Botswana spends more on salaries
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The economy performed slightly better than originally forecast for the National Development Plan 10, this is according to Dr. Taufila Nyamadzabo, Secretary, Economic and Financial Policy at the Ministry of Finance and Economic Development
A modest structural transformation occurred with the non-mining sectors of: Trade, Hotels and Restaurants; and Banks, Insurance & Business Services, playing a major role in driving the economy, with Govt. also improving slightly. Dr Nyamadzabo observed that this calls for concerted diversification effort with more emphasis on export-led-growth. When it comes to Sector Contribution during NDP 10, the Mining sector on average declined by 3.4 percent, the non-mining sector grew by 5.6 percent cushioning the decline of real GDP.
The Financial Policy Secretary shared his observations when making a Presentation of the draft NDP 11 macroeconomic chapters recently where he observed that to achieve the theme of NDP 11 of “Inclusive Growth for the Realisation of Sustainable employment Creation and Poverty Eradication” thorough strategies be adopted. He called for the development of diversified sources of growth; Eradication of Poverty & Reduction of Income Inequalities; Strengthening Social Protection Programmes; and Enhancing Government implementation capacity, among other strategies.
Government Budget
Dr Nyamadzabo indicated that total Revenues are estimated at P295.0 billion during NDP10. He said revenue driven by Mineral Revenue was 34.9% of total revenues and Customs & Excise accounted for 27.1%, indicating the need to strengthen diversification efforts in order to increase and diversify the revenue base. Non-mineral Income Tax stood at 17.2% and value Added Tax is 12.2%.
“Government expenditure is estimated at P304.0 billion during NDP10 and Recurrent expenditure, mainly wages & salaries is the major driver for total spending, accounting for 74.0% while Development Expenditure accounts for 26.0%. Recurrent Budget is estimated at P225.4 billion while the Development Budget is estimated at P76.8 billion. Net Lending is estimated at P1.7 billion.”
Dr Nyamadzabo said while Government expenditure stimulates growth, it has the potential to crowd out private sector growth and reverse diversification efforts. Therefore, there is need to stimulate private sector growth and attract investment, including FDI, he said.
“There has been relatively higher growth in recurrent than development expenditure hence there is need to account for recurrent cost arising from development expenditure (i.e., maintenance requirement, utilities, wages& salaries). Overall, the budget balance indicates an estimated deficit of P8.4 billion, or – 5.6% of GDP, over the Plan period, as against P31.9 billion projected.”
According to Dr Nyamadzabo, developing diversified sources of growth is priority. He observed that there is need to push further on Beneficiation, cluster development, Special Economic Zones, EDD, SMMEs & Informal Sector, Natural Resources & Climate Change, and Promoting Local Economy Development. He further stressed on Export -Led Growth Strategy and Domestic Expenditure as a Source of Growth and Employment Creation.
He also emphasised on ensuring a conducive environment for private sector growth and employment creation. He said it critical to maintain macroeconomic stability; a sound regulatory framework for Doing Business and Global Competitiveness; well thought out infrastructure development; labour productivity and skills development; and land servicing, among other things.
On the eradication of poverty and reduction of income inequalities, Dr Nyamadzabo said sustainable livelihoods for the poor could be achieved by accelerating job creation through economic diversification and broad based growth on the one hand, and strengthening human development of the poor on the other.
He said access to basic services like health, education and water provision is fundamental. He said there is need to break the cycle of child poverty, by unpacking and addressing it in detail in the context of inclusive growth.
He called for the provision of social safety nets and other measures to address poverty. He stressed on the development of the informal sector and SMMEs; citizen economic empowerment programmes; Developing and improving productivity of the agricultural sector; Ensuring affirmative action to promote equal opportunities and equal treatment to cater for vulnerable groups, including women, elderly and people with disabilities, etc.
Enhancing Govt. implementation capacity
Dr Nyamadzabo said it is of paramount importance to Improve the overall coordination of the implementation of Government programmes. He said establishing project implementation units to undertake mega projects; Re-engineering the tendering and adjudication processes to ensure speedy delivery of projects; Enforcing sanctions as per the contracts; could be some of the solutions.
In addition, Dr Nyamadzabo emphasised on blacklisting companies that perennially fail to complete projects on time and budget; Implementing the privatisation policy as well as the public service reforms, outsourcing programme; Increasing the use of the Public-Private Partnerships (PPPs) project delivery mechanism; and, Implementing an effective and efficient national monitoring and evaluation system.
Macroeconomic projections for NDP 11
According to Dr Nyamadzabo budget deficits are projected for the first three years of NDP 11. But he further shared that slight budget surpluses are projected over the last half of the Plan period with a cumulative surplus of P1.05 billion being projected for the entire NDP11.
CONCLUSION
Dr Nyamadzabo said the review of NDP10 shows that low growth rates, undiversified economy, and continued dependency on mineral revenue and Customs & Excise, call for more effort to be put in growing the economy and expanding the revenue base.
He said the development challenges of unemployment, poverty, income inequality must be tackled hard. He said these could be achieved through implementation of sustainable policies, strategies and programmes that can create more employment opportunities and eradicate poverty.
Like its predecessor plans, NDP11 recognises the need to strengthen diversification efforts; more emphasis will be placed on: promoting exports; increasing private sector participation through Privatisation, Outsourcing of core activities and PPPs in order to ease the burden on Government.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.