Local Authorities play a critical role in implementing government policies and delivering allocated national resources to the rural settlers and ordinary citizenry, therefore they have to be capacitated and well-resourced to be in a position to unearth the economic potential of their constituents better and effectively deliver government programs.
This emerged at the Botswana Association of Local Authorities (BALA) National Members Assembly held in Gaborone this week. When officially opening the two day meet Vice President Slumber Tsogwane said transformation of local authorities to resource and capacitate them with strategic and efficient service delivery mechanisms cannot be over emphasised. Tosgwane, who was responsible for local authorities as Minister of Local Government and Rural Development prior to taking up He noted that one of the cardinal requirements was transforming the institutions leadership.
He said today ‘s local authorities were faced with challenges of localizing development agendas explaining that transformative leadership was key to strengthening local democracy , mitigate in administrative disputes and management challenges as well as promote good governance. Vice President underscored that local government leaders need to be academically equipped to be able to mitigate the challenges that come with leadership demand.
“There is need for local government discipline to develop training modules to equip local government leadership and its institution practitioners, we need transformational leadership that comes with imaginative and creative solutions to local community problems” he said. Further deliberations at the BALA assembly also suggested that local authorities have to be autonomous so as to actually be able to make investment decisions and better tap into the ideals of special economic zones, Public Private Partnerships and other developmental agendas for major infrastructural developments and significant economic undertakings.
The current government structure houses Local Authorities under one Ministry , being Local Government & Rural Development .Central government makes all key economic decisions and administration undertakings ranging from economic planning, financial management and national resources allotments. Local authorities being implementers of government policies and actual resident administrators do so with little input on budgetary processes, developmental planning and domestic resources mobilization.
This was reiterated as an impediment that does not only make local authorities toothless spectators in economic planning and policy formulation but also result in poor implementation of the very government initiatives. Observers not that dependence of local authorities on central government for development process planning, maintenance, human resources recruitment and training needs, is an impediment to efficient implementation of plans and economic policies. Planning by local authorities is observed as frustrating as it is not normally clear how much funds a district or local authority will be allocated from the national treasury.
Vice President Tsogwane said localising sustainable development goals, national economic framework, urban development plans requires a decentralized government administration system. “We need to identify and close on bottlenecks that are currently hindering the decentralization policy because local authorizes are key partners in implementation of government economic programs” he said.
Tsogwane revealed that decentralisation has been identified as critical in realising the vision of a fairer, more equitable and sustainable future for all, explaining that President Masisi’s administration has prioritised making the vision a reality. Strategic public administration experts note that decentralising government administration and giving local authorities and district councils more administrative powers and economic decision making control automatically enhances their autonomy and confidence in economic undertakings.
“Local administrative set ups should have full authority in making key economic decisions from land usage and allocation ,investments approvals, mega development projects undertakings and intra-national trade regulations ,that will not only improve service delivery in their respective districts but also unleash various economic potential as per different district geographical setup, climate conditions and natural resources available,” shared Janoslaw Wleczork Wleczork economist and public administration expert at the International Monetary Fund(IMF).
A government administration set-up in which agricultural policies, trade regulations, investment decision making to name a few are collectively crafted, processed and disseminated from one centre without an immures and intense consideration of different regional factors from district to district has been noted as a an array of bottlenecks that does not only cause delay in service delivery but deters full utilisation of natural resources and economic ability of the respective districts.
Wleczork highlighted in various IMF commentary on Botswana , that for developing country with an upcoming economy that Botswana is, decentralization is not only a reform strategy to be adopted but it is increasingly seen as an integral part of the development process. “Some of the factors that cartelized developing countries to consider decentralization are among others the anticipated improved efficiency, improved governance & equal resources distribution” he shared.
However in Botswana despite the previous decentralisation policy adoption made over years since independence, the powered institutions being local authorities and district council remain economic toothless entities. According to a research conducted by Theophilus Tebetso Tshukudu published in May 2014 on decentralisation of public administration , the decentralisation process adopted appears to have been un-integrated and uncoordinated as delegation of economic powers and developmental duties by the central government to lower levels appears illusive.
“Some of the functions that are ostensibly decentralised to the local authorities are actually not, or are only partially so. These include financial management, human resources management, and management of information technology services” observed Tshukudu. The research highlights that regional development planning has been faced with a number of limitations, constraints and challenges.
The constraints relate to plan formulation, implementation and monitoring, administrative guidance, vertical and horizontal communication that has coursed a gap between the intension of decentralisation and the reality on the ground. Tshukudu observes that Decentralization must be done earnestly and with strategic plan put in place for its implementation.“The central government must ensure through its various mechanisms the effective cascading of ownership and custodianship by the local authority on issues of economic and development planning” he said.
The study further suggested that it is however very imperative for Local Authorities themselves to rise to the occasion and strengthen their economic structures and development committees. “District paramount chieftaincy, District councils through council secretariats and political leadership need to come up with economic development strategies and plans that are integrated and aligned to central government National Development Plans at the same time fitting their own district and regional developmental requisites”
“Every District in Botswana has different vegetation, climate conditions and way of life of the inhabitant people, it is entirely upon the Local Authorities to craft economic undertakings that can develop their district and generate revenue for the authority. That includes taking advantage of available opportunities to attract investors, tap into public private partnership (PPPs) projects to enhance infrastructural development and business facilitations which will eventually result in employment creation and improved lives of their local people” recommended Tshukudu.
Newly established wholly indigenous citizen owned retail chain Payless Retail (PTY) Ltd is set to partake in the first session of Botswana Stock Exchange (BSE)’s Tshipidi Mentorship Program (TMP) on Monday June 29th.
The TMP aims to train and capacitate SMEs so they can operate as corporates and eventually list on the local bourse. According to local bourse, BSE, the program aims to provide practical training to potential issuers through a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.
Payless Retail is a newly established supermarket chain whose mission is to become a convenient one-stop shopping destination as it is one of the Botswana oldest retailing brands. It started off as Corner Supermarket in January 1976, and to date boasts of nine stores in, among others, Gaborone, Mochudi, Molepolole and Tlokweng. Payless was recently acquired by Ellis Retail Group, which is led by businessman Elliot Moshoke.
The takeover catapulted Ellis Retail to the envious position of being the first wholly indigenous owned major retail chain. “We jumped at this opportunity because it gave us a chance to prove to Batswana that the retail business is open and lucrative.”
The objective is to create a proudly Botswana retail chain that fully supports our national Vision, economic development and citizen economic empowerment ambitions,” Moshoke told BusinessPost.
He further emphasized that Batswana are capable and able to run large scale businesses hence they need to accept invite foreign investors who will come in to support us not take the business. “Our win as Payless in the Fast Moving Consumer goods (FMCG) industry is a win for Batswana. We need their support in this difficult and challenging journey.
As you are aware, Payless is the only retail chain in the hands of Batswana ba Sekei. We need to take advantage of this to generate employment and create small businesses in retail and Agri businesses,” he explained.
The retailer has also partnered with Botswana Investment & Trade Center (BITC) on their #PushaBW campaign with a view to initiating earnest engagement with local producers to iron out bottlenecks and ensure seamless trading.
“Local producers have to be part of the phenomenal growth of the Payless brand. This will in turn facilitate employment creation and economic growth. We did this because we have the utmost respect for local manufacturers and producers,” he mentioned.
Payless is currently restocking all of its stores; a development that Moshoke says is testament to the retailer’s commitment to growing the brand and ensuring continuity of business. He further revealed that renowned retail suppliers like PST and CA Sales have reignited their trust in Payless, opening their doors for Payless as they have faith in the retailer’s new owners.
The takeover has reportedly saved more than 200 jobs and gave a new lease of life to the previously fledging Payless brand. According to a press release from the management team, the Payless work forces are also extremely excited about what the future holds. The TMP is a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.
The program is administered by experts within the listing ecosystem and seeks to bring the potential issuers closer to the listings advisers, investors and leaders of already listed companies. “As a strategic initiative, the BSE decided to set up this mentorship program in a bid to assist SMEs to strategize, corporatize and acclimatize in order to list to access equity finance and expand operations,” said the BSE.
The TMP will avail to SMEs practical insights, knowledge and feedback from institutional investors, increased awareness of the BSE listing requirements as well as an intimate network of advisors and CEOs of listed companies. After training, Payless will graduate with improve governance structures and better knowledge of articulating its business strategy. The retailer will also gain increased visibility through BSE marketing platforms.
Despite Covid-19 interrupting trade worldwide, exporting companies in Botswana which benefited from the Botswana Investment and Trade Centre (BITC) services realised P2.96 billion in export earnings during the period from April 2020 to March 2021.
In the preceding financial year, the sale of locally manufactured products in foreign markets had registered export revenue of P2, 427 billion against a target of P3, 211 billion BITC, which celebrates 10 years since establishment, continues to carry out several initiatives targeted towards expanding the Botswana export base in line with Botswana’s desire to be an export led economy, underpinned by a robust export promotion programme in line with the National Export Strategy.
The main products exported were swamp cruiser boats, pvc tanks and pvc pipes, ignition wiring sets, semi-precious stones, veterinary medicines, hair braids, coal, textiles (towels and t-shirts) and automobile batteries. These goods were destined mainly for South Africa, Zimbabwe, Austria, Germany, and Namibia.
With Covid-19 still a problem, BITC continues to roll out targeted virtual trade promotion missions across the SADC region with a view to seeking long-lasting market opportunities for locally manufactured products.
Recently, the Centre facilitated participation for Botswana companies at the Eastern Cape Development Council (ECDC) Virtual Export Symposium, the Botswana-Zimbabwe Virtual Trade Mission, the Botswana-Zambia Virtual Trade Mission, Botswana-South Africa Virtual Buyer/Seller Mission as well as the Botswana-Namibia Virtual Trade Mission.
BITC has introduced an e-Exporting programme aimed at assisting Botswana exporters to conduct business on several recommended e-commerce platforms. Due to the advent of COVID-19, BITC is currently promoting e-trade among companies through the establishment of e-commerce platforms and is assisting local companies to embrace digitisation by adopting e-commerce platforms to reach export markets as well as assisting local e-commerce platform developers to scale up their online marketplaces.
During the 2019/2020 financial year, BITC embarked on several initiatives targeted at growing exports in the country; facilitation of participation of local companies in international trade platforms in order to enhance export sales of local products and services into external markets.
BITC also helped in capacity development of local companies to compete in global markets and the nurturing of export awareness and culture among local manufacturers in order to enhance their skills and knowledge of export processes; and in development and implementation of trade facilitation tools that look to improve the overall ease of doing business in Botswana.
As part of building export capacity in 2019/20, six (6) companies were selected to initiate a process to be Organic and Fair Trade Certified. These companies are; Blue Pride (Pty) Ltd, Motlopi Beverages, Moringa Technology Industries (Pty) Ltd, Sleek Foods, Maungo Craft and Divine Morula.
In 2019 seven companies which were enrolled in the Botswana Exporter Development Programme were capacitated with attaining BOBS ISO 9001: 2015 certification. Three (3) companies successfully attained BOBS ISO 9001:2015 certification. These were Lithoflex (Pty) Ltd, General Packaging Industries and Power Engineering.
BITC’s annual flagship exhibition, Global Expo Botswana (GEB) to create opportunities for trade and strategic synergies between local and international companies. The Global Expo Botswana) is a premier business to business exposition that attracts FDI, expansion of domestic investment, promotion of exports of locally produced goods and services and promotion of trade between Botswana and other countries.
The portal also provides information on; measures, legal documents, and forms and procedures needed by Botswana companies that intend on doing business abroad. BITC continues to assist both potential and existing local manufacturing and service entities to realise their export ambitions. This assistance is pursued through the ambit of the Botswana Exporter Development Programme (BEDP) and the Trade Promotion Programme.
BEDP was revised in 2020 in partnership with the United Nations Development Programme (UNDP) with a vision to developing a diversified export-based economy. The programme focuses mostly on capacitating companies to reach export readiness status.
Prices for goods and services in this country continue to increase, with the latest figures from Statistics Botswana showing that in May 2022, inflation rate rose to 11.9 percent from 9.6 percent recorded in April 2022.
According to Statistics Botswana update released this week, the largest upward contributions to the annual inflation rate in May 2022 came from increase in the cost of transport (7.2 percent), housing, water, electricity, gas & other Fuels (1.4 percent), food & non-alcoholic beverages (1.1 percent) and miscellaneous goods & services (0.8 percent).
With regard to regional inflation rates between April and May 2022, the Rural Villages inflation rate went up by 2.5 percentage points, from 9.6 percent in April to 12.1 percent in May 2022, according to the government owned statistics entity.
In the monthly update the entity stated that the Urban Villages inflation rate stood at 11.8 percent in May 2022, a rise of 2.4 percentage points from the April rate of 9.4 percent, whereas the Cities & Towns inflation rate recorded an increase of 1.9 percentage points, from 9.9 percent in April to 11.8 percent in May.
Commenting on the national Consumer Price Index, the entity stated that it went up by 2.6 percent, from 120.1 in April to 123.2 in May 2022. Statisticians from the entity noted that the transport group index registered an increase of 7.3 percent, from 134.5 in April to 144.2 in May, mainly due to the rise in retail pump prices for petrol and diesel by P1.54 and P2.74 per litre respectively, which effected on the 13th of May 2022.
The food & non-alcoholic beverages group index rose by 2.6 percent, from 118.6 in April 2022 to 121.6 in May 2022 and this came as a result of increase in prices of oils & fats, vegetables, bread & cereal, mineral waters, soft drinks, fruits & vegetables juices, fish (Fresh, Chilled & Frozen) and meat (Fresh, Chilled & Frozen), according to the Statisticians.
The Statisticians said the furnishing, household equipment & routine maintenance group index rose by 1.0 percent, from 111.6 in April 2022 to 112.7 in May 2022 and this was attributed to a general increase in prices of household appliances, glassware, tableware & household utensils and goods & services for household maintenance.
The prices for clothing & footwear group index moved from 109.4 to 110.4, registering a rise of 0.9 percent during the period under review. Bank of Botswana has projected higher inflation in the short term, associated with the likelihood of further increases in domestic fuel prices in response to persistent high international oil prices and added that the possible increase in public service salaries could add also upward pressure to inflation in this country.