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LAPCAS damning verdict is out

A damning report to the Office of the Permanent Secretary in the Ministry of Lands and Housing has jabbed at the characters behind the failure of the Land Administration Procedures Capacity and Systems (LAPCAS) and praised its original intentions.

LAPCAS was conceived in 2009 in partnership with the Swedish Government. The intentions were to improve land administration in Botswana by impacting on procedures, capacity of personnel and systems.

According to a report authored a consultant once engaged by the Ministry, LAPCAS was to ensure that all plots in Botswana are surveyed, legally owned as verified by the Land Authority resolution, captured both manually and electronically; in short, where it is clear where which plot is and as to who it belongs to. There was also an intention to give each plot a unique identity.

It is understood that the programme was seen as the springboard for socio-economic development of the country through electronic based service delivery. LAPCAS was also linked to e-Governance which was developed to know where each individual resides, each plot in the country must be registered, surveyed and captured in the national electronic data base, it must be adjudicated; it must have a unique ID; it must have a location address; land information so generated must reside in a secure platform; with a system that enables interaction with all government departments and agencies.

In the LAPCAS manuscript, development planning was to become easy when all land information in Botswana has been entered into the national data base. It was envisaged that with a plot a national planner would know how many people reside in that plot, their age, education profile, number of livestock, incapacities, number of vehicles, number of plots they own, at home and elsewhere – and thereby facilitating equity and easy decision making as to where and when to intervene.

LAPCAS was aimed at enabling government to know at touch button where priority areas are, for instance in the provision of bitumen road, schools, hospitals, police posts, releasing more land for settlement expansion or even determining new political wards and constituencies. LAPCAS was to arrest voter trafficking among other things. Those who came up with the idea of LAPCAS thought rates collection will be eased, there would be no need for Population and Housing Census and Delimitation Commissions as this information will be readily available at any given time.

WHY LAPCAS FAILED OR IS LAGGING BEHIND

Reports indicate that the programme failed because it had the same Project Manager to lead the Programme starting with formulation of prototypes through implementation.

The current head of LAPCAS has been with the project for seven years now, since 2009. His approach was to be hands on in every component and in the process stifled creativity, spontaneity and ownership of processes. He was the means and the end. Consequently, he starved himself time to coordinate, to set timelines and demand results.

After the components were not load enough, he still maintained, to this day, his position as Director of Surveys and Mapping. He allocates himself juicy assignments mainly international travel to the exclusion of the Acting Director DSM.

Currently he is the Acting Deputy permanent Secretary at the same time retaining his two portfolios of LAPCAS Head and DSM Director. The permanent secretary was told that the danger of allocating the same officer a lot of functions is that if they are less effective and respected then the collapse of the intent and the vision is guaranteed.

The person leading LAPCAS presided over Ghanzi Land Board in 2001/2002 where he often recorded below 50 percent in performance assessment reviews. He maintained his trend to Kweneng Land Board, DSM and LAPCAS to this day.

The plan was to have all land in the Land Boards registered by 2016. About One million plots were to be covered in 2016, but this has not happened because only 10 percent of the proposed number has been covered in over three years. About 100 project officers were hired for this project on a three year term and the project budget end mid-2016 and this has come to naught.

Realising that the project was failing, the head of LAPCAS decided to transfer Land registration exercise to individual Land Boards Secretaries. The role of a national coordinator was removed such that the exercise runs without a pivotal person to provide direction, support and much needed supervision.

Land registration was poorly marketed as LAPCAS. Instead of talking to the bigger government intent of easy service provision, the protagonists went for the most resented purpose, of knowing where one resides, thus dealing with the means and not the end to the general collapse of the land registration exercise.

Land Registration needs to be revitalised and rebranded. It has to be given dominance over other components, without neglecting concurrency, as all other components are dependent on it as a basis for land information. It will become of no use if there is no land information to manage and inform quality decision making to advance delivery across all sectors of the economy.

Of the entire country only three localities have been addressed (given location addresses). About 90 percent of tribal land was unregistered in the last quarter of 2015. This publication learns that the LAPCAS team has failed to establish a land information centre, a project that was agreed upon some years back. The Land Information Centre was to act as a hub for all land information across the three tenure system.

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Vendors ready for the Tobacco Control Bill

21st September 2021
Vendors

Some vendors have been misled
Vendors thrive on households goods and fresh produce

Despite the previous false allegations that the Tobacco Control Bill will lead to several 20 000 vendors across the country losing their jobs, several local vendors have expressed that they are ready for the bill and because vendors sell mostly household goods

“This is something that we openly accept and receive as street vendors, the problem is some of our counterparts were misled and made to believe that we will not be allowed to sell cigarettes on our stalls.

Some of us got to understand that the bill states that we have to be licensed to sell cigarettes, we are not supposed to sell them to children under the age of 18 years of age and eliminating the selling of single sticks. We understand that this agenda is meant to develop a healthy nation but not take us down,” said Mbimbi Tau a vendor who operates from Mogoditshane.

The Tobacco Control Bill has been passed in several countries and street vendors are operating properly without any challenges faced. Tau further mentioned that there is no way that the Tobacco Control Bill will affect their business operations, all they have to do as vendors are to get the required documentation and do what the bill requires.

Another vendor Busani Selalame who operates from Gaborone Bonnington North was not shy to express his support towards the Tobacco Control Bill, “the problem is that some people within our sector have been misled and now they think that the bill is meant to take our operations down and completely stop selling cigarettes.

I support the fact that we are not supposed to sell cigarettes to children who are under the age of 18 years of age this has always been wrong, as parents we should be cautious of such and ensure that our children are disassociated with cigarettes,” said Selalame.

The Tobacco Control Bill prohibits advertising, promotion and sponsorship by the tobacco industry to prevent messages, cues, and other inducements to begin using tobacco, especially among the youth, to reassure users to continue their use, or that otherwise undermine quitting.

Renowned economist Bakang Ntshingane is of the view that since vendors sell household goods and fresh produce they are likely to keep on making profits despite what the Tobacco Control Bill comes with. He further stated that the Tobacco Control Bill will not be of harm on the local economy since the country does not manufacture or produce any tobacco related products.

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BANCABC Botswana poised for growth amid tough operating environment

21st September 2021
BANCABC

BancABC Botswana, the BSE-listed bank today announced its half year results for the six months ended 30 June 2021, against a subdued economic backdrop, exacerbated by the COVID-19 pandemic and related lockdowns.

BancABC has remained resilient in the current operating environment as business activity increased in the first half of 2021, with Real GDP up by 0.7% in the first quarter compared to a contraction of 4.6% in the previous quarter. Commenting on the results, Managing Director Kgotso Bannalotlhe said, “Currently, economic activity is relatively stable.

While COVID-19 placed significant pressure on the economy and our overall business, BancABC Botswana has shown remarkable resilience amid a tough operating environment.  While the bank operates in an environment that is seeing a rise in COVID-19 infections, it is encouraging that the business has maintained a healthy capital adequacy ratio as well as being successful in improving total expenses with focus on cost containment across the board.”

The retail segment saw an increase in customer deposits this year, signalling an improvement from the previous period and strengthening the current funding mix. This segment has built great momentum and continues to advance its digital strategy, through various products such as the mobile banking app, SARUMoney, as well as enhanced product offerings such as the introduction of fash cash. The Bank has invested in its digital capabilities to ensure a seamless and hassle-free banking experience for all its customers.

The commercial segment was successful in reducing the cost of funding. In addition, Treasury and Global Markets performed well, doubling from the previous comparative period. The current year performance across the bank’s different segments is testament to the bank’s strong income lines, aiding the Bank’s resilience during this time.

“The Bank experienced slow loan book growth due to a constrained economic environment, however, we remain optimistic that as the economy recovers, credit appetite amongst the Bank’s customer-base will increase. In addition, we reported good non-interest revenue, driven by increased trading income on the back of improved margins and volumes. Our outlook remains positive as we expect momentum across the different segments to improve over time,” said Ratang Icho-Molebatsi, BancABC Botswana Finance Director.

In April 2021, BancABC Botswana’s ultimate holding company, Atlas Mara Limited, as well as ABC Holdings Limited and Access Bank Plc announced an agreement to a proposed acquisition of 78.15% of BancABC Botswana. The transaction presented an opportunity for BancABC Botswana’s strong retail banking operation to merge with Access Bank’s wholesale banking capabilities, augmenting itself as one of Africa’s leading banks.

“The transaction provides significant scope for revenue diversification and growth in the corporate and SME banking segment. Increased access to trade finance, treasury, international payments and loans through the wider distribution network offered by Access Bank’s presence in the key trade corridors that connect Africa to the rest of the world, presents solid opportunities for BancABC Botswana”, commented Icho-Molebatsi “With the transaction, BancABC Botswana’s customers stand to benefit from best-in-class digital platforms and product suites, leveraging Access Bank’s group IT infrastructure as well as other fintech solutions”, said Bannalotlhe.

Further, with Access Bank expanding its footprint into Botswana, it will position the Bank to deliver a more complete set of banking solutions to Batswana across the country”, concluded Bannalothle.

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Botswana secures P1.5 billion from African Development Bank 

21st September 2021
Peggy Serame

 Last Friday, the board of Directors of the African Development Bank Group authorised a $137 million (P1.5 billion) loan to support Botswana’s Post COVID-19 pandemic economic recovery.

The funds, extended under the Bank Group’s Botswana Economic Recovery Support Program, will be used to enact multi-sector reforms that will increase spending efficiency, create jobs and drive inclusive growth.

The project has three components: enhancing domestic resource mobilisation and mitigating fiscal risks to enhance macroeconomic performance and create fiscal space for spending on social safety nets; supporting private sector-led agriculture and industry to bolster productivity and value addition and increase job opportunities, and offering business development services to micro and small enterprises to advance social protection and gender equity. The three components are expected to reinforce one another.

“The African Development Bank is providing support for reforms to enhance private sector-led agriculture and transformation of the industrial sector,” said Leila Mokadem, Director General of the Southern Africa Regional Development and Business Delivery Office. “Agriculture value addition can serve as a springboard for industrialisation and job creation,” she added.

The project aligns with the Bank Group’s Ten-Year Strategy (2013-2022) and its High Five strategic priorities, particularly Industrialise Africa and Improve the quality of life of the people of Africa. The African Development Bank observed that Botswana has a very low risk of debt distress and a positive medium-term growth outlook. However, a lack of economic diversification exposes the country to significant vulnerabilities.

The Bank Group’s active portfolio in Botswana amounts to UA 57.7 million ($81.9 million) and comprises four projects. The financial sector accounts for the largest share of the portfolio by industry (97.1%), followed by agriculture (1.7%) and industry (1.2%). In the past, the African Development Bank partnered with various Botswana government agencies to accelerate economic growth.

On the 21st of February 2020, the bank signed a thematic Line of Credit (LoC) of P900 Million for a 10-year tenor with Botswana Development Corporation (BDC), a wholly state-owned investment agency. This was during that time, the single largest transaction of its nature to ever take place in Botswana.

The LoC was penned to support the BDC’s long-term strategy to scale up its investments in critical sectors, including manufacturing, transport and service sectors, with the overall objective of supporting the transformation and industrialisation of the Botswana economy. BDC eyed a more comprehensive socio-economic benefit with this partnership, including attracting investments into the economy and employment creation.

The African Development Bank is a multilateral development finance institution. It has an overarching objective to spur sustainable economic development and social progress in its regional member countries (RMCs) through mobilising and allocating resources for investment and providing policy advice and technical assistance to support development efforts.

This transaction was poised to support further BDC’s focus on safeguarding its balance sheet to ensure financial sustainability whilst fulfilling its mandate as the Botswana Government’s principal investment arm.

The COVID-19 pandemic has landed massive blows on Botswana; apart from claiming more than 2300 lives thus far, the contagious plague has exacerbated existing growth challenges. The effects of the pandemic have led to an estimated real gross domestic product (GDP) contraction of 7.9% in 2020, according to the World Bank, worse than that of the 2009 global financial crisis.

The contraction reflects the impact that reduced global demand, travel restrictions and social distancing measures have had on output in crucial production and export sectors, including the diamond industry and tourism.

Botswana’s fiscal deficit is set to widen to 11.3% of GDP in FY2020/21, from 5.6% in FY2019/20, reflecting a sharp decline in mineral revenues, a sticky public sector wage bill, and the impact of the COVID-19 spending. Similarly, the current account deficit is estimated to have widened to 8 percent of GDP in 2020 following the sharp decline in diamond exports.

Developments in the global diamond industry will significantly impact the short-term recovery, given Botswana’s dependence on the commodity. While recovery is expected in 2021 due to a favourable outlook for the diamond industry, the economic impact of COVID-19 is likely to be deep and long-lasting. The P1.5 billion African Development Bank loan comes after the World Bank approved a P2.5 billion boost for Botswana early this year.

The Programmatic Economic Resilience and Green Recovery Development Policy Loan (DPL) will support the implementation of Botswana’s Economic Recovery and Transformation Plan and is designed to strengthen COVID-19 pandemic relief while bolstering resilience to future shocks.

In August, Botswana received the International Monetary Fund (IMF) 189 Special Drawing Rights allocation worth P3 billion. The IMF SDR is a non-currency asset that Botswana can convert into hard currency by trading it with other IMF member countries.

 

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