The Finance and Estimates Committee (FEC) has approved P300 million funding for the Botswana Meat Commission (BMC) despite resistance from opposition members who said the funding was irresponsible.
Presenting the budget before Parliament this week, the Minister of Finance and Development Planning Kenneth Matambo stated that the P300 million requested by the Ministry of Agriculture for BMC will finance the operational losses for the current financial year.
However, MP for Gaborone Bonnington South Ndaba Gaolathe has said the approval of such an amount of money to BMC is irresponsible since BMC funding did not meet specific requirements like provision of rate of returns and financial risk levels. Gaolathe said BMC’s inefficiency is as a result of it being the only player in the industry.
Gaolathe also noted that the opposition members of the FEC were against the P300 million funding of the BMC but could not stop it since they were minority. Gaolathe is of the view that the Budget and Estimates Committee has to have its own frame work and scoring points to satisfy itself on whether the money requested was worth it or not.
According to the MP, the parliamentary committee was erring by continually wholly granting the 100% supplementary requests. He said this could in turn create not only a precedent but a culture that will compromise the Botswana government system of sustainable budgeting.
In December last year opposition MPs who are members of the Finance and Estimates Committee submitted a proposal on the framework of analysis of supplementary funding of Government ministries and its departments.
The frame work identified five key criteria, considered to be pertinent in any national supplementary budgeting process. This categories are; Category unforeseen, Category high systematic risk, Category cost-benefit, Category sustainability and Category Management of Risk.
The frame work stated that supplementary funding should only be those expenses that meet the requirements as prescribed by the constitution or that were foreseen but not budget for due to planning lapse or sudden changes in government revenue out-turn.
MP for Gaborone North Haskins Nkaigwa said parliament does not necessarily have to approve the whole budget for government ministries and departments. Nkaigwa said it was crucial that parliament closely determined the need and rejected the request if it is not satisfactory.
The former Gaborone city mayor said MPs are dancing to the tune of the executive without applying their authority as the legislature. Nkaigwa said there is a serious planning crisis in the government and bluntly rejected wholly the budget request made by the minister of Finance and Development Planning.
MP for Ghanzi North Noah Salakae said BMC is facing cash flow problems but government does not want to admit it. Salakae said it was time that government approved the legislation that would end BMC monopoly and open the market to other players as well.
MP for Selebi Phikwe West Dithapelo Keorapetse also expressed his reservations about the BMC request and warned that Botswana is moving towards fiscal indiscipline. Keorapetse said under normal circumstances parliament should be rejecting some request especially where prudence in public funds is at stake.
Matambo requested a total of P399 million from Consolidated Fund and P45.9 million from the Development Fund. Matambo told parliament that following the Drought and Household Food Security assessment conducted from the 23rd March-10th April 2015, findings indicated that there was a significant decline in rainfall which led to loss of biomass and low hectorage ploughed or planted.
The finance minister said as a result of this Government declared 2014/2015 a drought year through a Presidential Directive. “The bulk of the requests under the recurrent budget will cover relief measures to be implemented by the respective Ministries,” he said.
Matambo said the a total amounting to P399,104,820 was requested by five ministries namely, Finance and Development Planning, Agriculture, Local Government and Rural Development, Health, and Foreign Affairs and International Cooperation.
Matambo said the P103 million requested by the finance ministry will augment the provision in the Agricultural Credit Guarantee Scheme Account, in order to cover the 85 percent subsidy to dry-land farmers who obtained seasonal loans from CEDA and NDB.
“The subsidy is meant to reduce their debt obligations with these lending institutions by 85 percent of the instalments that fell due in the 2014/2015 cropping season,” Matambo said. “The farmers are responsible for the remaining 15 percent of the instalments and are only covered if they would have paid their premiums.”
Supplementary Budgets as requested by Ministries
– Ministry of Finance and Development Planning (P103 million)
– Ministry of Agriculture (P53 million)
– Ministry of Local Government (P237million)
– Ministry of Health (P4million)
– Ministry of Foreign Affairs (P1million)
– Ministry of Agriculture (P300 million)
– Ministry of Minerals, Energy and Water Resources (P38.9 million)
– Ministry of Environment, Wildlife and Tourism (P7 million)
Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.
The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.
Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa
A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.
COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”
According to Moribame, Start-up businesses will forever require help if there is no change.
“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”
Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”
Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.
Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.
“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.
For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.
“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.
Letlhakeng:TotalEnergies Botswana today launched a Road Safety Campaign as part of their annual Stakeholder Relationship Management (SRM), in partnership with Unitrans, MVA Fund, TotalEnergies Letlhakeng Filling Station and the Letlhakeng Sub District Road Safety Committee during an event held in Letlhakeng under the theme, #IamTrafficToo.
The Supplier Relationship Management initiative is an undertaking by TotalEnergies through which TotalEnergie annually explores and implements social responsibility activities in communities within which we operate, by engaging key stakeholders who are aligned with the organization’s objectives. Speaking during the launch event, TotalEnergies’ Operations and HSSEQ, Patrick Thedi said, “We at TotalEnergies pride ourselves in being an industrial operator with a strategy centered on respect, listening, dialogue and stakeholder involvement, and a partner in the sustainable social and economic development of its host communities and countries. We are also very fortunate to have stakeholders who are in alignment with our organizational objectives. We assess relationships with our key stakeholders to understand their concerns and expectations as well as identify priority areas for improvement to strengthen the integration of Total Energies in the community. As our organization transitions from Total to Total Energies, we are committed to exploring sustainable initiatives that will be equally indicative of our growth and this Campaign is a step in the right direction. ”
As part of this campaign roll out, stakeholders will be refurbishing and upgrading and installing road signs around schools in the area, and generally where required. One of the objectives of the Campaign is to bring awareness and training on how to manage and share the road/parking with bulk vehicles, as the number of bulk vehicles using the Letlhakeng road to bypass Trans Kalahari increases. When welcoming guests to Letlhakeng, Kgosi Balepi said he welcomed the initiative as it will reduce the number of road incidents in the area.
Also present was District Traffic Officer ASP, Reuben Moleele, who gave a statistical overview of accidents in the region, as well as the rest of the country. Moleele applauded TotalEnergies and partners on the Campaign, especially ahead of the festive season, a time he pointed out is always one with high road statistics. The campaign name #IamTrafficToo, is a reminder to all road users, including pedestrians that they too need to be vigilant and play their part in ensuring a reduction in road incidents.
The official proceedings of the day included a handover of reflectors and stop/Go signs to the Letlhakeng Cluster from TotalEnerigies, injury prevention from tips from MVA’s Onkabetse Petlwana, as well as bulk vehicle safety tips delivered from Adolf Namate of Unitrans.
TotalEnergies, which is committed to having zero carbon emissions by 2050, has committed to rolling out the Road safety Campaign to the rest of the country in the future.