1. The State of the Nation address by His Excellency gave a detailed account of the state of our economy outlining achievements, challenges and prospects for the future. BOCCIM was gratified to hear the President give an account of the initiatives his government is undertaking in partnership with the private sector. This demonstrates that the President recognises the importance and strength of the government’s partnership with the private sector in economic development.

Productivity and Work Ethic

2. BOCCIM notes with appreciation the emphasis that the President placed on the vexed issues of poor work ethic and low productivity in his address. This could not have come at a better time because Botswana’s prospects for economic growth, diversification, jobs and prosperity depend on embracing a strong work ethic and productivity as a matter of priority.

3. It was therefore important for the President to highlight these weaknesses because improvements in the work ethic and productivity are pivotal in overcoming the challenges posed by our small domestic market and our geography as a landlocked country.

4. We hope that by highlighting these factors, the President paved the way for an earnest national discussion to improve the nation’s poor work ethic and below average levels of productivity.

Economic diversification

5. Looking at economic diversification strictly from the share of non‐mining GDP, it is indeed true that the economy is becoming diversified. However this has largely been achieved on the back of firms focusing on the domestic market. In view of the rather limited domestic market, BOCCIM reiterates the views expressed at the recent National Business Conference in Francistown to anchor the diversification strategy on export competitiveness and openness to the global economy. Moreover our policies should be supportive of a business‐friendly environment and help SMMEs to penetrate export markets.

6. His Excellency the President also noted quite correctly that ‘productivity is not about doing more. It is rather about focusing on things that will yield us the greatest return”. BOCCIM therefore encourages the Government to ensure that, going forward, all chosen public projects yield positive returns especially in the current difficult economic climate. The involvement of the private sector in financing and managing infrastructure projects, and increasing such private sector involvement should also be considered in the spirit of public private partnerships.

Privatisation

7. BOCCIM also appreciates the President’s update on the privatisation of Botswana

Telecommunications Corporation especially the indication that the process is now gathering pace. We are pleased that the Government does not want to be saddled with activities that should be left to the private sector. We are therefore optimistic that the potential gains of improving economic efficiency and opening up opportunities for the private sector through privatisation are about to be realised. We also hope that the Government will continue to build the political case for the privatisation of state owned enterprises.

Conclusion

8. Botswana’s economic diversification success hinges on export competitiveness and an implementation strategy that is results‐oriented. Therefore the development of export competitiveness is paramount in the light of the small domestic market. It is also imperative to open up the economy to skilled immigrants, foreign capital and technology. The urgent review of the immigration rules on the points based system is also welcome and brings with it speed and transparency in the issuance of work and resident permits including visas.

9. BOCCIM reaffirms its readiness to work with the Government and other interested parties to ensure that the private sector becomes the engine that creates economic growth, jobs and transforms many people out of poverty.

The Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) is a non‐profit business member organization, established in 1971 and registered under the Trade Unions and Employers’ Organizations Act Of 1983.The organization has a membership base ranging from small to medium and large businesses.