ANGLO AMERICAN CEO PREACHES DIVERSIFICATION Botswana needs some ingredients to drive the depth and breadth of its primary growth path to achieve a successful economic diversification beyond dependence on diamond mining. Anglo American plc chief executive officer and chairperson of De Beers Group, Mr Mark Cutifani said despite the growth, the country remained vulnerable to shifts in the global diamond market. He said on that basis, it was understandable that the leadership would like to make more progress towards having a more vibrant manufacturing, services and export economy. Giving a keynote address at the BOCCIM 13th National Business Conference in Maun, Mr Cutifani said Botswana had to think about some ways on how best it could leverage its enviable strengths to continue the growth trajectory established in the half-century since independence. He said one of ingredients that the country needed was to build off its natural resources, adding that there were few economies which had not begun their growth path outside mining and agricultural sectors and that most products in the world came from two sources, “If you cannot grow it, you have to mine it.” Mr Cutifani said Botswana was in a fortunate position to not only have the mineral endowment but, contrary to some other developing nations, to have used it well. “As you know, mineral resources are like any other natural resource; you can either use them well, or squander your endowment through short-sighted and inadequate policy frameworks and approaches. As ever, Anglo American was ready to partner with the government of Botswana in evaluating the economic viability of natural resource projects, across a range of commodities”, he added. He noted that diversification beyond extractives in general and diamonds in particular was crucial as proven resources would eventually deplete. Mr Cutifani also stressed the need to create opportunities through investments in infrastructure, noting that without infrastructure sustainable growth and a truly diversified economy cannot be achieved. He said the mining industry has to facilitate and build infrastructure that supports other industrial opportunities. Botswana, he said, had the opportunity to build off what mining had achieved so far to support a much broader strategy that ensured the country’s true connectivity to the world. Mr Cutifani said secondly, the country should have strong institutions and sound policy frameworks. He noted that modern public governance best practice indicates that progressive, consistent, transparent and business-friendly policy environments are needed for business and economies to flourish. He said the country must continue to strengthen its public institutions to develop standards and norms compatible with the most successful democracies in the world. Mr Cutifani said the need to support entrepreneurs and small enterprises are the future success stories that will drive Botswana’s economy forward. “As Anglo American, we are proud to partner with the government, Debswana, and De Beers through the Tokafala Enterprise Development initiative to promote and mentor small-scale start-ups in Botswana, and believe that more of such initiatives are needed for the country. Your institutions and sound policy environment place you ahead of the curve,” he said. Furthermore, Mr Cutifani said the country must develop and include the society in the growth plan. Botswana has been blessed in that the world’s greatest and most destructive sources of social divisions and strife ethnicity, religion, language and class have had relatively minimum impact on the country’s social fabric in the period since the country’s independence, he added. “It is certainly encouraging that democracy, development, dignity, discipline and delivery continue to be upheld as the country’s moral code through the 5D’s Roadmap. That is an essential ingredient to maintaining peace, the rule of law and stability in the country,” he said. (BOPA)
Posted on: Wed, 26 Nov 2014 03:50:05 +0000