The Minister of Investment, Trade and Industry, Vincent Seretse has called on all Cooperative Societies in the country to evolve into well-functioning enterprises with clear business models that will help them grow and contribute significantly in diversifying the economy.
The Minister was addressing Cooperatives in Selebi Phikwe recently during the International Cooperative Day commemoration that was held at Anne Adam’s Park. Seretse bemoaned the income disparities between the rich and the poor, explaining that if the Cooperative Enterprises are run well, they could come in to address the inequalities by promoting wealth among its members. He noted that Cooperative Society’s aim is to uplift the people’s economic status and promote partnerships and the spirit of working together for the greater good of the society.
The day which was observed under a one-word theme of “Inclusion” attracted different cooperative societies across the country and across various industries as opposed to the traditional agricultural cooperative societies. Seretse encouraged the Coops as cooperative societies are affectionately called, to organise and register as companies or businesses so that they can easily access funding from the Citizen Entrepreneurial Development Agency (CEDA).
He emphasised the need for the coops to rebrand and transform into enterprises with a clear business vision, noting that CEDA is ready to assist organised societies with formulating business ideals and to avail funding to businesses with clear objectives and practical financial projections. He added that while the coops plays an important role in economic development, a transformed cooperative society will yield more benefits at a larger scale.
The minister stated that there are about 2.5 million coops in the world which employ over a billion people. He said the assets value of the cooperative societies in the whole world stands at approximately 9.6 trillion, and that the cooperatives generate around 2.9 billion dollars. He pointed out that Botswana’s Cooperative Society’s assets and income generated also forms part of these global statistics.
Minister Seretse added that the Cooperative Societies must familiarise themselves with the Economic Diversification Drive (EDD) Strategy which aims to eradicate poverty and create wealth for the people. He said strategy focuses on the interventions that promote targeted domestic production and consumption, by leveraging the country’s purchasing power to enhance participation of local enterprises in the economy.
“The economic Diversification Drive is the base to drive manufacturing of different goods for the local market. The market is available and I want the cooperatives to embrace this business opportunity,” he said. The EDD initiative aims to diversify the economy by developing sectors other than the primary sectors that generate income for the country so that they too can contribute meaningfully to the Gross Domestic Product (GDP).
Youth’s perspective on Cooperative Societies
In his message for International Day of Cooperatives, Youth Representative, Gobe Taziba who is also a member of the Botswana Cooperative Association (BOCA) acknowledged the involvement of the youth in the coops. He however shared Seretse’s sentiment on transformation of the coops not just to attract keen interest from the youth but in order to align the society with the current times and trends.
He highlighted the need for the coops to diversify the economy and create jobs, stating however that for this dream to be realised, the coops must first come up with social welfare strategies and look into policy positions that will make the cooperative sector viable.
He said that for the Cooperative Society to align with the current times and business trends, there is need for a strong and responsible apex body that will oversee the formulation of policies that will aid transformation. Taziba posits that the positive changes that are needed can splendidly be undertaken by the youth. The cooperative societies are still largely made up of the elderly people, and Taziba says, given the chance to be the change agents, the youth can bring results in this sector. “We are the change we need. We are capable of effecting the change we want,” Gobe said.
He emphasised the need to innovate, to attract and retain skilled human resource, invest in research and diversify coops’ operations while also putting into place prudent financial management mechanisms so that profitability and growth can easily be measured.
On issues of social investment, Minister Vincent Seretse handed over a house built by BOCA for one underprivileged family in Botshabelo. BOCA also donated a movable vegetable garden. The Area Member of Parliament who is also the Minister of Infrastructure and Housing Development, Nonofo Molefhi commended BOCA for the charitable gesture.
He lauded the Cooperatives for helping the communities providing basic services like housing, indicating that cooperatives like other corporate entities can put social justice and economic equity at the heart of their services. Molefhi pledged to pay water bills for the family until end of the year so that the family can be able to have water to irrigate their vegetables.
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.
On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.
According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.