European Union
Republic of Botswana
Ms Pauline Monare
Director, EDD, Ministry of Trade and Industry
What is EDD?
Strategic Approach
What is Competitiveness?
What determines Competitiveness?
Key Factors of Productivity
Link between PSDP & EDD
EDD STRATEGY
• Economic Diversification is one of the key strategic areas of focus
for the Botswana economy.
• Adopted by Government in 2010, the Economic Diversification
Drive (EDD) Strategy puts emphasis on increased capacity
for non-mineral exports and private sector led growth.
• The EDD Short Term Strategy is based on the use of Government
purchasing power to drive economic diversification, with total
Government purchases through EDD procurement program
recorded at P1.8 billion as at 31st March 2013;
• The EDD Medium to Long-Term Strategy envisages diversification
of the economy through the development of sustainable and
globally competitive enterprises that need little or no Government
protection and support.
Strategic Pillar / Thematic Area
1. Quality
Production
Control
Standards
Key Result Area
&
Increased Productivity; Competitiveness
Improved Products Quality; Knowledge and Skills
2. Research and Development
Improved availability of industry data
Coordinated and focused research
3. Technology Development, Transfer
and Innovation
Improved Technology Access and Usage; Improved
Skills Transfer; Improved innovation and Creativity;
Improved Collaboration and Partnerships
4. Entrepreneurship Development
Improved entrepreneurship culture and capacity
Improved knowledge of the sector and of global trends
5. Investment and Finance
Improved access to competitive funding; FDI inflow
and; Improved infrastructure and logistics
6. Export Development and Promotion
Increased export earnings; export market;
increased domestic production and consumption
7. Sectoral Development and Business
Linkages
Increased participation of firms in the economy; supply
chain linkages (clusters); Increased employment
Poverty Eradication
and
4
What is Competitiveness? – Prof M. Porter
• Botswana is a competitive location to the extend that firms
operating in Botswana are able to compete successfully in the
global economy, while supporting high and rising wages and
living standards for the average citizen.
• Competiveness depends on improving long-run productivity with
which firms can do business in the country:
• Productivity of existing employees
• High participation of working age citizens in the workforce
What determines Competitiveness?
Country’s endowments, including
 natural resources;
 geographical location;
 Population; and
 country size,
Create a foundation for prosperity, but true prosperity arises from
productivity in the use of endowments.
MACROECONOMIC COMPETITIVENESS
• Sound Monetary and Fiscal Policies;
• Human Development;
• Effective Political Institutions
 Sets the economy-wide context for productivity to emerge, but it is not
sufficient to ensure productivity.
PRODUCTIVITY DEPENDS ON:

Improving the microeconomic capability of the economy and the
sophistication of local competition revealed at the level of regions
and clusters;

Microeconomic Competitiveness – driven by three factors:

Quality of the Business Environment;

State of Cluster Development; and

Sophistication of Company Operations and Strategy
LINK BETWEEN PSDP AND EDD
PSDP Result Area 1:
Strengthen Capacity and Competitiveness of SMMEs and
Community Based Organizations.
PSDP Result Area 2:
Improve
service
delivery
of
targeted
Intermediary
Organizations and Business Development Service Providers.
PSDP Result Area 3:
Business Environment – reduction of red tape and pilot of
accessing finance.

Thank you!