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Seretse declares victory in Retail Sector war

Botswana’s retail sector which is worth over P15 billion annually had seen battle between the Minister of Investment, Trade and Industry, Vincent Seretse following his decision to demand citizen component in ownership of retail shops operating in various malls in the country.


Minister Seretse’s new thumb rule was a requisite for operation permit renewal and this irked retailers and part of the business community. But this week the Minister declared victory, saying the retailers were compliant and results have started showing.
The reservation of certain trade activities for citizens and citizen owned companies was emphasized in 2015 and aggressive implementation followed in 2016 spearheaded by Minister Seretse. The Minister said results as far as Citizen Economic Empowerment is have started showing and the reservations are provided for in Section 15.1 of the Trade Act of 2003.


According to Seretse, the reservation of these trade activities was premised on the fact that some retail operations are easy to operate and do not need technical expertise, special technology or special skills and therefore could be operated by citizens. Some of the reserved business activities include general dealer, general clothing, fresh produce, take away, hair and beauty parlor, among others.


Seretse made the statements in Parliament when answering a question asked by Specially Elected Member of Parliament, Bogolo Kenewendo. Kenewendo wanted the Minister to inform parliament of the impact of the reservation policy in the retail sector on the economy of Botswana.


“I ask this question because the retail sector is extremely important in our economy. It has been one sector that has been grossing double digits growth numbers, and the retail sector as a sub sector of the trade sector has also been quite important in cross border trading. It has accounted to about thirty- two (32) per cent of the total trade sector and has grown at around 5.2 per cent in the last decades,” Kenewendo said.


She explained that Retail activity has been quite crucial for employment as well. “The combined impact of the retail sector and the wholesales sector has been around 48 to 50 000 when it comes to job creation which is around fourteen (14) per cent of total formal employment.’”   


Kenewendo who is also a Trade and Financial Economics expert said that upon revising the Trade Act, it was outlined that some economic activities will be reserved for citizens, and therefore there cannot be any foreign participation, “but previously we would find that the Minister would exempt some foreign owned retail chains in particular for clothing; Markham’s, Woolworths, Mr Price, Pep and so forth.

 

We heard last year and the year before that this has changed a bit, and that some of these chains have been withdrawing or are threatening to withdraw their investment in Botswana and are looking elsewhere because this Reservation Policy is being implemented quite harshly, So, I ask for the Minister to brief us if there has been any study to look at the impact of this Reservation Policy in particular on the retail sector,” she enquired further.
 


The specially elected MP had also asked whether there was any success noted in relation to the policy being implemented; “why are we not seeing any more exemptions, or really just to clarify if there are some of those exemptions, and what has been the total impact on employment creation?”


Seretse, in response said the implementation of reservation and reducing exemption has opened opportunities for citizens to participate in the retail sector such as bakery, fresh produce which has been in the domain of chain stores. “The economic growth of the country is suitable when it is driven by its own citizens. This results in the development of entrepreneurial skills and consequently improvement in the wellbeing of the people. The profit generated from the reserved business activities are re-injected into the economy and hence reduce the leakages of income that goes to other countries,” said Seretse.


Parliament also learnt that the reserved businesses under the Economic Diversification Drive (EDD) include manufacturing services and agricultural production. According to the minister, procurement from producers in these sectors will in the medium to long term lead to competitiveness which will encourage retail sectors currently dependent on imports to source products locally.


Furthermore, Seretse who is also Member of Parliament for Lentsweletau explained that foreign retailers who are mainly South African were engaged and brought to the table pertaining to the new developments. “We gave them an opportunity when this came into force that they must, when they expand, involve Batswana, because we could not impose the Act retrospectively, if they want to be in that space.”


Seretse noted that for a number of years his ministry continuously gave them exemptions: “Upon realizing that, they are taking advantage of this Clause which gives them exemptions, we decided that we shall stop the exemptions and put to them that they must try and get Batswana involved.” Seretse, who was criticized by the Lekwalo Leta Mosianyane led private sector advocacy federation, Business Botswana, explained that the Act  provides for 51 percent of partnerships for new outlets.


“When I stopped the exemptions, they raised these issues like their companies are listed, so it is very difficult to engage Batswana to be participating in this space. For me that argument did not make sense because I decided that I meet all of them, the owners of the businesses that are operating here, the real Directors not the rented people who are sometimes called Country Managers this side who do not make decisions.” Seretse further told parliament that arguments brought forward by South African retailers did not hold water.


“I will give you one reason that they used, they said, ‘no, our staff is in the pension fund, we have given them some 1 per cent.’ I said I am not interested in that, I want significant contribution that will contribute to the economy. They went all over to try and get the support. I stood my ground, and basically said, I am not saying give your companies away at 51 per cent, I am asking you as a responsible Government to do something that you will feel comfortable with which is contributing to the economy.”


The Minister observed that his argument was based on empowering locals and he noted some of the business he advanced for was manufacturing enterprises, “I told them that some of the things that they could do was to engage our local manufacturing companies to supply them with goods. The argument was that the local people are very expensive and they cannot meet their standards. I said then we have to do something about it. You have to make sure that they meet your standards,” the Letsweletau Legislator quipped. Adding that he won his argument by stressing that local suppliers were expensive because they were still growing and if that was to be used as a factor, it would mean that Botswana would never grow its manufacturing sector.


The minister further revealed that retailers, so far were holding their end of the deal with respect to terms and conditions agreed upon “They threatened that they will go somewhere else. I knew they would not go because their profit lines are supported by our industries and for their businesses to grow they need us to support them through our purchases,” he said.


To date, he emphasized, no retailer had left the lucrative 15 billion Botswana market space. “To date, since you asked, even though they had threatened to leave, not a single company has gone. They are still here,” he stated, in direct response to Kenewendo. He further added that one of the conditions of exemption was that there must be a good cause that is practical to the effect that indeed Batswana are engaged.


“First we said we want to see Batswana products in their shops,” he noted adding that they committed that they would provide 10 percent of their floor space for goods produced by Batswana.” There also is commitment that the retailers will join forces with Botswana Government in training the suppliers to meet their standards.  According to him, the first workshop was held a fortnight ago by Edcon which operates 10 different stores locally.


 “There were about 100 Batswana who have shown interest that they are able to supply them. There is a clear programme that is to be followed. We also said that because our people might be starting from the beginning, there must be progressive quantities that you would be able to get from these different suppliers so that if all goes well as I would wish, at a particular point in time, these shops must be supplied probably if not 100 per cent, more than 60 per cent with local products,” he explained highlighting that their efforts are progressively benefiting Batswana. 

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No end in sight for Nam, Botswana borderline feud

27th July 2021
Namibian-report

Despite the President Dr Mokgweetsi Masisi and his Namibian counterpart, Hage Geingob giving an impression that the borderline security disputes are a thing of the past and that diplomatic ties remain tight, fresh developments from Namibia suggest otherwise, following Geingod’s close confidante’s attack on Botswana and its army.

Giving a Zambezi region state of the affairs last week, a Geingob-appointed governor of Zambezi region, Colonel Lawrence Ampofu, a retired Colonel in the Namibian Defence Force, former plan combatant during the liberation struggle of Namibia, in a written speech, charged at the BDF and condemned their killings of the Namibians as unacceptable.

“The security situation within our borders remains calm. The incidence of the Botswana Defence Force shootings and wanton killings on the Nchindo Brothers on 05 November 2020 and other 37 Namibian lives lost since independence remain a serious challenge with our neighbor, Botswana.

Our residents living along the Chobe, Linyanti and Kwandu rivers are living under constant threats, harassment, fear, intimidation and killings and such activities are condemned and not acceptable,” he said under the safety and security title.

The attack suggests that Namibia has not bought Botswana’s story. Ampofu was part of the entourage that accompanied Geingob to the three Nchindo brothers and their cousin who were gunned down by the BDF, and is reported to be privy to the details of the unpublished Botswana-Namibia joint investigations report about the killings as a governor or political head of the region which has eight electoral constituencies.

The report contains the sensitive details of how the three Namibians referred as poachers by the BDF – and Fisherman by the Namibian government were gunned down on 5 November last year along the Chobe River.  They were Tommy (48), Martin (40) and Wamunyima Nchindo (36), and their cousin Sinvula Muyeme (44).

His views are not really in contrast to his President’s views who also described the BDF as trigger happy in a scripted report to his cabinet.

The Zambezi region is located in the extreme north east part of Namibia and covers a total of 14,667.6 square kilometres. “We share borders with Angola, Zambia to the north, Zimbabwe to the east and Botswana to the South,” he said.

Sampofu was first appointed governor of the former Caprive Region in 2010 by the former Namibian president, Hifikepunye Pohamba and was reappointed as Zambezi governor by President Dr.Hage Geingob in 2015, a term running to 2025.

37 Namibia residents killed by Botswana army so far

Sampofu is a man who continues to insist that Botswana has killed 37 residents of his region. A video posted by the Namibian Broadcasting Corporation (NBC) shows him alleging that at least 37 Namibians were killed by the BDF, after he met with the community at Impalila.

“It is true, the BDF started long ago. As we speak 37 lives have been lost here in Impalila along the Chobe river going to Linyanti and Kwado rivers up to Lizauli. All those families lost their loved ones,” Ampofu said in the video posted by NBC.

It is not known how the BDF, which has maintained their position that the Namibians were engaging in illegal activities of poaching, treats the constant attacks by the Namibian authorities, but they have repeatedly vowed to continue protecting the country’s sovereignty and natural resources.

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Masisi gives KBL the “middle finger”

27th July 2021
President Masisi

Botswana’s premier brewer and leading distributor of beer, Kgalagadi Breweries Limited (KBL), this month dragged the government of Botswana to court after President Mokgweetsi Masisi imposed an alcohol ban with immediate effect. KBL labelled the decision as unjustifiable, irrational and that it overrides the rights that are enshrined in the constitution.

This week, Masisi through attorneys representing the government disparaged the case in his written affidavit of KBL’s application, referring to it as frivolous and that it ought to be dismissed with costs on a punitive scale.

In his court papers, Masisi reminded KBL that Botswana is a Republic whose laws find validity from the constitution, and in terms of Section 17 of the constitution the President is empowered to declare a State of Emergency and that it is a common cause that Botswana is under such state.

“It is common course that there is in existence emergency powers (Covid-19) Regulations 2020 as amended from time to time which is solely designed to regulate the Covid-19 pandemic,” he said.

Masisi pointed out that he denies that the application before Court is proper such as to challenge the lawfulness and validity of a regulation made and a notice published in the exercise of a legislative function in accordance with the Emergency Powers Act which empowers the President to make regulations as appear to him to be necessary and expedient for securing public safety.

Furthermore, the President revealed that the decision to ban alcohol sales was not arrived at willy-nilly, but rather that there had been careful considerations that the risks posed by Covid-19 had increased and therefore it was expedient and necessary to suspend all liquor licenses.

Moreover, Masisi denied that the decision to reinstate the ban should be made by the Director of Health Services as indicated by KBL in their nature of the application, “the Director is to cause the notice to be published in the Gazette after consultation with the President.”

Masisi indicated that the role of the Director of Health Services is to publish a regulation made by the President.

He further, reminded KBL that the power to make regulations in a State of Public Emergency in accordance with the EPA lies with the President, “such power includes the amendment of any enactment, suspending the operation of any enactment or modification of an enactment.”

According to Masisi, his decision to ban alcohol sales was based on evidence provided by the Director of Health Services who indicated to him that there was a sudden spike in the transmission of the Covid-19 virus following the reinstatement of liquor licenses.

Another piece of advice tendered by the Director of Health to Masisi was that bars and other liquor outlets were some of the major hotspots in the sense of such being high-risk areas at which the virus spread rapidly.

“Alcohol was one of the major causes of non-compliance with the health protocols that were put in place to control the spread of the Covid-19 virus. Further, there was an indication that more arrests were made on people failing to adhere to Covid-19 protocols more particularly at places where there were gatherings,” he contended.

He pointed out that therefore, it was expedient and or necessary to preserve lives and to reduce the risks of transmissions of the virus to reinstate the suspension of liquor licenses.

Moreover, the President says that it must be noted that he avers that the Director of Health Services is a credible source on matters of public health of which he also accordingly gave due weight to the Director’s advice on deciding to reinstate the ban through the impugned notice.

“I am aware and was always aware at the time of promulgating the regulation complained of that it shall negatively affect some sectors of the economy. However, after due consideration and receipt of advice, I decided to give priority to the safety and health of the nation,” Masisi said.

He presaged KBL that it would not be prudent and in the best interest of the nation to ignore a health emergency such as Covid-19 and gave preference to trading and making of profits by the applicant. “The results would only be catastrophic to the extent that when we emerge from the scourge we would be left with a depleted and ailing nation from Covid-19 and its side effects.”

Furthermore, his written affidavit further pointed out that the decision to reinstate the ban on alcohol was taken notwithstanding understanding and appreciation of the economic hardships that would befall the country.

However, he said he deliberately made the decision based on the evidence provided to him by the Director of Health, whose evidence he believes to be credible to give public/safety and health priority over economic considerations in some sectors.

In making the decision, Masisi states that he was and considered different options including allowing for sale of alcohol consumption off premises, however the evidence he had been provided with suggested that such other alternatives would not achieve the overall objective of securing public safety and health by reducing the risk of the spread of the virus.

“By the time I imposed the ban, alcohol was already being sold for consumption off-premises. This did not work. The information provided to me by the Director and the Presidential Task-Force team demonstrated that consumers purchased alcohol and then loitered and consumed it within the peripheries of bars and other liquor outlets,” he said.

Attached to the affidavit as emphasis, were photographs and videos of Gaborone West, Phase 4 in mid-June 2021, which he explains circulated on social media and was brought to his attention.

“I need not say much about the photos as they depict a crowd exceeding 50 gathered at the parking area of a bar. There is little or no regard to Covid-19 protocols. It was clear to me and my advisors, including the Director of Health Services and members of the Presidential Task-Force team that the total ban of alcohol was necessary to manage the risk of increase in infections, to understand what seems to have led to an increase in the risk of infection when alcohol is present I was advised by the Presidential Task-Force team that scientifically there has been evidence that alcohol narrows physical distance,” he argued.

Masisi says that allegations made by KBL are serious allegations of infringement of fundamental rights yet they fail to state how imposition and reinstatement of the suspension of liquor licenses out of necessity and expediency of the health of the nation infringes on the rights as alleged.

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Gov’t gives parallel statements on COVAX

27th July 2021
COVAX---lelatisitswe

In  an embarrassing turn of events that depicts disintegration in government communication on the fight against COVID-19, President Mokgweetsi Masisi and Assistant Minister of Health & Wellness, Sethomo Lelatisitswe gave two conflicting statements on the same matter, same day, just minutes apart.

The Commander-in-Chef told health practitioners and residents in Ramotswa that the COVAX facility has scammed African countries after billions were paid in a crowd funding effort to procure COVID-19 vaccines in bulk.

“We have pumped money as developing countries of the African continent into the COVAX Facility but the returns were not satisfactory, they cheated us,” the President said in Ramotswa.

According to President Masisi, the COVAX facility Vaccine only came in bits and pieces, frustrating the continent ‘s head immunity targets amid rapidly spreading Delta Variant which is currently reversing all progress made by Africa in containing the contagious virus.

“What we are getting is very small portions of the vaccine, they keep telling us that there is shortage of supply, this is not fair, but we have paid in advance, however what can we do, we have no choice but to spend more  money and look for other avenues of securing other available vaccines,” he said.

Meanwhile in Gaborone, Assistant Minister of Health and Wellness told Parliament that vaccine from COVAX facility is anchoring Botswana’s vaccination program.

“I am not aware of such information that COVAX facility is not delivering as expected, we are actually bolstered by COVAX facility in this country,” he said responding to a question from Mahalapye West Member of Parliament David Tshere who is also Chairman of Parliament Committee On Health and HIV/AIDS.

“We have received doses as ordered from the COVAX facility, and we are still receiving more, I have not seen that information which is purported to have been revealed by the President, unless its new information, we as the Ministry we are not aware of any frustrations by the COVAX facility,” he said.

COVAX is co-led by the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi and the World Health Organization (WHO), alongside key delivery partner UNICEF.

Its aim is to accelerate the development and manufacture of COVID-19 vaccines, and to guarantee fair and equitable access for every country in the world.

The facility is a global coalition that works to ensure fair and equitable access of COVID-19 vaccines around the world. So far, 190 countries have joined the COVAX initiative, including all 22 countries in the Eastern Mediterranean Region.

The COVAX Facility aims to have 2 billion doses of COVID-19 vaccines available for distribution across the globe by the end of 2021, targeting those most at risk (e.g. frontline health workers) and most vulnerable severe diseases and death (e.g. elderly and people with co-morbidities).

On other vaccination issues President Masisi revealed, still in Greater Gaborone vaccination centre visits, that Botswana has placed orders with Pfizer, a United States vaccine producer noting that they have promised to deliver next year.

Meanwhile, government kick-started phase two of the Covid-19 vaccination program this week, opening up for ages between 30 and 54.

President Masisi revealed that this was done because some elderly were reluctant to be inculcated.

“We can’t take forever trying to convince people to take vaccine, we moved to the next age segments because we cannot afford to have vaccines-which are already in shortage supply to just lie there,” he said.

On Friday, Ministry of Health revealed that it was receiving large numbers of people below the age of 55 lining up to be vaccinated.

In a statement the Ministry of Health said it, “acknowledges the huge turnout that marked the commencement of the Phase two COVID-19 vaccination program”.

Given this high turnout, especially in the Greater Gaborone region, the ministry announced an extension of operation hours in order to serve the huge crowds that had come for vaccination.

Of the nearly 85 000 doses that were being doled across the country as first doses, the majority of the Greater Gaborone vaccination sites were already getting depleted by 1800hrs on 22 July 2021.

As a result of this development, the ministry took a decision to discontinue the extended hours of operation announced yesterday for vaccination sites in Gaborone.

This means that vaccination sites in Gaborone and elsewhere in the country which still have some vaccines, will offer them in the normal working hours and days of the week.

The Ministry says it appreciates the great desire to be vaccinated shown by thousands of citizens and residents of this country and wishes to assure them that it will continue to expedite their vaccination every time vaccines become available. As has been communicated in various fora, more vaccines are expected in August 2021.

As at July 2021, Botswana has so far received 62, 400 doses of AstraZeneca/COVISHIELD bought through the Covax facility, 30,000 doses of AstraZeneca vaccine donated by the Republic of India, 19, 890 doses of the Pfizer vaccine bought through the COVAX facility, 200, 000 doses of the Sinovac vaccine, donated by the Peoples Republic of China and another 200, 000 doses of the Sinovac vaccine bought through bilateral negotiations with Sinovac company in China.

“We encourage Batswana to remain hopeful that although it’s taking longer than anticipated, enough COVID-19 vaccines will eventually arrive in our country. We urge them to always strictly abide by all COVID-19 protocols so that they protect themselves and others from this deadly virus,” the ministry said.

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