REPORT ON

STAKEHOLDERS WORKSHOP ON PILOT CLUSTER

PROJECTS FOR SMMEs IN THE GARMENT

SECTOR

HELD

FROM 11th -12th 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 and
general 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 women’s groups by Women’s 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

6
ACKNOWLEDGEMENTS

The Stakeholders workshop on pilot cluster projects for SMMEs in the

garment sector was a collaboration of the Department of industrial Affairs

and the United Nation Development Programmes. The organizers would like

to extend gratitude to all stakeholders who participated at the workshop.

Our collective effort in ensuring that decision makers are empowered with

our input as the players of the economy will not only help the nations

achieve economic diversification and enhance our global competitiveness,

but will also help us as entrepreneurs and service providers to establish a

healthy business environment that is sustainable and profitable.

Workshop Officials

Name Organization

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

Workshop Resource Persons

Name Organization
Mr Obuseng UNDP
Ms Banusi Jallow UNDP/DIA
Ms Yvonne Thebe UNDP
Mr A. Lanor AMSCO
Dr. Sheik Business Promoter
Dr. Nelly Radiotlane Clusters Representative
Mr Mogorosi DIA
Mrs. Kgotlele DIA
Mr S Tambula Director, Dept of Secondary

Education
Ms Kelebemang Dept of Primary Education
Ms Pauline Pule Dept of Supplies
Mr Joseph Ramotshabi Debswana
Ms Itumeleng Ngwako Barclays Bank

INTRODUCTION
The Stakeholders Workshop on Pilot cluster projects for SMMEs in the

Garment sector took place in Gaborone from the 11th-12th 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 11th-12th 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 AMSCO’s 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

27
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 doesn’t 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

36
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

38
students’ behavior as it is a form of identification, and instills confidence as

it reduces the socio-economic differences between students.

He said that the parents Teachers Association (PTA) chooses the uniform,

the color, the pattern of the school uniform. In private schools councils and

BoD also choose the uniform. He also highlighted the fact that the choice of

the school uniform is mainly based on the availability of the material,

affordability of the parents and the quality of the material.

He suggested that for there to be same uniform for all the schools there the

materials for the uniform should always be available and of the same shades.

He also highlighted the fact that it will be difficult to trace students by their

school colors which might encourage bad behaviors by students as they will

know that they are not easily identified.

PRIMARY SCHOOL EDUCATION UNIFORM PROCUREMENT BY

MS KELEBEMANG

She also reflected on some of the issues already presented by the director of

secondary education that the procurement of school uniform is managed by

the PTA, which identifies the uniform they like and liaise with the parents.

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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 5th 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

48
 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

49
d. The Business Plan (1st Draft) has to be presented by the 22nd of June

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

for review by PEC on 11th 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

50
PROGRAMME OF ACTIVITIES

51
LIST OF DELEGATES

REGISTRATION FORM

STAKEHOLDERS’ WORKSHOP OF THE 11TH – 12TH JUNE 2007 HELD AT

UNDP CONFERENCE FACILITIES

N NAME OF NAME OF TITLE CONTACT DETAILS ADDRESS

O PARTICIPA ORGANIZA (POSTAL & EMAIL) AND TELEPHONE
NTS TION
1 T.V. Mosele DIA Director P/bag 0014 Gaborone 3957406
.
2 D. Okullo DIA Chief Industrial P/bag 0014 Gaborone 3957406
. Officer
3 DR Elsie BOBS Managing Director P/bag BO 48 Gaborone 3903200
. Meintjies meintijies@bobstandards.bw
4 Elliot UB Business Coordinator P/bag UB 00701 Gaborone 355511
. D.M.Odirile Clinic edmo@mopipi.ub.bw

52
5 Abraham AMSCO Regional Manager P 0 Box 41701 Craig hall 2024 Johannesburg
. Honor RSA. Abrachamlanor@ascobv.com
6 Gladys GTM Business P 0 box 2438 Gaborone 3902515 gtm@botnet.bw
. Tlhomelang Consultant
7 Madram Business Chief Executive P O Box 1461 Gaborone 3907280 email:
. Sheikh Promoter businesspro@mega.bw

8 Victor Mong- LEA Director P/Bag 191 Gaborone 3644000 email vmog-
. gae (enterprise gae@lea.co.bw
Development)
9 C. Koketso MFDP/RDCD Chief food ckoketso@gov.bw
. strategy and
Policy Coordinator
1 Dr Mothobi Business Project Manager P/bag 0061 Gaborone 3554348 email
0 Consultant mothibi@mopipi.ub.bw
.
1 Dr Nelly
1 Radiotlane
.
1 S.Obuseng UNDP Programme P. O. Box 54, Gaborone
2 Manager Sennye.obuseng@undp.org
.
1 Kabo Pule On Spot Media Business Director P. O. Box 4588 Gaborone Tel 3900215 Email; On
3 spot media @ yahoo.com
.
1 Margaret LEA Micro Business P/Bag 191 Gaborone
4 Mokgethe Program Manager
.
1 Nthusang M. BNPC Consultant P/Bag 00392 Gaborone
5 Dibe
.
1 Nkae D.Y On spot Media Coordinator P.O. Box 4588 Gaborone
6 Molefe Tel: 3900215
. Email; or spot media @ yahoo.com
1 Y. Thebe UNDP Production P/Bag 0014 Gaborone
7 Manager Tel 3957406
.
1 C. Formson UNDP Programme P. O Box 54, Gaborone
8 Associate Constance.formson@undp.org
.

53
1 Perekvander BNPC Senior Consultant P/Bag 00392
9 Riet Gaborone
.
2 B. Jallow UNDP/DIA Project Manager
0
.

54