Botswana’s economy remains stable and is expected to grow this year despite the electorate nervously gearing for the October general election amid serious fighting among rival factions in the ruling party, the Botswana Democratic Party (BDP) and other opposition parties.
With political and economic analysts predicting that a divided BDP, in power for the past 58 years, will face stiff challenge from the opposition and fail to garner an overwhelming majority in the coming elections, the country’s economy remains firm and remains attractive for investors. “A divided Botswana Democratic Party will fail to secure an overwhelming majority in the 2019 elections but is expected to remain in power,” an international think-tank, the Economic Intelligence Unit (EIU) has predicted ahead of the country’s watershed national plebiscite.
“(However), the economy will continue to remain heavily mineral-dependent, and as a result economic growth will fluctuate according to external demand and prices for diamonds,” the think-tank said. Other analysts are predicting that the non-mining sectors were expected to pick up further, before and after the election, driven by structural reforms, including an amended immigration law that ensures expeditious processing of work and residence permits while construction was expected to continue benefiting from the on-going fiscal stimulus.
â€¨However, despite the positive economic outlook, the October election has been characterised by a number of challenges including massive defections in the ruling BDP, verbal threats and backstabbing among other rivals parties. Former president Ian Khama, who has maintained poor relations with President Mokgweetsi Masisi, left the BDP and has been instrumental in the formation of a new opposition political party, the Botswana Patriotic Front (BPF), where he was recently appointed the party’s patron.â€¨
“The divisions in the ruling party, which have deepened in 2019, are unlikely to prevent the BDP from retaining a parliamentary majority unless (Pelonomi) Venson-Moitoi and her supporters leave the BDP to form a new organisation or join the opposition Umbrella for Democratic Change (UDC). We view this as unlikely,” another international security organisation, Garda World projected. â€¨Venson-Moitoi is a former foreign minister who in April this year withdrew her challenge in the BDP’s internal elections to select its presidential candidate where President Masisi was later nominated.
In such previous elections, candidates were chosen unopposed. â€¨Other potential presidential, parliamentary and local council players in the coming election are; the Progressives (AP) and the Botswana Movement for Democracy (BMD).â€¨However, regardless of these political intrigues in parties contesting the coming elections and the unpredictable outcome of the results, Botswana’s economy has managed to weather the storm and is expected to remain stable. â€¨Garda World attributed Botswana’s strong economy in the face of a volatile election period to strong State and private institutions, a low debt burden and efforts to diversify the economy through measures including tax concessions in manufacturing.â€¨“We forecast GDP (Gross Domestic Growth) will grow by 4.6 percent in 2019.
This is likely to soften in 2010 to 4.3 percent given our forecast of slowing global growth. Botswana’s operational environment ranks among the best in Africa. Corruption is not considered a significant problem, with Botswana often being among the best in the region in surveys and indices measuring graft,” Garda World predicted.â€¨However, other analysts said despite Botswana’s operational environment ranking it among the best in Africa, President Masisi was being distracted in carrying out his constitutional duties as the Head of State, as he spends most of his time engaged in fierce battles with his new rival, former president Khama.
As a result, President Masisi is being criticised of failing to create employment for a huge market of unemployed youths, which stands now at 40 percent. His opponents also accuse President Masisi of making fairy-tale commitments in his election campaigns such as designing an electric car in Botswana when the electorate expects realistic messages from him that will improve their livelihoods.
“Bureaucratic issues, skills shortages, and electricity and water constraints are among operational challenges. Botswana is under pressing economic conditions with high levels of unemployment within the youth, high numbers of highly trained graduates without jobs, frequent retrenchments in the work place, poor or low wages, worker strikes precipitated by poor government/labour relations, student strikes over unpaid stipends and pressing land issues,” said Garda World.
Freedom House, an international civil rights organisation said President Masisi’s government was not doing enough to protect ordinary workers and ending human trafficking. “Employee abuses in retail stores, the tourism industry, and private security sector are an on-going problem. Botswana lacks a strong regulatory framework for labour brokers that dispatch workers to clients on short-term contracts, in which exploitation is common. Human trafficking remains a challenge,” Freedom House said. President Masisi became the caretaker president of Botswana in April last year, upon the end of the constitutional term of President Khama and he will serve in that capacity until lawmakers elect a new president after the October general election.
Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.
The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.
Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa
A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.
COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”
According to Moribame, Start-up businesses will forever require help if there is no change.
“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”
Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”
Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.
Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.
“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.
For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.
“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.
Letlhakeng:TotalEnergies Botswana today launched a Road Safety Campaign as part of their annual Stakeholder Relationship Management (SRM), in partnership with Unitrans, MVA Fund, TotalEnergies Letlhakeng Filling Station and the Letlhakeng Sub District Road Safety Committee during an event held in Letlhakeng under the theme, #IamTrafficToo.
The Supplier Relationship Management initiative is an undertaking by TotalEnergies through which TotalEnergie annually explores and implements social responsibility activities in communities within which we operate, by engaging key stakeholders who are aligned with the organization’s objectives. Speaking during the launch event, TotalEnergies’ Operations and HSSEQ, Patrick Thedi said, “We at TotalEnergies pride ourselves in being an industrial operator with a strategy centered on respect, listening, dialogue and stakeholder involvement, and a partner in the sustainable social and economic development of its host communities and countries. We are also very fortunate to have stakeholders who are in alignment with our organizational objectives. We assess relationships with our key stakeholders to understand their concerns and expectations as well as identify priority areas for improvement to strengthen the integration of Total Energies in the community. As our organization transitions from Total to Total Energies, we are committed to exploring sustainable initiatives that will be equally indicative of our growth and this Campaign is a step in the right direction. ”
As part of this campaign roll out, stakeholders will be refurbishing and upgrading and installing road signs around schools in the area, and generally where required. One of the objectives of the Campaign is to bring awareness and training on how to manage and share the road/parking with bulk vehicles, as the number of bulk vehicles using the Letlhakeng road to bypass Trans Kalahari increases. When welcoming guests to Letlhakeng, Kgosi Balepi said he welcomed the initiative as it will reduce the number of road incidents in the area.
Also present was District Traffic Officer ASP, Reuben Moleele, who gave a statistical overview of accidents in the region, as well as the rest of the country. Moleele applauded TotalEnergies and partners on the Campaign, especially ahead of the festive season, a time he pointed out is always one with high road statistics. The campaign name #IamTrafficToo, is a reminder to all road users, including pedestrians that they too need to be vigilant and play their part in ensuring a reduction in road incidents.
The official proceedings of the day included a handover of reflectors and stop/Go signs to the Letlhakeng Cluster from TotalEnerigies, injury prevention from tips from MVA’s Onkabetse Petlwana, as well as bulk vehicle safety tips delivered from Adolf Namate of Unitrans.
TotalEnergies, which is committed to having zero carbon emissions by 2050, has committed to rolling out the Road safety Campaign to the rest of the country in the future.