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Botswana Government Calls for More Foreign Investment

13 June 2005

Botswana's Vice-President Lt-Gen Seretse Khama Ian Khama has called for more investments in export-oriented sectors such as textiles, garments, information technology and tourism.

Deputy Secretary-General Florence Mugasha (left) joins delegates at the Bostswana Investment Forum.

He told more than 150 London-based businesspeople and investors that his government is embarking on a programme of diversification to encourage investment in a wide range of sectors, in addition to minerals and beef exports.

Lt-Gen Khama was speaking at the opening of a two-day investment forum, which began on 13 June 2005 at the Commonwealth Secretariat's headquarters in London, UK. At the forum, titled 'Botswana - Africa's Most Competitive Investment Hub', he welcomed the initiative by the United Kingdom to put Africa on top of the agenda to deepen UK trade relationships with all countries of the region. He said this move will provide an economic stimulus to development and help to raise the standard of living in free, dynamic economies.

Lt-Gen Khama stated that Botswana has been one of the world's best performing economies for the past three decades. Citing the World Economic Forum's Africa Competitiveness Report 2004, he said Botswana was ranked number one in Africa in terms of growth and competitiveness with sustained economic growth averaging 6.4 per cent annually over the past five years. He said: "This achievement is attributed to a combination of various factors including good governance, accountability, democratic principles, political stability, an educated workforce, and sound investment in social and physical infrastructure."
 
The Vice-President also highlighted the role of small and medium enterprises (SMEs) as engines of growth in economies, representing more than 80 per cent of industrial enterprises in most developing countries. He said: "Their role in building a solid industrial base is very significant as they represent a high potential sector for employment generation and source of livelihood to millions of people not only in developing countries, but in developed countries as well."  

Daniel Moroka, Botswana's Minister of Trade and Industry, stated that there is potential for growth in its economy, which consists mainly of SMEs. He said Botswana imports more than US$5 billion worth of goods and services annually to meet domestic market demand.

Commonwealth Deputy Secretary-General Florence Mugasha lauded the effort of Botswana to diversify its economy in order to take advantage of globalisation. She said that Botswana's impressive economic growth is a model for the Southern African Development Community region and Africa in general.