President Mokgweetsi Masisi and his cabinet announced this week that the current immigration policy will be overhauled, and be replaced with a more pro-investment policy, following turbulent investor relations with government during President Lt Gen Ian Khama’s reign.
Masisi addressed the media this week, revealing his roadmap that will guide his decisions during his presidency. Dorcas Makgato, the new Minister of Immigration, Gender and Nationality stated that she has been given a clear mandate by President Masisi to be at the forefront of the immigration system that will be an “enabler” for business instead of frustrating it, as it has been the case. The immigration system was also emphasised by new Minister of Investment, Trade and Industry, Bogolo Kenewendo as an integral part of business reforms that will transform the ease of doing business in Botswana.
This admission by the Masisi government that the country’s immigration system is somewhat troublesome vindicates many strong critics of his predecessor’s immigration policy. One such strong critic of Khama’s immigration policy was Mogae, who called the policy regressive and detrimental to the country’s economic success. In 2014, Mogae launched a scathing attack on Khama’s administration approach when dealing with foreign nationals.
“We were a small country that ran an open economy and open society but our present government has reversed all that. They have expelled over 2000 foreign professionals in six years years,” he said at an Africa Leadership Forum in Dar es Salaam, Tanzania. “In my country however I did my best endeavours by passing laws, but what is happening is that the present regime does not respect the rule of law. It is inward looking when we have prospered in the past because we have used professionals from all countries including Tanzania here.
We trained our people here, and in South Africa, Ghana, and Nigeria. But the present government has reversed all that, so I am not a good example when you are talking about success.” Mogae contended that foreign companies no longer wanted to come to invest in Botswana because they did not feel welcome. He also wanted Botswana to use immigration as a catalyst that will attract skilled foreigners for the benefit of the economy, as it is the case with successful economies such as the United States, Australia and Canada among others.
Mogae’s sentiments were shared by state owned entity, Botswana Investments and Trade Centre’s (BITC), which has been mandated with promoting foreign direct investments and export promotion of locally manufactured goods. In 2016, then Chief Executive Officer (CEO) of BITC, Letsebe Sejoe, when appearing before the Parliamentary Committee on Statutory Bodies and Public Enterprises, revealed that foreign investors were still finding it hard to pick Botswana as an ultimate place to do business because of the complications associated with running businesses in the country.
Sejoe, who has since left BITC under a cloud of controversy told the committee that Botswana is entirely opposite to what it has the world perceiving it as. He listed Permits and VISAs as the biggest challenge facing investors as he noted that delays in issuing the two frustrates inventors who end up going to other countries such as Rwanda, which has built a more conducive environment for investors.
The issue of permits and VISAs is reportedly handled by the Directorate on Intelligence and Security Services (DIS), which has unlimited discretion on who is accepted or rejected. The parliament committee also heard that there is no turnaround time agreed on, and that the premises and VISAs can be rejected without explanation. Sejoe said part of solving the problem is to create a legal framework or policy which will guide certain procedures needed to facilitate business for companies lured by BITC to do business in Botswana.
“For instance, in countries like Mauritius they have what they call silent means approval. If a permit is supposed to be processed within 24 hours and there is no response after that time, the applicant has the right to go ahead because lack of response shows no objection,” he said. “Government does not appreciate the enormous impact foreign direct investment can make in the country’s economy. We have this attitude of treating everyone the same. There is also lack of appreciation of frustration experienced by these investors,” Sejoe told the committee.
Sejoe said not only are new investors facing problems of permits, but that foreign owned companies, some of which have employed hundreds of citizens, are facing the same problem when they want to renew their permits. “Botswana is not an open economy like we say we are to the world. There are people who have been doing business in Botswana for over 30 years and government rejected their application for citizenship over the period and all of a sudden they were told to go,” he said.
“Investors are cagey on this. Some who are already doing business in Botswana are sceptical about expanding their business because their future in Botswana is uncertain. Investors need certainty and some level of predictability,” he further advised. Sejoe narrated that some companies with operational businesses in Botswana but with their directors residing outside Botswana have had their directors’ VISAs rejected when they wanted to attend a business meeting in Botswana; he said this recount proved that Botswana is a difficult environment to do business in.
The immigration policy was central to frustration of many sectors including tourism, which is Botswana’s second highest revenue earner after minerals. DIS’s excessive interference in the process has been mainstay in the previous administration’s immigration policy. WeekendPost understands that the tourism industry has also been hit hard as rejection of VISAs for tourists who want to visit the country has also been noticed. According to Ministry of Environment, Natural Resource Conservation and Tourism, the number of tourists visiting Botswana has been declining in recent years. Tourism is the country’s second biggest contributor to Gross Domestic Product (GDP) after the mining sector.
In 2015, another Public Accounts Committee (PAC) was told that for the financial year ending March 2015, Botswana lost P4 billion worth of investment, as investors who could not secure businesses in Botswana shifted their focus elsewhere. There was concern that Botswana was quickly earning a bad name for its self as its image as a friendly and welcoming nation had started to fade away. Indications were that countries like India, and China, who are one of the biggest investors in Botswana’s economy, were rejected in recent years, compelling them to look elsewhere.
DIS’s involvement in VISA process saw even accounting officers at immigration being left in the dark as to why some foreign nationals were placed on VISA restriction contrary to the agreement between their countries and Botswana. Countries like South Africa, United States, and United Kingdom have a diplomatic agreement with Botswana that their nationals do not require VISAs to visit Botswana.
Notwithstanding that, the department of Immigration has placed some citizens from these countries on VISA restrictions and those nationals have on several occasions been denied entry into Botswana. The PAC members pointed out that this created tensions between the countries implicated and therefore was detrimental to the country’s foreign policy.
As possibly part of transforming the immigration policy, Masisi dropped Edwin Batshu from the Immigration ministry, replacing him with Makgato. Makgato, who has also served previously as Minister of Trade and Industry, was instrumental in dealing with investors during her tenure at the Botswana Export Development Investment Agency, (now BITC), as Chief Executive Officer.Masisi has also relieved the controversial Director General of Directorate on Intelligence and Security (DIS), Colonel Isaac Kgosi from his duties, replacing him with Brigadier Peter Magosi.
As the preparations for the Botswana Democratic Party (BDP) congress are about to kick off, reports on the ground suggest that the party’s Deputy Treasurer Jackdish Shah will not defend the position in August as he contemplates relocation.
According to sources, the businessman who joined the BDP Central Committee in 2015 at the 36th Congress held in Mmadinare is ready to leave the party’s politburo. It is said he long made up his mind not to defend the position last year. A prominent businessman, Shah, when he won the position to assist Satar Dada in 2015 was expected to improve the party’s financial vibrancy. By then the party was under the leadership of Ian Khama.
According to close sources, Shah long decided not to contest because he has fallen out of favour with the party leadership. It is said he took the decision after some prominent businessmen who are BDP members and part of football syndicate decided to push him out and they used their proximity to President Mokgweetsi Masisi to badmouth him hence the decision.
“The fight at the Botswana Football Association (BFA) and Botswana Football League (BFL) has left him alone in the desert and some faces there used their close access to the President to isolate him,” said a source. Media reports say, Shah does not see eye to eye with BFA President MacLean Letshwiti who is also Masisi’s buddy hence the decision.
BFL Chairman Nicholas Zackhem is said to be not in good terms with Shah, who at one point Chaired the then Botswana Premier League (BPL). “He is seriously considering quitting because of what is unfolding at the team (Township Rollers) which is slowly not making financial gains and might be relegated and he wants to sell while it is still worth the investment,” said a highly placed source.
Shah is a renowned businessman who runs internet providing company Zebra net, H &G, game farm in Kasane, cattle farm in Ghanzi region and lot of properties in Gaborone. He also has two hotels in USA, his advisors have given him thumbs up on the possible decision of relocating provided he does not sell some of the investments that are doing well.
Asked about whether he will be contesting Shah could not confirm nor deny the reports. It is said for now it is too early as a public decision will have to be taken after the national council meeting and prior to the national congress. “As a BDP Central Committee member he cannot make that announcement now,” a BDP source said.
BDP is expected to assemble for the National Council during the July holidays while the National Congress is billed for August. It is then that the party will elect a new CC members. The last time BDP held elective congress was at Kang in 2019. The party is yet to issue writ.
The government has failed to implement some commitments and agreements that it had entered into with unions to improve conditions of public servants.
Three years after the government and public made commitments aimed at improving conditions of work and services it has emerged that the government has ignored and failed to implement all commitments on conditions of service emanating from the 2019 round of negotiations.
In its position paper that saw public service salaries being increased by 5%, the government the government has also signalled its intention to renege on some of the commitments it had made. “Government aspires to look into all outstanding issues contained in the Labour Agreement signed between the Employer and recognised Trade Union on the 27th August 2019 and that it be reviewed, revised and delinked by both Parties with a view to agree on those whose implementation that can be realistically executed during the financial years 2022/23, 2023/24 and 2024/25 respectively,” the government said.
Furthermore, in addition to reviewing, revising and de-linking of the outstanding issues contained in the Collective Labour Agreement alluded to above and taking on a progressive proposal, government desires to review revise, develop and implement human resource policies as listed below during the financial year 2022/23,2023/24,2024/25
They include selection and appointment policy, learning and development policy, transfer guidelines, conditions of service, permanent and pensionable, temporary and part time, Foreign Service, expatriate and disciplinary procedures.
In their proposal paper, the unions which had proposed an 11 percent salary increase but eventually settled for 5% percent indicated that the government has not, and without explanation, acted on some of the key commitments from the 2019/2020 and 2021/22 round of negotiations. The essential elements of these commitments include among others the remuneration Policy for the Public Service.
The paper states that a Remuneration Policy will be developed to inform decision making on remuneration in the Public Service. It is envisaged that consultations between the government and relevant key stakeholders on the policy was to start on 1st September 2019, and the development of the policy should be concluded by 30th June 2020.
The public sector unions said the Remuneration Policy is yet to be developed. The Cooperating Unions suggested that the process should commence without delay and that it should be as participatory as it was originally conceived. Another agreement relate to Medical Aid Contribution for employees on salary Grades A and B.
The employer contribution towards medical aid for employees on salary Grades A and B will be increased from 50% to 80% for the Standard Option of the Botswana Public “Officers’ Medical Aid Scheme effective 1st October 2019; the cooperating unions insist that, in fulfilling this commitment, there should be no discrimination between those on the high benefit and those on the medium benefit plan,” the unions proposal paper says.
Another agreement involves the standardisation of gratuities across the Public Service. “Gratuities for all employees on fixed term contracts of 12 months but not exceeding 5 years, including former Industrial class employees be standardized at 30% across the Public Service in order to remove the existing inequalities and secure long-term financial security for Public Service Employees at lower grades with immediate effect,” the paper states.
The other agreement signed by the public sector unions and the government was the development of fan-shaped Salary Structure. The paper says the Public Service will adopt a best practice fan-shaped and overlapping structure, with modification to suit the Botswana context. The Parties (government and unions) to this agreement will jointly agree on the ranges of salary grades to allow for employees’ progression without a promotion to the available position on the next management level.
“The fan-shaped structure is envisaged to be in place by 1st June 2020, to enable factoring into the budgetary cycle for the financial year 2021/22,” the unions’ proposal paper states. It says the following steps are critical, capacity building of key stakeholders (September – December 2019), commission remuneration market survey (3 months from September to November 2019), design of the fan-shaped structure (2 to 3 months from January to March2020) and consultations with all key stakeholders (March to April 2020).
The unions and government had also signed an agreement on performance management and development: A rigorous performance management and reward system based on a 5-point rating system will be adopted as an integral part of the operationalization of the new Remuneration System.
Performance Management and Development (PMD) will be used to reward workers based on performance. The review of the Performance Management System was to be undertaken in order to close the gaps identified by PEMANDU and other previous reports on PMS between 1st September 2019 and 30th June 2020 as follows; internal process to update and revise the current Performance Management System by January 2020.
A job evaluation exercise in the Public Service will also be undertaken to among others establish internal equity, and will also cover the grading of all supervisory positions within the Public Service. Another agreement included overtime Management. The Directorate of Public Service Management (DPSM) was to facilitate the conclusion of consultations on management of overtime, including consideration of the Overtime Management Task Team’s report on the same by 30th November 2019.
A public health expert, Dr Edward Maganu who is also the former Permanent Secretary in the Ministry of Health has said that unlike many who are expressing shock at the population census growth decline results, he is not, because the 2022 results represents his expectations.
He rushed to dismiss the position by Statistics Botswana in which thy partly attributes the low growth rates to mortality rates for the past ten years. “I don’t think there is any undercounting. I also don’t think death rates have much to do with it since the excessive deaths from HIV/AIDS have been controlled by ARVs and our life expectancy isn’t lower than it was in the 1990s,” he said in an interview with this publication post the release of the results.
Preliminary results released by Statistics Botswana this week indicated that Botswana’s population is now estimated to be 2,346,179 – a figure that the state owned data agency expressed worry over saying it’s below their projected growth. The general decline in the population growth rate is attributed to ‘fertility’ and ‘mortality’ rates that the country registered on the past ten years since the last census in 2011.
Maganu explained that with an enlightened or educated society and the country’s total fertility rate, there was no way the country’s population census was going to match the previous growth rates. “The results of the census make sense and is exactly what I expected. Our Total Fertility Rate ( the average number of children born to a woman) is now around 2.
This is what happens as society develops and educates its women. The enlightened women don’t want to bear many children, they want to work and earn a living, have free time, and give their few children good care. So, there is no under- counting. Census procedures are standard so that results are comparable between countries.
That is why the UN is involved through UNFPA, the UN Agency responsible for population matters,” said Maganu who is also the former adviser to the World Health Organisation. Maganu ruled out undercounting concerns, “I see a lot of Batswana are worried about the census results. Above is what I have always stated.”
Given the disadvantages that accompany low population for countries, some have suggested that perhaps a time has come for the government to consider population growth policies or incentives, suggestions Maganu deems ineffective.
“It has never worked anywhere. The number of children born to a woman are a very private decision of the woman and the husband in an enlightened society. And as I indicated, the more the women of a society get educated, the higher the tendency to have fewer children. All developed countries have a problem of zero population growth or even negative growth.
The replacement level is regarded as 2 children per woman; once the fertility level falls below that, then the population stops growing. That’s why developed countries are depending so much on immigration,” he said.
According to him, a lot of developing countries that are educating their women are heading there, including ourselves-Botswana. “Countries that have had a policy of encouraging women to have more children have failed dismally. A good example is some countries of Eastern Europe (Romania is a good example) that wanted to grow their populations by rewarding women who had more children. It didn’t work. The number of children is a very private matter,” said Maganu
For those who may be worried about the impact of problems associated with low growth rate, Maganu said: “The challenge is to develop society so that it can take care of its dependency ratio, the children and the aged. In developed countries the ratio of people over 60 years is now more than 20%, ours is still less than 10%.”
The preliminary results show that Mogoditshane with (88,098) is now the biggest village in the country with Maun coming second (85,293) and Molepolole at third position with 74,719. Population growth is associated with many economic advantages because more people leads to greater human capital, higher economic growth, economies of scale, the efficiency of higher population density and the improved demographic structure of society, among many others.