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Botswana spends more on salaries

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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Woman swindled out of P62 000 by fake CID officers

17th June 2021
Motube

Botswana Police Service (BPS) has indicated concern about the ongoing trend where the general public falls victim to criminals purporting to be police officers.

According to BPS Assistant Commissioner, Dipheko Motube, the criminals target individuals at shopping malls and Automated Teller Machines (ATMs) where upon approaching the unsuspecting individual the criminals would pretend to have picked a substantial amount of money and they would make a proposal to the victims that the money is counted and shared in an isolated place.

“On the way, as they stop at the isolated place, they would start to count and sharing of the money, a criminal syndicate claiming to be Criminal Investigation Department (CID) officer investigating a case of stolen money will approach them,” said Motube in a statement.

The Commissioner indicated that the fake police officers would instruct the victims to hand over all the cash they have in their possession, including bank cards and Personal Identification Number (PIN), the perpetrators would then proceed to withdraw money from the victim’s bank account.

Motube also revealed that they are also investigating a case in which a 69 year old Motswana woman from Molepolole- who is a victim of the scam- lost over P62 000 last week Friday to the said perpetrators.

“The Criminal syndicate introduced themselves as CID officers investigating a case of robbery where a man accompanying the woman was the suspect.’’

They subsequently went to the woman’s place and took cash amounting to over P12 000 and further swindled amount of P50 000 from the woman’s bank account under the pretext of the further investigations.

In addition, Motube said they are currently investigating the matter and therefore warned the public to be vigilant of such characters and further reminds the public that no police officer would ask for bank cards and PINs during the investigations.

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BCP walks out of UDC meeting

15th June 2021
Boko and Saleshando

Botswana Congress Party (BCP) leadership walked out of Umbrella for Democratic Change (UDC) National Executive Committee (NEC) meeting this week on account of being targeted by other cooperating partners.

UDC meet for the first time since 2020 after previous futile attempts, but the meeting turned into a circus after other members of the executive pushed for BCP to explain its role in media statements that disparate either UDC and/or contracting parties.

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Katlholo wins against DPP

15th June 2021
DCEC DIRECTOR: Tymon Katlholo

The Director General of the Directorate on Corruption and Economic Crimes (DCEC), Tymon Katlholo’s spirited fight against the contentious transfers of his management team has forced the Office of the President to rescind the controversial decision. However, some insiders suggest that the reversal of the transfers may have left some interested parties with bruised egos and nursing red wounds.

The transfers were seen by observers as a badly calculated move to emasculate the DCEC which is seen as defiant against certain objectionable objectives by certain law enforcement agencies – who are proven decisionists with very little regard for the law and principle.

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