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

This case study examines Botswana's approach to increasing local procurement in the mining industry, focusing on the alignment between demand-side preferential treatment and supply-side supplier development programs.

• Botswana utilizes a combination of demand-side and supply-side policies under the Economic Diversification Drive (EDD) to increase mining local procurement. Demand-side policies provide preferential treatment for local goods and services, while supply-side policies focus on supplier development programs.
• The definition of 'local' procurement for goods is based on a value-added criterion of being 'made in Botswana,' but the document notes a lack of specificity regarding the exact amount of value added required for preference. For services, preference is based on geography and ownership, specifically agencies located in and owned by Botswana citizens or those established under the Companies Act.
• The Mines and Minerals Act requires mineral concession holders to prefer materials, products, and services from Botswana, but this obligation is limited by caveats requiring procurement to be consistent with 'safety, efficiency and economy.' The case study concludes that these demand-side requirements lack 'teeth,' making local procurement success heavily dependent on supply-side actions.
• The Private Sector Development Programme (PSDP), launched in 2013, supports SMMEs and CBOs in manufacturing, tourism, construction and public works, and ICT. However, reviews indicate a misalignment in priorities: while the program focuses on capacity and finance, many SMMEs lack basic management skills and business strategy capacity, leading to some cases of near financial collapse.
• Several initiatives exist to track and coordinate local capacity, including a membership database maintained by the Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) and the Business Development Initiative launched by the Chamber of Mines in 2014 to coordinate the purchasing power of mining companies.

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} }