Study urges local millionaires to sponsor Education
A recent study titled: “Education financing research report at national level; the case of Botswana”, released this week has recommended that the rich people in Botswana should sponsor the education sector in the country.
Having analysed the Botswana context and based on other experiences in the country the study came up with some innovative options to provide additional resources to the education segment.“Some of these ways are taxing multi-millionaires; putting a levy on the mining sector, as well as increasing Official development assistance (ODA) support, and curbing illicit financial flows in the mining sector to make more resources available as government revenue,” study posits.
According to the study, Botswana has about 5 Multi-Millionaires; Abdul Satar Dada who owns Associated Investment Development Cooperation (AIDC), he is worth US$50 million. There is also Gulaam Husain Abdoola, owner of Turn Star Holdings, worth US$25 million; then Chandrakanth P Chauhun, from Sefalana Group and is worth US$12 million; as well as Ramachandran Ottapathu, Chief Executive Officer of Choppies who owns 19.5% in Choppies valued at US$60 million.
In addition there is Farouk Essop Ismail, Deputy CEO of Choppies who owns Far Properties worth US$35 Million and also 14.6% in Choppies worth US$45 million. Alexander Forbes, one of the Billionaires and philanthropist of the world states that‚ business was originated to produce happiness and not to pile up money.
Therefore, “these 5 rich people in Botswana and any upcoming rich persons could be taxed in a manner that their taxes are made special to meet education needs in the country,” study highlights. The study came with the recommendation after finding that the education financing model in Botswana is heavily dependent on government providing the resources.
Although government has provided resources to education sector above 20% and 6% of Botswana Gross Domestic Products (GDP), the resources are not adequate due to growing needs of the sector; resources to education sector are provided through a number of channels or line ministries creating coordinating challenges. It states that other than financing the sector from pubic resources, the sector does not have other innovative financing models. “Experiences of financing needs at the tertiary level have led to the education sector to begin to search for new innovative financing mechanisms as dependency on public resources is not sustainable,” it stresses.
Study suggests Botswana should also introduce education Levy
In addition to taxing millionaires, the study points out that Botswana is probably the only country in Southern Africa that has an alcohol levy imposed to generate funds for rehabilitation of alcoholics and to meet alcohol related ill health in public hospitals. Introduced in 2008, the levy rates have been increased over the years and over 1.2 billion Pula has been collected. Although the inception, management and its utilization has been a borne of contention in the country, resources have been generated that could go a long way to deal with effects of alcohol consumption in the country.
Borrowing a leaf from this and knowing well the importance of education to the country and that it is amongst the top five government priorities, the study states that “an education levy could be imposed also on certain commodities such as alcohol or fuel just to generate additional resources for education.”
Freezing up some portion of foreign reserves for education
According to the Reserve Bank of Botswana, foreign reserves are assets held by the Bank of Botswana in foreign currencies. The reserves are accumulated mainly through surpluses on the balance of payments together with increases to the value of existing foreign currency investments. The report states: It is important for Botswana to maintain adequate foreign exchange reserves to be able to meet the demand for foreign currency to pay for imports of goods and services on an ongoing basis, as well as meet other international payment obligations, including the costs of servicing international debt.
“Much as the Botswana government has such reserves aimed at meeting import needs of the country as well as making sure that the country does not suffer from economic shocks, some of the reserves could be used to meet domestic needs such as financing education with the ever growing needs in the sector. The education sector can request special provision from the MFDP so that it could have the education budget increased,” it states.
The bank states that as at the end of 2014, the reserves had increased by 16.7 percent from P67.8 billion recorded a year earlier, due to net foreign exchange inflows and the depreciation of the Pula against major international currencies. The reserves were sufficient to cover approximately 18.5 months of imports of goods and services. As of April 2015, the reserves were P89.4 billion, the equivalent of 20 months of import cover.
Cost Sharing arrangement crops again
Most technicians in the study were of the opinion that much as the Botswana government provides 99.1% of financing to basic education services, this is not sustainable in the light that domestic resources are dwindling due to a number of reasons ranging from loss of revenue as some players in the private sector are shutting down operations in Botswana; there is also a growing need for financing to other social sectors such as health.
“It was therefore suggested that a cost-sharing model be introduced whereby parents and guardians who are well-to-do, should be able to meet costs of footing education for their wards and those that are not able to meet such costs can them be taken under government support programme fully,” it posits. Currently parents and guardians do not pay school fees for basic education but only at senior secondary level. Although this came out loud and repeatedly from many technicians, they were also quick to indicate that this will require political will to be implemented.
Botswana’s Key Education Priorities are articulated in the: National Policy on Education; the Revised National Policy on Education; the new Tertiary Education Policy; the National Vocational Training Policy; the National Credit and Qualification Framework; the Maitlamo Information Communications Technology (ICT) Policy, Vision 2016 (now Vision 2036), and the Science and Technology Policy, together with other government policies.
Current funding sources of education in Botswana
Meanwhile, current funding sources to the education sector in Botswana are: public resources through the National Budget; through Overseas Development Assistance (ODA) as grants and technical support from development partners; from the private sector and from parents and guardians of students through school fees and development fund payments.
The study looked at the financing model used for the last 8 years between 2010/2011 and 2017/2018 assessing existing financing documents, policies and their relevance and ability to provide education to persons in the hardest to reach areas of the country as well as to what extent the existing model is able to mobilize resources to adequately finance the sector.
It was conducted for the Botswana Coalition on Education for All (BOCEFA), with support from Open Society Initiative for Southern Africa (OSISA) through Africa Network Campaign on Education for All (ANCEFA) whose broad aim was to determine and suggest the best possible efficient and innovative education financing model for the country looking at the country context. In the study, Government officials were interviewed especially those from the Ministry of Finance Planning and Development; the Ministry of Basic Education (MOBE) Corporate services, the Ministry of Tertiary Education and Research and the Human Resources Development Council.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.