For six of my eight years as an entrepreneur I had combined estate agency, business development training, and tenderpreneurship under one company. Eventually I exited tenderpreneurship because of its unsustainability coupled with the unsavoury nature of such business. I say it is unsustainable due to its erratic short-lived, measly earnings, and unsavoury due to rampant bribery and corruption among both suppliers and the purchasing officers.
Tenderpreneurship, as I understand it, involves a business dealing and surviving on tender and quotation bids, through supply of either services or products, mainly to government departments. Services vary from construction, engineering, and various forms of consultancy, all of which require specialised skills and training whereas products are the tangibles ranging from stationary, machinery food, and various chemicals.
It follows therefore that the higher the skills required for any business undertaking, the higher the value and returns from such tender. And for sure the higher the expected returns the high the level of corruption dealings, and the higher the officials involved.
In this article we look as tenderpreneurship at goods supply level. Tenderpreneurship at goods supplies level is the easiest and less capital intensive business start-up to venture into and it is the level at which many of those who play in the upper league of high value businesses have started. Because of the ease of entry into this business, there has been increasing competition in the last few years due to the escalating youth unemployment and the laying off of employees by some organization.
To start, one must register either a company or a business with the Registrar of Companies and have funds to open and maintain an office for at least two months, open a bank account, apply for a trade license as a Supplies Agent (SA), acquire a Tax Clearance Certificate from BURS, and eventually register with the PPADB.
Other items required include a computer with a fax/printer machine, a small table and chair, telephone/fax line. Most furniture and machinery can be acquired at public auctions or borrowed from friends and relatives to cut costs. A car is a luxury to add some efficiency and a feel of professionalism, even though many do start without even a bicycle.
Many Batswana, especially the youth, open up offices across the country to run businesses as tenderpreneurs, specifically licensed as SA, supplying various items to government department offices in an attempt to gain a living and shake themselves up from slipping into destitution.
Since the government is both the biggest employer and consumer of many items such as office machinery, stationary, cleaning chemicals, food, and many items, the supplies business thus forms the core undertaking and main income generator for the businesses as many of their owner-directors do not possess any special technical skills to do anything else.
A few, like ourselves then, do survive on tenders, which are on a one year fixed-term contracts won by satisfying all requirements of an invitation to tender (ITT) before final selection is based on price competitiveness. Given that it would be a blow on efficiency and effectiveness for government employees to run around sourcing these from manufacturers and distributors.
This therefore provides an opportunity to Batswana, especially the youth to fill the gap by bringing such goods and services to government offices’ doorsteps and adding a little mark-up to the buying price to make some profit. Depending on the length of service required, in case of tenders, and the mark-up earned, one could earn a decent survival for some time. Those who may graduate to an upper level may even use a friends’ qualifications, experience, and machinery to register with the PPADB as providers of services that require technical skills.
Almost all of the SAs toil on a daily basis to earn an opportunity to supply one item or another through quotations done upon invitation to quote (ITQ). For an ITQ a government department Supplies Officer would select at least four companies from the usually long list of registered suppliers and issue out an ITQ against which the companies have to competitively bid mainly on price in order to gain an opportunity to supply.
Those who aggressively market do move from office to office in search of ITQ whereas the well-connected get them ITQs faxed to their offices, probably followed by coaching on how to do the pricing. Unlike ITQ on which a decision to award is mostly done by one Supplies Officer (SO), tenders are to a large extent fair and transparent as they are adjudicated by a panel of more than two persons. It takes a really well-connected and loaded person to motivate a panel of tender adjudicators in one’s favour, and that happens when the returns are really good.
Unfortunately, the same suppliers/distributors/manufacturers from which the SA buy their products are also allowed, without restrictions, to bid and compete with their supposed clients for the same customer; government. This result with the SA losing out to the suppliers/distributors/manufacturers who cut their bid prices further lower than what they quoted the SA. Interestingly, over the years this has not been a concern to any of government ministers and officials whereas it is one of the factors that pressure SAs to be involved in underhand dealings.
This supply business behaves like a wild beast running whilst slowly being eaten away by wild dogs because of the slow build-up of costs during their lifespan up to a point where the proprietor runs into a brick wall of financial burdens. As indicated, within government service and product are acquired based on price rather than quality.
While a lot many young Batswana continue to open offices across the country, there are serious cost areas that slowly knock holes into the proprietor’s business until such time the undertaking is fully submerged in financial challenges, resulting with closure of such venture and even threat of litigation by BURS. Nowadays, it is an open secret that to gain a competitive edge over other businesses one has to be well-connected with government Supplies Officers.
Many of them SAs either have to part with at least 5% of the invoice amount, reserved in advance to pay the opportunity to supply or have a close acquaintance who would allow them to use multiple companies, sometime borrowed from friends, for submission of their bid.
Depending on a proprietor’s willingness to ‘oil officer’s hands’ they could get as many as five purchase orders at a time, which would assure them of their continued survival in the jungle for next few months. However, this continued practice eventually kills a good man’s conscience. As for women, add their nature’s blessing to their competitive advantage – I’m stating a fact as it is herein.
Despite the small intake volumes by these government departments, the stiff competition on price forces many of the suppliers to add slim mark-up on the buying price of their supplies in order to gain a competitive edge over others. In doing so many fail to take into consideration other operational costs such as rent, transport, handling labour, and time. An addition to these costs is the deliberate delays of payments by government revenue officers, probably due to their determination to earn their share of proceeds like the Supplies Officer.
There is also scarcity of opportunities due to fact that a company name may be given only one opportunity in a long time to bid and/or supply which many of the businesses attempt to circumvent by the either the use of multiple company names to bid or the ‘greasing of hands’. It therefore follows that so long as there is inflow of cashflow, from supply of quotations or a tender, the proprietor gets shield from the pain of holes being punched by operational costs into their businesses. The proprietor would play a cost-shifting game up until such cumulative costs hit the heart of the business.
Eventually, this type of business fails to pay rent, tax, VAT, and staff. Unless the proprietor is wise enough to diversify from this business while they still are valid on the market and have the opportunity, one would be forced to close down and even play hide-and-seek with BURS.
On the other hand, recently for some few days the Botswana Vice President, Rre Masisi, has been trying explain to the nation his key role in creating employment through partnership with the private sector. Well, I would be a little impressed if he could openly appreciate the importance of tenderpreneurship in job creation among the youth and start getting his government to address the challenges faced by those who venture into this business.
My big concern is that so long as government continues to ignore quality in preference price competitiveness as well as fail to categorise supply businesses so that small tenders are reserved for these tenderpreneurs, there would be uncontrollable levels of corruption within the business community. The country will continue to breed corrupt tenderpreneurs who would one way or the other find their ways into key positions within both the ruling and opposition parties thus resulting with a complete corrupt government, be it current or future. Eventually, Botswana will be like any other African country.
Omongwe Samuel Ramakoba Managing Director Volksplek Botswana (PTY) Ltd (Estate Agents, Business Development Trainers) Tel. +267 72307505 Facebook: Omongwe-Samuel Ramakoba
“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.” Carl Sagan
Corruption is a heavy price to pay. The clean ones pay and suffer at the mercy of people who cannot have enough. They always want to eat and eat so selfishly like a bunch of ugly masked shrews. I hope God forgives me for ridiculing his creatures, but that mammal is so greedy. But corruption is not the new kid on the block, because it has always been everywhere.
This of course begs the question, why that is so? The common answer was and still is – abuse and misuse of power by those in power and weak institutions, disempowered to control the leaders. In 1996, the then President of The World Bank, James D. Wolfensohn named the ‘C-Word’ for the first time during an annual meeting of the Bretton Woods Institutions. A global fight against corruption started. Transparency International began its work. Internal and external audits mushroomed; commissions of inquiry followed and ever convoluted public tender procedures have become a bureaucratic nightmare to the private sector, trying to fight red tape.
The result is sobering corruption today is worse than it was 25 years ago. There is no denying that strong institutions help, but how does it come that in the annual Transparency International Ranking the same group of countries tend to be on the top while another group of countries, many African among them, tend to be on the bottom? Before one jumps to simple and seductive conclusions let us step back a moment.
Wolfensohn called corruption a cancer that destroys economies like a cancer destroys a body. A cancer is, simplified, good cells in a body gone bad, taking control of more and more good cells until the entire body is contaminated and eventually dies. So, let us look at the good cells of society first: they are family ties, clan and tribe affiliation, group cohesion, loyalty, empathy, reciprocity.
Most ordinary people like the reader of these lines or myself would claim to share such values. Once we ordinary people must make decisions, these good cells kick in: why should I hire a Mrs. Unknown, if I can hire my niece whose strengths and weaknesses I know? If I hire the niece, she will owe me and support my objectives.
Why should I purchase office furniture from that unknown company if I know that my friend’s business has good quality stuff? If I buy from him, he will make an extra effort to deliver his best and provide quality after sales service? So, why go through a convoluted tender process with uncertain outcome? In the unlikely case my friend does not perform as expected, I have many informal means to make him deliver, rather than going through a lengthy legal proceeding?
This sounds like common sense and natural and our private lives do work mostly that way and mostly quite well.
The problem is scale. Scale of power, scale of potential gains, scale of temptations, scale of risk. And who among us could throw the first stone were we in positions of power and claim not to succumb to the temptations of scale? Like in a body, cancer cells start growing out of proportion.
So, before we call out for new leaders – experience shows they are rarely better than the old ones – we need to look at ourselves first. But how easy is that? If I were the niece who gets the job through nepotism, why should I be overly critical? If I got a big furniture contract from a friend, why should I spill the beans? What right do I have to assume that, if I were a president or a minister or a corporate chief procurement officer I would not be tempted?
This is where we need to learn. What is useful, quick, efficient, and effective within a family or within a clan or a small community can become counterproductive and costly and destructive at larger corporate or national scale. Our empathy with small scale reciprocity easily permeates into complacency and complicity with large scale corruption and into an acquiescence with weak institutions to control it.
Our institutions can only be as strong as we wish them to be.
I was probably around ten years old and have always been that keen enthusiastic child that also liked to sing the favourite line of, ‘the world will become a better place.’ I would literally stand in front of a mirror and use my mom’s torch as a mic and sing along Michael Jackson’s hit song, ‘We are the world.’
Despite my horrible voice, I still believed in the message. Few years later, my annoyance towards the world’s corrupt system wonders whether I was just too naïve. Few years later and I am still in doubt so as to whether I should go on blabbing that same old boring line. ‘The world is going to be a better place.’ The question is, when?
The answer is – as always: now.
This is pessimistic if not fatalistic – I challenge Sagan’s outlook with a paraphrased adage of unknown origin: Some people can be bamboozled all of the time, all people can be bamboozled some of the time, but never will all people be bamboozled all of the time.
We, the people are the only ones who can heal society from the cancer of corruption. We need to understand the temptation of scale and address it. We need to stop seeing ourselves just a victim of a disease that sleeps in all of us. We need to give power to the institutions that we have put in place to control corruption: parliaments, separation of power, the press, the ballot box. And sometimes we need to say as a niece – no, I do not want that job as a favour, I want it because I have proven to be better than other contenders.
It is going to be a struggle, because it will mean sacrifices, but sacrifices that we have chosen, not those imposed on us.
Let us start today.
*Bokani Lisa Motsu is a student at University of Botswana
Parliament, the second arm of State through its parliamentary committees are one of Botswana’s most powerful mechanisms to ensure that government is held accountable at all times. The Accounting Officers are mostly Permanent Secretaries across government Ministries and Chief Executive Officers, Director Generals, Managing Directors of parastatals, state owned enterprises and Civil Society.
So parliament plays its oversight authority via the legislators sitting on a parliamentary committee and Accounting Officers sitting in the hot chair. When left with no proper checks and balances, the Executive is prone to abuse the arrangement and so systematic oversight of the executive is usually carried out by parliamentary committees. They track the work of various government departments and ministries, and conduct scrutiny into important aspects of their policy, direction and administration.
It is not rocket science that effective oversight requires that committees be totally independent and able to set their own agendas and have the power to summon ministers and top civil servants to appear and answer questions. Naturally, Accounting Officers are the highest ranking officials in the government hierarchy apart from cabinet Ministers and as such wield much power and influence in the performance of government. To illustrate further, government performance is largely owed to the strategic and policy direction of top technocrats in various Ministries.
It is disheartening to point out that the recent parliament committees — as has been the case all over the years — has laid bare the incompetency, inadequacy and ineptitude of people bestowed with great responsibilities in public offices. To say that they are ineffective and inefficient sounds as an understatement. Some appear useless and hopeless when it comes to running the government despite the huge responsibility they possess.
If we were uncertain about the degree at which the Accounting Officers are incompetent, the ongoing parliament committees provide a glaring answer. It is not an exaggeration to say that ordinary people on the streets have been held ransom by these technocrats who enjoy their air conditioned offices and relish being chauffeured around in luxurious BX SUV’s while the rest of the citizenry continue to suffer. Because of such high life the Accounting Officers seem to have, with time, they have gotten out of touch with the people they are supposed to serve.
An example; when appearing before the recent Public Accounts Committee (PAC), Office of the President Permanent Secretary, Thuso Ramodimoosi, looked reluctant to admit misuse of public funds. Although it is clear funds were misused, he looked unbothered when committee members grilled him over the P80 million Orapa House building that has since morphed into a white elephant for close to 10 successive years. To him, it seems it did not matter much and PAC members were worried for nothing.
On a separate day, another Accounting officer, Director of Public Service Management (DPSM), Naledi Mosalakatane, was not shy to reveal to PAC upon cross-examination that there exist more than 6 000 vacancies in government. Whatever reasons she gave as an excuse, they were not convincing and the committee looked sceptical too. She was faltering and seemed not to have a sense of urgency over the matter no matter how critical it is to the populace.
Botswana’s unemployment rate hoovers around 18 percent in a country where majority of the population is the youth, and the most affected by unemployment. It is still unclear why DPSM could underplay such a critical matter that may threaten the peace and stability of the country. Accounting Officers clearly appear out of touch with the reality out there – if the PAC examinations are anything to go by.
Ideally the DPSM Director could be dropping the vacancy post digits while sourcing funds and setting timelines for the spaces to be filled as a matter of urgency so that the citizens get employed to feed their families and get out of unemployment and poverty ravaging the country. The country should thank parliamentary committees such as PAC to expose these abnormalities and the behaviour of our leaders when in public office. How can a full Accounting Officer downplay the magnitude of the landless problem in Botswana and fail to come with direct solutions tailor made to provide Batswana with the land they desperately need?
Land is a life and death matter for some citizens, as we would know.
When Bonolo Khumotaka, the Accounting Officer in the Ministry of Land Management, Water and Sanitation Services, whom as a top official probably with a lucrative pay too appears to be lacking sense of urgency as she is failing on her key mandate of working around the clock to award the citizens with land especially those who need it most like the marginalised. If government purports they need P94 billion to service land to address the land crisis what is plan B for government? Are we going to accept it the way it is?
Government should wake up from its slumber and intervene to avoid the 30 years unnecessary waiting period in State land and 13 years in Tribal land. Accounting Officers are custodians of government policy, they should ensure it is effective and serve its purpose. What we have been doing over the years, has proved that it is not effective, and clearly there is a need for change of direction.
His Excellency Dr Mokgweetsi EK Masisi, the President of the Republic of Botswana found it appropriate to invoke Section 17 (1) of the Constitution of the Republic of Botswana, using the powers vested in him to declare a State of Public Emergency starting from the 2nd April 2020 at midnight.
The constitutional provision under Section 17 (2b) only provided that such a declaration could be up to a maximum of 21 days. His Excellency further invoked Section 93 (1) to convene an extra- ordinary meeting of Parliament to have the opportunity to consult members of parliament on measures that have been put in place to address the spread and transmission of the virus. At this meeting Members of Parliament passed a resolution on the legal instruments and regulations governing the period of the state of emergency, and extended its duration by six (6) months.
The passing of the State of Emergency is considered as a very crucial step in fighting the near apocalyptic potential of the Novel COVID-19 virus. One of the interesting initiatives that was developed and extended to the business community was a 3-month wage subsidy that came with a condition that no businesses would retrench for the duration of the State of Public Emergency. This has potentially saved many people’s jobs as most companies would have been extremely quick to reduce expenses by downsizing. Self-preservation as some would call it.
Most organisations would have tried to reduce costs by letting go of people, retreated and tried their best to live long enough to fight another day. In my view there is silver lining that we need to look at and consider. The fact that organisations are not allowed to retrench has forced certain companies to look at the people with a long-term view.
Most leaders have probably had to wonder how they are going to ensure that their people are resilient. Do they have team members who innovate and add value to the organisation during these testing times? Do they even have resilient people or are they just waiting for the inevitable end? Can they really train people and make them resilient? How can your team members be part of your recovery plan? What can they do to avoid losing the capabilities they need to operate meaningfully for the duration of the State of Public Emergency and beyond?
The above questions have forced companies to reimagine the future of work. The truth is that no organisation can operate to its full potential without resilient people. In the normal business cycle, new teams come on board; new business streams open, operations or production sites launch or close; new markets develop, and technology is introduced. All of this provides fresh opportunities – and risks.
The best analogy I have seen of people-focused resilience planning reframes employees as your organisation’s immune system, ready and prepared to anticipate risks and ensure they can tackle challenges, fend off illness and bounce back more quickly. So, how do you supercharge your organizational immune system to become resilient?
COVID-19 has helped many organisations realize they were not as prepared as they believed themselves to be. Now is the time to take stock and reset for the future. All the strategies and plans prior to COVID-19 arriving in Botswana need to be thrown out of the window and you need to develop a new plan today. There is no room for tweaking or reframing. Botswana has been disrupted and we need to accept and embrace the change. What we initially anticipated as a disease that would take a short term is turning out to be something we are going to have to live with for a much longer time. It is going to be a marathon and therefore businesses need to have a plan to complete this marathon.
Start planning. Planning for change can help reduce employee stress, anxiety, and overall fear, boosting the confidence of staff and stakeholders. Think about conducting and then regularly refreshing a strategic business impact analysis, look at your employee engagement scores, dig into your customer metrics and explore the way people work alongside your behaviours and culture. This research will help to identify what you really want to protect, the risks that you need to plan for and what you need to survive during disruption. Don’t forget to ask your team members for their input. In many cases they are closest to critical business areas and already have ideas to make processes and systems more robust.
Revisit your organisational purpose. Purpose, values and principles are powerful tools. By putting your organisation’s purpose and values front and center, you provide clear decision-making guidelines for yourself and your organisation. There are very tough and interesting decisions to make which have to be made fast; so having guiding principles on which the business believes in will help and assist all decision makers with sanity checking the choices that are in front of them. One noticeable characteristic of companies that adapt well during change is that they have a strong sense of identity. Leaders and employees have a shared sense of purpose and a common performance culture; they know what the company stands for beyond shareholder value and how to get things done right.
Revisit your purpose and values. Understand if they have been internalised and are proving useful. If so, find ways to increase their use. If not, adapt them as necessities, to help inspire and guide people while immunizing yourself against future disruption. Design your employee experience. The most resilient, adaptive and high performing companies are made up of people who know each other, like each other, and support each other.
Adaptability requires us to teach other, speak up and discuss problems, and have a collective sense of belonging. Listening to your team members is a powerful and disruptive thing to do. It has the potential to transform the way you manage your organisation. Enlisting employees to help shape employee experience, motivates better performance, increases employee retention and helps you spot issues and risks sooner. More importantly, it gives employees a voice so you can get active and constructive suggestions to make your business more robust by adopting an inclusive approach.
Leaders need to show they care. If you want to build resilience, you must build on a basis of trust. And this means leaders should listen, care, and respond. It’s time to build the entire business model around trust and empathy. Many of the employees will be working under extreme pressure due to the looming question around what will happen when companies have to retrench. As a leader of a company transparency and open communication are the most critical aspects that need to be illustrated.
Take your team member into confidence because if you do have to go through the dreaded excise of retrenchment you have to remember that those people the company retains will judge you based on the process you follow. If you illustrate that the business or organization has no regard for loyalty and commitment, they will never commit to the long-term plans of the organisation which will leave you worse off in the end. Its an absolutely delicate balance but it must all be done in good faith. Hopefully, your organization will avoid this!
This is the best time to revisit your identify and train your people to encourage qualities that build strong, empathetic leadership; self-awareness and control, communication, kindness and psychological safety. Resilience is the glue that binds functional silos and integrates partners, improves communications, helps you prepare, listen and understand. Most importantly, people-focused resilience helps individuals and teams to think collectively and with empathy – helping you respond and recover faster.
Article written by Thabo Majola, a brand communications expert with a wealth of experience in the field and is Managing Director of Incepta Communications.