In February 2010, the government of Botswana announced a change in the local input requirements for the participation in certain public purchases.



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Republic of Botswana 2010 Budget speech,

Inception date: 01 Feb 2010 | Removal date: open ended

Public procurement localisation

In the 2010/11 budget statement read on 8 February 2010, the Minister of Finance and Development Planning of Botswana announced a number of tax changes for profits and divident payments that were nationality-blind. However, the same speech contained the following remarks, which suggest that discrimination against foreign commercial interests is found in the manner in which public funds are spent. 

"While the policy on citizen economic empowerment is still being prepared, there are ongoing efforts such as provision of student loan/grants for those qualifying for tertiary level education; reserving certain categories of business to citizens and the local preference scheme. Citizen economic empowerment is also promoted through the implementation of mega projects in the country. The process, which enables citizen contractors to participate in mega projects, entails unbundling of large projects into smaller components that are more manageable by citizen contractors. Examples of these include; Dikgatlhong and Lotsane Dams, expansion of Morupule Power Station, Botswana International University of Science and Technology, and the four Senior Secondary Schools in Nata, Shakawe, Mogoditshane and Mmadinare. Where projects are awarded to non-citizen contractors, such contractors are encouraged to outsource
or sub-contract some activities to smaller citizen companies. Capacity building of the citizen artisans is also ongoing. This is expected to enable them to find employment as well as assist them to meaningfully participate in the projects once employment is secured." (page 10)

"Botswana Development Corporation (BDC) continues to play its role as the leading investor and lender, thereby contributing to the transformation and diversification of our economy. The Corporation has a diverse portfolio covering the sectors of industry, agribusiness, services, property development and management. Through its subsidiaries, affiliates and associate companies, BDC has been active in the local production of products which were previously imported." (page 12)

"Projects currently under implementation include the glass manufacturing plant in Palapye, which will utilise locally available silica and soda ash. The project is estimated to cost over P500 million and create jobs in excess of 300." (page 12)

"In pursuit to grow its portfolio, the 'BDC' Corporation continued to carry out research on the development of more viable projects in various sectors with the intention of utilising locally available raw materials. Research is ongoing with respect to citizen owned businesses and their needs, with the intention of developing tailor made financing packages for them." (page 12)

"The review of the Industrial Development Policy of 1998 and the Industrial Development Act of 2006 is expected to be complete by June 2010, to further provide a simplified and efficient business licensing process and the registration of micro businesses. In addition, implementation of the Directive on the use of Locally Manufactured Goods and Services will be reviewed with a view to evaluate previous performance and suggest appropriate measures that will assist both local manufacturers and service providers to increase their output for the domestic and export markets. The review is expected to be concluded in October 2010." (page 20)