"Attracting Foreign Direct Investment (FDI) to Botswana : perspectives from management"

Abstract

This study focused on the avenues of making Botswana a competitive FDI destination. Utilizing a sample of 52 employees drawn from BEDIA, an organization that is charged with the responsibility to promote and facilitate investment as well as to develop and promote locally manufactured goods, it analyzed the level of knowledge of and satisfaction with existing policies, practices, and legal statutes for FDI attraction among those responsible for their administration and implementation. The study also assessed the success of the existing policies for attraction of FDI, the major challenges facing Botswana as a FDI destination, and the strengths and that the country can harness to attract more foreign investment. Data were analyzed utilizing the Statistical Package for the Social Sciences (SPSS). The results showed that those interviewed were characterized by low levels of acquaintance and satisfaction with existing policies, practices and legal statutes for the attraction of FDI. In addition, the study revealed that the current policies have not been very successful and Botswana is yet to attain the status of a leading FDI destination in the region, Africa and the world. Another major finding of the study was that Botswana is faced with a large number of internal weaknesses and external threats that challenge its ability to become a leading FDI destination. However, there also existed a large compliment of internal strengths and external opportunities that policy makers and implementers can harness to counter the adverse effects of these challenges Based on the findings of the study, it was concluded that, although FDI has been an immensely important factor in Botswana's unprecedented economic transformation over the past 42 years and must play an important role in achieving the ambitious growth and diversification objectives of Vision 2016, the country is yet to attain the ultimate status of a leading FDI destination. Despite the existence of elaborate policies, practices, and legal statutes, FDI entry is regressing and the future prospects of its attraction are not very encouraging. Furthermore, the lack of acquaintance and low levels of satisfaction with existing policies among those charged with the responsibility to manage FDI attraction remains a major impediment to the successful attraction of FDI to Botswana. To enhance

the status of Botswana in attracting FDI a large compliment of suggestions were offered by this study. For instance it was recommended that Government should harmonize all the policies, practices, and legal statutes that are pursued to promote FDI and institutions implementing the strategy should work together to avoid the current fragmentation of investment promotion activities. Similarly, it was felt that Government should establish an investment policy and promotion coordination committee to support and monitor systematic investment promotion by responsible agencies and ministries.