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.
BPC Signs PPA with Sekaname Energy
The Botswana Power Corporation (BPC) has taken a significant step towards diversifying its energy mix by signing a power purchase agreement with Sekaname Energy for the production of power from coal bed methane in Mmashoro village. This agreement marks a major milestone for the energy sector in Botswana as the country transitions from a coal-fired power generation system to a new energy mix comprising coal, gas, solar, and wind.
The CEO of BPC, David Kgoboko, explained that the Power Purchase Agreement is for a 6MW coal bed methane proof of concept project to be developed around Mmashoro village. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy in the energy mix. The use of coal bed methane for power generation is an exciting development as it provides a hybrid solution with non-dispatchable sources of generation like solar PV. Without flexible base-load generation, the deployment of non-dispatchable solar PV generation would be limited.
Kgoboko emphasized that BPC is committed to enabling the development of a gas supply industry in Botswana. Sekaname Energy, along with other players in the coal bed methane exploration business, is a key and strategic partner for BPC. The successful development of a gas supply industry will enable the realization of a secure and sustainable energy mix for the country.
The Minister of Minerals & Energy, Lefoko Moagi, expressed his support for the initiative by the private sector to develop a gas industry in Botswana. The country has abundant coal reserves, and the government fully supports the commercial extraction of coal bed methane gas for power generation. The government guarantees that BPC will purchase the generated electricity at reasonable tariffs, providing cash flow to the developers and enabling them to raise equity and debt funding for gas extraction development.
Moagi highlighted the benefits of developing a gas supply industry, including diversified primary energy sources, economic diversification, import substitution, and employment creation. He commended Sekaname Energy for undertaking a pilot project to prove the commercial viability of extracting coal bed methane for power generation. If successful, this initiative would unlock the potential of a gas production industry in Botswana.
Sekaname Energy CEO, Peter Mmusi, emphasized the multiple uses of natural gas and its potential to uplift Botswana’s economy. In addition to power generation, natural gas can be used for gas-to-liquids, compressed natural gas, and fertilizer production. Mmusi revealed that Sekaname has already invested $57 million in exploration and infrastructure throughout its resource area. The company plans to spend another $10-15 million for the initial 6MW project and aims to invest over $500 million in the future for a 90MW power plant. Sekaname’s goal is to assist BPC in becoming a net exporter of power within the region and to contribute to Botswana’s transition to cleaner energy production.
In conclusion, the power purchase agreement between BPC and Sekaname Energy for the production of power from coal bed methane in Mmashoro village is a significant step towards diversifying Botswana’s energy mix. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy. The government’s support for the development of a gas supply industry and the commercial extraction of coal bed methane will bring numerous benefits to the country, including economic diversification, import substitution, and employment creation. With the potential to become a net exporter of power and a cleaner energy producer, Botswana is poised to make significant strides in its energy sector.
UDC deadlock: Boko, Ndaba, Reatile meet
It is not clear as to when, but before taking a festive break in few weeks’ time UDC leaders would have convened to address the ongoing deadlock surrounding constituency allocation in the negotiations for the 2024 elections. The leaders, Duma Boko of the UDC, Mephato Reggie Reatile of the BPF, and Ndaba Gaolathe of the AP, are expected to meet and discuss critical matters and engage in dialogue regarding the contested constituencies.
The negotiations hit a stalemate when it came to allocating constituencies, prompting the need for the leaders to intervene. Representatives from the UDC, AP, and BPF were tasked with negotiating the allocation, with Dr. Patrick Molotsi and Dr. Philip Bulawa representing the UDC, and Dr. Phenyo Butale and Wynter Mmolotsi representing the AP.
The leaders’ meeting is crucial in resolving the contentious issue of constituency allocation, which has caused tension among UDC members and potential candidates for the 2024 elections. After reaching an agreement, the leaders will engage with the members of each constituency to gauge their opinions and ensure that the decisions made are favored by the rank and file. This approach aims to avoid unnecessary costs and conflicts during the general elections.
One of the main points of contention is the allocation of Molepolole South, which the BNF is adamant about obtaining. In the 2019 elections, the UDC was the runner-up in Molepolole South, securing the second position in seven out of eight wards. Other contested constituencies include Metsimotlhabe, Kgatleng East and West, Mmadinare, Francistown East, Shashe West, Boteti East, and Lerala Maunatlala.
The criteria used for constituency allocation have also become a point of dispute among the UDC member parties. The issue of incumbency is particularly contentious, as the criterion for constituency allocation suggests that current holders of UDC’s council and parliamentary seats should be given priority for re-election without undergoing primary elections. Disadvantaged parties argue that this approach limits democratic competition and hinders the emergence of potentially more capable candidates.
Another disputed criterion is the allocation based on the strength and popularity of a party in specific areas. Parties argue that this is a subjective criterion that leads to disputes and favoritism, as clear metrics for strength and visibility cannot be defined. The BNF, in particular, questions the demands of the new entrants, the BPF and AP, as they lack a traceable track record to support their high expectations.
The unity and cohesion of the UDC are at stake, with the BPF and AP expressing dissatisfaction and considering withdrawing from the negotiations. Therefore, it is crucial for the leaders to expedite their meeting and find a resolution to these disputes.
In the midst of these negotiations, the BNF has already secured 15 constituencies within the UDC coalition. While the negotiations are still ongoing, BNF Chairman Dr. Molotsi revealed that they have traditionally held these constituencies and are expecting to add more to their tally. The constituencies include Gantsi North, Gantsi South, Kgalagadi North, Kgalagadi South, Good Hope – Mmathethe, Kanye North, Kanye South, Lobatse, Molepolole North, Gaborone South, Gaborone North, Gaborone Bonnignton North, Takatokwane, Letlhakeng, and Tlokweng.
The resolution of the contested constituencies will test the ability of the UDC to present a united front in the 2024 National Elections will depend on the decisions made by the three leaders. It is essential for them to demonstrate maturity and astuteness in resolving the constituency allocation deadlock and ensuring the cohesion of the UDC.
Repeat flight-risk suspect pays the piper
In Botswana, the Constitution Section 5 (3) (b) provides that conditions of bail are necessary to ensure that an accused appears at a later date for trial or for proceedings preliminary to trial. These conditions may include restrictions on interfering with state witnesses, the payment of a certain amount, the provision of sureties, the submission of travel documents, reporting to the police regularly, and appearing for all court mentions or proceedings. Failure to abide by these conditions can result in the revocation of bail. Robert Seditseng, a murder accused who has been detained since 2016, is currently facing the consequences of not adhering to his bail conditions – therefore paying the piper.
Despite numerous unsuccessful bail applications over the past five years, Gaborone High Court judge Michael Leburu denied Seditseng bail this week. Seditseng had requested to be set free before his trial starts on April 12th, but his freedom will now depend on the verdict. He is charged with the murder of his girlfriend, Siscah Mutukee, on June 22nd, 2016, in Charleshill.
Judge Leburu ruled that Seditseng is not a candidate for bail due to being a flight risk, as he has previously absconded from court. Defense lawyer David Ndlovu pleaded with the court to consider the time Seditseng has already spent in prison, but Leburu questioned whether there was any guarantee that Seditseng would not abscond again, given that he had done so twice before.
An affidavit from Investigations officer (IO), Constable Kedibonye Botsalo, supports the view that Seditseng is not a suitable candidate for bail due to his tendency to abscond when granted bail. The affidavit explains that Seditseng was initially denied bail by the magistrate court due to ongoing investigations and the possibility of tampering with evidence. However, a concession was later made by the prosecution, and Seditseng was granted conditional bail by the lower court.
The court documents reveal that Seditseng failed to appear before court on March 7th, 2016, without providing any explanation. As a result, a warrant for his arrest was issued. The case proceeded without him on several occasions until he finally appeared before court on July 13th, 2017. On that day, Seditseng’s bail was revoked due to his inability to provide valid reasons for his absences.
On October 4th, 2017, Seditseng was granted bail for the second time. However, he was once again absent from court on October 31st, 2017, without providing any reasons. He continued to be absent from court on five subsequent occasions until his arrest and appearance before court on August 30th, 2018.
During a period of nine months, Seditseng absconded from court without providing any reasons for his actions. This repeated pattern of absconding demonstrates a clear disregard for the bail conditions and raises concerns about his willingness to appear for trial.
Given Seditseng’s history of absconding and the potential risk of him doing so again, Judge Leburu’s decision to deny him bail is justified. The purpose of bail is to ensure the accused’s presence at trial, and Seditseng has repeatedly shown a lack of commitment to fulfilling this obligation. It is crucial to prioritize the safety of the community and the integrity of the justice system by keeping flight-risk suspects like Seditseng in custody until their trial is concluded.
In conclusion, the denial of bail to repeat flight-risk suspect Robert Seditseng is a necessary measure to ensure his appearance at trial. His history of absconding from court and failure to provide valid reasons for his actions demonstrate a disregard for the bail conditions and raise concerns about his willingness to face justice. By denying him bail, the court is prioritizing the safety of the community and upholding the integrity of the justice system.