BOTSWANA faces challenges which must be addressed with increased vigor at every stage. These challenges lie in identifying sources of new growth through economic diversification, improvements in productivity and international competitiveness. The greatest challenge lies in ensuring that the benefits of development are spread widely throughout the country and that the quality of life for Botswana continues to improve in a sustainable manner. Since 1991 investment in education and training has firmed up at 22 percent of the national budget in order to ensure the development of the human resource, i.e., the most valuable resource. The country has just received with acclaim the Report of the Education Commission on Education with far reaching reforms for a responsive education system.

The collapse of apartheid in South Africa and the inauguration of the democratic government and the democratization processes in other countries in the region bring hope for a brighter future in Southern Africa both in terms of political stability and economic integration. These developments and Botswana's accession to the General Agreement on Tariffs and Trade (GATT) offer opportunities and challenges to Botswana's trading scope. In order to meet these challenges Botswana has to exploit and develop its competitive advantages and diversify its economic base. Recently, the third Francistown private sector conference debated issues for Botswana to develop a competitive edge internationally and regionally.

Botswana has the advantage of substantial foreign exchange reserves, its central location in Southern Africa, a commitment to prudent management of the economy with a constant endeavor to ensure the planning priorities are met. A better-than-anticipated performance in the diamond market during 1993 has largely contributed to a favorable out-turn and a healthy balance of payments position. A further advantage for the country is its natural beauty and abundant wildlife which enhance an attractive tourism industry.

Botswana as a country has considerable potential in all forms of investment including tourism, wildlife manufacturing, financial services etc. In developing such resources, government has to provide both an enabling and supportive environment in the form of physical infrastructure, investment incentives, liberal foreign exchange regime, minimal legislative procedures etc. The challenge facing the private sector, therefore, is to take advantage of the conducive climate and transform sectoral opportunities into realistic ventures.

This edition of Botswana Review of Commerce and Industry provides reference to strategies and policies designed to facilitate local and foreign investment.

The 1994/95 financial year marks a mid-way station of the National Development Plan (NDP) 7, 1991-97. Much more needs to be achieved in order to meet the aspirations of the people of Botswana in terms of employment opportunities and improved standard of living during the remaining part of the plan. With dedication, perseverance and faith in its national principles to democracy, development, self-reliance and unity, Botswana looks forward to the future with confidence.

Pula!

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