“The Mid-Term Review (MTR) of National Development Plan 11 (NDP 11) comes at a critical juncture in the Botswana’s development. The momentum that has carried the country forward following many years of diamond-led growth is now slowing down on the backdrop of challenges in the global economic environment”, reads Mid-Term Review of the National Development Plan 11 Draft prepared by the Ministry Of Finance and Economic Development.
The Minister of Finance and Economic Development, Dr Thapelo Matsheka and his new permanent secretary Dr Wilfred Mandlebe are poised to give the country a new direction to deal with the challenges identified. According to the draft it is widely acknowledged that national social and economic transformation is necessary. “To this end, this MTR has come at an ideal time as it has assisted in identifying and analysing critical issues that need to be addressed, in order to transform Botswana’s economic and social development path going forward.”
NDP 11 is the first of three NDPs that will cover the Vision 2036 period, and hence the draft suggests that it is crucial in setting the growth and development path to be followed through to 2036, and achieving the Vision’s varied objectives for improving social and economic well-being in a sustainable manner.
“It also comes at a time when the world has embarked upon the 2030 Agenda for Sustainable Development, with its associated Sustainable Development Goals (SDGs). This MTR is therefore anchored on refining the course set out at the beginning of NDP 11 which was crafted along the pillars of Vision 2036 as well as the SDGs deliverables.”
According to the Ministry of Finance officials Botswana’s main challenge is that of subdued economic growth mainly as a result of impaired global demand for diamonds as its major export commodity. Recent average annual GDP growth rates measured over five-year periods have been around four (4) percent, far below the double-digit growth rates that Botswana enjoyed during the era of rapid diamond-led growth in the first 25 years after independence.
The draft review states that in order to sustain the growth momentum, government spending was increased even as diamond-led growth slowed down. “Such expenditure, was necessary to enhance transforming Botswana’s growth model to one driven by diversified, and export-led goods and services. Such a transformation is essential in unlocking the country’s growth potential while at the same time creating sustainable jobs. Linked to this, is the current shift in Government emphasis towards a knowledge-based economy that encompasses the production of many types of goods and services that can potentially support export-led growth.”
Finance officials posit that the transformation agenda needed to achieve faster economic growth requires that all sectors of the economy actively participate in economic activities. In so doing, it is important that emphasis be put on implementation efficiency and effectiveness. “This applies to both the choice and implementation of projects, and to operational aspects of public sector service delivery.
Public spending has been high in Botswana over many years, and while there have been some important achievements as a result, there has also been examples of not achieving value for money. Hence, structural changes in the economy associated with the move away from diamond-led growth means that the public sector will be expected to “do more with less”.”
Private sector must come to the party
There are also obligations on the private sector to deliver more and better. In many respects Botswana’s private sector is far too dependent upon government, notes the draft MTR. “It is up to the private sector to demonstrate more initiative, especially with regard to competitiveness and productivity that can underpin a pivot towards export markets rather than mainly servicing domestic demand. This requires a refocusing of domestic investment as well as attracting much higher levels of inward foreign direct investment.”
The MTR comes at a time when expectations amongst Batswana are high. “This is because the country has just successfully had a peaceful general election, and the 12th Parliament is convening with many new Members. In the road to the elections commitments to effective and impactful delivery were made, and it is essential that results are achieved that have a positive and widespread impact on the lives of Batswana. It is also essential that actions are taken that will, on balance, contribute to advancing the overall national transformation and socio-economic development in the longer term.”
The draft further narrates that currently the challenge of transformation is made more difficult by the external environment that in many respects has higher levels of uncertainty than at any time since the global financial crisis and recession a decade ago. Since that time, global growth has been volatile and
The need for Transformation
“The period of mineral-led growth that transformed Botswana from a low-income to an upper-middle income economy is now facing challenges. However, the search for a new, sustainable growth model continues. While the economy has become more diversified over the past two decades, this has not yet reached sustainable diversification levels. The economy is currently characterised by low annual growth rates and not enough opportunities for employment and income-generation for citizens are being created.
The economy also remains too dependent on government spending, and limited foreign direct investment (FDI), that yields a narrow export portfolio. Hence, the transformation to a sustainable post-mineral growth pattern remains a priority in the medium to long-term,” reads the MTR draft.
The draft notes that while the exact nature of sustainable post-mineral growth will evolve over time, a number of pre-requisites and desirable characteristics can be identified for the objectives of higher, more labour-intensive growth to be realised. These include: Increased openness and greater integration with regional and international markets for goods, services, labour and capital; Improved productivity and efficiency, leading to greater effectiveness and competitiveness; Shifting the drivers of growth towards exports of goods and services, and away from dependence on government and the small domestic market; Making use of Botswana’s high level of investment in education to support the transition to a knowledge-based economy; Improving economic opportunities for citizens; Reversing the decline in inflows FDI; and Improving the business environment to encourage diversified investment portfolios.
The Changing World of Diamonds
“Diamonds have long been central to Botswana’s economy as the largest contributor to; GDP, export earnings and government revenues. However, Botswana is now a mature diamond producer – having been doing so for almost 50 years – which means that diamonds are no longer a major driver of growth, although they continue to play an essential role in providing the foundation for the economy, government spending and the balance of payments. Domestically, the maturing of diamond mining poses challenges in that production is at a plateau, rather than growing, while costs of production are increasing as mines get older and deeper.
The global context for diamond mining is also changing dramatically. Since the global financial crisis (GFC) and recession of 2008-9, diamond prices have been volatile, and on a general downward trend, in contrast to the historical experience whereby diamond prices were expected to trend upwards. The relationship between rough and polished diamond prices has also changed, leading to squeezed margins and instability amongst mid-stream participants (diamond traders, cutters and polishers).
Other key changes involve the availability of finance, and the nature of the consumer and consumer tastes. Perhaps most significantly, the entry of low-cost lab-grown diamonds (LGDs) has transformed the supply-side, and undermined the rarity of (natural) diamonds. Finally, automation and artificial intelligence is affecting all stages of the diamond value chain, covering mining, extraction, sorting, valuing, and cutting and polishing. The diamond industry is going through a period of unprecedented change and disruption, which Botswana has to deal with, states the MTR draft.
Gaborone Bonnignton South Member of Parliament (MP) Christian Greef has submitted a letter of complaint to party chairman Slumber Tosogwane to take stern action against former minister Dr Alfred Madigele for causing chaos in the constituency.
There has been simmering tension between the two in Gaborone Bonnignton South, where former minister Dr. Madigele is said to be busy working the ground with the intention of contesting the constituency in 2024. Greef is said to have fallen out of favour with the party top hierarchy due to his association with the beleaguered party secretary general Mpho Balopi, something which he says is “unfounded”. Greef told this publication that “there are some with mischievous attempts here, but I will sort them out.”
Insiders, however, reveal that it is Madigele who has been causing unrest in the constituency as he plots his comeback to parliament in 2024. This is notwithstanding the fact that Madigele has also been promised the position of secretary general, should the party faithful ratify a proposal by the party politburo to reconfigure the position.
However, Madigele does not want to count on the SG position, hence the decision to to contest the Gaborone Bonnington South constituency. There are reports that there is a spirited campaign by some party members to reject a mulled plan to have the SG being a full-time employee of the party. This has irked Greef and has since approached the party structures for redress. “We are writing this letter to issue a complaint regarding misconduct by certain members of the BDP in our constituency.
There are several incidents where these individuals have been causing uncalled-for disruptions during party activities in Gaborone Bonnington South,” a letter penned by Greef, addressed to the regional chairperson, reads. He further added, “The group of people who are causing all these unnecessary tension in our constituency is identified and allegedly known by Madigele’s teams who is said to be campaigning for 2023 primary elections.
As the branch we witnessed the same team with similar misconduct during Bophirima Ward by election which we believe caused the party to lose the ward and continue to bring the image of the party in disrepute.” Lately, Madigele has relocated to the same constituency and that has created anxiety to Greef who is a first-time MP. Greef is concerned about how his rival was accepted in his constituency without his knowledge. If he had his wish, he would kick out Madigele from the constituency.
Greef, in another letter copied to President Dr Mokgweetsi Masisi and Chairman Slumber Tsogwane, says Madigele has brought the branch into disarray by campaigning for a parliamentary seat contrary to the party’s regulations for conduct of primary elections. “I therefore humbly appeal to you to call Dr Madigele, who is not a member of our branch, to order,” he said. Party officials in the region are aware of the matter; some say the MP’s complaint is baseless. However, the MP, according to sources, will fight to the bitter end to ensure that his arch rival is purged out.
Monthe and Marumo Attorneys who are representing suspended Director General of the Directorate on Corruption and Economic Crime (DCEC) Tymon Katlholo in a legal dispute pitting him against the Directorate of Intelligence and Security (DIS) have said that they would submit a legal bill to the agency.
This was after DCEC’s acting Director General, Tshepo Pilane had written a letter to the law firm demanding that some files and documents belonging to the agency be returned. “We refer to your letter dated 3rd June 2022 wherein you advised of termination of our mandate. In view thereof we have to file a notice of withdrawal as attorneys of record for and on behalf of the Organisation (DCEC),” Monthe Marumo Attorneys said in their letter.
The lawyers also indicated that, “the firm is in the process of finalizing your invoice and upon settlement of same, we will duly release the contents of the file, in so far as it relate to DCEC.” Pilane had informed the law firm that, “Following the Directorate’s termination of any and/or mandate between the Director General of the Directorate on Corruption and Economic Crime (DCEC) and your law firm and/or attorney of an Associate law firm of Monthe Marumo and Company on the 3rd June 2022.”
He added that, “I do hereby request that all DCEC documents in custody be returned to the DCEC on or before 12hours today the 6th June 2022. You are also informed that none of this information shall be used by your office under any circumstances.” Meanwhile Katlholo has told the High Court that the Directorate of Intelligence and Security was on the rampage as it continues to act with impunity.
He revealed this in an urgent application in which he seeks among others that Pilane, Deputy Director General of DCEC Priscilla Israel and the agency’s senior legal advisor Edwin Batsalwelang to be committed to jail for contempt of a court. The Court order had directed that a deputy sheriff should collect files and dockets from the DCEC office and place them into the custody of the Court. “Consequent to the order of his Lordship, the DISS has continued on its rampage and has arrested two officers of the DCEC and detained them in a Hitler style arrangement,” said Katlholo.
He added that, quite clearly the “DISS with the assistance of the 1st to 3rd Respondents seeks to conceal all the evidence by obstructing Judicial process.” He said his latest current application has been brought at the earliest opportunity following defiance and acts of obstruction at the instance of the respondents. Katlholo saidthe conduct of the Pilane, Israel, Batsalelwang and DIS are an aggression on the rule of law, the Constitution of Botswana and the Judiciary in general.
“The DISS clearly has every intention of continuing to defy my rights and with the due assistance of the 1st to 3rd Respondents (Pilane, Israel and Batsalelwang). To refuse an interdict, thereby allowing the perpetration of an ongoing wrong is an anathema to the principle of legality,” said Katlholo. He said, “The DISS cannot be allowed to continue acting in contravention of the law, and to fragrantly invade an act of Parliament.”
He reiterated that the files or documents or dockets remain vulnerable and there is need that they be removed from the office and placed in the custody of the Registrar. There can never be a safe place than Court, said Katlholo. “Should the matter not be heard as urgent, the likelihood of the files concerned and the information therein dissipating or being interfered with is high and once the evidence of the concerned files has been compromised or contaminated there is no other relief in law that fix such, there is therefore no alternative remedy,” he said.
Katlholo added that, “Most importantly, any unwarranted access to the files may compromise the integrity of ongoing investigations and expose informants and whistleblowers. Once they have been compromised, no court action may restore such.” He said it was necessary and extremely urgent that the Court steps in to protect the rule of law against the respondents, more particularly the DIS and its agents.
The United States through its State Department’s annual report on global religious freedoms is keeping tabs on Botswana’s decision to arrest of controversial pastor Thuso Tiego by the police.
The report was released a week ago. Tiego was re-arrested this week by the police after he allegedly attempted to spearhead a campaign aimed at shutting down some shops that are run by foreigners. The US’ State Department report says Police arrested a pastor from the Bethel Transfiguration Church September 7 when he tried to deliver a petition to President Mokgweetsi Masisi demanding his resignation over what the pastor said was mismanagement of the COVID-19 crisis.
“The pastor, Thuso Tiego, also criticized the government for restricting religious gatherings at a time when he said that individuals turned to churches for counselling and support during the pandemic,” the report says. It says Tiego was held overnight at a police station and released without charge. The report cites media reports saying that several of his supporters were beaten by police when they gathered outside the station demanding Tiego’s release.
“The national police service did not announce any disciplinary action against the officers involved,” the report says adding that, “The constitution provides for freedom of religion, with certain exceptions, and protection against governmental discrimination based on creed.” On other related issues, the report said the government continued to pursue court cases involving unregistered churches (sometimes called “fire churches”) coming into the country to “take advantage of” local citizens by demanding tithes and donations for routine services or special prayers.
“The government required pastors of some of those churches to apply for visas – even those from countries whose nationals were normally allowed visa-free entry. The government said in June 2019 that it was reviewing the visa policy for these foreign pastors, but by year’s end had not released the results of this review or announced any changes,” the report says. According to the report, former members of one of the most prominent unregistered churches forced to close in 2019, the Enlightened Christian Gathering, subsequently formed their own smaller, independent churches with local leadership that was ultimately registered by the government.
The report says, under the COVID-19 state of emergency that ended in September, the government limited attendance at religious services to no more than 50 persons at one time and limited services to twice a week. The government also banned all religious gatherings during “extreme social distancing” periods. Although the limits on religious gatherings lasted 18 months and prevented some individuals from fully practicing their faith, most religious groups did not say their freedom of religion was being restricted and stated that the extraordinary measures were necessary for public health
The report says the US Embassy officials engaged with Muslim, Buddhist, Christian, and other religious representatives to discuss religious freedom, interreligious relations, and community engagement. “Topics included government tolerance of minority religious groups, the impact of COVID-19 restrictions on religious expression, and interfaith cooperation to address community challenges,” the report says.
The report says under its broader protections of freedom of conscience, the constitution provides for freedom of thought and religion, the right to change religion or belief, and the right to manifest and propagate religion or belief in worship, teaching, practice, and observance. It says the constitution’s provision of rights also prohibits discrimination based on creed.
The constitution permits the government to restrict these rights in the interest of protecting the rights of other persons, national defense, public safety, public order, public morality, or public health when the restrictions are deemed “reasonably justifiable in a democratic society.” “The state of emergency imposed from March 2020 to September 2021 to prevent the spread of COVID-19, which capped the size of regular religious gatherings and meetings, was the first time the government ever exercised this provision,” the report says.