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Matambo calls on financial sector to pick GDP

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Finance Minister, kenneth Matambo

Finance Minister Kenneth Matambo has announced that government is committed to support financial service sector to prop up the country’s Gross Domestic Product (GDP).

Currently contributing over 13 percent to GDP, Matambo said the sector has potential to increase its share. “Hence government’s interest in the sector,” said Matambo addressing delegates at the inaugural Botswana Insurance Holdings Limited (BIHL), Global Financial Summit.

The country has built a strong, resilient and fast growing financial sector underpinned by a robust regulatory framework. The finance minister who is expected to step down next year, noted that government’s commitment to the financial service sector has this year been buttressed by a number of laws passed in July relating to money laundering activities.

In addition, Matambo said the continued investment in the development of information, communication and technologies (ICTs) backbone infrastructure is also to support local banks’ rising appetite for online services.

The Minister said the country remains committed to maintaining micro-economic stability to spur private sector participation in the economy. “Our vision is to become a high income country by 2036,” said Matambo, challenging the private sector to step forward and help government to develop the country, bemoaning the low levels of financial inclusion and shallow domestic capital markets.

He said the private sector should come up with more initiatives to develop further the local capital markets. The Minister’s sentiments were also shared by Martin Davies, Managing Director for Emerging Markets and Africa at Deloitte who has challenged the country to start dealing with its low manufacturing value add.

“How do we start to diversify beyond the single commodity economy,” quizzed Davies, adding that manufacturing increase is vital for low inequality across the country.

“Inequality results in bad public policy, as the state starts to believe and think they have to intervene more,” said Davies, highlighting that the country needs to move away from the absolute concept of state drive growth. Meanwhile, minister Matambo has applauded the private sector for leading economic dialogue in the country through events such as the BIHL Global Finance Summit.

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Market Street day supports local products

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Minister of Investment, Trade and Industry, Bogolo Kenewendo has encouraged citizens to promote and support local products thus contributing to employment creation and economic development.

Speaking during the ministry’s Market Street day on Saturday, the trade minister said the ministry came up with the initiative to expose local products to the national market. “The plan is to keep growing so that we get Batswana products in the shops and get Batswana to know the products in the shops,” said Kenewendo. Market street day was initiated last year as a platform to add on to the continuing efforts to grow local businesses. This year, retail sector, including Shoprite, Choppies and Ackerman’s from South Africa participated in the exhibition.

Kenewendo pointed out that supporting local products helps reduce export of jobs. “Most of Batswana will say they don’t want to buy locally produced goods because they are of low quality, we need to buy from them so that they grow. When we buy products from other countries we are exporting jobs, why should we export jobs?” she asked rhetorically. Economic diversification drive should not be a Government initiative alone, only but all citizens should contribute, she concluded.

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Botswana behind in ease of doing business

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Botswana has been challenged to improve easy of doing business for the country to remain competitive amongst its peers.

The Director of Investor Facilitation and Relations at Special Economic Zones Authority’s (SEZA), Neo Mahube recently told delegates at the two- day investment symposium dubbed Doing Business in Botswana, Transitioning Botswana that the country needs to be globally competitive.“The world is growing better than we are, there is something that we are not doing right, despite our political stability and sound economic policies,” said Mahube.

Currently, Botswana lags behind Mauritius, Zambia, Kenya, South Africa on the ease of doing business, according to the latest World Bank’s Ease of Doing Business report. Mahube said bottlenecks that investors and local startups face to register a business should be resolved.

“We need to transform the way we are doing business, if we are to bring businesses to Botswana,” said Mahube, adding that the country needs to be as efficient as possible to start a business, apart from improving credit efficiency.

She however applauded government for legislation amendment initiatives that have already been put in place ahead of the transformation journey. Mahube said through transforming the ease of doing business the country has potential to create employment.

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