An Exploratory Study of Regulatory and Policy Frameworks Affecting Born Global Firms in Botswana and Possible Implications for Employment Creation

Abstract: The study explores the role of the knowledge economy in facilitating international trade and networking. It looks at the role of law makers, business associations and lobby groups within the greater export promotion policy framework as a vital tool to drive GDP growth and reduce unemployment amid rapidly falling exports. Botswana as a country and as a market has a challenge of a relatively small population of just over 2 million and general unemployment rate of 27.5% and 47% for youths aged 18-35. This presents the country’s commercial and industrial players with a relatively small domestic market with low aggregate demand for goods and services. This in turn leads to sluggish growth in non-diamond related GDP. The country needs to diversify its economy away from diamonds and expand its export capacity and performance in world markets. The gravity of Botswana’s predicament has been amplified by the recent emergence of Laboratory grown diamonds which pose an existential threat to the mono-economy of Botswana which experienced a 44% drop in Exports for 2024. The Export Led growth strategy and Import substitution models have a significant role to play in driving both the nations diversification efforts and GDP growth agenda In particular it is a unique opportunity for Born Global Firms (BGs) to fill this gap by leveraging on technology driven internet platforms to drive the emergence of the Forth industrial revolution and accelerate international trade. The recent banning of vegetable products from South Africa in favour of Botswana products by President Masisi is a good example of a positive policy intervention in favor of import substitution. The Study explores how the political economy, policy and regulatory frameworks of the country impact on the business environment and its ability to foster export performance through the establishment of Born Global Firms in Botswana.