#TCI2019 Break - out sessions: Presentation Republic of Botswana
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Finance and knowledge intensive business services, Republic of Botswana by Nomakhosi Mookodi
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#TCI2019 Break - out sessions: Presentation Republic of Botswana
- 1. I B S F & K FINANCE AND KNOWLEDGE INTENSIVE BUSINESS SERVICES REPUBLIC OF BOTSWANA REPUBLIC OF BOTSWANA 1
- 3. 3 Corporate clients Knowledge intensive services National International Advisory services Law firms Banks Insurance cos Accounting Corporate training Real estate IT services Others Key supplies Specialised human capital Data Analytics Government Regulators Legal system Infrastructure (physical, IT) Lifestyle ammenities International schools Hospitals Leisure Security HK development Universities Specialised training institutions Associations, specialised media, trade fairs
- 4. 830 hours of intensive work with corporates 95 active companies Private sector contribution to date estimated at: USD300 000 8 months Short, medium & long term 4 Action 2 Action 3 Action X … Guiding the strategy Launching of the actions Identifying the challenges Action 1 Implementation of actions 3rd PUBLIC PRESENTATION
- 5. Services provided according to a client’s general requirement, far from their core business and without added value other than the timely provision of the service and its quality 5 General services • Low entry barriers • High competition from all over the world (based on costs) • Clients pressure heavily on price It is a volume business where, in order to be successful, you need to be very big and cost efficient
- 6. Services that provide complex solutions to needs that are close to the client's core business 6 • High entry barriers (knowledge and experience) • Global competition but based on innovation & specialisation • Clients are more interested in buidling partneships with suppliers More attractive innovation-driven business Specialised services
- 7. To become the specialised F&KIBS hub in Africa in 3 stages: 1st attract FDI to sophisticate demand in the market 2nd export F&KIBs to Southern and rest of Africa taking advantage of sector-specific expertise 3rd service English-speaking European markets in their same time zone 7
- 8. 8 Specialised Skills Development of Specialised Services Public coordination Targeted Entrepreneurial Development AREAS OF IMPROVEMENT
- 9. 9 Legal-tech, fin-tech, ICT enabling technologies, specialized services with regional focus. HUMAN RESOURCE MANAGEMENT TECHNOLOGY R+D F&KIBS Cluster Value Chain BEEF Cluster Value Chain TOURISM Cluster Value Chain BITC´s Targeted FDI for cluster development Need for targeted FDI Agro-tech (i.e. specialised forage development); Specialized marketing ( grass-fed niche markets); logistic ( grass-fed logistics operation efficiency ); water management. Agro-tech ( i.e. development of local goods and services with hydroponics) , clean tech (i.e. energies and IT infrastructure for camps) , environmental protection (i.e. conservation of species) -Research centres -Innovation Centres -Development Centres -Excellence Centres -Specialized training institutions Prioritized partnerships Cross-cluster project bank
- 10. 10 How are we making it posible? Action 2 Action 3 Action X … Action 1
- 11. 11 REA LEBOGA
Editor's Notes
- Intro – Nomakhosi Mookodi – Botswana – Botswana Investment and Trade Centre Botswana Country in Southern Africa – just above South Africa The size of France – with a population of about 2.3 million Country has a GDP Per Capita Income of about USD 7800 – one of the highest in Africa In 2012 Professor Porter & Ketels carried out a study in Botswana and identified Financial services as one of the emerging new fields that could be explored Doing good macroeconomically – need to improve microeconomically Started working on this February, 2018 – realised there are two main businesses in Financial Services ( Retail Financial Services and Corporate Financial Services) Decided to focus on Corporate Financial Services however, there was no critical mass Took out a zoom out approach – considered other business services All this work was initiated by the National Strategy Office supported by the Ministry of Finance and Economic Development, the Ministry of Investment, Trade and Industry as well as Botswana Investment & Trade Centre. A core team was established with representatives from all these organisation
- Started working with the private sector New way of doing things However, they took so much ownership – these are the logos of those companies e.g. Deloitte Botswana
- Graphic representation of all the different knowledge intensive business services that corporate clients require, as well as the other stakeholders that are also involved in the business.
- We used a CRI Methodology and also underwent training from the European Foundation for Cluster Excellence Quantified the work and private sector contribution;
- General Services - Volume business where, in order to be successful, you need to be very big and cost efficient. Govt. has been looking to use services as means of employment creation and as a way to diversify the economy Reality is as a country of only 2 million people we just don’t have the volume to be successful in this business – relative to countries such as India with a population of about a billion people – one call centre is India could possibly employ all the unemployed people in Botswana
- Are there other ways of competing in this industry? Yes We identified through global trends studies that if Botswana was to integrate innovation into already existing industries that it has a comparative advantage in then the country could develop specialized services that could gainfully employ its people and meaningfully diversify its economy For example in Botswana we have very strong diamond companies and infrastructure companies if we develop very strong specializations in these companies we can compete favorably in the region and maybe even in the rest of Africa and the rest of the world.
- Strategic proposal – validated with the private sector The opportunity that we have identified – is to become the specialised F&KIBS hub for Africa in these 3 different phases: 1st. Attract FDI to sophisticate demand (as well as complete supply) in our market 2nd. Export KIBS to Southern and the rest of Africa, leveraging our sector-specific expertise, and 3rd Eventually service markets in Europe in the same time-zone.
- In order to move from where we are today (in general services) to where we want to get to, we need to work on a number of areas of improvement that were developed together with the public sector. 1. Get together with existing demand so that existing companies can start designing some of these new specialised services 2. Improve both soft (innovation) and hard (for example KETs) skills within these companies – this can be done by training the skills inhouse or importing the relevant skills 3. Encourage the development of targeted entrepreneurship 4. Public Coordination – map issues related to the cluster – develop roadmap to address these issues – establish new objectives
- As BITC we have just recently been able to incorporate the cluster approach into the organisations strategy in an effort to improve targeted FDI attraction strategies to support the F&KIBS cluster. We are looking to; Redefine the value proposition of the country and sectors through integrating F&KIBS into it Develop a project bank for F&KIBS that will help us to better attract relevant companies into the cluster Prioritise partnerships with relevant domestic and international stakeholders such that the strategic vision of the cluster maybe met.
- BITC´s plan is to ensure the sustainability of the cluster by adding the action lines to the strategic planning of the institution and thus make sure that things happen.
- In early November last year we presented to the President and to his Economic Committee of Cabinet. The companies lead the presentations, they told the President and his Cabinet what they would be working on in order to achieve the objectives of this cluster as well as re emphasized the role that they need GVT to play.