Property developers who own mall developments in Botswana are looking at taking the next step in their bid to lobby for a further softening of a Trade Act that compels South African chain stores to partner 51 percent with locals if they are to be granted trading licences.
Retail business is big in Botswana. It is worth close to P15 billion annually. The bulk of this money goes to South African retail giants.
Recently, the Minister of Trade, Industry, and Investment Vincent Seretse reiterated his stance that he was not going to back down and grant South African chain store owners a waiver to widen their footprint in the country by opening new outlets.
If Business Botswana president, Leta Mosienyane’s view that they are free to lobby anyone is anything to go by, then Vice President Mokgweetsi Masisi appears to be the next office bearer that the retailers and property developers with the help of Business Botswana will visit to get him to soften Seretse’s clutched fist. Their argument appears to hinge mostly on employment creation, a task that Masisi is overseeing; they will also point to their role in helping diversify the economy; and the potential consequences of forcing this law through.
In an interview this week Mosienyane said majority of South African retailers are members of Business Botswana and they are advocating for sound businesses for all-including South African retailers and the locals. He also believes that 51% is too steep, “its worth billions and one would wonder if Batswana have access to finances to buy that investment.” He further said there are a lot of business models that can be used such as warehousing. He gave an example of South Africa where the government has underwritten the private sector (ABSA) to finance locals and pay them back through dividends.
However Masisi will also have to contend with the views scores of citizen business owners who are finding it difficult to compete with South African retailers and are also struggling to keep up with the rental demands of the top end malls. A number of local business people have written a co-signed letter supporting Seretse’s demands and Business Botswana is said to be not happy with them.
Mosienyane said South African retailers come as clusters and anchors bringing in a value chain which is worth billions. “When they come they push out Batswana and as Business Botswana we would be happy to see if Batswana can compete,” he said. He went on to applaud Minister Seretse for implementing this policy and added he (Seretse) should take another step further to finish off where he started. He said they have the right to lobby anyone including Vice President Mokgweetsi Masisi.
Seretse wants South African retailers to partner with Batswana and give them a controlling 51 percent stake in their businesses. Seretse’s crusade is hinged on the argument of citizen economic empowerment; something which he says has eluded this country for a long time. The law has been around for a while just that before Minister Seretse’s ascendance to the throne there has been a series of waivers granted in favour of South African retailers.
Minister Seretse and his assistant are not on the same page on the matter, report suggests. Indications are that Assistant Minister Sadique Kebonang is leaning towards a softened approach that will allow South Africa retailers to continue growing their footprints.
With a number of new malls coming up in places like Gaborone, Mahalapye, Palapye and Francistown, pressure is mounting on Seretse to relax the law. The intervention of Vice President Masisi could strike the balance in such a way that both local retailers, who are predominantly small in terms of balance sheet and giant South African retailers, are appeased. Some of the malls in Pilane and Gaborone had to delay their opening because of the anchor tenants are yet to be given their trading licences. For some in the retail business it is a catch 22 situation because jobs are at stake; while at the same time citizens are not penetrating the retail market because of South African retailers’ over domination of the sector. Mafia Soul founder, Molefe Nkwete observes that Minister is right with his intervention but it needs to be measured to cater for the interests of all parties involved.
Property developers like Time Projects, Turnstar, Nafprop and others are afraid that the law will have adverse effects on their business because the South African retailers form the bulk of their tenants. It is evident though that the South African retailers are not comfortable with a law that compels them to give controlling stake in their businesses away and they have enlisted property developers and Business Botswana to help argue their case against the Minister.
Business Botswana president, Leta Mosienyane who is not in support of Minister Seretse’s law said they are hopeful that a decision that favours property developers and all retailers will be reached. He said as Business Botswana they want laws that are progressive and favour both the local empowerment and foreign investment. He said the laws should not only be inward looking but should promote outside investment.
THE REAL PROBLEM LIES ELSEWHERE?
Mafia Soul’s recent altercation with the Game City mall developer is seen as the snow ball of the ongoing tiff between local retail businesses and property developers. Small retailers believe that overestimated rentals are used to push them out of prime spaces in favour of big retailers.
There is a general feeling among local retailers that South African retailers are favoured ahead of locals.
Mafia Soul has had to endure a period of lost business during the Game City mall renovations and the balance sheet thinned. At some stage they requested that their rent be reduced from P35 000 and the rent was cut by P3000. As the sales continued to drop to as low as 40 % the business owners wrote another letter demanding that the rent be waived for six months and they be compensated with P250 000 for lost business as a result of mall renovations.
But these were both rejected outright and they were told that their lease will be terminated. Following this communication they started experiences frequent electricity cuts occasioned by the property management, something which they challenged from a legal perspective on the grounds that mall developer was not a utility company.
The argument from the likes of Mafia Soul is that their businesses are not given the same treatment as the South African businesses, they point to incentives directed to South African retailers such as Tenant Installation support where a tenant could receive funding to start up and even pay salaries for six months.
They indicate that the reason why they support Minister Seretse’s law is because of the skewed practices that do not favour local retailers. “Let the playing ground be fair and we shall all be in harmony,” said Nkwete, whose business has paid rental accruing to P2.5 million in the last five years at Game City mall.
He confirmed that they currently owe close to P164 000 in rentals as a result of slow business at the mall because of the renovations. He said they have a pending case with Turnstar at the High Court and it is penned of December 6th this year.
Minister of Presidential Affairs, Governance and Public Administration, Kabo Morwaeng together with Permanent Secretary to the President (PSP) Elias Magosi, this week refused to name and shame the worst performing Ministries and to disclose the best performing Ministries since beginning of 12th parliament including the main reasons for underperformance.
Of late there have been a litany of complaints from both ends of the aisle with cabinet members accused of providing parliament with unsatisfactory responses to the questions posed. In fact for some Botswana Democratic Party (BDP) backbenchers a meeting with the ministers and party leadership is overdue to address their complaints. Jwaneng-Mabutsane MP, Mephato Reatile is also not happy with ministers’ performance.
Bokamoso Private Hospital is battling a P10 million legal suit for a botched fibroids operation which resulted in a woman losing an entire womb and her prospects of bearing children left at zero.
The same suit has also befallen the Attorney General of Botswana who is representing the Ministry of Health and Wellness for their contributory negligence of having the unlawful removal of a patient, Goitsemang Magetse’s womb.
According to the court papers, Magetse says that sometimes in November 2019, she was diagnosed with fibroids at Marina Hospital where upon she was referred to Bokamoso Private Hospital to schedule an appointment for an operation to remove the fibroids, which she did.
Magetse continues that at the instance of one Dr Li Wang, the surgeon who performed the operation, and unknown to her, an operation to remove her whole womb was conducted instead. According to Magetse, it was only through a Marina Hospital regular check-up that she got to learn that her whole womb has been removed.
“At the while she was under the belief that only her fibroids have been removed. By doing so, the hospital has subjected itself to some serious delictual liability in that it performed a serious and life changing operation on patient who was under the belief that she was doing a completely different operation altogether. It thus came as a shock when our client learnt that her womb had been removed, without her consent,” said Magetse’s legal representatives, Kanjabanga and Associates in their summons.
The letter further says, “this is an infringement of our client‘s rights and this infringement has dire consequences on her to the extent that she can never bear children again”. ‘It is our instruction therefore, to claim as we hereby do, damages in the sum of BWP 10,000,000 (ten million Pula) for unlawful removal of client’s womb,” reads Kanjabanga Attorneys’ papers. The defendants are yet to respond to the plaintiff’s papers.
What are fibroids?
Fibroids are tumors made of smooth muscle cells and fibrous connective tissue. They develop in the uterus. It is estimated that 70 to 80 percent of women will develop fibroids in their lifetime — however, not everyone will develop symptoms or require treatment.
The most important characteristic of fibroids is that they’re almost always benign, or noncancerous. That said, some fibroids begin as cancer — but benign fibroids can’t become cancer. Cancerous fibroids are very rare. Because of this fact, it’s reasonable for women without symptoms to opt for observation rather than treatment.
Studies show that fibroids grow at different rates, even when a woman has more than one. They can range from the size of a pea to (occasionally) the size of a watermelon. Even if fibroids grow that large, we offer timely and effective treatment to provide relief.
The Alliance for Progressives (AP) President Ndaba Gaolathe has said that despite major accolades that Botswana continues to receive internationally with regard to the state of economy, the prospects for the future are imperilled.
Delivering his party Annual Policy Statement on Thursday, Gaolathe indicated that Botswana is in a state of do or die, and that the country’s economy is on a sick bed. With a major concern for poverty, Gaolathe pointed out that almost half of Botswana’s people are ravaged by or are about to sink into poverty. “Our young people have lost the fire to dream about what they could become,” he said.