The new Commander of Botswana Defense Force (BDF), Lieutenant General Placid Segokgo could leave the army in two years if his contract is not extended by the head of state at the time.
Segokgo was bestowed the commandership of BDF by President Ian Khama and his predecessor, Lt Gen Gaolathe Galebotswe on Thursday morning, beneath the celebratory sonic boom of F-5 fighter jets.
Segokgo officially donned his three star Lieutenant General rank on Friday.
By his own admission, he is two years junior to the outgoing commander, Lt Gen. Galebotswe who retired after reaching the mandatory military retirement age of 55.
Segokgo is likely to stand down as commander of BDF in the third or fourth quarter of 2018.
While the BDF will routinely be categorical with revealing the age of a high ranking commanding general, Segokgo places himself at the age of 53 and if his contract is not extended by the head of state when he reaches the retirement age of 55, he will be one of BDF commanders to have served the shortest of periods as commander of the army. Galebotswe served as BDF commander for the past four years.
Retired Lt Gen Tebogo Masire is the only BDF commander to have his contract extended by the President. Masire took over from Lieutenant General Matshwenyego Fisher in 2006 and his contract was extended for two years when he reached the retirement age of 55.
President Ian Khama who is also former BDF commander, retired from service at the age of 45 to make his leap into politics. Khama allegedly became a one star Brigadier General at the age of 24 and continues to hold the record of the youngest Brigadier General in the world.
Ironically, Segokgo and Galebotswe were in the same Officer Cadet Serial 3 of 1983, otherwise known as ‘The Golden Class’. The two Lieutenant Generals can even be seen sitting side by side in photographs of Officer Cadet Serial 3 of 1983. The Golden Class included Lt Gen Placid Segokgo himself, Lt Gen Gaolathe Galebotswe, Brigadier Otumiseng Tseleng, Brigadier Mukani Mokobi, Colonel Philip Lebele and Lt Col Geoffrey Mosimaneotsile among others.
Other high ranking military men from The Golden Class include the now Deputy Commander Major General Gotsileene Morake, Brigadier Lawrence Rapula, retired Brigadier George Tlhalerwa, Brigadier Cullen Nkele, and Brigadiers Seretse, Jansen and Kethibogile.
It would seem Segokgo and Galebotswe have always been close as one Brigadier Lawrence Rapula describes that, in a football match against BDF XI, Galebotswe once traded the manning of the goal posts to Segokgo, to lead the strike force against the opponents and in the end they thrashed BDF XI 2-0.
The incoming commander stated in his speech at the change of command that his focus “as commander of BDF shall be in the five key areas of capability, improvement of our conditions of service, the finalization of the BDF Act review as well as the provision of ready trained forces underpinned by our values.”
Segokgo further highlighted that his pivot as commander will be toward the welfare of soldiers, stating that: “no military can ever provide a credible defence deterrent without taking care of its people. The welfare of our nation’s troops should remain an enduring principle of our defense strategy.”
He also continued that: “young Batswana continue to join the BDF because they are convinced of the underlying ideals of our country-a free and democratic people committed to the national principles of democracy, development, self-reliance and unity. As the BDF we must ensure that these ideals are exemplified by rewarding the patriotism and loyalty of our men and women in uniform and their civilian counterparts with a defence force committed to their conditions of service.
Segokgo inherits BDF from a man who according to praises heaped upon him, is one of the most outstanding military men BDF has produced in its 33 years of existence.
Even though he was catapulted to the position of BDF commander in a strange twist of fate, Galebotswe has been described as a man of impressive cognitive and physical abilities. George Tlhalerwa stated of Galebotswe: “In such an environment, naturally certain individuals started to stand out because of their special traits which we didn’t understand to be leadership traits at the time. He was one of the strongest in the intake and would always help others during speed marches, which were often 10 to 60 kilometers by carrying their backpacks or riffles including his own load.”
As a Special Forces instructor, when students were dropped off to do a 60 kilometer march, it is said that Galebotswe had a knack to do the march with the students and not proceed to the camp with other instructors in vehicles.
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.”