Amid Botswana’s heavy reliance on imports for more than 80 percent of textiles and clothing, Mbaakanyi sees a strategic opening to boost domestic production, catering to local needs while eyeing lucrative export markets. Highlighting the potential to diversify the economy and bolster foreign currency reserves, she advocates for a concerted push towards self-sufficiency in the textiles and clothing sector.
Mbaakanyi, a key figure in Botswana’s textile sector, serves as the Managing Director (MD) at iCarbon (Pty) Ltd. She believes that despite the textiles sector currently contributing less than 4 percent to Botswana’s Gross Domestic Product (GDP), there is room for optimism. Instead of despairing over this figure, Mbaakanyi sees it as a call to action for industry players to enhance the sector’s contribution to the GDP. Doing so, she argues, will not only bolster the manufacturing sector but also facilitate economic diversification away from mining.
The textiles and clothing sector was once the third leading export commodity, following Diamonds, Copper, and Nickel, boasting the highest employment figures of 10,529 workers, as per the Central Statistics Office (CSO) data from 2005-2006. Notably, a higher ratio of women and girls were employed compared to men in this sector.
The Textile and Clothing industry targeted export markets within the Southern African Development Community (SADC), notably South Africa, alongside other countries such as the United States (the AGOA market), Europe, Taiwan, and the UK. Export values to the AGOA market accounted for 6-7 percent of total exports between 2009 and 2011, while the sector contributed approximately 4 percent to the Gross Domestic Product (GDP) during that period. However, the onset of the recession in 2009 led to a decline in employment numbers within the industry.
In 2010-2011, the sector received assistance from a two-year Government subsidy Program known as the Special Support Programme (SSP), aimed at mitigating the impacts of the 2008 global economic downturn.
Furthermore, in 2010, when the Economic Diversification Drive (EDD) Strategy was launched, the textile and clothing sector was identified as one of the priority sectors. During the 4th meeting of the National Economic Diversification Council (NEDC) on February 21, 2013, the Council endorsed the establishment of a dedicated Botswana Textile and Clothing Association (in addition to the Botswana Exporters Manufacturers Association (BEMA), which represents various sector exporters including textiles and clothing) to serve as the implementing body for the EDD sector’s strategy. Subsequently, the Textile and Clothing Strategy, which was under development, received approval for implementation by the NEDC.
When BTCA was founded in July 2013, its primary objective was to foster the growth of a globally competitive and sustainable textile and clothing sector in Botswana. This initiative involved implementing the Textile and Clothing Strategy in partnership with the Ministry of Trade and Industry, which facilitated and supported the strategy’s development. The overarching goal of the strategy was to commercialise the sector fully and establish a profitable value chain capable of operating large manufacturing plants and exporting products worth millions of dollars.
The establishment of the BTCA also led to the synchronised development of small and medium-sized enterprises (SMMEs) and increased participation in the sector through the formation of strategic and viable linkages/consortiums to meet market demands. This initiative aimed to improve citizen economic empowerment and create jobs.
However, despite the sector’s significant contributions to the economy in the past, it has encountered serious challenges. Employment levels have dwindled to approximately 3,000 currently, as noted by Mbaakanyi.
She believes, however, that government intervention through the importation ban will resuscitate the sector. Additionally, she asserts that citizen economic empowerment efforts will also bolster growth.
Government issued the Statutory Instrument No. 76 of 2021 under the Control of Goods, Prices and Other Charges Act that was published on the 24th of August 2021.
It imposed restrictions on the importation of tunics, dresses, pinafores, shirts, skirts, pants, slacks, blouses, t-shirts, ties, scarf, hats, jerseys, and tracksuits for public or private pre-school, primary and secondary schools,” reads the statement in part. At the time, the government arm-twisted local retailers, who have for decades been importing these uniforms, into procuring locally manufactured uniforms. The government clearly stated that they wanted to economically empower citizen textile and clothing manufacturers.
Retailers, many of which are South African franchises, resisted the ban, going so far as to take the government to court. The legal battle escalated to the Court of Appeal, where the government ultimately prevailed.
For the government, the priority was to boost domestic consumption and instill confidence in locally made goods, with the ultimate goal of generating a surplus for export markets. Mbaakanyi shares this sentiment, acknowledging that while resistance initially cast a shadow of despair over the industry, there is now a sense of relief as major retailers begin to embrace the local textiles sector.
Mbaakanyi attributes the resistance to the local industry’s lack of advanced technology such as computer-coded designs, emphasising its early developmental stage and limited vertical integration. She defends the industry, citing the high cost of such technologies as a barrier, but suggests that initial support from retailers could have facilitated capacity building. “We could have been servicing the entire nation,” she reflects.
The Association has established a comprehensive database of schools across constituencies in Botswana. This initiative aims to catalog each school, including its student population and geographical location, for better organisation and strategic planning.
“At the same time, we identified textile operators who are close to those schools, so as to ensure that manufacturers supply schools within their vicinity so as to create efficiency,” she explains.
Further, the association signed MoUs with Village Development Committees (VDCs) and Parents Teachers Associations (PTAs) to identify textiles and clothing operators who are not members of the association and rope them in.
“So far, if we include non-members we total 150. For those who are not yet professional, we would design the uniforms. cut for them and allow them to only sew. We shall empower them until they are able to do everything independently,” she says.
Enter Debswana
Renowned for its substantial purchasing influence, Debswana, propelled by its ambitious Citizen Economic Empowerment Programme (CEEP), has ceased the importation of Personal Protective Equipment (PPE). Instead, it has opted to collaborate with local textile manufacturers for the procurement of these essential items.
“It’s a huge opportunity, which is being administered under the Tokafala Programme, a partnership between, Debswana and Anglo American and Government of Botswana,” she adds. Moreover, she notes that Debswana initially identified 34 enterprises in the textiles and clothing space, that were taken through the Tokafala programme and graduated. The number has now grown to 65 according to Mbaakanyi.
To enhance efficiency and ensure the smooth operation of the program, she explained that they have established two Joint Ventures to accommodate all 65 textile manufacturers. One Joint Venture comprises companies located in the northern region of Botswana, while the other encompasses those situated in the southern region.
“We did that deliberately so that only two JVs representing the textiles sector could be listed on the Debswana Ariba platform. After work is completed, we at the Association will pay our members based on the capacity of work they delivered,” she explains, saying they are expecting to start supplying Debswana by March this year.
According to Mbaakanyi, the partnership with Debswana will demonstrate to the market the capabilities of the local textiles industry. She adds that it will give the market confidence that indeed the local textiles industry is capable.
Corporate Wear
Diamond Trading Company has jumped on board, according to Mbaakanyi. Through the Association, Mbaakanyi says, they will manufacture corporate wear to banks, and many other corporates, which can unlock millions of Pula, looking at the amount of money spent by corporates importing clothing.
Growth Opportunities
Botswana’s textile industry has recently been struggling to penetrate the export market.
Since the inception of the African Growth Opportunities Act (AGOA), the textile industry has struggled to capitalise on the opportunity to enhance textile exports. Botswana, among 39 sub-Saharan African (SSA) nations poised to benefit from AGOA, has witnessed a decline in its exports to the US under AGOA to zero value since 2018, plummeting from a peak of over P300 million in 2007.
AGOA, a non-reciprocal unilateral trade preference program, grants duty-free access to the US for qualifying exports from eligible Sub-Saharan African countries. Extended by 10 years in 2015, it will run until 2025. Mbaakanyi acknowledges that the industry has indeed struggled to benefit from AGOA, attributing its biggest challenge to capacity limitations.
“Now that we have formed JVs to handle larger orders from Debswana, we are going to be able to meet the local demand and grow further. We will use the same model to feed the external market because their demand is bigger,” she explains.
She also says the same model will be used to penetrate the African Continental Free Trade Area (AfCFTA).
“We are also in talks with a certain tribe in Germany, for us to start supplying them with German Print clothing, which they consider their traditional wear,” she adds.
Collaboration
“We have already started collaborations with bigger companies like Premier Clothing which have both local and international accreditations and also have the capacity to meet larger demands,” Mbaakanyi states.
Furthermore, companies like Premier Clothing, which receive large orders, have begun outsourcing some of the work to smaller players within the Association through a process known as Cut, Make, and Train (CMT). According to Mbaakanyi, this involves smaller companies, lacking the capacity to create their own patterns, and being tasked with sewing clothing after Premier has completed the cutting process. She explains that this arrangement helps sustain and train smaller companies with less capacity.
According to Mbaakanyi, if the industry were to exclusively supply schools, mining companies, and corporates, while also tapping into fashion clothing to cater to retailers, this, in her view, could evolve into a multi-billion Pula industry.
