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Boko, Saleshando seal UDC+

The outcome of unity talks between the country’s major opposition parties; Umbrella for Democratic Change (UDC) and Botswana Congress Party (BCP), which has been awaiting final say from member party presidents, is expected to be announced next week (Monday 23rd) in Gaborone.


WeekendPost has it on good authority that the presidents of the opposition parties in talks, Duma Boko and Dumelang Saleshando are meeting this weekend at an undisclosed place to close the monument agreement. This follows the finalization of the talks by negotiators last year, December.


“Today (Saturday 21st) the party leaders, Boko and Saleshando will meet somewhere specifically to sign and close the deal. When they come back they will announce the decisions they took and final agreement of the negotiations,” an impeccable source closer the talks told this publication.


It is understood that following their meeting they will prepare for a press briefing scheduled for Monday next week to officially announce the outcomes of the talks and present the new party, UDC+. “The aim of the press conference would be to announce that there is an agreement between UDC and BCP, and what that agreement entails. The details of course will come in the course of time,” the source continued. “It is where critical questions will be answered,” he continued.


However, indications suggest that there has been an animosity inside the negotiation teams with BCP dissatisfied with the appointment of Saleshando as Secretary General of the new movement. The move saw the constitution stream at the talks plunge into a deadlock that derailed their agenda and was referred to the main negotiating team and passed to the leaders to “address.”


While the BCP negotiation team was settled with the matter, other party faithful’s on the ground spurn it and easily dismiss it as belittling Saleshando in a way. On the other hand Saleshando is said not to be happy with the arrangement although he is willing to compromise.
“BCP negotiation team at the talks agreed on that, that’s why Saleshando also is fighting to reverse it – he has the power to reverse it as the final say lies with them.”


Although the matter is still being discussed this weekend, this publication has gathered that Boko, his advisors and other structures of the BCP want Saleshando put as a running mate to Boko which in essence is a Vice president position. The BCP is said to be fighting tooth and nail for the position which has also witnessed other names being dropped for the portfolio like that of Ndaba Gaolathe of Botswana Movement for Democracy, which is an affiliate of UDC. Observers believe Gaolathe has never abandoned the umbrella and may do well as a VP looking as his skills and expertise.


The issue is said to have divided the negotiating parties particularly those in the BCP and likewise in the UDC who still did not want to see the cooperation project take off. Some argue the parties may still do well on their individual capacities. It is understood that although the talks have been engulfed by road humps, the BCP, which alone shunned the second lap of the umbrella talks following the collapse of the first towards the 2014 General Elections did not want to be “the bad guy” again this time around.


It is believed that they (BCP) “have learned a lesson the hard way” as they performed miserably at the polls. The source further said to WeekendPost: “If push comes to shove, and knowing Batswana’s aspirations now (of a united opposition), and although the party wants Saleshando as VP and not SG, we do not believe it can make talks collapse.”


In fact he said whether he is “SG or not” the cooperation will be there – and that’s the bottom line. Furthermore, it was said that in case Saleshando does not become the SG, and do away with the position, there may be two Vice Presidents at party level.
“We may have two VP’s with different roles and assignments at the party and in case we win government the president will have the prerogative to choose his only VP in the new government.”


In the UDC+ Motlatsi Molapisi remains the Chairman of the new formation of the opposition parties.The party has a new constitution, practices Social Democracy in outfit and colours are likely to remain as that of the current UDC. The name of BCP will fall out even at the constituencies that they contest. According to the reliable source closer to the development, Boko and Saleshando have had a great relationship during the negotiations.


“Boko has been very good and he has kept his promises that he has made,” he said adding that although a constituency is not a priority for Saleshando, Boko may move further to allocate a constituency for him in Gaborone – Gaborone South most likely. Saleshando lost his former constituency, Gaborone Central in the last General Elections to BMD’s Phenyo Butale who is likely to contest the constituency again based on incumbency as agreed at the talks.


Other issues which have been pending on the talks, touching on constituency allocation, saw Lephepe/Lentsweletau and Lerala/Maunatlala areas both being allocated to BMD of the UDC after independent candidates who came after Botswana Democratic Party (BDP) at the polls defected to the party (BMD). The conclusion of the talks will see ruling BDP coming head to head with one opposition block in the name of the Umbrella for Democratic Change plus (UDC+) in the impending 2019 General Elections.The ground-breaking deal emanating from the talks would be a first timer in the political landscape as well as the history of Botswana politics.

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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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