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BOPEU President takes government head on!

BOPEU’s new President, Masego Mogwera, has come out with guns blazing that Government cannot and must not abdicate its primary responsibility and priority.

 

Mogwera has pointed out that, by abdicating its priority, its primary responsibility, the Government will then have no role to play in the lives of the citizens, the welfare of the nation and the future of the country and thus its purpose and relevance will be questionable. BOPEU’s iron lady was addressing members of the media two days after the presentation of the 2017/2018 budget speech.


Minister of Finance and Development Planning, Kenneth Mathambo, has during the 2017 / 2018 National Development Budget proposals in the National Assembly remarked that, “with regard to employment creation, it is important to clarify that the principal role of Government is not to create jobs directly, but to provide a conducive macroeconomic environment to facilitate the development of the private sector”.

 

BOPEU has come out openly to differ with the Minister of Finance on his assertions that it is not Government responsibility to create jobs.  BOPEU President, Masego Mogwera has fiercely went on an outrage that “BOPEU vehemently rejects this preposition and characterize it as an abdication of state responsibility”. The statement by the Finance Minister is a departure from the stance of Government in the 2016/17 Budget.


Further the stance of the Minister of Finance on job creation is contrary to Government’s international obligations under the DECENT WORK COUNTRY PROGRAMME, entered by and between the Government of Botswana and the International Labour Organization (ILO) on the 17th of February 2011 where amongst other things, employment creation was identified as Botswana’s top priority.

 

It is for this reason that during the last national budget speech, Government remarkably outlined some of the economic activities undertaken by Government with potential for creating employment such as infrastructure backlog eradication, road networks and maintenance, wildlife and tourism initiatives among others. Mogwera thus lamented that, “it was therefore utterly shocking and devastating to hear Minister Mathambo abdicating the Government from its number one responsibility. And one may wonder what will be the role of Government if it is abdicating itself from its number one priority”?


BOPEU’s iron lady further contents that, the 2017/18 budget speech statement on the role of Government in job creation and the 2016/17 budget speech employment creation strategies depicts what she terms “glaring contradictions”. She further contents that the 2016/17 Budget approach to job creation by Government was very commendable despite the lack of specific and measurable targets and sustainability of the jobs alluded to.

 

The approach resonated well with listing job creation as a national priority.  In BOPEU’s view, Government should have endeavoured to improve this approach rather than opting to eliminate it and deciding to occupy the back seat to watch as business ‘presumably’ takes place.


When this publication quizzed Mogwera whether there is a distinct difference between job creations and creating an environment for equitable job creation she hit back that, “Government’s effort to provide a conducive environment to facilitate development of the private sector is not a new phenomenon and has never seen the light of the day. The promised improvements in ICT, electricity and water supply and land policing and servicing among other things as efforts to create a conducive business environment are not justifiable and adequate for job creation initiative.”


Though BOPEU iron lady concurs that Government should create a conducive environment for the private sector to create employment, she is however of the firm view that Government has a direct responsibility in job creation without necessarily ballooning the wage bill by identifying strategic sectors such as tourism and mining with a potential for employment creation. And she emphasises that Mathambo must be clear if this new view is his or it’s a collective Government view because it is a total deviation from last year’s budget and economic plan.


To further compound this contradiction, Government has further committed itself to employment creation in the context of the NDP 11 theme; ‘inclusive growth for realization of employment creation and poverty eradication’. This theme was aptly crafted and befitting to national priorities.

 

Impressively in good accord with the NDP 11 theme, the 2017/18 Government has set a timeline target for the eradication of abject poverty by December 2017; a commendable approach which Mogwera says should have been adopted for employment creation as well. Mogwera is firm that it is for this reason that BOPEU leadership has resolved to call on Government to retract the statement and reconsider its position in so far as job creation is concerned.


BOPEU has also indicated that it has made some proposals in light of the 2017 / 2018 national development budget and will be sending them to Government for consideration. Amongst these proposals is that Government should assume a leading as opposed to a back-bench role with job creation. “We believe that Government should lead job creation initiatives by identifying appropriate and strategic industries to leverage on and inject capital for job creation initiatives” noted Mogwera.

 

It is BOPEU’S assertion that in this way Government, nurtures small businesses with growth potential to expand into big businesses and in turn create employment opportunities for local people. This ‘hand-holding’ and ‘incubation’ of small and medium scale businesses is necessary where local business have persistently failed to position themselves as engines of growth.


Mogwera continued to tell this publication that they believe that small and medium sized businesses contribute immensely to self-employment and improvement of household incomes and livelihoods and hence setting clear targets is the sure way to working within the ambit of strategy monitoring and evaluation, a commendable new national priority government has identified in the 2017/18 budget.  “The Government must take a leading and direct role in employment creation. In our view, job-creation is government responsibility”, Mogwera emphasised.


BOPEU’s new President has also indicated that they are once more sending a proposal to Government that as part of exploring various alternatives to job creation, Government should put in place tax incentives to encourage local companies to employ more graduates. This is not the first time that BOPEU has made this proposal to Government and BOPEU seems to be hell bent on pursuing this proposal until it sees the light of the day. This proposal was first made by BOPEU after the 2015 / 2016 budget speech during their then breakfast budget speech review.


It is through this proposal that BOPEU is asserting that through the Government should set a specific number of employees that should any local company employ, such an employer would be entitled to tax exemption. In essence, the more graduates a company employs, the more tax exemption it enjoys.  In this sense, in their feat to avoid tax, local companies will be encouraged to employ more graduates.

 

This can help circumvent the rampant crisis of graduate unemployment and this is what Mogwera asserts is amongst the many ways of direct job creation by Government that Mathambo’s 2017/2018 seeks to abdicate the Government from as a number one priority and primary responsibility. Mogwera further contents that, in doing so, the Botswana Government as a signatory to the International Labour Organisation’s Decent Work Country Programme, should take all necessary measures to ensure that jobs created are decent.

 

Decent and sustainable jobs are emphasized in the Decent Work Country Programme of the International Labour Organization which Botswana Government’s international obligations under the Decent Work Country Programme, entered by and between the Government of Botswana and the International Labour Organization (ILO) on the 17th of February 2011 where amongst other things, employment creation was identified as Botswana’s top priority.

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Over 2 000 civil servants interdicted

6th December 2022

Over 2,000 civil servants in the public sector have been interdicted for a variety of reasons, the majority of which are criminal in nature.

According to reports, some officers have been under interdiction for more than two years because such matters are still being investigated. Information reaching WeekendPost shows that local government, particularly councils, has the highest number of suspended officers.

In its annual report, the Directorate on Corruption and Economic Crime (DCEC) revealed that councils lead in corrupt activities throughout the country, and dozens of council employees are being investigated for alleged corrupt activities. It is also reported that disciplined forces, including the Botswana Defence Force (BDF), police, and prisons, and the Directorate of Intelligence and Security (DIS) have suspended a significant number of officers.

The Ministry of Education and Skills Development has also recorded a good number of teachers who have implicated in love relationships with students, while some are accused of impregnating students both in primary and secondary school. Regional education officers have been tasked to investigate such matters and are believed to be far from completion as some students are dragging their feet in assisting the investigations to be completed.

This year, Mmadinare Senior Secondary reportedly had the highest number of pregnancies, especially among form five students who were later forcibly expelled from school. Responding to this publication’s queries, Permanent Secretary to the Office of the President Emma Peloetletse said, “as you might be aware, I am currently addressing public servants across the length and breadth of our beautiful republic. Due to your detailed enquiry, I am not able to respond within your schedule,” she said.

She said some of the issues raised need verification of facts, some are still under investigation while some are still before the courts of law.

Meanwhile, it is close to six months since the Police Commissioner Keabetwe Makgophe, Director General of the Directorate on Corruption and Economic Crime (DCEC) Tymon Katlholo and the Deputy Director of the DIS Tefo Kgothane were suspended from their official duties on various charges.

Efforts to solicit comment from trade unions were futile at the time of going to press.

Some suspended officers who opted for anonymity claimed that they have close to two years while on suspension. One stated that the investigations that led him to be suspended have not been completed.

“It is heartbreaking that at this time the investigations have not been completed,” he told WeekendPost, adding that “when a person is suspended, they get their salary fully without fail until the matter is resolved”.

Makgophe, Katlholo and Kgothane are the three most high-ranking government officials that are under interdiction.

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Masisi to dump Tsogwane?

28th November 2022

Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.

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African DFIs gear to combat climate change

25th November 2022

The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.

Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa

A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.

COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”

According to Moribame, Start-up businesses will forever require help if there is no change.

“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”

Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”

Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.

Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.

“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.

For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.

“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.

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