38. At its core, the Botswana Excellence Strategy recognises the need for all of us to adopt a more outward looking mindset that is conducive to accelerated private sector development. In this respect existing and potential investors can be assured of this Government's steadfast commitment to an open society with an open economy in which all who can make a positive contribution are encouraged to do so. In pursuing investment, more especially outside investment, our country will continue to market its comparative advantages, which include our:

• Political and macro-economic stability, with a record of economic growth based on prudent management;
• Relatively educated, adaptable workforce;
• Low rate of taxation when compared to many countries;
• Absence of exchange controls; and
• Superior sovereign credit ratings; along with
• Stable banking institutions that ensure adequate financial resources to cope with exogenous shocks to the economy.

39. We, also recognise the existence of deterrents to investment. Inhibitors such as complexities in the tax code, shortage of industry relevant skills and poor labour productivity can and must be overcome as a matter of urgency. In addition to continued reform of the public service, this calls for a further commitment to the promotion of technological innovation, skills training, and a reduction in barriers to starting up and growing businesses. We are currently working on reviewing our tax regime as well, to make it more simple and relevant. Any new regime we put in place will commence in the next tax year.

40. During my tenure of office employment creation will be driven by the following:

• the six hubs;
• Foreign Direct Investment focusing on mining, tourism, agriculture and manufacturing sectors amongst others;
• import substitution;
• broadening the tourism and agricultural base;
• local procurement preference;
• government schemes such as CEDA, Youth Development Fund and Young Farmers Fund will be given additional resources;
• Construction; and
• Information Technology.

117. Technology: Madam Speaker, our ability to embrace new technologies will be a central determinant of our collective capacity to transform the economy toward an innovative, private sector led diversified growth. To enhance delivery in the areas of science, research and Information and Communication Technology (ICT), Cabinet portfolios have been restructured through the creation of two new dedicated Ministries Infrastructure, Science and Technology and Transport and Communications.

118. It is our vision that Botswana will become a nation in which most of our citizens are engaged in knowledge based jobs. In keeping with this vision, we have been establishing an Innovation Hub as a commercial nexus for knowledge creation and innovation. The Hub will cater for ICT and Research and Development companies serving the local and international market. In the context of the financial constraints brought by the global recession, the project is being restructured to give it a corporate character better capable of attracting private equity.

119. In order to efficiently and effectively deliver public services to the people, Government has embarked upon the automation and integration of processes through the e-Government programme. The first major deliverable of e-government is the portal, a single window for accessing online government information, which has been developed and is undergoing testing. The next stage is automation and integration of services, which will start in the next financial year.

120. More broadly, ICT will play a key role in the attainment of Botswana development goals through the creation of conditions and incentives for provision of the widest possible access to ICT, particularly for rural and underserved areas. The Trans-Kalahari fibre optic project that was completed last year will ensure that superior telecommunications infrastructure reaches our major towns and villages, while also provide for Botswanas international connectivity through the neighbouring countries. It is now anticipated that, beginning from next year, Botswana will benefit from being linked to five major cable projects. 
 

For the full address, >>> State of Nation Address