Citizen Entrepreneurial Development Agency (CEDA) Chief Executive Officer (CEDA), Thabo Thamane has revealed that his organisation is now working on becoming a fully self-sustaining business after a period of relative success under his stewardship, which has seen the institution being able to self-stain operationally.
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. “If SME Bank can add so much value in the economy of Malaysia, so can CEDA. We have got similar mandates but them they are self-sustaining, they do not get funding from government and of course they are much older than us,” Thamane told Weekend Post this week.
“They do come here to look at how we do our business and then advise us on where to improve.” Thamane believes CEDA is not far from achieving its desired feat, even going to the extent of affirming that the institution can even continue to operate even if it were not to get subvention from government, albeit with a limited budget.
“Today as we speak, our salaries, our vehicles, anything that we do as a cost to us we do not pay it from government money. When we receive government subvention all goes to the projects,” Thamane said. “That was the first step, operationally, let us pay our own costs, we achieved it. We even supplement government funding.”CEDA is currently reviewing its guidelines to look at their operational model after being given the green light by Ministry of Investment, Trade and Industry.
“We need to change our model such that we become commercial orientated institution but at the same time being a blend between commercial and developmental such that the commercial arm supplement the development arm,” he argued. When Thamane took over the reign at CEDA, his major focus as a priority was ensuring that he improves the organisation’s collections, a feat which has been achieved amid strenuous effort.
“It was our priority when I took over. I said, you know what, we must ramp up collections,” Thamane said. “Secondly we had an entitlement mentality, people said this is government and will get CEDA loans to finances things like buying vehicles, and there was that culture generally and we had to work around transforming CEDA.” Thamane indicated that ultimately, CEDA had to introduce drastic measures, tightened the processes, but ensured that their default position remain in favour of citizens.
“We formed a dedicated collections team, focusing solely on collections, we improved our collections techniques and it paid dividends because our collections started shooting up. It showed that people we not prioritising CEDA,” observed Thamane. “They paid others first and CEDA last just because we are government owned. And that still exist today but it is now manageable.’’
As part of his transformation, Thamane also formed the credit department, which focused on assessing applications and ensuring that applications fit into the institutions’ guidelines. However, there was a problem with that. As CEDA introduced these business operations, customers started complaining of the turn-around time for assessments of applications, forcing the organisation to create customer advisor unit, which then ensured only applications which meets all necessary requirements pass through for assessment.
Owing to many start-ups funded by CEDA failing to make the grade, Thamane introduced the rehabilitation department, which is focusing on offering diagnosis and prognosis on CEDA funded businesses which are not doing well. This financial year, Government offered CEDA just over P270 million as subvention, but the institution had a staggering P578 million budget for loan disbursement, a phenomenon, that Thamane attributes to strong collection mechanism that CEDA has put in place.
According to Thamane, CEDA’s success has been backed by various factors, including creating a conducive environment for employees as well as training programme. He narrates that each member staff is given an opportunity to advance themselves career wise. An archetypal example is former tea lady, who now works as Accounts Executive at CEDA after being schooled by the institution to acquire an ATT qualification.
However, such investment in staff also has its own downside, with the commercial banks plucking from CEDA staff to boost their ranks. “That is the biggest problem that I have as an institution, because I belong to government I cannot compete with commercial banks in terms of salaries, but I just have to create a conducive environment,” he said.
“It is impossible to compete with commercial banks and we are worried that our employees are being poached by other organisations. Though we are happy for them as it is part of growth on their part and they add value in other part of the society; some of them sometimes even comeback because though we cannot pay more than commercial banks, they like the environment here,” he said.
BOOSTING CEDA BALANCE SHEET
CEDA is currently acquiring land country wide, with Kanye, Palapye, Maun and Kasane already identified for land allocation. “As you become sustainable, we must also improve your balance sheet such that if you want to borrow in the money market, you must be able to show a strong balance sheet. It cannot be just loans without any other assets,” he contended.
ON MERGING OF PUBLIC ENTEPRISES WITH OVERALPPING MANDATES
Thamane has offered his opinion on the anticipated reviewing and possible merging of quasi-government funding institutions such as National Development Bank (NDB), Botswana Development Corporation and CEDA among others. “I know what CEDA does, I have been here for the past 15 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. “We welcome this idea of a possible review of the institutions, and where possible some will be merged. If they decide CEDA merges with other institution, I will take it, “he said.
Here is how one Permanent Secretary encapsulates the clear tension between democracy and bureaucracy in Botswana: “President Mokgweetsi Masisi’s Government is behaving like a state surrounded with armed forces in order to capture it or force its surrender. The situation has turned so volatile, for tomorrow is not guaranteed for us top civil servants.
These are the painful results of a personalized civil service in our view as permanent secretaries”. Although his deduction of the situation may be summed as sour grapes because he is one of the ‘victims’ of the reshuffle, he is convinced this is a perfect description of the rationale behind frequent changes and transfers characterising the current civil service.
The result of it all, he said, is that “there is too much instability at managerial and strategic levels of the civil service leading to a noticeable directionless civil service.” He continued: “Changes and transfers are inevitable in the civil service, but to a permissible scale and frequency. Think of soccer team coach who changes and transfers his entire squad every month; you know the consequences?”
The Tsunami has hit hard at critical departments and Ministries leaving a strong wave of uncertainty, many demoralised and some jobless. In traditional approaches to public administration, democracy gives the goals; and bureaucracy delivers the technical efficiency required for implementation. But the recent moves in the civil service are indicative of conflicting imperatives – the notion of separation between politicians and administrators is becoming blurred by the day.
“Look at what happened to Prisons and BDF where second in command were overlooked for outsiders, and these are the people who had sacrificially served for donkey’s years hoping for a seat at the ladder’s end. The frequency of the changes, at times affecting the same Ministry or individual also demonstrates some level of ineptitude, clumsiness and lack of foresight from those in charge,” remarked the PS who added that their view is that the transfers are not related to anything but “settling scores, creating corruption opportunities and pushing out perceived dissident and former president, Ian Khama’s alleged loyalists and most of these transfers are said to be products of intelligence detection.”
Partly blaming Khama for the mess and his unwillingness to let go, the PS dismissed Masisi for falling to the trap and failing to outgrow the destructive tiff. “Khama is here to stay and the sooner Masisi comes to terms with the fact that he (Masisi) is the state President, the better. For a President to still be making these changes and transfers signals signs of a confused man who has not yet started rolling his roadmap, if at all it was ever there. I am saying this because any roadmap comes with key players and policies,” he concluded.
The Ministry of Health and Wellness seems to be the most hard-hit by the transfers, having experienced three Permanent Secretaries changes within a year and a half. Insiders say the changes have everything to do with the Ministry being the centre of COVID-19 tenders and economic opportunities. “The buck stops with the PS and no right-thinking PS can just allow glaring corruption under his watch as an accounting officer. Technocrats are generally law abiding, the pressure comes with politically appointed leaders racing against political terms to loot,” revealed a director in the Ministry preferring anonymity.
The latest transfer of Kabelo Ebineng she says was also motivated by his firm attitude against the President’s blue-eyed Task Team boys. “The Task Team wants to own the COVID-19 pandemic and government interventions and always cry foul when the Ministry reasserts itself as mandated by law,” said the director who added that Masisi who was always caught between the crossfire decided on sacrificing Ebineng to the joy of his team as they (Task Team) were in the habit of threatening to resign citing Ebineng as the problem.
Ebineng joins the Office of the President as a deputy Coordinator (government implementation and coordination office).The incoming PS is the soft-spoken Grace Muzila, known and described by her close associates as a conformist albeit knowledgeable.
One of the losers in the grand scheme is Thato Raphaka who many had seen as the next PSP because of his experience and calm demeanour following a declaration of interest in the Southern African Development Community (SADC) Secretary post by the current PSP, Elias Magosi.
But hardly ten months into his post, Raphaka has been transferred out to the National Strategy Office in what many see as a demotion of some sort. Other notable changes coming into OP are Pearl Ramokoka formerly with the Employment, Labour and Productivity Ministry coming in as a Permanent Secretary and Kgomotso Abi as director of Public Service Reforms.
One of the ousted senior officers in the Office of the President warned that there are no signs that the changes and transfers will stop anytime soon: “If you are observant you would have long noticed that the changes don’t only affect senior officers but government decisions as well. A decision is made today and the government backtracks on it within a week. Not only that, the President says this today, and his deputy denies it the following day in Parliament,” he warned.
Some observers have blamed the turmoil in the civil service partly to lack of accountable presidential advisers or kitchen cabinet properly schooled on matters of statecraft. They point out that politicians or those peripheral to them should refrain from hampering the technical and organizational activities of public managers – or else the party (reshuffling) won’t stop.
In the view expressed by some Permanent Secretaries, Elias Magosi, has not really been himself since joining the civil service; and has cut a picture of indifference in most critical engagements; the most notable been a permanent secretaries platform which he chairs. As things stand there is need to reconcile the imperatives of democracy and democracy in Botswana. Peace will rein only when public value should stand astride the fault that runs between politicians and public managers.
Former Permanent Secretary to the President, Carter Morupisi, is fighting for survival in a matter in which the State has charged him and his wife, Pinnie Morupisi, with corruption and money laundering.
Morupisi has joined a list of prominent figures that served in the previous administration and who have been accused of corruption during their tenure in office. While others have been emerging victorious, Morupisi is yet to find that luck. The High Court recently dismissed his no case to answer application.
United States President, Joe Biden, is faced with a decision to make relating to the Covid-19 vaccine intellectual property after 175 former world leaders and Nobel laurates joined the campaign urging the US to take “urgent action” to suspend intellectual property rights for Covid-19 vaccines to help boost global inoculation rates.
According to the world leaders, doing so would allow developing countries to make their own copies of the vaccines that have been developed by pharmaceutical companies without fear of being sued for intellectual property infringements.
“A WTO waiver is a vital and necessary step to bringing an end to this pandemic. It must be combined with ensuring vaccine know-how and technology is shared openly,” the signatories, comprising more than 100 Nobel prize-winners and over 70 former world leaders, wrote in a letter to US President Joe Biden, according to Financial Times.
A measure to allow countries to temporarily override patent rights for Covid related medical products was proposed at the World Trade Organization by India and South Africa in October, and has since been backed by nearly 60 countries.
Former leaders who signed the letter included Gordon Brown, former UK Prime Minister; François Hollande, former French President; Mikhail Gorbachev, former President of the USSR; and Yves Leterme, former Belgian Prime Minister.
In their official communication, South Africa and India said: “As new diagnostics, therapeutics and vaccines for Covid-19 are developed, there are significant concerns [about] how these will be made available promptly, in sufficient quantities and at affordable prices to meet global demand.”
While developed countries have been able to secure enough vaccine to inoculate their citizens, developing countries such as Botswana are struggling to source enough to swiftly vaccine their citizens, something which world leaders believe it would work against global recovery therefore proving counter-productive.
Since the availability of vaccines, Botswana has been able to secure only 60 000 doses of vaccines, 30 000 as donation as from the Indian government, while the other 30 000 was sourced through COVAX facility. Canada, has pre-ordered vaccines in surplus and it will be able to vaccinate each of its citizens six times over. In the UK and US, it is four vaccines per person; and two each in the EU and Australia.
For vaccines produced in Europe, developing countries are forced to pay double what European countries are paying, making it more expensive for already financially struggling economies. European countries however justify the price of vaccines and that they deserve to buy them cheap since they contributed in their development.
It is evident that vaccines cannot be made available immediately to all countries worldwide with wealthy economies being the only success story in that regard, something that has been referred to as a “catastrophic moral failure”, head of the World Health Organisation (WHO), Tedros Adhanom Ghebreyesus.
The challenge facing developing countries is not only the price, but also the capacity of vaccine manufactures to be able to do so to meet global demand within a short time. The proposal for a patent waiver by India and South Africa has been rejected by developed countries, known for hosting the world leading pharmaceutical companies such US, European Union, the United Kingdom, and Switzerland.
According to the Financial Times, US business groups including pharmaceutical industry representatives, have urged Biden to resist supporting a waiver to IP rules at the WTO, arguing that the proposal led by India and South Africa was too “vague” and “broad”.
The individuals who signed the letter, including Nobel laureates in economics as well as from across the arts and sciences, warned that inequitable vaccine access would impact the global economy and prevent it from recovering.
“The world saw unprecedented development of safe and effective vaccines, in major part thanks to US public investment,” the group wrote. “We all welcome that vaccination rollout in the US and many wealthier countries is bringing hope to their citizens.”
“Yet for the majority of the world that same hope is yet to be seen. New waves of suffering are now rising across the globe. Our global economy cannot rebuild if it remains vulnerable to this virus.” The group warned that fully enforcing IP was “self-defeating for the US” as it hindered global vaccination efforts. “Given artificial global supply shortages, the US economy already risks losing $1.3tn in gross domestic product this year.”