The Chairman of Wayei Chieftaincy Council, Gchiba Ditando has thrashed rumors that the Bayei tribe is divided on who should represent them at Ntlo ya Dikgosi (House of Chiefs).
Ditando made the statement in response to allegations that some tribesmen do not want the Council’s nominee, Chief Fish Ozoo to be their representative. The tribesmen are said to be of the view that Ozoo does not have the qualities to represent them well in such a high profile and influential forum.
Nonetheless, Ditando has dismissed such alleged fears as unfounded. In fact he said Ozoo’s name has been submitted before the Minister of Local Government and Rural development, Slumber Tsogwane for confirmation because Bayei tribe has chosen him as their chief. “Bayei are an independent tribe so we do not seek any permission from any tribe or anyone to come up with the name of someone who will represent us,” Ditando pointed out.
Clarifying as to how the tribe came up with the name of Chief Ozoo to be their representative, Ditando explained that Bayei tribe has three royal families from which the chief has to be chosen. Those royal families include Bogosi Jwa ga Mathwara, Bogosi Jwa ga Hankuzi and Bogosi Jwa ga Xonkue. Ditando pointed out that a paramount chief of Bayei will always come from one of these families in case the position of the chief becomes vacant as the Chieftaincy in the Wayei tribe is not hereditary.
He therefore stated that the reason why they chose Chief Ozoo is that when they looked amongst the three families, they saw him as the best candidate as he possesses good leadership qualities and he understands very well the history and traditions of the Bayei. The Bayei chieftaincy was left vacant following the demise of Chief Shikati Calvin Kamanakao in 2003.
Kamanakao passed on before he could be legally recognized as Bayei chief although his tribe had installed him as paramount chief in April 1999, then Attorney General, Ian Kirby wrote the tribe in July of the same year telling them that they could not have a paramount chief as they were not legally recognized as a tribe. Before his demise, Kamanakao fought for the recognition of his people as an independent tribe.
Some tribe’s men who are now opposing Ozoo’s appointment suggest that he should at least be appointed as regent to hold the fort on behalf of the late Kamanakao’s son until he is old enough to take up the responsibility.
Nonetheless, Ditando contended that, “as I said earlier, the chieftaincy of Bayei is not hereditary but if we see that the son of the late Shikati Kamanakao is fit and has all the leadership qualities we require from him to be our chief, we will give him a chance to be our paramount chief.”
Ozoo’s name was submitted for the second time in the form of a letter to the Minister after the first letter was allegedly turned down. According to Ditando, the Minister did not accept the initial nomination because he was of the view that procedure was not followed.
“The letter was not returned, immediately after the minister recognized the Bayei as a tribe we submitted the name of Chief Fish Ozoo to be our representative at Ntlo Ya Dikgosi but the minister advised us to go and follow the procedures stated on the Bogosi Act Section 6, subsection (1). We met at Gumare Main Kgotla which is our Headquarters as the Wayei Tribe on September 19 and we came up with Chief Ozoo’s name,” explained Ditando.
The said section 6 and subsection (1) of Bogosi Act prescribes that where there is a vacancy in the Bogosi of a tribe, either by reason of death, deposition, abdication or retirement it shall be the duty of the tribe assembled at the Kgotla under the chairmanship of the senior member of the tribe to designate the rightful heir to the Bogosi according to the customary law, or according to the established norm and practice of that tribe.
However Ditando maintained that the reason why they initially did not follow such procedure was because Bayei already knew who their paramount chief was and so they thought that there was no reason to assemble for that. But this action has allegedly left the tribe divided including those close to royalty. Some are not happy with the way the Wayei Chieftaincy Council is dealing with this issue as they say there was no transparency in the whole process.
“We are not happy because the Wayei Chieftainship Council does not take us seriously and does not consult us on issues that affect us as tribe. How can they come up with someone who is supposed to be our paramount chief without consulting us first? What criteria did they use to choose Chief Ozoo?” commented one of the tribe’s men.
Meanwhile, Ditando noted that, no one from the royal families has shown interest to lead the tribe.
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.”
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.
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.”