In conversation with
Dr. Racious M. Moatshe

FDI Spotlight: The brand of your organisation changed in 2015; what was the reason for this transition, what would you highlight as the renewed role of Business Botswana and how successful have been in engaging with the local business community?

Dr Racious Moatshe: The premise of the transition was based on the fact that the organisation, previously known as the Botswana confederation of commerce, industry and man power (BOCCIM), left many businesses, predominantly SMEs, out of representation. Given the dispensation of the organisation’s business grouping, SMEs cannot be left out as they are a significant part of Botswana’s economy and business environment.

Therefore it was decided that BOCCIM rebrand to Business Botswana and change the mandate. The new mandate ensures that the bigger companies are still given adequate support and representation, but SMMEs within Botswana will be given more attention. We aligned Business Botswana with the Apex model, taking a decentralisation approach focusing on setting up regional chambers of commerce.

We have so far identified five regions where we will set these chambers up, and the first one will be up by October. Currently, businesses do not have a main group or office in their area where they can go when they have problems or need information. Having these chambers will mean businesses do not have to travel to government offices in various towns, and they will be able to come together in one place.

What do you think is Botswana’s unique value proposition and what sector do you think the country can develop into a hub?

Dr Racious Moatshe: The agriculture and tourism sectors have a lot of potential.

However, there is a lot of work to be done in both of them. In the agriculture sector, we need to commercialise farming and support our farmers a lot more, especially the beef farmers. Regarding the tourism sector, we need to do a lot more to market ourselves, and this marketing needs to be targeted towards foreign investors who will put money into the country to help it grow and develop.

The government also needs to loosen their control and influence on these sectors. They need to get rid of some of the policies currently in place to allow businesses within these sectors to be a lot more successful. Doing this will, in the long run, boost Botswana’s economy.

How do you see your role as a peace keeper and policy maker with the public and private partners within Botswana?

Dr Racious Moatshe: We simply need to form a proper partnership with government, where we have the independence to talk about issues and policies openly and honestly.

The issue of shareholding and investing in Botswana’s businesses is a complex one. We have had a lot of unpopular opinions about many policies and regulations in the past; we have tried to remain as objective as possible and will always do so, but the government needs to do the same.

As Business Botswana, we can keep having the conversations we have been having with the government to lobby for companies so that their issues are known. We are making a big push for the SMEs in the country now because they are usually not heard over the voices of the bigger companies.
What do you believe is the role of foreign investors in Botswana and how important are their investments to the country’s business environment?
Dr Racious Moatshe: They are extremely important. We have to increase the number of foreign investors we currently have to grow and develop the country, as well as improve things like our education system.

While Botswana’s education system is good, there are many areas where it can be improved. We especially need to educate people on the importance of entrepreneurship. The country needs a lot more entrepreneurs, especially ones that have a well-rounded education. Foreign investors can give the capital to build these types of institutions, and assist with the correct knowledge and skills transfer.

What can be done to encourage a more intra-African trade and SADC mind-set regarding business development and partnerships?

Dr Racious Moatshe: In my opinion, for the SADC region to work together in a better and more organised way, we need to identify the capabilities of each of the member states. We need to be able to create viable entities based on those capabilities and what each country is good at.
There is a lot of talk about free trade among these countries, but there is also a lot of competition. If we want SADC to truly reach its potential, we need to let go of this competition mind-set. For example, if South Africa has a good manufacturing sector, other countries should find a way to work with them to see how that can benefit the region as a whole.

What role do you see technology play as an enabler for economic diversification?

Dr Racious Moatshe: We have definitely realised the importance of Industry 4.0; innovation, leveraging what is available digitally and making use of technology cannot be over-emphasised.

However, Botswana’s business community has to first deal with the issues at hand. Once that has been achieved, we can go full steam ahead with the implementation of digital platforms and leverage off the technology that is available to us.

We have been working on updating the Private Sector Development Programme (PSDP), which was launched in 2013 under the framework of the Private Sector Development Strategy (PSDS), under the Ministry of Investment, Trade and Industry (MITI) and Business Botswana (BB) in partnership with the EU Delegation and the Centre for the Development of Enterprise (CDE).

The PSDP is meant to address some key areas of the PSDS and aims to stimulate and sustain growth through diversification of the economy while building the capacities of institutions and human resources that support the private sector.

Within this framework, we launched a market intelligence information system (MIIS) in June of this year. The MIIS will be operated by Business Botswana and will focus on beef, tourism, crafts and jewellery sectors. The aim of the MIIS is to provide information on domestic and international markets and how to access and grow these sectors in Botswana with an emphasis on SME development.

Out of 10, what is your confidence level regarding the current economic development of Botswana and the ability of Business Botswana to play an apex role with the country’s development?

Dr Racious Moatshe: The government is not doing a bad job, notwithstanding the issues that are impeding the attraction of foreign direct investment (FDI) and related business ventures.

However, in my opinion, for the government’s plans to work more effectively, they need to make careful considerations when talking of the leadership who will succeed the current president. They need to develop a radical transformation agenda that focuses on where Botswana’s niche is and where the opportunities for investment are. This agenda also needs to look at what sort of conducive business environment we need to find our niche, what type of investor will be willing to participate in it, and then develop robust plans to set it in motion. The potential within the government and Botswana is definitely there; all we need is the right type of leader, who will take a radical approach, for it to happen.

Currently, my confidence level out of 10 is 6.5. I would like to go higher, to at least 8, but I am not yet very certain about the support that this radical agenda will be given.