Ms Pauline Monare Director, EDD, Ministry of Trade and Industry

Republic of BotswanaEuropean Union

What is EDD?Strategic ApproachWhat is Competitiveness? What determines Competitiveness?Key Factors of ProductivityLink between PSDP & EDD

EDD STRATEGY

• Economic Diversification is one of the key strategic areas of focus for the Botswana economy.

 • Adopted by Government in 2010, the Economic

Diversification Drive (EDD) Strategy puts emphasis on increased capacity for non-mineral exports and private sector led growth.

 • The EDD Short Term Strategy is based on the use of

Government purchasing power to drive economic diversification, with total Government purchases through EDD procurement program recorded at P1.8 billion as at 31st March 2013;

• The EDD Medium to Long-Term Strategy envisages diversification of the economy through the development of sustainable and globally competitive enterprises that need little or no Government protection and support.

4

Strategic Pillar / Thematic Area Key Result Area

1. Quality Control Standards & Production

Increased Productivity; CompetitivenessImproved Products Quality; Knowledge and Skills

2. Research and Development Improved availability of industry dataCoordinated and focused research

3. Technology Development, Transfer and Innovation

Improved Technology Access and Usage; Improved Skills Transfer; Improved innovation and Creativity; Improved Collaboration and Partnerships

4. Entrepreneurship Development Improved entrepreneurship culture and capacityImproved knowledge of the sector and of global trends

5. Investment and Finance Improved access to competitive funding; FDI inflow and; Improved infrastructure and logistics

6. Export Development and Promotion

Increased export earnings; export market; and increased domestic production and consumption

7. Sectoral Development and Business Linkages

Increased participation of firms in the economy; supply chain linkages (clusters); Increased employmentPoverty Eradication

 •Botswana is a competitive location to the extend that firms operating in Botswana are able to compete successfully in the global economy, while supporting high and rising wages and living standards for the average citizen.

•Competiveness depends on improving long-run productivity with which firms can do business in the country: 

• Productivity of existing employees

• High participation of working age citizens in the workforce

 

What is Competitiveness? – Prof M. Porter

 Country’s endowments, including

natural resources;

geographical location;

Population; and

country size, Create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments.

What determines Competitiveness?

MACROECONOMIC COMPETITIVENESS

•Sound Monetary and Fiscal Policies;

•Human Development;

•Effective Political Institutions 

Sets the economy-wide context for productivity to emerge, but it is not sufficient to ensure productivity. 

PRODUCTIVITY DEPENDS ON:

Improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of regions and clusters;

Microeconomic Competitiveness – driven by three factors:

Quality of the Business Environment;

State of Cluster Development; and

Sophistication of Company Operations and Strategy

LINK BETWEEN PSDP AND EDD

PSDP Result Area 1:

Strengthen Capacity and Competitiveness of SMMEs and Community Based Organizations. PSDP Result Area 2:

Improve service delivery of targeted Intermediary Organizations and Business Development Service Providers.

PSDP Result Area 3:

Business Environment – reduction of red tape and pilot of accessing finance. 

Thank you!