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De Beers moves to improve Botswana partnership

Executive Vice President of Corporate Affairs for De Beers Group, David Prager has said a debate on whether Botswana is deriving value from its partnership with the world’s leading diamond company is healthy for the relationship.

Prager, said the onus is on De Beers to continue proving its value to the people of Botswana through its contribution to the country’s economy and people’s welfare. Prager said this at the three day Diamond Conference 2017 organised by the company as De Beers look forward to incorporating Sustainable Development Goals (SGDs) in its business practices. “Partnerships are not easy to manage; there is a need for a good will and clear understanding of what the partnership principles are,” said Prager, commending the long standing De Beers /Botswana relationship, which stretches as far as 1967.

“It is up to De Beers to continue proving itself to the people of Botswana to keep the partnership going.” The De Beers Diamond Conference has been running successfully for the past three years in collaboration with the Ministry of Mineral Resources, Green Technology and Energy Security. This year’s conference was conceived out of the conviction that the diamond industry should play a more strategic role in the upstream, midstream and downstream from a sustainability perspective.

De Beers seeks to have a significant contribution in sustainable development and innovation to reinvent and enhance business models that bring together all stakeholders to impact the global economy. The SDGs were adopted in by the United Nations, and would be the guiding tools for world development in the next 15 years. The SGDs envisages that in 2015 they would be; no poverty, zero hunger, good health and well being, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace, justice & strong institutions as well as partnership for the goals. 

 
Prager said the De Beers will seek to play a role in SGDs through different ways most importantly through incorporating the SDGs in their business operations as well as influencing its partners to have a contribution. In Botswana, a diamond remains a symbol of success story and a source of pride. De Beers through its partnership with the Botswana government remains at the core of this story. This economic and social progress as captured by De Beers itself in the document titled “Turning Finite Resources Into Enduring Opportunity”, has been built largely on a diamond foundation, enabled by high standards of governance, political stability, and the judicious investment of diamond-generated wealth.

Minister Mineral Resources, Green Technology and Energy Security Advocate Sadique Kebonang gave credit for the success of De Beers/Botswana partnership to the country founding fathers; Sir Seretse Khama and Sir Ketumile Masire. “When the diamonds were discovered in the Bamagwato territory, unlike in other countries, they never said those diamonds were for the Bamagwato territory but said they are to be shared and enjoyed by all citizens. Most of these founding fathers were in their 40s when they negotiated this partnership which today we enjoy its successes,” he said.

Botswana has avoided being a resource-cursed nation, as it has been proven that resource-rich economies often grow more slowly than resource-scarce economies, the opposite has been the case for Botswana. This has been mainly attributed to the fact that Botswana has managed its resource with long-term development goals in mind. Botswana government jointly with De Beers owns Debswana, which is today the of the world’s leading diamond producer by companies by value. Until recently Debswana was also the leading diamond producer by volume.

 
Debswana operates four mines; Orapa diamond mine, opened in 1971, Letlhakane diamond mine, opened in 1975, Jwaneng diamond mine, opened in 1982, Damtshaa diamond mine, opened in 2003. Jwaneng Mine produces the most valuable diamond in the world, and contributes 60 percent of Debswana revenue. The two entities also owns the Diamond Trading Centre (DTC), the world's largest and most sophisticated rough diamond sorting and valuing operation.

While the partnership has undoubtedly been at the core of Botswana economic development, there are some who believes that communities surrounding the mining towns have benefited as much, and still languish in poverty. In political circles, De Beers is still weary of views which are not favourable to its partnership with Botswana. The resurgence of opposition, the Umbrella for Democratic Change (UDC)

This uncertainty has not been helped by the announcement of the leader of opposition in parliament Duma Boko last year when responding to the Budget Speech that UDC once in power, they will vigorously consider other technical partners for the management of Botswana’s diamond mines other than the current De Beers arrangement. “We believe that it is necessary to pursue a fair-minded approach that does not unduly defer to De Beers even where there is a possibility that there are partners that could assist Botswana generate better revenues and profits from our diamond mines,” he told parliament then.

“This posture is informed by our view that there have been companies, including one in Russia that has been able to perform admirably despite the global economic slowdown and storm against diamonds.” Ndaba Gaolathe, Boko’s former deputy who is now the leader of the newly formed Alliance for Progressives (AP), also shares the same sentiments. “If we are going to do things the same as the previous regime why should people vote us? “, he asked rhetorically. “We will be doing that for the freedom of our people and we should be resistant to the pressure.”

Gaolathe however highlighted that they will dialogue with De Beers over what their government will envisage. “I hear they are nervous about UDC, but they should view us as fairly minded citizens who want to do things which are good for the people,” he told this publication last year. Whilst a backbencher, Tati West Bigge Butale was even more vehement. He wants Debswana to be an entity wholly owned by the government without any technical partner.

“I was surprised by the Leader of Opposition yesterday talking about inviting the Russians to come and colonise us just like De Beers colonised us,” he had said then. “Why should we always be hankering for people to come from outside and exploit us? Butale is now part of President Lt Gen Ian Khama’s cabinet as Assistant Minister for Trade and Industry.The Coordinator of the Diamond Hub, Khumo Mogaetsho concurred that while the partnership has been the pinnacle of Botswana’s economic growth over the past years, an ordinary Motswana on the streets may not be privy to the benefits of the partnership. She said talk of Botswana going alone has been there, but was quick to admit that the value of the partnership is instrumental in driving Botswana’s economy.

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Gov’t has no budget for Magosi’s SADC chase

12th April 2021
Elias Magosi

Despite the government of Botswana’s ambition to have one of its own to lead Southern Africa Development Community (SADC) since its establishment in 1980, the Presidency says there is no budget specifically dedicated to the campaign.

The Government has released the name of Permanent Secretary to the President, Elias Mpedi Magosi, as the candidate for the SADC Executive Secretary position. Magosi is expected to face off with Democratic Republic of Congo (DRC) candidate, Faustin Mukela. The position will become vacant in August this year.

However, despite the optimism the Botswana Government has not yet set aside a budget to assist Magosi to win against the seemingly DRC giant. “We all know that the COVID-19 pandemic has negatively affected the country’s ability to effectively fund any new project. This campaign is not an exception. As such, we do not have any budget for the campaign. However, we have so far managed to take advantage of His Excellency the President’s working visits to the neighbouring countries to also carry out the campaigns,” Press Secretary to the President, Batlhalefi Leagajang, explained.

Botswana has housed SADC since the establishment of the then SADCC in 1980, but has never occupied top most leadership positions at the SADC Secretariat.  “We therefore, strongly believe that we should also have an opportunity to contribute to the management of our regional body as it continues to drive the important issues of regional integration industrialization and socio-economic development.

This will also profile Botswana as a strong advocate of regional integration,” he responded to this publication’s questionnaire as to why the Government wants to occupy the plum post. SADC is a Member State driven organization. As such, Leagajang said, needs a well-grounded Executive Secretary with a blend of management and leadership acumen; a transformational leader with political awareness and integrity; private and public sector experience; a deep culture of corporate governance; as well as strategic agility and result-oriented consummate diplomat.

“These are the unique attributes of our candidate,” he said. So far President Mokgweetsi Masisi has visited nine out of 16 SADC member states on a working visit and also taking an opportunity to present to them his candidate.

“The countries have appreciated this effort and we remain hopeful. However, it is important to note that this is a democratic and competitive process which must be respected,” he responded when asked about the reception and assurances from various countries to cast a vote for Magosi.

In 2018, when Pelonomi Venson-Moitoi challenged for the Africa Union (AU) Chairperson, the government appointed former President Festus Mogae to be the campaign leader. Does the Government have anyone apart from Masisi to help with the campaign?

“The campaigns for the candidate are strictly led by the Government of Botswana. Since this is a candidate for Botswana, not just the Government, it will be appreciated if all Batswana, including the media, could also shoulder the responsibility to campaign for the candidate in their own spheres of influence,” Leagajang responded.

While there are sceptics on Magosi winning against the DRC man, the Government is confident and believes that with the unique traits that he possess, Magosi stands a chance. He is said to be a strong advocate of justice and fairness as he has played this role in his current role as PSP and in his previous roles as PS and in the private sector. He has helped individuals and companies to find justice and fairness in most of their dealings with Government.

Magosi is also said to be a proponent of corporate governance and which he has relentlessly pursued in most of his career including in Government and other sectors. A strong believer in following laid down procedures and laws. “He carries a variety of skills as an HR expert with experience in different sectors, a strategist and an Organization development specialist.

His experience and exposure spans government, parastatal, private sector and at regional level as well, thus making him a suitable candidate for the regional role. He has worked with governments, businesses, development partners and politicians and is comfortable navigating through all of them,” Leagajang concluded.

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Mzwinila’s P4.3 Billion gamble to keep water flowing

12th April 2021
orth-South-Carrier

The Minister of Land Management, Water and Sanitation Services, Kefentse Mzwinila looked a politician set to shoot the moon as he laid bare his billions of pula development agenda recently in Parliament.

His Ministry’s combined Recurrent and Development Budget Proposals for the 2021/ 2022 Financial Year is pegged at Four Billion, Three Hundred and Sixty – Five Million, two Hundred and Nineteen Thousand, Five Hundred and Sixty Pula (P4, 365, 219, 560). This is a budget 38.3% more than the allocation for the 2020/2021 Financial Year.

Mzwinila preluded his request to parliament with a demonstration that his Ministry has no champagne taste on a beer budget – indicating that his ministry’s expenditure at the end of February 2021P2.111 Billion or 96% of development budget; and P910 million or 90% of the recurrent budget.

Notwithstanding the budget dust, the Minister justified this year’s increase in the Ministry’s total budget. He attributed the escalation to the commencement of major projects under the water sector. These include the implementation of the North South Carrier (NSC) 22.2 covering various sub projects. Mzwinila noted that these are all public value projects which are aimed at improving the lives of Batswana.

Mzwinila’s Ministry has projected that the sum of Nine Hundred and Sixty –Three Million, Nine Hundred and Forty – Seven Thousand, Five Hundred and Sixty Pula (P963, 947, 560) be permitted for the Recurrent Budget and stand part of the 2021 / 2022 Appropriation Bill ( No. 1 of 2021).

“55% of the Recurrent Budget is geared towards the Revenue Support Grant for 12 Land Boards and their subordinate authorities while the sum of P5 Million is allocated to the Real Estate Advisory Council (REAC). The remaining 44% is proposed for the Ministry Departments.”

The sum of Three Billion, Four Hundred and One Million, Two hundred and Seventy –Two Thousand Pula (P3, 401, 272, 000), for the Development Budget was approved and stand part of the same schedule of the appropriation (2021/2022).

When breaking down the Development Budget, Minister Mzwinila noted that Water Supply and Sanitation projects will account for P1.098 Billion to finance the Maun Water and Sanitation project, Molepolole Sanitation projects and the Shakawe Water Treatment Plant Rehabilitation.

With all the implementation bottlenecks troubling several projects in the country, Mzwinila had to satisfy the question of whether his Ministry demonstrated a dire need for the budget with reference to its execution of the budget for the financial year 2020/2021 and its delivery of strategic initiatives and projects?

Mzwinila’s pitch found favour with parliament and his ministry will get an aggregate budget of P3.198 Billion for the 2020/ 2021 Financial Year. Within this allocation, P2.188 Billion is for the Development Budget and P1.010 Billion will cover the Recurrent Budget.

The Minister revealed his strategic interventions for land management, water and sanitation services. Highlighting that efforts by Government to provide serviced residential land to citizens on the waiting list are being hampered by limited resources. He shared that his ministry needs P94 Billion to cover such costs which will directly link to water, sewage, roads, electricity, telecommunications and storm water drainage leading to the allocation of 4 587 plots on un-serviced land.

The minister projected that 22 952 un-serviced residential plots are planned to be allocated in the next financial year. However, there is a trend where allocated land remains fallow and undeveloped which raises misgivings that the requests could have been made on speculative plans.

Mzwinila noted that in the spirit of forging stronger International connections, the Ministry will in June 2021 sign a Memorandum of Understanding on Land matters between Namibia and Botswana with the aim of opening doors to the creation of Dry Ports in the country, facilitate international trade through Walvis Bay Sea Port.

Botswana is already challenged by scarcity of naturally occurring water resources due to the aridity of the country creating persistent water shortages. The type of infrastructure required to improve national water security is a true reflection of intensive investment needed in the water sector The Minister stressed.

“An emerging issue such as the COVID -19 pandemic poses serious challenges as the control of the virus requires reliable water supply. In an effort to mitigate the challenge, the Ministry has undertaken extensive bowsing throughout the country which included the provision of additional capacity for supplementary bowsing to areas with pervasive water shortages, plus an additional forty one (41) un-gazetted settlements.

Operational costs due to bowsing were at an average of P6 Million per month before the COVID-19 pandemic and increased to an unsustainable amount of the order of P13 Million per month, since the beginning of the State of Emergency in April 2020,” the minister shared.

Through the support of a World Bank Loan, the Ministry is implementing several initiatives under the Botswana Emergency Water Security and Efficiency (BEWSE) project. Through BEWSE the Raw Water Pricing and Abstraction Strategy will assess the pricing of water in a manner that enables the provision of water to support new economic development, the strategy is planned to be completed in June 2021.

The Ministry has commenced the development of a long term National Water Security Strategy to improve resilience to climate change impacts. The strategy development entails prioritization of the proposed future mega water transfers such as the Chobe – Zambezi water transfer, the Atlantic Ocean water transfer to Botswana through Namibia and Lesotho – Botswana water transfer.

Following the signing of the tripartite Memorandum of Agreement (MoA) between Botswana, Lesotho and South Africa in November 2017 for the Lesotho –Botswana Water Transfer project, a 24 months contract for a combined prefeasibility and feasibility study for the development of a bankable Lesotho – Botswana Water Transfer project feasibility study was signed and is to be completed in 2022.

One of the Ministry’s famous major water supply projects such as the North South Carrier (NSC) 2.2 has experienced hiccups; having tenders for contract 1 (Masama to Mmamashia Pipeline) and Contract 2 (Mahalapye to Masama Pipeline) cancelled due to budgetary constraints.

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Will Botswana’s Climate Change policy climax?

12th April 2021
Botswana Climate

The Botswana Climate Change policy draft of 2021 was tabled in Parliament by the Minister of Environment, Natural Resources Conservation and Tourism, Philda Kereng for consideration and adoption.

The policy attempts to indicate the country’s environmentally conscious development agenda as Substantial resources are being dedicated to research and policy efforts to mitigate climate change and support adaptation to the current and future impacts of greenhouse gas emissions.

Kereng indicated that Botswana is not immune to the impacts of climate change and it continues to delay the country’s national development efforts and that the key economic development sectors dependent on the climate system have recorded declines over the years due to the variability of the rainfall and other climatic conditions. Experts elsewhere have pointed out that lack of consideration of population dynamics hampers the development of stronger, more effective solutions to the challenges climate change poses – hopefully this policy if effectively implemented could partly answer this question.

Kereng underscored that sectors such as agriculture, water, bio diversity, health and tourism have suffered the most and the consequences of these have contributed significantly to the decline of livelihoods in Botswana especially in rural areas.

To respond to the changing climate, Botswana has embarked on sectoral reform such as climate smart agriculture, poverty alleviation initiatives, building resilience on the economic productive sectors, diversification of tourism for the improvement of livelihoods and income generation, local economic development and sustainable environment.

The efforts require a coordinated mechanism that will provide an enabling environment for an integrated approach to the formulation and implantation of development plans and socio economic related policies in Botswana that are responsive to the changing climatic conditions.

Minister Kereng explained the draft policy is characterized by an inclusive and integrated approach to social, economic development and governance modalities that would enable the country to achieve a sustainable development pathway. It provides opportunities for improved livelihoods through creation of green jobs, development and transfer of relevant technologies as well as creation and ease of access to both local and international markets. It also commits the government, private sector and non-state actors to adopt adaptation and mitigation measures that would facilitate sustainability and building of resilience of all sectors.

While Members of Parliament were trying to comprehend the policy, this publication got in touch with Green Botswana to solicit their views on the policy draft. Ms. Sela Motshwane, the Founder of the Trust highlighted that “the Climate Change policy was meant to be read in August 2019. It is long overdue, and we all need to see it and understand it in full.

I understand the current budget does not allow for a full implementation- but I could be wrong. More funds could have been allocated since. I think generally, Batswana need to understand fully what this means to our daily lives. I believe the true understanding is by policy drafters and the Ministry of Environment only.”

In the same vein, Green Botswana Trust took to the streets to provide a community solution to climate change on World Health Day (Wednesday). Green Botswana held a “Free Trees for Babies” at Extension 2 Clinic where fruit trees were gifted to parents, expectant mothers, 25 health workers, police officers and the prison officers who had accompanied prisoners to the clinic.

Motshwane said: “The decision to do the “Free Trees for Babies” by gifting fruit trees was to raise awareness to our imminent food security issue as stated by the Deputy Permanent Secretary of the Ministry of Agricultural Development and Food Security, Mr. Thabang Botshoma and encourage the general public to plant a tree so that we can reach our SGD Goal 13 : Climate Action. The trees gifted are to be named after the baby recipient”.

Green Botswana is calling for the urgent action from government and members of the public to create a culture of community accountability and collegiality in moving Botswana towards climate action and sustainability. To achieve the 2030 Paris Agreement Pledge, it will take all citizens and not just the government to reach goals.

Parliament resolved to adopt the Botswana Climate Change Policy, 2021.

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