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LEA retrenches over 100 employees

Permanent Secretary in the Ministry of Investment Trade & industry (MITI) Peggy Serame has confirmed to this publication that Local Enterprise Authority (LEA) is going through massive restructuring and remodeling exercises in a bid to enhance the organization’s efficiency and service delivery mechanisms.

Serame revealed that the organisation which is predominantly mandated with developing the Local Small Medium Enterprises (SMMEs) under her ministry has been introspecting itself at the instruction of government. All employees at LEA were recently served with notice letters informing them of the looming exercise. “The whole exercise which has been ongoing for several months is nearing completion, before end of this month we will be having a documented report on that,” she said.

Serame explained that the interest of her ministry is to have effective parastatals that serve their mandates better with reasonable resources and satisfactory return on investment. “We have given them our desirable outcome as far as the amount of annual subvention we want to channel to invest on LEA from now on going forward and they have been finding best possible ways of meeting that, we obviously want to scale it down,” she said. She indicated that the restructuring undertaking will also see LEA offloading some of its assets.

 “We are looking at the organization downsizing and releasing some of its redundant assets such as vehicles, equipment non performing machinery at some centers , what is basically going on is that some LEA service centers as well as operations have not been outputting satisfactory returns compared to the amount of investment injected, so  after this exercises LEA will resemble into a more effective model with robust service delivery structures in place,” she said.

Serame explained that there has been series of consultations with LEA employees and their Unions to prepare them for possible retrenchments.  “Restructuring obviously comes with retrenching some workers because after this intensive scan on LEA operations it will be realized there is some human resources duplication and redundancy which will results in unfortunate outcome of relieving some workers off duty,” she said. WeekendPost has been informed that Ministry of Investment, Trade & Industry wants LEA to reduce its wage bill.

Currently LEA spends over 90 million Pula annually on staff remunerations, cost & compensations  .Latest figures from the parastatal annual report indicates that LEA had a staff complement of  over 300  across its 10 Divisions, 13 Branches and four Incubators, against an establishment of 349. On annual basis government through the Ministry of Investment, Trade & Industry’s recurrent budget funds LEA with subvention of around 140 million pula, this according to MITI will be reduced going forward.

Assistant Minister in the Ministry Moisiraela Master Goya underscored recently at a press conference that his Ministry‘s desire was to reduce government subvention funds allocated to parastatals.  “We have been feeding them with tens of millions for far too long, it is time to review and introspect to analyses if we indeed getting desirable return on investment” he said. Goya is of the view that some parastatals within his ministry should be restructured to graduate them to at least a business model where they can meet half of their budget.

 “After reviewing and restructuring these parastatals from within and actually downsizing some of them to reduce their annual expenses, then a window for merging some will clearly emerge, because we do not want the merging to inherit exorbitant operation expenses” he said. LEA, which was established in accordance with the Small Business Act of 2008 to promote entrepreneurship and Small, Medium and Micro Enterprises (SMME) development, also finances its operations from revenue capital grants amortization and other internal operating income which collectively amount to an average of 10 million pula annually.

Serame told WeekendPost that after extensive review of LEA operations which has been undertaken internally by the organization itself, the Board of Directors will after meeting this week present to the Ministry what they have agreed as the ideal model and scope of operation taking in to account a number of issues including the employee retrenchments. “I am aware the Board is meeting this week , they will document and report to us , we will further deliberate on what they are proposing and make a decision and approve accordingly after further consultation” she said.

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Masisi to dump Tsogwane?

28th November 2022

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.

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African DFIs gear to combat climate change

25th November 2022

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.

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TotalEnergies Botswana launches Road safety campaign in Letlhakeng

22nd November 2022

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.

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