The closely controlled poultry industry in Botswana has resulted in inflation of the general poultry meat prices by 65 percent, as key players in the local industry enjoys government protection at the expense of ordinary consumer, WeekendPost investigations can reveal.
This publication has established that the retailers and franchised fast food outlets are forced by the Poultry Licence Committee (PLC) to procure their poultry meat from local producers precisely Tswana Pride (Pty) Ltd, which controls about 90 percent of the market – and its associated companies.
This has resulted in retailers and fast food outlets buying poultry meat from few local producers who dominate the market at exorbitantly higher price than they would have if they were allowed to buy directly from South African producers.
WeekendPost has also established that although some measures were initially put in place for the best interest of all local poultry producers in Botswana, it has transpired that smaller producers are not able to benefit due to their inability to meet both quality and quantity demands of the franchised international fast food outlets like Kentucky Fried Chicken (KFC), Chicken Licken, Hungry Lion and Nandos among others.
With the Tswana Pride (Pty) Ltd having superior advantage in terms of infrastructure and capacity, small producers have been taken out of the game. Currently, Tswana Pride (Pty) Ltd is the sole producer which is approved by the Kentucky Fried Chicken to supply its franchisee in Botswana. Other producers are not licensed to supply KFC with poultry meat due to infrastructure, quality and quantity limitations, effectively giving Tswana Pride (Pty) Ltd absolute monopoly over supply of poultry to KFC.
This publication has also learnt that when the demand is high, local fast food outlets and retailers apply to PLC for permit to procure meat from South Africa for a certain period of time. This however has not been able to bear fruits as lack of storage facilities will either force them to procure not enough or engage Tswana Pride (Pty) Ltd to procure from South Africa in large quantity and then sell to them.
This results in local retailers and fast food outlets buying poultry meat at higher prices much more than they would have, had they been allowed to directly from South Africa. Tswana Pride (Pty) Ltd’s monopoly and prices control has inflated the chicken prices meat in Botswana, making it more expensive than in neighbouring South Africa.
Tswana Pride (Pty) Ltd General Manager Wayne Du Toit said the quality of Tswana Pride and its associated companies’ meat is up to standards and revealed that it has never encountered problems with its buyers over the quality of their products.
However, according to the information gathered by this publication, the bone of contention is the price at which Tswana Pride (Pty) Ltd offer its products to fast food outlets especially when it comes to poultry meat which is imported from South Africa, “When we import on their behalf, we consider storage costs because we purchase in large quantity and have to supply throughout the country,” he said.
“The retailers and most fast food outlets do not have the capacity to do so, which means we share the benefits 50-50.”
Currently Tswana Pride and its associate companies slaughter 160 000 chickens while South Africa producers are able to slaughter 20 million chickens on average every month. Botswana has not been able to meet some demands of chicken meat products like the ‘wings.’
Some of the franchisers who spoke to the WeekendPost have stated that they are aware that some big local poultry producers charge enormous prices after importing at a lesser cost from South African poultry giants. Managing Director for Kentucky Fried Chicken (KFC) Africa, Doug Smart confirmed in an interview that: “we are aware of this and we’re looking into this further and working to build our own local supply chain.”
Out of the 12 KFC restaurants operating across Botswana, he said they have only four local suppliers in Botswana and one supplier in South Africa. According to Smart, KFC Botswana sources their chickens from local suppliers that meet KFC’s high quality standards and specifications.
“Where there is a supplier shortfall, product is then imported from approved South African suppliers. All fresh produce is sourced from local suppliers and other ingredients including spices and breading are sourced from South African suppliers,” he said.
The KFC Africa Managing Director also highlighted that their local (Botswana) suppliers are Tswana Pride, Bidvest Food Service, Mr Veg, adding that Digistics is their South African provider. Although he said in terms of the ownership of their suppliers, he is not at liberty to disclose their information but WeekendPost can reveal that Tswana Pride (Pty) Ltd is owned by powerful businessman Satar Dada, who is the sole local supplier to KFC in Botswana.
WeekendPost has established that the company has benefited due to some import restrictions which unable KFC to import certain products which include poultry, eggs and fresh produce. Although this publication has gathered that the recent closure by KFC is attributed to failure by their supply to meet their high demand, the KFC Managing Director also shared insights that: “the temporary closure of the KFC restaurants in Botswana is due to the restaurants experiencing difficulty in securing approved KFC ingredients.”
While Smarts stated that KFC believes in supporting the communities in which they operate, he however said they are working closely with local suppliers to develop a local supply chain for ingredients that meet KFC’s quality standards – while also ensuring the volume demands of the local KFC system can be supported by supplier capacity.
KFC chicken franchise counterpart and competitor Nandos, through the Brand Manager Simiso Ncube said in their brief interview that “Nando’s Botswana aims to engage local suppliers wherever possible, for our chicken and all other ingredients.” She however would not be drawn into discussing whether they are aware of certain big poultry local producers buying from across the border to re-sell with a higher price to the franchisers.
Investigations by this publication further reveal that at the end of the day, the ordinary man on the street suffers more due to the hefty tariffs on chickens on the shop shelves. This is exacerbated by the fact that franchisers and shops also skyrocket the prices after producers do the same. She said they have two poultry meat suppliers which are both local and have fifteen outlets across the country.
Meanwhile Botswana Poultry Association Chairman Ishmael Mosinyi asserted that the big poultry man has pushed small man against the wall, and therefore now it’s the ordinary man on the street that suffers most.
He said the challenges they face as small poultry producers cascade down to consumers as big producers may charge exuberant prices as they see fit – to consumers.
“Big poultry producers have put their teeth on the market and have proper infrastructure and therefore meet expected standards,” adding that as small poultry meat providers they have been kicked out by big firms and franchisers’ set of high standards.
Chicken Licken Managing Director Saizel Ismail also shared the same sentiments that the local suppliers cannot meet demand and therefore they get authority to import from South Africa if they fail to meet demand.
“Locals get authority from Poultry Association Board to import supplementary poultry meat from South Africa to complement the demand. All suppliers and buyers meet to discuss poultry decisions and authorise suppliers.”
Presidential Commission of Inquiry into the Review of the Constitution held a meeting in Serowe this week. The meeting was to accord Bangwato, just like other tribes, a platform to give their opinions, contributions and what they think is the horse power and limitations of the current Constitution of Botswana.
Bangwato Regent, Kgosi Serogola Seretse said, he is of the understanding that the Commission has not come for anything apart from getting their opinions on how things could be made better. His contribution was that he solely knows of only two social positions in the world; Dikgosi and Pastors. He said other positions are just benedictions. He further urged that, Batswana should respect God’s ordained protocols such as Dikgosi and Pastors.
Seretse pointed out the importance of acknowledging and appreciating Dikgosi as nation builders. He cautioned and warned that, the Commission should ensure that their dealing with Dikgosi is harmonious. He called for an amendment to be made on the ‘National Order of Precedence’ noting that Dikgosi are put at number 11, but should at least be taken a little higher to number 7.
One resident, Tshepo Moloi while giving his contribution said there must be provisions of Social Justice that ensure equal distribution of resources to all citizens. He said this provision should entail an obligation that all citizen have equal opportunities to different Government Initiatives. Moloi substantiated that, all ‘Presidential Commissions’ be engraved on the Constitution
Alfred Thogolwane who is as well a resident of the biggest village in the Central District, pointed out the need for preservation of the country and resources thereof, saying “it must dawn onto all that, the calabash that fetches water for the family cannot fixed once its broken.” Another resident, Keikantsemang Sebedi advocated for Polygamous marriage, saying that men should marry as many wives as they please. She said there is no need for any socioeconomic assessment done on men who wish to marry more than one wife.
She advised that, the country should benchmark from the Zezuru culture that does it, with no complexities. On the other hand, Sebedi said that, there must be considerations done on the Old Age Pension. She said people who earned P4000 should not receive the old Age Pension upon their fullness of age. Forshia Koloi called for amendments on Section 77 and all the provisions that speaks to the subject of Bogosi and the powers infested in them. He said they should be made more detailed and avoid ambiguity in clauses.
Mr Tlhaodi said there must be Land Audits done in the country. Citing an example of the Tati Land as one that should be thoroughly audited. He further advised that, Election Day be put on the Calendar. He said, if it happens that the day be a Saturday, there should be some special dispensation for the 7th Day Adventist Church members to take part in voting without compromising on their day of worship. Tlhaodi added that there must be People’s Complaint Commission in the country.
Speakers emphasized the need for the country to review the exercise of ‘Political Party Funding’. They articulated that lack of funding political parties’ results in political parties resorting to finding funds for themselves. They reiterated that sometimes going to the extent of getting funds through illegal means. Bangwato agreed in one accord that they want the President be tried whilst in office if suspected of any criminal offences. This was revealed in their contributions. They pointed out that, the law should not to wait until the end of their tenure.
For his part, the Deputy Chairperson of the Commission Johnson Motshwarakgole expressed gratitude to the residents of Serowe. He applauded women for their kindness saying it is only them, who always take responsibility for doing things amicably in the society.
Parliament has revealed that it plans to rollout a Community Score Card (CSC) exercise as part of sweeping reforms to its role and mandate among others.
The planed shakeup, along with the rollout of CSC will see creation of new Parliamentary Portfolio Committees on Health, HIV&AIDS, Education and Skills Development, Trade and Economic Development, Agriculture, Lands and Housing and Local Governance and Social Welfare. Parliament informed government ministries and departments that the CSC is a participatory, community based monitoring and evaluation tool that enables citizens to assess the quality of public services and interact with services providers to express their concerns.
According to Parliament, the CSC will assist to inform community members about available services and their entitlements and to solicit their opinions about the accessibility and quality of certain services related to the portfolio committees mentioned. It said the main objective is for Parliament through identified oversight committees is to conduct a participatory monitoring and evaluating process that puts ownership and responsibility for delivery of services in the hands of both the Government and the service recipients.
“Through scorecards developed around identified sectors and services, communities and implementing departments remain in touch with progress made through the programme delivery cycle and are able to respond timely to bottlenecks,” the National Assembly said. Some of the measurements and expected outcomes for the rolling out of the CSC include among others, improved monitoring and economic evaluation, to determine the impact of spending, so as to be able to direct resources from where they having the least benefit to those projects and programmes where they will have a larger positive impact.
The National Assembly explained further that this could result in a willingness to close down ineffective programmes and institutions and not to implement projects that do not deliver adequate returns, improved productivity in the public services, especially given the substantial pay increases.
The National Assembly believes that the rolling out of CSC is also expected to result in efficiency savings: many public services and programmes could be delivered more effectively at lower costs, by improving management and accountability, and making use of e-services. “This would yield financial savings that could be used for development programmes or reducing the deficit,” the National Assembly said.
The exercise is also expected to result in “Careful scrutiny of subsidy schemes and termination of those that do not address market failure or assist truly needy Batswana.” The National Assembly revealed that proposed Parliamentary Portfolio Committee on Health and Wellness has been established in accordance with the Standing of National Assembly of Botswana. It explained that the mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Ministries, Departments and Agencies with portfolio responsibilities in respect of Health and HIV/AIDS.
“There is need to identify reasons for inefficiency and poor outcomes and ensure that health system reform improve productivity and value for money. Key areas of focus for scorecard, availability of drugs, staffing ratios, accessibility of health services, speciality care and services and sexual reproductively health,” the National Assembly said.
Another proposed Committee is on Local Governance and Social Welfare. The mandate of the Committee is mainly to exercise Parliamentary Oversight and Scrutiny over Government Ministries. Departments and Agencies with Portfolio responsibilities in respect of Local Governance and Social Welfare.
“Strategies under NDP 11 to improve outcomes of social uplifment include; diversiﬁcation of rural economies, development and support of small businesses, provision of social safety nets, eradication of absolute poverty, provision of quality and equitable education and harmonisation of social protection programmes,” said the National Assembly. It said social nets need to be improved so as to target these most in need (at present some social safety nets benefit many people who are not the most needy, but also miss out some of those who are needy).
“Some social development policies more broadly should also aim to reduce household vulnerability to shocks such as those arising from fluctuations in agriculture, climate change, incomes and employment and improve their ability to handle shocks, thereby building household resilience,” the National Assembly said.
Another Committee established is on Agriculture, Lands and Housing. The mandate of the Committee is mainly to exercise Parliamentary oversight and scrutiny over Government Institutions, Departments and Agencies with portfolio responsibilities in respect of Agriculture, Lands and Housing.
The National Assembly said the average growth rate of the agricultural sector since the beginning of National Development Plan 11 (NDP11) (i.e. during the 2017/2018 and 2018/19 financial years) was 2.5 percent, making it the slowest growing sector of the economy, in line with its historical performance.
“Over the same period, its share of GDP has been stagnant at around 2 percent. The sector also contributes job opportunities for about 80 000 adults. Food security has become paramount since the onset of the corona virus pandemic,” the National Assembly said. The National Assembly said the Government realises the need to increase food production for products in which Botswana has a cooperative advantage such as beef, grains and other horticulture products.
The Committee on Finance, Trade and Economic Development has also been established. One of the mandates of Committee would be to exercise Parliamentary oversight and scrutiny over government ministries, departments and agencies with portfolio responsibilities in respect of Finance, Development, Trade and Industry.
“The sector is at the core of industrialisation aspirations and strategies for economic development in Botswana. Manufacturing in particular can be the driver of economic growth through technological improvements and innovation,” the National Assembly said. Hence, it said, the development of the sector could also foster export diversification and export led-growth in Botswana while benefitting from the African Continental Free Trade Area (AFCFTA).
Two senior members of Directorate on Corruption and Economic Crime (DCEC) have threatened legal action against Directorate of Intelligence and Security (DIS), it has transpired. The threat is contained in an answering affidavit of Director General of DCEC, Tymon Katlholo in which he is seeking an interdiction from High Court to stop the DIS from accessing investigation files at his office.
After the DIS detained DCEC officials Joao Salbany and Tsholofelo Bareetsi on December 16, 2021, they filed an official complaint against DIS and some officials. They complained about abuse of office by DIS and five officers. Salbany and Bareetsi also complained about unlawful detention by DIS and unlawful dissemination of classified information contrary to Section 44 of Corruption and Economic Crime Act. “The DIS interviews were premised on information divulged during the course of official DCEC work product, that is the Monday media brief meeting,” they wrote.
They further requested leave to institute a civil suit against the DIS and its officers, and invariably the State for inhuman and degrading treatment they suffered and unlawful detention. They also pondered a declaratory seeking a sanction against the DIS and Botswana Police Service (BPS) and clarification of the role of BPS officers seconded to DIS.
“The envisaged suit against BPS and DIS officers and the DIS will inevitably centre on investigations done by the DCEC and the scope of the protection availed to DCEC officers for conduct done in the course and scope of DCEC official duties.” The duo said it was self-evident from the conduct of the DIS officers that there was nothing urgent about the information required by the DIS, justifying their detention at its Sebele facility from 08:30 hours on December 16, 2021 until 02:00 hours on December 17, 2021.
They reasoned that the information required by the DIS could have been obtained by a simple request to DCEC Director General. “What the DIS did was to seek to intimidate officers of the DCEC whom they knew were carrying out investigations against some of the DIS officers who were part of their investigation team. This turn of events has a chilling effect not only on the functioning of the DCEC but also on the official conduct of officers of the DCEC as to how they conduct their official duties.”
They concluded by stating that in the event the request is granted, they would further request to be advised as to the provision of legal representation as the unalwful detention and the degrading and inhuman treatment by the DIS was in relation to matters conducted by and on behalf of the DCEC.