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Cabinet rejected Cllrs salary hike


Councillors around the country from accross the political divide are of the view that Cabinet rejected the proposal to have their salaries increased and only opted to re-adjust salaries for Members of Parliament and the Cabinet. Some point out that the decision has de-motivated them and have a serious backlash politically.


Following a six percent increase in salaries of public servants in April this year, Parliament approved increases of close to 40 percent for the President, Vice President, Leader of Opposition and Members of Parliament. Members of Parliament have conveniently justified their salary increase indicating that they are the lowest earning in the SADC region.


Most councillors who spoke to Weekend Post are of the view that the decision to increase salaries stemmed from  the Dibotelo Commission which had made prescriptive recommendations on how politicians should be remunerated.  It emphasised the need to look into the Politicians Salaries and made certain recommendations. Councillors earnings were to be realigned by 57 percent while MPs and Cabinet were at around 30 percent.


The Botswana Association of Local Authtorities (BALA) Chairperson , Mpho Moruakgomo said he was dissapointed that Councillors have once again been left behind. He said what they have been given is  is far below what they expected. 

“My view has always been that politiians should be respected as they are key to the lives of citizens. We should start by paying politicians well so that the world of politics may attract dignified men and women of substance who will be able to bring about change to the lives of the masses,” he observed.


Moruakgomo said they are unhappy at the recent realignment which benefitted the MPs and Cabinet members more as compared to councillors.  “We will continue to engage the powers that be to look into this issue because Councillors do a lot of work but go unnoticed,” he said.


South East District Council, Phenyo Segokgo told this publication that the recent salary increment for Members of Parliament and Cabinet has widened income gap between MPs and Councillors.


“Councillors do a lot of ground work. They interact with the people on daily basis and make sure that services reach every one. Take an example of a Gaborone Mayor, he covers all the five constituencies whilst an MP is answerable to one constituency,” he said.


He added that the Councillors deserve to be rewarded as much as MPs because they are also responsible for formulating policies and implementing bylaws.  “I agree with Councillors that we deserve better packages than the current.” Segokgo is a member of the country’s main opposition party, Umbrella for Democratic Change (UDC).


Kgatleng District Council Chairperson, Mpho Morolong said they have given up on attaining better salaries, “It seems Councillors will never get a better pay, my view is that atleast we should be given Council transport and offices to conduct our duties instead of relying on these peanuts and ward allowances which are nothing but a rip off considering our heavy workload,” he said.


After the passing of the National Assembly Salaries and Allowances Amendment Bill of 2015 three months ago, President Lt Gen Ian Khama’s salary was increased by 26 percent to P651, 348 per annum while Vice President Mokgweetsi Masisi also had his salary increased to P501, 216 per annum or P41, 768 per month.


Meanwhile, cabinet ministers and the Speaker now earn P439, 656 per annum which translate to P36, 638 monthly. The leader of Opposition has his new salary pegged at P30, 891 per month or P370, 692 per annum, on par with that of assistant ministers and Deputy Speaker.



Ordinary Members of Parliament got their salaries increased by at least 32 percent from 201, 565.00 in 2014 to P266, 460 annually effective May this year. Under the new salaries, the chairpersons of parliamentary committees will receive a daily allowance of P59.31 if the committee conducts business on a day that Parliament is not sitting.

The Members of Parliament have also had allowances such as constituency, hospitality, communication and acting allowance increased by six percent.


Public sector unions have blasted members of Parliament for “selfishly” increasing their salaries double figures after failing to support the unions’ plea of a 16 percent salary hike. The Bargaining Council only approved a 6 percent salary increase for public servants. Currently employees of Botswana Unified Revenue Services (BURS) are on strike demanding an 11 percent salary increase.  


There has not been a formal statement from various political representations at Parliament on the subject of salary increases save for individual knee-jerk reactions from MPs. 


The decision to increase the salaries according to Assistant Minister of Local Government and Rural Development Botlhogile Tshireletso was a decision that was taken by the all party caucus.


“MPs voted with one voice and it is not true that Councillors did not get anything, they were part of the readjustment,” she said.

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Mowana Mine to open, pay employees millions

18th January 2022
Mowana Mine

Mowana Copper Mine in Dukwi will finally pay its former employees a total amount of P23, 789, 984.00 end of this month. For over three years Mowana Copper Mine has been under judicial management. Updating members, Botswana Mine Workers Union (BMWU) Executive Secretary Kitso Phiri this week said the High Court issued an order for the implementation of the compromise scheme of December 9, 2021 and this was to be done within 30 days after court order.

“Therefore payment of benefits under the scheme including those owed to Messina Copper Botswana employees should be effected sometime in January latest end of January 2022,” Kitso said. Kitso also explained that cash settlement will be 30 percent of the total Messina Copper Botswana estate and negotiated estate is $3,233,000 (about P35, 563,000).

Messina Copper was placed under liquidation and was thereafter acquired by Leboam Holdings to operate Mowana Mine. Leboam Holdings struck a deal with the Messina Copper’s liquidator who became a shareholder of Leboam Holdings. Leboam Holdings could not service its debts and its creditors placed it under provisional judicial management on December 18, 2018 and in judicial management on February 28, 2019.

A new company Max Power expressed interest to acquire the mining operations. It offered to take over the Mowana Mine from Leboam Holdings, however, the company had to pay the debts of Leboam including monies owed to Messina Copper, being employees benefits and other debts owed to other creditors.

The monies, were agreed to be paid through a scheme of compromise proposed by Max Power, being a negotiated payment schedule, which was subject to the financial ability of the new owners. “On December 9, 2021, Messina Copper liquidator, called a meeting of creditors, which the BMWU on behalf of its members (former Messina Copper employees) attended, to seek mandate from creditors to proceed with a proposed settlement for Messina Copper on the scheme of compromise. It is important to note that employee benefits are regarded as preferential credit, meaning once a scheme is approved they are paid first.”

Negotiated estate is P35, 563,000

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Councilors’ benefits debacle-savingram reveals detail

18th January 2022

A savingram the Ministry of Local Government and Rural Development sent to Town Clerks and Council Secretaries explaining why councilors across the country should not have access to their terminal benefits before end of their term has been revealed.

The contents of the savingram came out in the wake of a war of words between counselors and the Ministry of Local Government and Rural Development. The councilors through the Botswana Association of Local Authorities (BALA) accuse the Ministry of refusing to allow them to have access to their terminal benefits before end of their term.

This has since been denied by the Ministry.  In the savingram to town councils and council secretaries across the country, Permanent Secretary in the Ministry of Local Government and Rural Development Molefi Keaja states that, “Kindly be advised that the terminal benefits budget is made during the final year of term of office for Honorable Councilors.”  Keaja reminded town clerks and council secretaries that, “The nominal budget Councils make each and every financial year is to cater for events where a Councilor’s term of office ends before the statutory time due to death, resignation or any other reason.”

The savingram also goes into detail about why the government had in the past allowed councilors to have access to their terminal benefits before the end of their term.  “Regarding the special dispensation made in the 2014-2019, it should be noted that the advance was granted because at that time there was an approved budget for terminal benefits during the financial year,” explained Keaja.  He added that, “Town Clerks/Council Secretaries made discretions depending on the liquidity position of Councils which attracted a lot of audit queries.”

Keaja also revealed that councils across the country were struggling financially and therefore if they were to grant councilors access to their terminal benefits, this could leave their in a dire financial situation.  Given the fact that Local Authorities currently have cash flow problems and budgetary constraints, it is not advisable to grant terminal benefits advance as it would only serve to compound the liquidity problems of councils.

It is understood that the Ministry was inundated with calls from some Councils as they sought clarification regarding access to their terminal benefits. The Ministry fears that should councils pay out the terminal benefits this would affect their coffers as the government spends a lot on councilors salaries.

Reports show that apart from elected councilors, the government spends at least P6, 577, 746, 00 on nominated councilors across the country as their monthly salaries. Former Assistant Minister of Local Government and Rural Development, Botlogile Tshireletso once told Parliament that in total there are 113 nominated councilors and their salaries per a year add up to P78, 933,16.00. She added that their projected gratuity is P9, 866,646.00.

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Households spending to drive economic recovery

17th January 2022

A surge in consumer spending is expected to be a key driver of Botswana’s economic recovery, according to recent projections by Fitch Solutions. Fitch Solutions said it forecasts household spending in Botswana to grow by a real rate of 5.9% in 2022.

The bullish Fitch Solutions noted that “This is a considerable deceleration from 9.4% growth estimated in 2021, it comes mainly from the base effects of the contraction of 2.5% recorded in 2020,” adding that, “We project total household spending (in real terms) to reach BWP59.9bn (USD8.8bn) in 2022, increasing from BWP56.5bn (USD8.3bn) in 2021.”  According to Fitch Solutions, this is higher than the pre-Covid-19 total household spending (in real terms) of P53.0 billion (USD7.8bn) in 2019 and it indicates a full recovery in consumer spending.

“We forecast real household spending to grow by 5.9% in 2022, decelerating from the estimated growth of 9.4% in 2021. We note that the Covid-19 pandemic and the related restrictions on economic activity resulted in real household spending contracting by 2.5% in 2020, creating a lower base for spending to grow from in 2021 and 2022,” Fitch Solutions says.

Total household spending (in real terms), the agency says, will increase in 2022 when compared to 2021. In 2021 and 2022, total household spending (in real terms) will be above the pre-Covid-19 levels in 2019, indicating a full recovery in consumer spending, says Fitch Solutions.  It says as of December 6 2021 (latest data available), 38.4% of people in Botswana have received at least one vaccine dose, while this is relatively low it is higher than Africa average of 11.3%.

“The emergence of new Covid-19 variants such as Omicron, which was first detected in the country in November 2021, poses a downside risk to our outlook for consumer spending, particularly as a large proportion of the country’s population is unvaccinated and this could result in stricter measures being implemented once again,” says Fitch Solutions.

Growth will ease in 2022, Fitch Solution says. “Our forecast for an improvement in consumer spending in Botswana in 2022 is in line with our Country Risk team’s forecast that the economy will grow by a real rate of 5.3% over 2022, from an estimated 12.5% growth in 2021 as the low base effects from 2020 dissipate,” it says.

Fitch Solutions notes that “Our Country Risk team expects private consumption to be the main driver of Botswana’s economic growth in 2022, as disposable incomes and the labour market continue to recover from the impacts of the Covid-19 pandemic.”
It says Botswana’s tourism sector has been negatively impacted by the Covid-19 pandemic and the related travel restrictions.

According to Fitch Solutions, “The emergence of the Omicron variant, which was first detected in November 2021, has resulted in travel bans being implemented on Southern African countries such as South Africa, Botswana, Lesotho, Namibia, Zimbabwe and Eswatini. This will further delay the recovery of Botswana’s tourism sector in 2021 and early 2022.”  Fitch Solutions, therefore, forecasts Botswana’s tourist arrivals to grow by 81.2% in 2022, from an estimated contraction of 40.3% in 2021.

It notes that the 72.4% contraction in 2020 has created a low base for tourist arrivals to grow from.  “The rollout of vaccines in South Africa and its key source markets will aid the recovery of the tourism sector over the coming months and this bodes well for the employment and incomes of people employed in the hospitality industry, particularly restaurants and hotels as well as recreation and culture businesses,” the report says.

Fitch Solutions further notes that with economies reopening, consumers are demanding products that they had little access to over the previous year. However, manufacturers are facing several problems.  It says supply chain issues and bottlenecks are resulting in consumer goods shortages, feeding through into supply-side inflation.  Fitch Solutions believes the global semiconductor shortage will continue into 2022, putting the pressure on the supply of several consumer goods.

It says the spread of the Delta variant is upending factory production in Asia, disrupting shipping and posing more shocks to the world economy. Similarly, manufacturers are facing shortages of key components and higher raw materials costs, the report says adding that while this is somewhat restricted to consumer goods, there is a high risk that this feeds through into more consumer services over the 2022 year.

“Our global view for a notable recovery in consumer spending relies on the ability of authorities to vaccinate a large enough proportion of their populations and thereby experience a notable drop in Covid-19 infections and a decline in hospitalisation rates,” says Fitch Solutions.
Both these factors, it says, will lead to governments gradually lifting restrictions, which will boost consumer confidence and retail sales.

“As of December 6 2021, 38.4% of people in Botswana have received at least one vaccine dose. While this is low, it is higher than the Africa average of 11.3%. The vaccines being administered in Botswana include Pfizer-BioNTech, Sinovac and Johnson & Johnson. We believe that a successful vaccine rollout will aid the country’s consumer spending recovery,” says Fitch Solutions.  Therefore, the agency says, “Our forecasts account for risks that are highly likely to play out in 2022, including the easing of government support. However, if other risks start to play out, this may lead to forecast revisions.”

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