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.
Minister of Presidential Affairs, Governance and Public Administration, Kabo Morwaeng together with Permanent Secretary to the President (PSP) Elias Magosi, this week refused to name and shame the worst performing Ministries and to disclose the best performing Ministries since beginning of 12th parliament including the main reasons for underperformance.
Of late there have been a litany of complaints from both ends of the aisle with cabinet members accused of providing parliament with unsatisfactory responses to the questions posed. In fact for some Botswana Democratic Party (BDP) backbenchers a meeting with the ministers and party leadership is overdue to address their complaints. Jwaneng-Mabutsane MP, Mephato Reatile is also not happy with ministers’ performance.
Bokamoso Private Hospital is battling a P10 million legal suit for a botched fibroids operation which resulted in a woman losing an entire womb and her prospects of bearing children left at zero.
The same suit has also befallen the Attorney General of Botswana who is representing the Ministry of Health and Wellness for their contributory negligence of having the unlawful removal of a patient, Goitsemang Magetse’s womb.
According to the court papers, Magetse says that sometimes in November 2019, she was diagnosed with fibroids at Marina Hospital where upon she was referred to Bokamoso Private Hospital to schedule an appointment for an operation to remove the fibroids, which she did.
Magetse continues that at the instance of one Dr Li Wang, the surgeon who performed the operation, and unknown to her, an operation to remove her whole womb was conducted instead. According to Magetse, it was only through a Marina Hospital regular check-up that she got to learn that her whole womb has been removed.
“At the while she was under the belief that only her fibroids have been removed. By doing so, the hospital has subjected itself to some serious delictual liability in that it performed a serious and life changing operation on patient who was under the belief that she was doing a completely different operation altogether. It thus came as a shock when our client learnt that her womb had been removed, without her consent,” said Magetse’s legal representatives, Kanjabanga and Associates in their summons.
The letter further says, “this is an infringement of our client‘s rights and this infringement has dire consequences on her to the extent that she can never bear children again”. ‘It is our instruction therefore, to claim as we hereby do, damages in the sum of BWP 10,000,000 (ten million Pula) for unlawful removal of client’s womb,” reads Kanjabanga Attorneys’ papers. The defendants are yet to respond to the plaintiff’s papers.
What are fibroids?
Fibroids are tumors made of smooth muscle cells and fibrous connective tissue. They develop in the uterus. It is estimated that 70 to 80 percent of women will develop fibroids in their lifetime — however, not everyone will develop symptoms or require treatment.
The most important characteristic of fibroids is that they’re almost always benign, or noncancerous. That said, some fibroids begin as cancer — but benign fibroids can’t become cancer. Cancerous fibroids are very rare. Because of this fact, it’s reasonable for women without symptoms to opt for observation rather than treatment.
Studies show that fibroids grow at different rates, even when a woman has more than one. They can range from the size of a pea to (occasionally) the size of a watermelon. Even if fibroids grow that large, we offer timely and effective treatment to provide relief.
The Alliance for Progressives (AP) President Ndaba Gaolathe has said that despite major accolades that Botswana continues to receive internationally with regard to the state of economy, the prospects for the future are imperilled.
Delivering his party Annual Policy Statement on Thursday, Gaolathe indicated that Botswana is in a state of do or die, and that the country’s economy is on a sick bed. With a major concern for poverty, Gaolathe pointed out that almost half of Botswana’s people are ravaged by or are about to sink into poverty. “Our young people have lost the fire to dream about what they could become,” he said.