3. 3
Corporate
clients
Knowledge intensive services
National
International
Advisory
services
Law firms
Banks
Insurance
cos
Accounting
Corporate
training
Real
estate
IT services
Others
Key
supplies
Specialised
human
capital
Data
Analytics
Government
Regulators Legal system
Infrastructure
(physical, IT)
Lifestyle ammenities
International schools
Hospitals
Leisure
Security
HK development
Universities
Specialised training
institutions
Associations,
specialised media,
trade fairs
4. 830 hours of intensive work with corporates
95 active companies
Private sector contribution to date estimated at:
USD300 000
8 months Short, medium & long term
4
Action 2
Action 3
Action X …
Guiding the
strategy
Launching
of the
actions
Identifying
the
challenges
Action 1
Implementation of actions
3rd PUBLIC PRESENTATION
5. Services provided according to
a client’s general requirement,
far from their core business
and without added value other
than the timely provision of the
service and its quality
5
General
services
• Low entry barriers
• High competition from all over
the world (based on costs)
• Clients pressure heavily on price
It is a volume business where, in
order to be successful, you need
to be very big and cost efficient
6. Services that provide
complex solutions to needs
that are close to the client's
core business
6
• High entry barriers (knowledge
and experience)
• Global competition but based on
innovation & specialisation
• Clients are more interested in
buidling partneships with
suppliers
More attractive
innovation-driven
business
Specialised
services
7. To become the specialised F&KIBS
hub in Africa in 3 stages:
1st attract FDI to sophisticate
demand in the market
2nd export F&KIBs to Southern and
rest of Africa taking advantage of
sector-specific expertise
3rd service English-speaking
European markets in their same time
zone
7
9. 9
Legal-tech, fin-tech, ICT enabling technologies, specialized services
with regional focus.
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY
R+D
F&KIBS Cluster
Value Chain
BEEF Cluster
Value Chain
TOURISM
Cluster Value
Chain
BITC´s Targeted FDI for cluster development
Need for targeted FDI
Agro-tech (i.e. specialised forage development); Specialized
marketing ( grass-fed niche markets); logistic ( grass-fed logistics
operation efficiency ); water management.
Agro-tech ( i.e. development of local goods and services with
hydroponics) , clean tech (i.e. energies and IT infrastructure for
camps) , environmental protection (i.e. conservation of species)
-Research centres
-Innovation Centres
-Development
Centres
-Excellence
Centres
-Specialized
training institutions
Prioritized
partnerships
Cross-cluster project bank
10. 10
How are we making it posible?
Action 2
Action 3
Action X …
Action 1
Intro – Nomakhosi Mookodi – Botswana – Botswana Investment and Trade Centre
Botswana
Country in Southern Africa – just above South Africa
The size of France – with a population of about 2.3 million
Country has a GDP Per Capita Income of about USD 7800 – one of the highest in Africa
In 2012 Professor Porter & Ketels carried out a study in Botswana and identified Financial services as one of the emerging new fields that could be explored
Doing good macroeconomically – need to improve microeconomically
Started working on this February, 2018 – realised there are two main businesses in Financial Services ( Retail Financial Services and Corporate Financial Services)
Decided to focus on Corporate Financial Services however, there was no critical mass
Took out a zoom out approach – considered other business services
All this work was initiated by the National Strategy Office supported by the Ministry of Finance and Economic Development, the Ministry of Investment, Trade and Industry as well as Botswana Investment & Trade Centre.
A core team was established with representatives from all these organisation
Started working with the private sector
New way of doing things
However, they took so much ownership – these are the logos of those companies e.g. Deloitte Botswana
Graphic representation of all the different knowledge intensive business services that corporate clients require, as well as the other stakeholders that are also involved in the business.
We used a CRI Methodology and also underwent training from the European Foundation for Cluster Excellence
Quantified the work and private sector contribution;
General Services - Volume business where, in order to be successful, you need to be very big and cost efficient.
Govt. has been looking to use services as means of employment creation and as a way to diversify the economy
Reality is as a country of only 2 million people we just don’t have the volume to be successful in this business – relative to countries such as India with a population of about a billion people – one call centre is India could possibly employ all the unemployed people in Botswana
Are there other ways of competing in this industry?
Yes
We identified through global trends studies that if Botswana was to integrate innovation into already existing industries that it has a comparative advantage in then the country could develop specialized services that could gainfully employ its people and meaningfully diversify its economy
For example in Botswana we have very strong diamond companies and infrastructure companies if we develop very strong specializations in these companies we can compete favorably in the region and maybe even in the rest of Africa and the rest of the world.
Strategic proposal – validated with the private sector
The opportunity that we have identified – is to become the specialised F&KIBS hub for Africa in these 3 different phases:
1st. Attract FDI to sophisticate demand (as well as complete supply) in our market
2nd. Export KIBS to Southern and the rest of Africa, leveraging our sector-specific expertise, and
3rd Eventually service markets in Europe in the same time-zone.
In order to move from where we are today (in general services) to where we want to get to, we need to work on a number of areas of improvement that were developed together with the public sector.
1. Get together with existing demand so that existing companies can start designing some of these new specialised services
2. Improve both soft (innovation) and hard (for example KETs) skills within these companies – this can be done by training the skills inhouse or importing the relevant skills
3. Encourage the development of targeted entrepreneurship
4. Public Coordination – map issues related to the cluster – develop roadmap to address these issues – establish new objectives
As BITC we have just recently been able to incorporate the cluster approach into the organisations strategy in an effort to improve targeted FDI attraction strategies to support the F&KIBS cluster.
We are looking to;
Redefine the value proposition of the country and sectors through integrating F&KIBS into it
Develop a project bank for F&KIBS that will help us to better attract relevant companies into the cluster
Prioritise partnerships with relevant domestic and international stakeholders such that the strategic vision of the cluster maybe met.
BITC´s plan is to ensure the sustainability of the cluster by adding the action lines to the strategic planning of the institution and thus make sure that things happen.
In early November last year we presented to the President and to his Economic Committee of Cabinet. The companies lead the presentations, they told the President and his Cabinet what they would be working on in order to achieve the objectives of this cluster as well as re emphasized the role that they need GVT to play.