Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies

The document analyzes Botswana's approach to increasing local procurement in mining through the Economic Diversification Drive. It identifies a disconnect where demand-side preferences lack enforcement, leaving local procurement dependent on supply-side initiatives. While programs like the Private Sector Development Programme (PSDP) exist, the study finds they often provide reactive support for financial crises rather than proactive management mentoring, suggesting a misalignment between policy priorities and the basic skill needs of small, micro and medium enterprises (SMMEs).

• Botswana's demand-side procurement policies lack strong enforcement mechanisms, making the success of local procurement heavily reliant on supply-side initiatives. While the Mines and Minerals Act requires preference for local goods and services, this is limited by caveats that allow procurement to be bypassed if it is deemed inconsistent with "safety, efficiency and economy."
• There is a misalignment between the priorities of supplier development programs and the actual needs of local businesses. Many small, micro and medium enterprises (SMMEs) lack basic management skills and business strategy capacity, leading to financial instability that requires urgent, reactive support rather than the proactive mentoring needed for long-term growth.
• The definition of "local" procurement for goods in Botswana is based on a value-added criterion ("made in Botswana"), but it lacks specificity regarding the exact amount of value added required. Furthermore, it does not require local participation, which may allow foreign companies to manufacture in-country without improving skills for Botswana citizens.
• Botswana has implemented several supply-side initiatives, including the Private Sector Development Programme (PSDP) launched in 2013 to support SMMEs and community-based organizations in manufacturing, tourism, construction, and ICT. Other mechanisms include a membership database maintained by the Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) and the Chamber of Mines' Business Development Initiative launched in 2014.

APA

Nickerson, E., & Geipel, J. (2018). Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-botswana-upstream-linkages.pdf

Chicago

Nickerson, Emily, and Jeff Geipel. Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-botswana-upstream-linkages.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Geipel |first2=Jeff |title=Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-botswana-upstream-linkages.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2018botswana, author = {Nickerson, Emily and Geipel, Jeff}, title = {{Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-botswana-upstream-linkages.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }