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P500 million CEDA record marks self-sustenance path

Citizen Entrepreneurial Development Agency (CEDA) Chief Executive Officer (CEO) Thabo Thamane has said stringent measures introduced by the agency have begun to pay dividends, as the institution collected a record P515 million in last financial year.

The measures are part of Thamane’s ambition to transform the 19 year old financial development institution into a self-sustaining agency.  Thamane expects CEDA to be fully self-sustaining within the next 6 years, following a Memorandum of Understanding (MoU) entered into with Malaysian based SME Bank, a state owned financial development institution.

“We collected P515 million, that’s more than half a billion. This was the first time in the 19 year history of the institution that we have collected that much. Our target was P440 million and we went beyond our target,” Thamane told WeekendPost this week. Thamane attributes this success to prioritising collection rate when he took over the reins, a feat achieved amid strenuous effort.

“When I was appointed, there was a general laxity from people that, because it was CEDA a quasi-government [institution] people did not want to pay their loans,” he said. “People were not forthcoming because of that mentality, so we had to curb the wheel, and we seriously did. It changed the mind set of the people, they now know if they owe CEDA, they have to pay because we keep them on their toes. We needed that.”The CEDA chief said the reforms introduced proved to be unpopular, but he was adamant that it was a necessary devil.

“People were crying and politicians were complaining that there was ‘In a matter between’ in every newspaper involving CEDA and their clients. I told them I had to and every relationship has to end at some stage. Either you pay the loan or we go to court.  We developed a collection team dedicated toward phoning people,” he said. “Government gives us about P250 million as subvention, and we raise P600 million internally. The government subvention we don’t use it for rent or other operational costs, it goes to financing projects.”

PROJECT FACILITATION FUND AS GAME CHANGER

CEDA in partnership with Local Enterprise Authority (LEA) recently introduced Project Facilitation Fund, which is a pre-project funding targeting high impact projects with strong focus on agro-processing, manufacturing and tourism. “The Project Facilitation Fund was the minister [Bogolo Kenewendo] vision to develop the SME through her apex model. CEDA falls in the SME apex. We realised that there are certain legal and regulatory requirements, as much as they are good and necessary legal requirements, that have an impact on SMEs,” he said.

“This is so because SMEs are now unable to access capital, as a result of that, they cannot access the market. Consequently people just stay home with dreams, and they cannot do anything. This is what usually lead to people being frustrated and some even accusing CEDA of selling their ideas when somebody succeeds in the same business they wanted to do.”

Thamane noted that Project Facilitation Fund will be in the form money accessed in order to finance certain pre-requisite requirements for certain projects such as  Environmental Impact Assessment (EIA), product testing and processing certification, diligence, valuation reports, soil and water test, borehole test, structural reports among others. Though the initiative can accommodate other projects in exceptional cases, the focus is in high impact projects in agro-processing, manufacturing and tourism.

“If you look at these sectors Batswana are spectators. We have the data that shows how many Batswana are into these sectors. We as CEDA deliberately said we will focus on these sectors,” Thamane said. According to Thamane, CEDA is doing a manufacturing study, which will inform the agency on opportunities avail and what to fund. He said the study will assess the import bill and also offer suggestion on the low hanging fruits.

“We want to move to a situation whereby we direct people where to venture because we are the owners of the funds and we can dictate where the funds go. We want people to use the entire value chain of primary production of goods. There has to be on who grows, then one who processes and finally the one who sells to market,” he said. “One the biggest problems facing SMEs is that, one would want to do everything in the entire value chain. It affects efficiencies. “The next phase, we need to digitize our platforms so that people do not come to our office, they just communicate via our apps. Very soon we will unveil some of those apps. We want to leverage on technology as delivery channel.”

MERGING OF PUBLIC ENTREPRISES  

Ministry of Investment, Trade and Industry last year announced plans to review public enterprises, a process which has various implication which may include possible merging of quasi-government funding institutions such as National Development Bank (NDB), Botswana Development Corporation and CEDA among others.

“It’s a pity that people do not understand development finance. It is a very intruding landscape. You cannot mix micro-business with large businesses because at the end of the day we are going to focus more on large business at the expense of small business or then you focus on small businesses then you forget the large businesses,” he said.

Thamane is of the view that there is a risk of forgetting certain mandates if such was to happen. “I know what CEDA does, I have been here for the past 16 years; I know what LEA does, and I know what other financiers do. What is very critical is that we must be every carefully when making this analysis of merging public enterprises because their mandates were very specific,” he warned.

“It is one thing as for an institution that is not performing as per its mandate. If it does not perform, you do not just say you merge it. You basically say; why is it not performing? Is it the people or is it the mandate? So that is the starting point; If it is the people, you then put the right people so that they can make it perform; if it is the mandate, then review the mandate and then merge it with other institutions.” Thamane contended that the last thing that government needs is to create a monster of an institution, because the bigger the institution, the bigger the process.

APPOINTMENT AS CHAIRMAN OF AADFI

Thamane was elected the Chairman of the Association of African Development Finance Institution (AADFI) at Annual General Assembly held in Malabo Equatorial Guinea in June this year AADFI currently has 82-member institutions and is headquartered in Abidjan, Ivory Coast.
The association is a member of the World Federation of Development Finance Institutions and has observer status at the World Bank. Thamane takes over from the CEO of the Development Bank of South Africa.

“It is much easier for my own country to get capacity building and technical assistance. I can tell you this capacity building and technical assistance have been going to other countries because they attended these events,” said Thamane on the importance of the position.
“’In Botswana we do not attend these events because sometimes people believe it is a waste of resources. Yet we want good things to come to us, but we cannot expect good things to come to us, without being part of these events.”

As the leader of AADFI, Thamane is expected to led a delegation to Frankfurt on green climate fund financing. “It is something I have been advocating for to say, let us have a green fund, and let us have projects that are eco-friendly and encourage them.”

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Bangwato regent speaks ‘respect for Dikgosi’

23rd May 2022
Bangwato

Presidential Commission of Inquiry into the Review of the Constitution held a meeting in Serowe this week. The meeting was to accord Bangwato, just like other tribes, a platform to give their opinions, contributions and what they think is the horse power and limitations of the current Constitution of Botswana.

Bangwato Regent, Kgosi Serogola Seretse said, he is of the understanding that the Commission has not come for anything apart from getting their opinions on how things could be made better. His contribution was that he solely knows of only two social positions in the world; Dikgosi and Pastors. He said other positions are just benedictions. He further urged that, Batswana should respect God’s ordained protocols such as Dikgosi and Pastors.

Seretse pointed out the importance of acknowledging and appreciating Dikgosi as nation builders. He cautioned and warned that, the Commission should ensure that their dealing with Dikgosi is harmonious. He called for an amendment to be made on the ‘National Order of Precedence’ noting that Dikgosi are put at number 11, but should at least be taken a little higher to number 7.

One resident, Tshepo Moloi while giving his contribution said there must be provisions of Social Justice that ensure equal distribution of resources to all citizens. He said this provision should entail an obligation that all citizen have equal opportunities to different Government Initiatives. Moloi substantiated that, all ‘Presidential Commissions’ be engraved on the Constitution

Alfred Thogolwane who is as well a resident of the biggest village in the Central District, pointed out the need for preservation of the country and resources thereof, saying “it must dawn onto all that, the calabash that fetches water for the family cannot fixed once its broken.”  Another resident, Keikantsemang Sebedi advocated for Polygamous marriage, saying that men should marry as many wives as they please. She said there is no need for any socioeconomic assessment done on men who wish to marry more than one wife.

She advised that, the country should benchmark from the Zezuru culture that does it, with no complexities. On the other hand, Sebedi said that, there must be considerations done on the Old Age Pension. She said people who earned P4000 should not receive the old Age Pension upon their fullness of age.  Forshia Koloi called for amendments on Section 77 and all the provisions that speaks to the subject of Bogosi and the powers infested in them. He said they should be made more detailed and avoid ambiguity in clauses.

Mr Tlhaodi said there must be Land Audits done in the country. Citing an example of the Tati Land as one that should be thoroughly audited. He further advised that, Election Day be put on the Calendar. He said, if it happens that the day be a Saturday, there should be some special dispensation for the 7th Day Adventist Church members to take part in voting without compromising on their day of worship. Tlhaodi added that there must be People’s Complaint Commission in the country.

Speakers emphasized the need for the country to review the exercise of ‘Political Party Funding’. They articulated that lack of funding political parties’ results in political parties resorting to finding funds for themselves. They reiterated that sometimes going to the extent of getting funds through illegal means. Bangwato agreed in one accord that they want the President be tried whilst in office if suspected of any criminal offences. This was revealed in their contributions. They pointed out that, the law should not to wait until the end of their tenure.

For his part, the Deputy Chairperson of the Commission Johnson Motshwarakgole expressed gratitude to the residents of Serowe. He applauded women for their kindness saying it is only them, who always take responsibility for doing things amicably in the society.

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Parliament unveils major shake-up plans & reforms

23rd May 2022
Parliament

Parliament has revealed that it plans to rollout a Community Score Card (CSC) exercise as part of sweeping reforms to its role and mandate among others.

The planed shakeup, along with the rollout of CSC will see creation of new Parliamentary Portfolio Committees on Health, HIV&AIDS, Education and Skills Development, Trade and Economic Development, Agriculture, Lands and Housing and Local Governance and Social Welfare.
Parliament informed government ministries and departments that the CSC is a participatory, community based monitoring and evaluation tool that enables citizens to assess the quality of public services and interact with services providers to express their concerns.

According to Parliament, the CSC will assist to inform community members about available services and their entitlements and to solicit their opinions about the accessibility and quality of certain services related to the portfolio committees mentioned.  It said the main objective is for Parliament through identified oversight committees is to conduct a participatory monitoring and evaluating process that puts ownership and responsibility for delivery of services in the hands of both the Government and the service recipients.

“Through scorecards developed around identified sectors and services, communities and implementing departments remain in touch with progress made through the programme delivery cycle and are able to respond timely to bottlenecks,” the National Assembly said.  Some of the measurements and expected outcomes for the rolling out of the CSC include among others, improved monitoring and economic evaluation, to determine the impact of spending, so as to be able to direct resources from where they having the least benefit to those projects and programmes where they will have a larger positive impact.

The National Assembly explained further that this could result in a willingness to close down ineffective programmes and institutions and not to implement projects that do not deliver adequate returns, improved productivity in the public services, especially given the substantial pay increases.

The National Assembly believes that the rolling out of CSC is also expected to result in efficiency savings: many public services and programmes could be delivered more effectively at lower costs, by improving management and accountability, and making use of e-services. “This would yield financial savings that could be used for development programmes or reducing the deficit,” the National Assembly said.

The exercise is also expected to result in “Careful scrutiny of subsidy schemes and termination of those that do not address market failure or assist truly needy Batswana.”  The National Assembly revealed that proposed Parliamentary Portfolio Committee on Health and Wellness has been established in accordance with the Standing of National Assembly of Botswana.  It explained that the mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Ministries, Departments and Agencies with portfolio responsibilities in respect of Health and HIV/AIDS.

“There is need to identify reasons for inefficiency and poor outcomes and ensure that health system reform improve productivity and value for money. Key areas of focus for scorecard, availability of drugs, staffing ratios, accessibility of health services, speciality care and services and sexual reproductively health,” the National Assembly said.

Another proposed Committee is on Local Governance and Social Welfare. The mandate of the Committee is mainly to exercise Parliamentary Oversight and Scrutiny over Government Ministries. Departments and Agencies with Portfolio responsibilities in respect of Local Governance and Social Welfare.

“Strategies under NDP 11 to improve outcomes of social uplifment include; diversification of rural economies, development and support of small businesses, provision of social safety nets, eradication of absolute poverty, provision of quality and equitable education and harmonisation of social protection programmes,” said the National Assembly.  It said social nets need to be improved so as to target these most in need (at present some social safety nets benefit many people who are not the most needy, but also miss out some of those who are needy).

“Some social development policies more broadly should also aim to reduce household vulnerability to shocks such as those arising from fluctuations in agriculture, climate change, incomes and employment and improve their ability to handle shocks, thereby building household resilience,” the National Assembly said.

Another Committee established is on Agriculture, Lands and Housing. The mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Institutions, Departments and Agencies with portfolio responsibilities in respect of Agriculture, Lands and Housing.

The National Assembly said the average growth rate of the agricultural sector since the beginning of National Development Plan 11 (NDP11) (i.e. during the 2017/2018 and 2018/19 financial years) was 2.5 percent, making it the slowest growing sector of the economy, in line with its historical performance.

“Over the same period, its share of GDP has been stagnant at around 2 percent. The sector also contributes job opportunities for about 80 000 adults. Food security has become paramount since the onset of the corona virus pandemic,” the National Assembly said.  The National Assembly said the Government realises the need to increase food production for products in which Botswana has a cooperative advantage such as beef, grains and other horticulture products.

The Committee on Finance, Trade and Economic Development has also been established. One of the mandates of Committee would be to exercise Parliamentary oversight and scrutiny over government ministries, departments and agencies with portfolio responsibilities in respect of Finance, Development, Trade and Industry.

“The sector is at the core of industrialisation aspirations and strategies for economic development in Botswana. Manufacturing in particular can be the driver of economic growth through technological improvements and innovation,” the National Assembly said. Hence, it said, the development of the sector could also foster export diversification and export led-growth in Botswana while benefitting from the African Continental Free Trade Area (AFCFTA).

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Salbany, Bareetsi threaten to sue DIS

23rd May 2022
Salbany Bareetsi

Two senior members of Directorate on Corruption and Economic Crime (DCEC) have threatened legal action against Directorate of Intelligence and Security (DIS), it has transpired. The threat is contained in an answering affidavit of Director General of DCEC, Tymon Katlholo in which he is seeking an interdiction from High Court to stop the DIS from accessing investigation files at his office.

After the DIS detained DCEC officials Joao Salbany and Tsholofelo Bareetsi on December 16, 2021, they filed an official complaint against DIS and some officials. They complained about abuse of office by DIS and five officers. Salbany and Bareetsi also complained about unlawful detention by DIS and unlawful dissemination of classified information contrary to Section 44 of Corruption and Economic Crime Act. “The DIS interviews were premised on information divulged during the course of official DCEC work product, that is the Monday media brief meeting,” they wrote.

They further requested leave to institute a civil suit against the DIS and its officers, and invariably the State for inhuman and degrading treatment they suffered and unlawful detention. They also pondered a declaratory seeking a sanction against the DIS and Botswana Police Service (BPS) and clarification of the role of BPS officers seconded to DIS.

“The envisaged suit against BPS and DIS officers and the DIS will inevitably centre on investigations done by the DCEC and the scope of the protection availed to DCEC officers for conduct done in the course and scope of DCEC official duties.” The duo said it was self-evident from the conduct of the DIS officers that there was nothing urgent about the information required by the DIS, justifying their detention at its Sebele facility from 08:30 hours on December 16, 2021 until 02:00 hours on December 17, 2021.

They reasoned that the information required by the DIS could have been obtained by a simple request to DCEC Director General. “What the DIS did was to seek to intimidate officers of the DCEC whom they knew were carrying out investigations against some of the DIS officers who were part of their investigation team. This turn of events has a chilling effect not only on the functioning of the DCEC but also on the official conduct of officers of the DCEC as to how they conduct their official duties.”

They concluded by stating that in the event the request is granted, they would further request to be advised as to the provision of legal representation as the unalwful detention and the degrading and inhuman treatment by the DIS was in relation to matters conducted by and on behalf of the DCEC.

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