CHIEF EXECUTIVE OFFICER’S (CEO) CORNER

Vision 2036 seeks to transform Botswana from a mid-income to a high-income country by the Year 2036. The country finds itself trapped in the Middle-Income status, attained in the 1990’s before many African countries could achieve the feat. “The transition to highincome status requires us to introspect and be bold in charting our way forward. We need to put in place conditions that will allow dynamic transformation” (Vision 2036, p11).Whilst in Geneva, HE Dr MEK Masisi met with the Secretary General of WIPO, as well  with the Geneva Chamber of Commerce. He also held meetings with Mr Michael Reybier, owner of La Reserve Hotel to discuss among others, interest of the Reybier Group in the hospitality business in Botswana. The President also attended the Botswana Tourism, Investment and Cultural night, once more sending a clear message that attracting FDI remains one of his key priorities. This drive by HE will positively “grow Botswana’s population” as empirical evidence tells us that the population size is a key determinant of FDI inflows.

The transformation to high-income status will be anchored on the transition from a resource to a knowledge-based economy. According to the World Bank, ‘knowledge economies’ are defined by institutional structures that provide incentives for entrepreneurship and the use of knowledge; skilled labour availability and good education systems; ICT infrastructure and access; and finally, a vibrant innovation landscape that includes academia, the private sector and civil society.

Botswana has laid out plans for transformation to a knowledge economy, i.e. in providing for good education systems, the country has developed the Education and Training Sector Strategic Plan (ETSSP), and is also finalising the National Human Resource Development Plan. On ICT infrastructure, Botswana Communications Regulatory Authority (BOCRA) and Botswana Fibre Network (BofINET) have since been established to champion same ICT infrastructure and access.

On the innovation landscape, the Botswana Innovation Hub (BIH), Botswana Institute for Technology, Research and Innovation (BITRI), Botswana International University of Science and Technology (BIUST), etc. have been set up to champion the transformation. All these should be looked at within the context and the centrality of their contribution to the high-income status.

The transformation to a high-income status entails accurately putting together pieces of a jigsaw puzzle, namely Infrastructure, Doing Business and Competitiveness, Human Capital, ICT Infrastructure and access, etc.

Infrastructural development alone without the complement of Doing Business and Competitiveness support will not produce the desired results, nor will Infrastructural Development and Infrastructure lead to the desired results without the backing and support of thriving Human Capital.

Whilst human capital, driven by knowledge is key in raising the returns on investment, by stimulating more efficient methods of production organisation and as well stimulating new and improved products and services, human capital alone without the intrinsic support of others will not lead to the desired outcome of transformation from midincome to high-income. ICT comes in as a bedrock and foundation as the world transits to the 4th Industrial Revolution.

We must therefore, as a matter of urgency take deliberate steps to overhaul the current economic growth model as highlighted in Vision 2036. The economic growth model is not in harmony with the radical economic transformation intended in Vision 2036. The growth model served the country well against adverse effects of the global economic downturn. Despite the stability, and modest growth, the model comes with a baggage, i.e. high unemployment rate especially amongst the youth, low productivity, unsustainably

high public spending, etc. There is however optimism, with His Excellency the President Dr MEK Masisi taking the button against the backdrop of a relatively strong performance in a number of areas. The Country has maintained high overall rankings in Africa i.e. 3rd in sub-Saharan Africa on the UNDP Human Development Index, 3rd overall out of 54 African countries, in the 2017 Ibrahim Index of African Governance (IIAG) with a score of 72.7 etc. Furthermore Botswana has experienced the doubling of per capita gross national income to US$ 7 058 in 2014. HE the President Dr MEK Masisi is on a renewed path to attract Foreign Direct Investment, pushing to the limit the reform agenda aimed at facilitating and motivating investors’ passion into doing business in Botswana. HE the President attended the World Investment Forum 2018 hosted by United Nations Conference on Trade and Development, seeking to promote Botswana as an investment destination. 

Whilst in Geneva, HE Dr MEK Masisi met with the Secretary General of WIPO, as well  with the Geneva Chamber of Commerce. He also held meetings with Mr Michael Reybier, owner of La Reserve Hotel to discuss among others, interest of the Reybier Group in the hospitality business in Botswana. The President also attended the Botswana Tourism, Investment and Cultural night, once more sending a clear message that attracting FDI remains one of his key priorities. This drive by HE will positively “grow Botswana’s population” as empirical evidence tells us that the population size is a key determinant of FDI inflows.

Marija Petrović-Ranđelović, Vesna JankovićMilić, Ivana Kostadinović  of the University of Niš, Faculty of Economics, Serbia undertook studies to examine the impact of foreign direct investment inflows in the Western Balkans countries in the period 2007-2015. Their results show that the highest relative impact on the foreign direct investment