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DIPLOMAT AFRICA

Volume 1 • 2011

BEDIA: Serious about Investment Promotion Brand Botswana: Our Pride,Your Destination Volume 1 • 2011 • www.DiplomatAfrica.org

World Trade Centers in Africa: Africa is Open for Business

PROMOTING ECONOMIC GROWTH AND SUSTAINABILITY THROUGH LEADERSHIP, DIPLOMACY AND TRADE


PUBLISHER’S NOTE

We are very excited to introduce the pilot edition of Diplomat Africa. Africa is in a state of massive economic growth which brings exciting investment opportunities. This is confirmed with the arrival of The World Trade Center in Africa – opening the doorway to African business. The launch of this sturdy brand in Africa heralds a new age of commerce and investment between African countries and the rest of the world. Global Village Africa is proud to announce our collaboration and partnership with the World Trade Center in expanding World Trade Centers throughout sub-Saharan Africa. Our shared goals and initiatives in Africa ensure this is a natural fit. We look forward to working closely on the dissemination of the success of African trade. ‘Good news’ stories such as these are the focus of Diplomat Africa – through profiling and celebrating the progress of African countries, we are expanding on the ethos of Global Village Africa. Diplomat Africa aims to report on and share the success stories of Africa on a global platform. We want to make a noise about our amazing opportunities – and what better way to do it, than in a high quality gloss format; the ultimate collectors’ item. The legacy of Africa is to be resonated around the world and felt for years to come. In this issue, the ripples extend from the SADC region with Botswana as our primary focus for the launch edition. Botswana is a country that has experienced unprecedented growth and stability. The ‘good news’ extends from major developments in Transportation networks, International Relations, Trade and Investment, Environment, Education and Technology, to name a few. These developments in the SADC region are ultimately lessening the gap between Africa and the rest of the world. At Global Village we believe that publishing has a pivotal role to play in promoting and branding countries and regions. Our current focus falls on Africa – simply because we have witnessed immense opportunity and growth. Diplomat Africa has a responsibility to continually report on the success and developments within Africa with the aim of enticing investment and further growth. To complement the readership of our print model we are also present on www.DiplomatAfrica.org and www.GVPedia.com, where millions of international readers have access to a virtual copy. With that we must thank our numerous participants in this first issue. We were shown that there is a wealth of willing African citizens out there who see the value in this publication and understand that in combining our efforts and collaborating, we can create something truly unique, yet essential. Special thanks must go to the immense support from BEDIA and Brand Botswana – two of the main driving forces in Botswana’s success. It is only natural for them to be a part of this project. I hope that you will be as proud of the outcome as we are. Here’s to many more editions… so keep the success stories coming Africa!

Main Sponsors

Thapelo Letsholo Publisher

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Best of Botswana


Best of Botswana 3


WINGS FOR DEVELOPMENT


www.airbotswana.co.bw

Few airlines in the world could have been established so quickly and contributed so centrally to the development of their home countries as has Air Botswana.


In This Issue

Contact Details GVPedia Publishing (Pty) Ltd PO Box 26382 Gaborone, Botswana Unit 3, Gaborone International Commerce Park. Tel: +267 3951363 (Gaborone) • +27 117052097 (Johannesburg) Email General: info@gvpedia.com Email Editor: rebecca@gvpedia.com Website Africa: www.DiplomatAfrica.org Website Global: www.GVPedia.com

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THE TEAM

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Publisher: Thapelo Letsholo Editor: Rebecca Eb Project Manager: Gia Bischofberger Production: GVPedia Communications Creative Direction: iMedi8 Creative Printer: Creda Communications Website Development: Liam Dobell, Brinn Tomes, Mare Greyling Public Relations: RedPepper PR & Communication Consultancy (Botswana) Sales Team: Yvonne Sinclair (Johannesburg/South Africa), Leanne Singh (Zambia), Kagiso Tai Makole and Moses Maruping (Botswana), Wilhencia Uiras (Namibia), Maria Picado (Mozambique)

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President Lt. General Seretse Khama Ian Khama engages Botswana’s citizens in policy-making President Rupiah Banda set to continue building Zambia Twenty years of Namibian independence Brand Botswana: our pride, your destination Angola country profile The Best of Africa: Global Village Africa

International Group Publisher: Sven Boermeester Ultimately we look forward to showcasing and connecting all the successful governments, companies and individuals that are spear heading Africa’s incredible growth.

Disclaimer: Every effort has been made to ensure the accuracy of the information in “Diplomat Africa” issue 1. Neither “Diplomat Africa”, Red Pepper PR & Communication Consultancy nor GVPedia Communications cc assume any responsibility for errors or omissions. All rights reserved: No part of this publication shall be reproduced, copied, transmitted, adapted or modified in any form or by any means. This publication shall not be stored in whole or in part in any retrieval system.

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CHAPTER 1: FOREIGN POLICY, DIPLOMACY AND RELATIONS

CHAPTER 2: TRADE AND INVESTMENT

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Profiling the Botswana High Commission in Australia Introducing H.E Molosiwa Selepeng – High Commissioner of the Republic of Botswana to the Commonwealth of Australia Botswana Perspective: US Ambassador Stephen J. Nolan Introducing Ambassador Charles Thembani Ntwaagae EU happy to help SADC develop Perspective from a diplomat’s daughter: Thembile Tebogo Legwaila Lesego Mathware helps Africans help themselves through the Diamond Empowerment Fund

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The Southern African Development Community (SADC) SADC building on its economic muscle: The power of the spirit of neighbourliness reigns high in Southern Africa China is winning over the heart of Africa – will the West keep up? Zambia’s economic growth The gem called Debswana Botswana Export Development and Investment Authority: BEDIA DTC: Shining Light Awards Diamond Design Southern African Collection New era as South Africa joins BRIC Botswana and Mauritius: The exceptions Khumo Property Asset Management: The Extra Edge in Property Asset Management

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In This Issue

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CHAPTER 3: TOURISM AND HOSPITALITY

CHAPTER 4: INNOVATION AND TECHNOLOGY

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You just can’t avoid the lure of Botswana Botswana improves airports infrastructure Wings for Development: The success story called Botswana – and Air Botswana has been part of it all Interview with Air Botswana Acting Commercial Director: Helen Chilisa Destination Southern Africa

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Botswana Innovation Hub (BIH) SADC adopts DVB-T2 The United Nations Conference on Sustainable Development Earth Summit 2012: Rio+20

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CHAPTER 5: TRANSPORT AND LOGISTICS

CHAPTER 6: GROWTH AND DEVELOPMENT AFRICA

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Botswana at the core of thriving regional logistics business Fast + Furious International: Reaching Africa and the world Kazungula in the North-South Corridor: Collaboration is key Zambian technocrat on his way to reforming TAZARA

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Building an African network of World Trade Centers Youth empowerment: the key to Africa’s sustainable development NEPAD is a vision and strategic framework for Africa’s renewal The Common Market for Eastern and Southern Africa: COMESA

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President Lt. General Seretse Khama Ian Khama engages Botswana’s citizens in policy-making “We have a clear vision of what we want Botswana’s future to be. The successful implementation of our economic diversification policies and all this implies will require a focussed and single-minded pursuit of our goals and objectives. Batswana have every right to reflect with pride on four decades of independence, stability and major economic and social development. But we cannot bask in past glory forever as has been the tendency. We need to think of the coming decades

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and about the prosperity and welfare of future generations. Botswana has become a middle income country by prudently managing and investing the proceeds from her natural resources. This in turn, has provided a stable and fulfilling environment for its citizens and business. Today, the country faces challenges that require further responses and initiatives,” His Excellency the President Lt. General Seretse Khama Ian Khama in his inaugural speech.


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the circumstances, these individuals and groups use a variety of tactics and tools to advance their aims, including advocating their positions publicly, attempting to educate supporters and opponents, and mobilising allies on a particular issue. In this endeavour, therefore, interest groups embark on advocacy, which can be defined as an attempt to influence public policy through education, lobbying, or political pressure, known as agenda setting. Unfortunately those in rural areas are in most cases less influential in this all important process.

The message relayed above is an indication that HE Lt. General Seretse Khama Ian Khama was rallying the nation and calling for “a disposition for learning in order to change or adapt to changing circumstances� – introspection as a form of continuous quality improvement on the way we do things and approach issues. Further Lt. General Seretse Khama Ian Khama was calling for inclusivity of all and sundry in the process of developing and taking Botswana to the next level and this entails involving all citizens in the public policy-making process. This in turn means that this public policy-making process should be efficient enough to support delivery, this notwithstanding the contestations as a result of diverse interest groups, inherent in the public policy-making process. Shaping public policy is a complex and multifaceted process that involves the interplay of numerous individuals and interest groups competing and collaborating to influence policymakers to act in a particular way. Under

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Upon arriving at the rally he was greeted to huge applause with all vying to shake his hand. He was then given a seat amongst the hoi polloi and he felt at ease and at home listening attentively to the challenges that Batswana faced.

This is no longer the case under HE Lt. General Seretse Khama Ian Khama. Since taking office, the president has visited almost all villages in the country left, right and centre, including the most remote. The visits are a spectre and funfair, with Lt. General Seretse Khama Ian Khama adopting the most down-to-earth of approaches. In one of his escapades, the president was seen using a bicycle to interact with his people. In another instance he was relaxing around and amongst the populace whilst being shuttled around by donkey cart. Some of the interactions of the gatherings were in the form of the cultural norm and practice of the Kgotla. Lt. General Seretse Khama Ian Khama has gone an extra mile to include walkabouts


and evening events gathering around bonfires with ‘wise men’ relaying their experiences, and intermittently their challenges. HE Lt. General Seretse Khama Ian Khama’s visits to villages in the country have been at worst breathtaking and at best, awe-inspiring. President Lt. General Seretse Khama Ian Khama has the touch, look and feel of the ordinary Motswana. In mingling with ordinary men and women he conjures up magical moments showing him to be relaxed and at ease. Some believe that is exactly what he relishes: being at ease with his people and getting ideas from them in order to then push for the service delivery that they so acclaim him for. The president brought an extraordinary sense of personal touch-and-feel when he attended a Botswana Congress Party rally in the Tswapong Constituency. Upon arriving at the rally he was greeted to huge applause with all vying to shake his hand. He was then given a seat amongst the hoi polloi and he felt at ease and at home listening attentively to

the challenges that Batswana faced. The President is an extraordinary leader, who revels in being amongst the people where he gets to understand their challenges through public policy discourse. It is a good way of engaging the public in policy formulation and implementation. Lt. General Seretse Khama Ian Khama is ‘just what the doctor ordered’ for a beautiful country and for the beautiful people in Botswana by strengthening relations with citizens. Strengthening relations with citizens is a sound investment in bettering policy-making and a core element of good governance. It allows government to tap into new sources of policy relevant ideas, information and resources when making decisions. Equally important, it contributes to building trust in government, raising the quality of democracy and strengthening civic capacity. Such efforts help strengthen representative democracy. Which Botswana’s president has more than achieved. Diplomat Africa

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President Rupiah Banda set to continue building Zambia By Kennedy Limwanya

President Rupiah Banda went on air to speak to the Zambian people as the year 2010 ticked through its last few hours, to bring to a close a year in which the country had registered unprecedented growth. It was a speech that gave Zambians hope of another successful, though challenging, year that will also see the country through elections where President Banda will seek another mandate to continue providing inspiring leadership. The New Year’s Eve speech came just days after a leading African publication, African Business, had praised the Government’s strides in transforming Zambia’s agricultural complexion. The December 2010 African Business article was just one of the many from various independent organisations that assessed President Banda’s performance in a year that saw heightened criticism from local opposition leaders and civil society organisations. The President’s address to close 2010 was as reassuring as all his speeches have been since the inaugural November 2nd 2008 speech in which he pledged to be a ‘President for all Zambians’. Mitigating global crisis The year 2010 was one in which President Banda worked tirelessly to ensure that the proverbial national cake trickled down to the poorest of the poor; in a country that was not spared the effects of the global economic meltdown. “The measures your government took to mitigate the impact of the global financial crisis enabled the country to maintain stability and attract increased investment, particularly in the mining sector where jobs were saved and additional employment was created,” said the President in his New Year’s Eve speech. Towards the end of 2010, the President inaugurated the Konkola North Copper Mine (KONOCO), a joint venture between South African firm, African Rainbow Minerals, and Vale of Brazil.

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The mine was the fifth he had opened since being elected Zambian President in November 2008. The success of the year is hinted at in the US$380-million KONOCO project which, on completion, is expected to have an annual copper production level of 45,000 metric tonnes. Since assuming office, President Banda has opened Lumwana Copper Mines in the North-Western Province, Konkola Deep Mining Project in Chililabombwe, re-opened the Munali Nickel Mine in Mazabuka and Luanshya Copper Mines in Luanshya which has created more than 1,000 jobs while development of the Muliashi Mine has also started. In his speech, President Banda used the “opportunity to take stock of the achievements we recorded and the challenges we faced in 2010.” Africa’s new breadbasket Yet, in spite of the numerous difficult challenges in 2010, phenomenal achievements were recorded as acknowledged by African Business in its report entitled ‘Zambia: Africa’s new breadbasket?’ “Zambia is rapidly gaining the reputation as the country of choice for investments into the agricultural sector. Food output is more than double the demand and could soon become a major export earner,” said the report. It continued: “Long regarded as the poorer cousin of its South African and Zimbabwean regional counterparts, Zambia is fast gaining attention as a desirable destination for agricultural investors, and is becoming a serious challenger for the epithet: ‘Africa’s new breadbasket’.” Surely, it goes without saying that such a generous report on Zambia would not have been published in this manner had it not been for the seriousness with which President Banda’s administration manages the agricultural sector? The proof of this seriousness lies no farther than in the 2009/2010 maize bumper harvest of 2.8-million metric tonnes, which is the highest ever recorded in Zambia’s entire history. Supporting agriculture Zambeef is one of Zambia’s most prominent players in


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agriculture and, as quoted by Zambian Business, this is the opinion of the company’s chief executive Francis Grogan: “The Zambian government is very supportive – and they are not looking for backhanders. Of course, there’s a lot of red tape and bureaucracy, but that’s the same everywhere in the world.” Drawing on the huge 2009/2010 success, the government increased its allocation to the Farmer Input Support Programme (FISP) to K485-billion (US$100-million) in 2011, from K435-billion (US$89-million) in 2010 and also upped the quantity of inputs to 178,000 metric tonnes of fertiliser; almost 9,000 metric tonnes of maize seed and 30 metric tonnes of rice seed in time for the planting season. “As a result, close to one million farmers will benefit from FISP this season as compared to only 500,000 in the last season. The country will no longer experience a shortage of mealie meal,” said the President. Resulting from the bumper harvest, at least K1.3-trillion (US$268-million) has found itself in farmers’ pockets as a result of the Food Reserve Agency (FRA) buying the yield. With all this governmental goodwill, it would be folly for any well-meaning Zambian to stand on an anthill and claim that President Banda is uncaring. At times, in the name of decency, political players should find room in their hearts to cast politics aside and simply commend President Banda’s administration for a job well done. Twelfth best President, fourth best economy It is a typical case of a prophet not being honoured in his own city that it has again had to take another international publication, The East African, to rank President Banda as the 12th best performing African president among the 52 on the continent. Further, the Central Intelligence Agency (CIA) has just ranked Zambia’s economic performance in 2010 as fourth in Africa and 21st in the entire world. This lofty recognition comes on the heels of a World Bank and International Finance Corporation (IFC) Doing Business Report 2011 which ranked Zambia among the top 10 countries worldwide that have improved the ease of 16

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doing business for local firms in the past year. The report, under the theme ‘Making a Difference for Entrepreneurs’, highlighted improvements Zambia has made over the past year in helping people and companies to start up businesses by eliminating its minimum capital requirement, computerising customs declarations and introducing an electronic case management system in courts.

The President did not forget, in his speech, to mention the development of multi-facility economic zones which, he said, will continue under the sixth national development plan.

Reacting to the ranking, President Banda said: “This is a great endorsement of the work that my government has been doing to improve business conditions in Zambia. I pledged to make Zambia a regional hub for business and investment and this is a sign that this plan is well on the way to becoming a reality.” It, therefore, beats ones understanding to hear President Banda’s professional critics at home describe the same 2010 as a wasted year. Whatever yardstick they always use to arrive at results skewed against their own country – a country that, with President Banda’s guidance, recorded improved economic growth, averaging 6.1 percent per annum under the Fifth National Development Plan compared to 4.8 percent during the transitional development plan of 2002-2005. Annual inflation was also much lower, averaging 11.3 percent compared to 20 percent during the transitional national development plan period while the Kwacha exchange rate remained stable and foreign direct investments increased, leading to more employment opportunities for Zambians.


The President did not forget, in his speech, to mention the development of multi-facility economic zones which, he said, will continue under the sixth national development plan. Job creation “Already, 3,500 jobs have been created from the 13 enterprises located in the Chambeshi economic zone alone. Once Chambeshi, Lumwana, Lusaka and Ndola economic zones are fully developed, more than 26,000 jobs will be created.” President Banda recognises that education is a route out of poverty, which is why 26,000 teachers are to be recruited in the next five years while 5,000 will be recruited in 2011 alone. Further, 2011 will see the completion of 45 high schools and 42 basic schools. As proof of the feasibility of President Banda’s education policies, the 2010 grade seven pass rate was the highest transition increase in the last 20 years and the highest progression rate recorded in Zambia. Elsewhere, the health sector has been one of the major beneficiaries of the MMD government’s quest to improve the lives of the Zambian people, and this has resulted into the undertaking of a number of infrastructure projects including the construction, expansion and rehabilitation of 26 hospitals and 125 health posts in all provinces. Infrastructure development Infrastructure being an essential economic driver, President Banda’s administration spent a substantial amount of money to ensure the completion of works on KasamaMbala-Mpulungu roads, Chipata-Lundazi road, MukunsaNkosha-Mununga, Zimba–Livingstone road, ChomaChitongo, Luansobe-Mpongwe road, and Kasama-Luwingu road. Some of the major roads whose works are in progress this year are the Mongu-Kalabo, Sesheke-Senanga, Landless Corner-Mumbwa, Kabompo-Chavuma, IsokaMuyombe, and Chipata-Mfuwe. He can even afford to talk about the forthcoming elections with pride, knowing that apart from exceeding people’s expectations, he has even taken the lead in

ensuring that his party, the MMD, promotes democracy by successfully completing provincial conferences and naming April as the month for the party’s national convention. Violent-free polls “The election year 2011 is a very important year for all Zambians. We should all uphold peace and unity and reject violence or violent ideas. Every political campaign should be directed towards a better, honourable life for every citizen. Every campaigner should offer voters uplifting plans, goals and objectives.” Towards the conclusion of his uplifting December 31st 2010 speech, the President appealed to all Zambians: “Zambia has earned a dignified position internationally, namely that we always conduct our elections peacefully. The peace that we all cherish must not be broken. Your government will jealously protect and preserve the peace of this nation without fear or favour. War-mongers and hatemongers will not go scot-free.” Evidently, they are not going scot-free; no one should. Diplomat Africa

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Twenty years of Namibian independence By Larry Luxner

Little-known Namibia, one of Africa’s most sparsely populated nations, is also one of the continent’s most stable. In late March 2010, Namibia’s ambassador, Patrick Nandago, held a reception in Washington to celebrate “20 years of independence, freedom, democracy and the rule of law in our beautiful country.” Several hundred people gathered at the Omni Shoreham to help Nandago mark the occasion – singing both “Namibia, Land of the Brave” and “The Star-Spangled Banner” as colour photos depicting the country’s flora and fauna flashed on large screens. Among the guests Nandago singled out for special recognition were Susan Page, the current U.S. deputy assistant secretary of state for African affairs, and Chester Crocker, who served as U.S. assistant secretary of state for African affairs from 1981 to 1989. “In the heat of the armed liberation struggle in Namibia, and the civil war in Angola,” said the ambassador, “Dr Crocker was the man who developed the strategy that produced the treaties signed by Angola, Cuba and South Africa which culminated in the ceasefire between South Africa’s UNITA (National Union for the Total Independence of Angola) rebels and SWAPO (the South-West Africa People’s Organisation), leading to the first democratic elections in Namibia.” South Africa’s former colony finally obtained independence on March 21st 1990, after 106 years of foreign occupation. “Since then, Namibia has held free, fair and peaceful elections every five years, with the most recent one held in November 2009,” he said. “Over the years, we have witnessed successful transfers of power, and our country is known to be one of the most democratic on the African

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continent. Our economic and political stability makes it an attractive location for investors.” Turning the evening into a sales pitch for his country, Nandago explained that the four pillars of Namibia’s economy are agriculture, mining, fishing and tourism. With only two-million people in a country whose land covers 825,418 sq km, Namibia should be quite wealthy. And in fact, its exports of diamonds, uranium, copper, gold and zinc are legendary. Yet its long legacy of colonialism has hindered the country, and the AIDS epidemic is creating a generation of orphans. Just over 21 percent of Namibia’s citizens are HIV-positive, one of the highest rates of prevalence in sub-Saharan Africa. That’s caused life expectancy to drop from 61 years in 1991 to 47 today, says the U.S. Agency for International Development. According to the UN Development Program, Namibians

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suffer from the most unfair distribution of income in the world; an estimated 55 percent of the country’s wealth is in the hands of the richest 10 percent of the population, while the poorest 35 percent of Namibians live on less than US$1 a day. “Namibia is faced with many challenges, including the availability of portable water, access to quality health care, housing and education, and the challenges of unemployment, HIV-AIDS, tuberculosis and malaria,” said Nandago. “Namibia did not escape the brunt of climate change, and for the last four years, the country has witnessed severe drought and devastating floods.” Nor, he said, did the global economic crisis spare Namibia. “A considerable number of our citizens have lost their jobs, and companies have scaled down operations or closed up, but we remain hopeful that things will turn around.”

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Hifikepunye Pohamba, President of Namibia

As part of its strategy, the government has set up the Namibia Investment Center and has signed agreements with neighbouring Botswana and Zimbabwe to acquire dry-port facilities in Walvis Bay, Namibia’s deep-water port on the Atlantic Ocean. Angola, Zambia and the Democratic Republic of Congo are negotiating for similar arrangements. Page, speaking on behalf of her superior Johnnie Carson, assistant secretary of state for African affairs, said Namibia had a lot to celebrate on its 20th anniversary. “Since its separation from apartheid South Africa in 1990, Namibia has pursued a path of democracy and free-market economy. It has distinguished itself from other African states by having held 10 national, regional and local elections,” she said, noting that Namibia is one of the 15 “focus countries” under the President’s Emergency Plan for AIDS Relief (PEPFAR). That entitles it to more than US$100million annually to help Namibia “mitigate the suffering of HIV-AIDS patients.” In September 2009, the U.S. government’s Millennium Challenge Corp. signed a US$304.5-million compact with Namibia aimed, among other things, at boosting the quality of education and rectifying the country’s unequal distribution of income. “Now that President Hifikepunye Pohamba has been sworn in for a second term, we hope he will continue to take a strong stand against corruption and gender-based violence,” Page told the assembled guests. “The United States is seeking to build mutual trust in addressing the many challenges Namibia faces, including the fight against HIV-AIDS and tuberculosis, and the need to create jobs and reduce poverty.”

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Warm greetings from Botswana‌

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Dumelang and warm greetings from the Republic of Botswana – a peaceful country of breathtaking beauty, fascinating contrasts and alluring charm. Nestled in the heart of Southern Africa between her four neighbours: South Africa, Zambia, Zimbabwe and Namibia; Botswana prides herself as being one of the most peaceful nations on earth (Global Peace Index-2011). The landlocked country’s history of peace, economic and political stability has rightfully earned her the proud title of one of Africa’s most transparent countries (Transparency International 2010/2011), as well as a much revered place in the ‘top three happiest countries’ on the continent. Botswana is home to a diverse and multicultural population of approximately 1.8-million. Batswana (the people of Botswana), are a tolerant people who take immense pride in their culture, heritage and way of life – which are based on the respect for traditional and cultural values of mutual respect (botho), consultation (therisanyo) and the promotion of social harmony (kagisano). The upholding of these values has indelibly played a role in moulding Africa’s longest continuous multiparty democracy. Since gaining independence in 1966, Botswana has successfully held free and fair elections at five-year intervals to elect government. This is one of many national practices which highlight an uninterrupted trend of good governance – an admirable feat that has seen Botswana ranked in the top three countries with the best governance in Africa. This practice of good governance has been internationally recognised, as demonstrated when the former president

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of the Republic of Botswana, Mr. Festus G. Mogae, was awarded the Mo Ibrahim Award in 2009 in recognition of excellence in African leadership. Rated the least corrupt African State by Transparency International (2010 report) and coming in 33rd position in the world, Botswana’s zero tolerance for corruption and economic crime, as well as proven record of good economic governance also means that it is one of the most investor-friendly countries on the continent. As one of the fastest growing economies in the world, due to a stable macro-economic environment, the country continuously retains a favourable ‘A’ investment grade sovereign credit rating by both Moody’s Investors Service and Standard & Poor’s Credibility and Creditworthiness. Botswana is the 40th freest economy in the world (Heritage Foundation-2011) and 52nd out of 183 countries in the (World Bank’s Ease of Doing Business Report 2011) rankings which divulge Botswana’s commerce-driven and investor friendly business environment. In addition to the absence of exchange control regulations and a tax system

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that provides up to 15 percent corporate tax. Botswana also enjoys duty and quota-free access to the United States of America (USA) market through the African Growth and Opportunity Act (AGOA), as well as a market access to a population of 250-million, through membership to the Southern African Development Community (SADC) and Southern African Customs Union (SACU). As the biggest exporter of gemstone diamonds and home to some of the richest diamond mines in the world by value, Botswana has achieved all-round socio-economic progress during the last four decades of its independence. Its impressive economic success is due in large part to its frugal and efficient use of the revenue generated from the mining sector – predominantly diamond mining. Diamond mining accounts for approximately one-third of the country’s Gross Domestic Product (GDP), and over 70 percent of export earnings. Earnings from the mining, tourism and beef sectors have translated into a relatively high quality of life enjoyed by all Batswana. The country’s citizens have ready access to

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products and services including educational facilities, land, healthcare and safe drinking water at nominal or no cost. Botswana’s infrastructure is modern and well developed, and ranges from road, rail and air networks to world standard Information and Communication Technology (ICT) services. Standing at 82 percent, Botswana boasts of one of the highest literacy rates in Africa. The country covers an area of 582,000 square kilometres, extending from the renowned Okavango Delta and wetlands of the north, to the vast Savannah grasslands and the Kgalagadi Desert in the south. A veritable tourist-paradise, Botswana offers one of the last remaining unblemished wildlife havens in the world. The vibrant tourism industry is also the second largest contributor to the country’s GDP, at 11 percent. Botswana operates an exciting tourism industry and is ranked amongst the top 10 tourist destinations in the world. In 2010, the Okavango Delta, the largest inland delta in the world, was granted the Tourism for Tomorrow Award. Botswana Tourism Organisation (BTO)

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was crowned the winner of the Destination Stewardship Award for its successful work in advancing sustainable tourism. Botswana offers you – the tourist, visitor or investor, a complete experience, offering a blend of astounding variety, a rich cultural heritage and the opportunity to interact with the warm spirited people of Botswana. There is no better way to experience all this beauty than to visit the humble beacon of peace and thriving progress. Come to Botswana and experience it for yourself. Botswana – our pride, your destination. Brand Botswana P O Box 3122, Gaborone Telephone: 3181931 Fax Number: 3913075 Plot 50676, Fairgrounds Office Park 2nd Floor Block B Diplomat Africa

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Angola country profile Setting the scene Angola is situated on the Western coast of Southern Africa and was a Portuguese colony until the 11th of November 1975, when it gained its independence. It covers an area of 1,246,700 km² – on top of which lies a diverse and scenic landscape, whilst underneath is a wealth of minerals. The country is divided into 18 provinces, with its capital city being Luanda. Its periphery comprises 4,837 km, bordering on Congo Brazzaville, the Democratic Republic of the Congo (ex-Zaire), Zambia and Namibia. Its coast, washed by the Atlantic Ocean, is 1,650 km long. Luanda, Lobito and Namibe are its main ports. The country’s highest peak is Monte Moco (2,620 m), situated in Huambo, with its main rivers being Kwanza, Zaire, Cunene and Cubango. Its currency is Kwanza (Kz) and the president is José Eduardo dos Santos, of the ruling MPLA party. The estimated number of inhabitants in 1995 was 11million, with an estimated growth of up to 16-million by the year 2010. Angola’s official language is Portuguese, but the country has various vernacular languages. The population is predominantly Christian, with Catholicism being the most expanded denomination. Economy: oil & diamonds Oil is the backbone of the Angolan economy. The country is nestled on the southern curve of the Gulf of Guinea – with her roots firmly planted in an oil-rich shelf that runs from Brazil across the Atlantic Ocean. The first oil surveys date back to 1906, and it was not until 1955 that the first oil well was discovered. In 1966, Cabinda Gulf Oil Company discovered important oil reserves in Cabinda, which is still the main oil-producing block accounting for more than half of Angola’s oil production. From then on, oil started playing one of the most important roles in the Angolan economy, having surpassed coffee exports as of 1973. This sector now makes up over 90 percent of the country’s exports and accounts for 40 percent of GDP. When independence was proclaimed in 1975, Angola ranked third on the list of Africa’s most important oil producing countries after Nigeria and Gabon. Angola is currently the second biggest oil producer in Africa with 28

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1-million b/d output, and it is expected to overtake Nigeria, with a current output of 2.3-million b/d. The United States now imports more oil from Angola than Kuwait. Angola enjoys an exclusive maritime economic zone which it has divided into 76 oil ‘blocks’, 35 of which are active. Second to oil, diamonds are a main export product in Angola. Major diamond reserves are located in northeastern Angola, a region endowed with the finest top-quality stones. In fact, 70 percent of diamonds discovered are of great quality, listing the country among the main diamond producers of the world. Other mineral resources Angola’s underground is also abundant with other minerals. From 1950 through to 1975, iron ores were explored in provinces such as Malange, Bié, Huambo and Huíla; and average output reached 5.7-million metric tonnes per year between 1970 and 1974. The most explored minerals were exported to Japan, Germany and the United Kingdom, earning Angola US$50-million a year. In addition to iron ores, Angola has phosphate deposits estimated to be at 150-million tons, located in the provinces of Cabinda and Zaire. These resources are so far unexplored. In south-eastern Angola, in the provinces of Namibe and Huíla, marble, granite and quartz reserves abound. Marble is mostly distributed in the local market, while black granite is in international demand and exported to the American and Japanese markets. Angola has considerable agricultural potential with a climate, soil and topography appropriate for modern and large scale agricultural production of a wide range of crops. Furthermore, the country has necessary hydropower, forest, and fishery potential.

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Although the climate is such that the beaches can be visited all year round, they are most frequented in the hot season. The bars are filled and local music and dancing provide an animated and exotic atmosphere that mixes well with the mystery of the African nights. Landscapes The orography and the climatic characteristics of the land provide Angola with a vast diversity of animal species and vegetation. In Cabinda, there is dense, humid forestland, which is rich in exotic woods which are the natural habitat of gorillas. South of Zaire is savannah grassland in the basins of Kwanza, Kuango, Cuito and the tributaries of the Cassai. On the elevated plains, the open forestland provides a natural habitat for indigenous species. Natural parks and reserves have been created throughout Angola to preserve and protect indigenous species threatened by extinction.

Climate Although Angola is located in a sub-tropical zone, its climate is not typical of such areas due to the following factors: • The cold current from Benguela running along the southern part of the coast. • The highlands in the interior. • The influence of the Namibe desert, situated southwest. As a result Angola has its own unique climate, with two distinct seasons: the rains, from October to April; and the mist or “Cacimbo”, from May to September – a much dryer season with lower temperatures. The average mean temperature is normally around 23º. Beaches On the Atlantic coastline, mighty rivers flow into wide estuaries depositing sediments from the high plateaus to form numerous small islands, bays and sandbanks, creating excellent beaches. Luanda, Corimba and Benguela enjoy some of the best beaches in Angola and are therefore great tourist attractions.

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Invest in Angola According to indications from the National Agency for Private Investment (ANIP), investing in Angola is very advantageous. Reasons include: • Everyone acquainted with Angola will today discover a new country. A more dynamic and safer country – with political, military and economic stability – Angola is enjoying the most prosperity in its history. War is in the past. In the last 10 years, the country has refocused its attention to the process of reconstruction. • Luanda, the capital city of Angola, has the characteristics of a city with great development potential. Civil construction takes a remarkable prevalence within this new socio-economic context. Several buildings are being built in various points of the capital. The provinces of the vast Angolan territory are developing, by expanding the infrastructure required for the construction of a strong nation. The currency, Kwanza, is becoming stronger daily, stimulating the consuming habit within the Angolan and foreign populations who live in the capital as well as the provinces. • Political and economic stability has allowed excellent new opportunities for investment in the country. In brief,


all social, economic and political aspects of Angola are favourable to progress. The Industrial Tax Exemption Regime provides government incentives for investors, which vary in accordance with the province in which the investment is conducted. These range from between eight to 15 years exemption. The new Angola presents itself to the world: working together today, to grow together tomorrow. Submission of tenders The National Private Investment Agency (ANIP) promotes private investment by Angolan citizens and foreigners, in well identified industrial sectors and based in areas of development. The agency works in the framework of a legal institution which provides financial incentives for investment and supports the investors through modern procedures in the application. The analysts of the projects provide assistance on the potential project development for the interested parties. They guide the potential investors throughout the application process and facilitate communication with other governmental entities. Investors interested in submitting their tenders to ANIP, can request an application form from ANIP at a fee of US$150. Angolan symbols • O Pensador: The beautiful O Pensador statue, meaning The Thinker, is a symbol of the national culture. It represents the wisdom of the elderly, who enjoy a privileged status in Angola. • Giant Sable Antelope: The majestic Giant Sable Antelope exists only in Angola in very few numbers, and is classified in serious danger of extinction. After 20-years without being spotted, the giant sable antelope was re-discovered in 2005. • Welwitschia: The famous Welwitschia mirabilis is a kind of succulent plant found only in the Namib Desert. It is considered an endangered species and has become a symbol of the national culture for its resistance and longevity, as they are thought to live for over 1000 years.

Useful information Airports: Angola has an excellent airport system covering the entire country. The system is open to international traffic through Luanda International Airport. Customs: Items subject to customs fees are to be declared by passengers entering Angola. Items for personal effects are tax free. Health: A vaccination certificate for yellow fever is required to enter the country. Well equipped clinics are available for visitors requiring immediate health care. Driver’s License: An international or local driver’s license is required to drive in the country. Visas: Visitors must obtain a visa at the country of origin’s Angolan consular office. Telephones: A land system operator and two cellular phone operators exist in the country, enabling easy domestic and international calls. Time: The time, GMT/UTC, is unchanged throughout the year. Courtesy of the Press Office of the Angolan Embassy

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THE BEST OF

AFRICA

We brand and build the image of the world’s most exciting economic regions to affect a change in the perception of a continent, a nation, a city and its people by the rest of the world.

Global Village Africa is Africa’s premier platform for showcasing and networking governments, leading companies and entrepreneurs in business, tourism and lifestyle. The ‘Best of seriesmCPPLTDSJTQMZQSPÙMFMFBEJOH companies and innovators, as leaders within their genre. We celebrate the success of countries, individuals and companies with ‘the good news’ editorial and pictorial imagery in the highest quality print format available.


BRANDING A CONTINENT, A NATION, A CITY AND ITS PEOPLE

GVPedia.com Success, Sustainability and Culture


Chapter 1: Foreign Policy, Diplomacy and Relations


FOREIGN POLICY, DIPLOMACY AND RELATIONS

Profiling the Botswana High Commission in Australia By Wame Phetlhu Dechambenoit

Botswana opened its diplomatic mission in Australia in February 2003, marking the strong bilateral co-operation between the two countries. Charged with the mandate to promote and manage Botswana’s foreign relations in the Pacific region, the High Commission is not only accredited to Australia and New Zealand, but also to some Pacific Islands. The Mission plays a critical role in facilitating the establishment of diplomatic relations with other like minded countries in the Pacific. This will expand Botswana’s presence, scope of international relations and interactions at the diplomatic level with various strategic areas in the Pacific. As with all Botswana foreign missions, the High Commission is responsible for building and promoting the development of bilateral co-operation between Botswana and countries in the area of coverage. Under the leadership of His Excellency Mr. Molosiwa Selepeng, the High Commission has developed strong working relationships with the Government, the business community, civil society and various opinion leaders across various key sectors. Over time, a significant relationship has been built, particularly with Australia and New Zealand, and has been growing from strength to strength in the areas of education, capacity building, mining, agriculture, legal affairs, and public service management. Australia and New Zealand also host Batswana students pursuing studies in various disciplines, including medicine, engineering, Information Technology, education, nursing, architecture and arts. 36

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Botswana has also appointed five Honorary Consuls in Australia and New Zealand based in Sydney, Melbourne, Perth, Brisbane and Auckland to assist in expanding the business relationship of Botswana with the business community in key sectors. The Honorary Consuls work with the High Commission to bring awareness and promote Botswana as an attractive place to visit, work and invest by highlighting the country’s national assets including the people. As a result of these efforts, and in conjunction with the Australia Africa Business Council (AABC) and BEDIA, there have been a significant number of exchange business missions between Botswana and Australia since the High Commission was opened. Recently BEDIA hosted a business mission from Australia to Botswana in March 2011. The purpose of the mission was to give the Australian businesses an opportunity to learn more about Botswana and the opportunities available for investment and joint venture partnerships. Exchange visits create opportunities for acquiring


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information, creating common understanding and forging strong relationships through sharing ideas and experiences and committing to keep working together to strengthen existing bonds of friendship and co-operation. To that end, the High Commission has facilitated a notable exchange of high level visits between Botswana and countries of accreditation. His Excellency the President Lt. General Seretse Khama Ian Khama paid a State Visit to Australia in March 2010, which was preceded by Ministerial visits by Ministers of Agriculture; Minerals Energy and Water Resources; Education; Trade and Industry and Foreign Affairs and International Co-operation. His Excellency the President’s visits followed visits to Botswana by the Governor General of Australia Her Excellency Ms. Quentin Bryce, AC, and her Foreign Minister, Honourable Stephen Smith, in March 2009 and January 2010, respectively. During the State Visit to Australia, His Excellency President and Prime Minister Honourable Kevin Rudd, MP, committed to broadening cooperation across a wide spectrum of shared interests by signing a Plan of Action. In New Zealand, Honourable Minister Mr. Phandu T.C. Skelemani, MP, paid an official visit in June 2009 at the invitation of his counterpart, Honourable Murray McCully, MP. The visit was successful in further exploring and identifying opportunities of enhancing bilateral co-operation between the two countries. In March 2004, the High Commission embarked on a major project to build its Chancery. The new Chancery was officially opened by the Minister of Foreign Affairs and International Co-operation, Honourable Phandu T.C. Skelemani and his Australian counterpart Honourable Stephen Smith in June 2009. The Chancery showcases the distinct colours and attributes of Botswana and reflects the traditional architecture of Botswana, resulting in what many have referred to as an overall top quality project. The Chancery has won five awards both at State and national level for its design, structure and quality workmanship.

Some of the awards received include the ultimate prize, national recognition for the best 2010 National Commercial/ Industrial Construction Award in its category and top ten finalists for the grand award, the National Commercial Master Builder of the Year. At State level, the Chancery received the Australian Capital Territory State Award for Best 2009 Overall Project of the Year as well as several accolades for its interior finish, brickwork and art.

The Botswana High Commission Staff are very proud of this project and hope that it will bring a sense of great achievement and pride to all Batswana. The year 2010 has been a beautiful journey and we are committed to continue to work hard to position Botswana as a respected and influential player in world affairs as well as provide professional, effective and efficient services to our clients and stakeholders. Diplomat Africa

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FOREIGN POLICY, DIPLOMACY AND RELATIONS

Introducing H.E Molosiwa Selepeng – High Commissioner of the Republic of Botswana to the Commonwealth of Australia By Wame Phetlhu Dechambenoit; co-contributor Sethunya Sedimo

His Excellency Mr Molosiwa Selepeng is the first and current Botswana High Commissioner to Australia and New Zealand. Mr Molosiwa was appointed to this role by H.E the President Lt. General Seretse Khama Ian Khama in 2003 and has since been instrumental in the establishment and advancement of diplomatic relations and bilateral co-operation between Botswana and countries in the Asia-Pacific Region. Prior to his appointment, he served in the Office of the President as Permanent Secretary to the President, Head of the Public Service and Secretary to the Cabinet. As Permanent Secretary to the President, Mr Selepeng had responsibility over a wide range of functions including undertaking special missions to several countries as a Special Envoy and representing Botswana at various highlevel international and multilateral fora. Mr Selepeng brought a wealth of knowledge and experience into his position of High Commissioner. Under his leadership, the High Commission

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over time built an excellent relationship between Botswana and Australia as evidenced by a variety of joint venture projects and high level exchange visits between the two countries. His role carried significant importance in the conclusion of a Plan of Action on Co-operation between Botswana and Australia, signed by His Excellency President Lt. General Seretse Khama Ian Khama and then Prime Minister

Kevin Rudd in March 2010. The Plan serves as an outline of cooperation between the two countries in the areas of education, human resource development, capacity building, mining, agriculture, legal affairs, governance, public service management, as well as trade and investment. Mr Selepeng joined the Ministry of Foreign Affairs and International Co-


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operation in 1971. During his tenure in the Department, Mr Selepeng held a wide range of senior positions and was appointed Deputy Secretary in 1985. He also had postings in a number of Botswana Diplomatic Missions, including United Kingdom and Belgium. In 1980, Mr Selepeng was appointed Senior Private Secretary to the President and served both the

first President Sir Seretse Khama and former President Sir Ketumile Masire before being appointed as the Permanent Secretary for Political Affairs. Mr Selepeng is one of Botswana’s long-serving public servants and career diplomats. He has considerable experience in public administration, diplomacy, multilateralism, conflict resolution and the art of negotiation.

He is the recipient of the Presidential Order of Honour (PH) in recognition of efficient and devoted service to the Republic of Botswana. He is a graduate of the University of Botswana, Lesotho and Swaziland (UBLS) in Roma, Lesotho. He is married and has four children. In his leisure time, he enjoys spending time with his family, golfing, music and reading.

His Excellency Mr Molosiwa Selepeng, the High Commissioner

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FOREIGN POLICY, DIPLOMACY AND RELATIONS

Botswana Perspective: US Ambassador Stephen J. Nolan Botswana’s status as an African success story is well known and, in my view, well deserved. As the United States Ambassador in Botswana and as Special Envoy to SADC, I have a unique perspective from which to consider why that is. It is clear to me that, well beyond Botswana’s stewardship of its abundant resources, its success is driven by the choices made by the country’s leaders and the determination of its citizens. More importantly, good choices and strong determination are not exclusive to Botswana – they are possible throughout the region. With 10 successive free and fair democratic elections, and a single-minded commitment to re-invest revenue generated by mineral resources in its people, we see consistent efforts toward building an ever stronger foundation for the future of Botswana. The current President and his predecessors have all recognised the value of a commitment to truly democratic principles and institutions. Similarly, Batswana from across all of society understand the current economy may be fueled by finite mineral resources but it must be steered by a vision that investment in people and infrastructure unlocks infinite potential. Clearly, Botswana is a political and economic success story, but substantial challenges remain, particularly in the nation’s health sector. It is in this realm that I am extremely proud to represent the United States in Botswana. The partnership we have built together to meet these challenges is working, and working well. With the collaboration of the Government of Botswana and other partners, the results are encouraging: more than 80 percent of Batswana who need anti-retroviral treatment, get it, and more than 96 percent of

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children born to HIV-positive mothers are free of the virus. The U.S. investment of more than US$400-million over six years on HIV/AIDS is high, but the Botswana investment is twice as high. A smart partnership, we have common goals


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and a shared commitment that can succeed. One area of our most effective co-operation, and one that presents the greatest potential to build sustainability into addressing the country’s health challenges, is increasing the human capacity. Graduating more doctors and nurses, and training – and retaining – health care professionals both in the clinical setting and at the community level is paramount. And we’re making terrific headway. The University of Botswana is now operating a medical school, and building a state-of-the-art teaching hospital. The United States has stepped up with a recent grant of more than US$10-million over five years. In partnership with the University of Botswana, Harvard School of Public Health and the University of Pennsylvania School of Medicine, we have committed to a program that will transform medical education, research capacity, and clinical outreach in Botswana.

Completely apart from the democratic and economic achievements of Botswana’s current generation of leaders, long-term development success will remain elusive unless the next generation of leaders is identified and cultivated. The U.S. Mission in Botswana places considerable emphasis on this, and I am particularly pleased with the recent success of a hip hop album with positive messaging, featuring young Batswana musicians and produced with U.S. Embassy funding. We gear much of what we do toward empowering young people to take control of their lives, to position themselves to take their nation to the next level. This is particularly true with regard to their health, where HIV/AIDS is the greatest threat to the nation. While treatment of those already infected is crucial to quality of life, economic productivity, and simply put, is the right thing to do, the prevention of new infections is the ultimate solution; the endgame as it were. Perhaps the strongest element of prevention is behavior change – and the behavior of the youth matters most in this regard. Today, Batswana are building their country of tomorrow. From my vantage point, they are making the right choices, and they are advancing with commitment and dedication. This is a model that works, and while countries across the region face unique challenges, there are lessons here. Single-minded commitment to democratic principles give voice to people, and with voice, they are motivated – and able – to build a better country. The future is bright indeed.

For more information, please visit us on the web at http://www.facebook.com/U.S.EmbassyGaborone and http://botswana.usembassy.gov

U.S. Ambassador Stephen J. Nolan arrived in Botswana on September 19, 2008 and presented his credentials to President Lt. General Seretse Khama Ian Khama on October 6, 2008. Ambassador Nolan most recently served as Executive Director of the Bureau of African Affairs at the U.S. Department of State in Washington, a position he held since May 2004. Immediately prior to that assignment, he was Staff Director of the Foreign Service Board of Examiners. Mr Nolan served as U.S. Consul General in Cape Town, South Africa from August 2000 to July 2003. Before that, he attended the Department of State’s Senior Seminar at the National Foreign Affairs Training Center in Arlington, Virginia. A career Foreign Service officer, Ambassador Nolan joined the State Department in 1976 and has spent most of his career in Africa. He served two tours at the U.S. Embassy in Nairobi, Kenya, first as Supervisory General Service Officer from 1988-1991, then as Counsellor for Administrative Affairs from 1997-1999. Ambassador Nolan was assigned as Administrative Officer at the U.S. Embassy in Harare, Zimbabwe from 1993-1997. Over the course of his career he has also worked in Dakar, Berlin and Jerusalem as well as a variety of assignments in Washington, D.C. Ambassador Nolan is a recipient of the Department of State’s Superior Honor Award and the Award for Heroism. Ambassador Nolan was born in Pennsylvania. He received his Bachelor’s of Science degree from Villanova University in 1975, and a Master of Business Administration degree from the American Graduate School of International Management (AGSIM) in 1978. He is married to Judy Nolan, his wife of 31 years.

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FOREIGN POLICY, DIPLOMACY AND RELATIONS

Introducing Ambassador Charles Thembani Ntwaagae By Ntesang Lorraine Molemele

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FOREIGN POLICY, DIPLOMACY AND RELATIONS

Mr Charles Thembani Ntwaagae is currently Ambassador and Permanent Representative of the Republic of Botswana to the United Nations, New York. He is also accredited to Cuba and Jamaica. Mr Ntwaagae has had more than 30 years of work experience mostly at senior policy and managerial levels both in the Home and Foreign Service of his country. Prior to his current appointment he served as Permanent Secretary of the Ministry of Foreign Affairs and International Co-operation. Before then, he served as Ambassador and Permanent Representative to the United Nations in Geneva, as well as to the World Trade Organisation (WTO) and other Geneva-based International Organisations, including International humanitarian civil society organisations such as the International Federation of the Red Cross and the Red Cross Crescent and the World Council of Churches. He simultaneously served as Permanent Representative to the Vienna-based International Atomic Energy Agency (IAEA). Among the notable positions of responsibility which Ambassador Ntwaagae held while serving in Geneva are Chair of the Africa Group, Co-ordinator of the ACP Group of Ambassadors and Chair of the Commonwealth Developing Countries Group. In 2010 the President of the General Assembly nominated Ambassador Ntwaagae to serve as one of the two co-facilitators to lead consultations for the 2011 Comprehensive Review of Progress achieved in realising the Declaration of Commitment on HIV/AIDS and the Political Left: Press on Rio+20: 4 March 2011- Briefing the press in his capacity as the Vice Chair of the Bureau of the Preparatory Committee for Rio+20, due to take place in June 2012.

Declaration on HIV/AIDS. Ambassador Ntwaagae is also in the 10-member Bureau of the 2012 United Nations Conference on Sustainable Development. The Bureau provides leadership in the Preparatory Process for the Conference which will be held in Brazil in June 2012. Ambassador Ntwaagae has also served in other senior level positions, including Deputy Permanent Secretary, Ministry of Local Government, Deputy Secretary, Ministry of Foreign Affairs and International Co-operation and Executive Director of the National Conservation Strategy Co-ordinating Agency. Ambassador Ntwaagae holds a Bachelor of Arts Degree with majors in Political Science and Public Administration from the University of Botswana and Swaziland, and a Masters Degree from the Pennsylvania State University. He is also a Fellow of the World Bank/IMF Economic Development Institute.

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FOREIGN POLICY, DIPLOMACY AND RELATIONS

EU happy to help SADC develop By Rebaone Odirile

The European Union leadership in Botswana – which also doubles as representative in the regional body, Southern African Development Community (SADC) – has changed face, replacing Paul Malin with Gerard McGovern; and both men, are Irish. What remains unaltered, as explained by the EU officials, is their resolve to actively help Botswana and SADC attain their goals of laying down the foundation for constant development characterised by prosperity in as many homes as possible. SADC is hard at work, eager to attain regional integration and lift their citizens from lifestyles devoid of any semblance of dignity. With an integrated block of the 15 member countries, SADC is holding fast to the belief that such will herald massive opportunities for the investor community as well as workers. Economic, political and social stability will reign in the region, as an integrated

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SADC will ease the way for ironing out differences between member states. SADC is not running short of aid to pursue this endeavour. EU is one of the regional bodies from developed nations that have pledged to assist SADC. In fact, just recently, the EU adopted a decision to fund a five-million euro Technical Co-operation Facility to strengthen coordination, harmonisation and the development of the national-regional linkages. The fund also backed the economic Partnership Agreements and possible “Aid for Trade” assistance within SADC. The fund is to finance studies and short-term expertise and initiatives aimed at enhancing regional integration initiatives pursued at both national and regional levels. The initiative is funded by the 10th European Development Fund which provides 116-million euros for the period 2008-2013. The fund is aimed at strengthening regional economic integration and regional political co-operation in the region. Before he left Botswana, the then Head of the EU Delegation, Malin reminded the region that the EU mission to assist the 30-year old SADC was a product of a sober and deliberate discourse, saying there was no reason why they (SADC leadership) should not continue to count on EU in assisting them march towards prosperity for all of their nationals. He said that the EU has decided to support SADC’s initiative to integrate the region because there is no doubt it is a good cause; that regional integration has the potential to foster economic prosperity and ensure peace and security to a point of eventually transforming people’s living standard. In the past five years, the SADC block has enjoyed relative peace, stability and economic progress. Commendation from other reputable organisations across the world continues to pour in, with reference to milestones such as the consolidated active and participatory democracy built on good governance. “EU strongly supports SADC’s efforts to take forward its regional economic agenda as an integral part of the region’s strategy to alleviate poverty and promote a better life for all its citizens,” said Malin in a statement he penned as he prepared to leave the country.


FOREIGN POLICY, DIPLOMACY AND RELATIONS

The EU opened its office in Botswana as far back as 1981. It immediately introduced its main development instrument, the European Development Fund (EDF). The EU executes its development co-operation initiatives within African, Caribbean and Pacific countries through the EDF. The EDF is a fund that is not part of the general Community budget, but founded by the EU Member States, covered by its own financial rules and managed by a specific committee, according to official information sourced from the European Union. The EDF fund generally has a life-span of at least five years and, is often accompanied by new financial resources, strategies and priorities to improve sustainable aid development. Its main purpose is to promote economic and social development with a particular focus on reducing and alleviating poverty in the long-term by providing beneficiary countries with technical and financial assistance. Within Botswana, the EU’s efforts have been publicly celebrated. No wonder that Malin was at ease proclaiming that he was leaving Botswana a happy man, basking in the knowledge that during his term, a number of the EUinfluenced projects were successfully implemented.

“We have seen an increase in the number of children going to school,” Malin wrote in the organisation’s newsletter in which his parting shot was well captured. His hopes were clear too; that one day, all Botswana children would get an opportunity to attend pre-school and that those with disabilities or not having Setswana as their mother tongue, will be better integrated into society. The EU’s aid to Botswana has increased by P90-million. The aid extends to development of human resources. Although the aid is to be used by government through the ministry of Finance and Development Planning, the EU is able to disperse funds directly into the coffers of non-state actors. In 2006, the EU launched a grant fund whose sole aim was to assist and enable civic society to deliver on their mandate without some disturbance through lack of funds. So far, at least 64 organisations have received the grant totaling P14-million. Given that these are organisations that operate at a grass roots level, they should be able to intensify their work and identify problems facing communities and address them accordingly and promptly.

Gerard McGovern

Paul Malin Diplomat Africa

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Perspective from a diplomat’s daughter By Thembile Tebogo Legwaila

It would be inaccurate for me to speak on growing up as a child of a diplomat in a general sense, as I know for a fact that my father was and is in no way, your regular diplomat. Every case is different, and every child’s experience, in turn, is also different. When I was born in New York in 1983, my father had already successfully been representing Botswana at the United Nations as Ambassador for a good three years; a title he would hold for another 18 years (the longest occupation of any Ambassador since the formation of the United Nations in 1945). I have always been a child of a diplomat, and though my father is now retired, I still consider myself as that. To me, my childhood was fairly normal. So deciding on what to focus on in this article, was something I struggled greatly with. The ‘privileged’ life If asked to write a similar article, I can imagine that most offspring of diplomats in foreign service would speak of the glamorous and exciting privileges; not having to pay the relevant sales tax in your temporary country of residence, living in a massive house, having drivers and house-hands to assist at your every beck and call, and being the “cool kids” at school because there is a picture of your father and Fidel Castro in the atrium of your 2.2 million dollar home. However, in a case like mine, where you’ve never known any other kind of lifestyle, it was virtually impossible to have let these perks become the most deserving of mention of all 46

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the privileges of my childhood experience. This is not to say that all of the above privileges were not appreciated because they were. For many years, though, the privileges were heavily outweighed by the harms of this thing called diplomacy. In my young mind, the U.N. and diplomacy as a whole kept my father from attending my high school graduation, they kept him from being around during my very important violin recitals and from all the Sundays I sang the solo parts in the church choir. When you are a teenager, these menial events seem far more important for your father to attend than the attendance of a treaty signing representing the easing of tensions between two countries at war with each other. Now, many years later, I am able to fully appreciate the importance of my father’s work, the history he made, and the lengths that he went to not only to provide a wonderful life for us, his family, but for the countries where he successfully headed U.N. missions in the service of


FOREIGN POLICY, DIPLOMACY AND RELATIONS

Thembile Tebogo Legwaila (above) and left with her father, Legwaila Joseph Legwaila.

mankind and Botswana. Not your average trip to the beach I remember taking a trip with my mother and sisters to Namibia to visit my father who had spent one year as the Deputy Special Representative of the U.N. Secretary-General in Namibia between 1989 and 1990. I was still very young at this time, and my memories of this trip are few and far between. Aside from the near-death flight where our lives were pushed to the limit when lightening sliced through the tip of one of the plane’s wings and having bodyguards follow us around wherever we went once we arrived, there are not many things I remember about our time there. Looking back now, some 11 years later, I am proudly aware that among many other things, my father’s time in Namibia in those years was to play a pivotal role in managing the change that gave Namibia and its people independence and freedom through the United Nations Transition Assistance Group (UNTAG). My father’s involvement in this mission in collaboration with others marked the peaceful unravelling of 70 years of pressure and brought the Namibian population into a future of peace and freedom. In 1990, at seven years of age, this trip meant nothing more to me than fun times at the beach with my sisters. But now as I sit here, mature and more understanding, I am overwhelmed with pride to

know that when people speak of my father, positive life-changing events of thousands and millions of people, such as the Namibia case, are just a few of the things that he is known for. The real meaning of diplomacy And this is just the tip of the proverbial iceberg when it comes to the impact that he has made on the livelihood of others through his diplomatic efforts. My father has successfully managed peaceful missions in various other countries. More recently, was his role as Special Representative to the U.N. Secretary General in the United Nations Mission to Ethiopia and Eritrea between the years of 2000 and 2006, where the Mission successfully managed to establish a Temporary Security Zone (TSZ) between Ethiopia and Eritrea that was, for the most part, respected and honoured by both countries, who previously, were at a bloody war with each other. All in all, growing up as the child of a diplomat required great sacrifice; not being around the extended family while living in a foreign land, missing important events such as weddings, and even worse, funerals of loved ones, and not being able to learn my “native tongue”, brought many frustrations in my younger years. Not to mention, I now have an inherent dislike of airports as many of my memories involved holding onto fear at the departure terminal, crying my eyes out, watching my father disappear

into the crowd to travel to whatever warring land he would be living in. It was by no means a walk in the park. I was reminded the other day of how much it was all worth it, when I met a perfect and complete stranger who after discovering my surname told me how much he admired my father, and how proud he’d made him to be a Motswana. Knowing that all those sacrifices, teary goodbyes, frustrated social interactions were for the causes of bringing peace, freedom and equality to so many people, I would do it all again. But what trumps all of this – the privileges and the pride of knowing what my father has contributed to society – is the fact that both of my parents worked tirelessly to instil values in my sisters and myself that we would have received here in Botswana but were in severe deficit in the USA. This ensured that we wouldn’t be consumed by the superficiality of growing up in the way we were exposed to. And this, amongst many other reasons, is why today I find myself happily living in Botswana, a country that was far from “home” to me for 20 years. I am often asked why I moved to Botswana and many find my reasoning hard to understand, especially those who see America as a place of magic, dreams and endless possibilities. Perhaps I can explain it best by saying that there is no other country I would rather call home than the one that bore and bred the man that I am proud to call my father, the far-from-regular diplomat. Diplomat Africa

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Lesego Mathware helps Africans help themselves through the Diamond Empowerment Fund By Moses Maruping. Photograph by Shike Olsen

Born and raised in Botswana, Lesego Mathware always wished to see his community empowered. After high school, he embarked on a journey across the world to acquire knowledge and learn about different cultures. This was just the start of his philanthropic path. He describes himself as a simple guy, who was raised in a strong and tightly-knit family. Despite his strong command of the Queen’s English, Lesego says he attended a government school while his two siblings were fortunate enough to attend private schools. The 26-year-old energetic go-getter says despite his sought-after position where he works at the Diamond Empowerment Fund (DEF), a non-profit international

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organisation started by Russell Simmons and Kimora Lee Simmons which helps Africans empower themselves, he remains a humble guy from Botswana and is always willing to learn. “I’m simply driven, confident and above everything else, a philanthropist who is always willing to help those in unfortunate circumstances”, he says with a glint in his eyes – adding that at a very tender age he was fortunate enough to play squash; a sport he says guided him and kept him away from the many rampant social ills which afflict the youth. “This sport helped me access an inner greater power in me, and both my mum and dad pushed me to the limits. However, with regards to what I’m doing now, I don’t think I’m the chosen one. This is just a prime example of what Batswana youth are capable of. It wasn’t a mistake that Barack Obama became president of the USA. He worked hard at it,” he says adding that the harder one works, the luckier they become. Quizzed about how he came to work with Russell Simmons, Lesego explains that they met when the movie Blood Diamond was released, which threatened the existence and profitability of Botswana diamonds. “I caught wind of Simmons’ coming to Botswana as part of De Beers’ campaign to preach about the cleanliness of our diamonds. It took me about three weeks to meet the man and when I finally did, I didn’t waste any time and was appointed as an intern in his office.” He considers himself a God-sent servant who has been sent to this planet to serve. He says it was after Simmons’ 2006 trip to Botswana that he started to volunteer and realised that the DEF was a worthy organisation to work for. “In 2006, while completing a fact-finding mission to southern Africa to see first-hand how diamonds are empowering Africans in Botswana and South Africa, Russell and his delegation witnessed concrete examples of how the diamond industry directly enhances sustainable economic development and contributes to the overall selfempowerment of African people and communities. They first chose those places in Africa where there were stable democratic governments and the kind of government-


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private sector joint ventures that have a factual and transparent track record of improving the quality of life,” Lesego said. He noted that DEF was launched with Simmons Jewelry Co.’s leading support. Building on this positive first step, Lesego mentioned that the vision for DEF is to engage the entire diamond and jewellery industry in raising funds to benefit educational initiatives in African nations where diamonds are a natural resource. He said DEF is diligently working to build alliances with the diamond jewellery industry to raise funds towards their mission of helping organisations empower Africans through education. He said the other interesting aspect about DEF is the African Leadership Academy where young people are enrolled in a two-year mentorship programme in leadership skills, and as soon as they complete this, are sent back to their respective countries to give back by utilising their newly found skills. “I’m blessed to work hand-inhand with the former president of the republic of Botswana, Festus Mogae, as well as Bank of Botswana governor, Linah Mhohlo, who both sit in the DEF advisory board. Their advice from time-to-time is widely appreciated,” says Lesego, adding that he has always loved the responsibility as there is no room for error. “I wouldn’t change a single thing in my life. I think of everything as God’s work. He made me strong, defined who I am and always prepares me for the next day. Let me just say I’m in a good place.” Asked how he passes his time, Lesego said luckily he lives next to Central Park and he regularly takes walks. Sometimes he unwinds with a good book, but he quickly admits he has not yet reached a time in his life where he can relax. His greatest belief is that those who have a lot should give in abundance. “What good are you if you’re stinking rich but you still keep (for) yourself? Giving is the greatest thing one can do (for) themselves. God will bless you more,” says Lesego. In parting, the New Yorker had only this to say: “see a vision and stick to it.” Diplomat Africa

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LEATHER

PHARMACEUTICAL

BEEF

MINING

GLASS

ICT


Chapter 2: Trade and investment


TRADE AND INVESTMENT

The Southern African Development Community (SADC)

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TRADE AND INVESTMENT

Executive Secretary Dr Tomaz Augusto SalomĂŁo

The Southern African Development Community (SADC) has been in existence since 1980, when it was formed as a loose alliance of nine majority-ruled States in Southern Africa known as the Southern African Development Co-ordination Conference (SADCC), with the main aim of co-ordinating development projects in order to lessen economic dependence on the then apartheid South Africa. The founding Member States are: Angola, Botswana, Lesotho, Malawi, Mozambique, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe. SADCC was formed in Lusaka, Zambia on April 1st 1980, following the adoption of the Lusaka Declaration – Southern Africa: Towards Economic Liberation. The transformation of the organisation from a Co-ordination Conference into a Development Community (SADC) took place on 17 August, 1992 in Windhoek, Namibia when the Declaration and Treaty was

signed at the Summit of Heads of State and Government thereby giving the organisation a legal character. The Member States are Angola, Botswana, The Southern African Development Community (SADC) the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe.

SADC headquarters are in Gaborone, Botswana. SADC Headquarters Plot No. 54385 Central Business District Private Bag 0095 Gaborone Botswana Tel: +267 395 1863 Fax: +267 397 2848 Email: registry@sadc.int www.sadc.int

THE SADC VISION The SADC vision is one of a common future, a future within a regional community that will ensure economic well-being, improvement of the standards of living and quality of life, freedom and social justice and peace and security for the peoples of Southern Africa. This shared vision is anchored on the common values and principles and the historical and cultural affinities that exist between the people of Southern Africa. Diplomat Africa

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SADC building on its economic muscle

The power of the spirit of neighbourliness reigns high in Southern Africa By Rebaone Odirile

As globalisation pushes nations closer to each other, member countries of the Southern African Development Community (SADC) block appear well on course to improving intra-regional trade, a move symbolised by the adoption and implementation of sound economic initiatives. The regional block is focused on phasing out borders within member countries to pave the way for smooth, efficient and thriving regional economy. In 2008, the regional block adopted the first phase of a Free Trade Area (FTA), a development that resonated well with investor interests. At least 12 of the 15 member countries subscribe to the FTA today. Angola, DRC and Seychelles are still to subscribe to the initiative. With the FTA, SADC is aiming at being a borderless block, doing away with situations where trucks full of commercial wares spend days at borders waiting to clear, something that contributes to costs that investors have to grapple with.

“(A) free trade area is about further liberalisation of intra-regional trade in goods; ensure efficient production; contribute towards the improvement of the climate for domestic as well as cross border and foreign investment,� stressed Namibian President Hifikepunye Pohamba last year when he ascended to the Chairmanship of SADC.

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TRADE AND INVESTMENT

The words may have been said by President Pohamba, but they reflect a position representative of the entire regional leadership. In Botswana, a Trade Industry minister has gone on record explaining that once successfully set up; the FTA will enhance economic development, diversification and industrialisation of the region. The specific strategies adopted to achieve these objectives have been listed as: gradual elimination of tariffs; adoption of common rules of origin; harmonisation of customs rules and procedures; harmonisation of non-tariff barriers; liberalisation of trade in service and; harmonisation of sanitary and phyto-sanitary means. In one of its highly regarded booklets published in 2010 entitled Towards a Common Future, one team 15 Nations, SADC observes that the FTA has helped create an environment conducive to investment and trade. “With the FTA, tariffs have reduced to zero for substantially all products meeting the rules of origin with at least 85 percent of trade conducted free of duty,” reads Towards a Common Future. It is expected that by the end of 2012, the remaining 15 percent of products, classified under the sensitive schedules, will also be traded duty-free. However, that shall be done once the processes to remove non-tariff barriers to trade in the region have been successfully done. Such processes are ongoing, according to information sourced from SADC Secretariat, which is based in Botswana’s capital city, Gaborone. But even with the remaining 15 percent of products, the monetary input of the FTA has become convincing. From 2009 data, the FTA covered a regional market worth around US$380-billion in total gross domestic products and a total population of 170-million. Once Angola, DRC and Seychelles join in, the figures could balloon to US$465billion and a population of 250-million. Yet another economic milestone initiative, equally crucial for strengthening trade between SADC member countries, was adopted in 2006, named the Finance and Investment protocol, which stands out as an integral pillar of the SADC economic agenda; a tool for achieving regional integration through the harmonisation of finance and investment

policies. The strength of the protocol is that it sets out legal basis for co-operation in the areas of finance, investment and macro-economic policy. The protocol commits member states to co-ordinate their investment regimes and co-operate to create a favourable investment climate throughout the region; reduce changes in macro-economic aggregates among member states, and commit them to converge on stabilityorientated economic policies and; co-operate in taxation related matters in order to facilitate trade and improve the investment climate while strengthening tax administration to defer fraud and smuggling. With an improved trading environment, SADC hopes to become a world economic player with sizeable muscle. With that improvement, the region will be building on to its present strength currently premised mostly in its contribution towards the world’s demands for minerals. “A number of countries rely on their minerals sector for their own foreign exchange earnings and there is potential for investment and wealth creation within this sector,” according to information coming out of the SADC Secretariat. The Secretariat has pointed out too, that at present, SADC is working on improving the legal and regulatory framework that governs production and sale of gemstones. It is a move set to keep gemstone trading a watertight commercial undertaking, with no room for undesirable elements. Diplomat Africa

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TRADE AND INVESTMENT

China is winning over the heart of Africa – will the West keep up? By Doug Saunders

While we’ve been busy looking at noisier events elsewhere, a small boom has been taking place in the lands south of the Sahara. Still the poorest place in the world, the heart of Africa is nevertheless catching up fast, with huge improvements in infrastructure, industry and most importantly agriculture; it could soon become the world’s major food producer. We North Americans and Europeans haven’t been paying much attention to this huge expansion for the simple reason that we’ve had little to do with it. The jet traffic between Beijing and the capitals of sub-Saharan Africa is intensifying. Chinese Vice-President Xi Jinping recently finished a two-day visit to Botswana

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in which he signed financing deals worth millions in infrastructure and energy development. Two days earlier, he’d made major deals in oil-rich Angola. In Ethiopia, Chinese private and state investors have opened a US$27-million leather-goods factory that will employ 500 Ethiopians; the same investment fund is also building cement plants and an airport hotel nearby. Sudan, which imports 80 percent of its food, announced plans to quintuple its current wheat cultivation with backing from Chinese and Persian Gulf investors, increasing its acres under cultivation by 25 percent a year for a decade. And this is nothing out of the ordinary. The Chinese claim to have more than US$1.5-billion invested in Africa now, up from US$210-million; they employ at least 300,000 Africans in their own countries (and, increasingly, import African workers to the cities of the Pearl River Delta) and have built 60,000 kilometres of roads and 3.5-million kilowatts worth of power stations there – far more than any other country. China has replaced the United States as the largest trading partner of South Africa, the continent’s biggest economy, and annual China-Africa trade has topped US$100-billion for the first time. There are good reasons why African leaders are turning to China. The Chinese are often the only ones willing to pay for the stuff that Africans really need. Western aid spending has increasingly moved away from big infrastructure and industrial projects, or has abandoned the continent more or less completely. And “emerging market” investment funds, despite all their hype about seeking the best returns and untapped investments around the world, have never really gone near


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the world’s largest investment opportunity in sub-Saharan Africa. Our capitalists are too timid to go there. And our investment strategies are rarely more than short-term: while transforming Africa’s agriculture into a commercial success may be one of the biggest business stories of the century, Westerners are unwilling to tie up their money there for 20 years before seeing a good return. For China, with its huge current-account surpluses, this time scale is ideal. And there’s a huge need for investment. According to the World Bank, Africa will need US$93-billion a year in infrastructure investments in roads, electricity and telecommunications through the next decade; at least US$31-billion of this will have to come from outside Africa. A recent study concluded that Africa could become a larger producer of rice than all of Asia – at a time when the world desperately needs more food output – with the right investments. If China and other non-democratic states are left to fill this huge investment gap, it could come at a political cost. Medard Mulangala Lwakabwanga, an MP from the Democratic Republic of the Congo, who is watching his government turn to China for investment, in large part because they see Western countries as more interested in war-crimes tribunals and truth and reconciliation commissions than in building road links and irrigation networks, issued a warning. The Chinese don’t care if Congo’s government contains war criminals. “China does not call on anyone to be sent to The Hague – it is not a signatory to the ICC treaty,” Mr. Lwakabwanga wrote. “Nor does it call on African nations to respect international conventions on corporate contracts, rights for workers, defend free speech or hold free and fair elections. So many African nations now have a choice: why listen to the West, with its rules and regulations and demands, if you don’t have to?” Mr. Lwakabwanga, like many freedom-seeking Africans, does not want growth at the price of tyranny. “The West can raise its game in the continent,” he writes, “meet the Chinese challenge and help to build a more transparent and content Africa.” If we want to do good on the continent, we’re going to have to start doing more business.

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TRADE AND INVESTMENT

Zambia’s economic growth The Zambian economy is expected to enjoy a growth of 6.5 percent in 2011 and 6.6 percent in 2012 according to a Reuters’ survey of economists. This is as a result of improvements in agriculture and elevated copper prices. Copper prices gained more than 200 percent on the London Metal Exchange after the lows of 2008. This rebound is said to be as a result of demand from emerging economies and China. Gregan Anderson, an analyst at Business Monitor international in London expects prices to remain elevated as a result of this “sustained global demand”. Zambian Minister of Mining, Maxwell Mwale, says copper production will rise from below 750,000 metric tonnes in 2010 to 850,000 metric tonnes in 2011 as a

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result of mine expansion. The International Monetary Fund (IMF) projected last year that, after the copper and tourism outputs which resulted in the 6.6 growth for 2010, Zambia would see strong economic growth this year. Zambian Minister of Finance, Situmbeko Musokotwane has projected growth to average 6.5 percent every year between 2011 and 2013. However, the economy of Zambia does not rely solely on its developments in copper mining and agriculture. Great increases of spending in infrastructure, as well as the development of the manufacturing sector, are also seen as major contributors to the economic boost. This will create a more stable

environment for investors. This has created significant interest in nonmining sectors, such as manufacturing and agriculture which have major projects underway this year. New legislation for drawing foreign investment aims to double the contribution of mining to GDP by 2015. There is a risk of inflation as a result of the high cost of food. However, the improvements in agriculture and mining this year could see the Zambian economy pull through. The key for this year is to cut public spending and improve revenue collection. As Africa’s biggest copper producer on the wave of increased global demand for the metal, this seems to be more than possible.


Dumelang and welcome to

Itekanele Health! We are a medical aid that is geared at providing affordable health cover for all, through partnerships with Health Professionals across Botswana. We view quality healthcare as a fundamental right that must be enjoyed by all people regardless of their socio-economic status. That is why at Itekanele we are driving down the cost of medical care to cover families all over Botswana.

Tel : +267 390 5548 Fax : +267 390 6741 www.itekanelehealth.co.bw


TRADE AND INVESTMENT

The gem called Debswana By Rebaone Odirile

The rise of Botswana is best described as a small land-locked African country, which was poverty stricken at independence in 1966 and left entirely to fend for itself by the former administration, and is today recognised by the world as a benchmark of how best to develop and manage a national economy. But as every Motswana will tell you, the achievements did not come on a silver platter. There may be different versions of the story of how Botswana became the darling of the international community today, but it is an uncontested truth that the nation’s post-independence economic history cannot make sense without mentioning the name Debswana. Mainstay of the Botswana economy Founded in 1969 in an equal partnership by the people of Botswana through their government and the De Beers Group, Debswana (which was initially called De Beers Botswana Mining Company), has since then developed into the backbone of the national economy. The formation of Debswana was perhaps the biggest economic initiative that the government of Botswana undertook in the three years post-independence. In fact there has never been any doubt about the company’s position as the mainstay of the national economy; an economy that is today ranked in the world as being among the best managed. Producer of diamonds for development Debswana is the country’s highest foreign revenue earner; the second highest employer after government; and no other company awards tenders more than it does. This means that, other than government, the private sector look up to Debswana for lucrative contracts in order for them to thrive.

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For those unfamiliar with the story of Debswana, it is worth pointing out that the company specialises in the mining, recovering, sorting, evaluating and marketing of diamonds. It has four mines in Botswana, namely, Jwaneng, Orapa, Letlhakane and Damtshaa. It produces the world’s highest diamonds by value. Pace-setters in value adding social responsibility initiatives It was no surprise that Debswana became the first company in Botswana to supply its HIV/Aids affected employees and their spouses with anti retroviral drugs to ensure they lived healthy, happy and productive lives. That was as far back as the late 1990s, after which, the company introduced saliva testing for HIV/AIDS. These steps were hailed as milestones to later be adopted by other high profile mining companies. The company’s corporate social investments include the mining hospitals in Jwaneng and Orapa, which do not only serve the employees but members of the community too. Debswana’s board of directors have made it clear that Debswana should now include among its priorities, the need to improve operations as well as develop a strong


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management team that comprises of local people. The pressure to give top posts within Debswana to locals has always been a topical issue. Both shareholders and the general public feel that by now, top positions in the company should be in the hands of Batswana. It was for this reason that when the company’s new Managing Director, Canadian national Mr Jim Gowans, was announced late last year, the development of a strong management team of Batswana was read as part of his job requirement. Also cited as one of his tasks, is to make the company a reputable world player. “Jim will be tasked with ensuring that Debswana mines are the best managed anywhere in the world,” stated Nicky Oppenheimer, the Chairman of the board of directors. Gowans has his job cut out for the next three years, which is the duration of his contract. In the next three years, Gowans will hopefully learn that Debswana mines have big potential to be a tourist attraction, given that weekly, groups of people can be scheduled to take walks at mines and shown the fountains of the nation’s wealth. Should Botswana eventually actively pursue mining-tourism, it would virtually be opening another angle of diversifying the economy from diamonds. But foreign nationals who come to Botswana to visit Debswana mines are driven by the desire to learn how the country has not been a victim of the ‘resource-curse’, which has afflicted other African countries blessed by minerals, where civil wars

New MD: Jim Gowans

Nicky Oppenheimer, Debswana Chairman of the board of directors

have denied people the opportunity to enjoy the fruits of their minerals. Botswana remains a reference point of how nations can avoid the ‘resourcecurse.’ The Toronto based Fraser Institute confirmed Botswana as a giant in the business of mining in its 201011 annual global Survey of Mining Companies. It shows that Botswana achieved a score of 74, up from 66.5 last year. This placed the country as 14th among all the jurisdictions, and 7th among the nations surveyed. The improved score restores Botswana to the previous highpoint of 2007/08, just before the global recession. Authors of the Survey observed that while “Africa’s average score has not improved in the last four years” (the African average went down to 40.5 from 41.8), Botswana continues to perform strongly. Since 1997, the Institute has surveyed mining and exploration companies to assess how mineral endowments and public policy factors such as taxation and regulation, affect exploration investment. Survey results thus represent the opinions of a wide range of executives and exploration managers in mining, and mining consulting companies, operating around the world. This year’s survey included data on 79 key jurisdictions, located on every continent except Antarctica, further incorporating separate assessments for sub-national jurisdictions in Canada, Australia and the United States.

Top 20 Mining Jurisdiction 2010/11

www.debswana.com

Jurisdiction 1. Alberta (Canada) 2. Nevada (USA) 3. Saskatchewan (Canada) 4. Quebec (Canada) 5. Finland 6. Utah (USA) 7. Sweden 8. Chile 9. Manatobia (Canada) 10. Wyoming (USA) 11. South Australia 12. Greenland (Denmark) 13. Newfoundland & Labrador (Canada) 14. Botswana 15. Yukon (Canada) 16. Ireland 17. Western Australia 18. Ontario (Canada) 19. Nova Scotia (Canada) 20. New South Wales (Aus)

Score 90.4 89.3 87.5 86.6 86.0 85.1 82.3 81.3 80.3 77.8 75.9 74.9 74.6 74.0 73.0 72.6 70.6 68.7 68.6 68.2

Fraser Institute Ranking of African Mining Jurisdictions 2010/11 Jurisdiction 1. Botswana 2. Burkina Faso 3. Mali 4. Namibia 5. Niger 6. Ghana 7. Guinea 8. Zambia 9. Tanzania 10. South Africa 11. Zimbabwe 12. Madagascar 13. D.R. Congo Diplomat Africa

Score 74.0 66.3 58.2 57.9 47.9 45.1 40.2 34.9 32.4 23.4 22.4 15.6 07.8 |

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Botswana Export Development and Investment Authority (BEDIA) Our Mandate BEDIA was formed in 1998 as a parastatal reporting to the Ministry of Trade & Industry (MTI) and is the lead Investment Promotion Agency in Botswana. Among other things, BEDIA is charged with promoting Foreign Direct Investment (FDI) into Botswana, promoting locally manufactured goods to regional and international markets, improving investment climate through policy advocacy, increasing citizen participation in the economy and creating sustainable job opportunities for Batswana. Over the years, BEDIA has played a critical role in marketing Botswana, selling investment opportunities in the country and assisting local entrepreneurs in identifying market outlets outside Botswana. Our Vision We will be globally recognised as a leading trade and investment agency in Southern Africa. Our Mission To promote investment in export orientated activities which will result in economic diversification, rapid economic growth and sustained employment opportunities in accordance with Botswana’s social and economic policies and objectives. Our Values • Accountability We work to clear purposes and defined outcomes with identified parameters using transparent, quality and consistent processes and reporting as necessary stakeholders. • Ethical Behaviour We are open, honest and consistent in all business dealings. We conduct business in a professional and ethical way. • Responsiveness We work with stakeholders in a way that is consultative, timely and innovative to best meet their changing needs. Our Objectives The main objectives of BEDIA are: 62

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TRADE AND INVESTMENT

To promote inward investment into the country by encouraging; • The establishment of manufacturing enterprises with special emphasis on export orientated manufacture and in the import replacement sector; • Investment in selected services, for example information technology; • To organise and participate in trade exhibitions and contact promotion missions to other countries, in order to expose manufacturers to the international market and identify market outlets for goods manufactured in Botswana; • To promote the establishment of joint ventures between local citizens and foreign investors; • To encourage the transfer of technology and the building up of skills of citizens working in the manufacturing sector; • To construct factory buildings and deal with the property market for investors to utilise; • To provide a one-stop service facility to ensure that all clearances, residence permits, work permits, factory space, land, etc, are obtained with minimal delays by existing and new enterprises. Investment Opportunities Some of the priority sectors that BEDIA is actively selling are: glass manufacturing, beef and beef by-products, leather manufacturing and Information Communication Technology. Opportunities are presented through the research analysis, investment in a qualitative and quantitative manner, to assist investors in making sound investment decisions. Information Communications Technology (ICT) Since its aggressive embarkation on ICT development, Botswana has since rapidly progressed, developing world leaders in the application of ICT who ranked third in Africa, in the Global Information Technology Report 2008-09. Manufacturing This sector has the most growth potential due to

Botswana’s access to larger markets through regional integration and international trade agreements. Over the years major manufacturing exports included textiles and polishing of diamonds and semi precious stones. Now there is a wide range of goods the country manufactures for both the domestic and export markets. Tourism Travel and tourism have a strong future potential and are regarded as an engine for economic growth. Diversification into ecotourism is the tool that has been identified as a key contributor to a rapid growth niche in the travel industry. Education Botswana has invested a lot of effort and resources in the development and growth of the education system. The result is a literacy rate of over 80 percent – which is more than most SADC countries. The system is constantly improved and developed through a number of education initiatives. Mining Mining accounts for a large portion of Botswana’s national foreign exchange earnings and the largest single source of GDP propelling the high economic growth. Botswana was ranked 18th in the world at the 2009 Fraser Institute Survey of Mining Companies and foremost preferred destination for mining and mineral investment in Africa. The Cargo and Logistics Sector Cargo and logistics comprises three main areas, namely the Air Cargo Hub, Gabcon Freight Village and the Mining Supplies and Logistics Hub. As a whole, the sector is responsible for exporting perishables, the import and export of pharmaceuticals and vaccines (Air Cargo Hub); local and regional consolidation and movement of general cargo (Gabcon Freight Village); as well as providing warehouses for rent, the consolidation and distribution of consumables, capital equipment and spares (Mining Supplies and Logistics Hub). The sector is expected to create up to 237 jobs by the year 2022. Diplomat Africa

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BEDIA One-Stop Service BEDIA promotes a customer centric approach in dealing with investors. Through its One-Stop-Shop, all investors are assisted in securing necessary permits and approvals including land and property. The process of acquiring work and residence permits, visas, licences and other approvals is fast tracked through this system. Beef Botswana is the exporter of lean quality beef which features prominently in markets throughout the world particularly the European Union. Health The health sector remains a prime area for investment in the country and is committed to providing quality health professionals and pharmaceuticals nationwide. Botswana imports both raw materials and pharmaceutical medicaments thereby increasing the investment opportunities. Industries

Opportunities

Textile, Garments and accessories

Manufacture of various textiles and garments to take advantage of the Contonou Agreement and the Africa Growth and Opportunity Act, which allow entry into the EU and USA markets free of duty and quota

Leather products

A state of the tannery is operating producing leather. Opportunities are available in manufacturing leather products like bags, belts, leather garments, protective and fashion shoes

Glass products

Raw material for glass manufacturing is available in abundance – silica sand and soda ash. Investment opportunities are available for manufacturing float glass, container glass, decorative and fibre glass.

Jewellery

Cutting, polishing and setting of diamonds and semi-precious stones.

Beef & beef by products

Weaner production, establishment of feed lots, feed mills and flexible pounches

Agriculture

Daily Farming stock feed production, Green house and hydroponics, crop production

Pharmaceutical Vaccine production and Packaging, manufacture of cleaning chemicals Cargo & logistics

Air Cargo hub, Gabcon freight Village, Mining supplies & logistics hub

Education

Graduate Business School, Hospitality and Tourism School, Mining and Energy School, Agriculture and Livestock Management School, Medical Science and Research School, Conservation and Veterinary Sciences School, Peace and Justice Centre

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Leather and leather products A large number of finished leather products are imported from the region and overseas markets, although there are manufacturers who produce for both the local and export market. Energy Currently, Botswana has relatively limited primary energy resources and largely relies on imports. There is substantial potential in renewable energy sources like solar, which is the most abundant in the country. Investment opportunities lie in the energy sector through the supply of related products, solar panels, energy generating equipment and applicators. Agribusiness Agriculture continues to be a main sector sustaining the lives of most Batswana and is considered as the touchstone of the society. Export Enterprise Development BEDIA


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identifies market outlets for locally manufactured products, with a major strategic focus on seeking and promoting products that are suitable to enter the export market. This is done through identifying and researching new markets to facilitate targeted export promotion aimed at selected buyers, including investigation of opportunities in markets that have trade agreements with Botswana, so as to maximise benefits. Business Facilitation Services BEDIA operates an investor friendly facility, commonly known as One-Stop-Service-Centre. The facility, which has been operating for the last seven years, came as a result of a series of consultations between private sector and the Government. BEDIA also realizes that in order to succeed in its core business, the environment for business in Botswana must be right and conducive.

BEDIA, through the Business Facilitation Unit, provides professional service to both new and existing foreign and citizen investors. The main aim is to enable investors in the manufacturing and selected services sectors (excluding retailers and wholesalers) to secure all government clearances and approvals as quickly as possible. These entail among others; industrial licenses, work and residence permits, visas as well as infrastructural facilities like land, factory space and utilities. Through its advocacy role and interaction between the private sector and government, the Ministry of Labour and Home Affairs has given BEDIA and the Ministry of Labour and Home Affairs has given BEDIA and the Ministry of Trade & Industry a special dispensation (through the Employment of Non-Citizens and Immigration Acts), to recommend to them the exemption of all approved investors and expatriate employees of companies holding the following positions: • Chief Executive Officer • Production Manager • Technical Manager • Operations Manager • Manager Sales and Marketing • Manager Financial Also through our One-Stop-Service-Centre, BEDIA provides an After-Care Programme which aims to: • Identify problems encountered by new and existing companies in the implementation and operation of projects, and offer assistance through direct consultation and co-operation with the relevant departments. • Extend support to existing companies in the planning expansion, diversification and other reinvestment opportunities. • Undertake periodic review of problems faced by industries and formulate new measures to expedite project implementation to ensure smooth operation of existing companies. • Update and enhance existing database on companies in production. Diplomat Africa

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Furthermore, BEDIA has a wide range of multi-user factory shells ranging between 250 square metres to 2000 square metres in Gaborone and Mogoditshane. These multi-user factory shells are for manufacturing purposes only. To qualify for an operational space, an investor should be able to demonstrate in a form of business plan that the manufacturing process that they are undertaking is a worthwhile venture. Once the business plan is vetted and approved then a warehouse will be availed to the investor. However, this will depend on the availability of the warehouse space. Land facilitation is another component of what we offer. BEDIA facilitates land for investors through land boards and the Department of Lands. This also requires that a business plan be submitted, vetted internally and approved. BEDIA would therefore like to sensitise all manufacturers and strategic service related activities (excluding retailers and wholesalers) about the availability of these facilities and encourage them to fully utilise them. We would like to emphasise once more that these services are not meant for foreign investors only, but for new and existing foreign and local investors. Reference Information Resources Centre BEDIA operates an investor friendly Reference Information Resources Centre, established to serve the information needs of the business community. This facility provides internet service for business research, periodicals, journals and other important information resources. This information centre also acts as a focal point for the World Trade Organization (WTO), UNCTAD and International Trade Centre (ITC) by circulating information resources pertaining to these organisational issues either through their internet portals or in electronic versions, on CD-ROMs, and in print versions. Utilisation of this centre will, as a result, enable users to obtain information on potential markets (exports and imports), about multilateral trading systems and country commitments relating to the multilateral trade negotiations. 66

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Export Enterprise Development BEDIA identifies market outlets for locally manufactured products, with a major strategic focus on seeking and promoting products that are suitable to enter the export market. This is done through identifying and researching new markets to facilitate targeted export promotion aimed at selected buyers, including investigation of opportunities in markets that have trade agreements with Botswana, so as to maximize benefits. Export Development Programme The Export Development Programme (EDP) is a project by BEDIA designed to assist in developing international market entry strategies that identify the objectives, resources and or policies that will in turn assist participating companies develop their sustainable international business focus. This is a phased programme designed to help companies


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Objectives The aim of Global Expo Botswana is to offer exhibitors and visitors a platform to explore new markets, secure new business, build new partnerships and grow business. GEB is therefore an ideal platform for local and international entrepreneurs to actively promote their businesses and prospects to new markets. Why Global Expo Botswana? • Attract foreign direct investment • Promote joint venture opportunities between Batswana and foreign investors • Stimulate profitable business partnerships • Enhance exports of locally produced goods • Give international exhibitors access to the Botswana market • Inculcate a culture of entrepreneurship locally

in the evaluation and development of a profitable export strategy. Hence the programme assumes a ‘baby step’ approach through the development process from initial market evaluation to a fully functioning export operation. Global Expo Botswana Global Expo Botswana (GEB) is the country’s premier international multi-sectoral business to business exhibition. This exhibition is managed and organised by BEDIA on behalf of the Government of Botswana, through the Ministry of Trade & Industry. The inaugural Global Expo Botswana was held in 2006. The exhibition has grown in leaps and bounds since then. This annual expo aims to promote access to the Botswana market, provide foreign direct investment, improve the investment climate and create a culture of entrepreneurship.

Global Expo Botswana Value-add Services Concurrent to the exhibition, Global Expo Botswana runs: • Investment Forums • Workshops • One-on-one buyer-seller meetings Global Expo Botswana at a glance Dates: Annual Event (November) Venue: Botswana Conference & Exhibition Centre, Fairgrounds, Gaborone Tariffs: US$160 (BWP 960)/ m2 for stand space only US$210 (BWP 1,260)/ m2 for complete stand with basic furniture US$45 (BWP 270)/ m2 for outdoor space only

Tel : + 267 318 1931 E-mail: bedia@bedia.bw www.bedia.co.bw Diplomat Africa

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Diamond Trading Company Shining Light Awards Diamond Design Southern African Collection

Launched in 1996, the DTC Shining Light Awards for Excellence in Diamond Jewellery Design showcases the creativity and talent of designers from Southern Africa. The objective of these diamond studded awards is to provide support for the future of the Southern African jewellery industry, and also to help develop technical and design skills of designers as well as an ethos for jewellery design. A biennial competition, the DTC Shining Light Awards Collection is a statement of bold design expression – each piece captivates the imagination and beauty intrinsic to this prized gemstone. The objective of the Shining Light Awards has been to provide support for the future of the Southern African jewellery industry by helping to develop both technical and design skills of Southern African designers as well as increasing a global understanding and appreciation of Southern African jewellery design. DTC and Forevermark recently revealed their largest Shining Light Awards collection to date in the breathtaking debut of the R22-million collection of diamond jewellery in Johannesburg South Africa, on 10 February 2011. The new 2010/2011 Southern Africa Shining Light Awards collection consists of 30 jewellery pieces. Ten of these designs were created by Botswana designers. Of the 30 pieces, 15 contain Forevermark diamonds. Forevermark is a diamond brand launched by De Beers in 2008. The new collection comprises 30 spectacular pieces of diamond jewellery set with over 25 thousand diamonds including natural black diamonds, natural brown diamonds, 68

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canary yellow and cape coloured diamonds and of course, brilliant white diamonds. The collection also features an assortment of fancy-cut diamonds including marquise, princess, baguettes and emerald cut diamonds in the collection with a total weight of over 630 carats. There is no doubt that the Southern African cultural and natural landscape is shaped by its shining light, the Diamond, which continues to illuminate, captivate and


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provoke. It is through endeavours such as the Shining Light Awards, that we are able to demonstrate to the rest of the world that working together towards a shared set of values enables us to go forward, united and stronger. The Shining light competition is indeed positioning diamonds as the country’s strategic resource. Stephen Lussier, CEO of Forevermark was quoted as saying, “Forevermark works exclusively with experts who are passionate about, and inspired by, diamonds. It is for this reason that Forevermark is once again, partnering the Shining Light Awards. By supporting the awards, Forevermark is proud to nurture upcoming talent in diamond producing countries, and to help develop the expert craftsmen of tomorrow.” “This year, Forevermark has provided international judges for the competition, journalist and art consultant, Yoshiko Ikoma, artist and celebrated jewellery designer Karen Lee and supermodel and designer, Alek Wek. The judges have been uniformly impressed by the standard of designs and the beauty of the finished collection, and we are looking forward to helping showcase these stunning pieces around the world”. Thoko Modisakeng, Head of Marketing for Southern Africa added “...one of the key pillars of the DTC Shining Light Awards project is the transference of skills and knowledge.” “This was highlighted during the manufacturing stage of the competition when four of the Shining Light winners were flown to India by their Sightholder sponsors to collaborate and participate in the manufacture of their winning pieces. Additionally, it was with the input of previous Shining Light winners that some of the 2010/2011 winners were assisted in the final manufacture of their pieces. This is just one facet of the commitment that these Awards encourage, once again proving that, with the right partners, truly great things can happen.”

For more information on the Shining Light Awards please contact Thoko Modisakeng Head of Marketing – Southern Africa Thoko.modisakeng@debeersgroup.com For more on Forevermark please visit www.forevermark.com

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New era as South Africa joins BRIC South Africa attended its first BRICS summit as a full member of the grouping of most influential developing nations when President Jacob Zuma sat down with the leaders of Brazil, Russia, India and China at the third BRICS Leaders Meeting in Sanya, a resort in China’s southern island province of Hainan, on 14 April. The previous two BRIC summits were held in Russia in 2009 and in Brazil in 2010. Chinese President Hu Jintao hosted the summit, where he was joined by Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma. South Africa also participated in the BRICS Business Forum and the BRICS Banking Co-operation Mechanism on the sidelines of the two-day summit.

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Zuma was accompanied by International Relations and Co-operation Minister Maite Nkoana-Mashabane, Economic Development Minister Ebrahim Patel, and Trade and Industry Minister Rob Davies. From BRIC to BRICS BRIC, to be known as BRICS now that South Africa has become a member, is a powerful bloc of emerging economies which, according to the International Monetary Fund, will account for as much as 61 percent of global growth in three years’ time. International Relations and Co-operation Minister Maite Nkoane-Mashabane, briefing journalists in Pretoria, said South Africa would both benefit from and contribute to the grouping’s ambitious goal of “expanding inter-trade amongst BRICS countries to US$400-billion to $500-billion by the year 2015.” South Africa brought into BRICS “not only South Africa but a larger African market of a billion people,” Nkoane-Mashabane said, noting that trade between BRIC and Africa had grown significantly over the last decade.


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BRICS and Africa BRICS was still in its formative stages, the minister said, with the vision of BRICS being one of the issues on the agenda of the leaders’ meeting – giving South Africa an opportunity to make “an invaluable contribution in envisioning the future of BRICS.” “South Africa goes into BRICS remembering fully well that we are an integral part of this continent of Africa,” the minister said. “Wherever South Africa finds itself in a forum ... where other African countries are not represented, we do not speak for South Africa alone but also for all other African countries.” Brazil, Russia, India and China, she said, had the capacity to bring investments, expertise and functional technologies that could help Africa accelerate its infrastructure development, which in turn would “encourage inter-African trade and help accelerate regional economic integration in our region”. Nkoane-Mashabane added that there was already “co-ordination of ideas” among the five BRICS members in other international forums, including the G20, the G8 Plus 5, and the UN Security Council, where all BRICS members are currently serving.

hosting of the 2010 Fifa World Cup, followed by Brazil’s hosting of the 2014 edition of the event. Already, Pimentel said, the Brazilian business community and municipal delegations had been visiting the 2010 host cities to learn what from South Africa’s successful hosting of the first Fifa World Cup on African soil. Brazil’s ambassador to China, Clodoaldo Hugueney, echoed Pimentel’s views last week, telling Chinese news agency Xinhua that South Africa’s participation was “a major addition to the original forum of BRIC countries” because it implied a new dimension of co-operation with current development and changes in Africa. SAinfo reporter www.southafrica.info

‘Great opportunity for SA’ Speaking at a breakfast briefing in Johannesburg, Kuseni Dlamini, CEO of Old Mutual SA and Emerging Markets, said South Africa’s BRICS membership was “a great opportunity for South African business to access markets in the BRIC countries, which comprise more than 40 percent of the world’s population. “It will also enable us to learn how some businesses in those markets have managed to be leaders in their fields.” Speaking at the same briefing, Jose Vicente Pimentel, Brazil’s ambassador to South Africa, said joining BRICS would give South Africa “enormous international exposure.” Pimentel added that South Africa and Brazil’s relations would further be strengthened by South Africa’s

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Botswana and Mauritius: the exceptions By Larry Luxner

Other than their location in sub-Saharan Africa, Botswana and Mauritius have seemingly little in common. Yet these two power houses are standing at the forefront of African economic growth. With only 1.3-million inhabitants populating its 233,000 square miles of territory, Botswana is one of the emptiest nations on Earth. The landlocked nation is blessed with diamonds, copper, nickel and gold — but cursed with one of the world’s highest AIDS infection rates. Mauritius, on the other hand, has no natural resources to speak of. Its 1.2-million people are jammed into an island 30 miles long by 24 miles wide, making it the 10th most densely populated country in the world. Botswana’s population is highly homogenous, with the Tswana people comprising the clear majority — unlike Mauritius, whose people are descended from French and Dutch settlers, Indian indentured servants, African slaves and Chinese traders. What links these two disparate African nations together is their uncommon success on a continent “scarred by political repression and economic underdevelopment,” according to the Washington-based Cato Institute. “In 2007, Freedom House certified both countries as free, and the Fraser Institute’s Economic Freedom of the World report found that Botswana and Mauritius had the two freest economies in Africa,” says a Cato Institute report. “According to the World Bank, the two also have — along with Seychelles — Africa’s highest per-capita incomes. What explains that success? Why did the institutions of freedom take root in Botswana and Mauritius, while failing to do so in most other African countries?” To answer these questions, the Cato Institute’s Marian Tupy recently moderated an event entitled “Botswana and Mauritius: African Success Stories” and featuring the country’s ambassadors to the United States. Lapologang Caesar Lekoa, who’s represented

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Botswana in Washington since 2002, says his nation’s journey to prosperity started over 40 years ago. “Botswana was resource-poor, under-developed, with no physical infrastructure, a per-capita income of only $70 and a donor-funded budget. Three years after independence, our first president, the late Sir Seretse Khama, described Botswana as a country faced with a problem of under-development of classic proportions,” he said. “Today, Botswana’s per-capita income exceeds $5,000, the country provides free quality education and health care for all of its people, and together with Mauritius, it is the only other country to graduate from a lower level of development to a higher one in the UN classification index.” According to Lekoa, Botswana “has consistently received the highest possible sovereign credit ratings from international rating agencies. According to Transparency International, Botswana is the least corrupt country in Africa, and is graded higher than all the G-8 countries in the area of political stability by the World Bank.” The situation in Botswana sharply contrasts with that of its perennially troubled neighbour, Zimbabwe. Perhaps it’s no surprise that Botswana has been one of the few African countries to rebuke Zimbabwe given Botswana’s history of political freedom. The ambassador attributes this “rare African success story” to political tolerance, pragmatism, the idea of leaders as servants of the people, consensus, and a sense of inclusiveness. “We believe that all of our citizens can make a contribution to national development, irrespective of political affiliation or station in life,” said Lekoa. “The former president of Botswana, Sir Quett Masire, observed that in deciding on important matters such as national symbols, the whole nation was consulted. Thus, our national anthem was created by the founder of an opposition party. The colours and design of the flag were proposed by a former colonial officer. This would have been unthinkable in many countries then, and even now.” He added: “Many people believe that our pragmatism was an instinctive reaction of our earlier suffering, uncertainty and hardship in a poor and drought-stricken

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country,” he said. “National choices were therefore made on the basis of what worked, not what ideological label was attached to it. This saw Botswana choose market capitalism at independence, when many African countries opted for central planning in order to assert national control over resources in the post-independence era.” Unlike many of its neighbours, said Lekoa, Botswana was never attracted to the idea of a one-party state. “For people already espousing ethics such as political tolerance, inclusiveness and consensus, political pluralism — it would seem — was a more natural option than anything else,” he told his audience. “So the necessity of a one-party system, justified by many countries in the 1960s on the basis of national unity or nation-building, did not appear so imperative in the case of Botswana.” More importantly, he said, “non-pluralistic options were deemed incapable of delivering on the practical needs of the people. Socialism or state capitalism was not considered a viable tool in that regard.” Botswana has been lucky thanks to the presence of diamonds, which accounts for 75 percent of the country’s foreign-exchange earnings. A joint venture signed in 1969 between the government and South Africa’s De Beers mining conglomerate has generated billions of dollars over the last four decades and allowed Botswana to offer its citizens free education and health care. “We are a mono-economy, dependent on the diamond trade, and that particular sector is capital-intensive. It generates less than 10 percent of the country’s employment,” he said.

“We keep on telling our people that diamonds are not forever.”

To that end, Lekoa says he’d like to see Botswana diversify its economy into glass manufacturing, textiles and financial services. More than 2,000 miles east of Botswana is Mauritius, which won its independence from Great Britain in 1968 — only two years after Botswana did so. Mauritian ambassador in Washington for 2008, Kailash Ruhee, said at the time of his post that his country has been described as “a piece of rock floating in the Indian Ocean.” “We are a classic example of a country that has moved from being a cauldron of poverty and despair to a cradle of hope and prosperity. I think this sums up the socioeconomic development of Mauritius,” said Ruhee. “It has been a constant battle against the tyranny of geography and history. At independence, we were a textbook example of an agricultural mono-crop; 96 percent of our earnings came from the production and export of sugar. Our per-capita income was only $175. I was personally a beneficiary of food aid donated so generously by the people of the United States.” As was typical of Third World countries, he said, “we had low life expectancy, high illiteracy and a demographic explosion, with our annual birth rate exceeding three

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percent. We had quite a lot of ethnic tension, and we were highly vulnerable to external shocks and the vagaries of Mother Nature.” Today, Mauritius enjoys a per-capita income of nearly $7,000. The country has been helped tremendously by preferential market access to Europe and the United States for apparel and other products, through such programmes as the African Growth and Opportunity Act (AGOA), passed by Congress in 2000. “We’re considered an upper-income developing country, with a Human Development Index approaching those of the developed world,” said Ruhee. “We have gradually instilled in the population an entrepreneurial culture. We have slowly gotten rid of the culture of entitlement. We have made the population realise that there’s no such thing as a nanny state that will take care of them from cradle to grave.” Described by Leslie Alexander, a former U.S. ambassador to Mauritius, as “a mouse on steroids,” the island currently enjoys economic growth of 6 percent a year. Among its most important industries are seafood and aquaculture, medical tourism, professional services and logistics. “Mauritius is now heading towards an increasingly knowledge-based economy,” said Ruhee. “We want to make Mauritius a world-class business destination, open up the economy to foreign expertise and ideas, and strengthen macro-economic fundamentals.” To that end, the country has instituted a 15 percent uniform corporate and personal tax rate, giving Mauritius the distinction of being one of the most pro-business tax jurisdictions in the world. Unlike much of post-colonial Africa, which looked to socialist countries like Cuba for guidanace, Mauritius has used Singapore, New Zealand, Ireland and the Nordic countries as institutional models. The advent of export processing zones (EPZs) has also been a major factor, he said. “Investors came and gradually helped Mauritius develop the necessary marketing skills and technology so that today, the EPZ sector in Mauritius is mainly Mauritian-owned. This has spawned a lot of investment from the private sector,” he said. “It all boils down to the quality of political leadership.


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Both Botswana and Mauritius have been blessed in the sense that all the political leaders we’ve had have been visionary and forward-looking in their approach.” In addition, he said, the country is a “vibrant and robust multiparty democracy,” with free and fair elections. “We have a totally independent electoral commission, and freedom of speech and religion are deeply entrenched in our constitution,” Ruhee said. “We have a religious adherence to the rule of law, and when Mauritius became a republic in 1992, we took the wise decision of maintaining the Privy Council of the U.K. as the ultimate court of appeals. Property rights and contracts are stringently respected, and for an investor considering Mauritius, this is an important factor when making investment decisions.” Ruhee said the experience of his country over the last 40 years proves that creating a business-friendly environment along with a “compassionate” private sector can be a powerful instrument in making a dent on poverty. “Mauritius faces a lot of challenges, and the transition to global competitiveness is turning out to be quite difficult and painful,” he said. “But we will never allow the positive indicators we get from international bodies to blind us to the fact that success poorly managed breeds complacency.”

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Khumo Property Asset Management: the extra edge in property asset management Khumo Property Asset Management is a joint venture between Botswana Insurance Fund Management (Bifm) and Eris Property Group of South Africa on a 50/50 ownership basis. Bifm is the largest fund manager in Botswana with close to P17-billion worth of different asset classes under management; while Eris Property Group – formerly Rand Merchant Bank Properties (RMBP) – has more than R11-billion in property assets under management in Southern Africa. Eris has specialist experience in property asset management, property management, property development, leasing, investment broking and valuation.

The recent restructuring and renaming of RMBP into Eris recognises that the new company will no longer be controlled by Rand Merchant Bank, though it will remain invested as the largest shareholder of Eris. The reason for the restructure is to facilitate the introduction of BEE shareholders into the business, as well as to allow share acquisition to the existing management. The joint venture of Bifm and Eris ensures that the synergies and strengths of the two are utilised to enhance the strategy and service delivery to clients, as well as to position Khumo Properties as a first choice property asset management company in Botswana. The company has carved a niche in the property asset management industry by offering fully integrated solutions: 1. Property Advisory Service 2. Property Development Service 3. Leasing and Investments 4. Asset Management 5. Facilities Management 6. Property Valuations 7. Specialists Retail Service 8. Yield Enhancement Khumo Properties remains committed to upholding its objective of creating value and wealth. This is based on continuing building business relationships that are essential to the success of any property development or investment. Opportunities are limitless and Khumo intends to position itself appropriately to take advantage of them and make a difference to Batswana. Airport Junction Shopping Centre The latest development undertaken is a P460-million development by Bifm and partner Eris (with Khumo Property Asset Management responsible for leasing, tenant co-ordination and management). In November 2010 construction commenced on this phased 50,000 sqm. regional shopping centre, located in the growing suburb of Block 10 at the A1 and Airport Road junction. Retail in Gaborone is somewhat divided between

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TRADE AND INVESTMENT

different pockets: there is Game City in the South of Gaborone while Riverwalk is set to the East – leaving a gap in the North. The site for Airport Junction Shopping Centre is therefore strategically located, falling along the prominent A1 road which will intercept traffic from the upper income suburb of Phakalane among others. Airport Junction will target mostly the affluent middle- to upper-income households, ranging between Living Standard Measurement (LSM) 5 and 10. While the immediate surrounding areas can be classified as LSM 6, Phakalane is classified 8 to 10. The centre is set to open for trading on 28th April 2012 – although Builders Warehouse and KFC will trade from August 2011. As part of the Massmart expansion programme into Africa, Builders Warehouse will occupy a dedicated 6000 m2 building on site. Architecture and design The initial design brief changed from an open ‘lifestyle design’ of 18,000 sqm. to a fully enclosed mall to meet a high demand of retailers. The completed centre will comprise approximately 50,000 sqm. of total let-able area, making it one of the top three largest centres in Gaborone. The architecture has a contemporary design flavour with modern trendy finishes used to create a classy feeling which generally enhances the shopping experience. The centre is designed with all fashion traders on the inside, and value traders and restaurants on the outside and at the entrances. The centre will utilise the benefits of natural lighting and ventilation, whilst being totally covered and protected from the elements. A children’s play area is placed in the central main restaurant area – done in organic, free-form design which will provide a safe playing experience. This focal point from the main vehicle entrance is defined by a paved walkway and enhanced by a water feature. The parking area is spread around the four entrances of the centre allowing for shorter walking distances. Ample paraplegic and motorcycle parking is provided at all major entrances. Landscaping is used to soften the car park as well as to define parking and driveway areas. The delivery areas will be completely enclosed via a 1.8 metre high boundary wall.

The tenants at the centre will include, among others, the following: • Spar; • Shoprite; • Edcon; • Kitchen Shop; • Spur; • Bubbles; • Piatto; • KFC; • House & Home; • Dischem; • Clicks; • Foschini Group; • Truworths Group; • Pepcor Group; • Builders Warehouse; • Town Lodge. The professional team The professional team is mostly well acquainted with Bifm and Eris and many have successfully performed for the developers on past retail and commercial projects in Botswana and elsewhere. The team includes: Architecture by Frans farmer Arcitects (SA) and Arctez (Botswana); Quantity Surveyor MLC (Botswana); Civil/ Structural Engineering by ADA Consulting (Botswana); Project Management by C-Pro (SA) and Shilo Consultants (Botswana); Electrical Engineering by Quad Africa (SA) and A.R Edwards (Botswana); and Mechanical Engineering by WIN Consultant (SA) and A.R. Edwards (Botswana). www.khumopam.co.bw

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(QMR\WKH/DYLVK&RPIRUWVRID Private Villa or Apartment

Our villas and apartments allow families to interact in one spacious property, with some of our villas sleeping as many as 14. Staying in our self catering apartments and villas allow guests to prepare their favorite meals in a well equipped kitchen or barbeque area at any time of the day or night, dine al fresco or SLFQLFRQWKHSURSHUW\OD]HRQWKHGHFNE\WKHLURZQSULYDWHULPĂœRZSRRORULQGXOJHLQDUHOD[LQJMDFX]]L all while feeling secure that they will not be disturbed.

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Chapter 3: Tourism and Hospitality


TOURISM AND HOSPITALITY

You just can’t avoid the lure of Botswana By Rebaone Odirile

Every nation has its own strength for attracting outsiders to come and feast on what it prides itself. And such art or science is universally understood to the tourism industry, as a well performing economic arm. The offerings may range from game, to vegetation, to ancient and modern architecture as well as historical landmarks. Botswana, a country positioned in the heart of Southern Africa, offers more than just flora and fauna to its tourists. It offers the spirit of humility and tolerance, peace and stability – attributes which are hard to come by in many other nations. While many nations are working hard daily to attain these attributes, the abundance of such in Botswana just keeps beckoning. Tourists find these attributes dazzling as they enter the country and wander through to watch elephant, lion, cheetah, white rhinoceros and other amazing wildlife majestically roaming about in the tourism heartland. Game in Botswana can best be viewed during winter, starting in May and ending in August. Spring, between the months of September and October, is also favourable. In both seasons, the best times to view game are early morning and late afternoon. The rare attributes that Botswana is home to, help tourists feel at home while they soak up the natural and striking beauty of the waterways of the Okavango Delta and the majestic Kalahari sand dunes, or listen in awe as birds perched on branches of Mowana or baobab trees serenade them with melodious tunes. No tourist escapes the natural feel-at-ease comfort that the country oozes as they cheerfully sample all that the country offers, which includes its cultural practices; practices that extend to the captivating traditional dance as well as the nation’s health conscious delicacies. The power of Botswana tourism is not just recognised by individual tourists but by international organisations

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overseeing world tourism business. In 2010 the World travels and Tourism Council bestowed Botswana with the Destination Stewardship award. It was recognition of the country’s outstanding management of its alluring tourism products and services. The emphasis, though, was mostly on the Okavango delta. That the management of tourism Botswana has to be prudent stems from the understanding that while tourism has been identified as the world’s fastest growing industry, to Botswana, it is a tool suitable for diversifying the economy from minerals, especially diamonds. For government, diversification starts with involving communities so that they partake in exploring valuable natural resources that the country is endowed with. The public position is that tourism attractions cannot be devoured through private investments only but through communities as well. It appears that the message is sinking in.


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A good number of community managed tourism initiatives are coming up across the country. In March this year, in a small settlement of Mogonye in the southern part of the country, a new tourism attraction – some small but magnificent waterfalls – hits the market. It is a tourism gem set to be managed by the community. The Mogonye project facilities include the construction of a gatehouse, two ablution blocks and two campsites as well as resting places. The project resonates well with the Community Based Natural Resources Management (CBNRM) policy that government touts as highly capable of enabling communities to reap more from their natural tourism attractions. CBNRM is a development approach that incorporates natural resources conservation with the ultimate aim of managing and protecting the natural resource base. At the launch of the Mogonye tourism facility, the Minister of Wildlife, Environment and Tourism, Kitso Mokaila observed that “CBNRM was founded on the idea that all members of a community share an interest in improving their livelihoods through the sustainable management and utilisation of natural resources in their environs.” The premise of CBNRM as explained by Minister Mokaila is that “all natural resources have an intrinsic value that can be realised for the social and economic benefit of the society.” Objectives of the CBNRM are pursued in part by developing visitor facilities such as access roads, trails, gatehouses, ablution blocks, campsites and hiring of custodians to accommodate tourism activities. The process involves sourcing materials and labour from the community which, in turn generates spill over benefits of employment creation in rural areas. Over the next 10 years, Botswana’s travel is expected to achieve annualised real growth of five percent, beating the anticipated world growth rate of 4.3 percent and that of sub-Saharan Africa, which has been put at 4.5 percent.

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Botswana improves airports infrastructure Sir Seretse Khama International Airport Sir Seretse Khama International Airport (SSKIA) is located about 11 km North of the Capital City of Botswana, Gaborone, this airport was opened in 1984 and is the main international gateway into Botswana. SSKIA has both scheduled and unscheduled operations domestically and regionally. Latitude – 24° 33’ 21” South, Longitude – 25° 55’ 08” East • Typical peak hour passenger capacity – 976 • Runway (length & width) – 4km capable of accommodating B747 or equivalent class aircrafts. With full length parallel taxiway • Cargo Apron – B747 or equivalent class aircrafts • Elevation – 1005.53 m above sea-level • Reference temperature – 32° C • Land Area – 11,119, 947 m2 Maun Maun Airport is located within the Maun Town boundaries, in the North West District of Botswana, and is about one and half hours flight from Gaborone and two hours from Johannesburg. The airport is open to both domestic and international traffic, and mainly serves as the gateway for tourists visiting the world famous Okavango Delta. Maun Airport is the second busiest airport in Botswana, and the base for tourist activities in the Okavango area and other parts of the North West District. In terms of aircraft movements (majority of which are short-hop flights to and from airfields in the Delta) the airport functions as a hub for small, single and twin-engine aircraft feeding mainline carriers. The Airport has both scheduled and unscheduled operations domestically and regionally. Latitude: 19° 58’ 21” South, Longitude: 23° 25’ 41” East, Elevation: 945.18 m above sea-level, Reference temperature: 32° C., Land Area: 1,722, 147 m2 Kasane Kasane Airport was opened on 21 October 1991 and is 82

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located 4 km South of Kasane town within the Chobe District about 1000km North of Gaborone. The Airport is open to both domestic and international traffic. One of its attractive features is that it is strategically situated on the “Four Corners”, that is, it borders Botswana, Namibia, Zambia, and Zimbabwe. It provides access to the Chobe National Park and serves as the second alternate airport for tourists travelling to the world renowned Victoria Falls (both on the Zambian and Zimbabwean sides) and to Katima Mulilo town in Namibia. The Airport has both scheduled and unscheduled operations domestically and regionally. Latitude: 17° 49’ 47” South, Longitude: 25° 09’ 47” East, Elevation: 3289 m above sea-level, Reference temperature: 34° C, Land Area: 5, 827, 537 m2 Francistown This airport, open to both domestic and international traffic, is located about 450 km North-Northeast of Gaborone (Capital City of Botswana) and about 2.4 km West of Francistown City. The Airport has both scheduled and unscheduled operations domestically and regionally. Latitude: – 21° 09’ 34” South, Longitude: – 27° 28’ 56” East, Elevation: 1000.60 m above sea-level, Reference temperature: 32.5° C, Land Area: 3,734, 060 m2 Improvement works being undertaken at Francistown Airport include: new terminal building, air traffic control tower and associated buildings, realignment of the existing 2200 metre runway with an allowance to extend it by another 800 metres – a link taxiway, a new apron, drainage, security fence, new approach road, aerodrome lighting system and improved navigational facilities. Re-orientation of the runway will enable aircrafts to avoid flying over the city centre, thereby helping to improve flight safety and eliminating the need for restrictions on the development of high rise buildings in the CBD.

Air navigation services CAAB provides air navigation services within the Botswana airspace. These include: Air Traffic Management (ATM), Air Navigation Services (ANS), Aeronautical Information Services (AIS) & Search and Rescue (SAR) Most of the Navigational Aids in the major airports have been renewed and upgraded. These include: DVOR/DME (Distance Measuring Equipment), Non Directional Beacon (NDB) and Instrument Landing System (ILS) for SSKIA and Francistown, VHF Equipment for SSKIA, Maun, Kasane and Francistown, Automatic AFTN Message Switching Systems, Voice Communication Control Systems at Maun, Francistown and SSKIA, Legal voice Recording systems and Radar Surveillance Systems at SSKIA and Maun Airports. Air transport liberalisation The Government of Botswana has embarked on air transport liberalisation to improve the delivery of air services and to improve services in the tourist sector. Domestic air transport has been liberalised allowing private carriers to be established and operate services to various domestic points. This liberalisation of the local market is seen as an important step towards the implementation of the Yamoussoukro Decision, which Botswana is party to. As it is, the Government would later on license domestic operators to operate regional routes and depending on the competence of these operators, local carriers could be designated to serve on international routes. Bilateral Air Services Agreements Botswana has BASAs with the following countries: Namibia, UK, Netherlands, Belgium, Zambia and Malawi; while MOUs have been signed with the following countries: France, Germany, Parkistan, Tanzania, Zimbabwe, UAE, Kenya, Qatar, Ethiopia and the Republic of South Africa.

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Wings for Development:

The success story called Botswana – and Air Botswana has been part of it all When the Republic of Botswana, formerly the British protectorate of Bechuanaland, emerged as an independent nation in 1966, few could have imagined that one of the poorest countries in the world would develop so quickly into the African jewel that it is today. Botswana is rated highly for its democratic traditions, its robust economy, its sound and transparent administration, and its outstanding natural attractions. And Air Botswana has been part of it all. The national carrier has contributed fully to the phenomenal growth of the country that it serves well, and in so doing has built a wide reputation for quality air services that is quite disproportionate to its modest size. Civil aviation is a key barometer of national development. A country’s ability to provide reliable air services and to handle air travellers safely and efficiently is essential for its full membership of the international community. Air Botswana is based at Sir Seretse Khama Airport, Gaborone. It is a domestic and regional carrier, operating and maintaining a modern fleet of turbo propeller aircraft from the notable French-Italian manufacturer ATR. The airline operates two new 68-seat ATR 72-500 aircraft and three smaller 47-seat ATR42-500s.

Coming in to land at Kasane, tourism gateway to Chobe National Park, one of the most prolific wildlife areas in Africa. Across the Chobe River is Namibia. 84

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Responsibilities at home and away Mindful of its responsibilities at home, the airline takes the convenience of air transport as widely as possible within Botswana, while also serving vital markets outside the country. The domestic route network links Gaborone with Francistown, Botswana’s second city, and with Maun, on the edge of the great Okavango Delta, and Kasane, gateway to Chobe River and National Park on the northern border with Namibia. Regional destinations are Johannesburg, Harare and Lusaka. Air Botswana also operates between Gaborone and Nairobi in code-share joint services with Kenya Airways, and is developing initiatives with other carriers to extend the route network to more African destinations. The timetable is closely attentive to the needs of the business and leisure traveller, and is also designed in full support of the vital and growing tourism industry. Botswana is an outstanding destination, with unique natural attractions


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Air Botswana operates two new ATR72-500 advanced turbopropeller aircraft, seating 68 passengers in jet-like comfort.

DUMELA! Welcome. Deep leather seats, immaculate trim, and personal Air Botswana service on board.

that draw visitors from all over the world. Tourism is the country’s second largest revenue earner after mining. Tourists arriving in Johannesburg on long-haul flights transfer readily to Air Botswana services for their onward flight direct to the Okavango, the largest inland delta on earth, or direct to Kasane if they are bound for Chobe National Park – two of the premier tourism destinations in Africa. Book and buy on line In another major development – and a first in the country – the airline successfully implemented electronic commerce technology, giving passengers the convenience of booking and paying for their tickets over the Internet. This highly significant move linked Air Botswana into the very heart of the global travel industry, where e-commerce is widely used and is a key way of doing business. The national airline’s operations and initiatives are fully in step with Vision 2016, the aspirational blueprint for Botswana after half a century of sovereign nationhood. With an eye to the future, Botswana is energetically upgrading its aviation capacity, under the wing of the Civil Aviation Authority of Botswana and with the full backing of Government. Construction of the first phase of the spacious new terminal, and major runway extension, at Sir Seretse Khama Airport is complete, enhancing Gaborone as an attractive regional aviation hub. Airport terminal building and runway projects are also taking place in Francistown, Maun and Kasane, so that these important centres can receive larger aircraft and handle more passengers. For its part, Air Botswana is committed to continuing to provide world-class services to domestic travellers and to visitors who come to do business in a vibrant economy, and for tourists to experience the unique natural attractions with which Botswana is so richly blessed. www.airbotswana.co.bw

The 47-seat ATR42-500, three of which are in service with Air Botswana. Powerful engines and curved six-blade propellers give it outstanding performance.

The striking new terminal at Sir Seretse Khama Airport, Gaborone, Air Botswana’s home base. Diplomat Africa

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Interview with Air Botswana Acting Commercial Director, Helen Chilisa How has Air Botswana coped with the economic down-turn? During the economic down-turn, the airline engaged in best practices that allowed full optimisation of its fleet and route network to ensure efficiency and effectiveness. Simply, this means some routes were combined, while others were cancelled – such as the business flights, which yield very low passenger numbers.

How much does Air Botswana depend on Tourism for its revenue? Tourism-related travel remains a major contributor to Air Botswana’s gross revenue. Tourism travel is our cash cow – hence it is important that during route planning, we are able to secure strategic routes and slots that will facilitate efficient services. How do you work with competitors to develop solutions that are mutually beneficial to Air Botswana, the industry and the economy of Botswana as a whole? We have great working relationships with competitors in the region and beyond. We work closely with competing competitors on a day-to-day basis. Such working collaborations are of mutual benefit to both airlines: special pro rate agreements, leasing, code sharing, alliances, seat purchase agreements, system collaboration, to mention a few. Where is Air Botswana expanding to? What are the future plans? In this coming financial year we have a number of routes that have been proposed – domestic and regional. Future plans include re-fleeting, new airline technology, IATA

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Operational Safety Audit (Iosa), and new executive management. What are Air Botswana’s major successes in the last 12 months? Air Botswana successfully launched E-commerce – as well as winning the ACSA prize in South Africa. What will be the biggest challenge in the next 12 months? Achieving our business plan ambitions! What is your favourite airline apart from Air Botswana? There are a number of airlines that I have a great deal of respect for – as well as for the executives who run them, with the dream that in the near future Air Botswana will simulate models like theirs. SAA under the leadership of Siza Mzimela, Kenyan Airways lead by Titus Naikuni – in my view it remains one of Africa’s success stories. Another airline that must be recognised is Air Namibia – lead by Theo Namases. Air Namibia is close to being part of the Sky Team Alliance – being a part of an Alliance is a major milestone for any airline. A note of recognition must be given to Ethiopian Airways and Egypt Air that have been doing their bit towards the development of African Aviation. The Chairperson of Egypt Air has a vision of developing and connecting Africa’s route network; whilst Ethiopian Airways is a 100 percent government owned success story, with the government allowing the leadership to run it commercially as though it was privatised with very little government intervention. Lastly, I admire a recent player in the market, Arik Air of Nigeria for its high levels of energy and innovation. What was your worst travel nightmare? Arriving without my baggage.


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Destination Southern Africa The Regional Tourism Industry of Southern Africa (RETOSA) is a concept that brings together the 15 captivating and diverse countries of the Southern part of Africa, through the promotion and marketing of tourism in the region. This ensures that a concrete destination identity is created. RETOSA offers a unique opportunity to discover the natural wonders and splendours of the region – the infinite contrasts of scenery, climate, colour, traditions and culture: the African Dream.

RETOSA aims to ensure that the tourism industry becomes the 21st century’s economic driver for SADC through the effective development and promotion of the sector – and they are well on their way to achieving this. They successfully hosted the Festival of Africa as Africa’s signature event during the 2010 FIFA World Cup, ensuring all eyes were on Africa and its endless possibilities, by focusing on encouraging international investment. Another project that RETOSA is driving is the UNIVISA, which is essentially the SADC equivalent of the Schengen visa and will allow tourists to travel across Southern Africa with ease. This ideal mirrors the aim of SADC countries working together for the benefit of one another in breaking down borders and thus creating accessibility. The Executive Director, Mr Francis Mfune has said “in collaboration with Member States organisations, private sector and the media, RETOSA has engaged in several projects that aim to promote tourism opportunities in the region”. Separate puzzle pieces are thus joined together in a broad web that stretches from the West Coast of Southern Africa to the East. This is just the start: the Director of Marketing and Communication, Kwakye Donkor, has said that the face of RETOSA is about to change. The RETOSA board seems to be taking the organisation to a whole new level. Their enthusiasm for the task ahead is echoed in the sentiments on the region: “we believe Diplomat Africa

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that you will be enchanted not only by our friendly people but also by the unmistakable diverse culture, heritage and landscape”. RETOSA has taken advantage of the endless offerings of the SADC countries in creating a unified brand. Travelling in Southern Africa is an unforgettable experience. It is a region of extremes and natural beauty – a world in 15 countries. The wonder of snow-capped mountains, rugged coastlines and tropical islands compete with sweeping carpets of vibrant flowers and vast areas of unspoilt wilderness. The mist enshrouding the Victoria Falls, the deep silence among the ochre dunes of the Namib, the first glimpse of a mountain gorilla in its natural habitat – all these things affect the soul in ways unfelt in other regions. These images need little embellishment – they speak for themselves. RETOSA therefore doesn’t need to rely on stereotypical perceptions. They are aided by the rich histories and cultures of Southern Africa’s hospitable people – who are hard to be forgotten. The African Dream can be experienced in the 15 incomparable countries that are Southern Africa:

BOTSWANA

ANGOLA

Neighbouring countries: DRC, Zambia, Namibia and Republic of Congo Major activities: Beaches and water sports in Luanda; game viewing, bird watching and river cruises in the Kissama National Park; climbing the Tunda-Vala volcanic fissure; driving the Leba Pass; photographing the dunes in the Iona National Park.

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Neighbouring countries: South Africa, Zimbabwe, Namibia and Zambia Major activities: Water safaris, walking and elephant-back safaris, and game-viewing by aircraft/helicopter in the Okavango Delta; 4x4 wilderness travelling in the Central Kalahari Game Reserve. DEMOCRATIC REPUBLIC OF THE CONGO (DRC) Neighbouring countries: Central African Republic, Sudan, Uganda, Rwanda, Burundi, Zambia, Angola, Republic of Congo and Tanzania

Major activities: Cruising on the Congo River; sight-seeing in Kinshasa; visiting Lake Kivu and the volcanoes of the Virunga mountain range; boating, rafting or hiking through the rainforest; visiting the mountain gorillas. LESOTHO


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MAURITIUS

Surrounded by the Indian Ocean Major activities: Snorkelling, scuba diving and ‘undersea strolls’; water sports such as kayaking, jet skiing, parasailing and windsurfing; hiking in the Black River Gorges National Park; visiting Le Morne Brabant. MOZAMBIQUE

Neighbouring countries: Surrounded by South Africa Major activities: Climbing Thaba Bosiu; shopping in Maseru; game viewing, bird watching and pony trekking in the Sehlabathebe National Park; enjoying water sports at the Katse Dam; skiing in the Maloti Mountains.

MALAWI

MADAGASCAR

Surrounded by the Indian Ocean Major activities: Snorkelling and diving at Ifaty; visiting the lemurs and the Ankarana Reserve; sight-seeing in Antananarivo.

Neighbouring countries: South Africa, Swaziland, Zimbabwe, Zambia, Tanzania and Malawi Major activities: Kayaking, sailing, dhow trips and snorkelling; visiting the Bazaruto Marine Park and the historical Ilha de Mozambique; game viewing and bird watching in the Gorongosa National Park. NAMIBIA

Neighbouring countries: Zambia, Tanzania and Mozambique Major activities: Kayaking, snorkelling and scuba-diving off the pristine beaches of Lake Malawi; horseback safaris in Nyika National Park; exploring the Chongoni rock art; climbing Mount Mulanje.

Neighbouring countries: South Africa, Botswana, Zambia, Zimbabwe and Angola Major activities: Taking a balloon ride over the dunes of Sossusvlei; hiking in the Fish River Canyon; flying over the the Skeleton Coast; taking a safari in the Etosha National Park.

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SEYCHELLES

to the top of Table Mountain; game viewing, safaris and bird watching in the Kruger National Park; meandering along the Garden Route; wine-tasting in the wine region; water sports and golfing at the coastal resorts. SWAZILAND

Neighbouring countries: Kenya, Uganda, Rwanda, Burundi, the DRC, Zambia, Malawi and Mozambique Major activities: Climbing Mount Kilimanjaro; visiting Zanzibar; game viewing and bird watching in the Serengeti; visiting the Ngorogoro Crater; taking a boat trip on Lake Victoria. ZAMBIA

Surrounded by the Indian Ocean Major activities: Glass-bottom boating; water sports such as snorkelling, sailing or surfing; island-hopping; visiting natural reserves and marine parks; horse-riding; guided nature tours. SOUTH AFRICA

Neighbouring countries: South Africa and Mozambique Major activities: Visiting the Swazi Cultural Village and the King Sobhuza II Memorial Park; horse-back safaris and guided walks in the Hlane Royal National Park; hiking in the The Malolotja Nature Reserve. TANZANIA

Neighbouring countries: Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Mozambique Major activities: Taking a cable car

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Neighbouring countries: Tanzania, the DRC, Malawi, Mozambique, Zimbabwe, Botswana, Namibia and Angola Major activities: Scenic flights over the Victoria Falls; swimming in the Devil’s Pool above the falls; white-water rafting and other water sports; river cruises; elephant-back rides; walking with lions, game drives in the Mosi-oaTunya National Park; walking safaris in the South Luangwa National Park.


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ZIMBABWE

Neighbouring countries: South Africa, Botswana, Zambia and Mozambique Major activities: Flights over the Victoria Falls; sunset cruises on the Zambezi river; bungee jumping off the Victoria Falls Bridge; river rafting and other water sports; swinging through the gorge; elephant-back rides; walking with lions; visiting the Great Zimbabwe National Monument.

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Tel: + 26 7 393 6031 Fax: + 26 7 393 6036 info@outsourcedigital.co.bw www.outsourcedigital.co.bw

Outsource Digital is an innovative office automation specialist company, and is the first choice for turnkey business automation solutions. Through outstanding service, competitive pricing and a vast distribution network they have developed a trusted and respected brand – driven by integrity, teamwork, and innovation.

COPIERS AND MULTI FUNCTION PRODUCTS (MFP’S) Outsource Digital provides a complete office automation product range of faxes, copiers, scanners, duplicators and printers to suit all your business requirements by providing solutions for small, medium or large environments. Outsource Digital offers an extensive range of machines with the most popular models being the Studio355/455 BW MFP Series and the Studio 6530C MFP Series which delivers accelerated Productivity and superior colour quality.

PABX, VoIP and IP In a fast moving world the speed and efficiency of business communications are vital to the success and productivity of every small, medium and large business and homes. Enterprise networks based on the Internet Protocol technology are at the forefront of delivering these requirements. Outsource Digital is the leader in partnering to deliver the systems and expertise needed by many companies in this area. By offering a wide range of high quality and affordable solutions, Outsource Digital has an outstanding record of helping companies identify affordable solutions to their communication needs while presenting extremely high cost savings that amortize the investment over a very short period of time, often showing immediate payback.

COMPUTERS / SERVERS / SOFTWARE In addition to the office automation offerings, Outsource Digital completes the total business solutions package by offering a range of award

winning Desktops, Laptops and related hardware as in servers and data storage services assisting you in securing the most effective and affordable software. Print Audit 5 is the world’s most comprehensive suite of print tracking products. Its three components Analysis, Reduction and Recovery can be purchased individually or as a suite.

SURVEILLANCE AND SECURITY SOLUTIONS CCTV: In today’s world Surveillance and Security products are key factors for protecting your family, staff, and assets, ensuring their safety and security 24/7. The products are easy to install and maintain and provide peace of mind for the business and home owner. There are various options available to consumers depending on their needs and budget parameters. Analogue CCTV is more cost effective to install, easier to operate and maintain. The ideal security option is digital CCTV since digital is far more flexible, offers recording in a higher definition of multiple tracks. There are additional factors available such as storage capacity, definition (mega pixels) and the frame rate. Access Control: Gone are the days of your employees clocking in and out of their workplace or wondering who accessed your premises when and for how long. Simply install a T50 Fingerprint Access control device or a Terminal Biometric Nitgen Fingerkey and your employees can move swiftly through the process and you always have the data at your fingertips.


Chapter 4: Innovation and Technology


INNOVATION AND TECHNOLOGY

Botswana Innovation Hub (BIH)

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INNOVATION AND TECHNOLOGY

Vision To be the leading African destination for innovative businesses. Mission To provide an attractive location for technology-driven and knowledge-intensive businesses to develop, and to compete in the global market. Values Our organisation is guided by a set of values based on professionalism, integrity, efficiency, with the customer at the centre of all that we do. The BIH Concept When fully developed, the BIH will consist of world class facilities including state-of-the-art telecommunications infrastructure with high capacity international connectivity and secured power, professional business services, and business development services. The business services will allow companies to concentrate on their core business and outsource the rest. The development programmes, together with the support for R&D and the promotion of innovation and entrepreneurship, will make BIH an ideal place for business development. The image and the branding of the Botswana Innovation Hub is also an essential part of the concept. BIH Focus Sectors and Tenant Criteria Botswana Innovation Hub welcomes local and foreign businesses, research and advanced training institutes with activities in the following sectors: • Information and Communications Technology; • Mining Technologies; • Energy and Environment; • Biotechnology. Our Offer Strategically located, BIH will be established in Gaborone, the capital city of Botswana and centre of the country’s business activity. Over 50 percent of the country’s Diplomat Africa

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population live in and around Gaborone. The BIH is located strategically near the international airport and close to the highway that connects Botswana to South Africa, Namibia, Zimbabwe and Zambia. About 57 hectares of land, adjacent to the Diamond Hub has been secured for the first phase of the project from this developing area. Special Incentives: • 15 percent corporate tax • Flexibility in importing labour • A Competitive Telecommunications Package • Training Grant – 50 percent reimbursement on training costs 96

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• The Innovation Fund • Graduate Internship Scheme • Access to Venture Capital and Local Equity Partners High quality and effective office solutions The premises of BIH will be designed based on four main principles: orientation to high-tech customers, flexibility, ample common-use premises/shared facilities and use of environmentally-friendly technologies. For large companies, BIH will offer tailor-made solutions, with high standards of security and data connections. Smaller companies can enjoy high quality flexible premises that will match their development needs.


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and work together to foster innovation and new business. Jointly with the Universities, BIH is also planning for training programmes based on the needs of private sector. A platform for networking and interaction BIH premises will be designed in a way that is conducive to networking and collaboration (through shared use of meeting rooms, conference services, test beds, recreational facilities and restaurants). Being part of the BIH community and actively participating in our networking events, companies will have access to up-to-date information and will have the opportunity to build quality business connections. Timelines The BIH infrastructure works have started. The first buildings are expected to be ready for occupancy in early 2012. Companies have two options: either rent the office space or lease plots. However, foreign and local companies interested in bringing their business to BIH may register immediately, operate from temporary premises and enjoy the incentives. BIH has also started the networking, clustering and business development activities. Wide range of business services BIH services are being designed to support tenants’ competitiveness by allowing them to concentrate on their core business. All services will be offered through the BIH Management and will include advanced telecommunications infrastructure and services, HR services and business development services, to mention but a few. BIH will regularly develop a range of services based on companies’ needs and feedback. A place for innovation and technology transfer BIH is being established as the place where research, education, private businesses and the public sector meet

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SADC adopts DVB-T2

The SADC region last year selected Digital Video Broadcasting T2 (DVB-T2) as the digital terrestrial broadcasting standard of choice, ending months of deliberation and speculation. The latest version of the European standard was selected over that of ISDB-T (Integrated Services Digital Broadcasting). Following its recommendations, countries such as South Africa and Mozambique have since adopted the standard. Currently 12 of the 15 SADC (Southern African Development Community) countries have accepted DVB. The shift from analogue broadcasting to digital broadcasting has seen a global deadline of 2015. The SADC deadline of analogue switch off is set at 31 December 2013. Those who have not switched to digital televisions will then need the set top box to achieve viewing capability. It is not sure yet how much these set top boxes are to cost but South Africa has made plans to subsidize the “poorest-of-the-poor�. The decision to adopt DVB-T2 comes after considering

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the ISDB-T standard used in Brazil and Japan, after the former adopted and modified the Japanese standard. DVBT2 is commonly used throughout Europe and Africa and has MPEG4 compression. The predecessor of DVB-T2 was said to have initially been accepted by SADC in 2006 through the agreement signed in Geneva in 2006 and the technological developments into the T2 version were said to be factors contributing to the lengthy decision process. Another factor was of course the lobbying for ISDB-T on behalf of Brazil and Japan. The initial statement in November 2010 announcing the decision was issued by The Committee of Ministers responsible for ICT (Information and Communication Technology) at SADC. SADC had put together a special task team to evaluate and decide on the standard for the entire region. The announcement came after this committee responsible for the review of the digital TV migration standard had met for three days to discuss.

Joel Kaapanda, chairman of the committee, said the decision was based on the deadline approach as well as the fact that other standards had not yet been tested in compliance with the Geneva Agreement. This final decision brought relief from frustration after concerns were raised when the initial commitment to DVB-T was questioned – as many had already started the migration process. SADC suggests that those already into the process of migrating to DVB-T, although fine for now, will eventually have to switch to the newer version and is urging those who haven’t decided, to comply with the regions choice.

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The United Nations conference on Sustainable Development Earth Summit 2012: Rio+20 By Ntesang Molemele

Setting the scene In its conclusion in March 2010, the United Nations General Assembly decided to convene at a UN Conference on Sustainable Development, known as Rio+20. Rio+20 is scheduled to take place on the 4th, 5th and 6th June 2012 in Rio de Janeiro, Brazil. Accordingly, the Conference will be held at the highest possible level – including Heads of State and Government. The United Nations discussions on sustainable development can be traced back to the 1972 UN Conference on Human Environment which took place in Stockholm, Sweden. The Stockholm Conference resulted in the creation of the United Nations Environmental Programme (UNEP). Subsequent to that, other Major Summits related to sustainable development were held. These include the 1992 UN Conference on Environment and Development (Rio+10) which culminated in Agenda 21, and the 2002 World Summit on Sustainable Development which further resulted in the Johannesburg Plan of Implementation. These Conferences also led to the adoption of numerous Multilateral Environmental Agreements such as the UN Framework Convention on Climate Change, the Kyoto Protocol, Convention on Biological Diversity, and the UN Convention to Combat Desertification. Since Rio+10, governments and the international community at large have been grappling with finding the best ways to enhance and keep the momentum of the implementation of Agenda 21, the Johannesburg Plan of Action as well as that of other sustainable development goals. Rio+20 is therefore a follow-up to Rio+10 and the World Summit on Sustainable Development. The Bureau In deciding to convene at Rio+20, governments agreed to establish a Bureau comprising of country Ambassadors and representatives to lead the preparatory process. Currently, the Bureau is composed of those from Antigua Barbuda, South Korea, Egypt, Italy, United States, Pakistan, Czech Republic, Argentina, Croatia, as well as Botswana. Brazil, as 100

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socio-economic development in many developing countries. Rio+20 intends to review these implementation gaps.

host of Rio+20, serves as an ex-officio member of the Bureau. The members of the Bureau meet regularly to discuss the preparations for the Conference. A Secretariat for the Conference was also established to assist the Bureau in the preparatory process. The Objective of Rio+20 The objective of Rio+20 is to “renew political will for sustainable development; assess progress to date and the remaining gaps in the implementation of major Summits on Sustainable Development; and address the new and emerging challenges”. The implementation of sustainable development related goals, (particularly the Rio Principles, Agenda 21 and the Johannesburg Plan of Implementation) has been constrained by limited financial, human, technical and institutional capacities, especially in many developing countries. There is generally a mismatch between the needs of countries and the essential resources. The lack of technological capacity in many developing countries is also seen as a critical gap which requires strong political will and commitment if it is to be addressed. The new and emerging challenges, (including climate change and natural disasters; the interrelated financial, economic and food crises; energy security; degradation of ecosystems; diminishing natural resources including water scarcity, unsustainable consumption and production patterns, and impact on political instability) have also hampered the attainment of sustainable development goals. Member States and the international community are grappling with ways in which these critical gaps and challenges can be addressed in order to further implement sustainable development goals and so support

The themes • Green economy in the context of sustainable development and poverty eradication: Green economy promotes sustainable consumption, reduction in carbon emissions and renewable energy. The inclusion of sustainable development and poverty eradication in the theme is meant to ensure that any measures to be adopted in line with the concept of green economy should not undermine the poverty eradication strategies of developing countries and should also be in accordance with sustainable development goals agreed, including Agenda 21 and the Johannesburg Plan of Implementation. • Institutional framework for sustainable development: Since the Stockholm Conference, there has been a proliferation of Multilateral Environmental Agreements and institutions co-ordinating issues related to sustainable development. The point of convergence is that, this proliferation has culminated in a fragmented, duplicative and inconsistent sustainable development framework which has led to poor implementation: hence the need to restructure and strengthen the global governance for sustainable development. Participation Although Rio+20 is government-led, there are other important actors in the Rio+20 process. These include other inter-governmental bodies such as the IMF and the World Bank, and UNDP and UNEP. Regional preparations are also underway. The Economic Commission for Africa and other regional commissions such as the Economic Commission for Latin America and the Caribbean; the Economic Commission for Western Asia and the Economic Commission for Europe are also working with their members in the preparatory process for Rio+20. The civil society is also participating in the preparatory process. Diplomat Africa

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Outstanding performance. Continuous quality. Unwavering commitment.

As in diplomacy, swift action follows thought – this sentiment is echoed in a design that stands the test of time. Mahindra’s rugged utility and style is making its mark in Africa through its dedicated supply of commercial vehicles to government. With a Dealer Network throughout the SADC region, Mahindra is committed to building a firm relationship between our network and yours – the valued Mahindra customer.


Mahindra Botswana (Pty) Ltd Plot 20694, Sekotlo Road, Block 3, Broadhurst Industrial Tel: +267 3160155 • Fax: +267 3160154 mahindra@info.co.bw


TRANSPORT AND LOGISTICS

GABCON Gaborone Container Terminal

Botswana at the core of thriving regional logistics business Botswana is in-between seaport and landlocked countries and – these countries have to do business together. Southern Africa is experiencing some exciting developments; heralding an era where large money-spinning industries such as logistics enterprises – which are relatively new to the region – are emerging. A decade ago in Botswana, logistics was not a formidable force in the market. Today, it is considered essential for the national economy’s sustenance of its admirable pace and level of growth. Industry players, commentators and analysts may differ on the issue of whether the logistics industry makes any significant contribution towards the country’s gross domestic product, but they are agreed that it lubricates other sectors. They agree too, that logistics is in its prime. But it is the railway service that presents itself as even more lucrative. Gabcon is a 12-year old public enterprise which specialises in Containerised Dry Port business and logistics through the services of rail. Gabcon Chief Executive Officer, Modise Koofhethile admits that the rail logistics business is bursting with enticing business opportunities. According to Koofhethile, while the regional countries may each explore 106

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these opportunities, it is Batswana who stand an even better chance to reap the benefits. The nation looks up to Gabcon to ensure the opportunities at their disposal are explored. “Botswana is in-between the seaport and landlocked countries – these countries have to do business together,” he said matter-of-factly. “This geographical situation ensures we are a country in a position of great strength. All that Gabcon has to do is develop an efficient system that will allow us to diligently serve our fellow landlocked neighbours; ferrying their wares to and from the seaport

countries.” He stressed that in the context of logistics businesses such as rail and road transport services, Botswana remains the nerve centre of a thriving regional logistics industry: a blessed position. Traditionally, Botswana uses or relies on South African ports for access to the rest of the world’s imports and exports. The government is working on creating alternative options for investors and traders. They are shifting their focus to expanding seaport access to Mozambique and are currently in discussions. The country has acquired a piece


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of land in Walvis Bay, Namibia which will be used as a dry port for Botswana businesses and traders. Botswana government deserves to be commended for the steps it has taken to create more opportunities and platforms with which Batswana can trade with the rest of the world. According to the Gabcon CEO, “a well functioning logistics sector oils the economy and it cannot be an oiled sector if we were to rely on one seaport country to do business with the rest of the world.” Away from the sea, Botswana is also stepping-up efforts to attain the title of an undisputed regional transport hub. The said efforts are reflected in part by some of the ongoing infrastructure developments in the country. Some of these developments are bilateral undertakings. A railway line is planned to be developed between Botswana and Namibia and, another is set to be developed between Botswana and Mozambique. One of the bilateral infrastructural projects is the Kazungula rail road Bridge, which is to link Botswana with Zambia. Once these projects are completed, which is something that is expected to be realised before Botswana’s 50th anniversary of independence in 2016, the desire to make the country a regional transport logistics hub will be achieved. The country will be linked with all landlocked and seaport countries. “It is worth noting that the opening of the Botswana dry port in Namibia and the possible seaport in Mozambique would provide a healthy competition with South African ports and may result in competitive logistics costs which would benefit investors and traders – and ultimately, the consumers,” according to Koofhethile. He may be barely a year and a half at the helm of Gabcon, but Koofhethile is already highly informed of the industry norms and practices. He also knows very well the emerging opportunities that Gabcon and other logistics companies may tap into. The expansion of the mining sector means minerals such as coal, copper and gold need to be transported to seaport countries where they will be shipped to the world. The opening of new high-value

Gabcon Chief Executive Officer, Modise Koofhethile

industries in the country is of added interest to the Gabcon CEO and his workforce. “When I joined Gabcon, our focus was to address the company’s operational efficiencies for the benefit of our customers and the business. Now, we are focusing on growing the company,” said Koofhethile. “We integrate one-stop-shop where customs services, clearing agents, shipping agents and Gabcon can be found, ready to serve investors/ traders. The ongoing opening of borders of regional countries to ensure free movement of people and goods has benefitted both investors/traders and local companies alike. They have hailed the development as a positive step in making regional trading more prosperous to the point of delivering desired returns on investment and consequently, attracting investors/ traders who have long eluded the

region. In 2008, SADC affected a protocol that allows for free movement of 85 percent of the goods made in the region. It is anticipated that the remaining 15 percent classified as ‘sensitive’ shall be moving freely in the near future. www.gabcon.co.bw Diplomat Africa

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Reaching Africa and the World Best Service, Best Cost Fast + Furious International Global Village Logistics was established to consolidate and manage logistics services for local and cross border companies within the SADC region and ultimately worldwide. Fast + Furious International - Global Village Logistics - is a proudly Batswana company that offers a wide range of customized global transportation logistics and supply chain management solutions. Established to consolidate and manage logistics services for local and cross border companies within the SADC region and ultimately worldwide, Fast + Furious International - Global Village Logistics - offers the very best in third-party logistics and consulting services. This includes reliable domestic door to door delivery services and a daily express road service between Botswana and South Africa carrying ordinary, high value, critical and urgent documents, parcels and freight. Collection and delivery is offered on a same day and or overnight basis. Other services include international document and parcel service, warehousing and freight. Multi-modal options are available to offer road, air and ocean transportation and/ or a combination of these three options. Fast + Furious International - Global Village Logistics - has formed strong strategic partnerships that enable it to meet the specific requirements of its clients’ business needs. The company aims to provide professional consulting services to help companies reduce costs and increase efficiencies. This is achieved through the existence of strong local and international networks, key alliances and strategic partnerships. Fast + Furious International - Global Village Logistics has a broad understanding of its industry operations as a result of having worked with a number of carriers across the region. It is familiar with the strengths and weaknesses 108

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of the respective courier companies operating in the region and is geared to provide clients with a service that most meets their requirements at the lowest possible cost. The Fast + Furious International - Global Village Logistics - team boasts many years of hands on experience in logistics services, customer service and management. With clients being the company’s most valuable asset, emphasis is placed on treating them with respect, dignity and confidentiality regardless of the size and nature of the project. Fast + Furious International - Global Village Logistics - people will work very closely with the client to better understand the client’s specific needs. Highly trained and experienced Fast + Furious International - Global Village Logistics - professionals maximise strategic partnerships and alliances to guarantee the provision of the best worldwide express and logistics solutions in Botswana. Fast + Furious International - Global Village Logistics strength lies in its ability to provide effective solutions that equip clients with the best service at the best cost. Tel: +267 393 4893 Fax: +267 393 4897 www.globalvillagelogistics.co

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Kazungula in the North-South Corridor: collaboration is key

Trade in the SADC region is heavily reliant on the seamless flow of logistics as a result of its composition of a number of landlocked countries; the relationships between these and the seaport countries are therefore interconnected, ensuring collaboration is vital. The renewed focus on trade in the SADC region from investors throughout the world has resulted in a recent growth in the development and maintenance of logistics; with a number of exciting projects underway. The vital link of the expanding North-South corridor is one such component – the lifeblood that supplies a number of arteries which seep out over the land, nourishing its development, and therefore its people. This corridor connects the copper-belt region of Southern DRC and northern Zambia to the port of Dar es Salaam in Tanzania and the ports of Southern Africa; effectively benefitting Tanzania, DR Congo, Zambia, Malawi, Botswana, Zimbabwe, Mozambique and South Africa. A presentation on progress made on the North-South Corridor (NSC) programme, was presented at the NSC Capacity Building Training Workshop in Johannesburg, South Africa on 29th March 2011 by TradeMark SA. This report detailed the progress made and expanded on the developments of the upgrade. The aim of the North-South Corridor project is to “transform regional infrastructure and African trade” and is supported by COMESA, EAC, and SADC. The spearheading by TradeMark SA is as a result of their vision and objectives of poverty reduction through “trade led inclusive economic growth”. Their focus has been on the trade and infrastructure in corridor development. Their trade facilitation is of roads, railways, border crossings and ports ensuring “improved efficiency of trade flows”. This includes a reduction in costs and time delays, which has been an ongoing problem in the region.

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This was seen especially at the current Zambezi crossing. The unreliable Kazungula pontoon has created delays that have ultimately affected the pace of trade in the region. This has been a costly exercise for logistics companies and traders alike. The costly Kazungula Bridge Project is however a much anticipated necessity. Kazungula Bridge will serve to link Namibia, Botswana, Zimbabwe and Zambia and cement the trade relations between them – an essential component of the upgrade of the North-South corridor. The significance of this project on transport costs is echoed in the fact that container shipping costs in intraAfrican and inter-regional trade remain markedly higher

than that of international costs. However, various underlying causes of high-costs will also need to be addressed in order to optimize economic growth opportunities. These obstacles are seen to be the inadequate levels of roads, infrastructure and communication. These obstacles are the focus of institutions such as TradeMark SA, SADC, COMESA and NEPAD. The delayed Kazungula Bridge which will serve to speed up the transportation of goods at the Zambezi crossing has seen a number of recent developments in its progress, sending a message to sceptics that efforts have been stepped up to ensure that all is being done in the interim to further its development. Previous feasibility studies have been redesigned and cost and engineering evaluations have been undertaken by a contractor. With four countries involved and so closely affected, it’s no wonder that progress had previously been slowed with so many decision-making processes implemented. A number of factors, not excluding politics, seemed to get in the way of decision-making. The major component in the decision-making process at present seems to be the issue of financing. Further reports from consultants and engineers are being awaited after new feasibility studies were conducted. The construction of the bridge will be a milestone in the integration and collaboration of SADC countries and foster trade between them. The anticipation of such works to begin on the confluence of the Zambezi and Chobe rivers 65km upstream from Victoria Falls is increasingly felt, especially as it was initially envisioned for the development of the mining sectors of the countries which stand to benefit. The importance of such will be felt by the continent as a whole and may be seen as the heart from which the artery of the North-South corridor runs.

Latest on the Kazungula Bridge Project: • Draft Final Report submitted 15th December, 2010; • Botswana and Zambia submitted comments for the Final Detailed Design Report; • Donors Conference staged by May 2011 (donors such as ADB & JICA have already channelled their interest to fund the project); • The Bridge design configuration is “Extra Dosed” low cable-stayed; • Border Posts facilities design configuration is One-Stop-Border-Posts (SADC Protocol on TCM); • Total Estimated costs plus contingencies is US$192,152,984 (not including trade facilitation component); • Funding will be through sovereign loans and not PPP as initially envisaged; • The estimated construction period is 48 months.

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Zambian technocrat on his way to reforming TAZARA Founder member of the ruling Movement for Multiparty Democracy (MMD) Akashambatwa Mbikusita-Lewanika has used his dogged, expressive style to ingrain himself on Zambia’s political and social conscience. Now he is head of TAZARA and promising more of the same. You don’t get small talk with Akashambatwa MbikusitaLewanika. The long-time Zambian technocrat fashions himself as a man with a great deal of both idealism and practicality. In private briefings, as in press interviews, he exudes a kind of intense focus. An avowed pan-Africanist, Mbikusita-Lewanika belongs to one of Zambia’s most renowned families, and is of royal lineage from the Western province. With four academic degrees to his name, he is, among other things, one of the crafters of Zambia’s ruling Movement for Multi-party Democracy (MMD), a former cabinet minister, and until recently was President Rupiah Banda’s political advisor at State House. Now he is Managing Director of the Tanzania-Zambia Railways Authority (TAZARA), an assignment he was handed early last year. In his first sit-in interview since taking office, he speaks in passionate tones about the company’s current situation, its development strategy and the role of the railway in developing trade in the region. “I am very excited, very confident about my assignment here,” he says. “This project is extremely important to Tanzania and Zambia.” He speaks as one with a sense of urgency, which is understandable. He wants to remake the troubled railway, historically steeped in controversy, into an operation more relevant in today’s regional matrix. At the time the project of a railway linking the two countries was conceived, orthodox thinking was that it was not viable because of low economic activity to justify it. “It’s now quite obvious that such assumptions have been disproved over the years”, says 112

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Mbikusita Lewanika who is widely called ‘Aka’ in Zambia – a shortened version of his first name. “The economic demand for TAZARA is higher than ever imagined and is way above the railway’s current capacity.” Therein lies the problem. Cargo importers and exporters have long cried out for TAZARA to increase its capacity and get its notoriously late trains to start running on time. A more fluid railway would clearly benefit Tanzania and Zambia. More significantly, its advantages would be a huge benefit to other countries in east and southern Africa. “I’m confident that given the political will of the Tanzanian, Zambian and Chinese governments, TAZARA can move significantly towards achieving its original mandate,” says Mbikusita-Lewanika. Under his watch, he says, TAZARA will strive to be a guarantor of fluid regional movement of cargo among countries in the region. But to do that, it desperately needs to be an agile railway system. This notion is, however, nothing new and has been repeated ever since the rail tracks, which run from Tanzania’s port city of Dar-es-Salaam to Kapiri Mposhi in central Zambia, were laid by a combined team of Chinese, Tanzanian, Zambian and constructors in the 1970s. The accord between Tanzania and Zambia was that the post of chief executive would be held by a Zambian, with other managerial positions shared among nationals of the two countries. The managing director’s seat has since been occupied by various functionaries – including career civil servants, politicians and a military general. MbikusitaLewanika is the first one-time full cabinet minister to assume the brief. “The challenge,” he told TANZANIAINVEST shortly after moving to the head office in Dar-es-Salaam “is to transform TAZARA.” Indeed, Mbikusita-Lewanika seems to understand that if the struggling railway system does not act on calls for it to weed out its vexing inefficiency, the irrelevance that has long haunted it will increasingly become a reality. He is clear about the immediate issues that need tackling in the attempt to make TAZARA a success story. One obvious challenge is the three-fold factor concerning the power of the locomotives, the capacity of the wagons, and the dire Diplomat Africa

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need to get the trains running on schedule. “There is a great deficiency in the number of locomotives and wagons that we have,” he concedes. Even with its present antiquated infrastructure, he believes, TAZARA would serve disaffected cargo exporters and importers better by simply increasing its number of locomotives and wagons. Currently, the company has 1,853 commercial wagons. But only 988 – or 53 percent of these – are operating. The other 865 are defective, although 500 can be salvaged. The Chinese government has pledged more assistance through the 14th protocol signed over TAZARA, which would see infusion of capital at some stage soon. “Until then, we will focus our minds on doing the best we can with what we have,” he says. The current strategy is to ensure at least 14 locomotives are operating each day. But the creaking railway system

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is strapped with a backlog of debt, weighed down by low capacity utilisation, and hobbled by serious liquidity problems. Mbikusita-Lewanika has taken over a very sick company. At best, TAZARA has been averaging a turnover of US$3-million each month, which is inadequate to cover its daily operations. The new CEO’s target is to immediately boost that figure to at least US$5-million. “I’m pushing to ensure available revenues go to areas of expenditure that more greatly assure locomotive capacity and increase the number of wagons.” Mbikusita-Lewanika appears to be already striving to come good on his promises. In June 2010, the railway system commissioned its 28th newly upgraded wagon in Kapiri Mposhi. Mbikusita Lewanika revealed that TAZARA aimed to refurbish 500 wagons by the end of 2010 at a cost of K2.6-billion. (US$419,051). These 500 are those deemed repairable from the 865 defective wagons. The rehabilitation project will be carried out simultaneously at TAZARA’s workshops in Dar-es-Salaam and Mpika, in Northern Province of Zambia. So in the foreseeable future, liquidity problems will continue to dog an ambitious but troubled railway system. Its joint shareholders, the Tanzanian and Zambian governments have been injecting capital into the company, yet TAZARA is buckling amid the reality of the old story of low commercial cargo, freight, and passenger numbers. In 2007 the Zambian government gave the ailing railway system a K500-million (US$105,042) grant to upgrade its operational communications. For every grant received during 2006 and 2007, the Tanzanian government has provided supporting grants for works on the rail tracks. While he appears intent on his focus to revamp TAZARA, Mbikusita Lewanika is not blind to the mammoth task the company faces in settling historical debts owed to the two countries’ tax collection authorities and to pension managers. In referring to this crippling debt, he displays a dose of realism in pointing out that it can only be settled by the two shareholding governments. “It cannot be met from current and future operational revenue,” he says in measured tones. Asked about his perception of the role of TAZARA in


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regional development, the former Zambian minister goes into his pan-Africanist mode. TAZARA, he says, is not only strategic by virtue of its role in linking Tanzania and Zambia. Crucially it feeds into Zambia’s railway system, which links to the Democratic Republic of Congo (DRC) railway system, which in turn joins that of Angola (in the west). “So we anticipate good future prospects for a continuous railway link from the Atlantic Ocean in Angola to the Indian Ocean in Dar-es-Salaam.” The linkage with Zambia further reaches out to Durban and Cape Town in South Africa with the possibility of the connection fanning out to the railway network in Namibia. In that sense, he enthuses, a fluid inter-connected regional railway system can crucially complement road infrastructure. This is important in the transportation of cargo-like mining products that are not suitable for road and air transport. “Therefore, TAZARA holds great prospects for being a crucial facilitator of enhanced and more mutually beneficial involvement of Africa in global trade.” Will China’s loan in the 14th protocol be enough to haul TAZARA back on track? Mbikusita-Lewanika believes the loan is a major intervention for the rehabilitation effort of TAZARA and can help to greatly enhance operations. But that will only happen if everything that has been agreed is implemented and materialises at the same time. “Then we would be operating to a capacity that TAZARA has never before been able to achieve,” he says. His concern is that the loan is “too spaced out”, presenting the risk to TAZARA of it being unable to optimise the use of its assets and capacity. Mbikusita-Lewanika is a man who has passed through many stations in life. Apart from a political career, he was general manager of a state-owned company Copperbelt Ceramics, Kitwe, during the Kenneth Kaunda years. So he is not alien to boardroom politics. His new assignment at TAZARA will however require him to bring all his previous experiences and political acumen to bear. Some hard work lies ahead for him in ensuring the limping railway system becomes a profitable venture. We wait to see. Source: Mmegi Newspaper Diplomat Africa

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www.olsa.co.bw

OLSA DESIGNS is a forward thinking and dynamic architectural design frm based in Gaborone, Botswana, founded in 2003

OLSA plays an integral and indispensable part in the collective creative process in Gaborone and beyond, not only in the built environment but also the un-built. One of the firm’s stronghold is in its unique and dynamic approach to design, play of shapes, imaginative forms and colors both in interiors and architectural works aimed at giving its clients unique solutions and identity. With a primary focus on architectural design, projects have also been undertaken which deal with planning, interiors, and design aspects related to the architectural process. Inherent in aspirations at OLSA is the strong believe in bringing forth creativity at every forum of life regardless of constraints. As is evident in the portfolio of both built and proposed work, design is primary to the office. OLSA truly believes that lives can be positively affected by design, and that the task of architecture is to have this effect upon people. We believe that where creativity lacks, life stalls. Spaces must inspire, engage, and motivate its users as well as the greater community.

OLSA questions dogmatic strictures and conventional assumptions, favoring a careful consideration of light, material, and detail specific to the nature of each project. At the onset of every project, the process begins with understanding our clients’ goals and objectives. Familiarity with your vision is priceless. Our design team has the talent to transform a single idea into the type of environment that makes a lasting impression. In fact, each environment we design is completely unique. For those who are unsure where to start, our designers are also able to provide valuable inspiration to set your project into motion. Nature plays an integral role in our design philosophy. The principal architect and designer Mr Mulema Aggrey (B.Arch) has vast and extensive experience having worked in several leading architectural and interior design firms in Botswana and Kenya. He firmly believes that creativity at its best brings forth sustainable solutions to every aspect of life. Life is to be celebrated, and with great and liberating spaces and built forms. The firm’s client base, past and present encompasses corporate world, institutions, industrial and individuals.

OLSA Designs (Pty) Ltd Private Bag 00311, Gabarone, Botswana Tel: +267 317 0371 • Cell: +267 725 61011 Tel/Fax: +267 391 1204 olsa@work.co.bw • designworks@work.co.bw


Chapter 6: Growth and Development Africa


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WORLD TRADE CENTER

Building an African network of World Trade Centers Africa Open for Trade – A Plethora of Business Opportunities Just as a wave gains huge momentum and power before crashing onto the shores of Africa’s dramatic coastline – so trade and growth are gaining huge momentum on this incredibly diverse continent. Africa – as an emerging Market will continue to serve as a major growth engine of the global economy. However to achieve success and advance the African economies in a highly developed and competitive market, the individual African developing economies must pool their resources together and work alongside each other. The World Trade Centers Association is on the forefront of this burgeoning trade. It is on the cusp of a wave that is

constantly gathering more energy. As ports and harbours are Africa’s gateway to the World; the World Trade Centers are the gateway to Africa. Hence, the rationale for World Trade Centers springing up in numerous cities across sub-Saharan Africa. The goal is thus simple: to increase trade with Africa through each of the regional World Trade Centers in this vast continent. With a worldwide network of businesses in more than 100 countries and 330 cities, the World Trade Centers Association has successfully increased trade all over the world. Now, their sights are set on Africa and the wealth of opportunities it has to offer. World Trade Centers are powerhouses that amalgamate

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all the facilities and services necessary to transact international business and give companies (regardless of size) the expeditious access to international markets and a universal language to communicate with. The Mochron Office for International Trade, that provides services to the World Trade Center Johannesburg and Cape Town, has as its primary objective to increase trade with Africa and hence to achieve this objective applied to the WTCA (World Trade Centers Association) for 12 additional WTC licenses in sub-Saharan Africa and more specifically the SADC region (over and above the existing two South African licenses – WTC Cape Town and Johannesburg). These options were granted by the WTCA in New York to establish future WTC cities and are as follows: Angola (Luanda), Botswana (WTC Gaborone), DRC (WTC Kinshasa), Kenya (WTC Nairobi), Mozambique (WTC Maputo), Madagascar (WTC Antananarivo), Namibia (WTC Windhoek), Republic of Djibouti (WTC Djibouti), Rwanda (WTC Kigali), Tanzania (WTC Dar es Salaam), Uganda (WTC Kampala), Zambia (WTC Lusaka) and Zimbabwe (WTC Harare). The export of African natural resources, coupled with Value Add Processing on the continent, will in return stimulate the import of capital equipment and other foreign direct investment, as well as the engineering and manufacturing sectors. African business people have a deep-rooted pride and desire to use their own skills, creating direct wealth on the continent. Services The Mochron Office for International Trade leverages the capabilities of 43 Sub-Sahara African countries to function and operate as a unified global business force. Services offered by The Mochron Office for International Trade:

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• • • •

Trade Promotion Transactional Trade Services and Trade Education Import/Export Management Financial and Risk Management Solutions Pertaining to Importing & Exporting • WTC Executive Club Offering exclusive business services including: around the clock Private Banking, Executive Travel, Personalised & Individualised Executive global introductions, reciprocal office facilities in more than 300 cities, fast track access to all World Trade Center services, and multiple first mover opportunities. A crucial unprecedented service offering extended by the Strategic Business Unit – Trade facilitation – is an essential dimension in economic development in today’s globalised world, especially from a developing country’s perspective. Trade facilitation reduces the transaction cost and complexity of International Trade and improves the trading and investment environment in a country, while at the same time enhancing government control. As a consequence, trade facilitation results in mutual benefits for both the public and private sector and thus, in the end, transforms into increased welfare for the individual citizens. In layman terms, this is where the action occurs; WTC trade deals are executed at this stage, which includes freight forwarding, shipping, shipping insurance, clearance, couriering, trade financing, trade project financing, legal/regulatory requirements, bonded warehousing, trade settlement, and full Import/Export management. Together we can make a difference and achieve our individual growth objectives as well as achieve an increase of one percent of Global Trade with Africa which will earn the African continent approximately US$70-billion in annual revenue (which equates to more than three times the current foreign aid donations it receives and 16 percent


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more than Africa requires to alleviate poverty on the continent.) Business Opportunities Forty-three World Trade Center real-estate opportunities and spin-off business opportunities across African countries have been created. Real-estate value for developers using the World Trade Center brand is significant both in occupancy rate and rental returns, while the spin-off business opportunities leverage the business network of every businessperson for sustained and regular deal flow. The business opportunity with the Office for International Trade is therefore threefold: I. Real Estate Development: World Trade Centers are some of the most iconic buildings, which serve as landmarks in the respective cities where they operate. These buildings command rental rates at an average of 18 percent higher than similar buildings less than a street block away. Vacancy rates are in most cases 11 percent less than the market average. Countries like China are developing more than 120 WTCs because of the macro-economic impact this has on their country. The World Trade Center brand together with highimage/impact events and large volumes of people who visit WTCs provide implicit value to tenants. WTC buildings consolidate international trade agencies and private sector firms involved in global trade and commerce, providing a single point of access – it is a visible location of mostly intangible services. The Office for International Trade provides the services and management for the WTC projects it undertakes in Africa. The opportunity is for Real Estate Developers to capitalise on this opportunity without the need to run the operations of the WTC in Africa. II. Export and Import: Companies across sub-Saharan Africa are invited to participate and grow their business

globally, through the development of import and export trade both on the continent and off the continent. These companies will enjoy exposure through the region’s local WTC office to more than one million potential business partners at other WTCs globally. As the power of the World Trade Center network extends across countries and nations, each participating business is able to grow globally through The Mochron Office for International Trade and each regional WTC. The opportunities within a World Trade Center are not exclusive to big business. Each World Trade Center is required to engage local business to participate in every aspect of it is global success. As a professional person active in one of 150 selected regions, you are invited to apply for accreditation from The Mochron Office for International Trade. A successful accreditation will ensure your regional agency license. The agency represents The Mochron Office for International Trade and is the local partner that exclusively generates business between that region and The Mochron Office for International Trade. Agency revenue will be generated through every transaction with The Mochron Office for International Trade. These range from Trade Missions, Trade Exhibitions, International Trade Deals, Trade Finance, World Trade Center Real Estate and much more. To be qualified to carry this international accreditation and secure an agency license, applicants need to be mature businesspersons, who have held senior executive positions in business over a number of years. In most cases only experienced senior directors and managing directors can receive this accreditation – alternatively individuals with similar experience can apply. Applicants are required to attend training and assessments during a three week Regional Business School Training Seminar at the World Trade Center,

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followed by an interview with a panel of fully accredited businesspersons. During this assessment period, The Mochron Office for International Trade ensures that its regional agents are experienced enough to talk business, to its international clients. A regional agent is part of the global team for The Mochron Office for International Trade and they are the contributors to the Africa one percent goal. To assist in ensuring the agency success, accredited agents are introduced to the CEOs of strategic business partners in their regions and to the CEOs of other World Trade Centers. They are also automatically members of the World Trade Center Executive Club, receive sponsored international business travel, VIP conference passes, have access to World Trade Center technology platforms and office infrastructure. Only a select number of professional persons can be invited to secure an opportunity to grow their personal wealth and experience the challenges and excitement of international business. III. Strategic Partnerships: Strategic Partners in each economic region of Africa are required to make trade as seamlessly as possible. It is efficiency that generates the profit which grows the value of local business and economies. We therefore invite companies that provide business services related to: freight forwarding, shipping, customs brokers, business brokers, business consultants, accounting, legal, business development, international trade, import/export, global sourcing, procurement, commodity traders, professional conference organising, international marketing and publishing, trade and credit risk insurance and trade finance to come forth. Strategic partnerships will be formed with a select number of these companies in each economic region. In addition, the Office for International Trade is also seeking partnerships with port authorities, customs offices, warehousing and banking partners across Africa. It takes drive, ambition and superb business acumen to reach the highest echelons of the corporate world. Invest in your future – invest in your continent – World Trade Center, your investment partner.

Julius Steyn, CEO World Trade Center Cape Town and CEO Mochron Investments World Trade Center Crystal Towers, Century City Cape Town, South Africa Email: info@wtc.co.za Telephone: +27 87 944 4072 www.wtc.co.za

WORLD TRADE CENTER ANGOLA (WTC LUANDA) | BOTSWANA (WTC GABORONE) | DRC (WTC KINSHASA) | KENYA (WTC NAIROBI) | MOZAMBIQUE (WTC MAPUTO) | MADAGASCAR (WTC ANTANANARIVO) NAMIBIA (WTC WINDHOEK) | REPUBLIC OF DJIBOUTI (WTC DJIBOUTI) | RWANDA (WTC KIGALI) | SOUTH AFRICA (WTC CAPE TOWN & JOHANNESBURG) TANZANIA (WTC DAR ES SALAAM) | UGANDA (WTC KAMPALA) | ZAMBIA (WTC LUSAKA) | ZIMBABWE (WTC HARARE)

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Youth empowerment: the key to Africa’s sustainable development Two-hundred million of Africa’s current one billion citizens are between the ages of 15 and 35 years old. This increases pressure on African leadership to develop dynamic and concrete solutions for their growing demands. The lack of opportunities for youth to fully develop their potential, leads to their ineffective participation in political, economic and social development. This situation hinders the realisation of the vision and mission reflected in the NEPAD Agency – which aims to enhance Africa’s growth, development and participation in the global economy as a strategy for poverty reduction and to meet the challenges of the globalisation processes. As reflected in the African Position on Youth development priorities (2010-2015), youth are living in precarious situations due to several shortcomings in education, health, employment, governance, human rights and financial resources. African position on youth development The vision and mission of the African Union, reflected in the NEPAD Agency goals, gives high priority not only to economic growth, but also to deliberate efforts to accelerate social development where youth empowerment and development is a central point. This position is reflected in the African Position on Youth Development, a document that addresses the main problems, challenges, opportunities and priority areas for action on youth issues.

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Progress achieved The AU fully recognises the challenges and the great opportunities that the youth are presented with. Numerous actions are being undertaken mainly to involve youth in political participation and decision-making processes at different levels. The African Youth Volunteer Corp (AUYVC) programme was launched in 2011. It stipulates the outcomes of youth participation in competency and skills development as contributions toward the achievements of NEPAD and MDG’s targets. A first batch of 54 youth volunteers from 16 countries was trained and is being deployed. At national level, youth parliaments have been established in many countries and a growing number of young people are being appointed executive positions (ministers, executive officers, business managers, heads of enterprises, etc.). At regional and continental level, youth networks have been established, including the Pan African Youth Union after its revitalisation through the framework of the Banjul Decision Ex.CL/Dec.292(IX). In addition to that, most African countries have youth-related policies and programmes, which have been developed in consultation with the youth. At continental level, the African Youth Charter was adopted in 2006 and has been ratified by 24 countries as of March 2011. The African Youth Charter is a comprehensive framework that addresses the rights and obligations of the youth, and also constitutes the social contract between the state and the youth which responds to the priority needs regarding their development and empowerment. The Plan of Action of the second decade of Education (2006-2015) is under implementation and it emphasises the need for higher quality in African education at all levels. Based on the Declaration of the Decade on Youth Development and Empowerment in Africa (2009-2018), a Plan of Action was approved and is under implementation with the following key areas of intervention: Socio Economic Empowerment, Health and Well-being, Resource and Alliance Building for Youth Development and Research, Monitoring and Evaluation. Due to the close collaboration of different stakeholders, Diplomat Africa

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other meaningful progress has been achieved. Namely in the updating of the African Database on Qualified Youth, in developing surveys and research regarding the demographic and impact of participation and volunteer work with African youth, and on the role of volunteer work in the poverty reduction of disadvantaged groups. Accelerating the youth empowerment The AU Heads of State Summit, under the theme “Accelerate the Youth Empowerment for Sustainable Development” will be held in June/July 2011 in Malabo, Equatorial Guinea, with the participation of youth delegations. Beyond the pre-summit events, and the proposition that the youth will present to the Heads of State, the expected outcomes of the June/July summit will include a call for urgent action to accelerate the youth empowerment framework in Africa, to ratify and accelerate the implementation of the African Youth Charter, the Decade Action Plan on Youth (2009-2018) and all the existing frameworks within the strategic areas for youth empowerment. They will also include the implementation of the African Union Youth Volunteer Corps at continental level and the strengthening of the relevant technical and institutional capacities for quick-win strategies in responding to youth empowerment. Those are: • the academic institutions (Pan African University) within the framework of the 2nd Decade Plan of Action for Education in Africa; • the African networks on youth at all levels; • the African Union Commission, the RECs and partners for the effective monitoring and evaluation. Finally, the Summit is expected to call for urgent and increased investment by stakeholders in youth empowerment by envisaging innovative strategies for funding youth development, fundraising mechanisms and establishing a special fund to support the acceleration of youth empowerment. Obviously, for a comprehensive implementation of the African Youth Charter and the Plan of Action for the Decade on Youth, international collaboration is essential. The financial sustainability is also one of the important priorities, and the AU is making efforts to implement an innovative resource mobilisation strategy that, in the long-term, aims to: diversify the donor base by increasing the number and the variety of partnerships; expand the range of contribution by raising the level of multi-year contributions and pledges; and, as the most important pillar, to implement an African Youth Trust Fund. www.au.int

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• Education: Inadequate investment and competitive education, including skills and mastery of modern technology for the youth. Besides, the school life expectancy in the last decade was very low for some countries such as Niger, DRC. The inadequate absorptive capacity of academic institutions at all levels is also a problematic issue. • Health: in the large majority of countries, the limited access to youth regarding health information and quality services regarding HIV-AIDS and reproductive health is a worrying reality. In some countries up to 60 percent of all new HIV infections, occur in youth between the ages of 15 and 24 years old (WHO, 2010). Injuries of alcohol abuse are the main causes of death and disability in school-age youth. • Employment: regarding this issue the document arise the lack of productive employment and self-employment, which leads to the exclusion of social capital indispensable to the socio-economic development. Statistical data’s shows that the ratio of the young-toadult unemployment rate equals three out of every five (ILO, 2006). • Governance and human rights: emphasis on the low opportunities for civic participation, governance and education, raising equity, equality and the relevance of social inclusion issues in general and particularly on gender. • Finance: The poor access to financial and other resources in ensuring the issue of youth development is addressed properly.

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NEPAD is a vision and strategic framework for Africa’s renewal The strategic direction of the NEPAD Agency is based on the following thematic areas: (a) Agriculture and Food Security; (b) Climate Change and Natural Resource Management; (c) Regional Integration and Infrastructure; (d) Human Development; (e) Economic and Corporate Governance; and (f) Crosscutting Issues of Gender and Capacity Development.

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The New Partnership for Africa’s Development (NEPAD) Chief Executive Officer Dr Ibrahim Assane Mayaki of the Republic of Niger and Prime Minister of that country from November 1997 to January 2000, is intent on taking their Partnerships to new heights – and lengths. What is NEPAD The NEPAD strategic framework arises from a mandate given to the five initiating Heads of State (Algeria, Egypt, Nigeria, Senegal, South Africa) by the Organisation of African Unity (OAU) to develop an integrated socio-economic development framework for Africa. The socio-economic framework was a result of the merger of the OMEGA initiative, which had been initiated by President Wade of Senegal and the Millennium Partnership for the African Recovery Programme (MAP) into the New Africa Initiative (NAI). NAI, which was later named the New Partnership for Africa’s Development, was formerly adopted by the 37th Summit of the OAU in July 2001, in Lusaka, Zambia. “The founding countries all came to the party and joined forces designing a comprehensive development framework which could be used as a referral framework,” he adds. “The referral framework would measure the outcomes of delivering certain development programmes in key sectors such as Infrastructure, which covers Energy, Transport, ICTs, Water and Sanitation; Agriculture and Food; Peace and Security; Science, and Technology; Trade and Market Access, including, Tourism and the Environment; Human Development – which includes Health and Education and Water and Sanitation. In addition, we also have a focus on Governance and State Capacity Building which are the conditions for sustainable development, while Gender and women empowerment is central to all programmes.” Dr Mayaki says the key dimensions of NEPAD are twofold – Accountability and Integration. “Firstly,” he says, “the programme is based on Africans counting on themselves in order to achieve the set African Union (AU) vision as espoused in the AU Constitutive Act, and the internationally agreed Millennium Development Goals (MDGs) and do not count exclusively on foreign aid. Secondly, African development will not be possible if there is no regional integration.”

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The future With regard to the future, Dr Mayaki says he, and NEPAD, see the future in a very positive light. “We have highly skilled staff and an exceptionally good reputation with our partners. Our strategic plan will, very strictly, encompass the mandate which has been defined for us. We are building an organisational culture based on participatory mechanisms which will help us to collectively describe and attain our programmes and activities. “The image which has to be created and disseminated by NEPAD,” Dr Mayaki emphasises, “is that the NEPAD is an inclusive African initiative for the whole of Africa and not a closed club. The five founder member countries, as well as our Steering, or Orientation, Committee – comprising representatives from an additional 15 African countries (three countries per region)”. “The Committee,” he continues, “also has representation from regional development communities and regional development banks. This just re-emphasises and reiterates that NEPAD must not be seen as an exclusive initiative – but as an all-inclusive club, which was the aim promoted by the founder members when NEPAD was originally conceived. Our ideal,” Dr Mayaki stipulates, “is to expand to a membership-base of all 53 countries on our continent with the key dimension being broad ownership. Successes “A great deal has been done in terms of delivery at the NEPAD secretariat level with regards to science and technology – we have built sufficient networks of research at an excellent level throughout Africa. In the Agriculture sector we have Dr Ibrahim Assane Mayaki, Chief Executive Officer, who conceived the main African framework for the Comprehensive Africa Agriculture Development Programme (CAADP) which has been adopted by the AU. As far as gender main-streaming is concerned, we have helped realise 300 projects in about 14 countries.” “In information and technology,” he continues, “we have a network of e-schools which is an original experience throughout the continent – integration of e-learning in primary and secondary schools. We also have an actionplan for the environment and for each of the sectors we’ve mobilised resources for each of these products. Our partners have given us the resources to implement these.” The youth “We are an extremely young continent,” Dr Mayaki stipulates, “as more than half of our population are less than 18 years of age. With this in mind we are working for the youth – this makes sense when you realise it is the empowerment of a well-educated and gender-balanced young population that will effectively allow the continent’s development. You cannot govern a young population in the same way as you govern an old population,” he says, “and if you don’t integrate the necessities of this you will be in trouble politically.” Primary Objectives Eradicate poverty; place African countries, both individually and collectively, on a path of sustainable growth and development; halt the marginalisation of Africa in the globalisation process and enhance its full and beneficial 130

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integration into the global economy; and accelerate the empowerment of women. Principles • Good governance as a basic requirement for peace, security and sustainable political and socio-economic development. • African ownership and leadership, as well as broad and deep participation by all sectors of society. • Anchoring the development of Africa on its resources and resourcefulness of its people. • Partnership between and amongst African peoples. • Acceleration of regional and continental integration. • Building the competitiveness of African countries and the continent. • Forging a new international partnership that changes the unequal relationship between Africa and the developed world. • Ensuring that all Partnerships with NEPAD are linked to the Millennium Development Goals and other agreed development goals and targets. Priorities a. Establishing the Conditions for Sustainable Development by ensuring: peace and security; democracy and good, political, economic and corporate governance; regional co-operation and integration; and capacity building. b. Policy reforms and increased investment in: agriculture; human development with a focus on health, education, science and technology and skills development; building

and improving infrastructure, including Information and Communication Technology, Energy, Transport, Water and Sanitation; promoting diversification of production and exports, particularly with respect to agro-industries, manufacturing, mining, mineral beneficiation and tourism; accelerating intra-African trade and improving access to markets of developed countries; and the environment. c. Mobilising Resources by: increasing domestic savings and investments; improving management of public revenue and expenditure; improving Africa’s share in global trade; attracting foreign direct investment; and increasing capital flows through further debt reduction and increase ODA flows. Desired Outcomes • Africa becomes more effective in conflict prevention and the establishment of enduring peace on the continent. • Africa adopts and implements principles of democracy and good political economic and corporate governance, and the protection of human rights becomes further entrenched in every African country. • Africa develops and implements effective poverty eradication programmes and accelerates the pace of achieving set African development goals, particularly human development. • Africa achieves increased levels of domestic savings, as well as investments, both domestic and foreign. • Increased levels of ODA to the continent are achieved and its effective utilisation maximised. • Africa achieves desired capacity for policy development, co-ordination and negotiation in the international arena, to ensure its beneficial engagement in the global economy, especially on trade and market access issues. • Regional integration is further accelerated and higher levels of sustainable economic growth in Africa is achieved. • Genuine partnerships are established between Africa and the developed countries based on mutual respect and accountability. www.nepad.org

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The Common Market for Eastern and Southern Africa (COMESA) COMESA’s Priorities and Objectives The history of COMESA began in December 1994 when it was formed to replace the former Preferential Trade Area (PTA) which had existed from the earlier days of 1981. COMESA (as defined by its Treaty) was established “as an organisation of free independent sovereign states which have agreed to co-operate in developing their natural and human resources for the good of all their people” and as such it has a wide-ranging series of objectives which necessarily include in its priorities the promotion of peace and security in the region. However, due to COMESA’s economic history and background its main focus is on the formation of a large economic and trading unit that is capable of overcoming some of the barriers that are faced by individual states. COMESA’s current strategy can thus be summed up in the phrase “economic prosperity through regional integration”. With its 19 member states, population of over 389-million and annual import bill of around US$32-billion with an export bill of US$82-billion COMESA forms a major market place for both internal and external trading. Its area is impressive on the map of the African Continent covering a geographical area of 12 million square kilometres. Its achievements to date have been significant. A Free Trade Area The FTA was achieved on 31st October, 2000 when eight of the member States (namely Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe) eliminated their tariffs on COMESA originating products, in accordance with the tariff reduction schedule adopted in 1992. This followed a trade liberalisation programme that commenced in 1984 on reduction and eventual elimination of tariff and non-tariff barriers to intra-regional trade. Burundi and Rwanda joined the FTA on 1st January 2004. These ten FTA members have not only eliminated customs tariffs but are working on the eventual elimination of quantitative restrictions and other non-tariff barriers. Customs Union A Customs Union may be defined as a merger of two or more customs territories into a single customs territory, in

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which customs duties and other measures that restrict trade are eliminated for a substantial amount of trade between the merged territories. The territories, in turn apply the same duties and measures in their trade with third parties. In preparation for a Customs Union the Eleventh Meeting of the Council of Ministers held in Cairo, Egypt adopted a Road Map that outlined programmes and activities whose implementation was necessary before the launching of the Union. Trade Promotion Other objectives which will be met to assist in the achievement of trade promotion include: • Trade liberalisation and Customs co-operation, including the introduction of a unified computerised Customs network across the region. • Improving the administration of transport and communications to ease the movement of goods, services and people between the countries. • Creating an enabling environment and legal framework which will encourage the growth of the private sector, the establishment of a secure investment environment, and the adoption of a common set of standards. • The harmonisation of macro-economic and monetary policies throughout the region. COMESA Institutions Several institutions have been created to promote subregional co-operation and development. These include: • The COMESA Trade and Development Bank in Nairobi, Kenya • The COMESA Clearing House in Harare, Zimbabwe • The COMESA Association of Commercial Banks in Harare, Zimbabwe • The COMESA Leather Institute in Ethiopia • The COMESA Re-Insurance Company (ZEP-RE) in Nairobi, Kenya In addition a Court of Justice was also established under the COMESA Treaty and became formally operational in 1998. Further initiatives exist to promote cross border


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Mr Sindiso Ngwenya, Secretary General – COMESA initiatives, form a common industrial policy and introduce a monetary harmonisation programme. What COMESA Offers COMESA offers its members and partners a wide range of benefits which include: • A wider, harmonised and more competitive market • Greater industrial productivity and competitiveness • Increased agricultural production and food security • A more rational exploitation of natural resources • More harmonised monetary, banking and financial policies • More reliable transport and communications infrastructure

The Decision making Process COMESA has evolved a comprehensive decision-making structure at the top of which are the Heads of State of the 20 member countries. There is then a Council of Ministers responsible for policy making, 12 technical committees and a series of other advisory bodies (including specific relations with partner countries and the business community). In addition each member state appoints liaison persons in their appropriate ministries who form part of the day-to-day communication process. Overall co-ordination is achieved through the Secretariat, based in Lusaka, Zambia, who will be happy to deal with all initial communication.

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DIPLOMAT Africa - Volume 1