Faculty of Commerce, Law and Management (ETDs)
Permanent URI for this communityhttps://hdl.handle.net/10539/37778
Browse
3 results
Search Results
Item Factors enabling copper beneficiation in Botswana(University of the Witwatersrand, Johannesburg, 2023) Coetzee, R. J.; Schaling, EricBotswana’s Kalahari copper belt (KCB), which extends into the North-West of Botswana, is a prospective zone that offers the opportunity for a large copper production sector to provide diversity and growth for mining in Botswana. Despite good quality orebodies with good grades, the disadvantage of long and expensive logistical routes has softened project financial returns in the past and hampered the development of new mines on the KCB. The Botswanan government identified the need to investigate the creation of in-country, downstream processing (beneficiation) facilities to improve the global competitiveness of in-country producers and provide future opportunities for job growth. While in-country beneficiation has been explored over the years by various stakeholders, the low quantity of primary copper sources and an uncertain outlook on exploration deterred further investment. The study further seeks out to improve the potential stakeholders’ understanding of the relevant enabling factors and underlying risks of in-country beneficiation through practical discounted cash flow modelling. Should Botswana want to drive in-country processing and enact a beneficiation legislation framework, it would need to explore options such as incentivising with tax structures and developing associated infrastructure to ensure electrification, water supply, rail network availability and other needs such as housing. Tax incentives from the government are recommended to stimulate foreign direct investment. Viable government incentives such as i) granting special economic zone status, or more relevant ii) to divert 1% of the mineral royalties payable by miners to the government to this new facility in exchange for a proportionate minority equity state. Four viable scenarios for in-country beneficiation were developed where the NPV7.7%,real 2022 of a new copper processing facility could range between US$ 358 – 422 million. Furthermore, the total value generated by the facility, undiscounted over life of operation, was estimated to be US$3.6 billion. 10.1% of the total project value generated would be recovered by the Botswanan government through corporate tax, dividend withholding tax, personal income tax and value added tax. The value added to the Botswanan economy would contribute an additional 2.2% to Botswana’s gross domestic product. The total value generated towards nation building was calculated to be at least three times larger than the profit generated by the facility owners.Item The direct and indirect effect of interest rates on economic growth in Botswana(2021) Masole, MbakoThe study determines the direct and indirect effects of interest rates on economic growth through domestic investment, real exchange rate, inflation, foreign direct investment (FDI), trade openness and human capital. The results of this study will guide the appropriate intervention in the use of interest rates in stimulating economic growth. The study uses a quantitative method with multiple regression analysis. It examines the effects of interest rates on economic growth and domestic investment, FDI, inflation, real effective exchange rate and trade openness from 2004 to 2019 in Botswana. The study is highly reliant on secondary data, and quarterly data is used to run the regressions. The results show that the real interest rate in Botswana has a negative effect on domestic investment and inflation, with domestic investment being statistically significant and inflation not statistically significant. However, it has a positive effect on real exchange rate, FDI and trade openness. FDI and real exchange rate is statistically significant whereas trade openness is stastically insignificant. Real exchange rate and trade openness have a positive effect on economic growth, while domestic investment, inflation, real interest rate and FDI have a negative effect on economic growth. Domestic investment is statistically significant, while real exchange rate, inflation, FDI and trade openness are statistically insignificant. On the path analysis, exchange rate, inflation, FDI and trade openness cannot mediate the effect of interest rates on economic growth, whereas domestic investment mediates the effect of interest rate on economic growth. The study concludes that it is critical for policy makers, when making policy decisions on the monetary policy, to bear in mind the influence of interest rate on other macro-economic factors, and how these subsquently affect economic growth. The use of interest rate did not yield the desired results in Botswana, it is therefore rather recommended to consider the use of fiscal policy to stimulate economic growth.Item Factors hindering export performance in Botswana: a focus on SMMEs(2020) Molefe, GloriaThe purpose of this study was to quantitatively examine the export barriers hindering export performance by Small, Medium and Micro Enterprises (SMMEs) in Botswana. The study focused on SMMEs as defined by the Policy on Small, Medium and Micro Enterprises in Botswana. An online survey through Qualtrics platform was administered to collect data from Botswana SMMEs that were identified through consultation of various sources of firm listings on SMMEs. A total of 122 responses were analysed and further tabulated. The findings revealed that knowledge barriers, internal resource barriers and procedural barriers negatively impacted export performance in Botswana. In other words as these barriers increase firms perform poorly in their exports. The findings of this study must be viewed taking into consideration that not all export barriers were exploited. Another limitation was that this was a cross sectional study and time constrained data collection. Export performance was measured using perceived indicators. In the context of future studies, it would be advisable to conduct a qualitative study so that SMMEs can outline what they perceive as barriers than be confined to the research instrument provided. The stage of exporting should be taken into consideration as well. The findings of this study can be used by firms to gauge their positions in term of export readiness and designing strategies on how to eliminate the barriers and improve their performance; they provide policy makers with empirical information hence guidelines on developing focused strategies especially education programs that equip firms with knowledge on potential export markets and opportunities available and researchers can build more theoretical knowledge on the relationship between these export barriers and export performance. The study generally confirms literature but offers original insights from Botswana context.