Botswana rejected two soft loans from China
Korea offered P30 billion to develop infrastructure
President Lt Gen Dr Ian Khama’s recent visit to South Korea could be the latest indication of a turbulent relationship between the government of Botswana and that of the People’s Republic of China. What could be a further sign of strain is the fact that Botswana has reportedly scoffed off Chinese soft loans.
Chinese in Botswana this week celebrated 40 years of bilateral relations with Botswana, but it was apparent that amid the fanfare glossed with cultural night at Maitisong, the Chinese are deeply concerned at the state of affairs. Chinese companies have enjoyed a cosy relationship with the country’s procurement system but things have changed.
President Khama’s visit to South Korea resulted in a lot of undertakings and this could spell uncertainty for the China-Botswana relationship going forward. The Chinese are already experiencing problems in Botswana in the form of rejected work permits and VISA applications. Senior Chinese officials revealed this week that “we do not know what the problem could be.”
A litany of complaints, both from the Government of Botswana and on the other hand from the Chinese in recent years has created diplomatic strain between the two countries. Botswana is not happy with the quality of construction work by some Chinese companies and the country has lost billions of Pula is failed projects.
According to the Korean Times, a publication based in South Korea Khama has offered South Korean government US$2.6 billion (equivalent to P27.4 billion) to solve the power crisis which is besieging the country and also threatening the economy. Meanwhile a Chinese company is at the helm of the costly and failing Morupule B Power Plant.
Khama is also reported to have offered the South Koreans an opportunity to partner with Botswana government in development of other public infrastructure as part of the P27.4 billion worth of projects. Khama’s visit to South Korea also came in the wake of announcement of the Economic Stimulus Package (ESP) at the Botswana Democratic Party (BDP) Special Congress last month.
Khama’s gesture towards the South Koreans essentially means Botswana is now extending an olive branch to Koreans at the expense of long time partner in infrastructure development, China.
In 2013, Khama told South African publication, Business Day that Botswana has had bad experiences with Chinese companies and going forward Botswana will be looking very carefully at any company that originates from China in providing construction services of any nature.
Since the two countries established diplomatic relations, bilateral trade between the two countries has now reached over P300million.
The relationship between the two countries began to diminish in the last five years following failure by the Chinese to complete projects on time, and on budget. Of all the projects under question, the Morupule B, the P11 billion World Bank and African Development Bank funded projects and the Palapye Glass Project were the most contentious.
Khama has not hidden his disappointment with the turn of events as far as delivery of projects on time and on budget is concerned. This is succinctly described by his remarks in 2013 at Tlokweng addressing a Kgotla meeting, where he told attendants that, “Bagaetsho re jelwe…’’ meaning “We were sold a dummy.”
However, Khama recently defended the Chinese and other foreign owned companies from those who called to them to be compelled to partner with local companies in order to be awarded government tenders. Khama said he did not want a situation where the citizens will ride on the back of the Chinese and remarked that Chinese were welcome as long as they hire citizens.
Currently there are 16 Chinese State Owned Enterprises (SOEs) operating in Botswana, 13 of which are top construction companies, all of the construction contractors being ranked at the top grade granted by the PPADB.
PPADB has a contractor grading ceiling in which companies are graded into different categories depending on the experience of the company, qualifications of its employees and equipments/assets the company has to determine the magnitude of tenders they can be awarded.
The threshold of tenders a company can be awarded falls under the following categories are; Grade OC (P1.5 million), Grade A (P4 million), Grade B (20 million), Grade C (P40 million), Grade D, (P85 million) while Grade E has an unlimited threshold. All the Chinese SOEs are grade at E, which means they are dominate most tenders worth over P85 million.
Information reaching this publication indicates that the Chinese government has proposed various projects to the Botswana government on how they could help Botswana to further strengthen her economy. Among the proposals was the setting up of a plant that converts coal into diesel.
WeekendPost inquiries have revealed that the Chinese government in recent times made offers of soft loans to Botswana in the form of interest-free or low-interest concessional loans. It is reported the Botswana government has shown little interest in taking up the offer to develop the country’s infrastructure.
Instead Botswana has turned to her foreign reserves and South Korean companies are likely to benefit. Some Chinese officials who spoke to this publication on condition of anonymity at the celebrations indicated that the offers will be passed on to other African states.
What emerges as the biggest concern for the Chinese is the continued rejection of their citizens when they apply for residence permits and or Botswana Visas. On average it has emerged that China offers 3500 Visas to Botswana citizens annually with a turnaround time of two days. But Botswana issues less than 100 annually, and the Chinese may wait for months to have theirs approved.
A Chinese national who spoke on condition of anonymity at the celebrations at Maitisong recounted a story of her his neghbours, a couple who had a toddler daughter. He said they had applied for residence’ permits only for both parents to be rejected and only the toddler permit was approved. He said they have since gone back to China.
The Chinese are confused they are never certain if they are guaranteed a tomorrow in Botswana, and the potential Chinese investors are almost next to nil because of the current situation with VISAS and permits.
THE VISA, PERMITS PROBLEM IS FAR REACHING
However the Chinese are not the only one crying foul over the matter as a number of key stakeholders, including Botswana Investment Trade Centre (BITC) and Hospitality and Tourism Association of Botswana (HAATAB) has over time complained of unexplained rejections of foreign entrepreneurs and tourist VISAs and work permits.
Earlier this year the Public Accounts Committee (PAC) was told that, reports indicate that an estimated P4 billion was lost by the country on Foreign Direct Investment (FDI) in the past year alone, and said the practice could hurt the country’s economy and reverse its gains.
This publication has established that earlier this year, an Indian billionaire and his 60 entourage all had their VISAs but was rejected by the immigration department. It is reported that the billionaire, who’s linked to one of the former presidents and is into diamond business had plans to invest in Botswana.
Reports have been rife that the VISA situation has been aggravated by interference by Directorate of Intelligence and Security Services (DIS) which is being blamed for rejecting applications supposedly for security reasons.
Former President, Festus Mogae has expressed his frustrations at the rate at which Botswana is expelling foreign nationals as he noted that it is self defeating for a country like Botswana which needs skilled professionals and foreign investors.
Businessman and legislator, Guma Moyo has also expressed concern at the sudden exchange of Botswana’s policy towards foreign nationals. “There is chaos at immigration regarding work permits and VISAs,” Moyo told PAC earlier this year. “It is creating a negative impact and countries like India are beginning to think Botswana is a no go area for business.
Part of the problem to the economy has been uncertainty that foreign investors face in Botswana. WeekendPost has been told that investors are not willing to put their money into a country where they are not certain whether they will be here tomorrow or not, hence opting to look elsewhere.
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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.