BITC ENDS 2018 WITH A SUCCESSFUL GLOBAL EXPOBotswana Investment And Trade Centre (BITC) hosted
the 13th edition of Global Expo Botswana (GEB) themed,
“Seizing Opportunities Through Networking with Global
Business Leaders” from October 30, to November 2, 2018
at Fairgrounds in Gaborone. This year, GEB provided an
unprecedented opportunity for local businesses to meet
and develop strategic business partnerships with attending
international investors from across the world.
The attendance was marked by 230 exhibitors from 17
different countries namely, South Africa, Swaziland, Ghana,
Sweden, Zimbabwe, India, China, Cyrus, Ethiopia, Germany,
and Indonesia. The Expo also saw 4500 visitors.
The 2018 GEB was officially opened by the Vice President of
the Republic of Botswana, His Honour Slumber Tsogwane
and Vice President of the Republic of India, His Honour
Muppavarapu Venkaiah Naidu on October 31, 2018. The
Minister of Investment, Trade and Industry, Honourable
Bogolo Joy Kenewendo was also present to officiate at the
Private Business Growth Awards. During his keynote address
the Vice President stated that, “I am pleased that Global
Expo Botswana has made huge strides since its inception in
2006 and has over the years grown to be a premier business-
to-business exposition that serves as a platform for cross-
fertilization of business ideas and partnerships.
Some of the successful outcomes of this platform will be
shared with you tonight, as deserving winners of Grant
Thornton’s Private Business Growth Awards who have shown
growth in the areas innovation, market development, people
and culture, strategic leadership and financial performance.”
This year the 6th Investment and Trade Conference was
held prior to the Official Opening with international speakers
from as far as Greece, Italy, South Africa, the United States
of America (USA) and the United Arab Emirates (UAE). The
dialogue was themed, “How can Botswana successfully
diversify her economy from dependence on a single
resource.”
The Investment and Trade Conference ran concurrently
with various sector specific workshops such as Investment
Opportunities in the Selebi Phikwe Economic Diversificaion
Unit (SPEDU) Region, Export to Sweden Business seminar, the
United Nations (UN) Procurement Seminar, Doing Business
with Zimbabwe, and Korea-Botswana Business CSR Forum.
GEB also introduced the inaugural Investment Battlefield, an
initiative that served as a platform for local entrepreneurs to
pitch their business ideas in order to secure financing from
an investor.
NEWSLETTERISSUE 3DECEMBER 2018
The Minister of Investment, Trade and Industry Honourable Bogolo J. Kenewendo with the winners of the 2018 Private Business Growth Awards.
Contuinues to Page 3...
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EDITOR’S NOTE
Visit us at www.gobotswana.com
www.facebook.com/bitc
Botswana Investment and Trade Centre
@ Go_Botswana
www.linkedin.com/companies/ botswana-investment-and-trade-centre
@ Go_Botswana1
CONTRIBUTORS:Itumeleng TeseletsoTsogo EalotseNonhlanhla LedimoThuso PalaiTemo Ntapu
The third quarter of 2018/2019 was characterized with plenty of activities that are aligned to the newly launched Botswana Investment and Trade Centre (BITC) Corporate Strategy. The five-year strategy was launched on August 3, 2018 with the primary objective of attracting Foreign Direct Investment (FDI), growing Domestic Investment (DI), promoting Botswana’s exports and promoting the national brand. During this quarter, BITC hosted a successful Global Expo Botswana (GEB) which received reviews on its exponential growth. GEB has proven to be Botswana’s premier business expo and it provides a platform for the countries business community to network and build linkages with the international community.
The Q3 newsletter also reports on Botswana’s participation at the inaugural China International Import Expo and the opportunities created through our participation. This newsletter also reports on BITC’s continuous efforts to build partnerships with educational institutions such as Limkokwing University of Creative Technology. Botswana continues to lure global investors with the Ministry of Investment Trade and Industry at the helm of these efforts. Notably during this period, BITC engaged Compsol from South Africa and this is bearing fruits. Engagements were also done as part of the President of the Republic of Botswana’s state visit to the People’s Republic of China. In this issue, there is a thought leadership article that discusses the benefits for Botswana companies in being part of the Africa Growth Opportunity Act (AGOA).
As is the norm we are promoting and profiling one of BITC’s assisted companies and our focus this quarter is Maneblock (Pty) Ltd. Enjoy this edition and do not hesitate to give us feedback on our website: www.bitc.co.bw and on our various social media pages!
BOATAMETSE MONGATICommunication Specialist
BITC ends 2018 with a successfull Global Expo
Botswana courts German investors
MITI Minister leads a delagation to China
Global Expo in Pictures
BITC and Limkokwing sign an Agreement
Profiling our leaders: Mr K.K Lebotse
Botswana lures global investors
Opportunities through AGOA
Introducing a BITC assisted company: Maneblocks Holdings
Go to the land of blue sky opportunities
Continues from Page 1
The Official Opening was also held alongside the 2018 Grant
Thornton Private Business Growth Awards (PBGA). The
purpose of the awards were to honour private companies
that are BITC and Grant Thornton assisted with categories
in Investor of the Year-Manufacturing, Investor of the year-
Services Sector, Exporter of the year and lastly Investor of the
year-Expansions. The winners for the night were companies
such as Mpotsa, Chloride Excide, Northern Textile, Bokomo
and Flotek Botswan BITC hosted yet another successful GEB
that will pave way for a bigger and better Expo in 2019.
BOTSWANA COURTS GERMAN INVESTORS Botswana Investment and Trade Centre hosted an inward German Business Seminar on November 21, 2018. The forum was hosted to enable business interactions between the German delegation and their Botswana counterparts. The aim of this mission was to also develop new partnerships and to strengthen bilateral relations between the two countries.
The sectors of interest at the Business Seminar and
during the Business to Business meetings were mainly in
Manufacturing, Infrastructure Development, Information
Communication Technology (ICT), and Mining and Energy.
The Business Seminar which was held at the Gaborone
International Convention Centre (GICC) was officiated by
the Minister of Investment, Trade and Industry, Honourable
Bogolo Joy Kenewendo.
In attendence to introduce the German companies was
Permanent, Secretary in the Ministry of Economic Affairs
in Germany, Dr. Nussbaum. In her welcome remarks,
Honourable Minister Kenewendo highlighted that,
“Botswana is aware that the German economy is the largest
in Europe, and a critical market which Botswana can take
advantage in exploring trade and investment opportunities.
The two countries have been trading together and as at 2017
Botswana exported P38 million worth of goods to Germany
while for the same period Botswana imported P523 million
worth of goods such as motor cars, electrical equipment,
medical consumables, instruments and appliances.”
BITC Chief Executive Officer, Keletsositse Olebile presented
on the benefits of investing in Botswana, he explained
that since Botswana is often said to have an undesirable
population status for setting up huge investments, the
most opportune way is to access the Southern African
Development Comunity (SADC) region through Botswana.
Mr. Olebile further stated that Botswana is also the best
country to set up Business Process Outsourcing (BPOs) as the
workforce is 85 percent literate. The CEO indicated that BITC
is advocating for investment growth and seeking to pursue
greater collaboration and stimulate increased trade and
investment in the Selebi Phikwe Economic Diversification
Unit (SPEDU) region. In closing he implored the German
Business delegation to consider expanding to Botswana and
allowing BITC to be their freind in investment.
The Vice President of Botswana, His Honor, Slumber Tsogwane giving the key note address at the 2018 GEB.
The Acc Tech stall at the 2018 GEB.
The Vice President of the Republic of India, His Honour Muppavarapu Venkaiah Naidu on a tour of the stall. He is accompanied by the BITC CEO, Keletsositse Olebile.
4
The Minister of Investment, Trade and Industry, Honourable
Bogolo Joy Kenewendo led a Botswana delegation to
Shanghai, China for the inaugural China International Import
Expo from November 5 to November 10, 2018. The mission
was preceded by a series of engagements with the Chinese
business community with Botswana Investment and Trade
Centre (BITC) and the Government of Botswana in the past.
The engagements included a Botswana and China Business
Forum during an inward mission in July. A State Visit to the
People’s Republic of China by the President of the Republic
of Botswana, His Excellency Mokgweetsi E. K. Masisi where
BITC hosted a Botswana and China Business Forum in Beijing
in September was also a notable activity. There were about
50 Botswana companies led by His Excellency, President
Masisi.
The business potential that exists between Botswana and
China was further exploited by BITC’s participation at the
inaugural China International Import Expo. This participation
was an opportunity to sustain momentum to further
facilitate business between Botswana and China as the
CIIE event was an assertion by the Chinese Government to
promote the development of world economy and global
trade and achieve common prosperity. The Expo was officially
opened by the Chinese President Xi Jinping and attended
by Heads of States and Government, Ministers, Senior
Government Officials and Representatives from International
Organizations. The Official Opening was attended by the
Permanent Secretary in the Ministry of Investment, Trade
and Industry (MITI), Ms Peggy Serame. The Expo was not only
an open international cooperation platform built by China for
presenting national development achievements to all other
countries in the world and conducting foreign trade, but it
was also an international public event provided for all the
countries with the aim of discussing major issues of foreign
trade and world economy. BITC collaborated with Botswana
Tourism Organization (BTO) to manage the Botswana stall
which showcased Botswana products as well as its tourism
offering. The products which were displayed were canned
beef, basketry, semi-precious stones, moringa products as
well as cereal products; beans and sorghum.
A key part of the China International Import Expo (CIIE) was
the Exhibition and National Country Pavilion as the exhibition
brought together over 5000 visitors and exhibitors consisting
of eight exhibition halls consisting of Trade in Services;
Automobile, High-end Intelligent Equipment, Medical
equipment and Health Care Products, Apparel, Accessories
and Consumer Goods, Diamond and Gems Pavilion, Consumer
Electronics and Appliances, Food and Agricultural Products. In
addition to the Expo, there was a line-up of activities planned
for the Botswana delegation. These activities included an
International Economic and Trade Forum which was one of
the most important parts of CIIE. The theme of the Forum
was “Spurring new vitality of global trade creating an open
and win-win scenario.” The Forum included three parallel
sessions on; Trade and Opening; Trade and Innovation; and
Trade and Investment.
During the mission, the Botswana delegation attended a
two-day workshop on the New Economy organized by the
Alibaba Group notably the Alibaba Business School. During
this period, the Alibaba Group showcased the capabilities
and promise of a new digital economy. The aim was to
ensure that delegates gain an understanding of how these
technologies and methodologies can be used to improve
outcomes in Botswana and the rest of Africa. The workshop
incorporated firsthand experience with real life digital
economy applications to provide a framework for creating a
regulatory environment that encourages growth across the
fintech, logistics, e-commerce and big data industries.
The delegation also took a tour of the Alibaba Museum to
appreciate the entire Alibaba ecosystem and its origins. They
Continues from Page 3
MITI MINISTER LEADS A DELEGATION TO CHINA
Chinese visitors at the Botswana stall.
The Executive Director, Export Development and Promotion, Trunklinah Gabonthone with the Manager, Export Prmotion, Itumeleng Teseletso at the CIIE with stall visitors.
Go to the land of blue sky opportunities
visited the Taobao Village to attain first hand experience
and understanding of ecommerce development in a
rural area setting. The delegation comprised of the MITI
Officials, representatives of the Embassy of the Republic of
Botswana in China, Special Economic Zones Authority (SEZA),
Citizen Entrepreneurial Development Agency (CEDA), Local
Enterprise Authority (LEA), Moro Group, Botswana Tourism
Organization and BITC.
Botswana Investment and Trade Centre (BITC), through
Brand Botswana, signed a Memorandum of Understanding
(MoU) with the Limkokwing University of Creative
Technology in Botswana. The main aim of the partnership
was to advance relations between the two institutions as
well as between Botswana and Malaysia. These institutions
will in future collaborate on mutually beneficial initiatives
in the two countries to increase awareness of Botswana
and her value proposition. The key areas of collaboration
include Investment Promotion, Nation Branding, Human
Development and Skills Transfer.
Speaking at the signing ceremony, the BITC Chief Executive
Officer, Keletsositse Olebile highlighted that the signing of
the MoU will have far reaching benefits for both institutions.
BITC will tap into the educational institution’s global network
and influence in Malaysia. This, he stated will push the
organization’s Investment Promotion and country promotion
efforts. Limkokwing University has a global footprint that
BITC as Botswana’s investment promotion agency will look
to exploit.
Mr. Olebile went on to say that through Brand Botswana,
BITC is mandated to create awareness about Botswana
in all four corners of the world, hence the eagerness
to identity and work with key partners with a presence in
Botswana, such as the Limkokwing University which also
has a global reach. Malaysia, where Limkokwing University
originates, is one of the key markets that the organisation
is targeting for Foreign Direct Investment (FD) attraction.
Through the MoU, Limkokwing University will assist BITC
to penetrate the Malaysian market which offers a plethora
of potential FDI opportunities, which include, but are not
limited to an exploration of Malaysia’s Financial Services,
Applied Information Communication Technology (ICT)
and manufacturing specifically in the areas of textiles
and garments, as well as rubber. BITC will pursue these
opportunities, through collaborative efforts with the
University brand.
Limkokwing is renowned for its cutting edge creative and
technological prowess, and this is another avenue that BITC
will leverage on. It opened its first African campus in Botswana
11 years ago and has since gone on to open campuses in three
other African countries. Speaking on behalf of Limkokwing
University, Vice President of Industry Empowerment and
Faculty Leadership His Highness Dato Raja Aznil Hisham
thanked BITC for having approached the institution for the
partnership. He said the university takes Botswana as its
second home as the campus here is one of their first global
campuses, and the first in Africa. He said the partnership will
be mutually beneficial for the two institutions and that they
will tap into each other’s mandates, strengths and resources.
Several key initiatives have already been identified for collaboration, including Botswana’s participation at the London Fashion Week, a Botswana Promotional Activation in Kuala Lumpur, a Cultural Exchange Programme between Botswana and Malaysia, as well as collaborative participation in international Expos in the Asia Market.
BITC AND LIMKOKWING SIGN AN AGREEMENT
Continues from Page 4
BITC team with the Limkokwing management at the signing ceremony
BITC CEO Keletsositse Olebile and Limkokwing’s Vice President, His Highness Dato Raja Aznil Hisham
6
GLOBAL EXPO IN PICTURES
The Minister , Honourable Bogolo J. Kenewendo with Mr. Vijay Kalayanaraman from Grant Thornton and Brastorne’s CEO, Mr. Martin Stimela at the Private Business Growth Awards.
The Vice President of the Republic of India, His Honour Muppavarapu Venkaiah Naidu officiating at the 2018 GEB Official Opening
Guest speakers at the Investment and Trade Conference. Founder and Executive of Young Women Business Network, Ms. Nthabeleng Likotsi giving a presentation at the Pan African Growth Trajectory Opportunity session.
Speakers at the Pan African Growth Trajectory Opportunity session.
Participants at the Investment and Trade Conference.
Go to the land of blue sky opportunities
INVEST IN BOTSWANABotswana Wants to Make Your Investment Work for You
• We have no foreign exchange controls or restrictions on business ownership;
• Taxes are very low - 15% for corporations and 25% for individuals;
• We allow remittance and full repatriation of profits and dividends;
• We offer duty-free import of machinery and equipment for manufacturing purposes.
Botswana is Committed to Continued Growth
• We are consistently investing in new and improved core infrastructure such as power plants, fibre-optic networks, roads, railways and international banking institutions;
• We have been consistently rated as the least corrupt country in Africa by Transparency International;
• We have one of the fastest growth rates in per capita income in the world;
• We provide investors with preferential access to the Southern African Development Community’s (SADC) entire marketplace – over 292 million people.
EXPLORE INVESTMENT OPPORTUNITIES• Financial and Business Services
• Transport and Logistics• Agriculture and Agro Processing• Manufacturing• Information Communication Technology• Energy and Renewable Energy• Automotive and Auto Component Manufacturing• Education and Health
• Mining and Mining Beneficiation
BOTSWANA ONE STOP SERVICE CENTRE (bossc)We are ready to facilitate your investment. Services provided to investors through BOSSC include:
• Companyandbusinessregistration• TradeandBusinesslicenseapplications• Entryvisas,workandresidencepermits• Workpermitexemptions• Connection of utilities e.g. power, telecommunications
and water• IncomeTaxandVATregistration• Accesstoindustrialandcommercialland• AllocationofBITCfactoryspace(subjecttoavailability)• EnvironmentalImpactAssessment(EIA)Compliance• Provision of information on the Botswana business
climate, regulatory regime and investment opportunities• OpeningaBankAccount• Providespecialistbusinessadvisoryservices.
BE A PART OF BOTSWANA’S PHENOMENAL GROWTH STORY
visit us at www.gobotswana.com
Contact us todayPrivate Bag 00445Gaborone
Plot 54351, off PG Matante RoadExponential BuildingCentral Business District (CBD)
T +267 363 3360F +267 3170452Email:[email protected]
8
The company intends to move its activities to Botswana
therefore it was concluded that there is need to form
an organization which will process Botswana medical
claims and utilize Botswana-based operations to process
and administer global operations. MTN Business has been
identified by Compsul as the key potential Internet Services
Provider (ISP) technical partner for their Botswana expansion.
MTN Business is currently doing a business case for Compsul
pertaining to their bandwidth needs.
Another initiative was the MERCOSUR also known as
Mercosul or Ñemby Ñemuha which is a South American Trade
Bloc established by the Treaty of Asunción in 1991 and Protocol
of Ouro Preto in 1994. Its full members are Argentina, Brazil,
Paraguay and Uruguay.
Venezuela is a full member but has been suspended since
December 1, 2016. MERCUSOUR countries have established
a trade relationship with the Southern African Customs
Union (SACU) countries over the years including South Africa,
Namibia and Swaziland. The MERCOSUR delegation met with
BITC to discuss their business portfolio and further appreciate
the Botswana’s business climate as well as opportunities to
explore in the dairy sector. The Seminar was graced by the
Ministry of Investment, Trade and Industry, the Ministry of
Agriculture, Business Botswana, Clover Botswana, Parmalat
and some local dairy farmers.
The dairy sector is one of the most challenging sectors in
Botswana, currently there are three dairy cooperatives in
Botswana operating at a small scale with dairy cows ranging
from 1 – 50, Mmadinare Dairy Multipurpose Cooperative
Society, Pitsane Dairy Marketing Cooperative Society and
Thoba Dairy Producer Cooperative Society. Thoba Dairy
Producer Cooperative Society is in the process of being
established while the other two have ceased operation.
BITC is currently making the local cooperatives with the
Mercuso group to establish a capacity building relationship
and potential joint ventures with the South American and
Botswana based companies.
Mr Kabelo Kenneth Lebotse recently joined Botswana
Investment and Trade Centre (BITC) as head of the Legal
Department. He served as Acting Judge of the Hight Court
of Botswana until December 2017.
He was previously Senior Lecturer at the University of
Botswana in the Department of Law were he taught various
law subjects at both undergraduate and graduate levels. He
taught, amongst others, the Law of Contract, Commercial
laws, Advanced Company Law and Individual employment
law. He has also served as General Corporate Counsel and
Company Secretary at the Public Enterprises, Evaluation
and Privatisation Agency (PEEPA). He also worked for
the Botswana Examinations Council, heading the Legal
Department.
Mr. Lebotse holds a Bachelor of Laws (LLB), degree from
the University of Botswana and a Master of Laws (LLM),
degree from the University of London (London School of
Economics and Political Science). He has also done the Senior
Managers Development Programme with the University of
Stellenbosch. He undoubtedly brings a wealth of knowledge
and experience to BITC.
PROFILING OUR LEADERS:MR K.K LEBOTSE
BOTSWANA LURES GLOBAL INVESTORSBotswana Investment and Trade Centre (BITC) convened an
inward mission with Compensation Solutions (CompSol), a
South African Group of companies, which specializes in the
financing and administration of medical insurance claims and
medical practice management. Compsol is also responsible
for the development of the eCOIDA an online Workers
Compensation platform. While in Botswana, Compsol met
with the Human Resources Development Council (HRDC),
Botswana Qualifications Authority (BQA), Botswana Fibre
Networks (BOFINET), Botswana Communications Regulatory
Authority (BOCRA), MTN Business, BancABC and Dimension
Data.
Minister of Investment Trade and Industry Bogolo Joy Kenewendo delivering a message during the CompSol seminar
Mr K.K Lebotse, Director Legal Services
Go to the land of blue sky opportunities
Continues from page 6
When sharing the challenges faced by the dairy sector in
Botswana, Mr Otlhabanye highlighted the following: high
costs of feeds,lack of skilled manpower, lack of dairy related
technologie (modern dairy technology), lack of information
about the industry and poor technology adoption, lack of
proper infrastructure and market penetration.
Botswana also hosted the Swiss Delegation. The forum
primarily focused on Food Processing, Financial Services,
Information Communication Technology (ICT), Construction,
Energy and Manufacturing. Companies from both Botswana
and Switzerland were the main target for this mutual
business relationship between the two countries.
The Swiss company intends to import products from
Botswana such as food products, agro-processed products
and beef products. Another delegation that graced our
land was from Russia. They came to explore the business
prospects and gauge the market. The delegation indicated
specific interests in the mining sector and Bulk Breaking
– Pharmaceutical Drugs. The Selebi Phikwe Economic
Diversification Unit (SPEDU) introduced the delegation to the
ongoing project in the pharmaceutical space and the Russian
company that expressed interest to explore investment
opportunities in the sector was ushered to the project.
Furthermore, the Russian delegation indicated that they are
exploring the possibilities of starting a pharmaceutical bulk
breaking facility in Botswana to supply the SADC region.
Botswana continued to explore opportunities to diversify
the economy. As a strategic move to strengthen business
relations between Botswana and China in investment
His Excellency, Dr. Mokgweetsi E. K. Masisi attended the Beijing Summit in China.
positioning and trading of goods, His Excellency, Dr.
Mokgweetsi E. K. Masisi attended the Beijing Summit in
September. This was notably the first visit by the President
to China. The purpose of the visit was to further reinforce
the bilateral relations between the two governemnts. With
Botswana’s conducive economic conditions, this could
possibly lure more Chinese entrepreneurs to do business in
Botswana primarily on Infrastructure development, energy,
agribusiness, Information Communication TechnologyICT
and Trading. These are commendable initiatives for the
government of Botswana and BITC as the backbone of trade
dealings in Botswana.
The African Growth and Opportunity Act (AGOA) is a market access arrangement between the United States of America (USA) and Africa with broad objective of boosting exports from Sub-Saharan Africa to USA by eliminating tariff barriers on a large number of their exports. The current 10-year extension of AGOA is set to expire in September 2025.
This unilateral trade agreement provides duty free access
to the US market to over 6,400 product lines and 1,800 new
tariff line items in addition to the 4,600 The renewal through
the AGOA Extension and Enhancement Act of 2015 covers
the third countr e of law, political pluralism, and right to due
process; elimination of barriers to U.S. trade and investment;
economic policies to reduce poverty; a system to combat
bribery and corruption; and protection of internationally
recognized worker rights items enjoying duty-free status on
the U.S. Generalized System of Preferences (GSP) program.
THE USA AS AN EXPORT MARKET
The United States is one the world’s largest importing
countries. US importers are always looking for new products
to import and resale. According to the US Department of
Commerce, US Imports were $2,895.3 billion in 2017, up $182.5
billion from 2016. Imports of goods increased $153.2 billion
OPPORTUNITIES THROUGH AGOA
10
to $2,361.5 billion whilst those of services increased $29.2
billion to $533.9 billion in 2017. The top US imports include
motor vehicles, crude oil, cellphones, computer chips,
gasoline, motor vehicle parts, medicines and commercial
vehicles.
Since 2010, textiles/apparel has been Botswana’s main AGOA
beneficiary sector, constituting between 90-100% of total
AGOA exports. During its peak, Botswana had over 10 textile/
apparel firms exporting under AGOA. In 2017 Botswana
total exports to USA were P775.6 million, of which AGOA
exports accounted for P9.9 million. Diamonds account for
over 95% of total exports to the US. Currently Botswana
does not have a single company that is benefitting from the
AGOA preference. Of the over 10 textile/apparel firms that
operated from Botswana, some companies have shifted
focus towards South Africa while some have relocated with
others having closed down. The National AGOA response
strategy is an effort by government to ramp up exports into
the US market.
POTENTIAL BENEFITS OF AGOA FOR BOTSWANA
Potential benefits for Botswana from the AGOA unilateral
trade preference program include:
1. Tariff advantage: Exports from Botswana have a
significant tariff advantage over those from non-AGOA
eligible countries, making Botswana products more
competitive, e.g. some tariffs exemptions in the textiles/
apparel sector under AGOA are as high as 30%.
2. Wide range of eligible products: The AGOA Extension
offers an increased range of eligible products (over
6,400 products lines) which allows a more diversified
exports to U.S. by Botswana.
3. Opportunity for regional integration: AGOA facility
provides an opportunity to create regional integration
through the development of value chains, production
sharing and collaboration to meet volumes required
by the US market and for pitching the region as one big
market.
4. Capacity building of associations and institutions: Local
institutions will build their capacity and strengthen
their process through technical assistance and technical
capacity building provided by the various U.S. support
agencies such as the regional trade and investment
hubs and others whose mandate is to provide technical
assistance in AGOA beneficiary countries to facilitate
increased utilization of the program.
5. Promotion of women in social and economic
development: The AGOA Extension and Enhancement
Act, encourages the promotion of women in social
and economic development. Increased participation
of women in labour will help increase the quantity and
quality of available labour for industries involved in
international trade.
6. Job creation: AGOA has been credited with the creation of
over 300,000 jobs in Sub Saharan Africa since its inception
hence increased utilization of AGOA by Botswana will
result in more job opportunities for Batswana.
7. Long term relationships: Local companies that utilize
AGOA will be exposed to the US market and create
strategic alliances and other relationships with their US
counterparts, which might continue after the expiry of
the AGOA facility.
8. Giving local companies international exposure:
Participation in the US market under AGOA gives
companies the much-needed experience for entering
other international markets.
In the next issue, BITC will discuss what Botswana companies can export under AGOA and how they can register for AGOA. For more information on AGOA, logo onto www.usaid.org.
INTRODUCING A BITC ASSISTED COMPANY: MANEBLOCKS HOLDINGS Maneblocks Holdings (Pty) Ltd trades as Family Pride and
has been in business since 1998. The Company acquired
Tsetsebjwe Mills from A&N Enterprises in 2005 to grow
the business. It manufactures sorghum meal from milling
raw sorghum and also licensed for general food supply and
other agricultural products. Maneblocks Holdings is based in
Tsetsebjwe, in the Bobirwa Sub District, 80km east of Selebi-
Phikwe in the Central District.
Tsetsebjwe Mills started business in 1998 as a small-scale
operation funded through the Financial Assistance Policy
(FAP). A & N Enterprises (Pty) Ltd is a joint venture partnership
between Mr. Modise Jeremiah and Mr. Motsumi Dikgang.
In 2005, Peo Holdings (Pty) Ltd, a subsidiary company of
Debswana got interested in the business and approached the
owners of Tsetsebjwe Mills to provide them with financial
assistance as well as equity.
Continues from page 9
Go to the land of blue sky opportunities
Continues from page 10
This gave birth to Maneblocks Holdings (Pty) Limited which has the objectives of: • Becominganationwidesupplierofsorghummeal.• Being a reputable supplier of general food stuff to
government and other customers• GeneratingaReturnonInvestmentofatleast35%every
year
The company’s Vision and Mission are: • VISION: To ensure that all its products reach every table of
households in Botswana.
• MISSION: Family Pride exists to provide a reliable source
of nourishment to the people of Botswana.
The company values are: • Commitment• Sustainableapproach• Honesty• Efficiency
Maneblocks engaged the services of a sole agent to distribute its products to the customers in 2006. Under this model, all finished products were transported to the agent who in turn would distribute to Maneblocks’ customers. The agent was paid a commission of thirteen percent (13%) of sales. Major challenges and hurdles were encountered through this model. Of major impact was mishandling and distribution of product to customers both in terms of timely distribution and physical handling of the product. The commission also proved to be a major financial drain to the Company. By end of the financial year, Maneblocks recorded an operating loss of P729,525 with gross profit margin of only 3.6%.
In 2007, the Directors decided to change the distribution model of using an agent as it was not sustainable. Under the new model, the product was distributed directly to Maneblocks customers. The company’s performance immediately improved as the gross profit margin improved from a mere 3.6% to 14.7% in 2007 operating results. The performance continued to improve in 2008 with the gross
profit margin reaching a sustainable level of 19%.
The investment by Peo Venture Capital into the company was always subject to an exit strategy which was exercised by Mr. Jeremiah in 2010 by buying Peo out. The buy-out was financed by the Citizen Entreprenuership Development
Agency (CEDA) to the tune of P3, 600, 000.
The Company has experienced growth in business serving customers all over the country with deliveries as far as the North West District and Gaborone. The following are among
our satisfied customers;
• Food Relief Services (Selebi Phikwe) - BotswanaGovernment,
• EurekaWholesalers/TridentHoldings,• SefalanaCashandCarrywholesalers,• WelcomeCashandCarry,• CustodyInvestments,• Thusowholesaler,• Pick‘nPayRetailStores,• ShoppersSuperStores;and
• ChoppiesChainStores
The company has over the years been dealing with various suppliers for its stock within and outside the country. Local raw sorghum grain suppliers are individual Pandamatenga farmers (Chandia farm, H.S. LE Roux, Access Holdings, Panda Agric Development, and East Ford farm) and the Botswana Agricultural Marketing Board (BAMB). External sorghum grain suppliers are Saltcom Commodity traders, a division Premium Brand Distributors (Pty) Ltd and Protein Feeds Services (Pty) Ltd. Packaging materials are sourced from local suppliers
being Plastic Mart.
In support of this, the Company is committed to: • Generateanacceptablereturnonshareholders’
investment; • Provideemployeeswithsecuremeansofliving;• Providingcustomerswithareliablebasketfornatural
foods; and • BecomingasignificantpartnerwithBotswana
Government in its food security endeavors in Botswana.
The keys to success for the business are as follows: • Producehighqualityconsistentproducts• Maintainatechnologicallyadvancedplant• Maintain adequate working capital for procuring raw
sorghum.
PRODUCTS PROVIDED• 2,5–10kgsorghumpackedinplasticbags• 25-50kgsorghumpackedinpolypropylenebags• Branpackedin50kgpolypropylenebags
SERVICES PROVIDEDThe company is also licensed for the following;• GeneralFoodSupplies• Supplyofspeciallypackagedfood• Supplyoffoodsupplements• Supplyofprocessedfood
ACHIEVEMENTS & STRENGTHS• Well known brand - Family Pride has been in the market
for a period of over 17 years; since its inception in 1998. The brand has grown significantly over the period and it is now well established and well known in the market.
• House brands – One of our customers, Eureka / Trident has entered into a contract with us to produce and supply them with their house brand product known in the market as Econo. This has effectively boosted our relations with them and they have continued buying our product as well. We are also doing the same to Welcome Cash & Carry and their brand name is Mmelegi. These two (2) house brand products are vital to the success of the business.
• Excellent suppliers’ relations - The company enjoys excellent relations with its suppliers of raw sorghum due to its good track record. This ensures that the company has very minimal risk of lacking raw material for its production.
• Management experience - The Managing Director of the company is experienced, well known and has built an excellent track record especially in the sorghum milling industry in Botswana.
• Transport - The company has its own transport and that of its sister company dedicated to the transportation of raw material and finished products thus enabling timely delivery of goods to customers.
BOTSWANA IS A MODERN, ATTRACTIVE COUNTRY TO LIVE AND WORK IN. SO COME EXPLORE, EXPERIENCE AND ENJOY BOTSWANA
Botswana is a modern, attractive country to live and work in. So come explore, experience and enjoy Botswana.
COME TOBOTSWANA for a unique African Experience
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