A report by the Commonwealth of Nations Network has since outlined countries that rank highly on their Ease of doing business index over the last Decade.
To mention a few purely based on how easy it is to start a business; New Zealand, Australia, Canada, Singapore and Rwanda.
Referencing back to last week's feature, Rwanda ranked in the top five of Africa's most attractive investment destinations and this calls for a right to benchmark their policy and economic instruments that could push Botswana forward as well. To give an overview, the success of investor attraction in a Commonwealth country can be well attributed to economic development agencies, which represent a mandate from the government to promote economic growth and development.
Botswana needs to think of this through its special purpose vehicles that guide investment promotion (Botswana Investment and Trade Centre – BITC), export promotion (Botswana Exporters and Manufacturers Association – BEMA), venture capital (Botswana Development Corporation – BDC) as well as government & private sector promotion hub (Public Enterprises Evaluation and Privatisation Agency – PEEPA). We particularly mention these as they have a strategic objective in which they play towards the overall economic agenda; further complimented by other local developmental strategic units like the Special Economic Zones Authority (SEZA) which are meant to incentivise the development of local industrialization.
Coming back to the discussion, we would like to benchmark some of the key efforts placed by other similar African nations that seem to harness goodwill from strategic alliances and implement innovation in today's tough economic climate. Rwanda has over the years embraced technology and big data; this has allowed them to integrate new uses of technological advancements within its regulatory frameworks to better service a nation that was once hard-hit by poverty and it is using its key economic sectors to move out of those lines of poverty.
Rwanda has collaborated with the World Economic Forum through its aviation authority to implement Drone technology, which, however, is a very foreign concept to us in Botswana and may result in many remaining sceptical of its use locally due to the nature of drones having been used in times of war in the middle east. The key for Rwanda was to use this as an instrument for fulfilling the government's shortfall in delivering services to its people and integrating innovation into its various sectors through prudent regulation and formulation of frameworks that guide such technology.
Some of the key benefits offered by drone technology have been the provision of medicinal supplies in remote villages, irrigation in agribusinesses, infrastructure inspections and surveying land for other industrial developments including mining just to name a few. This goes well beyond job creation throughout the value chain, not just from manufacturing itself, but also creates lucrative opportunities for those in the aviation industry. As usual, budget constraints are the norm of conversations in Botswana’s development agenda, however, for such initiatives to be seen through, there should be an opportunity costs assessment to weigh needs against wants, for example, budgets allocated to health and defence versus trade and industry as well as science and technology.
Adding further context to our promotion agencies, PEEPA has a specific mandate to advise the government on privatisation strategies that feed into the government's overall agenda to better service economic priorities. There needs to be a balance as well towards where government should have room to induce industries as well as to allow the private sector to participate fully. We can agree that in building congruence, the government brings in the capital and the private sector brings in the expertise; so it's not just enough to always issue out Expressions of Interest and have never-ending discussions at the government's expense with minimal to no action of national initiatives and unfortunately this is where Rwanda has differentiated itself and been a leader in the various industries compared to us.
Arguments have risen among industry leaders as well that there are some key sectors that which government needs to let go of and allow the private sector to participate in fully. Some of which are as follows: housing, aviation and telecommunications just to name a few. It is very key for the private sector to realise its potential and tap into market needs while government plays its role as a regulator which monitors a fair business environment that attracts foreign investors and a livelihood that's conducive to the modern age.
It's quite often constructive to engage with the relevant stakeholders on how to find and harness opportunities by joining in the great realm of economic needs that other emerging economies are tapping into and this can be sought within a visible time frame but the initiative needs to come from our leadership.
*Chilo Ketlhoafetse is a chartered accountant and seasoned finance specialist focusing on economic issues affecting the local business environment. Commentary and feedback can be sent to [email protected] and Twitter @chilo_ket
