Linking TPOs and NSBs for Export Success June 2011, Dar-es-Salaam, Tanzania

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1 1 P a g e Linking TPOs and NSBs for Export Success June 2011, Dar-es-Salaam, Tanzania The role, structure and scope of BEDIA The Botswana Export Development and Investment Authority (BEDIA), is an autonomous private sector led organization, setup by act of parliament in 1997 in order to encourage, promote and facilitate the establishment of export oriented enterprises and selected services which will result in economic diversification, rapid economic growth and creation of sustainable employment opportunities. The organization is also charged with the task of identifying market outlets for locally manufactured products and construct factory buildings for setting up manufacturing enterprises. BEDIA works very closely with government of Botswana to ensure that the country has a conducive investment climate. The organization is led by a board of Directors who are appointed and report directly to the Minister of Trade and Industry (MTI). They are charged with giving strategic direction, performance monitoring and ensuring prevalence of a sound ethical environment. The chief executive Officer leads a team of four directors namely, Business Development, Export Enterprise Development, Research and Innovation and Corporate Services. Functions The authority has been setup to provide the following services to manufacturing enterprises: - Construction of factory shells for lease - Identification of available investment opportunities - Acquisition of land for manufacturing enterprises for special projects - Facilitation on business registration, approvals in manufacturing licenses, residence and work permits, visas, infrastructural facilities such as water, electricity - Identification of market outlets for manufactured products, with a major strategic focus on seeking and promoting products that are suitable to enter export market - Participation of enterprises in regional and international exhibitions - Company assistance in product development and adaptation to meet buyers requirements - Conduction of market surveys, regionally and internationally based on research - Dissemination of packaged export promotion information to local enterprises Priority sectors By the year 2016, Botswana hopes to be classified as a developed economy that is built upon a sustainable, diversified and competitive export base. This achievement will be fulfilled through an implementation of the National Export Strategy (NES). BEDIA as the driver of the strategy aims to make Botswana globally competitive with a view to expanding current levels of exports and placing new ones in the international markets as well as diversifying the country s export base. The NES has put competitiveness strategies in place that will see Botswana in the global economic arena and an equal trade partner and beneficiary. Botswana s primary priority sectors, as identified by the National Export Strategy, but not of exclusive focus include the following: - Arts and Crafts - Garments and Textiles - Jewellery

2 2 P a g e - Diamonds and other mineral beneficiation - Glass and glass products - Leather and leather by products - Meat and Meat by products - ICT services - Pharmaceuticals The above country sectors are also targeted and promoted by BEDIA. The other non-sector specific services offered among others include, organising export trade missions, development of local manufacturers to reach export readiness standards, organising capacity building workshops and seminars on trade related subjects, etc. Strategic vision over the next 3 years BEDIA s strategic vision for the 5 year strategic plan is titled CLEAR BOLD DRIVEN AND EFFICIENT. It is a reflection of the Authority s commitment to approach all its strategic initiatives driven by the above. As a parastatal under the ministry of Trade and Industry tasked with export development and investment growth, BEDIA is fully aligned to the National Vision 2016 pillar of a prosperous productive and innovative nation whose key result areas include sustainable economic growth, well developed and reliable infrastructure and a sustainable environment. The Authority s five year plan is very clear on its strategic intent to grow both export and investment revenues by an annual 20% and 10% respectively and additionally to contribute through facilitation, stakeholder engagement and continued advocacy to the development of a conducive and competitive economic environment in the long term vision to contribute to a sustainable economic diversification plan for Botswana. Existing relationship with National Standard Body BEDIA as a Trade Promotion Agency adheres to international standards. The authority is ISO 9001 (Quality Management System) certified. This relationship with the standard body Botswana Bureau of Standards started initially with an application for certification. The organization s procedures and processes were analysed and as a result through the standard body, gap analysis reports gave birth to the establishment a quality system that would document, implement and maintain a quality management system to continually improve its effectiveness in accordance with the requirements of ISO 9001:2008 Quality Standard. Principal Constraints in linking with NSB The Botswana Bureau of Standards currently has a good working relationship with BEDIA. In fact, the authority has membership in the Certification Approval Committee (CAC), which is at national level. For instance, BOBS, in collaboration with BEDIA and the Centre for the Development of Enterprise (CDE), developed a pilot project to assist local manufacturing Small, Medium and Micro Enterprises (SMME s) in implementing ISO 9001: 2000 Quality Management System. The programme is expected to span for a period of three (3) years and it is hoped that each year 5-6 local manufacturing SMMEs will have implemented the Quality Management System in accordance with the requirements of ISO 9001:2000. At the end of the trial period, it is also hoped that a broad policy framework on quality improvement would be developed, addressing industry-wide issues.

3 3 P a g e The programme is co-financed by the Centre for the Development of Enterprise (CDE) in Brussels, the Swedish Agency for International Development (Sida), and the enterprises themselves. It shall impact growth of business and employment and increase the product and service quality according to customer s demands and the severe market competition today and for the future. The continual improvement of all business processes will reveal the export potentials. After months of adjustment of internal systems, training of staff and implementation of the Quality Management System, at least six companies have been accorded with BOBS ISO 9001: 2000 Quality Management System. Relationships with other organizations BEDIA as a leading investment promotion agency in the country has established partnerships with both government, private and international bodies. The Institutions which have synergies with the BEDIA mandate include among others: Botswana Exporters and Manufacturers Association (BEMA) The Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) The Southern Africa Competitiveness Hub USAID / UNDP Centre for the Development of Enterprise (CDE) Botswana Export Credit Insurance (BECI) Local Enterprise Authority (LEA) Citizen Entrepreneurial Development Agency (CEDA) Botswana Development Corporation (BDC) The Memorandum of Understandings (MOUs) signed with these stakeholder organizations are crucial in improving symbolic relations with regard to the national trade issues. The Potential Future relationships The relationship between BEDIA and BOBS will go a long way especially in the export readiness programmes offered to enterprises. The greatest problem experienced by many small companies in Botswana is the fact that there is very little knowledge of design and development of a management system which enables the companies to comply with the demands for quality products in Botswana and other markets It is hoped that through the standardization a broad policy framework on quality improvement would be developed, addressing industry-wide issues. It is in this framework that BEDIA can collaborate with BOBS to enable manufacturers to appreciate and embrace quality management in their business processes. In relation to Preparation and dissemination of information, packaged publications by both institutions can help to train representatives of the participating manufacturing entrepreneurs on quality concepts. The media used can help exporters on how to improve the quality of their products. Since BEDIA provides capacity building services in forms of workshops and seminars to enterprises, the value add of the incentives by both bodies can never be overestimated. Small to medium enterprises can benefit in understanding the provision of advisory services in implementing quality management systems and prepare participating industries in the programme for certification.

4 4 P a g e BOBS has designed a programme for Small and Medium sized Enterprises, in order to implement their Business Quality Management Systems, according to the international standard ISO 9001 (Quality management systems). This capacity building program also includes the training of Botswana consultants for the continuation of assisting the Botswana industrial and administrative sectors. It is co-financed by the Centre for the Development of Enterprise (CDE) in Brussels, the Swedish Agency for International Development (Sida), and the enterprises themselves. The programme shall impact growth of business and employment and increase the product and service quality according to customer's demands and the severe market competition today and for the future. The joint venture between BEDIA and BOBS on these programmes can sustain a long term quality management for enterprises to obtain and demonstrate compliance. Value Add to by BEDIA to BOBS Enterprises aftercare services which includes company profiling and selection for targeting the concerned sectors in the national export strategy is crucial to assist BOBS. Dealing with these enterprises from time to time, BEDIA has a better understanding of the technical needs assessed and recommend them for relevant training programmes for their quality management improvement. As a doormat to the country s economic diversification, BEDIA s export development programme which prepares locally manufactured products for export, will be needed to hand them over to BOBS for a specific market-driven programme, which in turn will enable enterprises to reap good results in terms of their product improvements, production, quality/standards control, export marketing and market entries. Employment of effective working relationship with BOBS As mentioned above, the Botswana Export Development and Investment Authority with Botswana Bureau of Standards do have a working cooperation. An improvement of the cooperation could be extended to a Memorandum of understanding (MOU) to join hands for quality improvement cause. The relationship can be formalized. This will not only enhance cooperation, but a joint effort to taking the country s locally manufactured goods and services to another level in quality. An improved export market will open a lot of doors for enterprises where quality assurance by a standard body has been effected. This will also help to keep companies that are new exporters to be active in foreign markets. On the other hand an increase in the number of quality improved and certified sectors is likely to increase exportable products. Benefits of BOBS/BEDIA cooperation to BEDIA, exporters and potential buyers/investors BEDIA will be able to establish a strengthened partnership for effective coordination in dealing with its assistance to enterprises. The authority would also be able to keep abreast of the latest developments in technical assistance, standards and regulations from BOBS and stream them down to all enterprises under specific improvement programmes. Companies that would have benefited from the training and conformity to international standards can then be able to easily and confidently export to any regional and international market through BEDIA s facilitation. Without doubt, production and product quality will tremendously enhance any enterprises export market by enrolling them in the programme.

5 5 P a g e Botswana thrives to attract foreign direct investment and promotes joint venture partnerships between locals and foreigners. In a case where most of the country s enterprises adhere to international standards and practices to enhance their products quality, potential buyers and these investors are most likely to trade and/or sign agreements with such companies. Access to the country s market will greatly improve and as a result, economic diversification efforts will bear fruit. Cooperation Endorsement and Resources Both BEDIA and BOBS report to the Ministry of Trade and Industry. Any endorsement of any cooperation can be signed by the two parties at the Executive level, that is, Chief Executive. Other resources pertaining to the establishment of the cooperation could be addressed by the National Committe on Trade Policy and Negotiations (NCTPN) under the auspices of the Ministry of Trade and Industry. Calvin Ketshabetswe Executive, Export Enterprise Development BEDIA