Botswana Private Sector Development

Private Sector Development Program
A Government of Botswana initiative supported by the European
Union and the Centre for the Development of Enterprise and
Business Botswana
Program Implementation Status
Gaborone, Botswana November 2015
European UnionGovernment of Botswana

Overview of the Program
PSDP was developed following the adoption of the Private
Sector Development Strategy initiated by Business Botswana
PSDP is a flagship program aiming to stimulate and sustain
growth through diversification of the economy
Main focus of the program is “capacity building” of
institutions & human resources that support the private
sector.
11/3/2016

Program Stakeholders and Respective
Contribution
• Key stakeholders
Contracting Authority: EU through 10th EDF (2.3 Million)
Supervising Agency- Ministry of Trade & Industry (MTI)
Executing Agency- CDE ( Euro 500,000 to support the Program Coordinating Unit
Program Monitoring - Business Botswana (BB)
• In-kind support:
MTI: Delegated staff on trade and program offices
Business Botswana: Delegated staff on internal monitoring and Evaluation
• Fund mobilization:
Chanel Corporate Foundation( France): support to Women Entrepreneurship Development
(WED)
Technical Barriers to Trade program (TBT): on going discussion on capacity building of
Botswana Bureau of Standard (BOBS)
• Partners:
Managers without Borders
Senior Experten Services
Technical Barriers to Trade (TBT) Program addresses Non-Tariff Barriers (NTBs)
Tokafala
11/3/2016

Management Committee (Chaired by the in MTI), members include EU Delegation,
NAO, CDE, MTI, Business Botswana and IOs).The MC will meet on a monthly basis for;
- Overall policy guidance and support to the program
- Ensure the compliance of the PSDP implementation with the signed Contribution Agreement.
- Discuss and approve/endorse planned activities proposed by the coordinating unit
Coordinating Unit
The Team Coordinator will work closely with the Executing Agency.
He will manage and coach the PSDP staff under the following
duties;
Manual of Procedures, Annual Work plan and Budget
 Prepare and update the manual of procedures and work plan
including budget to be submitted for approval to EU Delegation,
CDE, and MTI
Propose evaluation committee members (tendering and call for
proposals)
Market Consultation/Tendering
 Preparation and submission of market consultation dossier to the
Executing Agency
 Elaboration of contract for the successful bidder (service or grant
contracts) to be approved and signed and by Executing Agency
 Follow-up on activities of awarded contract
Assistance to the implementation of capacity building activities
 Development of database and selection of experts to implement
the program activities
 Coordinating all activities to mobilise financial resources in support
of SMMEs
Report monthly to the Executing Agency
 Prepare and present on-going activities (technical and financial
reports)
Communication and Visibility
 Promotion of PSDP to media, Public and Private sector stakeholders
e.g. Brochures, newsletters and magazine articles
Process payments of expertise and other service suppliers
 Keep records of all financial transactions under the program
Monitoring and Evaluation
 Assistance the Executing Agency and BOCCIM on the monitoring
and evaluation tools of the program
Executing Agency (CDE)
Facilitation/Secretariat
- Administer funds
- Coaching the coordinating unit team
- Launch call for proposals and market
consultation dossier
-Approval of evaluation committee members
- Administrative compliance of offers,
verification of technical offers and technical
grid from evaluators, opening of financial bid
and verification whether it fulfills the
instructions, information on the successful
bidder or unsuccessful tender
-Approval of market consultation and tender
dossiers
- Organizing and information meeting for
shortlisted service providers
- Approval and signature of successful service
provider contracts
- Notification to successful bidder and award
of contract
- Requesting annual EDF funding based on the
work plan
Beneficiaries ( Intermediary Organizations)
The IOs will work closely with the
Coordinating Unit in all activities of the
program. Their duties will include the
following;
Implementation of annual work plan and
budget prepared by the coordinating unit to
select pertinent activities
Identification and selection of activities to
be implemented in the program
Implementing activities approved by the
evaluation committee including;
 sector studies
 value chain and cluster support
 training workshops and seminars for
SMMEs and IOs
 capacity building for SMMEs (business
competitiveness enhancement,
management and staff upgrading,
communications strategies and
marketing plan, technical and business
planning preparation for mobilizing
investment finance, access to markets,
green energy solutions)
Ministry of Trade and Industry (MTI)
Supervision of program Implementation
European Union
Contracting
Authority
Business Botswana (internal Monitoring and
evaluation)
Monitor the efficiency of PSDP with regards
to PSDS
Organizational Structure for PSDP Botswana
N.B: Reporting
Collaboration in implementation of activities

PSDP Priority Sectors
• PSDP is assisting SMMEs and CBOs in four priority sectors based on PSDS
priorities and outcome of stakeholders consultations
• The sectors have exporting potential in support of economic
diversification.
Manufacturing including
Agro-industries
Tourism Construction and
public works
Information &
Communication technology
11/3/2016

Objectives and strategic linkages
The program has a strong link with two strategies: the PSDS and the
Economic Diversification Drive Strategy
Result Area 1: Capacitate SMMEs and CBOs and conduct value chain
studies
Result Area 2: Enhance the service delivery of Intermediary
Organizations (IOs) especially Business Botswana to be the lead private
sector voice (Apex body)
 Result Area 3: Reduce red tape and access to financing in the business
environment
11/3/2016

Organization and PSDP interventions
Results Area 2. Service
delivery of IOs & BDSPs
enhanced
Results Area 1. Capacity
building and
competitiveness of SMMEs &
CBOs including value chains
strengthened
Results Area 3. Business
environment for enterprises
improved.
PSDP is
structured
around 3
interlinked
components
11/3/2016

Implementation approach
- Analysis of 8 value chains in agro-industries &
tourism sectors
- Sector Support to Construction & Public
works & ITC
- Audits of SMMEs & evaluation of IOs
(Diagnostic of baseline situation)
- Capacity building need Assessment of
beneficiaries in priority sectors
- Development of Market intelligence
Information system
- Assessment (Review cost of doing business)
- Enhance MTI’s expertise to manage the PSDS
- Trade facilitation & access to trade finance
- Establishment of a Microfinance policy
framework
-Assist BITC to implement Export Development
program (EDP) & Global Expo to improve
investment environment
- Establish Business Botswana as an APEX body
of all sector associations
- Build the capacity of SMMEs (group training,
individual coaching/mentoring
- Improving networking of IOs and SMMEs.
- Women participation in Economic
development (WED program)
Value chain
development
Enabling
environment for
Enterprise
Development
Capacity
building of
SMMEs , CBOs,
IOs & BDSPs
11/3/2016

Implementation phases
• Based on broad stakeholders consultation, implementation
is three-phased:
Consultation
Intervention
Preparation
April-Sep 2013
Mobilization of partners
and resources
April 14-Dec 16
• Capacity building of
SMMEs & CBOs
• Capacity Building of IOs &
TSIs
• Collaboration with MTI on
ease of doing business
Oct –March 2014
Framework Studies:
• Value chains & sector analysis
• Audits of SMEs
• Market intelligence
• Trade & Finance
• Apex body
• M&E
11/3/2016

• 7 Value Chains (VC) Completed:
• Beef
• Dairy
• Goat
• Poultry
• Horticulture
• Leather
• Piggery
• 1 Tourism VC: ongoing
Completed VC shared with stakeholders
11/3/2016
PSDP Result Area 1: Value Chains

SMME Selection
• Expression of Interest was made in January 2014 resulting in
a total of 171 applicants of which 128 met the program
criteria
• A technical evaluation was carried by the program
stakeholders (BB, CDE, EUD, MFDP, MTI and the PSDP CU) on
5 June 2014 which selected 100 organizations as program
beneficiaries:
• 70 SMEs
• 28 Micro Enterprises
• 2 CBO’s
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PSDP Result Area 1: Capacitation of 70
SMMEs and 30 CBOs

Distribution of PSDP Beneficiaries
11/3/2016
SMMEs and 30 CBOs
1 5
1
49
11
2
41
2
3
11
1
6
1
1
2
1
2
1
1 1 1 1
Bokaa
Francistown
Gabane
Gaborone
Kachikau
Kang
Kasane
Kazungula
Letlhakane
Lobatse
Mahalapye
Maun
Mmopane
Mogoditshane
Molepolole
Palapye

SMME Audit
• The CU undertook a diagnostic of all SMMEs in order to identify the beneficiary challenges
toward their respective strategic, process and support level areas of need.
• With a view of ensuring sustainability and meeting the Result Area 2 objective of
capacitating IOs, the PSDP capacitated the following IOs:
11/3/2016
SMMEs and 30 CBOs
10
3
6
4
13
5
1
3
2
1
6
4
3
BNPC BOCCIM BIH BITC LEA CEDA HATAB HRDC BOBS PEEPA BIDPA CDE-PSDP BDSP

SMME Audit Results
Most companies audited lack expertise or skills in the areas of strategic management and financial literacy
both instrumental towards the success of any organization as prioritized below by sector:
11/3/2016
SMMEs and 30 CBOs
Business Sector Challenge # 1 Challenge #2 Challenge #3
Manufacturing Marketing and Sales Finance Production & Operations
Agro Industry Quality Management Production & Operations Marketing and Sales /Finance
Const. & P.W. Finance Marketing & Sales Strategic Management
ICT Marketing & Sales Finance Strategic Management / HR
Hotel & Tourism Finance Marketing & Sales Strategic Management / HR

SMME Roadmap Methodology
A beneficiary roadmap to facilitate access to market, access to finance and increased competitiveness was developed.
11/3/2016
PSDP Result Area 1: Capacitation of 70 SMMEs and
30 CBOs

SMME Categorization
Due to the differing organizational needs (size and scope) of the 100 beneficiaries, the CU categorized
them as follows to ensure their technical assistance caters to their specific needs.
• HiPos: these are organizations with the potential to make significant gains in all pillars of the program
irrespective of turnover, staff complement and operational sector - in total there are 30 HiPos. Please
refer to annex 3 for a full list.
• SME: any sector independent small medium enterprise with a minimum turnover of 1.5MIL – 5MIL
BWP60 in total.
• SMME: any sector independent Micro or Community Based Organization (CBO) with a minimum
turnover of 1,499,999 MIL BWP and a staff complement of 1 – 14 people – 28 Micros and 2 CBOs.
11/3/2016
SMMEs and 30 CBOs
70
30
28
2
100
0 20 40 60 80 100 120
Beneficiary Categorization
Beneficiaries CBO MICRO HiPos SME

PSDP SMME Implementation
To date the PSDP has implemented 1,618,833 Mil Euro in ameliorating 67 of the 100 beneficiary SMMEs
towards playing a larger role in the economy of Botswana; with the majority of budget directed to local
service providers.
11/3/2016
SMMEs and 30 CBOs

PSDP SMME Interventions
The above mentioned funds were invested in IO partner collaborative initiatives, where possible with the
following list of service providers.
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SMMEs and 30 CBOs
BB BIH BITC BNPC BTO CEDA HATAB LEA NDB PSDP Standard Charted Bank Tokafala
EDF Training
Diagnostic Audit Training
Diagnostic Audits
Technical Sector
Management
Local Mentors
Energy Management
Construction & Public Works
Technical Barriers to Trade
Occupational Safety & Health
Beef Sector Assistance
Business Management Training
Value Chains
Beef PPD
Tsodilo Initiatives
Upgrading Honey Associations
Global Expo
HiPo Support

SMME Observations and Lessons Learned
• A good 90%+ of the beneficiaries have secured and worked their way through
government assistance funds such as the Financial Assistance Plan (FAP),
Botswana Development Corporation (BDC) unsecured equity investments /
grants, international donor grants and CEDA soft loans.
• Most if not all beneficiaries applied to the program in search of grants and or
soft loans; and they continue to request financial assistance despite the clear
and consistent message that the Program does not provide funding and or
financing.
• Some companies are in serious financial distress such that they need financial
bailouts before any operational support.
• Do not realize the full potential of the EDD program.
• There is a total lack of cluster collaboration or enterprise networks - i.e.
business clubs.
• There is a general dependency on government tenders
• Some companies believe that an EDD and PPADB certificate should guarantee
government business.
11/3/2016
SMMEs and 30 CBOs

• A schism between business owners and staff was noted because business owners do
not have:
• Entrepreneurial spirit
• Any tolerance for risk
• Any innovation
• Requisite business and or staff / HR management skills
• A significant number of beneficiary promoters are not dedicated to their
organizations; they do not work for themselves on a fulltime basis.
• Requisite communications with staff - i.e. strategy, performance, market /
competitors, etc...
• There is a general dependency on:
• Consultants via the requests for long term / permanent consultancies
• SMME Staff have:
• No loyalty
• No patience in developing their career
• High staff turnover
11/3/2016
SMMEs and 30 CBOs

• Over time beneficiaries:
• Commitment to the program wanes with the need for extensive follow-ups /
reminders from the PSDP Team.
• Some companies do not respond to written or telephone correspondence
from consultants
• Do not readily share pertinent company information with the PSDP or
consultants. This is due mostly to the fact that PSDP beneficiaries a family
owned and are therefore averse to bringing insiders into their business.
• The following was observed of manufacturers:
• SMMES incurred high costs on internationally sourced materials despite being
able to source locally.
• Machinery equipment supply and maintenance are a challenge as they are
sourced internationally and there is no local technical back up support and or
parts.
• Plant layout, material flow and housekeeping are persistently poor.
• Issues of record keeping and costing in most enterprises are evident
11/3/2016
SMMEs and 30 CBOs

Mid-Term Review Observations and Lessons
Learned
•Segment the population of beneficiaries to better
serve their needs
•Adapt experts/audit teams to size and complexity
• Prepare dissemination of best practices and
success stories
11/3/2016
SMMEs and 30 CBOs

Objectives
• Establish Business Botswana as an apex body of all sector associations
• Capacity building of BITC
• Capacity building for BOBS on Quality and Certification
11/3/2016
PSDP Result Area 2: Capacity Building and
Sensitization of SMMEs, CBOs, IOs and BDSPs

Business Botswana As an Apex Body
• New constitution established and Adopted
• Newly designed, established and adopted financial membership
model
• Business Botswana representative capacitated in Europe by the
Belgium and the Paris Chamber of Commerce on the following:
• chamber establishment and management
• implementation of association charters
• Entrepreneurship services including specific women focused services
• Identified a senior expert to assist with transition of Business
Botswana to an apex body.
11/3/2016

Capacity Building of BITC
• BITC Export Development Program: assisted BITC on Export
Development and Promotion and assisted BECI on credit insurance
• BITC sector approach assistance: analyzed the BITC strategic Plan and
elaborated an action plan to implement 2 priority sectors (ICT and
industrial minerals) with the view to attract potential partners /
investors
• Staff missions:
• Geneva, Switzerland based International Trade Development training
• Export and Investment Promotion training
11/3/2016

Capacity Building of BOBS
• BOBS ISO 22000 Training: BOBS regulatory section staff were taken
through ISO 22000 training on compulsory food standards. An
Examination was administered and all participants passed and
received certificates.
11/3/2016

Intermediary Organization Observations and Lessons Learned
• Difficulties understanding CDE-PSDP procurement and payment processes:
• preparation
• Implementation
• payment
• Difficulties securing high level management for strategic collaborative meetings
11/3/2016
PSDP Lessons Learned and Observations

Intermediary Organization Observations
and Lessons Learned
•Focus on a limited number of core institutions
•Ensure that IOs have built-in incentives
•Ensure that private sector institutions are duly
represented
11/3/2016
Mid-Term Review Lessons Learned and
Observations

Activities
• Capacity building on trade and specific negotiation skills
• Development of the micro finance policy framework
• Develop and implement an innovative trade finance scheme for
SMMEs to provide access to finance solutions
• Improve Business Environment
11/3/2016
PSDP Result Area 3: Creating an Enabling
Environment for Enterprise Development

Capacity building on trade and specific
negotiation skills Conducted
• Trade in Services Statistics: Reviewed key trade in services principles;
data collection; BOP classification
• Trade in Services: Reviewed GATS scheduling; Horizontal Approaches:
Domestic Regulation; Competition Policy; E-commerce; Subsidies
Safeguard rules, etc.
• Trade in Services in general with focus on tourism and transport
• Competition rules training on how to develop common competition
negotiation positions and how to implement cross-border agreements
• Negotiation skills training especially for the private sector and
conducting awareness workshops on skills needed in developing
negotiation positions
11/3/2016

Micro Finance Policy Framework
• A micro finance policy framework has been developed and submitted
(June 2014) to the relevant stakeholders for presentation to the
parliament.
• A Micro Finance Act to be developed.
• Terms of reference for recruitment of an expert to assist with the
drafting of the Act have been developed and approved.
• During the February 2015 MC meeting, it was recommended that the
PSDP not pursue any further action regarding micro finance activities.
11/3/2016

Develop and implement an innovative trade finance scheme for SMMEs
to provide access to finance solutions
• Facilitated discussions between European Investment Bank (EIB) and
BancABC
• Reviewed Registration and Tax Compliance laws
• Reviewed of Labor Laws and recommend labor productivity
improvement strategies
• EIB signed a Euro 25 million loan agreement with Bank ABC to run the
finance facility for local SMEs.
11/3/2016

Mid-Term Review Lessons Learned and
Observations
•Consider the relevance and effectiveness of the
component
11/3/2016

Objective
• Recruitment of a service provider for the design of PSDP Monitoring
and Evaluation (M&E) System
• Design and implement PSDP Communication and Visibility Plan
11/3/2016
Component 4: Monitoring & Evaluation and
Visibility

• Service provider recruited in June 2014 to develop and maintain the
M&E System and portal.
• The Web portal is live and is updated regularly
• Trained Business Botswana staff on the maintenance of the M&E
system
• Portal is housed on Business Botswana premises
• Internal M&E evaluation on-going via templates developed by M&E
experts.
11/3/2016
Component 4: Program Management and
Visibility

Communication and Visibility
• Trained Business Botswana and PSDP partners on leveraging C&V
• Communication and Visibility plan approved.
• PSDP Newsletter produced
• Four (4) press releases of major events completed.
• Radio interview of PSDP team on Gabs FM.
• CNBC Africa interview of two (2) PSDP experts
• 14 PSDP article published in Sunday Standard to date including various
program sectorial interventions (construction, tourism, ICT, and
manufacturing) and Women Entrepreneurship Development
programme.
11/3/2016
Component 4: Program Management and
Visibility

Country wide selection of women
entrepreneurs in:
• Leather (2)
• Tourism (5)
• Agro – industries (12)
• Manufacturing (7)
• Textile-Fashion-Design (7)
Very passionate and interesting group
of individuals forming support
structures for each other
WED is part of Private Sector
Development Programme (PSDP)
Botswana
11/3/2016
Women Entrepreneurial Development (WED)
supported by Chanel Corporate Foundation

Implementation Progress-Completed Activities (SMME Diagnosis and Grouped Assistance)
Project/Activity Date Status Outputs
SMMEs Diagnosis January 2014-May 2014  30 SMME audits
completed by BITC in
collaboration with selected
staff from other IOs
(BNPC, HATAB,
BOCCIM, BIDPA)
Activity completed with 30 audit
reports including
recommendations per company
Business Management Training
for WED
July 2014-September 2014  30 SMMEs participated in
one week training on
Business management
 The training modules
covered; Business
management foundation
skills, supervisory concept
and skills, accounting and
finance, marketing and
sales
The activity has been completed
and report produced. The seminar
largely met the expectations of
the participants as indicated in
the rating by participants (98%)
Business Planning October 2014-November 2014  About 30 SMMES
participated in one week
training on Business
Planning
 The training modules
covered; marketing
strategy, risk analysis and
sales forecast, funding
requirements and financial
forecasts
The activity has been completed
and a report with
recommendations for top
performers produced. From the
participants, 10 Business plans
are to be finalised and submitted
to Financial Institutions for
funding.
11/3/2016

Implementation Progress-Completed Activities (Individual Coaching in Agro-Industries)
The below tasks and outputs were produced:
• Review of production sequences and equipment, as well as
the finalization of production parameters in order to
automate and increase production.
• Testing of new products with the public and potential
customers was done to gauge customer response to a
product.
• Product costing and break- even analysis was also
undertaken in order to understand the current situation
and enable beneficiary business owners to work out a
pricing strategy based on true figures.
• The companies were also introduced to food safety
management
• Energy saving devices in food production were also
recommended in order to streamline production processes
and maximize energy efficiency.
• With regards crop production, better pest management
was introduced to enable more crops being brought to the
market.
• Revamping of their website and development of
promotional tools for effective marketing.
11/3/2016

Implementation Progress-Completed Activities (Individual Coaching in Tourism)
The below tasks and outputs were produced:
• Change in communication output from traditional to
development of online social media tools (trip advisor,
booking.com, google maps)
• Communication strategy developed
• Quality check for improving the grading developed
• Action list developed for the companies to implement the
recommendations
• Creation of a Facebook company page and twitter profile
• Facilitation of employment by Linkages with University/Vocational
Training Institutions
11/3/2016

Turnaround
strategy
January 2015-December
2015
 BNPC to implement
interventions on 30
audited SMMEs
 Profiling of the 30
companies and
interim report
prepared
The work started in January 2015 and the inception report has
been submitted. 8 companies have been identified for the
Turnaround strategy, while 15 are being for hybrid services
including record keeping and costing. Furthermore 7
remaining companies are recommended for stabilisation and
consolidation.
Linkage to
Finance
April 2015-
December2015
 Business plans under
preparation, to be
submitted to financial
institutions for
funding
10 SMMEs benefiting from the intervention
Business plans expected to be submitted to Financial
Institutions for funding
Cleaning and set up of accounts for SMMEs
Fashion and
Design Expert
April 2015-March 2016  The consultant will
assist with Product
techniques, marketing
and sales
7 SMMEs under the textile sector to be assisted for improving
their competitiveness
The second mission expected in mid November 2015
Jewellery Expert April 2015-March 2016  The consultant will
assist with products
design and
assessment of the
profile of potential
clients, assistance on
marketing (branding
and packaging).
Companies still working on the action plan recommended by
the consultant.
Partnership agreement signed between Oodi Colle of Applied
Arts and Technology-OCAAT (Botswana) and BJO Formation
(France). The Project will support 2 students and 2 lecturers
per year.
OCAAT has finalized the selection of 2 students undergoing a 2
weeks training at BJO Formation on Jewelry making.
Implementation Progress-Ongoing Activities
11/3/2016

WED Leather
Expert
Objectives
To provide
individual coaching
and mentoring to
2 SMMEs in the
Leather sector
with the view to
improve their
competitiveness
and markets.
Service Provider
Atelier Du Sartel
(France)
January 2015-
February 2016
Tasks
 Assessment of the
present design and
products hand in hand
with the business
owner (normally they
are designers and
producers at the same
time).
Status
Contract extended to
February 2016. Awaiting
dates of the second mission.
Outputs
Companies still working on the action plan recommended by the consultant.
Furthermore, a benchmarking mission is expected for Lebang Setso, where the
manager will get training from the consultant in Paris.
Leather SME factory
WED Training
Missions (Leather
sector , students
exchange in
Jewelry sector)
September 2015-
December 2015
Tasks
a. Benchmarking
Mission for Lebang
Setso:
b. Training for 2
students from OCAAT
Outputs
-Mission report with recommendations for Lebang Setso produced.
-Networks for essential leather contacts in Paris prepared.
 Participation at the CHANEL Corporate Foundation seminar
- Training on knowledge management
- Presentation of Lebang Setso and WED programme status
- Networking
 Skills transfer and field visits to leather workshops
- Meeting with Leather manufacturing professionals to acquire skills
- Visit to Leather design studios
- Visit to leather sampling studios
- Visit to Leather design school
Implementation Progress-Ongoing Activities
11/3/2016

Foreseen activities
03/11/2016
• Standardization and certification
of products and services
(Botswana Bureau of
Standards)
• Set up of accounting systems
• Support to WIBA (Botswana
Women in Business
Association)
• Social and business networking
(March 2016)
• Benchmarking missions for
Textile companies

Consultant / Expert Observations and Lessons Learned
• Difficulties securing appropriate consultants
• General lack of local knowledge and or cultural challenges for international
consultants
• Lack of sector knowledge and reporting from local experts
• Some reporting does not meet CDE-PSDP expectations and requires
improvements
11/3/2016

Coordinating Unit Observations and Lessons Learned
• Burdensome administrative procedures and processes leaving little time for
operational issues - assessment of interventions and reports and follow up of
actions, etc...
• PSDP strongly collaborated with BB, BITC, BNPC, BTO, HATAB, CEDA, BIH and
BIDPA
• Collaborative efforts between the Program, LEA and BEMA is paramount
• Implementation of some of the value chains can be implemented by IOs
11/3/2016

• There is great satisfaction with the PSDP interventions.
• Clear lines of responsibility for implementation. Also implementation must form
part of each activity.
• Policy issues should be pushed by BB and there should be more contact with MTI.
• SME Diagnostics by Service Providers:
• Accessibility challenges for SMMEs in remote areas (consider taking advantage
of technology).
• Gaps in keeping contact post-intervention
• Time for audits too long
11/3/2016

• SMME Beneficiaries:
• Intervention impacted positively on SMMEs (increased revenue, employment
etc.)
• Prospect of investor confidence
• Time spent on interventions too short
• Time taken between audit and intervention too long.
• Some SMMEs thought intervention involved financial assistance and would
prefer such assistance in future
• More marketing of PSDP through Radio, Daily News etc.
• Avoid duplication of efforts with projects already being undertaken by
contracted Service Providers
11/3/2016

•PSDP beneficiaries have expressed deep gratitude for the interventions
that been made do date.
•A number of beneficiaries have seen positive improvements in their
business. Some are reporting:
•Increased turnover and profitability
•Employment of more personnel
•While others have gained confidence in running their businesses.
•In addition, entrepreneurs are hopeful that more time be allocated to
handholding support towards growth as they expand their operations.
They are willing to consider contributing financially to the abovementioned
support.
11/3/2016

Focus Areas
•Refocus the activities to increase potential impact:
•SMMEs and Value Chains opportunities
•Business Botswana and BITC must leverage BNPC
sector expertise
•No more Business environment (under the same
project)
11/3/2016
Mid-Term Review Recommendations

Improved SMME Support (Continued)
• Ensure adequate support to identified SMMEs to better address their
needs:
• TOR for each SMME to be supported further
• Consider charging a cost sharing fee or contribution to local costs to
beneficiaries
• Create workshops for beneficiaries leading to business clubs
• Organize sector workshops further to VCs including sector associations or
leading to Sector association build up
• Build on promising VC starting with pilot projects
11/3/2016

Governance (Continued)
• Improve PSDP Governance and Management to facilitate project
activities:
• Advance Progress report
• Prepare a «yearly» plan (including exit strategy and related activities)
• Consider need for PSDP extension, budget? Executing Agency?
• Improve M&E
• Prepare and plan for CDE closure, meanwhile reduce administrative delays
through CDE SA-RFO empowerment
11/3/2016

Exit Strategy (Continued)
• Prepare an EXIT STRATEGY to strengthen potential sustainability and
not lose capacity:
• Design and plan the exit strategy in conjunction with identified IOs
• Support IOs Action Plans in this regard
• Continue supporting Business Botswana as the private sector APEX
Institution to take over responsibility for:
• SMME support through business audit training (Private BDS)
• Promising VC sectors support via Sector associations build up (with BNPC
sector expertise) based on initial Pilot projects.
11/3/2016

PSDP Accomplishment
• As of November 2015 the PSDP has implemented 1,618,833 Mil Euro toward the
recruitment of 29 consultant, both local and international, to assist beneficiaries
in the Agro-Industry, Construction and Public Works, ICT, Manufacturing, Textiles
and Tourism sectors.
• To date the Program has assisted 63 beneficiaries by ameliorating their potential
in playing a larger role in the economy of Botswana via IO collaborative initiatives,
where possible; with the majority of the funds directed to local service providers.
11/3/2016

SMME Observation (Risk Mitigation)
• The overall observation regarding PSDP beneficiaries is that beneficiaries are
generally at an early development stage challenged with basic needs stemming
from the fact that business owners do not have the requisite ground level
business skills – financial and business management basics.
• Without business or finance qualifications many PSDP business owners are
further challenged with risk mitigation resulting in the inability to take calculated
risks towards growth.
• A business strategy is possible only if the business owner / promoter understands
how to mitigate risk. This is why the majority of the existing business plans /
strategies are produced by external consultants to secure funding; however, in
most cases management is not intimate with the details leading to poor
performance and or bankruptcy.
11/3/2016

Adverse effect of Government Initiatives
• Government developed several initiatives in support of SMMEs. However, it
created dependencies within the private sector affecting in-house growth and
innovation.
• Business owners are able to come up with a business idea without the
knowhow to bring it to life. There is no proactive mentoring to assist SMMEs /
SMEs that have had funding approved. Known instances of mentoring have
only been initiated once beneficiaries are in danger of financial collapse; if at
all, perpetuating treatment of the symptoms instead of the condition.
• In summation, few PSDP SMMEs have the competency to draft a comprehensive
business strategy and management to effectively drive it.
• This explains the lack of innovation towards new markets, segments and or new
products and services development.
11/3/2016

Market Conditions & Quality Management Systems
• Despite their relative challenges some organizations have been able to realize:
• Significant revenue growth without quality controls, ISO certification
guaranteeing quality products and or services.
• This phenomena is directly due to the commensurate level of Botswana
consumers. The consumer market has been developing relatively at the same
pace as SMMEs and SMEs
• However, it has been observed that consumers becoming more aware of
other their purchasing power via access to regional and international
markets. The more informed consumer market is steadily applying
pressure on local businesses towards much needed quality controls (ISO
certification) introducing and or increasing competitiveness.
• The African, Caribbean and Pacific group of states - European Union Technical
Barriers to Trade (ACP-EU TBT) Program slated to produce a National Quality
Policy and strengthen Botswana's Quality Infrastructure(QI) towards
compliance with the World Trade Organization (WTO) / TBT requirements is
appropriately timed to meet the growing demands of a more educated
consumer.
11/3/2016

Beneficiary Perseverance & Quality Management Systems
• HiPos were mentored by European service providers. The PSDP has been pleased
with the consultant's competencies who assisted beneficiaries with the same
work ethic as those from their home countries. The beneficiaries were well
versed in exploiting the recommendations provided by European and local service
providers.
11/3/2016

Conclusion
Overall the CU has been fully operational and adapting to the needs of the
beneficiaries while guiding service providers to ensure beneficiary impact; and,
extracting the associated lessons learned. It is however recommended that future
programs of this nature must have a post loan support component to ensure the
continued and increased participation of SMMEs in the local economy.
11/3/2016

Thapelo L. Lippe
Program Coordinator
Email: Thapelo.Lippe@TheRightsourcePractice.com
Nnyaladzi Malaki Monyamane
Program Assistant
Email: Nnyaladzi.monyamane@cde.int
Geographical Address:
CDE Regional Office for Southern Africa
Plot 54351, Exponential Building
Central Business District (CBD)
Gaborone, Botswana
Tel. +267 3191230
Fax. +267 3191271
Web: http://www.cde.int
60
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Botswana Private Sector Development

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