PRESENTATION ON THE

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• PRESENTATION ON THE
• PROGRAMME ON THE USE OF
• LOCALLY MANUFACTURED
• GOODS AND SERVICES
• (ULMGS)

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Overview of Department of Industrial Affairs (DIA)
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CONTENTS

• INTRODUCTION
• PURPOSE
• ROLE OF INDUSTRIES
• ELIGIBILITY CRITERIA
• REGISTRATION PROCEDURE
• TENDERING REQUIREMENTS
• ADMINISTRATION OF THE PROGRAM
• ISSUES OF CONCERN
• WHERE TO GET THE APPLICATION FORMS

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INTRODUCTION

• In August 2004 Government directed that
• Central Government, Local Authorities and
  Parastatal Organizations should purchase all
  their products from locally based manufacturers
  and service providers.

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INTRODUCTION(Contd)The goods and services
have to be

• locally available,
• competitively priced, and
• meet tender specifications in terms of
• quality standards as certified or recognized by
  Botswana Bureau of Standards (BOBS), and
• other requirements.

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PURPOSE

• To ensure that procuring institutions, support
  local manufacturers and service providers.
• Facilitation of local entrepreneurship
• development and stimulation,
• capacity building, and
• international competitiveness.

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ROLE OF INDUSTRIES

• Local manufacturers and service providers
  aggressively market their products to ensure that
  procuring institutions are fully aware of the
  availability of their products.

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ELIGIBILTY CRITERIA

• All manufacturers and service providers are
  eligible for registration, provided they
• Are operating in Botswana.
• Are registered with the Registrar of Companies in
  Botswana
• Possess a valid relevant licence or registration
  certificate from a competent authority

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REGISTRATION PROCEDURE

• To apply for registration under this programme,
  enterprises should submit the following
  documents
• Two copies of the application forms duly
  completed.
• A copy of certificate of registration and/or
  incorporation issued by the Registrar of
  companies.
• A copy of tax and /or VAT Registration.

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REGISTRATION PROCEDURE(Contd)

• (a) Annual Financial statements
• (c) New enterprises are allowed to submit
  projected financial statements provided that
  
  
  the enterprise has been in operation for less
  than a year. (For the first year of application
  only).

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REGISTRATION PROCEDURE(Contd)

• Department of Industrial Affairs upon receipt of
  application shall
• verify the particulars of an enterprise to
  ascertain correctness of information provided.
• visit premises of the enterprise to ensure its
  existence and compliance with requirements.

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REGISTRATION PROCEDURE(Contd)

• The registration is renewable every twelve
  months.
• Enterprises failing to renew their registration
  will automatically be deregistered.

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TENDERING REQUIREMENTS

• Local manufacturing enterprises and service
  providers should register with the Ministry of
  Trade and Industry.
• The registration list will be used by procuring
  institutions as a source of information on the
  availability of locally produced goods and
  services.

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TENDERING REQUIREMENTS(Contd)

• Procuring institutions should, in their tender
  specifications, require local enterprises to
  provide their production capacities.
• The capacities should then be used as part of the
  tender evaluation process to determine the
  quantities and values that will be procured
  locally and from the external sources.

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TENDERING REQUIREMENTS(Contd)

• Procuring institutions should not use brand names
  in listing products.
• Manufacturers will not be allowed to import
  similar goods to supplement their production.
• Enterprises should always attach copies of valid
  certificate of registration under the programme
  to tender documents.

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ADMINISTRATION OF THE PROGRAMME

• The Department of Industrial Affairs under the
  Ministry of Trade and Industry administers the
  programme.
• The Department is responsible for the following
• Registration of enterprises
• Developing and maintaining a data base on
  registered enterprises

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ADMINISTRATION OF THE PROGRAMME (Contd)

• Publicizing the programme
• Monitoring the implementation of the programme
  and
• Cautioning and de-registering of enterprises
  failing to comply with the requirements of the
  programme.

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ISSUES OF CONCERN

• Lack of quality certification of most goods and
  services.
• Limited range of locally manufactured goods and
  services.
• High prices of locally manufactured goods and
  services.

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ISSUES OF CONCERN(Contd)

• LP certificate not recognized by procuring
  entities .
• Under reporting by procuring entities
• Equal treatment of traders and manufacturers when
  tendering

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WHERE TO GET APPLICN FORMS?

• The Director
• Department of Industrial Affairs
• Private Bag 0014
• Gaborone
• Telephone [phone] (Ask for LPP office)
• Facsimile 3972910
• Website www.mti.gov.bw ( go to
• 
  documents)

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• THANK YOU.