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Masisi’s prophecy: Ex-BDP members will re-join

Vice President Mokgweetsi Masisi, who is also the Botswana Democratic Party (BDP) Chairman, has promised party faithful that former party members who left to join the opposition will soon retrace their steps to the ruling party.

Masisi, who was speaking at the memorial of the slain Mochudi East legislator, Isaac Davids, was perhaps living up to the words of outgoing President Lt Gen Ian Khama who said said, “Go tsile go nna monate” during the leadership of his successor.
“They are troubled on the other side [opposition]. It is always nice to be home. Fa o sa utlwe dikgang tse o tla salwa morago ke dikgaba,” he said. “Many like Davids [Isaac] are coming back home. It is not a matter of why or how. It is a matter of when.”

When narrating how, the late Mochudi East MP ended up at BDP, Masisi said it all began with when he visited Letsibogo la Phalane in Mochudi to appreciate the effort of the community after they built a foot bridge that crosses Notwane River at Phalane in collaboration with DeWet Drilling Company.

At that encounter, where he met among others chieftainship in Kgatleng; senior government officials as well as other members of the polity, he came in contact with Davids where they had a hearty discussion over various issues. Since that day, Davids started drifting towards Masisi until he decided to re-join. Tati East legislator, Samson Moyo Guma, an influential member in the Masisi circle, who facilitated Davids’ comeback said he “received a call from Davids who informed him of his desire to return to the party.”

“He told me that he was impressed by the leadership of Masisi and that he wanted to help him in 2019,” said Guma. Davids was also remembered as a staunch factionist who always stuck to his gun wherever he believed in something.
The outspoken legislator was a staunch member of Barataphathi faction in his first stint in the BDP , and the founding member of Botswana Movement for Democracy (BMD), a BDP splinter party formed in 2010 at the height of factional tension in the ruling party.

He first became a member of parliament in 1999, when he dethroned Isaac Mabiletsa of the opposition Botswana Congress Party (BCP). Mabiletsa had initially won the constituency in 1994 under the Botswana National Front (BNF) but defected to the splinter party in 1998. In 2004, Mabiletsa back with BNF, reclaimed the constituency from Davids. The two will battle it out again in 2009, with Mabiletsa again coming on top. However, in 2014 Davids bounced back to parliament this time under the ticket of Umbrella for Democratic Change (UDC).

Because of his association with Barataphathi, Davids became close to Tshelang Masisi, the late elder brother to Mokgweetsi Masisi. Tshelang, who was a long time MP for Francistown West was a member of Barataphathi faction. “On his death bed, during his final days, my brother [Tshelang] advised me to keep in touch with Davids. He told me that he is a good man and I should keep him within my reach,” said Masisi poignantly.

Masisi said he has always wished Davids would re-join BDP and he is happy that he dies a member of BDP. “I urge you to be like Davids. He was a brand that all of us wanted to associate with. Even when he was in the opposition, we used to salivate at him,” said Masisi.

Both Masisi and Guma regret that Davids departed without being officially welcomed into the BDP fold as he had wished. Guma said a day before Davids met his untimely death, he called him inquiring about his pending official welcome. One thing that cropped out at the memorial service was Davids’ love for his tribe’s chieftainship, and he was troubled by the way things turned out between government and Bakgatla.

In 2016, when debating a motion tabled by Francistown West Member of Parliament, Ignatius Moswaane on improvement of Dikgosi’s conditions of service, Davids called on Minister of Local Government and Rural Development Slumber Tsogwane to apologise to Bakgatla over the ill-treatment of Kgosi Kgafela Kgafela II.

Davids contended that the two previous Ministers of Local Government and Rural Development had disrespected Bakgatla when they derecognized their chief. He then said, until Tsogwane found the courtesy to visit Bakgatla to make amends, the dust will never settle and the animosity between government and Bakgatla will continue unabated.

According to Masisi, there was assurance on his part to Davids that the rift would be dealt with sooner or later. Part of the reconciliation efforts saw Mmusi Kgafela, the younger brother to the BaKgatla chief Kgafela Kgafela II being welcomed into the BDP and today he is battling Batlhalefi Leagajang in the BDP primaries for Kgatleng West parliamentary seat.

As part of the process to settle the dust, Tsogwane has even re-instated Bana Sekai as Bakgatla Deputy Chief as Kgosi Kgafela has directed. Tsogwane had also hinted that Kgosi Kgafela and President Khama are having secret talks to resolve some of the outstanding disputes. Davids died on the 14th of January, after being stabbed by two of his farmer in an affray. He will be laid to rest today (Saturday) in his home village of Mochudi.

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Mowana Mine to open, pay employees millions

18th January 2022
Mowana Mine

Mowana Copper Mine in Dukwi will finally pay its former employees a total amount of P23, 789, 984.00 end of this month. For over three years Mowana Copper Mine has been under judicial management. Updating members, Botswana Mine Workers Union (BMWU) Executive Secretary Kitso Phiri this week said the High Court issued an order for the implementation of the compromise scheme of December 9, 2021 and this was to be done within 30 days after court order.

“Therefore payment of benefits under the scheme including those owed to Messina Copper Botswana employees should be effected sometime in January latest end of January 2022,” Kitso said. Kitso also explained that cash settlement will be 30 percent of the total Messina Copper Botswana estate and negotiated estate is $3,233,000 (about P35, 563,000).

Messina Copper was placed under liquidation and was thereafter acquired by Leboam Holdings to operate Mowana Mine. Leboam Holdings struck a deal with the Messina Copper’s liquidator who became a shareholder of Leboam Holdings. Leboam Holdings could not service its debts and its creditors placed it under provisional judicial management on December 18, 2018 and in judicial management on February 28, 2019.

A new company Max Power expressed interest to acquire the mining operations. It offered to take over the Mowana Mine from Leboam Holdings, however, the company had to pay the debts of Leboam including monies owed to Messina Copper, being employees benefits and other debts owed to other creditors.

The monies, were agreed to be paid through a scheme of compromise proposed by Max Power, being a negotiated payment schedule, which was subject to the financial ability of the new owners. “On December 9, 2021, Messina Copper liquidator, called a meeting of creditors, which the BMWU on behalf of its members (former Messina Copper employees) attended, to seek mandate from creditors to proceed with a proposed settlement for Messina Copper on the scheme of compromise. It is important to note that employee benefits are regarded as preferential credit, meaning once a scheme is approved they are paid first.”

Negotiated estate is P35, 563,000

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Councilors’ benefits debacle-savingram reveals detail

18th January 2022

A savingram the Ministry of Local Government and Rural Development sent to Town Clerks and Council Secretaries explaining why councilors across the country should not have access to their terminal benefits before end of their term has been revealed.

The contents of the savingram came out in the wake of a war of words between counselors and the Ministry of Local Government and Rural Development. The councilors through the Botswana Association of Local Authorities (BALA) accuse the Ministry of refusing to allow them to have access to their terminal benefits before end of their term.

This has since been denied by the Ministry.  In the savingram to town councils and council secretaries across the country, Permanent Secretary in the Ministry of Local Government and Rural Development Molefi Keaja states that, “Kindly be advised that the terminal benefits budget is made during the final year of term of office for Honorable Councilors.”  Keaja reminded town clerks and council secretaries that, “The nominal budget Councils make each and every financial year is to cater for events where a Councilor’s term of office ends before the statutory time due to death, resignation or any other reason.”

The savingram also goes into detail about why the government had in the past allowed councilors to have access to their terminal benefits before the end of their term.  “Regarding the special dispensation made in the 2014-2019, it should be noted that the advance was granted because at that time there was an approved budget for terminal benefits during the financial year,” explained Keaja.  He added that, “Town Clerks/Council Secretaries made discretions depending on the liquidity position of Councils which attracted a lot of audit queries.”

Keaja also revealed that councils across the country were struggling financially and therefore if they were to grant councilors access to their terminal benefits, this could leave their in a dire financial situation.  Given the fact that Local Authorities currently have cash flow problems and budgetary constraints, it is not advisable to grant terminal benefits advance as it would only serve to compound the liquidity problems of councils.

It is understood that the Ministry was inundated with calls from some Councils as they sought clarification regarding access to their terminal benefits. The Ministry fears that should councils pay out the terminal benefits this would affect their coffers as the government spends a lot on councilors salaries.

Reports show that apart from elected councilors, the government spends at least P6, 577, 746, 00 on nominated councilors across the country as their monthly salaries. Former Assistant Minister of Local Government and Rural Development, Botlogile Tshireletso once told Parliament that in total there are 113 nominated councilors and their salaries per a year add up to P78, 933,16.00. She added that their projected gratuity is P9, 866,646.00.

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Households spending to drive economic recovery

17th January 2022

A surge in consumer spending is expected to be a key driver of Botswana’s economic recovery, according to recent projections by Fitch Solutions. Fitch Solutions said it forecasts household spending in Botswana to grow by a real rate of 5.9% in 2022.

The bullish Fitch Solutions noted that “This is a considerable deceleration from 9.4% growth estimated in 2021, it comes mainly from the base effects of the contraction of 2.5% recorded in 2020,” adding that, “We project total household spending (in real terms) to reach BWP59.9bn (USD8.8bn) in 2022, increasing from BWP56.5bn (USD8.3bn) in 2021.”  According to Fitch Solutions, this is higher than the pre-Covid-19 total household spending (in real terms) of P53.0 billion (USD7.8bn) in 2019 and it indicates a full recovery in consumer spending.

“We forecast real household spending to grow by 5.9% in 2022, decelerating from the estimated growth of 9.4% in 2021. We note that the Covid-19 pandemic and the related restrictions on economic activity resulted in real household spending contracting by 2.5% in 2020, creating a lower base for spending to grow from in 2021 and 2022,” Fitch Solutions says.

Total household spending (in real terms), the agency says, will increase in 2022 when compared to 2021. In 2021 and 2022, total household spending (in real terms) will be above the pre-Covid-19 levels in 2019, indicating a full recovery in consumer spending, says Fitch Solutions.  It says as of December 6 2021 (latest data available), 38.4% of people in Botswana have received at least one vaccine dose, while this is relatively low it is higher than Africa average of 11.3%.

“The emergence of new Covid-19 variants such as Omicron, which was first detected in the country in November 2021, poses a downside risk to our outlook for consumer spending, particularly as a large proportion of the country’s population is unvaccinated and this could result in stricter measures being implemented once again,” says Fitch Solutions.

Growth will ease in 2022, Fitch Solution says. “Our forecast for an improvement in consumer spending in Botswana in 2022 is in line with our Country Risk team’s forecast that the economy will grow by a real rate of 5.3% over 2022, from an estimated 12.5% growth in 2021 as the low base effects from 2020 dissipate,” it says.

Fitch Solutions notes that “Our Country Risk team expects private consumption to be the main driver of Botswana’s economic growth in 2022, as disposable incomes and the labour market continue to recover from the impacts of the Covid-19 pandemic.”
It says Botswana’s tourism sector has been negatively impacted by the Covid-19 pandemic and the related travel restrictions.

According to Fitch Solutions, “The emergence of the Omicron variant, which was first detected in November 2021, has resulted in travel bans being implemented on Southern African countries such as South Africa, Botswana, Lesotho, Namibia, Zimbabwe and Eswatini. This will further delay the recovery of Botswana’s tourism sector in 2021 and early 2022.”  Fitch Solutions, therefore, forecasts Botswana’s tourist arrivals to grow by 81.2% in 2022, from an estimated contraction of 40.3% in 2021.

It notes that the 72.4% contraction in 2020 has created a low base for tourist arrivals to grow from.  “The rollout of vaccines in South Africa and its key source markets will aid the recovery of the tourism sector over the coming months and this bodes well for the employment and incomes of people employed in the hospitality industry, particularly restaurants and hotels as well as recreation and culture businesses,” the report says.

Fitch Solutions further notes that with economies reopening, consumers are demanding products that they had little access to over the previous year. However, manufacturers are facing several problems.  It says supply chain issues and bottlenecks are resulting in consumer goods shortages, feeding through into supply-side inflation.  Fitch Solutions believes the global semiconductor shortage will continue into 2022, putting the pressure on the supply of several consumer goods.

It says the spread of the Delta variant is upending factory production in Asia, disrupting shipping and posing more shocks to the world economy. Similarly, manufacturers are facing shortages of key components and higher raw materials costs, the report says adding that while this is somewhat restricted to consumer goods, there is a high risk that this feeds through into more consumer services over the 2022 year.

“Our global view for a notable recovery in consumer spending relies on the ability of authorities to vaccinate a large enough proportion of their populations and thereby experience a notable drop in Covid-19 infections and a decline in hospitalisation rates,” says Fitch Solutions.
Both these factors, it says, will lead to governments gradually lifting restrictions, which will boost consumer confidence and retail sales.

“As of December 6 2021, 38.4% of people in Botswana have received at least one vaccine dose. While this is low, it is higher than the Africa average of 11.3%. The vaccines being administered in Botswana include Pfizer-BioNTech, Sinovac and Johnson & Johnson. We believe that a successful vaccine rollout will aid the country’s consumer spending recovery,” says Fitch Solutions.  Therefore, the agency says, “Our forecasts account for risks that are highly likely to play out in 2022, including the easing of government support. However, if other risks start to play out, this may lead to forecast revisions.”

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