HIGH UNEMPLOYMENT WORRIES BCP
Opinions
At the beginning of every year labour offices across the country witness thousands of young people visiting their offices to register as active job seekers. The expectation is that companies will consider local job seekers before requesting for work permits to employ foreign workers. However, when one visits project sites one is confronted with foreign workers doing jobs such as heavy machine operators and general driving.
Construction and mining are the leading culprits. This might suggest that the system is either flawed, labour laws weak or the Department of Labour is unwilling to enforce the rules.
On February 1, 2016 the Botswana Congress Party (BCP) was alerted to a shocking incident at the Palapye Administration Authority offices. Job seekers in and around Palapye had thronged the offices to register as job seekers. Hundreds turned up with many having spent the night queuing. As the morning progressed there was a build-up of job seekers resulting in a near stampede as desperate unemployed started pushing until they crushed through the gate. On first site one might be excused for thinking that people were queuing for employment on that day.
The scene at Palapye Administration Authority reminded one of the crowds that often turn up to submit applications in search of land in greater Gaborone such as Oodi and Tlokweng.
On that day in Palapye it was only male job seekers. The previous week it was the female ones who also turned up in hundreds. Each was either carrying an all familiar brown envelop or a plastic folder containing certificates and reference letters. They braved the severe heat wave putting their health at risk, a situation commonly witnessed among economic refugees. Similar scenes are experienced when the Botswana Defence Force (BDF) conducts interviews to select trainees to join the army.
What we witnessed at Palapye was a worrisome state of affairs and an embarrassment for a country that frequently receives accolades from reputable as well as obscure international bodies. One need not be a security expert to conclude that this level of unemployment in Botswana presents a challenge to national security; a time bomb about to explode. It is a fertile ground to recruit violent criminals and potential terrorists.
Looking at the faces of an army of job seekers is more hard-hitting than the statistics we often argue about. It became vividly clear that if 20% unemployed were to be bussed into Gaborone from across the country the whole security establishment will be overstretched to maintain order. Add to these the number of those economically active Batswana who have given up hope of ever finding a job, the under-employed (engaged in graduate volunteer scheme, ipelegeng, cluster policing, tirelo sechaba etc.) and you get an even worse situation.
Such a move would be a shock therapy to a government that does not seem to appreciate the consequences of their close to 50 years of policy failure.
The unemployment situation in Botswana is compounded by the fact that the mining sector has shed off thousands of jobs under suspicious circumstances. It is a growing trend in this sector where no sooner than they open mines before a beaming government officials than they close down leaving thousands without work only to open again under “new management.”
The country has lost more jobs than it has created in the last twelve months. It couldn’t have been a mere coincidence that the mines implemented closures and retrenchments immediately after the 2014 General Elections. The decline of the mining sector especially the diamonds industry has had a negative impact on the cash flow and overall national income. However, it is generally accepted that the mining sector generates fewer jobs relative to its contribution to the Gross Domestic Product (GDP) in part because it is capital intensive.
As if that was not enough, the energy and water sector declined by a hooping 115% resulting in the overall decline of the GDP.
Under the current circumstances one would expect government to invest money in projects that will generate jobs. The argument that the economic stimulus package should enhance economic growth and create jobs is misguided. In the past Botswana experienced a jobless economic growth. The so-called trickle-down effect never materialized.
What was accomplished was wealth accumulation benefiting a handful of people and widening income inequalities. Clearly GDP growth is a necessary but not sufficient requirement for job creation. What is required is a deliberate strategy to come up with ambitious projects that will generate productive employment. Spending savings to address a backlog of development projects will be far short of what is required. Part of the reason is that such projects were never designed to create productive employment.
A project equivalent to Trans-Kalahari Railway with a significant labour-intensive component will go a long way in addressing unemployment.
There are two areas where savings could be made to fund ambitious projects with a view to create the much needed jobs. The sudden increase in the military budget is undesirable.
The general suspicion is that billions of the defence budget will be spent outside the country. Government is on a spending spree of military equipment that is disproportionate to the current threats to national security. Only middle men with close connection to the ruling party will benefit while the majority are left in the cold. The sooner the government comes to terms with the fact that unemployment presents the biggest threat to national security the better for the future of Botswana.
Another area where savings can be made is the Ipelegeng program. Since the program started billions of pula have been spent with nothing to show for it. It has been the most wasteful program ever implemented. We did not get value for money spent. In terms of productivity the old drought relief food-for-work performed far much better than the current cash-for-work.
Rural roads and small dams were constructed under the food-for-work program. The Ipelegeng program needs transformation into a truly labour-intensive program to impart skills and generate long term productive employment in line with international best practice.
The worse that ever happened was for President Ian Khama to have assigned Vice President Mokgweetsi Masisi to oversee the job creation program. This is the same man who was tasked to eradicate abject poverty. Millions were spent on poverty eradication picnics with nothing to show for it. He said he would leverage on back-yard gardening to accomplish this goal.
It became a complete disaster with high water bills that impoverished beneficiaries or shall we say victims. There is a school of thought that asserts that assigning Masisi the complex task of fighting unemployment is a deliberate attempt to set him to fail so that he becomes a laughing stock in 2019.
Kesigegile Gobotswang (PhD) is the Deputy Leader, Botswana Congress Party
Opinions
IEC Disrespects Batswana: A Critical Analysis
The Independent Electoral Commission (IEC) has recently faced significant criticism for its handling of the voter registration exercise. In this prose I aim to shed light on the various instances where the IEC has demonstrated a lack of respect towards the citizens of Botswana, leading to a loss of credibility. By examining the postponements of the registration exercise and the IEC’s failure to communicate effectively, it becomes evident that the institution has disregarded its core mandate and the importance of its role in ensuring fair and transparent elections.
Incompetence or Disrespect?
One possible explanation for the IEC’s behavior is sheer incompetence. It is alarming to consider that the leadership of such a critical institution may lack the understanding of the importance of their mandate. The failure to communicate the reasons for the postponements in a timely manner raises questions about their ability to handle their responsibilities effectively. Furthermore, if the issue lies with government processes, it calls into question whether the IEC has the courage to stand up to the country’s leadership.
Another possibility is that the IEC lacks respect for its core clients, the voters of Botswana. Respect for stakeholders is crucial in building trust, and clear communication is a key component of this. The IEC’s failure to communicate accurate and complete information, despite having access to it, has fueled speculation and mistrust. Additionally, the IEC’s disregard for engaging with political parties, such as the Umbrella for Democratic Change (UDC), further highlights this disrespect. By ignoring the UDC’s request to observe the registration process, the IEC demonstrates a lack of regard for its partners in the electoral exercise.
Rebuilding Trust and Credibility:
While allegations of political interference and security services involvement cannot be ignored, the IEC has a greater responsibility to ensure its own credibility. The institution did manage to refute claims by the DISS Director that the IEC database had been compromised, which is a positive step towards rebuilding trust. However, this remains a small glimmer of hope in the midst of the IEC’s overall disregard for the citizens of Botswana.
To regain the trust of Batswana, the IEC must prioritize respect for its stakeholders. Clear and timely communication is essential in this process. By engaging with political parties and addressing their concerns, the IEC can demonstrate a commitment to transparency and fairness. It is crucial for the IEC to recognize that its credibility is directly linked to the trust it garners from the voters.
Conclusion:
The IEC’s recent actions have raised serious concerns about its credibility and respect for the citizens of Botswana. Whether due to incompetence or a lack of respect for stakeholders, the IEC’s failure to communicate effectively and handle its responsibilities has damaged its reputation. To regain trust and maintain relevance, the IEC must prioritize clear and timely communication, engage with political parties, and demonstrate a commitment to transparency and fairness. Only by respecting the voters of Botswana can the IEC fulfill its crucial role in ensuring free and fair elections.
Opinions
Fuelling Change: The Evolving Dynamics of the Oil and Gas Industry
The Oil and Gas industry has undergone several significant developments and changes over the last few years. Understanding these developments and trends is crucial towards better appreciating how to navigate the engagement in this space, whether directly in the energy space or in associated value chain roles such as financing.
Here, we explore some of the most notable global events and trends and the potential impact or bearing they have on the local and global market.
Governments and companies around the world have been increasingly focused on transitioning towards renewable energy sources such as solar and wind power. This shift is motivated by concerns about climate change and the need to reduce greenhouse gas emissions. Africa, including Botswana, is part of these discussions, as we work to collectively ensure a greener and more sustainable future. Indeed, this is now a greater priority the world over. It aligns closely with the increase in Environmental, Social, and Governance (ESG) investing being observed. ESG investing has become increasingly popular, and many investors are now looking for companies that are focused on sustainability and reducing their carbon footprint. This trend could have significant implications for the oil and fuel industry, which is often viewed as environmentally unsustainable. Relatedly and equally key are the evolving government policies. Government policies and regulations related to the Oil and Gas industry are likely to continue evolving with discussions including incentives for renewable energy and potentially imposing stricter regulations on emissions.
The COVID-19 pandemic has also played a strong role. Over the last two years, the pandemic had a profound impact on the Oil and Gas industry (and fuel generally), leading to a significant drop in demand as travel and economic activity slowed down. As a result, oil prices plummeted, with crude oil prices briefly turning negative in April 2020. Most economies have now vaccinated their populations and are in recovery mode, and with the recovery of the economies, there has been recovery of oil prices; however, the pace and sustainability of recovery continues to be dependent on factors such as emergence of new variants of the virus.
This period, which saw increased digital transformation on the whole, also saw accelerated and increased investment in technology. The Oil and Gas industry is expected to continue investing in new digital technologies to increase efficiency and reduce costs. This also means a necessary understanding and subsequent action to address the impacts from the rise of electric vehicles. The growing popularity of electric vehicles is expected to reduce demand for traditional gasoline-powered cars. This has, in turn, had an impact on the demand for oil.
Last but not least, geopolitical tensions have played a tremendous role. Geopolitical tensions between major oil-producing countries can and has impacted the supply of oil and fuel. Ongoing tensions in the Middle East and between the US and Russia could have an impact on global oil prices further, and we must be mindful of this.
On the home front in Botswana, all these discussions are relevant and the subject of discussion in many corporate and even public sector boardrooms. Stanbic Bank Botswana continues to take a lead in supporting the Oil and Gas industry in its current state and as it evolves and navigates these dynamics. This is through providing financing to support Oil and Gas companies’ operations, including investments in new technologies. The Bank offers risk management services to help oil and gas companies to manage risks associated with price fluctuations, supply chain disruptions and regulatory changes. This includes offering hedging products and providing advice on risk management strategies.
Advisory and support for sustainability initiatives that the industry undertakes is also key to ensuring that, as companies navigate complex market conditions, they are more empowered to make informed business decisions. It is important to work with Oil and Gas companies to develop and implement sustainability strategies, such as reducing emissions and increasing the use of renewable energy. This is key to how partners such as Stanbic Bank work to support the sector.
Last but not least, Stanbic Bank stands firmly in support of Botswana’s drive in the development of the sector with the view to attain better fuel security and reduce dependence risk on imported fuel. This is crucial towards ensuring a stronger, stabler market, and a core aspect to how we can play a role in helping drive Botswana’s growth. Continued understanding, learning, and sustainable action are what will help ensure the Oil and Gas sector is supported towards positive, sustainable and impactful growth in a manner that brings social, environmental and economic benefit.
Loago Tshomane is Manager, Client Coverage, Corporate and Investment Banking (CIB), Stanbic Bank Botswana
Opinions
Brands are important
So, the conclusion is brands are important. I start by concluding because one hopes this is a foregone conclusion given the furore that erupts over a botched brand. If a fast food chef bungles a food order, there’d be possibly some isolated complaint thrown. However, if the same company’s marketing expert or agency cooks up a tasteless brand there is a country-wide outcry. Why? Perhaps this is because brands affect us more deeply than we care to understand or admit. The fact that the uproar might be equal parts of schadenfreude, black twitter-esque criticism and, disappointment does not take away from the decibel of concern raised.
A good place to start our understanding of a brand is naturally by defining what a brand is. Marty Neumier, the genius who authored The Brand Gap, offers this instructive definition – “A brand is a person’s gut feel about a product or service”. In other words, a brand is not what the company says it is. It is what the people feel it is. It is the sum total of what it means to them. Brands are perceptions. So, brands are defined by individuals not companies. But brands are owned by companies not individuals. Brands are crafted in privacy but consumed publicly. Brands are communal. Granted, you say. But that doesn’t still explain why everybody and their pet dog feel entitled to jump in feet first into a brand slug-fest armed with a hot opinion. True. But consider the following truism.
Brands are living. They act as milestones in our past. They are signposts of our identity. Beacons of our triumphs. Indexes of our consumption. Most importantly, they have invaded our very words and world view. Try going for just 24 hours without mentioning a single brand name. Quite difficult, right? Because they live among us they have become one of us. And we have therefore built ‘brand bonds’ with them. For example, iPhone owners gather here. You love your iPhone. It goes everywhere. You turn to it in moments of joy and when we need a quick mood boost. Notice how that ‘relationship’ started with desire as you longingly gazed upon it in a glossy brochure. That quickly progressed to asking other people what they thought about it. Followed by the zero moment of truth were you committed and voted your approval through a purchase. Does that sound like a romantic relationship timeline. You bet it does. Because it is. When we conduct brand workshops we run the Brand Loyalty ™ exercise wherein we test people’s loyalty to their favourite brand(s). The results are always quite intriguing. Most people are willing to pay a 40% premium over the standard price for ‘their’ brand. They simply won’t easily ‘breakup’ with it. Doing so can cause brand ‘heart ache’. There is strong brand elasticity for loved brands.
Now that we know brands are communal and endeared, then companies armed with this knowledge, must exercise caution and practise reverence when approaching the subject of rebranding. It’s fragile. The question marketers ought to ask themselves before gleefully jumping into the hot rebranding cauldron is – Do we go for an Evolution (partial rebrand) or a Revolution(full rebrand)? An evolution is incremental. It introduces small but significant changes or additions to the existing visual brand. Here, think of the subtle changes you’ve seen in financial or FMCG brands over the decades. Evolution allows you to redirect the brand without alienating its horde of faithful followers. As humans we love the familiar and certain. Change scares us. Especially if we’ve not been privy to the important but probably blinkered ‘strategy sessions’ ongoing behind the scenes. Revolutions are often messy. They are often hard reset about-turns aiming for a total new look and ‘feel’.
Hard rebranding is risky business. History is littered with the agony of brands large and small who felt the heat of public disfavour. In January 2009, PepsiCo rebranded the Tropicana. When the newly designed package hit the shelves, consumers were not having it. The New York Times reports that ‘some of the commenting described the new packaging as ‘ugly’ ‘stupid’. They wanted their old one back that showed a ripe orange with a straw in it. Sales dipped 20%. PepsiCo reverted to the old logo and packaging within a month. In 2006 Mastercard had to backtrack away from it’s new logo after public criticism, as did Leeds United, and the clothing brand Gap. AdAge magazine reports that critics most common sentiment about the Gap logo was that it looked like something a child had created using a clip-art gallery. Botswana is no different. University of Botswana had to retreat into the comfort of the known and accepted heritage strong brand. Sir Ketumile Masire Teaching Hospital was badgered with complaints till it ‘adjusted’ its logo.
So if the landscape of rebranding is so treacherous then whey take the risk? Companies need to soberly assess they need for a rebrand. According to the fellows at Ignyte Branding a rebrand is ignited by the following admissions :
Our brand name no longer reflects our company’s vision.
We’re embarrassed to hand out our business cards.
Our competitive advantage is vague or poorly articulated.
Our brand has lost focus and become too complex to understand. Our business model or strategy has changed.
Our business has outgrown its current brand.
We’re undergoing or recently underwent a merger or acquisition. Our business has moved or expanded its geographic reach.
We need to disassociate our brand from a negative image.
We’re struggling to raise our prices and increase our profit margins. We want to expand our influence and connect to new audiences. We’re not attracting top talent for the positions we need to fill. All the above are good reasons to rebrand.
The downside to this debacle is that companies genuinely needing to rebrand might be hesitant or delay it altogether. The silver lining I guess is that marketing often mocked for its charlatans, is briefly transformed from being the Archilles heel into Thanos’ glove in an instant.
So what does a company need to do to safely navigate the rebranding terrain? Companies need to interrogate their brand purpose thoroughly. Not what they think they stand for but what they authentically represent when seen through the lens of their team members. In our Brand Workshop we use a number of tools to tease out the compelling brand truth. This section always draws amusing insights. Unfailingly, the top management (CEO & CFO)always has a vastly different picture of their brand to the rest of their ExCo and middle management, as do they to the customer-facing officer. We have only come across one company that had good internal alignment. Needless to say that brand is doing superbly well.
There is need a for brand strategies to guide the brand. One observes that most brands ‘make a plan’ as they go along. Little or no deliberate position on Brand audit, Customer research, Brand positioning and purpose, Architecture, Messaging, Naming, Tagline, Brand Training and may more. A brand strategy distils why your business exists beyond making money – its ‘why’. It defines what makes your brand what it is, what differentiates it from the competition and how you want your customers to perceive it. Lacking a brand strategy disadvantages the company in that it appears soul-less and lacking in personality. Naturally, people do not like to hang around humans with nothing to say. A brand strategy understands the value proposition. People don’t buy nails for the nails sake. They buy nails to hammer into the wall to hang pictures of their loved ones. People don’t buy make up because of its several hues and shades. Make up is self-expression. Understanding this arms a brand with an iron clad clad strategy on the brand battlefield.
But perhaps you’ve done the important research and strategy work. It’s still possible to bungle the final look and feel. A few years ago one large brand had an extensive strategy done. Hopes were high for a top tier brand reveal. The eventual proposed brand was lack-lustre. I distinctly remember, being tasked as local agency to ‘land’ the brand and we outright refused. We could see this was a disaster of epic proportions begging to happen. The brand consultants were summoned to revise the logo. After a several tweaks and compromises the brand landed. It currently exists as one of the country’s largest brands. Getting the logo and visual look right is important. But how does one know if they are on the right path? Using the simile of a brand being a person – The answer is how do you know your outfit is right? It must serve a function, be the right fit and cut, it must be coordinated and lastly it must say something about you. So it is possible to bath in a luxurious bath gel, apply exotic lotion, be facebeat and still somehow wear a faux pas outfit. Avoid that.
Another suggestion is to do the obvious. Pre-test the logo and its look and feel on a cross section of your existing and prospective audience. There are tools to do this. Their feedback can save you money, time and pain. Additionally one must do another obvious check – use Google Image to verify the visual outcome and plain Google search to verify the name. These are so obvious they are hopefully for gone conclusions. But for the brands that have gone ahead without them, I hope you have not concluded your brand journeys as there is a world of opportunity waiting to be unlocked with the right brand strategy key.
Cliff Mada is Head of ArmourGetOn Brand Consultancy, based in Gaborone and Cape Town.
cliff@armourgeton.com