to billions.
The repair and rebuild services in the region is done in South Africa. This includes business from local mining operations here in Botswana.
We believe we can capture a significant portion of this business and build the capacity to attract clients from across the region which will create thousands of jobs for locals.
We will not only be servicing our mines but other areas from DRC, Namibia and Angola and as a country in the centre we should be able to exploit this opportunities,” said Moakufi, during the BITC media engagement session explaining that Debswana and BITC are currently developing a robust business case, which will be submitted for approval before a tender is issued for private sector participation.
With Botswana’s vast mineral resources, this partnership between BITC and Debswana represents a promising step towards a more diversified and resilient economy.
The development of a robust business case and subsequent private sector participation will be crucial in realizing the full potential of this initiative.
As Botswana continues to harness its natural resources and strategic location, such efforts could pave the way for sustained economic growth and a reduced dependency on traditional revenue streams.
This can be a good legacy project for Debswana with functional mines such as Motheo Copper, Khoemacau , Morupule Colliery ,Jwaneng, Orapa, Letlhakane diamond mines and Medie Coal Mine which can prove to be consumers of the repair center.
