21 June 2011 | Angeline Albert
A surge in business confidence for the second half of 2011 among Botswanan
firms has been attributed in part to the government’s local sourcing policy.
The impact of the government’s efforts to prioritise domestic firms for
public contracts was highlighted by the Bank of Botswana’s latest Business Expectations Survey
which was conducted between March and May 2011.
For the second half of 2011, expected
satisfaction with business conditions is 64 per cent, and that figure rises to
67 per cent by 2012.
The twice-yearly report, which covers the economic expectations of 65
companies up to June 2012, showed that confidence was far lower for the first
six months of 2011, with less than half (47 per cent) saying they were satisfied
with the business climate.
Businesses involved in the survey cover sectors
and industries including agriculture, mining, manufacturing, water,
electricity, construction, trade, transport and financial services.
The report said: “One potential explanation
for the stronger recovery in confidence among exporters is the continuing
improvement in prospects for the mining sector. For non-exporting domestic
producers, there may be some anticipation of benefits starting to accrue from
government plans to prioritise them in future procurement programmes.”
Botswana began work in 2010 to use the government’s purchasing power to
benefit local suppliers of goods and services at the expense of imported
government’s local sourcing policy means any
companies which are awarded public sector contracts to manufacture products
locally but then import goods from overseas, are blacklisted from future
Buoyancy in the mining sector is also
expected to boost overall economic performance. The forecast by the Ministry of
Finance and Development Planning is that real GDP will grow by 6.8 per cent in