Minister of Finance & Economic Development, Dr Thapelo Matsheka has announced that Botswana’s economy is expected to decline by 13.1 % against the initial projected growth of 4 % for the 2020/21 financial year.
When addressing members of the media on Friday, Dr Matsheka said this is due to the effect of COVID-19 global pandemic which will shrink the global economy by 3 % against the initial expected growth of over 3 %.
Against initial projected revenue of P62.4 billion Botswana‘s economy will only generate a projected revenue of about P48 billion. Dr Matsheka explained that therefore government has trimmed its budget from P67.6 billion to P59.6 billion. The country’s budget deficit will now shoot up from initial P5.2 billion (2.4 % of GDP) to over P10 billion which will now be over 5 % of GDP, well over government threshold of 4%.
According to Dr Matsheka, Government will therefore do away with some planned expenditures and projects. The Minister revealed that conferences and meetings will be cancelled, especially international travels by government, state funded institutions and parastatals.
Funding to parastatals and quasi-governmental institutions will be significantly reduced. “No luxury of attending international conferences but rather we are going to be a destination of conferences as a country,” he said. The decline in government revenue will be attributable to a massive reduction in Mining & Mineral revenue which is anticipated to shrink by over 33 %.
The decline in mining and mineral revenue is predominately as a result of a halt in rough diamond sales due to travel restrictions and standstill in trading across the industry.
The diamond industry is Botswana‘s key foreign income earner and largest contributor to GDP. It was projected that diamond revenue will bring to the table a total of P20 billion, however Dr Matsheka revealed that because of the severe impact of the coronavirus, it is expected that revenue from minerals will drop to about P6 billion. Meanwhile Tourism and hospitality revenue will go down by over 32 %, the Minister shared.
At the same briefing the Minister announced that the Covid-19 Relief Fund currently has about 2 billion pula (as seed contribution by government) and 60 million pula (from private sector). Minister of Finance and Economic Development, Matsheka and gave details of other procurement decisions made to contain the coronavirus pandemic.
Gov’t orders medical supplies worth P2. 4 billion from China
Dr Matsheka further announced that Botswana has placed an order for medical supplies worth P2. 4 billion from China and they are currently waiting for the delivery.
He said they are working together with the Ministry of Foreign Affairs and International Relations and the Embassy of China to have the goods arrive on time. The Minister further reiterated Government interim decision to halt salary increases for government workers.
For so many years, Botswana has been trying to be a self-sufficient country that is able to provide its citizens with locally produced food products. Through appropriate collaborations with parastatals such as CEDA, ISPAAD and LEA, government introduced initiatives such as the Horticulture Impact Accelerator Subsidy-IAS and other funding facilities to facilitate horticultural farmers to increase production levels.
Now that COVID-19 took over and disrupted the food value chain across all economies, Botswana government introduced these initiatives to reduce the import bill by enhancing local market and relieve horticultural farmers from loses or impacts associated with the pandemic.
In more concerted efforts to curb these food crises in the country, government extended the ploughing period for the Southern part of Botswana. The extension was due to the late start of rains in the Southern part of the country.
Last week the Ministry of Agriculture extended the ploughing period for the Northern part of the country, mainly because of rains recently experienced in the country. With these decisions taken urgently, government optimizes food security and reliance on local food production.
When pigs fly, Botswana will be able to produce food to feed its people. This is evident by the numbers released by Statistics Botswana on imports recorded in November 2020, on their International Merchandise Trade Statistics for the month under review.
The numbers say Botswana continues to import most of its food from neighbouring South Africa. Not only that, Batswana relies on South Africa to have something to smoke, to drink and even use as machinery.
According to data from Statistics Botswana, the country’s total imports amounted to P6.881 Million. Diamonds contributed to the total imports at 33%, which is equivalent to P2.3 Million. This was followed by food, beverages and tobacco, machinery and electrical equipment which stood at P912 Million and P790 Million respectively.
Most of these commodities were imported from The Southern African Customs Union (SACU). The Union supplied Botswana with imports valued at over P4.8 Million of Botswana’s imports for the month under review (November 2020). The top most imported commodity group from SACU region was food, beverages and tobacco, with a contribution of P864 Million, which is likely to be around 18.1% of the total imports from the region.
Diamonds and fuel, according to these statistics, contributed 16.0%, or P766 Million and 13.5% or P645 Million respectively. Botswana also showed a strong and desperate reliance on neighbouring South Africa for important commodities. Even though the borders between the two countries in order to curb the spread of the COVID-19 virus, government took a decision to open border gates for essential services which included the transportation of commodities such as food.
Imports from South Africa recorded in November 2020 stood at P4.615 Million, which accounted for 67.1% of total imports during the month under review. Still from that country, Botswana bought food, beverages and tobacco worth P844 Million (18.3%), diamonds, machinery and fuel worth P758 Million, P601 Million and P562 Million respectively.
Botswana also imported chemicals and rubber products that made a contribution of 11.7% (P542.2 Million) to total imports from South Africa during the month under review, (November 2020).
The European Union also came to Botswana’s rescue in the previous year. Botswana received imports worth P698.3 Million from the EU, accounting for 10.1% of the total imports during the same month. The major group commodity imported from the EU was diamonds, accounting for 86.9% (P606.6 Million), of imports from the Union. Belgium was the major source of imports from the EU, at 8.9% (P609.1 Million) of total imports during the period under review.
Meanwhile, Minister of Finance and Economic Development Thapelo Matsheka says an improvement in exports and commodity prices will drive growth in Sub-Saharan Africa. Growth in the region is anticipated to recover modestly to 3.2% in 2021. Matsheka said this when delivering the Annual Budget Speech virtually in Gaborone on the 1st of February 2021.
He said implementation of the African Continental Free Trade Area Agreement (AfCFTA), which became operational in January 2021, could reduce the region’s vulnerability to global disruptions, as well as deepen trade and economic integration.
“This could also help boost competition and productivity. Successful implementation of AfCFTA will, of necessity, require Member States to eliminate both tariffs and non-tariff barriers, and generally make it easier to do business and invest across borders.”
Matsheka, who is also a Member of Parliament for Lobatse, an ailing town which houses the struggling biggest meat processing company in the country- Botswana Meat Commission, (BMC), said the Southern African Customs Union (SACU) recognizes the need to prioritize the key processes required for the implementation of the AfCFTA.
“The revised SACU Tariff Offer, which comprises 5,988 product lines with agreed Rules of Origin, representing 77% of the SACU Tariff Book, was submitted to the African Union Commission (AUC) in November 2020. The government is in the process of evaluating the tariff offers of other AfCFTA members prior to ratification, following which Botswana’s participation in AfCFTA will come to effect.”
Events that recently unfolded in the athletics world locally point only to possibility – Letsile Tebogo and Maungo Matlhaku are well groomed to receive the baton from Isaac Makwala and Lydia Jele respectively.
The two athletes sprinted to new local track records, smashing those set by their seniors.
As it is the norm in athletics, the biggest mistake these two athletes could make is to drop the baton. The two youngsters must not look back, they must steeplechase – clear all the hurdles so they may surpass the feet achieved by their seniors.
Letsile Tebogo announced his arrival in scintillating fashion recently. Barely two years after smashing Thebe’s 200m national record of 21:25 during Gaborone Games in 2019, this past weekend the young lad obliterated yet another 100m national record of 10.20 seconds. For a long time the record was held by the country’s iconic athlete Isaac Makwala.
Tebogo set a new record, completing the race in 10.14 seconds. Tebogo, who is currently under Lefika Athletics Club, came into the meet, organised by Sports View Runners Club, with a personal best of 10.49 seconds.
However, the new national record was not good enough for Tebogo to qualify for the Olympic Games as he needed to clock 10.05 seconds; which is the Olympic qualifying entry under the 100meters category. For his efforts, he received P1 000 cash and a trophy.
Under the women’s category, Leungo Matlhaku also stole the show after clocking 11.24 seconds to replace Lydia Jele’s national record of 11.39 seconds which she set in May 2019.
When speaking to local media after the race, Matlhaku assured the nation to expect the best performance at the upcoming events as she aims to qualifying for Tokyo Olympics and World Championships.
The sensational 100m sprinter said: “Even though after almost nine months without training, performance was testimony of the fact that the best was yet to come.”
Matlhaku noted that setting new national records was an indication that athletes were at their peak performance and that the upcoming national meets would be appetizing with the positive performance.
This week WeekendSport caught up with Tebogo, who expressed his gratitude to the national team athletes as the pillar behind his strength since they encouraged him to work hard. He agrees that he needs to habituate himself to hard work.
He said Saturday’s performance helped him realise his dream of qualifying for the upcoming 2020 Tokyo Olympics which was postponed last year due to the outbreak of Covid-19.
“For me to qualify for the upcoming Olympics under 100 meters category, I will have to clock 10.05 seconds which is qualification entry while under 200meter is 20.24 seconds,” he shared.
When quizzed how Covid-19 has affected his preparation he said: “It has affected us badly as preparation training for the competition was halted, but the lockdown imposed was however useful as I used the period to work out on my strength which are necessary for a sprinter.”
Tebogo started seriously taking part in athletics in 2016 when he was still at primary school. At the time he was under the guidance of former national team coach, Mogomotsi Otsetswe.
In 2016 during Botswana Primary School Sports Association (BOPSSA) competitions, he won three gold medals in 100m, 200m and 4x100m relays.
Despite not winning anything the previous year, 2018 saw him come back well prepared and went on to win two gold medals under the 200m category and 4X100m relays. He also won a silver medal after a sterling performance in the 100m race during the Botswana Integrated Sports Association (BISA) national finals.
Tebogo went on to win the gold medal after clocking an impressive time of 21:12, qualifying for under 20 World Athletics Championships which was to be held in Kenya last year but was postponed yet again due to corona virus.
Over the last 10 years, Botswana Athletics Association (BAA) has been famed for its consistency when it comes to producing the country’s top athletes, who are dominating and widening the competition gap with other sporting codes.
The code success expresses itself in elite talents the likes of Baboloki Thebe, Nigel Amos, Amantle Montsho and Karabo Sibanda to mention but a few.
These top talents made sure athletics remain at the top in this country.
Women continue to shadow men in politics – stereotypes such as ‘behind every successful man there is a woman’ cast the notion that women cannot lead. The 2019 general election recorded one of Botswana’s worst performances when it comes to women participation in parliamentary democracy with only three women elected to parliament.
Botswana’s former Minister of Health, Professor Sheila Tlou who is currently the Co-Chair, Global HIV Prevention Coalition & Nursing Now and an HIV, Gender & Human Rights Activist is not amused by the status quo. Tlou attributes this dilemma facing women to a number of factors, which she is convinced influence the voting patterns of Batswana when it comes to women politicians.
Professor Tlou plugs the party level voting systems as the first hindrance that blocks women from ascending to power. According to the former Minister of Health, there is inadequate amount of professionalism due to corrupt internal party structures affecting the voters roll and ultimately leading to voter apathy for those who end up struck off the voters rolls under dubious circumstances.
Tlou also stated that women’s campaigns are often clean; whilst men put to play the ‘politics is dirty metaphor using financial muscle to buy voters into voting for them without taking into consideration their abilities and credibility. The biggest hurdle according to Tlou is the fallacy that ‘Women cannot lead’, which is also perpetuated by other women who discourage people from voting for women.
There are numerous factors put on the table when scrutinizing a woman, she can be either too old, or too young, or her marital status can be used against her. An unmarried woman is labelled as a failure and questioned on how she intends on being a leader when she failed to have a home. The list is endless including slut shaming women who have either been through a divorce or on to their second marriages, Tlou observed.
The only way that voters can be emancipated from this mentality according to Tlou is through a robust voter education campaign tailor made to run continuously and not be left to the eve of elections as it is usually done. She further stated that the current crop of women in parliament must show case their abilities and magnify them – this will help make it clear that they too are worthy of votes.
And to women intending to run for office, Tlou encouraged them not to wait for the eleventh hour to show their interest and rather start in community mobilisation projects as early as possible so that the constituents can get to know them and their abilities prior to the election date.
Youthful Botswana National Front (BNF) leader and feminist, Resego Kgosidintsi blames women’s mentality towards one another which emanates from the fact that women have been socialised from a tender age that they cannot be leaders hence they find it difficult to vote for each other.
Kgosidintsi further states that, “Women do not have enough economic resources to stage effective campaigns. They are deemed as the natural care givers and would rather divert their funds towards raising children and building homes over buying campaign materials.”
Meanwhile, Vice President of the Alliance for Progressives (AP), Wynter Mmolotsi agrees that women’s participation in politics in Botswana remains a challenge. To address this Mmolotsi suggested that there should be constituencies reserved for women candidates only so that the outcome regardless of the party should deliver a woman Member of Parliament.
Mmolotsi further suggested that Botswana should ditch the First Past the Post system of election and opt for the proportional representation where contesting parties will dutifully list able women as their representatives in parliament.
On why women do not get elected, Mmolotsi explained that he had heard first hand from voters that they are reluctant to vote for women since they have limited access to them once they have won; unlike their male counterparts who have proven to be available night or day.
The pre-historic awarding of gender roles relegating women to be pregnant and barefoot at home and the man to be out there fending for the family has disadvantaged women in political and other professional careers.