20th July 2023
Sello Motseta
The just ended US-Africa Summit 2023 provided Botswana owned SMME’s with a unique opportunity to access regional and global markets directly enabling them to think outside the box and avoid the limitation of limiting themselves to selling to a small market of 2 million people.
Locally owned SMME’s were also able to take a leading role in the accessing of markets for the SMME’s say some optimistic exhibitors, to leverage opportunities created by the vertical and horizontal linkages. Over 90% of businesses in Botswana rely on the central government for market.
Businesses are increasingly trying to be more aggressive and self-reliant like their counterparts in the livestock sector, where cattle farmers buy their feeds and vaccination from retailers like Agri‐Chem, and then sell directly to butcheries, supermarkets and meat processors who offer better profits.
“We had a lot of interaction with people outside the country and we made a few sales. The idea was to network we did not go for sales. We wanted exposure for product. President sampled product and he liked fact we were using wild fruit and it was not getting wasted,” said Litah Malejane, Managing Director of Dream Flavours.
She said, “We met with people from Kenya and South Africa. Kenya is not importing milk.”
Malejane said, “We were getting ideas from tour Kenyan counterparts because in Botswana Diary cows are very few. The focus amongst many indigenous livestock farmers is on owning livestock for meat consumption but we import a lot of milk.”
Government was encouraged to incentivize youth to engage in diary farming to reduce milk imports and improve self sufficiency in milk production.
Botswana SMME’s have long been encouraged to make use of their geographic position in the region to forge partnerships and improve intra regional trade. Intraregional trade now represents around 15% of sub-Saharan African trade, compared to only 7% in 1990. In 2010, South Africa as the regional powerhouse was alone responsible for 4% of sub-Saharan imports and 6% of exports.
Some local owned SMMEs’ feel that improving public awareness needs to turn into tangible results. The feeling is that SMME’s were not properly positioned to maximize from a high profile event like the US-Africa Summit, which was held at Grand Aria in Tlokweng.
“It was not a good experience because not a lot of people bought clothing attire. Buyers were mainly from Botswana who already knew brand,” said Thandi Palai, Sales and Administratuion Officer, All Kasi Clothing.
She said, “We were far away from where the conference was taking place. A lot of people did not have an opportunity to come and see what we produce.
But other exhibitors hit a more optimistic and futuristic note.
“We really did get a lot of exposure. A lot of Batswana did not know about our brand,” said Sebu Mokgwe, Managing Director of Sweet Sensations, which manufacturers Chocolates.
She said, “We got some good leads for possible avenues for export markets. Sales were also good.”
Mokgwe said she was really quite pleased with the experience.
The trend in Botswana is that most SMME’s are owned by indigenous citizens while most of the much larger enterprises are owned by foreign investors and the government.
According to official sources 36% of employees are employed by government while large firms and local SMME’s equally employ 32% of employees. The 32% of employees in SMMEs is divided between Micro SMMEs 14%, Small SMMEs 14% and Medium 4%.
Unfortunately, the success rate of SMME’s in Botswana is low considering their GDP contribution of about 35% compared to other countries such as Ghana with up to 70% contribution to GDP. Officials believe opportunities like those presented by US-Africa Summit will help to turn the tide.
“We made a lot of contacts and we are now waiting for traction,” Ame Balosang, Brand Owner for True Afria Bites.
She said, “We will see what happens. Compliments do not pay bills.”
