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Mswati, SADC secretariat tilt towards Kikwete?

Swaziland and Southern African Development Community’s (SADC) secretariat’s invitation of former Tanzanian President, Jakaya Mrisho Kikwete to the SADC 36th Summit public lecture has birthed speculation of electoral prejudice.

Kikwete is reportedly one of the hopefuls for the position of Chair of African Union Commission.

On Tuesday Kikwete was guest speaker at a SADC public lecture in Mbabane, Swaziland in the presence of a Swazi Prince, SADC Executive Secretariat, Dr Stergomena Lawrence-Tax and Prime Minister, Sibusiso Dlamini, among other bigwigs.

The lecture was organized in collaboration between SADC, Swaziland and University of Swaziland (UNISWA).

Kikwete is also former Chairman of African Union and has been increasingly touted in east African media as a prime candidate for the AU chair when the continental body goes for the election in January 2017.

Elections for the AU Commission chair were postponed after a clear winner failed to emerge in June in Kigali, Rwanda. Botswana’s Pelonomi Venson-Moitoi collected 23 votes instead of the required 35 with 28 member states abstaining.

Venson-Moitoi was running against former Ugandan Vice President Dr. Specioza Kazibwe and the Equatorial Guinean Foreign Affairs Minister Agapito Mokuy and both of them were out rightly shunned as representatives from rogue states.

The high abstinence at Kigali was said to be a show of no confidence in the trio of aspirants. African states argued that voting in Venson-Moitoi will be tantamount to rewarding Botswana with AU topmost post while the country’s president has never made any attempts to attend its summits. Further, they argued that voting for Mokuy and Kazibwe will be the same as giving continental autocracies thumbs up.

Venson-Moitoi was recently endorsed by a meeting of the region’s foreign affairs ministers in Maputo, Mozambique and is currently only awaiting an endorsement by regional heads of state at the Swaziland summit.

Swaziland Prime Minister, Sibusiso Dlamini stated that King Mswati expresses appreciation to Kikwete for accepting the invitation to speak at the lecture. The lecture takes place in the build up to each SADC summit every year.

Dr Tax paid also homage to Kikwete stating, “he is a very distinguished person who is highly effective in many aspects including international diplomacy.”

Still in the merry-go-round of toadying, Kikwete also repaid the appreciation to Mswati for inviting him to speak at the lecture and extended the same to Lawrence-Tax and UNISWA Vice Chancellor, Professor Cisco Magagula.

Kikwete speech also interestingly hinged heavily on a Pan-Africanist topic of regional integration. He stated that the SADC region needs to give due attention to deepening economic integration as it will strengthen the overall initiatives of SADC.

He further stated that in his view, upscaling regional integration in SADC is about increasing the pace of implementing the stages of integration.

“Let me emphasize that regional integration is desirable and we cannot walk away from it,” stated Kikwete.

Meanwhile Venson-Moitoi is scheduled to leave for Swaziland where she will seek a heads of state endorsement as the region’s candidate for the January run off.She is expected back in Botswana on Wednesday nextweek.

If indeed he intends to run, Kikwete will be a tough candidate against other candidates as he has the necessary continental stature and less flak to impress cynical member states. The former president is also a former chairman of the SADC troika of peace, defense and security from 2012 and 2013.

Enquiries left with the Swazi and Tanzanian consulates were not immediately returned.

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Batswana owe banks P79 billion

27th March 2023

The Minister of Finance, Peggy Serame, has disclosed that the total bank credit extended by commercial banks amounted to P79 billion, out of which P53.4 billion was retail loans and advances to households.

Parliament was informed this week in response to a question by the Member of Parliament for Selibe-Phikwe West and Leader of Opposition (LOO), Dithapelo Keorapetse.

“As at 31st December 2022, loans and other advances extended to households by banks constituted the largest share of bank-lending at 67.6 percent, the majority of which was unsecured personal loans at P36.2 billion (67.8%),” said Serame.

She added that the total household Debt to GDP ratio was 21.9%, while the total private business credit to Gross Domestic Product (GDP) ratio was 10.8%.

On the other hand, it was noted that outstanding mortgage loans extended to households were P14.2 billion (26.6% of household debt) or 5.9% of GDP. Overall, total bank credit as a ratio of GDP stood at 32.7 percent.

It was acknowledged that there are 10 deposit-taking banks in the country, that is, nine commercial banks and one statutory bank (Botswana Savings Bank). This statistics excludes the National Development Bank (NDB), which is a development finance institution. The nine commercial banks include an indigenous bank, Botswana Building Society Bank Limited (BBSBL), which was issued with a commercial banking license by the Bank of Botswana in October 2022.

Still in December 2022, it was recorded that there were 376 non-bank lenders in Botswana consisting of 246 micro lenders, 66 finance companies, three leasing companies and 61 registered pawnshops.

According to Minister Serame, the loan book value representing the principal amount lent by these entities to individuals and to small, medium and micro Enterprises (SMMEs) is collated by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), which at 31st of December 2021, the loan book values were P5.6 billion for micro lenders, P1.6 billion for finance companies, P225 million for leasing companies and P14 million for pawnshops.

Government policy is that price control is not effective or desirable, and, as such, interest rates are not regulated. Non-regulation may, among other things, result in an increase in non-interest rate fees and commissions, reduced price transparency, lower credit supply and loan approval rates.

“It is important to note that, from a macroeconomic perspective, household debt in Botswana is neither a pandemic nor considered to be excessive. Indeed, the Bank of Botswana’s periodic and continuous assessments of household debt, including through the annual Household Indebtedness Surveys, suggest moderate household indebtedness and therefore, is of no apparent risk to the safety and soundness of the domestic financial system,” said Serame.

She also alluded this assessment is validated by the recently concluded Financial Sector Assessment Programme (FSAP) on Botswana undertaken by the International Monetary Fund and the World Bank Group.

Keorapetse however rebuked the issue of debt not being excessive and noted the Minister thinks it’s fine for Batswana to be debt burdened in a way that their debts diminishes their quality of life.

“A significant portion of Batswana’s salaries go to servicing debts and because she doesn’t see this as a challenge, there can never be any intervention from her side. There is no price regulation on interest, which can go up to 30%+ a month.  Since President Masisi ascended to the high office in 2018, 2 384 Batswana were put in prison for failure to pay debts, that is 467 Batswana every year. So, for us, debt problems are big and concerning,” said Keorapetse.

He said they are worried because Batswana are drowning in debts because of relative poverty, slave wages and unemployment/underemployment, they buy basic needs and services with borrowed money and noted predatory and unethical lending has become a major problem in Botswana’s financial sector.

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How to fleece P14 million from Chinese investor

27th March 2023

The modus operandi of how five men allegedly swindled a Chinese national P14 million last week continue to unravel. Highly placed sources from the intelligence, the Directorate on Corruption and Economic Crime (DCEC) and Botswana Unified Revenue Services (BURS) revealed to this publication how the whole scam was concocted.

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ENVIRONMENT ISSUES: Masisi asks Virginia for help

24th March 2023

President Mokgweetsi Masisi says the issue of sustainable natural resources management has always been an important part of Botswana’s national development agenda.

Masisi was speaking this week on the occasion of a public lecture at Virginia Polytechnic, under theme, “Merging Conservation, Democracy and Sustainable Development in Botswana.”

Botswana, according to Masisi, holds the view that the environment is fragile and as such, must be managed and given the utmost protection to enable the achievement of Sustainable Development Goals (SDGs).

“It is necessary that we engage one another in the interchange of ideas, perspectives, visualizations of social futures, and considerations of possible strategies and courses of action for sustainable development,” said Masisi.

On the other hand, dialogue, in the form of rigorous democratic discourse among stakeholders presents another basis for reconfiguring how people act on their environments, with a view to conserving its resources that “we require to meet our socio-economic development needs on a sustainable basis,” Masisi told attendees at the public lecture.

He said government has a keen interest in understanding the epidemiology and ecology of diseases of both domestic and wild animals. “It is our national interest to forestall the dire consequences of animal diseases on our communities livelihoods.”

President Masisi hoped that both Botswana and Virginia could help each other in curbing contagious diseases of wildlife.

“We believe that Virginia Tech can reasonably share their experiences, research insights and advances in veterinary sciences and medicines, to help us build capacity for knowledge creation and improve efforts of managing and containing contagious diseases of wildlife. The ground is fertile for entering into such a mutually beneficial partnership.”

When explaining environmental issues further, Masisi said efforts of conservation and sustainable development might at times be hampered by the emergence and recurrence of diseases when pathogens mutate and take host of more than one species.

“Water pollution also kills aquatic life, such as fish, which is one of humanity’s much deserved sources of food. In this regard, One Health Approach imposes ecological responsibility upon all of us to care for the environment and the bio-diversity therein.”

He said the production and use of animal vaccines is an important space and tool for conservation, particularly to deal with trans-border animal diseases.

“In Botswana, our 43-year-old national premier pharmaceutical institution called Botswana Vaccine Institute has played its role well. Through its successful production of highly efficacious Foot and Mouth vaccines, the country is able to contain this disease as well as supply vaccines to other countries in the sub-region.:

He has however declared that there is need for more help, saying “We need more capacitation to deal with and contain other types of microbial that affect both animals and human health.”

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