This week President Dr Mokgweetsi Masisi admitted to job creation being one of his “greatest” struggle, saying the economy is failing to yield jobs as yet. The President further, through the local media midweek, addressed Batswana’s impatience on lack of jobs saying but the economy would not work that way.
Masisi who has been dubbed the “Jobs President” when taking over presidency in 2018 is already feeling the heat from his critics who are accusing him of being Janus-faced when addressing the unemployment issue. Masisi’s critics were up in arms after the president recently sounded to divert that which he made his top priority even when he took leadership of the ruling party in 2016, job creation.
Last month from the Masisi was accused of trying to divert his promise of creation of jobs to the private sector when coming from his World Economic Forum trip; this topic that even made a big national debate towards and after the Budget Speech of 2020. Leader of the private sector Gobusamang Keebine has said job creation should be led by government with policy and good governance.
"My duty as the president is to create environment for jobs to be created. I cannot open a brick manufacturing factory and employ people but i create conducive space for investors to do so and employ local people instead. I attend world summits to create space for jobs to be created,” this created a big uproar with some seeing the president to be speaking with a forked tongue in his jobs creation mandate.
Even though dishing out old statistics of the 2015/16 unemployment rate, finance minister during the Budget Speech admitted that “the unemployment rate has remained a cause for concern, at annual rate of 17.6 percent of the labour force in 2015/16.” Opposition legislators after the budget speech were already saying Masisi is failing in job creation while some Mps from the ruling party kept the president’s stance that jobs would come with partnership with the private sector, allowing more capacity for economic activity.
Recent statistics from Statistics Botswana shows that the unemployment rate is increasing, the three months of July to September 2019 shows idleness rate of 20.7 percent for the third quarter of 2019. According to Quarterly Multi Topic Survey Labour Force Module Report- Q3 2019, the unemployed population is 194 990, with 93 190 men unemployed who are less than women who are jobless in Q3 2019 being 101 799. The unemployed population has grown by 32.5 percent in the quarter under review when compared to the preceding quarter in the Statistics Botswana records.
The unemployed population with disability increased by 7.3 percent in Q3 2019 from Q2 2019. Youth unemployment increased by 1.6 percent while youth not in education, not in employment or training rate increased by 4.7 percent. Statistics Botswana recently released its first ever quarterly labour force survey results for the three months of July to September 2019, which show an unemployment rate of 20.7 percent for that quarter.
Talking about the same sQ3 2019 results and bringing them closer to the concern of unemployment rate that seem not to be curbing according to statistics during the recent budget speech, Matsheka said the unemployment rate of 20.7 percent for the quarter cannot be directly compared with the 17.6 percent annual rate for 2015/2016. These results are for one quarter only and are subject to seasonal variations, he explained during the reading of the budget speech.
“….Successful economic diversification requires an economic growth rate that is high enough to generate sufficient jobs to address unemployment, raise household incomes and reduce poverty. This has not yet been achieved and the unemployment rate has remained a cause for concern, at annual rate of 17.6 percent of the labour force in 2015/16, according to data from Statistics Botswana. Therefore, accelerated growth, consistent with Vision 2036, will require a mix of policies that promote export diversification in goods and services to impact unemployment, especially among the youth,” said Matsheka.
The working poor and disparities
Menial jobs or piece jobs took a larger population of the country’s employment, meaning a lot of Batswana were absorbed to work for ‘small jobs.’ The report says the largest proportion of jobs is found in the elementary occupations with 114,766 persons representing 23.7 percent of the entire labour force. This jobs were followed by occupations in the service/sales workers with 112,707 persons (23.3 percent) while professionals were at 12.7 percent or had 61,652 persons employed.
When the Statistics Botswana revealed the Q3 2019 monthly average cash by occupation it shows that monthly average cash earning by occupation professionals who were not the most employed in the population were the highest earners, recording P12 455 followed by managers and Technicians & Associate Professionals with P11,122 and P10,171.
With complaints still high that Botswana’s minimum wage is low to the benchmark, the rest of the population who are the most employed earn peanuts. Unlike their counterparts at professional level, the mostly employed in the population, elementary workers average earning is the lowest recording at P1 286.
And foreigners showed to be earning more than their Batswana counterparts with average earnings for non-citizens was estimated at P5, 117, P12, 794 and P5, 404 for all employees. The national records reveals that Fourth Quarter FSES monthly average cash earnings for Citizens was 6,206, while for 2019 QMTS was 5,117, for Non-Citizens was 20,374, from QMTS was 12,794, for all Employees was 6,533, while for QMTS was 5,404.
Foreigners got most jobs at the education sector recording 19.6 percent (3,546 persons), followed by Construction and Human Health and Social Work Activities with 17.8 (3,236 persons) and 14.1 percent (2,560 persons) respectively. In a case showing gender disparity, in almost all industries males earns more than females, this is an exception in industries like Real Estate Activities, Arts, Entertainment and Recreation, Health, Extraterritorial Organisation where women get better salaries than men.
According to Statistics Botswana, males recorded P6, 729 and for females was P4, 178 in total formal sector employment monthly average cash earnings. In total the third quarter 2019 (July to September 2019) estimated average cash earning from the 2019/20 QMTS Formal Sector Employment with the Fourth quarter 2018 Formal Sector Employment Survey (FSES) shows that there was a decrease in average earnings.
The national statistics has further seen that at industry level, Accommodation and Food Service Industry have employed more females, accounted for 70.5 percent of employees working in the industry, followed by Education with 65.7 percent. However construction and Mining & Quarrying were the two industries which have employed lowest proportion of females recording 11.3 percent and 19.3 percent of female employees.
Men mostly get jobs in cities and towns while their female counterparts are seen working at rural areas according to the latest statistics. But in urban areas like Gaborone and Francistown many women recorded a higher percentage in employment than males being at 51.7 percent for females as compared to 48.3 percent for males.
The capital city Gaborone recorded the highest number of people working in Formal Sector, recording 16.5 percent, followed by Kweneng East with 13.8 percent and Central Serowe with 6.2 percent and males were dominating in formal sector employment almost in all the cities according to statistics. Females were many in formal employment were recorded in all the district except Kgatleng, Ngamiland East, Kweneng East, Central Mahalapye and Kgalagadi South.
Education, skills match issue
Statistics Botswana refer to elementary jobs as “mostly unskilled” but this is also the national cry of even formal sector and businesses complaining in a report by the central bank to be receiving unskilled employees. According to Bank of Botswana’s recent Business Expectation Survey, unavailability of skilled labour was cited as the greatest challenge facing businesses in the fourth quarter of 2019, particularly in the manufacturing, trade, hotels, restaurants, transport and communications sectors3 , arising from the reported difficulties experienced in recruiting foreign skilled labour.
But do people go to school, get higher qualification and get easily hired? That is not the case in the national statistics as employers are mostly fishing in the less qualified pound. Higher education holders, higher certificates, diploma and degree holders are suffering to get jobs and it is recorded in the national statistics. Employment by education level shows that people who completed lower education or secondary school contributed 45.5 percent of the overall employment in the population.
Those who are regarded as fairly educated, the ones at university or tertiary level were at a lower percentage of the overall employment at only 15.9 percent. Primary qualifications holders were at 13.2 percent. Also when statistics reveals the issue from a sectorial perspective, the highest percentage (41.7 percent) of people in Formal Sector Employment have secondary school education. The statistics further states that these rates were followed by those with University and Primary school education with 21.5 and 10.6 percent respectively.
According to Statistics Botswana, a small percentage (0.5 percent) of people in Formal Sector Employment have apprenticeship. Statistics Botswana has shown in the same Q3 reports that youth not in education, not in employment or training rate increased by 4.7 percent.
According to Statistics Botswana, Formal Sector Employment by Industry shows that Public Administration had the largest portion of employment at 29.0 percent (140,280 persons), followed by Wholesale, Retail & Repair of Motor Vehicles with 13.5 percent (65,084 persons) and Education with 12.0 percent (58,034 persons) of total employment.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.
African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.
The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.
The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.
To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”
Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.
The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.
“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.
“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.
The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.
About the World Economic Forum Annual Meeting 2023
The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,
Electricity generation in Botswana during the third quarter of 2022 declined by 15.8%, following operational challenges at Botswana Power Corporation’ Morupule B power plant, according to Statistics Botswana Index of Electricity Generation (IEG) released last week.
The index shows that local electricity generation decreased by 148,243 MWH from 937,597 MWH during the second quarter of 2022 to 789,354 MWH during the third of quarter of 2022.
This decrease, according to the index, was mainly attributed to a decline in power supply realized at Morupule B power station. The index shows that as a result of low power supply from the plant, imported electricity during the third quarter of 2022 increased by 76.3 percent (123,831 MWH), from 162,340 MWH during the second quarter of 2022 to 286,171 MWH during the current quarter and Statistics Botswana added that the increase was necessitated by the need to augment the shortfall in generated electricity.
In the index Statistics Botswana stated that Eskom was the main source of imported electricity at 42.0 percent of total electricity imports. “The Southern African Power Pool (SAPP) accounted for 38.4 percent, while the remaining 10.1, 9.1 and 0.5 percent were sourced from Electricidade de Mozambique (EDM), Cross-border electricity markets and the Zambia Electricity Supply Corporation Limited (ZESCO), respectively. Cross-border electricity markets are arrangements whereby towns and villages along the border are supplied with electricity from neighbouring countries such as Namibia and Zambia.”
The government owned statistics entity stated that distributed electricity decreased by 2.2 percent (24,412 MWH), from 1,099,937 MWH during the second quarter of 2022 to 1,075,525 MWH during the third quarter of 2022. The entity noted that electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 85.2 percent during the third quarter in 2022 and added that this gives a decline of 11.8 percentage points. “The quarter-on-quarter comparison shows that the contribution of electricity generated to electricity distributed decreased by 11.8 percentage points compared to the 85.2 percent contribution during the second quarter of 2022.”
Statistics Botswana meanwhile stated that the year-on-year analysis shows some improvement in local electricity generation. Recent figures from entity show that the physical volume of electricity generated increased by 36.3 percent (210,319 MWH), from 579, 036 MWH during the third quarter of 2021 to 789,354 MWH during the current quarter. According to Statistics Botswana electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 57.7 percent during the same quarter in 2021. This gives an increase of 15.7 percentage points.
The entity noted that trends also show an increase in physical volume of electricity distributed from 2013 to the third quarter of 2022, thereby indicating that there are ongoing efforts to meet the domestic demand for power. “There has been a gradual increase of distributed electricity from the first quarter of 2013 to the third quarter of 2022, even though there are fluctuations. The year-on-year perspective shows that the amount of distributed electricity increased by 7.2 percent (71,787 MHW), from 1,003,738 MWH during the third quarter of 2021 to 1,075,525 MWH during the current quarter.”
The statistics entity noted that year-on-year analysis show that during the third quarter of 2022, the physical volume of imported electricity decreased by 32.6 percent (138,532 MWH), from 424,703 MWH during the third quarter of 2021 to 286,171 MWH during the third quarter of 2022. “There is a downward trend in the physical volume of imported electricity from the first quarter of 2013 to the third quarter of 2022. The downward trend indicates the country’s continued effort to generate adequate electricity to meet domestic demand, hence the decreased reliance on electricity imports.”