*SPEDU says delayed off-take law scares off investors
*Only 58 companies benefited from 30% govt off-take framework
The long awaited legal backing of a government off-take policy, which should be forcing state departments and parastatals to buy at least 30% of their goods and services from local manufacturers and SMEs, is mired in uncertainty, leaving investors in the Selebi-Phikwe region frustrated.
Officials have warned that uncertainty around the policy is undermining industrial growth and job creation.
Addressing the Parliamentary Committee on Statutory Bodies and State Enterprises last week, Selibe Phikwe Economic Diversification Unit (SPEDU) Acting Chief Executive Officer, Othata Batsetswe, said while the organisation’s incentives framework remains strategically sound, several structural challenges are preventing it from achieving its full potential.
“Chief among our challenges is the delayed gazetting of the 30% government off-take policy into a legally enforceable Statutory Instrument, which continues to create uncertainty for investors seeking predictable and guaranteed market access,” he said.
While companies are being issued with off-take support, Batsetswe said, the absence of legal force has resulted in inconsistent implementation across government institutions.
“The incentives are structured to reduce the cost of doing business for investors while simultaneously creating conditions for long-term industrial growth, local supplier participation, and employment creation,” he said, noting that these incentives play a critical role in improving investor confidence, reducing operational burdens for emerging industries and supporting import substitution.
Over the reporting period, SPEDU facilitated the five percent corporate tax incentive for 37 companies operating across manufacturing, agribusiness, and value-addition sectors, while 58 companies benefited from the 30% government off-take framework.
SPEDU’s industrial investment pipeline is currently valued between P5.9 billion and P6.8 billion, facilitated over 157 enterprises at an investment value of P3.4 billion and supported the creation of more than 8,000 jobs while positioning the region as Botswana’s emerging climate- smart industrialisation hub.
Batsetswe however said a number of barriers continue to limit the impact of these initiatives. He pointed to high electricity costs, particularly maximum demand charges, a shortage of serviced industrial land, delays in financing approvals and stiff competition from imported products as some of the concerns. “Therefore we continue to advocate for a strengthened and more aggressive incentive regime aligned with global Special Economic Zone best practices,” he said.
The proposed measures, Batsetswe said, include enhanced fiscal incentives, improved industrial infrastructure support, reduced utility burdens, and stronger protection for local industries to boost competitiveness and export growth.
Meanwhile, SPEDU’s land bank report also paints a troubling picture of slow industrial development despite strong investor interest. The institution controls 103 plots comprising 28 large-scale heavy industrial plots, 74 cottage industry plots, and one commercial plot earmarked for economic development.
Within the heavy industrial category, 46% of the plots have been allocated to investors, while 29% remain vacant and 18% are reserved or blocked for future strategic projects. Despite this allocation progress, only four have been fully developed, leaving 86% undeveloped.
More concerning is the lack of infrastructure, with over 92% of heavy industrial land still unserviced, with only two plots partially serviced and none fully serviced.
“This remains the single largest structural constraint affecting investor conversion, project implementation, and industrial take-off within the SPEDU region,” lamented Batsetswe.
The cottage industry portfolio paints a similar picture of high potential constrained by infrastructure and implementation gaps with 38 plots out of 74 allocated while 28 remain vacant. However, only four plots are fully developed and another four partially developed, meaning approximately 89% remain undeveloped despite allocation.
None of the cottage industry plots are fully serviced, with all plots currently classified as only partially serviced. Nonetheless, across the entire SPEDU land bank portfolio, only eight plots out of 103 are fully developed, representing an overall development rate of approximately 7.8%, while approximately 35% of the total land bank remains vacant.
