AUGUST 2004 ISSUE No.

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FORGING NEW BUSINESS PARTNERSHIPS

President Gets BEDIA I N S I D E Briefing
Private sector takes the lead in BEDIA governance PAGE TWO BEDIA opens London office PAGE THREE Closer business links with Mozambique and Angola More factory space going up to attract manufacturers PAGE FOUR EU Business agency chooses Botswana as its regional headquarters PAGE FIVE Approved Investors Exempted From Work Permits

President Festus Mogae on a conducted tour of BEDIA with Minister Nkate and BEDIA Chairman, Mr. Corea President Festus Mogae and the Minister of Trade and Industry, Jacob Nkate, have visited BEDIA for a thorough briefing on the organisation’s activities and its future plans. They were met by the Chairman of the Board of Directors, Uttum Corea, members of the Board, management and staff. The Chief Executive Officer, Mmasekgoa Masire-Mwamba, explained that since its establishment BEDIA had attracted 18 foreign companies that have set up operations in Botswana, investing a total of P78 million and creating 3 766 jobs. She noted that although this was below the target of 5 000 jobs, there are projects in the pipeline that should see this number increase significantly in the near future. The Chief Executive outlined BEDIA’s strategy shift, to focus in future on selling opportunities rather than promoting Botswana’s investment climate. It will also target investors specifically, as opposed to countries in general. She said there were major challenges ahead, but with concerted support from all stakeholders the challenges would be met and BEDIA would continue to achieve positive results.

Are textiles and garments viable in Botswana? PAGE SIX Business opportunities PAGE SEVEN Coming events BEDIA external offices PAGE EIGHT

“...BEDIA had attracted 18 foreign companies that have set up operations in Botswana, investing a total of P78 million and creating 3 766 jobs”
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Private sector takes the lead in BEDIA governance
BEDIA is a wholly Government funded parastatal, but since inception it has encouraged private sector participation in its affairs. Private sector members are in the majority on the Board of Directors and play a prominent role in the running and operations of the organisation. The Board is chaired by Uttum Corea, a partner in PricewaterhouseCoopers, and the Vice Chairperson is Myra Sekgororoane, an independent tourism consultant. Uttum Corea – a chartered accountant, he has extensive experience in a wide variety of assignments including audit, f i n a n c i a l investigation, management c o n s u l t a n c y, taxation and investment incentives. He pioneered the establishment of PricewaterhouseCoopers tax division, specialising in investment incentives in Botswana. He is the Senior Partner of PricewaterhouseCoopers in Botswana, and is a member of the Governing Board of PricewaterhouseCoopers in Southern Africa finance, strategy and planning. He is actively involved in the advancement of the accountancy profession, serving as a member of the Botswana Institute of Accountants Council and chairing its Education and Training Committee. He is also a Board member of the Botswana Accountancy College and a Past President of the Chartered Institute of Management Accounts (Botswana). economic policy and planning. She has extensive experience, having held senior positions in the Ministries of Finance and Development Planning, Agriculture, Local Government and Labour and Home Affairs. She is a member of a number of other boards and councils.

Tally Tshekiso – an economist and a Director and shareholder of C a r a t e x Botswana, a k n i t w e a r company that e x p o r t s exclusively to the United States and the European Union. He previously worked for the Ministry of Finance and Development Planning as an economist and for the Export Credit Insurance Company as Underwriting Manager before moving into private business.

Disikalala Gaseitsiwe - Director of E c o n o m i c Affairs in the Ministry of Finance and Development Planning, responsible for t h e Employment and Manpower Planning section. He holds a Masters degree in Development Planning and has had experience through a variety of senior positions in the formulation of strategies and projects for national development planning, as well as the coordination of national development policies and programmes.

Myra Sekgororoane - the newly appointed Vice Chairperson of the BEDIA Board of Directors. Her professional background is in the hotel and t o u r i s m industry, where she has had extensive experience, both international and national, and has held senior positions in the Botswana hospitality sector. She owns a hotel and tourism management services company and also carries out procurement services for the industry. She serves on a number of other boards.

Loago Raditedu – co-founder of the Exporters’ Association of Botswana and Executive Director of its Secretariat. He has represented Botswana in t r a d e negotiations such as the Southern African Development Community (SADC) Trade Protocol, the South Africa-EU Agreement, the African Growth and Opportunity Act (AGOA), the Cotonou Agreement and the World Trade Organisation talks. He is a member of the SADC National Committee and the President’s High Level Consultative Council.

Mmasekgoa Masire-Mwamba - Chief Executive Officer of BEDIA. Mmasekgoa holds an MBA in B u s i n e s s Administration and a Bachelors of Science Degree. She has extensive local and international and management experience in the promotion and development of Botswana.

Private sector members are in the majority on the Board of Directors and play a prominent role in the running and operations of the organisation.

Ta b a k e K o b e d i – a c h a r t e r e d management accountant and a Finance Manager at Debswana Head Office. He has extensive experience in

Banny Molosiwa – Permanent Secretary in the Ministry of Trade and Industry. She holds a Masters degree in Development Economics, specialising in PAGE • TWO

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BEDIA opens doors in London and business forum is a big success
As its first activity the BEDIA London office hosted a Botswana Business Forum that was a resounding success. The Forum was attended by officials of the United Kingdom Trade and Investment Office, Commonwealth Business Council, Southern African Business Association, Manchester International Trade Centre, Confederation of British Industries, SADC trade representatives in London and consumers, as well as UK- based

Six Botswana companies, Nortex, Fascinating Botswana, FerroGrow, Dinesh Textiles, Botswana Leather Works and Botswanacraft Marketing,showcased their products.
jeans to handicrafts from various areas in Botswana. An Oxford based outlet bought all the handicrafts on show and is already

Lameck Nthekela, BEDIA Regional representative in London

BEDIA has opened an office in Britain, based at the Botswana High Commission in London. The move is a major development in its outreach programme to explore selected markets for promoting inward investment, as well as identifying potential market outlets for products manufactured in Botswana. Britain has long established links with Botswana, and many of the companies that BEDIA is targeting for export and investment promotion are headquartered in the United Kingdom. The new office is accredited to cover the greater European market.

Invited guests at the Business Forum in London

buying agents from both the wholesale and retail sectors who gave the participating companies promising leads. The Business Forum entailed workshops, presentations on investment opportunities in Botswana, doing business in Britain and Botswana, as well as personal discussions between business people from the two countries.

trading in quality craftwork from Botswana. As a result of the event, negotiations are taking place with British buyers who are interested in supplying

BEDIA has developed a multipurpose facility in UK for further promotional activity.

A small display of Botswana products was held at the same time. Six Botswana companies, Nortex, Fascinating Botswana, FerroGrow, Dinesh Textiles, Botswana Leather Works and Botswanacraft Marketing, took part. Products exhibited ranged from towels, knitwear, fertilizers, PAGE • THREE

One on one meetings between the business people Botswana products to outlets in the UK and other countries.

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Closer business links with Mozambique and Angola
capital goods, machinery, vehicle and spare parts. Angola’s traditional imports are from South America and Europe, but Botswana is well positioned to compete and become a significant supplier of goods and services to the developing Angolan market. Mozambique continues to experience phenomenal economic growth as it undertakes massive redevelopment of the country and its infrastructure following the civil war. Multinational corporations, mainly from South Africa such as Anglo American, BHP-Biliton, Murray and Roberts and Sasol, are involved in various projects in the country. In addition, many donor countries and non-governmental organisations (NGOs) have been channeling huge sums of money into Mozambique. As a result of these developments employment creation is rising sharply, and with it the demand for basic consumables, which the local industry cannot meet. This opens up excellent opportunities to Botswana to export consumables to Mozambique and to explore other business opportunities in the country. Contacts: Angola Chamber of Commerce and Industry P.O. Box 92, Largo do Kinaaxixi, 14,1o Andar Luanda, Angola Tel: +244 2 444506/526/451 Fax: +244 2 444629 Email: ccia@ebot.net Mozambique Investment Promotion Centre Rua de Imprensa 332 R/C–C. Postal 4635 Tel: +258-1 313310/313375/313299 Fax: +258-1 313325 Email: mbila@cpi.co.mz

More factory space going up to attract manufacturers
Making suitable property in preferred urban centres readily available to external companies is a vital part of BEDIA’s efforts to attract foreign direct investment to Botswana. To this end, several factory shells have been developed in Gaborone giving a total floor space of over 25 000 square metres, more than 90 percent of which is occupied. The factory shells are used by companies engaged in a range of manufacturing activities, including textiles, vehicle springs, industrial cleaning chemicals, furniture products, and electrical cabling and circuitry. BEDIA is now building factory shells totaling 7 000 square metres in Mogoditshane, just outside the city. The development comprises ten units of 500 square metres each and eight units of 250 square metres. The scheme is designed to extend the benefits of the factory shells by making smaller units available to local entrepreneurs. The Mogoditshane project is due to be completed by September 2005. BEDIA will continue to develop ways to satisfy the needs of investors for premises to conduct their business in Botswana. All stakeholders will be made aware of the importance of improving the overall level of responsiveness to the requirements of investors. Heightening this awareness will contribute significantly to achieving BEDIA’s vision of being a globally recognised and leading trade and investment agency in Southern Africa. Potential investors are invited and encouraged to forward enquiries relating to property in Botswana to morep@bedia.bw

Signing of memorandum of understanding with the Angola Chamber of Commerce

The business communities of Botswana, Mozambique and Angola have been drawn closer together with the signing by BEDIA of memoranda of understanding with the Mozambique Investment Promotion Centre (CPI) and the Angola Chamber of Commerce. The signing took place at the BEDIA head office in Gaborone and in Luanda respectively. The objective is to formalise relations between BEDIA and the two organisations, to systematically exchange business information, help to organise trade and investment missions and to co-organise meetings and seminars in both countries. CPI and the Angola Chamber of Commerce are now the points of contact for business people wanting to do business in those countries. Similarly, BEDIA becomes the Botswana point of contact for Mozambican and Angolan business people, to facilitate appointments and provide trade leads, and to issue business invitation letters where needed. Angola is undergoing major reconstruction and development, and many opportunities present themselves in the area of infrastructure development. There are opportunities for Botswana companies in the fields of engineering services, water reticulation, power, telecommunications, refuse and sanitation, as well as consumer and

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EUROPEAN UNION BUSINESS AGENCY CHOOSES BOTSWANA AS REGIONAL HEADQUARTERS
In addition to direct assistance, CDE provides consultancy services with expert input in the relevant spheres. CDE may also allocate financial aid of up to two-thirds of the total assistance being sought. Since CDE established its office at BEDIA in Gaborone, ten promoters have already benefited from the direct assistance programme. The centre is also active in other parts of SADC promoting regional and country specific projects.

Honourable Ministers and VIPs who attended the Launch

The Regional Field Office of the Centre for the Development of Enterprise (CDE) was officially launched in May at BEDIA headquarters in Gaborone. The office acts as the antenna and services the SADC region. CDE is an institution established by the African, Caribbean and Pacific (ACP) states and the European Union within the framework of the Cotonou Agreement. It forms part of the general system of support created by the European Commission to promote the private sector and so help to combat poverty. The CDE works in cooperation with other key development players, particularly public and private sector, multilateral, bilateral and local institutions. Its financial resources are derived mainly from the European Development Fund, but also from other European programmes or from countries that may assign it appropriations or offer co-funding for its operations. The CDE supports the process of designing projects and also assists investors who are looking for financial and technical partners. The Development Facility is intended for enterprise creation, extension and development. This form of assistance

CDE may also allocate financial aid of up to two-thirds of the total assistance being sought.
covers project definition, feasibility and market studies, the search for technologies and partners, financial engineering, assistance for legal structuring (left to right) Managing Director of CDE , Matos Rosa and Jorge Borges, CDE and project Regional Field Officer with the CDE local team Dorothy Boakgomo, Assistant development, Regional Field Officer and Patrick Koboyatshwene, Regional Field Officer Assistant quality and environmental Contact: studies. The Assistance Facility provides Regional Office for Centre for the long-term support to the operations of Development of Enterprise the enterprise. This support applies to Attention: Mr Jorge Borges start up and technical assistance, staff Private Bag 00148 training, diagnosis and audits, Tel: +267 3191229 management and marketing assistance, Fax: +267 3191271 restructuring assistance, assistance for Gaborone, Botswana p r o m o t i n g q u a l i t y, l a b e l i n g , E-mail: jbo@cde.it standardisation and environmental protection. PAGE • FIVE

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Approved Investors Exempted From Work Permits
Investors can now get work and residence permits upon recommendation by BEDIA in a shorter period of time. After assessment and clearance by the Ministry or BEDIA, investors complete application forms for the Exemption Certificates, which are issued to them within five days. This exemption is a result of amendments made by the Minister of Labour and Home Affairs to the Employment of Non-Citizens Act late last year. Investors are therefore encouraged to make full use of the services that are provided by the One-Stop service centre at BEDIA. The facility ensures the processing and clearing of their permits with minimal delays. This assistance is available to both existing and prospective companies in the manufacturing and services sectors.

Are Textiles and Garments viable in Botswana?
sector should continue. The findings suggested that promotion should be continued, but that permanent subsidisation of the sector should be discouraged and emphasis placed on attracting garment manufacturers. The study recommended an emphasis on developing the manufacture of higher value-added products and the introduction of a comprehensive programme of training to improve skills. It also called for a cost structure review to be carried out in order to reduce input costs. BEDIA is working with UNCTAD to implement the recommendations, as we strongly believe that this will benefit the country because the sector continues to play an important role in the development of the economy. Garment factory employee cutting fabric. For more detailed information, investors are encouraged to contact the BEDIA Investment Promotion Department.

The garment and textile sector has in the past attracted companies from the Far East and South Africa during the operation of the Financial Assistance Policy (FAP) scheme, which provided subsidised wages, fixed assets and training costs for an initial five-year period. Since the abolition of FAP there has been a steady decline in the industry’s fortunes, despite it having privileged access to several markets. Botswana qualified to be categorised among the Least Developed Countries under the Africa Growth and Opportunities Act (AGOA), giving it preferential treatment in sourcing raw materials for duty-free and quota-free export to the US market. In addition, Botswana is a member of the ACP (African, Caribbean and Pacific) grouping, which

allows it to export to the European Union markets quota and duty free. The industry decline indicated that it was failing to cope with challenging circumstances. As a result, last year BEDIA commissioned a study to investigate the competitiveness and viability of the industry in Botswana and to determine w h e t h e r promotion of the PAGE • SIX

Garment factory production line

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BUSINESS OPPORTUNITIES
The State of Florida in the United States of America, through Enterprise Florida Inc. Southern Africa, is looking for partners in the region for the following US-based companies:

Company Villa Marques

Business Relationship Desired Joint Venture

Products/Services Looking for a furniture manufacturer to produce outdoor furniture

Virtupass

Joint Venture

Looking to partner with online security firms.

I-am Solutions

Joint Venture

Looking for collaborations for Web-based technologies for managing large entities

Trans Ocean Holdings

Joint Venture

Opportunities in agriculture, mining and downstream industries

Macknificent Imports Galleria, Inc

Exporters

Looking to buy African ceramic dolls and other unique crafts/items

Sandler, Travis & Rosenberg

Exporters

Looking for suppliers of AGOA related textiles, processed agriculture products

Latin Chamber of Commerce

Exporters

Looking for manufacturers and exporters interested in Latin America.

Contact: Tongila Manly, Managing Director, Enterprise Florida, P.O. Box 2557, Cramerview 2060, South Africa T +27-82-560-8001, F +27-11-476-6740, Email: EnterFlorida@TheManlyGroup.com www.eflorida.com

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BEDIA EXTERNAL OFFICES
The business community is encouraged to contact BEDIA’s external offices in the Republic of South Africa and the United Kingdom for full information about those markets. Johannesburg Mr. Brian Mosenene Regional Representative 3rd Floor Standard Bank Centre, East Entrance 11 Alice Lane P.O. Box 781371 Sandton 2146 Republic of South Africa Tel: +27 (011) 884 8959 Fax: +27 (011) 883 7798 Email:Moseneneb@bedia.bw Website: www.bedia.co.bw London Mr. Lameck Nthekela Regional Representative 6 Stratford Place London W1C 1AY England United Kingdom Tel: ( +44) 207 499 0031 Fax: (+44) 207 495 8595 Email: bedia@bedia.bw Website: www.bedia.co.bw BEDIA has also made an arrangement with Global Projects, a company based in New Delhi, to promote Botswana as a viable location for Indian investment. As a result of this joint promotion, a number of Indian entrepreneurs have successfully set up in Botswana either on their own or in partnership with Batswana investors. India Dr. Juneja India Representative Office Global Projects and Services (P) LTD 707-708 Ansal Chambers-II 6 Bhikaji Cama Place New Delhi 110066 India Tel: (011)261 70146, 261 78443 Fax: (011)261 72457 Email:gpsjsj@del6.vsnl.net.in Website:www.globalprojectsandservices.com

UPCOMING EVENTS
Outward business promotion opportunities • • • • • • • Textile and Apparel, AGOA Exhibition Meet in Africa, Leather Exhibition Automotive Component Forum, Investment promotion mission Export promotion mission Handicrafts show, Sector specific Exhibition Swisstech 2004, Suppliers Only Fair USA Addis Ababa, Ethiopia Zurich, Switzerland Durban and Cape Town Mozambique USA Basel, Switzerland August August September September October October 2004 2004 2004 2004 2004 2004

November, 2004

Inward business promotion missions to Botswana: • • • • Botswana International Trade Fair in Gaborone Malaysia Republic of South Africa United States of America August August October November 2004 2004 2004 2004

If you have interest in specific markets please call Malebogo Morakaladi at BEDIA to discuss further.

PUBLISHED QUARTELY BY THE BOTSWANA EXPORT DEVELOPMENT & INVESTMENT AUTHORITY. FOR MORE INFORMATION CONTACT BEDIA ON TELEPHONE +267 3181 931, FAX +267 3181 941 or email: bedia@bedia.bw or visit www.bedia.co.bw
MARKETING COMMUNICATIONS FCB

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