By Canisius Mushibwe
Botswana has put up a legal framework that prohibits foreigners from venturing into business meant for the locals.
The country is moving towards the enforcement of the Industrial Development Act of 2019 and its Regulations of 2020 to ring-fence business activities set for Botswana locals, offering punishment for any abrogation of the act.
This development is also in a bid to get foreign direct investment (FDI), amended in the Indigenisation Act.
The businesses protected under the Industrial Development Act are 21 in total, inclusive of crafts, confectionery, furniture, among others.
Botswana’s Minister Investment, Trade and Industry said in a statement on November 3rd that some of the businesses under the act also include wholesale, retail and filling stations.
However, Economists think this move may backfire against the country as what happened to Zimbabwe under President Robert Mugabe who enacted a similar law which the country ended up regretting and had to take the current president, Emmerson Mnangagwa to reverse it.
Zimbabwe’s reserved sectors for its citizens are similar to that of Botswana’s which include transport, sector, wholesale retail industry, advertising, hair salons, arts and crafts among others.
