Seretse declares victory in Retail Sector war
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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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BPS, Mosala Funeral Parlour butt heads over SA national remains
A squabble has broken out between Pule Mosala Funeral Parlour and the Botswana Police Service (BPS) over the remains of a South African national who has been in the Mosala mortuary for more than nineteen months. The deceased was one of 10 suspects who were controversially shot dead during a lengthy shootout with law enforcement authorities in Gaborone’s Phase 2 early last year.
The deceased individual’s family based in Soweto, has encountered difficulties in repatriating the body which has been in the care of Mosala Mortuary Services. Following the incident, it has emerged that all 10 bodies were transported to PFG mortuary in Lobatse for a brief period while the police attempted to locate their next of kin. It is reported that the families of the deceased were eventually identified and informed to come and identify their loved ones, including other South African nationals who were part of the criminal group. These families also witnessed the autopsy procedures conducted at Princess Marina Hospital in Gaborone.
Except for the family from Soweto, nine of the bodies were claimed and taken by their separate relatives. The Soweto family claims they lack the resources to bring the body back to South Africa and has made it known that they are looking for money. To end the supposed verbal agreement over the body’s storage for repatriation, Mosala Funeral Service has filed a case against the police at the Lobatse High Court.
According to Keakantse Mmotlhana, the company’s Sales and Marketing Manager, 10 people who were killed in Phase 2 by gunfire were all temporarily transferred to one of PFG’s branches in Lobatse by the police while efforts were made to find their next of kin. She expressed outrage at the statement made by the Minister of Defense and Security, recently.
After Assistant Police Commissioner Dipheko Motube called her office to apologize for giving the Minister wrong information during a news conference, she confirmed that they had accepted the apologies. He made it clear that one of the victims was still at Pule Mortuary in Lobatse.
Bushie Mosala, the director and owner of Mosala Funeral Services, confirmed that the body of a South African national has been in his mortuary for the past nineteen months. He expressed his desire for the police to remove the corpse from the mortuary, characterising the situation as a “nightmare.” He has instructed his legal team to file a lawsuit against the police in the Lobatse High Court concerning the body.
Mosala urged the acting Police Commissioner to come forward and apologize to the nation for the situation, asserting that the public has the right to know the truth regarding the body of the South African national, w
C -002Bhich was preserved by the police as evidence.
The South African High Commission in Gaborone had not responded to queries from Weekend Post at the time going of going to press.
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BOSETU frustrated by Gov’t new dispute winning strategy
Botswana Sectors of Teachers Union (BOSETU) has expressed alarm over a troubling trend by the government. Tobokani Rari, Secretary General of the BOSETU, stated that it appears that these days, whenever there is a dispute between workers and the government, the administration is fast to run to the courts to attempt and muffle unions.
“This is quite disturbing development, we have seen it with the Botswana Doctors Union, there was a disagreement over the shift allowance, government rushed to court, they indeed got order that was saying the doctors should go and do the work. We have seen it with the nurses, they rushed to court they got the order, we are now seeing it with the teachers, they rushed to the court and they got what they wanted,” said Rari, who also served as the Secretary General of BOFEPUSU.
Rari raised concerns that the government’s enforcement of teacher’s work, through a court order will result in reduced classroom productivity and morale. Rari added that this situation would negatively impact labour relations and teachers emotional wellbeing due to dissatisfaction in their work places leading to persistently poor academic outcomes.
“You can get an order that forces people to work, but what happens at work, it heightens emotions, it destroys relationships and the morale goes down and productivity does. Courts and judgments don’t solve productivity issues. Productivity only comes when people are satisfied at the workplace, so if you force them to work through a court order then you may not get the maximum out of the working population,” said Rari
MESD vs BOSETU COURT CASE
“As you are aware, the Ministry of Education approached courts and they were demanding three things from the court in this case between BOSETU and the ministry. First, they were demanding that the joint letter that was written by BOSETU and Botswana Teachers Union (BTU) asking members to stop doing course work because there was no agreement be declared unlawfully and BOSETU should write to its members and withdraw that letter within 24hrs. The second thing that they were looking for, was to interdict BOSETU from further issuing any instructions to that effect going forward. Lastly was that court should hold BOSETU to pay the cost of the lawsuit on a punitive scale,” Rari said.
Rari stated that the court decided to rule in favour of the Ministry of Education on all three relieves sought, that the savingram should be declared unlawful, that BOSETU should withdraw the contents savingram within 24hrs.
Court also said BOSETU should not issue any of such instructions going forward up until the case of contempt that BOSETU has taken to court, the contempt of the 2009 judgment has been decided. Court also awarded cost to the ministry on a punitive scale.
“BOSETU is a law abiding citizen and therefore we are bound by any laws and judgments that are there in Botswana and arise on the courts of Botswana hence we have complied with the order. On the 31st after the court case, we wrote to all our members and told them that the contents of that savingram as far as coursework is concerned has been withdrawn,” said Rari.
Rari said what happened in this case is that the judge decided to listen to the urgency without the responding affidavits of the opposing party, BOSETU, and went on to rule the merit of the case, which surprised the union.
“However we have been in discussion with our lawyers because if we leave things like this, we feel like we cannot leave that unchallenged. We have taken a decision to appeal the judgment,” Rari confirmed.
2023 COURSEWORK AND INVIGILATION AGREEMENT
“We would like to make our members aware that the following day after the judgment, we were able to meet the Ministry of Education and we have arrived at a conclusion that we signed an agreement that coursework rates will be increased by 5%. If court had ruled that coursework is the duty of the teachers’ means it wouldn’t have been any agreement after the court case, it tells you that the issue is still open and it is on the table. We have arrived at an agreement that there is going to be an increment on all components of coursework and invigilation,” Rari pointed out.
Rari further explained that Article 2 says union party is to submit detailed proposals on the intensity of the coursework for further engagement. Intensity of coursework means where the coursework payment starts in terms of varying from different subjects. He said the outcome based subject that are taught Maun Senior Secondary School and Moeng college which are agriculture and hotel and tourism is that ministry have agreed and acknowledge that there are some peculiarity in their coursework and therefore should be paid in line with the peculiarities that are contained in their coursework.
CONGRESS RESOLUTION
Rari pointed out the resolutions taken at the conference where the issue of application of corporal punishment was addressed. “BOSETU will issue out a memo to their members to advise them that they should not apply corporal punishment, they should leave it to be applied in line with the Education Act.”
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BMC sees red as mass buffaloes disrupt plans to supply schools
The Botswana Meat Commission (BMC) which had struck a deal with the Ministry of Education to supply some schools in the northern part of the country is counting losses as mass migration of buffalos jeopardize the Commission’s plans.
Information reaching this publication shows that the beef exporter was recently given the greenlight to supply government schools with beef. According to documents seen by this publication, as a result BMC had scheduled to buy and collect cattle in the Nata-Gweta and Boteti constituencies from 11 to 17 September.
This was after BMC and the Ministry of Education struck a deal for the former to supply government schools with beef. Letters exchanged between Ministry officials state that it has been recommended to the ministry to support BMC by allowing it to supply schools with beef products.
The Ministry indicated that it was aware that some schools have contracts that are currently running with suppliers such as local butcheries.
The Ministry revealed that at the same time BMC has 256 tins of frozen quality meat at its Maun Plant.
The Ministry requested the Director-Regional Operations to appoint an officer to manage the procurement of meat for schools that do not currently have running contracts. The Ministry further stated that Modalities of collection will be arranged between the region and the schools identified.
According to the Ministry, a list of schools including the condition of their cold rooms and their number of deliveries and kilograms per week they buy should be compiled. The Ministry also requested its officials to share the list with headquarters and the acting director-Basic Education, and engage BMC accordingly to procure.
But this plan ran into trouble after it emerged that between 300 to 500 buffalos migrated from the buffalo fence area to Nata, Dukwi and Mosetse areas.
The Department of Veterinary Services sprang into acting by revising movement protocol for cloven-hoofed animals with immediate effect following buffalo sightings in zone 3b which covers Nata/Sowa, zone 3c which is around the Dukwi areas as well as zone 6a, which covers the Mosetse area, which fall under zones, 3b, 3c, 5,6a and 8.
The Department of Veterinary Services indicated that as a result, movement of live cloven-hoofed animals and their products out of zones 3b, 3c, 5, 6a and 8 were prohibited and that movement of live cloven-hoofed animals within and into these zones is only allowed for direct slaughter at licensed slaughter facilities under veterinary movement permit issued through BAITS.
The department also indicated that the movement of fresh products derived from cloven-hoofed animals such as raw milk, skins and fresh meat into these zones is also only allowed under a similar arrangement.
Movement of live cloven-hoofed animals into these zones for rearing and other purposes will not be allowed, and farmers and the general public is requested to continue being vigilant and report any buffalo sightings to the nearest veterinary office, the police or the Department of Wildlife and National Parks, the department said.
Meanwhile the Ministry of Agriculture has stated that following the press release on prohibition of movement of live cloven-hooved animals and their products in and out of Zones 3b, 3c, 5, 6a & 8, the acting Minister of Agriculture Karabo Gare, his counterpart Acting Minister of Environment, Wildlife & Tourism Mabuse Pule, acting Permanent Secretary in the Ministry of Agriculture Mr. Joshua Moloi, Director of Veterinary Services Dr Kefentse Motshegwa and other government officials visited the areas of Sepako and Dukwi respectively on a mission to consult with communities regarding the invasion of the places by buffalos.
Minister Gare alluded that they have been sent by the President of Botswana, who is equally worried by the current situation. He noted that the affected areas have a total of around 300000 cattle and if the situation goes unchecked, there might be detrimental effects on the economy of this country.
He encouraged the communities to help government going forward by reporting any spotted buffalos in their areas, emphasizing that buffalos are dangerous and can kill people and that care should be exercised at all times.
The Director of Veterinary Services mentioned that they closed the above mentioned zones to allow for testing of buffalos & cattle for foot & mouth disease. The wildlife department’s Director Mr. Moremi Batshabang assured farmers and the community that they will eliminate small clusters of buffalos found within communities and translocate larger clusters to ensure their safety.