Connect with us
Advertisement

Botswana realizes over P3 Billion of FDI in 2018

Minister of Investment, Trade and Industry Bogolo Kenewendo says a total of P3.2 Billion worth of Foreign Direct Investment was realized in 2018/19 against a target of P2.3 Billion.

The positive FDI inflows were as a result of a number of companies investing a significant amount of money under the International Financial Service Centre IFSC and the mining sector. Meanwhile, a total of P3.4 Billion worth of Domestic and Expansions investment was achieved in the same period against a target of P2.8 Billion.

In contributing towards fulfilment of National Development Plan 11’s ultimate goal of addressing the country’s main development challenge of unemployment, the Ministry facilitated and funded creation of 7756 jobs from April 2018 to March 2019. A total of P370.7 Million worth of investment has been realized since implementation of the SPEDU Revitalization Strategy, culminating in creation of 1.5 jobs. For the year 2018/2019, Domestic and Expansions Investment stood at P176.6 Million and P43.9 Million was realized in Foreign Direct Investment creating 623 jobs. Over 3 hundred jobs have been realized from April to July 2019. The construction of the Plathan Bridge is 88% complete.

Kenewendo said BOSSC processed a total of 602 government authorization and achieved 97% approval rate in the previous year. In the quest to promote and facilitate the establishment of investment opportunities across Botswana, BITC opened a new regional office in Francistown in March 2019.

Meanwhile, the Ministry through the Local Enterprise Authority LEA has reviewed the Leather park business plan. Following approval of the revised business plan, the project manager is currently reviewing tender documents to accordingly align them and this was finalized last month. To this end, consultations with various stakeholders are being undertaken with a view to ensure adequate supply of leather once the park becomes operational. In this regard hides and skin collectors, exporters, artisan tanners and leather product manufacturers elected an interim national leather industry association to work with government on 31 Just 2019.

 LEA presented a business model for Letlhakane Municipal abattoir which will be used to produce quality hides and skins to key stakeholders. Development of the business plan is on-going. First meeting of intuitions of High Learning, Botswana Qualifications Authority BQA and Human Resource Development Council HRDC was held on 6th August 2019 to mobilise them for training and skill development for the leather industry.

Further, meeting with fodder production unit was held to mobilise fodder farmers to use treated waste water and boreholes with enough water to produce fodder to mitigate drought. A list of fodder producers is being compiled to ease contact. A breeding plan for small stock farmers has been developed to assist them in small stock rearing so as to address low off-take, birth and mortality rates.

Under the Export Development Apex, Kenewendo said the Ministry will facilitate export-led growth by promoting export of goods for which the country has a comparative and competitive advantage. She said through the Export Development Apex, new markets have been secure for Botswana exporters. ‘’as of June 2019, market access for a number of products to the East African Community has been secured.

Tariff negotiations were concluded under the auspices of the SADC-EAC-COMESA Tripartite Free Trade Area Agreement. Product lines to benefit immediately from the liberalized trade include beef, processed salt and plastic tubes. Under the current review of SACU- European Free Trade Association, Botswana stands benefit from increased market access for products- beef and lamb meat.

Further, under the African Continental Free Trade Area negotiations, Botswana will benefit from access to almost all African states market. New markets have also been acquired in Zimbabwe and South Africa, exporting lab equipment and organic fertilizer respectively. In addition, six textile companies have been selected to supply Cash Bazaar retail stores.

Furthermore, the Minister noted that the Revised National Export Strategy was launched in May 2019 and has identified priority sectors for export as follows; Arts and Craft, Garments and textile, jewellery and semiprecious stones, leather and leather product, meat and meat products, and light manufacturing and indigenous products sector,

She highlighted that seven companies were taken through QMS training, while seventeen were assisted to develop export marketing plans and diagnostic assessment were done on 14 companies. Kenewendo underlined that BITC with the support from UNDP have engaged the services of Imani Development consultancy to develop the Revised BEDP.

International Trade Centre has committed to assisting BITC with efforts to help set up an e-commerce marketplace to sell products manufactured by Ngwao Boswa Basket Weavers Association. Products are to be marketed and sold through either Amazon Handmade or Esty virtual platforms. She also said that Options currently being explored include opening a PayPal Business Account at FNB Botswana, as opposed to setting up a subsidiary company in the US.

Moreover, she noted that BITC in collaboration with Ministry of Youth Empowerment, Sport and Culture Development are working towards building a storage facility in Gumare to stockpile products for external market. To this end, fabrication of structure has been completed, and it is awaiting transportation to Gumare for handover.

The operationalization of Medium to Long-Term and Outward Insurance Initiative Products was approved in August 2018 in line with the National Economic Development Council NEDC approval. MLT encourages businesses operating in Botswana to export capital goods or participate in projects outside the country with medium to long term repayment terms, whilst OII encourages investors operating in Botswana to expand outside the boarders.

Continue Reading

News

Botswana gets P2.750 billion loan from World Bank

14th June 2021
Peggy Serame

Botswana’s efforts to accelerate key economic reforms got a boost following the approval of a $250 million loan by the World Bank today. The Programmatic Economic Resilience and Green Recovery Development Policy Loan (DPL) will support the implementation of Botswana’s Economic Recovery and Transformation Plan and is designed to strengthen COVID-19 pandemic relief while bolstering resilience to future shocks.

This DPL is also designed to support reforms to strengthen private sector development and promote green recovery. It is the first-ever World Bank budget support operation for Botswana and the first of two planned operations.

“The COVID-19 pandemic has placed a great burden on the country’s economy, its people, and firms. With this operation, the World Bank will support the government’s reforms to ensure social spending reaches the poorest and assists Batswana who are most affected by the Covid-19,” says World Bank Country Director for Eswatini, Botswana, Lesotho, Namibia and South Africa, Marie Francoise Marie-Nelly.

“This operation will also support reforms to attract private sector investments, contribute to diversification of exports, and increase job opportunities towards a green economy”. The operation provides both financial and technical support for government reforms to implement a Single Social Registry and to improve targeting of social spending on the most vulnerable while strengthening systems for future shocks.

It will also help strengthen the business environment for increased SME-led job creation and economic diversification through improved access to finance for individuals and small and micro enterprises (SMEs). Furthermore, the program will help Botswana to build the foundations for sustainable, “green” growth by supporting reforms to increase production of renewable energy by independent power producers, promoting and regulating rooftop solar energy generation, and embedding climate change considerations in environmental assessments.

DPLs are used by the World Bank to support a country’s policy and institutional reform agenda to help accelerate inclusive growth and poverty reduction. The COVID-19 pandemic led to a real gross domestic product (GDP) contraction of 7.9 percent in Botswana in 2020 – the largest in the country’s history.

This has also led to a depletion of existing fiscal buffers and has constrained revenue collection, reduced Government’s capacity and resources needed to accelerate the implementation of structural reforms and threatened to reverse progress in poverty reduction.

World Bank Group COVID-19 Response Since the start of the COVID-19 pandemic, the World Bank Group has committed over $125 billion to fight the health, economic, and social impacts of the pandemic, the fastest and largest crisis response in its history.

The financing is helping more than 100 countries strengthen pandemic preparedness, protect the poor and jobs, and jump start a climate-friendly recovery. The Bank is also providing $12 billion to help low- and middle-income countries purchase and distribute COVID-19 vaccines, tests, and treatments.

Continue Reading

News

UB employees protest against Vice Chancellor

11th June 2021
Professor Norris

University of Botswana Vice Chancellor, Professor David Norris, has lost support of the university staff, with four unions joining forces to demand his removal from office.  

When he was appointed Vice Chancellor of the University of Botswana in December 2017, by the then Minister of Tertiary Education, Research, Science and Technology, Dr Alfred Madigele, Professor Norris was hailed as an angel sent from heaven.

Professor Norris succeeded Professor Thabo Fako, after the latter led the University during turbulent times — with the university experiencing financial challenges and dwindling enrolment numbers.

Four years down the line, Professor Norris’ presence at the University nauseates many. Academic staff together with manual workers want Norris shown the door as soon as yesterday.

University of Botswana Academic Senior Support Staff Union, (UBASSSU), University of Botswana Staff Union (UBSU) and University of Botswana Manual Workers Union, in a petition submitted to Minister of Tertiary Education, Research, Science and Technology, Douglas Letsholathebe, called for the dismissal of Norris. The unions said that under the leadership of the Professor, UB staff members suffered immeasurable pain, agony and frustration, and their welfare is entirely overlooked.

The unions petition Professor Norris on a number of issues: blurred roadmap, inflationary adjustments of salaries, security services, corporate governance, teaching and learning resources, deteriorating infrastructure, staff victimization as well as appointment of staff undemocratically.

In their entreaty, staff members say that Vice Chancellor has failed to provide a clear roadmap to guide a wide range of operations within the University. Prior to Norris’ arrival, they say, UB had developed a strategy using its own scholars, led by Prof Thapisa and Prof Moahi respectively.

“They executed the assignment efficiently with intricate insider knowledge of the institution and a global academic outlook. The result of the process was later subjected to external review by consultants, even though the process was later abandoned at huge cost to the University. The Vice Chancellor is three years into this post, but he has done nothing to show, and always blames staff or his predecessors for the problems at UB,” the unions said in their petition.

The petition signed by UBASSSU President, Motsomi Marobela, acting on behalf of Manual Workers Union President, Oneile Mpulubusi and Ghadzani Mhotsha (Staff Union President), argue that Norris relishes grand standing and cheap rhetoric to project a positive image of the University to outsiders while the institution faces monumental challenges.

“Even the so-called new strategy was imposed on the staff, since unions were never consulted. Staff in faculties were threatened and bullied into submission whenever they revealed flaws in the strategy. In short, this strategy lacks the critical ‘buy in’ from those charged with implementation, something which is crucial for any new strategy to succeed.”

Professor Norris, a renowned scholar, has been fingered in being reluctant to advance staff salaries, something which has been done four years ago. Unions claim that despite several shots to alter this status quo, efforts proved vain.

“The Vice Chancellor has dismally failed to bring about any meaningful action to ascertain that staff remunerations are adjusted to mitigate the effects of inflation, despite his attention being drawn to the erosion of the buying power of University staff. UB staff salaries have not been adjusted for a duration of four years, despite numerous attempts by the trade unions (UBASSSU, UBSU and Manual Workers Union) to appeal on behalf of the constituents for his intervention,” reads part of the petition.

University management are said to be relaxed when it comes to the security of the organization, petitioners claim. They stress that this has happened several times in recent years whereby management has allowed private security contracts, which augment the in-house UB security, to lapse before they can float a new tender.

The loan schemes that the University gets into on behalf of employees, is said to be another dare giving staff workers grief, perpetuated by Vice Chancellor Norris.

“It has happened several times that the contract between the financiers and the University lapses before anything is put in place for employees to continue getting financial assistance. Quite recently, it was communicated by a memo from Staff Welfare and Benefits Office that the loan scheme with FNB is coming to an end on the 30th April 2021 and this communication was made on the 29th, just a day before the end of such contract. This again shows lack of proactiveness on the part of management which is led by the VC,” said the petition.

The Vice Chancellor is said to be overreaching in UB administrative structures. Professor Norris, who chairs the Staff Appointment and Promotion Committee (SAPC), hosts illegal Pre-SAPC meetings, which are usually attended by Human Resources and Executive Management, and make decisions on who to appoint, promote or whose contract to renew before the substantive meeting of SAPC.

The Vice Chancellor, disgruntled petitioners say, uses SAPC to rubber stamp the executive decision – this amounts to corruption. “Three years in the institution he has virtually run the university alone. The core and critical Deputy Vice Chancellor posts of Academic Affairs; Finance and Administration; and Student Affairs, have not been filled. Instead he has appointed people on acting positions and he is shuffling them around as he pleases. Those he prefers have been acting for over two years, which is contrary to the Employment Act.”

Professor Norris is a researcher and lecturer, having served in different capacities in Botswana, the United States of America and South Africa.

Prior to joining UB, he was Deputy Vice Chancellor for Research and Innovation at the Botswana International University of Science and Technology (BUIST), a position he held since 2016. He is the sixth Vice Chancellor of UB.

Continue Reading

News

Gov’t slashes P16 million from YDF budget

11th June 2021
YDF

Ministry of Youth Empowerment, Sport and Culture Development has announced the return of the Youth Development Fund (YDF), after it was put on suspension by Government last year.

The fund however, has been slashed from P120 million to P104 million with the total number of projects expected to shrink. The YDF programme was temporarily suspended last year due to shortage of funds.

The programme introduced in 2009 by government, was a way of improving the lives of the youth as well as helping to fight unemployment.

When addressing the media, Minister of Youth Empowerment, Sport and Culture Development, Tumiso Rakgare said the ministry has resolved to start receiving applications for 2021/2022 Youth Development Fund from 09 June 2021 to 10 August 2021.

Rakgare said government was worried about the high numbers of unemployment hence the resolve to restart the YDF programme even in the midst of the pandemic.

He however revealed that due to budget challenges and the continued restrictive environment imposed by the Covid-19 pandemic, there would be some modifications to the implementation of YDF.

“Due to budget challenges the allocation for the fund in the current financial year has been reduced from P120 million to P104 million. Constituencies will thus be allocated less than the usual P2 million, which means that the number of funded projects will be significantly reduced,” he said.

He further said priority for funding shall be for businesses with the potential to create a higher number of jobs and those that address key government priorities.

The sectors to be prioritized include; Manufacturing, Agriculture, Tourism, Technology, Digitization and Innovation. Moreover, the threshold for YDF financing remains at P100 000.00 for individuals and P450 000.00 for youth industries or co-operatives.

In addition to funding youth projects, the Minister said P14, 393,066.77 will be reserved for completion and implementation of Special Projects such as development of Land-banks, mentorship partnerships and trainings.

All changes to the YDF programme are to apply only for this year while a comprehensive review is undertaken. The target is to have the revised programme implemented in the next financial year.

Continue Reading
Do NOT follow this link or you will be banned from the site!