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Procurement of Locally manufactured goods and services
19/02/15
Procurement of Locally manufactured goods and services
Procurement of Locally manufactured goods and services

The public is informed that Government has directed all Central Government, Local Authorities and Parastatal Organisations to procure all their goods and services from locally based manufacturers and services providers as well as agricultural producers. Procuring Entities are required to purchase all their products from local manufacturers and service providers as well as agricultural producers. This is a critical measure through which Government wishes to ensure that its purchasing power is used to stimulate economic growth and create the much needed employment through consumption of locally manufactured products and services.

At the time of the Economic Diversification Drive (EDD) inception in 2010, Botswana had a huge import bill averaged at P20 billion for five years. This made her the second largest consumer in the region due to reliance on few sources of growth, revenues, and exports (mainly minerals especially diamonds). The major aim of the EDD is to diversify the economy into sectors that will continue to grow long after minerals have run out through development of globally competitive private sector as well as diversified exports and export markets.

In the short term, Government determined to use its enormous purchasing power to promote production and consumption of locally manufactured goods and services through awarding of preference margins during tendering. Government also introduced enterprise competitiveness programmes such as the Private Sector Development Programme (PSDP) in collaboration with international development partners in order to address enterprise capacity constraints such as poor quality of goods and services, unreliable supplies, uncompetitive pricing and limited range of products.

Since inception a cumulative value of P14.643 billion of purchases have been recorded out of which local manufacturers mount to P880.5 million  while service providers account for P7.098 billion. As at December 2014 a total P2.799 billion worth of purchases have been recorded for the financial year 2014/15. Of the amount, purchases from manufacturers and service providers amount to P1.598 billion (59.92%). The Table below 1 shows the detailed purchases since inception.

Procurement of Locally manufactured goods and services

Category

2010/11

2011/12

2012/13

2013/2014

2014/15 (Apr-Dec 14)

Total since inception 

Manufacturers

97.5m

214.2m

298.3m

182.0m

243.9m

1.036m

Service Providers

493m

1.672bn

1.539bn

2.180bn

1.354bn

7.238bn

EDD Purchases

590.5m

1.886bn

1.837bn

2.362bn

1.598bn

7.979bn

Retailers

437.2m

1.460bn

1.208bn

1.504bn

945.8m

5.555bn

Foreign Suppliers

123m

431m

374m

353m

255.7m

1.537bn

Total Purchases

1.152bn

3.777bn

3.419bn

4.220bn

2.799bn

15.366bn

 

April to Dec 2014

2014/15 Target

Purchases since 2010

2010/11 to 2013/14 Target

Manufacturers

243.9m

 

1.036m

 

Service Providers

1.354bn

 

7.238bn

 

EDD purchases

1.598bn

3.0bn

7.979bn

2.5bn

Retailers

945.8m

 

5.555bn

 

Foreign Suppliers

255.7m

 

1.537bn

 

Total Purchases

2.799bn

4.5bn

15.366bn

4.5bn

Procurement of Locally manufactured goods and services

To date there are 1150 enterprises registered under the EDD. However these enterprises have been experiencing fluctuations in their employment levels mainly due to loss of business. This loss of business has been attributed to the fact that some Government Departments/Ministries, Parastatals and the Private Sector continue to import products and services, while such products and services are available locally. Some Procuring Entities also continued to inappropriately specify brand names in the tender documents.

This has prompted Government to set additional measures to ensure that Procuring Entities do not unnecessarily disadvantage locally based manufacturers, service providers and agricultural producers. Therefore with this new Directive, Procuring Entities are to seek authority from the relevant Tender Authorities to procure elsewhere where locally based manufacturers and services providers are unable to meet their demands.

Through this initiative, it is envisioned that in the long-term enterprises will expand their production, improve on the quality of their products and their competitiveness in order for them to be able to penetrate external markets. Conversely, this requirement will also act as an incentive to attract FDI while providing an assurance of the local market.

Government therefore appeals to the local enterprises to work on improving the quality of their products and services to be competitive.

POSSIBLE BUSINESS OPPORTUNITIES THAT BATSWANA CAN INVEST IN

 

 

SECTOR

 

PRODUCTS

 

Primary production

 

·         Livestock, Chicken  (Poultry), Pullets (layers/ chickens at point of lay), Vegetables (e.g. onions, tomatoes, cabbage, spinach, rape, green pepper, etc.), maize, sorghum, millet, beans, sunflower, Fruits, Flowers

 

 

Agro processing (dairy, horticulture, meat, etc.)

 

·         Maize meal, sorghum meal, bread flour, etc.,

·         Meat and meat products, mechanically deboned chicken meat, Geese, duck, guinea fowl meat, Lamb/mutton carcasses and cuts, Beef biltong, etc.

·         Milk (raw/pasteurized/UHT bovine), cheese, yoghurt, butter, etc.

·         Vegetable processing (e.g. tomato sauce/paste, cooking oil, fruit juice)

·         Livestock Feeds (for poultry, cattle, ostrich, pig, etc.)

 

 

Minerals

·         Beneficiation of Diamond, Coal and other Minerals

 

 

Textile & Clothing

·         Garments (suits, t-shirts, jerseys, Sports Wear, etc.), Bedding, Bath Towels, etc.

 

 

Leather & Leather Products

·         Footwear, Hand bags, belts, etc.

 

 

Arts & Crafts

·         Artifacts, Pottery, Historical Drawings/paintings

 

 

Recycled materials

·         Packaging materials (e.g. boxes, cans, bottles, egg trays)

·         Toilet paper/napkins/serviettes, paper towels,

 

 

Construction, Building materials & Hardware

·         Bricks, ceiling, cement, Ceramic tiles, roof tiles, roofing sheets, sanitary ware (urinals, bathtubs, etc.)

·         Timber, Plastic and metal Pipes (e.g. pvc pipes), paint, aluminum, glass

 

 

Stationery

·         Envelopes, exercise books, minute books, note pads, etc.

·         Pens, Pencils, Permanent markers, etc.

 

 

SECTOR

PRODUCTS

 

 

Pharmaceuticals

·         Medicaments (Penicillin, insulin, alkaloids, antibiotics), Veterinary medicines/drugs,

·         Needles (hypodermic needles), Syringes, Surgical gloves, Plasters, condoms, bandages, etc.

 

 

Chemicals

·         Cleaning chemicals, Dishwashing liquid,

·         Deodorants,

·         Candles

·         Tar

 

 

Machinery & Equipment

·         Automobiles, Tipper trucks and fork lifters, Poultry equipment, Office equipment, Tents and camping equipment

 

 

Renewable energy

·         Solar heaters assembly, Assembling of air conditioners

 

 

Other Food & beverages

·         Mineral/bottled water

·         Bakery Products

·         Sugar Confectionery

·         Common Salt (table salt)

 

 

Services/support Sector

·         ICT, transport & logistics, hotels, skills development, entertainment, restaurants, etc.

 

 

Others

·         Furniture (wooden, metal, etc.)

·         Computer Products (Gadgets), Consumer goods (watches, home appliances, etc.), Cellular phones,

·         Cleaning Materials, brooms, Rubber products,

·         Sanitary pads, tampons, facial tissues

·         Hair pieces

 


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