Inside FNBB Itsose competition row
A business competition which was power-driven by the commercial First National Bank of Botswana (FNBB) in association with Local Enterprise Authority (LEA) and University of Botswana hailed as Itsose Business Idea Competition has missed the mark in funding its last ten (10) front-runners in the business proposal contest.
The Weekend Post has established that the 10 who emerged victorious in the competition were never funded save for one, a bitter pill to swallow for the other nine contenders who have yet to receive their funding.
This is notwithstanding that the competition’s aim as espoused in its information sheet was to “facilitate the provision of funding to entrepreneurs who meet the criteria of the competition’s funding partners”.
When explaining the row, FNBB Director of Coverage, Boiki Tema, who sat with bank Communications Manager, Kemiso Ben, told this publication in an interview on Monday that, “only one gentleman sought merely P200 000 altogether in his proposal and we thought the amount was slight and reasonable and therefore funded the project fully; while the other required P5. 1 million but we only offered him P100 000 which he outrightly rejected. We suggested he would get the money in phases as the project implicated huge sums of money.”
This basically means that only one participant’s project was fully financed. According to Tema, who has watched the project carefully since inception, said the bank is and was nonetheless “not obliged to fund” the front-runners of Itsose Business Competition, although they benefitted widely from coverage.
He referred this newspaper to the ‘agreement to the competition terms and conditions’ which were signed by contestants. Clause 8 of the agreement states categorically that, “I accept and agree that funding is not guaranteed even if I win the competition, and while FNBB will endevour to fund my proposal, any such funding is subject to satisfactory conclusion of a due diligence investigation or any other investigation which FNBB may deem necessary; furthermore any funding shall be subject to the negotiation and conclusion of an agreement between myself/ourselves and FNBB.”
It is understood that the competition, although widely advertised in the mainstream media, was merely hypothetical. Indications on the ground are that, “the fast-track to funding, business support and success for Batswana entrepreneurs, start-ups and growing businesses” have gone rather pear-shaped, with the bank somersaulting on the prior arrangements and leaving the contenders on the lurch.
Some of the aggrieved winners who spoke to Weekend Post on conditions of anonymity questioned FNBB’s policy of “donating” money to other projects, including for people and organisations to build parks, for example, but failing to give out (refundable) loans to them. According to them, this probably led to the competition’s miscarriage.
“There was a meeting at some point at FNBB and we were told that we will be funded and asked to apply for the loans. Now they are quiet. So how do you say our businesses nosedived if you have not facilitated the loan to the fullest? The only way out of this dispute is to finance us,” one of the contestants who got a raw deal asserted.
He added: “the competition created problems for some of us, as we don’t have working capital to start our proposed businesses. There is nothing to generate money with despite our proposals being regarded as the best.”
This publication has been informed that some, who were financed at almost P100 000 for multimillion pula projects are being made to walk on broken glass. It is alleged that they were blacklisted under controversial circumstances at the Citizen Economic Entrepreneurial Agency (CEDA) and therefore could not even be lent money at the loan institution.
For this reason, FNBB is currently dragging some to lawyers for failure to pay despite still having no working capital and therefore not being able to generate sufficient income.
“Some of the lawyers are harassing us and threatening to jail us,” he insisted.
Meanwhile Tema acknowledged that two gentlemen making up some of the proposal front-runners had launched their grievances with the bank. The duo, Tiroyaone Barung and Tumo Kgopo have started a series of meetings with the bank with a mission to iron out the differences and find a common ground going forward.
Tema also added that all the other eight contestants have been referred to LEA where they will be advised and guided for alternative funding. Although clause 8 of the competition terms and condition says funding by FNBB is not guaranteed, it is not clear why FNBB found a need not to finance the projects although they had the best business proposals from the 10 contestants.
According to Tema, some of the shortlisted project proposals which triumphed but lack funding ranges from waste management, a piggery business, advertising, a sports academy, a driving school and safari and toll gates among others.
“As a bank we only felt it was a good competition as it will position the SMMEs of Botswana and also build a data base for entrepreneurs, including helping diversify the economy,” he said.
The 10 finalists were shortlisted from the one hundred (100), who were selected from the initial 2 800 participants who had entered the competition. The 100 were taken through training and development, and given three weeks to solicit their business proposals. The proposals were then presented before a panel of judges from which the 10 winners emerged.
The conquerors then took home a package of P10 000 in cash, a business laptop, mobile phone, business training and mentorship, publicity and exposure of business and only lacked “access to preferred funding”.
Itsoseng started in 2008 and was seen as Botswana’s biggest, most exciting small business competition which gave a life time opportunity to upcoming entrepreneurs. Some of the competition’s aims was to fast track the start-up and growth of businesses with great potential and support their successes, encourage entrepreneurs to sharpen their businesses acumen, improve their business plans, thinking and writing skills.
Other objectives included encouraging individuals with good business ideas to take the “first step;” showcasing winning entrants as role models to encourage other entrepreneurs as well as facilitating the provision of funding to entrepreneurs who met the criteria of the competition’s funding partners.
The project has seen three of the bank’s Chief Executive Officers (CEO’s) exchanging power since it’s commencement in 2008, from Danny Zandamela through to Lorato Boakgomo – Ntakwana to the current Steven Bogatsu.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.