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    REPORT ON

    STAKEHOLDERS WORKSHOP ON PILOT CLUSTER

    PROJECTS FOR SMMEs IN THE GARMENT

    SECTOR

    HELD

    FROM 11 th -12 th JUNE 2007

    AT BNPC CONFERENCE CENTRE

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    THEME: CLUSTER DEVELOPMENT, A WAY OF

    ENHANCING THE FIRMS PRODUCTIVE CAPACITIES AND

    COMPETITIVENESS

    TABLE OF CONTENTS

    Executive Summary

    Acknowledgement

    1.0 Introduction

    2.0 Workshop Preliminaries, Methodology and Focus

    3.0 Welcome Remarks by the Permanent Secretary of

    Ministry of Trade and Industry

    4.0 Opening address by the director of Industrial

    Affairs, Ms V Mosele

    5.0 Vote of thanks by the Director of Industrial Affairs,

    Ms V Mosele

    6.0 SUMMARIES OF WORKSHOP PRESENTATIONS

    6.1 Overview of the project by Mr. S Obuseng,

    UNDP

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    6.2 Review of the Project Strategy

    Implementation and Update by Ms Banusi

    Jallow, Project Manager UNDP/DIA

    6.3 Project Update by Ms Yvonne Thebe,Production Manager, UNDP/DIA

    6.4 Company Governance issues by Mr. A. Lanor

    of AMSCO

    6.5 Presentation of the Business Plan by Dr

    Sheik, Business Promoter Consultant

    6.6 Introduction of cluster representative andgeneral view by Dr Nelly Tlhomelang, Cluster

    Representative

    6.7 Project Governance Issues by Mr. S Obuseng,

    UNDP

    6.8 Policies and Programmes by Mr. Mogorosi,

    DIA

    6.9 Industrialization Support Services by Mrs.

    Kgotlele

    6.10 Secondary Education Uniform Procurement

    by Mr. Tambula

    6.11 Primary Schools uniform procurement by Ms

    Kelebemang

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    6.12 Fabric Manufacturing and procurement

    process by Dagama

    6.13 Tendering Requirements by Ms Pauline Pule,Dept of Supplies

    6.14 Support to local firms; particularly to SMMEs

    clusters by Mr Joseph Ramotshabi of

    Debswana

    6.15 Institutional support to cluster development

    by Barclays Bank

    6.16 Advice on market penetration by A. Hilligas of

    AGOA

    6.17 Entrepreneurial capacity development by Ms

    Margaret Mokgethe of LEA

    6.18 Sharing experience on Group dynamics and

    funding womens groups by Womens Affairs

    Department

    7.0 Questions Comments and Discussions

    8.0 Annexes

    8.1 Programme of Activities

    8.2 List of delegates

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    ACRONYMS

    AGOA African Growth Opportunities Act

    PEC Project Executive Committee

    BEDIA Botswana Export Development

    Investment Authority

    UNDP United Nations Development

    Programmes

    DIA Department of Industrial Affairs

    MTI Ministry of Trade and Industry

    SMME Small Micro and Medium Enterprises

    MoE Ministry of Education

    BOBS Botswana Bureau of Standards

    CEDA Citizen Entrepreneurial Development

    Agency

    LEA Local Enterprise Authority

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    EXECUTIVE SUMMARY

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    Ms T, V Mosele Director, DIAMr G. Kombani Permanent Secretary, MTI

    Workshop Resource Persons

    Name OrganizationMr Obuseng UNDPMs Banusi Jallow UNDP/DIAMs Yvonne Thebe UNDPMr A. Lanor AMSCODr. Sheik Business Promoter Dr. Nelly Radiotlane Clusters RepresentativeMr Mogorosi DIAMrs. Kgotlele DIAMr S Tambula Director, Dept of Secondary

    EducationMs Kelebemang Dept of Primary EducationMs Pauline Pule Dept of SuppliesMr Joseph Ramotshabi DebswanaMs Itumeleng Ngwako Barclays Bank

    INTRODUCTION

    The Stakeholders Workshop on Pilot cluster projects for SMMEs in the

    Garment sector took place in Gaborone from the 11 th-12 th June 2007 under

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    the theme Cluster Development, a way of Enhancing Firms Productive

    Capacities and Competitiveness.

    This was the over-arching factor that \was captured in all the presentations

    of the workshop. The Stakeholders Workshop was precipitated by the need

    for continuous consultations to advocate for clusters in their plight to find a

    market for their goods and services in this country.

    The workshop was structured in three parts; the first part was an in-house

    discussions among project advisory and implementation members whose

    objectives were to:

    Restate and clarify project objectives to re-align stakeholders

    perceptions and expectations

    Redefine the project strategy

    Outline governance mechanisms and processes at the oversight and

    project implementation levels.

    The second part of the workshop was the stakeholders consultative forum

    whose initial objectives were to:

    Update stakeholders on work undertaken this far on the project

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    Address what appears to be a vicious circle of constraints hampering

    the growth and competitiveness of SMMEs in the garment sector. The

    constraints include; Poor quality of local products

    Uncompetitive pricing

    Unreliable supply of goods

    Lack of capacity to deliver bulk orders

    Poor or none existence of after sale service

    Lack of promotion of goods

    Lack of competitive sources of supply of fabrics and trimmings

    Lack of working capital and a wide variety of school uniform

    colors that hinders procurement processes

    Share experiences on Cluster Development Model adopted on a pilot

    base as a way forward towards addressing effectively the above-cited

    constraints. The cluster development model is being implemented

    from a local perspective and would be discussed and compared to best

    practices on cluster development from a Regional or International

    perspective.

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    The third part was training of the clusters in priority areas which a

    resource private company, On Spot Media was identified to undertake

    the responsibility on specific areas of Business Management Training.

    WORKSHOP PRELIMINARIES, METHODOLOGY AND FOCUS

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    The Stakeholders Workshop on pilot cluster projects for SMMEs in the

    Garment Sector was held on 11 th-12 th June 2007 at BNPC Conference room

    in Gaborone to share ideas on coming up with incentives that will help

    hinder the constraints hampering the growth and competitiveness of SMMEs

    in the Garment sector.

    This workshop sought to identify bottlenecks in the procurement process of

    large retail chain stores, wholesalers so as to come-up with strategies to

    empower the SMMEs. It also centered on the issues that impede the capacity

    of SMMES to meet the needs of the buyers and thus the need for cluster

    development.

    The workshop was a culmination of interactions between the Ministry of

    Trade and Industry and the United Nations Development Programme for the

    need for cluster development as an initiative to empower SMMEs and to

    help the eradication of poverty. It was structured in such a way that the

    resource persons presented their experiences and information sharing and

    then questions and clarifications on what the resource persons have

    delivered followed. The output of the discussions formed basis for

    formulating resolutions and the way forward.

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    In order to get this workshop viable, the organizers invited a number of

    institutions like those offering advice on market penetration ,

    entrepreneurial capacity development, buyers from government, big bulk

    purchasers from Parastatals, to come to the workshop to exchange views,

    share ideas and map the way forward.

    OPENING REMARKS AND INTRODUCTIOM BY THE DIRECTOR

    OF THE DEPARTMENT OF INDUSTRIAL AFFAIRS MS T. V.

    MOSELE

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    WELCOME REMARKS BY THE PERMANENT SECRETARY IN

    THE MINISTRY OF TRADE AND INDUSTRY MR G. KOMBANI

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    VOTE OF THANKS BY THE DIRECTOR OF DEPARTMENT OF

    INDUSTRIAL AFFAIRS, MS T. V MOSELE

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    The director of Department of Industrial Affairs appreciated the presence of

    the Permanent Secretary for having made time to officiate at the workshop.

    Ms Mosele acknowledged the effort made by her department and UNDP in

    making the workshop possible. She reminded the delegates that the goal of

    the workshop was to find solutions that will assist the growth of clusters to

    propel empowerment of SMMEs which will in turn propel economic growth

    and diversification for Botswana and thus help in the eradication of poverty.

    The director also thanked all the presenters for their well prepared

    presentations. She also apologized for the delay in the program because of

    starting late and thanked the chairman for managing the schedule well which

    enabled the completion of the program despite having started late.

    In conclusion, Ms Mosele assured the participants that the resolutions of the

    workshop will be implemented.

    SUMMARIES OF THE WORKSHOP PRESENTATIONS

    OVERVIEW OF THE PROJECT BY MR S OBUSENG, UNDP

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    Mr Obuseng indicated that the project is a component of a larger

    UNDP/GoB project on poverty reduction. The project is piloting on an idea

    of Joint production with a conceptual base of increasing returns to scale. The

    Business Case for the project is both developmental and entrepreneurial.

    Mr Obuseng highlighted that the garment sector has a strong rural presence

    and is arguably the main manufacturing activity in rural Botswana and

    women are by far the dominant players as their participation rates are high.

    At the moment there are two pilot sites, Thamaga and Molepolole. The

    project pursues a visible potential since a niche market exists, that is the

    uniform and institutional market and the women also have basic equipment

    acquired through the assistance of FAP. Cluster development will assist in

    the transition from subsistence to commercial viability which is possible

    with an attainable production model of joint production.

    The business case of the project rests on a number of key observations about

    beneficiaries . He said that the beneficiaries are small atomistic operators and

    that at the moment there is home based production in which one person

    performs the majority of tasks related to the production of a garment, but the

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    formation of clusters will result in more areas of specialization which will

    result in efficiency, improved production and improvement in the quality of

    the products, thus increase their competitiveness.

    The clusters are facing unfavourable market conditions at current levels of

    operation as they face stiff competition from inexpensive imports and the

    uniform market is not regulated since colours are not standardised and thus

    the need for assistance

    Mr Obuseng informed the participants that organising producers into bigger

    business units will help in building potential to realise economies of scale

    since at the moment producers are trapped in low volume, low quality, low

    value production on account of their size which cuts them from the market.

    He also reported that both Thamaga and Molepolole are incorporated

    businesses whose main aim is targeting high levels of operation.

    In his final word he said that there is a need to provide essential services

    to the clusters like training, marketing to build capacity and also a need to

    address regulatory services like the school uniform colours and the public

    procurement to make the market easier to work for the small producers.

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    He said that the procurement issues should be addressed to get the

    government to use their procurement to empower the clusters.

    REVIEW OF THE PROJECT STRATEGY IMPLEMENTATION

    AND UPDATE BY MS BANUSI JALLOW, UNDP/DIA

    Ms Jallow, the Project Manager started her presentation by outlining the

    objectives of the stakeholders workshop on pilot cluster projects for

    SMMEs in the garment sector as follows;

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    To Restate and clarify project objectives to re-align stakeholders

    perceptions and expectations.

    To Redefine the project strategy and project implementation levels. To outline governance mechanisms and processes at the oversight.

    She reported that the project is precipitated by problems faced by the

    clusters like poor quality of local products, uncompetitive pricing, unreliable

    supply, lack of capacity to deliver bulk orders, poor or none existent after

    sale service and lack of promotion of goods, lack of product development,

    lack of employing new technological functions, etc.

    Cluster development in the garment sector presents ideally a practical

    approach to on sole proprietorship that benefited from social capital intended

    to create employment and to reduce poverty and as result, were unable to

    due to the sectors emanate challenges that include the supply-side

    constraints among the SMMEs.

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    She explained the meaning of cluster as below, first giving the international

    meaning and then the definition from a local perspective

    For example Malls or Business Districts are often referred to as a

    cluster. Michael Porter in his Competitive Advantage of Nations

    (1990) described a Cluster as geographically proximate group of

    interconnected companies and associated institutions in a particular

    field linked by commonalities and complementariness. Clusters

    encompass an array of linked industries and other entities important to

    competition, including government and other institutions such as

    universities, standard setting agencies, the think tanks, vocational

    training providers and trade associations.

    She highlighted that it has come to our realization that clusters can operate

    with a higher level of efficiency, drawing on more specialized assets and

    suppliers with short reaction times than they could in isolation. There is

    knowledge/skill transfer among members and high level of innovation and

    business formation attracted to invest in their location and also studies

    already made show a positive correlation that seem to strongly suggest that

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    the development of strong clusters is one aspect of achieving overall

    economic development.

    Explaining the concept of clustering from a local perspective she said that

    the cluster business model suggests the formation of a production entity or

    company through pooling of already existing resources from households

    who are sole proprietors to grow together and share risks and rewards under

    a single facility with sufficient economies of scale achieved through

    specialization, to improve quality and firms competitiveness towards

    urbanization or industrialization of a district or area; interlinked through a

    privileged performance contractual agreement or relationship to a Design,

    Sales and Marketing Company (SALESCO), surrounded and supported by a

    conducive business environment.

    She also elaborated on the business sense of the pilot project as follows

    The business model will enable a quicker learning curve in

    improved production operational efficiencies through reduced

    turnaround time in skills development, Factory organizational

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    structures, Improved production methods, sewing techniques,

    standards and certification of products and processes

    Improved service delivery and supply quantities.

    The business model would boost financial gains of the clusters

    through a bankable realistic business plan agreed between

    SALESCO and the Clusters.

    Mitigate Occupational Health and Safety standards in and

    HIV/AIDS intervention in the work place;

    Business model would allow job creation and poverty reduction

    in the rural areas thus curb migration into town.

    In conclusion she indicated it has been realized that the country loses the

    much needed foreign currency to imports annually when this could be

    avoided through purchasing locally produced goods. SMMEs have been

    urged to take advantage of citizen empowerment and incentive schemes that

    are in place

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    The chairperson thanked the Project Manager for her presentation. He said

    that all the presentations show that there are a lot of challenges on cluster

    development and participants should look into how to make the cluster

    development a success.

    PRODUCTION UPDATE BY MS YVONNE THEBE, PRODUCTION

    MANAGER

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    The Production manager reported that at the moment there are 35 women in

    the two pilot clusters of Molepolole and Thamaga. The clusters are facing a

    lot of challenges some of the highlighted as below;

    Inadequate Machinery

    No suitable workshop layout

    Do not have adequate training

    Lack of working capital

    Not guided by standards

    She said that in an effort to make production much easier the Thamaga

    cluster had to move from their old premises to more suitable premises which

    are more work conducive. This move came after Dr Mothibi indicated in his

    report that the old premises were not work conducive and therefore could

    hinder effective production.

    Ms Thebe also reported that she has devised a monitoring system that will

    focus on staff attendance, lead time to complete garments, workshop layout

    which will assist in more production

    COMPANY GOVERNANCE ISSUES BY MR A LANOR

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    Mr Lanor from AMSCO started his presentation by outlining what his

    company operates on, and he said that their main aim is to assist African

    companies in becoming globally competitive, profitable and sustainable. He

    said that AMSCOs mission is to build management capacity within the

    African private sector by providing management and training support,

    primarily to African SMMEs.

    The services provided by AMSCO are those of senior management

    assistance, training and management development, and grant funding.

    In relation to the Botswana Garment & Textiles Industry in context he

    indicated that the sector is an important driver of the economic activity and

    that the garment and textile industry is a regionally competitive industry.

    He also said that Botswana has comparative advantages because of the

    follows factors:

    Good governance and economic management

    Low levels of corruption

    Good Labor and Industry relations

    Relatively low water and electricity costs

    Reasonable property rentals

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    Even though Botswana still enjoys the benefits of good governance there are

    some challenges faced by the Botswana garment producers and these are

    Low Productivity Reputation for poor quality & inability to deliver on time

    No supporting services and Industries

    Difficulties in obtaining work permits for skilled expatriates

    Containing threat of HIV/AIDS

    These challenges therefore calls for the need of cluster development because

    clustering helps the SMMEs to be able to negotiate preferential procurement

    contracts, to expand customer base and product range and expand through

    the development of new cut, trim and make companies. He said clusters are

    able to establish business locally through import substitution, which can

    enable them to grow through regional export drive, Reduce costs through

    economies of scale, Achieve collective efficiency

    The presenter highlighted the determinants of Cluster Growth &

    Development being the Size of Market abundance of customers, proximity

    to source of raw materials, nature of products and that the product quality is

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    determined by its durability, reliability and the adherence to the set standards

    of the producers .

    He said that for proper project management and good Governance there is a

    need to develop common vision amongst cluster stakeholders, promote

    communications, leverage core competences, promote cooperation and align

    the strategies and role of stakeholders with cluster goals and therefore

    concluded that workshops like this one are very essential in those regards.

    The presenter said that Corporate Governance, which is a governing

    structure that protects and balances the interests of a company and its

    shareholders, is very essential and it has good implications for companies.

    This includes independent leadership (board), transparency, advisory and the

    balance of powers.

    Concluding his presentation Mr Lanor said that the garment and textiles

    industry is a major player in development of economies of Asian tigers like

    China, Korea, Taiwan, India and Pakistan and therefore could also develop

    our economies. He said since SMMEs are resource constrained, cluster

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    development programmes are an ideal strategy for SMMEs to overcome

    handicaps and overcome challenges of globalization. He emphasized on the

    need for Unity among clusters and proper management of the clusters by

    taking into considerations the individual objectives and ideas.

    PRESENTATION OF THE BUSINESS PLAN OVERVIEW BY DR

    SHEIK

    Dr Sheik described the objectives of the work plan as below

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    To re-organise state supported individual garments

    entrepreneurs into sustainable and profitable make and trim

    garment manufacturing cluster (MT Company).

    To cluster and consolidate existing independent garment

    producers into functional business entity with sufficient

    economies of scale and scope by pooling their resources

    together.

    To sustain and grow the garments production unit (MTco)

    through on-the-job training, skills development and production

    of quality garments.

    To concentrate on make and trim production of simple but

    stylish import substitution garments, such as uniforms that have

    sufficient local market in Botswana and SADC.

    To create sustainable employment and alleviate poverty at rural

    household level in Botswana.

    To produce garments efficiently to achieve profitability level

    within 3 years.

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    He said that the project needs capital amounting to P1, 400,000. The

    shareholders equity contribution in the form of machines amounts P475,

    000.00 and therefore loans amounting to P925, 000 will be required in order

    to sustain the project.

    CHALLENGES:

    Perception of producing 8 suits per day - as opposed to 1 line of 24

    machinists + 10 helpers can produce between 70 to 95 shirts or 40 to

    60 trousers i.e. between maximum 3 shirts or 2 trousers per day per

    person.

    Minimum Wage Order P3.55 per hour for unskilled worker i.e. 625

    per month salary. Skilled workers i.e. machinists get P800 1,000 per

    month.

    P6 per suit labour charges are ridiculously low - CMT Companies are

    charging P12 to P20 per shirt and P30 to P40 per trouser and crying

    for making loss because of improper costing.

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    In MT process Ironing is a big component as each step in

    production process demands ironing to produce quality shirt and

    trouser.

    Valuation of shareholders machines and assets as most of them are

    older than six years.

    Marriage of Salesco and MTCo business plans.

    INTRODUCTION OF CLUSTER REPRESENTATIVE AND

    GENERAL VIEW BY DR N. RADIOTLANE

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    PROJECT GOVERNANCE ISSUES by MR S OBUSENG, UNDP

    Mr Obuseng highlighted the key governance issues governing the clusters.

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    He highlighted the key governance roles as below;

    The Project Executive Committee (PEC)-

    He said that the PEC is responsible for ensuring that the package in the

    project document is delivered in time, the quality specified and within

    budget. The PEC functions like a board except that it doesnt have the

    legalities of a board. They are the decision makers of the project. The PEC

    cannot assume the responsibilities of the Project Manager and vice-versa.

    The Project Manager (PM )

    All operational responsibilities rest with the PM. The Project Manager is the

    does not make decisions but is the implements decisions of the PEC. She is

    guided by the project document which indicates what has to be done, when

    and within budget. The Project Manager reports to PEC on updates on what

    has been achieved. The Inception report is used by the Project Manager to

    indicate the issues in the project and the exception report highlights the

    problems in case of a breach from the project document. The Project

    Manager is responsible for managing the production team which comprises

    of the production manager and the clusters.

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    PROJECT ASSURANCE

    The role of the project assurance team which consists of UNDP is to

    provide quality assurance that is to ensure that the products produced are of

    the required standards as stated in the project document. The technical

    committee that existed before the current being used model provides the

    project assurance.

    POLICIES AND PROGRAMMES BY MR MOGOROSI

    Mr Mogorosi reported that the Industrial Development Policy was approved

    by Parliament in Dec 1997, and was adopted through Government paper

    No.1 of 1998.

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    He said that the industrial development policy originated from the need to

    diversify the economy away from its dependence on mining and agriculture,

    the need to foster growth of the private sector and the need to support

    growth of employment in the smaller town and villages.

    The principles of the current industrial policy are to promote the expansion

    of highly competitive and efficient industries in response to globalization

    and increased competitiveness of industry through the introduction of more

    productive technology and improved operating procedures. The policy also

    assists with facilitating the creation of services industries and small scale

    manufacturing industries to support competitive export sector, support for

    service sectors which are export-oriented and generate employment, creation

    of employment and income opportunities in rural areas. He said that the

    Policy also focuses into meeting international competition, through the

    reduction of trade barriers.

    He mentioned that in the past investors were enticed to locate in special

    designated areas, e.g in Selibe-Phikwe but the current strategies calls for

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    local authorities to provide conjucive conditions such as serviced land and

    factory shells and thus the need for projects like this one.

    In conclusion he said that as an effort to address the problems of rural

    industrial development and employment creation, the policy advocates for

    the following;

    Basic Infrastructure Provision

    Cost Sharing in Training

    The Use of Locally Manufactured Goods and services (LPP)

    Financial Assistance (CEDA)

    Promotion of SMMEs

    Privatization

    INDUSTRIALISATION SUPPORT SERVICES BY MS KGOTLELE

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    SECONDARY SCHOOL EDUCATION UNIFORM PROCUREMENT

    BY MR S TAMBULA, DIRECTOR DEPT OF SECONDARY

    EDUCATION

    The Director, Mr Tambula highlighted that School heads are the ones who

    determine the dress code for the students. The school uniform improves

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    She said there are challenges when it comes to the quality of the materials

    since some of them are not of good quality and therefore the colors of the

    uniform fade as time goes on. The other challenge is on the unavailability of

    the materials.

    The other huge challenge affecting school uniforms is that the ministry

    encourages school uniform but does not enforce and therefore some students

    do not wear school uniforms and cannot be expelled from school or be

    forced to wear it.

    TENDERING REQUIREMENTS BY MS PAULINE PULE, DEPT OF

    SUPPLIES

    Ms Pule also agreed with the concept of clustering as it brings in with

    different expertise. She said that the department of supply buys the fabrics

    and supplies it to the tenderors as they want standard materials used for the

    uniforms they supply.

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    Their tender is called the Cut-Make and Trim and the requirements of the

    tender are a trading license, tax clearance of the tenderors. The specifications

    of the tender are always specified in the tender document. She said that the

    tender is divided into three stages when evaluating which are compliance to

    the tender, the technical stage which looks into the compliance to the

    specifications and the cost effective price.

    SUPPORT TO LOCAL FIRMS; PARTICULARLY TO SMMES

    CLUSTERS BY MR J RAMOTSHABI OF DEBSWANA

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    PLENARY DISCUSSIONS, QUESTIONS AND COMMENTS

    C- Comments

    Q-Questions

    A- Answers

    Q. How has AMSCO performed in the element of cluster development?

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    A. AMSCO is doing well in cluster development because they encourage

    unity among the cluster members. There has to be structures developed that

    will deliver returns to the individuals and proper management by taking into

    consideration the individuals ideas and objectives is very essential to ensure

    cluster development.

    C. BOBS approved the national school uniform standards on the 5 th of June

    2007

    Q. Is BOBS considering the translating the standards into Setswana?

    A . BOBS will assist with translation when there is an issue like the one of

    the clusters.

    Q. What approach has LEA adopted to ensure that what they teach is in the

    language understandable by many e.g. Setswana?

    A. All materials are going to be translated into Setswana. They are yet to

    take all their materials to UB to be assisted with translation.

    Q. If a company complies with all the set BOBS standards is there any

    certification of excellence awarded to such a company?

    A. Yes, a BOBS compliance certificate will be awarded.

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    Q. How do you balance the interests, objectives and goals of the clusters so

    that they do not clash?

    A. Try to separate ownership from the managers by appointing individuals

    from the community to be one of the trustees to form a balance.

    Q . Why are schools and Institutions considered as a niche?

    A. Because they are an easy market

    Q. How long is the pilot project intended for

    A . The original plan was for the pilot project to end in 2007 but the initial

    expected life has been exhausted. Therefore an extension to 2009 is expected

    and since the project is getting into a more disciplined phase where all the

    inputs are in place the idea is that it be complete by 2009.

    Q. How will the cluster model be replicated?

    A. A lot rests in the outcomes of the present clusters

    Q . What is the proper and efficient allocation of equity method being used

    for the clusters?

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    A. There are many forms of capital e.g. financial capital etc, if someone

    brings in equipment as their capital then a professional has to value it

    upfront to establish the value of the contribution in monetary terms. Sweat

    capital also has to be analyzed.

    Q . How does AMSCO address the issue of globalization?

    A . Globalization is always there and whether we like it or not there will

    always be cheaper imports and therefore the challenge is to produce

    competitive products which cannot be replaced by cheap imports.

    Q. How does LEA address globalization?

    A. LEA will come up with programs in place which will ensure that the

    clusters will compete with other very competitive clusters. They will also

    run a program with BNPC for the clusters to ensure that issues of quality and

    productivity are analyzed.

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    Q . In his presentation of the Business Plan, Dr Sheik has indicated that the

    clusters board be chaired by the Project Manager, and therefore the question

    is whether the clusters decided that their board be chaired by the PM?

    A . The clusters need guidance so that a holistic approach is undertaken and

    hence the example of the PM chairing the BoD.

    C . The choice of membership of the BoD should be left to the clusters. The

    clusters need to be well informed and be made to understand that they are

    accountable for their actions.

    Q . Will the project make profit?

    A . The first 2 years the project will make losses but after that profits will be

    made.

    C. Ministries should support each and also the small industries. Laws should

    be enforced so that government procurement is done from small industries.

    There should also be grading of companies and there should be a program in

    place to safe guard the quality of the materials being used.

    On the procurement of school uniform there should be specifications on to

    the type of uniform required so that there is a lot of competition rather than

    awarding the tenderor who submitted the required specifications during

    tendering.

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    Q. How are entrepreneurs assisted to benefit from policies and services?

    A. Entrepreneurs are assisted by networking, by arranging fairs locally and

    internationally for them to compete with other entrepreneurs. There are also

    reference centers at BEDIA, SA HUB and UB which entrepreneurs can use

    to acquire more information.

    Q. How does LEA assist people hit by natural disasters?

    A. At the moment there are no programs to assist in such situations

    Q. As data is collected, how reliable is it to be used by the business?

    A . Baseline data is important as it is information that is already there and

    may be updated as the need arises.

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    SUMMARY KEY ISSUES

    1. We are in agreement that cluster development is self evident

    2. From the workshop the participants have realized that there are

    opportunities in the market for clusters and that there will be no favors

    for the clusters, they have to produce the products of good quality, set

    standards and cost effective prices so as to win tenders.

    3. The clusters have to be self dependable and not rely on the clusters

    4. Conscious budget decisions have to be made to improve the

    procurement systems

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    5. The Presentations by Industrial Affairs, Education and Supplies show

    that the departments are not yet in one unison and therefore there is

    need for them to discuss it further to have one motion which is to

    support government initiatives.

    DISCUSSIONS, SUGGESTIONS AND THE WAY FORWARD

    The following points were discussed as the way forward from the workshop.

    a. Get the school uniform and corporate wear standards gazetted and get

    people trained on them, and request BOBS to run a workshop to sensitize

    about the standards on the garments sector.

    b. Secure Institutional support to provide input on productivity training and

    entrepreneurial support

    c. The clusters need to be provided with mentoring and monitoring services

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    d. The Business Plan (1 st Draft) has to be presented by the 22 nd of June

    e. The Project Manager has to finalize the proposal on school uniform colors

    for review by PEC on 11 th July

    f. The Ministry of Trade and Industry has to engage Ministry of Education in

    dialogue on color coordination and procurement of school uniform.

    g. The clusters need capacity development to be able to produce.

    h. Educate suppliers and stakeholders on the local Procurement Programme

    (LPP)

    i. Facilitate innovation and access to better technologies

    j. Invitations to tender should incorporate sections on violation to non

    compliance

    k. Strengthen the governance capacity at the level of the clusters

    l. fabric suppliers are required to provide technical specifications/ lab reports

    of their fabrics

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    PROGRAMME OF ACTIVITIES

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    LIST OF DELEGATES

    REGISTRATION FORM

    STAKEHOLDERS WORKSHOP OF THE 11 TH 12 TH JUNE 2007 HELD ATUNDP CONFERENCE FACILITIES

    N

    O

    NAME OF

    PARTICIPA

    NTS

    NAME OF

    ORGANIZA

    TION

    TITLE CONTACT DETAILS ADDRESS

    (POSTAL & EMAIL) AND TELEPHONE

    1

    .

    T.V. Mosele DIA Director P/bag 0014 Gaborone 3957406

    2

    .

    D. Okullo DIA Chief Industrial

    Officer

    P/bag 0014 Gaborone 3957406

    3

    .

    DR Elsie

    Meintjies

    BOBS Managing Director P/bag BO 48 Gaborone 3903200

    [email protected]

    .

    Elliot

    D.M.Odirile

    UB Business

    Clinic

    Coordinator P/bag UB 00701 Gaborone 355511

    [email protected]

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    5

    .

    Abraham

    Honor

    AMSCO Regional Manager P 0 Box 41701 Craig hall 2024 Johannesburg

    RSA. [email protected]

    6

    .

    Gladys

    Tlhomelang

    GTM Business

    Consultant

    P 0 box 2438 Gaborone 3902515 [email protected]

    7

    .

    Madram

    Sheikh

    Business

    Promoter

    Chief Executive P O Box 1461 Gaborone 3907280 email:

    [email protected]

    8

    .

    Victor Mong-

    gae

    LEA Director

    (enterprise

    Development)

    P/Bag 191 Gaborone 3644000 email vmog-

    [email protected]

    9

    .

    C. Koketso MFDP/RDCD Chief food

    strategy and

    Policy Coordinator

    [email protected]

    1

    0

    .

    Dr Mothobi Business

    Consultant

    Project Manager P/bag 0061 Gaborone 3554348 email

    [email protected]

    1

    1

    .

    Dr Nelly

    Radiotlane

    1

    2

    .

    S.Obuseng UNDP Programme

    Manager

    P. O. Box 54, Gaborone

    [email protected]

    1

    3

    .

    Kabo Pule On Spot Media Business Director P. O. Box 4588 Gaborone Tel 3900215 Email; On

    spot media @ yahoo.com

    1

    4

    .

    Margaret

    Mokgethe

    LEA Micro Business

    Program Manager

    P/Bag 191 Gaborone

    1

    5

    .

    Nthusang M.

    Dibe

    BNPC Consultant P/Bag 00392 Gaborone

    1

    6

    .

    Nkae D.Y

    Molefe

    On spot Media Coordinator P.O. Box 4588 Gaborone

    Tel: 3900215

    Email; or spot media @ yahoo.com

    17

    .

    Y. Thebe UNDP ProductionManager

    P/Bag 0014 GaboroneTel 3957406

    1

    8

    .

    C. Formson UNDP Programme

    Associate

    P. O Box 54, Gaborone

    [email protected]

    53

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    1

    9

    .

    Perekvander

    Riet

    BNPC Senior Consultant P/Bag 00392

    Gaborone

    2

    0

    .

    B. Jallow UNDP/DIA Project Manager