Govt reforms the tertiary education funding
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Ministry of Tertiary Education, Research Science and Technology is reforming its tertiary education funding, with new draft policy placing emphasis on funding students who pursue technical and vocational training.
Minister of Tertiary Education, Research and Technology Dr Alfred Madigele has this week, in an exclusive interview revealed that the current funding model, the Grant Loan Scheme which was introduced in 1995 is going under review. “The 1995 Grant Loan Scheme was mainly catering for government jobs. It was responding to white-collar jobs only. It was looking at teaching carers and social sciences programmes, which are essentially white-collar jobs,” said Dr Madigele.
“Those sectors which were catered for are now saturated such that there are fewer and fewer vacancies in those sectors. Essentially, we need to re-invent the Grant Loach Scheme for tertiary education financing to respond [to today’s needs].” Dr Madigele, who is also legislator for Molapowabojang-Mmathethe constituency said currently the government is reviewing the tertiary education financing policy to respond to the challenges the country faces now.
“There are a lot of educated people with Diplomas, Degrees, Masters or even PhDs but they do not have jobs. It does not necessarily mean there are no jobs in Botswana. It means those particular sectors are saturated,” observed Dr Madigele. He said, sectors such as tourism, mining, construction present a wide range of opportunities for other careers but the sectors are dominated by foreign nationals. Dr Madigele is of the view that the country has not done enough to produce enough artisans, hence the jobs are taken by people from outside.
“If you walk around town, or go to CBD [Central Business District] you would find that most of construction employees, plumbers and others are done by our neighbours from Zimbabwe, Chinese and other foreign nationals. These are jobs which actually should be going to Batswana,” he stated.
The former Assistant Minister of Health noted that in the review that his ministry is undertaking, they are taking into consideration these careers which are in demand, by offering variety of options for pursuing them, including up-skilling citizens as well are re-tolling them to be able to deliver the desired results. “Within the draft policy, we want to put more emphasis on the TVET (Technical and Vocational Education Training) sector which we believe it will help us to reduce unemployment,” he said.
A report released by Human Resource Development Council (HRDC) in 2016 titled “Tertiary Education at a Glance” indicated that enrolment by government technical colleges is very low and is not rising in any significant way. “This means that Technician level training in Botswana has a very low share of tertiary enrolments. Given that a growing economy needs all kinds of technicians in the critical skill areas like Electrical/Electronics, Construction/Building, computer engineering, Instrumentation and mechanical engineering this trend is worrying,” reads the report.
“The technical colleges seem to have good infrastructure that is comparable to others. So this trend shows us anecdotally that there may well be low utilisation of existing resources in the technical Colleges.” The report further indicates that data from government technical colleges shows an inconsistent and erratic trend over the years with some courses done one year and then seemingly abandoned the next enrolment.
“It would appear that technician level training across the colleges could benefit from a better coordination and policy guidance given that the demand for training places is very high nevertheless.” In a recent interview with WeekendPost, Minister of Basic Education Dr Unity Dow contended that part of the problem regarding technical colleges’ enrolment was the perception formed on them. She is said there is a need to brand them so that they become attractive.
FUTURE OF TERTIARY EDUCATION FUNDING
In 2016, Madigele told the Tertiary Education Pitso organised by the Human Resource Development Council (HRDC) that Botswana, like many other countries faced the challenge of tertiary education financing occasioned in part by what he called “massification”: a massive increase in tertiary education enrolment; ever increasing costs; equally important competing priorities and dwindling financial resources.
The minister indicated that although government had in recent years talked about cost sharing at tertiary education, it is not a decision his ministry has taken yet. Madigele said currently the government avails sponsorship to 10 000 students on average out of a possible 25 000 who graduate from Botswana General Certificate for Secondary Education (BGCSE). He said, because government wants to increase access to tertiary education, it means other measures have to be put in place to make it sustainable.
“This format of sponsorship alone cannot be able to sponsor all the students. One option is income contingent loans, which means students will start paying the loans once they start working after graduation,” he said. “This will be a form of cost-sharing because the students will be able to pay back the money once they start working.” The government is also considering doing away with the grant loan scheme, which means they should be other options for financing other programmes which are not necessarily part of the one considered to be seriously in demand.
“You will find out that sometimes a student has passion for music or dancing, and they have not scored good marks but want to pursue their passion. We are thinking of introducing government guaranteed loans in partnership with private banks to be able to provide these kinds of loans to these individuals, which is allowing people to diversify what they want to do,” he said.
Dr Madigele hinted on engaging other stakeholders, including Ministry of Finance about the possibility of using Government Employee Motor Vehicle and Residential Property Advance Guaranteed Scheme (GEMVAS) to also include education financing as part of the scheme.
Government has admitted to failing to recover sponsorship loans from employees who benefited from the government grant loan scheme. It is estimated that government is owed billions of pula in unrecovered loans. Due to failure by government to put mechanism in place, Dr Madigele said, government is currently recovering about P20 million annually.
“We need to put in place legislative framework that will facilitate Department of Tertiary Education Financing (DTEF) to be able to recover loans. As of now the system is not in place; DTEF does not have the necessary legal instruments, for instance, there is no law that forces employers to declare employees who were government sponsored and how much they earn,” he said. “We also need to create a one-stop centre like Botswana Unified Revenue Services (BURS) to be able to collect data and be able to track those who are working and paying taxes.”
He said it is not easy to change the government machinery as it takes a long time because changing one law may result in other laws being changed as well. Following the creation of HRDC, the mandate of tertiary education funding was transferred from DTEF to the HRDC, which was known previously as Tertiary Education Council (TEC).
Madigele has also dismissed any possibility of free education in Botswana at tertiary level as well as possibility of allowance increment due to government’s desire to increase access to tertiary education. He also noted that the economy is not performing well, which makes it difficult for government to consider allowance increment for tertiary students.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.