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ĎUncivilisedí and/or ĎUnculturedí Democracies: Would Still Struggle with Deep-Rooted Conflicts of Interest Ö

In Ďcivilisedí democracies, old democracies, cultured democracies, the adherence to norms, standards and shared values is a practice. That is why they come up with legal and institutional frameworks to practice this adherence.

They have rules, regulations, control mechanisms and codes of ethics and conduct for public officials. We know, human beings can be tricky people. That is why one needs rules to contain, confine (covid19 much?) and prevent behaviours that can corrupt the system. One must manage peopleís behaviour to ensure that there is little to no damage that can deny ordinary citizens of development.

It is why these democracies have systems and regimes in place such as the conflicts of interest regulations/regime and Politically Exposed Persons (PEPs) regimes. To ensure that public officials entrusted with power do not abuse it. Underline trust and abuse.

United Nations Convention against Corruption (UNCAC) Article 2 states:

(a) ďPublic officialĒ shall mean:

(i)† †Any person holding a legislative, executive, administrative or judicial office of a State Party, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person’s seniority;

(ii)† †any other person who performs a public function, including for a public agency or public enterprise, or provides a public service, as defined in the domestic law of the State Party and as applied in the pertinent area of law of that State Party;

(iii) Any other person defined as a ďpublic officialĒ in the domestic law of a State Party.

So, is the Mayor of Francistown a public official? Yes, and he is also a Politically Exposed Person (PEP). So how do we have a Mayor tendering in a Ďcompanyí he runs and actually get awarded a tender? Simple, maybe some of us do not care about rules, regimes and regulations and competence and competition etc.

Grey areas are loved and incompetency is the norm (probably why we cannot come up with emergency public procurement regulations that continue to ensure upholding of transparency and accountability standards). It is the norm because it benefits a few and exclude the majority, particularly the majority that would compose songs about the one who skews the scale in his favour at their expense.

If you were to ask how many people the Mayorís company hires, how much taxes it has paid the past 5 years, we may be surprised. Hopefully it is one of the SMMEs that have been growing over the past years, creating employment for Batswana- helping the state fight unemployment, and not one of those- tse di winang a tender and then shelved waiting for another big win.

Let us try and get why a Mayor can win a tender in his City Council. †It is probably because democratic principles do not mean a thing in Francistown City Council or in Botswana for that matter. They have not been cultivated in our system, in the fibre of our administration. Why do I say this? In my view, democracy seeks to ensure some justice and fairness in how the state and citizens behave.

The proponents of democracy know that life can be unequal and that those who are privileged to be in positions of power can abuse that power by oppressing the powerless. So they came up with underlying values to undergird the system and ensure some equality, if not, definitely better, decent and dignified living for citizens of democracies.

So they came up with principles such as transparency, accountability and came up with mechanisms to ensure the integrity of the system. They call for competition in bidding, so that, ideally, the best company wins, best in terms of the quality of services and goods produced for and to citizens, best in regards to pricing, that the buyer gets the value for money for the goods and services.

Particularly important in the public sector, we do not want our government impoverished by price gouging. It would mean your taxes di dirisiwa bothatswa.

We have Ďmanualsí on how to run government in a democracy, but then we have some Ďuncivilisedí and Ďunculturedí people contorting the system. Even when they have gone to benchmark in the Ďcivilisedí and Ďculturedí world, to learn best practices.

By the way, the delegationí trip probably cost you and I millions. Spending millions on benchmarking trips to learn about good governance, but then come back and do the opposite? Go bidiwa eng selo se?

So the proponents of democracy Ėbe it neo-liberals, realists, socialists- go further and say openness, transparency is good but the system can still suffer abuse, let us control matters such as conflicts of interest as a way of preventing abuse and abuse of entrusted power.

A situation will exist where an officialís family and friends bid for contracts which would give their companies undue advantage. Now in Francistown, it is actually the Mayorís company. Oh yes, he declared the interest he says, but was his company really the best in terms pf pricing and quality, better than other contractors?

The prevention of conflict of interest becomes one of the most important keys of corruption prevention (Council of Europe, Conference Octopus Interface about Corruption and Democracy, Strasbourg, 20-21 Nov.2006 2006). We do want to detect, prevent and investigate corruption right?† Even prosecute, right? Then why donít we have integrity systems in place? Why donít we build public trust and confidence- or maybe it does not matter? Why?

Conflicts of interest or its perception can adversely impact the reputation and integrity of an entity or an individual, it is important for you to avoid, even the appearance its appearance. This helps maintain public trust and confidence. Kana gongwe citizens no longer have trust and confidence (wondering emoji). Gatwe ko Francistown City Council a culture of public officials, particularly politicians bidding for contracts in the City Council is practically a norm (allegedly):

  • Councillors and some officials can award tenders to their companies(allegedly);
  • They award tenders to their families and friends (allegedly);
  • They are part of the tender adjudication process even though they have companies that deal with the City Council (allegedly);

Commitment to fight inequalities and corruption is in the culture you cultivate as a nation, as government: local or central. When a public servant, underline servant, is not committed to maintaining public confidence and puts his/her economic interests before citizens, what is that? Who are they serving?

The Mayor may make millions but he is costing the country by contributing to the decimation of the SMMEs. The Private Sector is important betsho, it is not just parastatals and foreign companies, it is also the small to mid-sized companies that have the potential to grow and employ citizens.

Most of the time, corruption appears where a prior private interest improperly influenced the performance of the public official. Therefore, conflict of interest prevention has to be part of a broader policy to prevent and combat corruption. The UNCAC offers a basic legal framework for countries to consider and harmonise to prevent and combat corruption.

UNCAC is a Fundamental Preventive Tool

  • Public sector (art.7, S3):

Each State Party shall endeavour to adopt, maintain and strengthen systems that promote transparency and prevent conflicts of interest

  • Codes of conduct for public officials (art. 8, S6):

Each State Party shall take note of the relevant initiatives of regional, interregional and multilateral organizations, such as the International Code of Conduct for Public Officials contained in General Assembly resolution 51/59 of 12 December 1996… and endeavour to establish measures and systems requiring public officials to make declarations to appropriate authorities regarding their outside activities, employment,† investments, assets and substantial gifts or benefits from which a conflict of interest may result with respect to their functions as public officials.

  • Public procurement and management of public finances (art. 9 S1):

Each State Party shall take necessary steps to establish appropriate systems of procurement, based on transparency, competition and objective criteria in decision -making, that are effective in preventing corruption. Such systems shall addressÖmeasures to regulate matters regarding personnel responsible for procurement, such as declaration of interest in particular public procurements, screening procedures and training requirements.

  • Private sector (art. 12 S2):

Each State Party shall take measures to prevent corruption involving the private sector. Measures to achieve these ends may includeÖthe development of standards and procedures designed to safeguard the integrity of relevant private entities, including codes of conduct for the correct, honourable and proper performance of the activities of business and all relevant professions and the prevention of conflicts of interest, and for the promotion of the use of good commercial practices among businesses and in the contractual relations of businesses with the State.

Did they Mayor declare his company when he came into office? Is he the Director of this company? Is he a consultant? How does he work for it? When does he work for it, when he is supposedly fulltime Mayor? Doe she work at night for it and gets paid a salary, does he pay income tax for the salary from his company? Like, how does it work?

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Opinions

IEC Disrespects Batswana: A Critical Analysis

10th November 2023

The Independent Electoral Commission (IEC) has recently faced significant criticism for its handling of the voter registration exercise. In this prose I aim to shed light on the various instances where the IEC has demonstrated a lack of respect towards the citizens of Botswana, leading to a loss of credibility. By examining the postponements of the registration exercise and the IEC’s failure to communicate effectively, it becomes evident that the institution has disregarded its core mandate and the importance of its role in ensuring fair and transparent elections.

Incompetence or Disrespect?

One possible explanation for the IEC’s behavior is sheer incompetence. It is alarming to consider that the leadership of such a critical institution may lack the understanding of the importance of their mandate. The failure to communicate the reasons for the postponements in a timely manner raises questions about their ability to handle their responsibilities effectively. Furthermore, if the issue lies with government processes, it calls into question whether the IEC has the courage to stand up to the country’s leadership.

Another possibility is that the IEC lacks respect for its core clients, the voters of Botswana. Respect for stakeholders is crucial in building trust, and clear communication is a key component of this. The IEC’s failure to communicate accurate and complete information, despite having access to it, has fueled speculation and mistrust. Additionally, the IEC’s disregard for engaging with political parties, such as the Umbrella for Democratic Change (UDC), further highlights this disrespect. By ignoring the UDC’s request to observe the registration process, the IEC demonstrates a lack of regard for its partners in the electoral exercise.

Rebuilding Trust and Credibility:

While allegations of political interference and security services involvement cannot be ignored, the IEC has a greater responsibility to ensure its own credibility. The institution did manage to refute claims by the DISS Director that the IEC database had been compromised, which is a positive step towards rebuilding trust. However, this remains a small glimmer of hope in the midst of the IEC’s overall disregard for the citizens of Botswana.

To regain the trust of Batswana, the IEC must prioritize respect for its stakeholders. Clear and timely communication is essential in this process. By engaging with political parties and addressing their concerns, the IEC can demonstrate a commitment to transparency and fairness. It is crucial for the IEC to recognize that its credibility is directly linked to the trust it garners from the voters.

Conclusion:

The IEC’s recent actions have raised serious concerns about its credibility and respect for the citizens of Botswana. Whether due to incompetence or a lack of respect for stakeholders, the IEC’s failure to communicate effectively and handle its responsibilities has damaged its reputation. To regain trust and maintain relevance, the IEC must prioritize clear and timely communication, engage with political parties, and demonstrate a commitment to transparency and fairness. Only by respecting the voters of Botswana can the IEC fulfill its crucial role in ensuring free and fair elections.

 

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Opinions

Fuelling Change: The Evolving Dynamics of the Oil and Gas Industry

4th April 2023

The Oil and Gas industry has undergone several significant developments and changes over the last few years. Understanding these developments and trends is crucial towards better appreciating how to navigate the engagement in this space, whether directly in the energy space or in associated value chain roles such as financing.

Here, we explore some of the most notable global events and trends and the potential impact or bearing they have on the local and global market.

Governments and companies around the world have been increasingly focused on transitioning towards renewable energy sources such as solar and wind power. This shift is motivated by concerns about climate change and the need to reduce greenhouse gas emissions. Africa, including Botswana, is part of these discussions, as we work to collectively ensure a greener and more sustainable future. Indeed, this is now a greater priority the world over. It aligns closely with the increase in Environmental, Social, and Governance (ESG) investing being observed. ESG investing has become increasingly popular, and many investors are now looking for companies that are focused on sustainability and reducing their carbon footprint. This trend could have significant implications for the oil and fuel industry, which is often viewed as environmentally unsustainable. Relatedly and equally key are the evolving government policies. Government policies and regulations related to the Oil and Gas industry are likely to continue evolving with discussions including incentives for renewable energy and potentially imposing stricter regulations on emissions.

The COVID-19 pandemic has also played a strong role. Over the last two years, the pandemic had a profound impact on the Oil and Gas industry (and fuel generally), leading to a significant drop in demand as travel and economic activity slowed down. As a result, oil prices plummeted, with crude oil prices briefly turning negative in April 2020. Most economies have now vaccinated their populations and are in recovery mode, and with the recovery of the economies, there has been recovery of oil prices; however, the pace and sustainability of recovery continues to be dependent on factors such as emergence of new variants of the virus.

This period, which saw increased digital transformation on the whole, also saw accelerated and increased investment in technology. The Oil and Gas industry is expected to continue investing in new digital technologies to increase efficiency and reduce costs. This also means a necessary understanding and subsequent action to address the impacts from the rise of electric vehicles. The growing popularity of electric vehicles is expected to reduce demand for traditional gasoline-powered cars. This has, in turn, had an impact on the demand for oil.

Last but not least, geopolitical tensions have played a tremendous role. Geopolitical tensions between major oil-producing countries can and has impacted the supply of oil and fuel. Ongoing tensions in the Middle East and between the US and Russia could have an impact on global oil prices further, and we must be mindful of this.

On the home front in Botswana, all these discussions are relevant and the subject of discussion in many corporate and even public sector boardrooms. Stanbic Bank Botswana continues to take a lead in supporting the Oil and Gas industry in its current state and as it evolves and navigates these dynamics. This is through providing financing to support Oil and Gas companies’ operations, including investments in new technologies. The Bank offers risk management services to help oil and gas companies to manage risks associated with price fluctuations, supply chain disruptions and regulatory changes. This includes offering hedging products and providing advice on risk management strategies.

Advisory and support for sustainability initiatives that the industry undertakes is also key to ensuring that, as companies navigate complex market conditions, they are more empowered to make informed business decisions. It is important to work with Oil and Gas companies to develop and implement sustainability strategies, such as reducing emissions and increasing the use of renewable energy. This is key to how partners such as Stanbic Bank work to support the sector.

Last but not least, Stanbic Bank stands firmly in support of Botswana’s drive in the development of the sector with the view to attain better fuel security and reduce dependence risk on imported fuel. This is crucial towards ensuring a stronger, stabler market, and a core aspect to how we can play a role in helping drive Botswana’s growth.  Continued understanding, learning, and sustainable action are what will help ensure the Oil and Gas sector is supported towards positive, sustainable and impactful growth in a manner that brings social, environmental and economic benefit.

Loago Tshomane is Manager, Client Coverage, Corporate and Investment Banking (CIB), Stanbic Bank Botswana

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Opinions

Brands are important

27th March 2023

So, the conclusion is brands are important. I start by concluding because one hopes this is a foregone conclusion given the furore that erupts over a botched brand. If a fast food chef bungles a food order, there’d be possibly some isolated complaint thrown. However, if the same company’s marketing expert or agency cooks up a tasteless brand there is a country-wide outcry. Why?  Perhaps this is because brands affect us more deeply than we care to understand or admit. The fact that the uproar might be equal parts of schadenfreude, black twitter-esque criticism and, disappointment does not take away from the decibel of concern raised.

A good place to start our understanding of a brand is naturally by defining what a brand is. Marty Neumier, the genius who authored The Brand Gap, offers this instructive definition – ‚ÄúA brand is a person‚Äôs gut feel about a product or service‚ÄĚ. In other words, a brand is not what the company says it is. It is what the people feel it is. It is the sum total of what it means to them. Brands are perceptions. So, brands are defined by individuals not companies. But brands are owned by companies not individuals. Brands are crafted in privacy but consumed publicly. Brands are communal. Granted, you say. But that doesn‚Äôt still explain why everybody and their pet dog feel entitled to jump in feet first into a brand slug-fest armed with a hot opinion. True. But consider the following truism.

 

Brands are living. They act as milestones in our past. They are signposts of our identity. Beacons of our triumphs. Indexes of our consumption. Most importantly, they have invaded our very words and world view. Try going for just 24 hours without mentioning a single brand name. Quite difficult, right? Because they live among us they have become one of us. And we have therefore built ‚Äėbrand bonds‚Äô with them. For example, iPhone owners gather here. You love your iPhone. It goes everywhere. You turn to it in moments of joy and when we need a quick mood boost. Notice how that ‚Äėrelationship‚Äô started with desire as you longingly gazed upon it in a glossy brochure. That quickly progressed to asking other people what they thought about it. Followed by the zero moment of truth were you committed and voted your approval through a purchase. Does that sound like a romantic relationship timeline. You bet it does. Because it is. When we conduct brand workshops we run the Brand Loyalty ‚ĄĘ exercise wherein we test people‚Äôs loyalty to their favourite brand(s). The results are always quite intriguing. Most people are willing to pay a 40% premium over the standard price for ‚Äėtheir‚Äô brand. They simply won‚Äôt easily ‚Äėbreakup‚Äô with it. Doing so can cause brand ‚Äėheart ache‚Äô. There is strong brand elasticity for loved brands.

 

Now that we know brands are communal and endeared, then companies armed with this knowledge, must exercise caution and practise reverence when approaching the subject of rebranding. It‚Äôs fragile. The question marketers ought to ask themselves before gleefully jumping into the hot rebranding cauldron is ‚Äď Do we go for an Evolution (partial rebrand) or a Revolution(full rebrand)? An evolution is incremental. It introduces small but significant changes or additions to the existing visual brand. Here, think of the subtle changes you‚Äôve seen in financial or FMCG brands over the decades. Evolution allows you to redirect the brand without alienating its horde of faithful followers. As humans we love the familiar and certain. Change scares us. Especially if we‚Äôve not been privy to the important but probably blinkered ‚Äėstrategy sessions‚Äô ongoing behind the scenes. Revolutions are often messy. They are often hard reset about-turns aiming for a total new look and ‚Äėfeel‚Äô.

 

 

Hard rebranding is risky business. History is littered with the agony of brands large and small who felt the heat of public disfavour. In January 2009, PepsiCo rebranded the Tropicana. When the newly designed package hit the shelves, consumers were not having it. The New York Times reports that ‚Äėsome of the commenting described the new packaging as ‚Äėugly‚Äô ‚Äėstupid‚Äô. They wanted their old one back that showed a ripe orange with a straw in it. Sales dipped 20%. PepsiCo reverted to the old logo and packaging within a month. In 2006 Mastercard had to backtrack away from it‚Äôs new logo after public criticism, as did Leeds United, and the clothing brand Gap. AdAge magazine reports that critics most common sentiment about the Gap logo was that it looked like something a child had created using a clip-art gallery. Botswana is no different. University of Botswana had to retreat into the comfort of the known and accepted heritage strong brand.¬† Sir Ketumile Masire Teaching Hospital was badgered with complaints till it ‚Äėadjusted‚Äô its logo.

 

 

So if the landscape of rebranding is so treacherous then whey take the risk? Companies need to soberly assess they need for a rebrand. According to the fellows at Ignyte Branding a rebrand is ignited by the following admissions :

Our brand name no longer reflects our company’s vision.
We’re embarrassed to hand out our business cards.

Our competitive advantage is vague or poorly articulated.
Our brand has lost focus and become too complex to understand. Our business model or strategy has changed.
Our business has outgrown its current brand.
We’re undergoing or recently underwent a merger or acquisition. Our business has moved or expanded its geographic reach.
We need to disassociate our brand from a negative image.
We’re struggling to raise our prices and increase our profit margins. We want to expand our influence and connect to new audiences. We’re not attracting top talent for the positions we need to fill. All the above are good reasons to rebrand.

The downside to this debacle is that companies genuinely needing to rebrand might be hesitant or delay it altogether. The silver lining I guess is that marketing often mocked for its charlatans, is briefly transformed from being the Archilles heel into Thanos’ glove in an instant.

So what does a company need to do to safely navigate the rebranding terrain? Companies need to interrogate their brand purpose thoroughly. Not what they think they stand for but what they authentically represent when seen through the lens of their team members. In our Brand Workshop we use a number of tools to tease out the compelling brand truth. This section always draws amusing insights. Unfailingly, the top management (CEO & CFO)always has a vastly different picture of their brand to the rest of their ExCo and middle management, as do they to the customer-facing officer. We have only come across one company that had good internal alignment. Needless to say that brand is doing superbly well.

There is need a for brand strategies to guide the brand. One observes that most brands ‚Äėmake a plan‚Äô as they go along. Little or no deliberate position on Brand audit, Customer research, Brand positioning and purpose, Architecture, Messaging, Naming, Tagline, Brand Training and may more. A brand strategy¬†distils why your business exists beyond making money ‚Äď its ‚Äėwhy‚Äô. It defines what makes your brand what it is, what differentiates it from the competition and how you want your customers to perceive it. Lacking a brand strategy disadvantages the company in that it appears soul-less and lacking in personality. Naturally, people do not like to hang around humans with nothing to say. A brand strategy understands the value proposition. People don‚Äôt buy nails for the nails sake. They buy nails to hammer into the wall to hang pictures of their loved ones. People don‚Äôt buy make up because of its several hues and shades. Make up is self-expression. Understanding this arms a brand with an iron clad clad strategy on the brand battlefield.

But perhaps you‚Äôve done the important research and strategy work. It‚Äôs still possible to bungle the final look and feel.¬† A few years ago one large brand had an extensive strategy done. Hopes were high for a top tier brand reveal. The eventual proposed brand was lack-lustre. I distinctly remember, being tasked as local agency to ‚Äėland‚Äô the brand and we outright refused. We could see this was a disaster of epic proportions begging to happen. The brand consultants were summoned to revise the logo. After a several tweaks and compromises the brand landed. It currently exists as one of the country‚Äôs largest brands. Getting the logo and visual look right is important. But how does one know if they are on the right path? Using the simile of a brand being a person – The answer is how do you know your outfit is right? It must serve a function, be the right fit and cut, it must be coordinated and lastly it must say something about you. So it is possible to bath in a luxurious bath gel, apply exotic lotion, be facebeat and still somehow wear a faux pas outfit. Avoid that.

Another suggestion is to do the obvious. Pre-test the logo and its look and feel on a cross section of your existing and prospective audience. There are tools to do this. Their feedback can save you money, time and pain. Additionally one must do another obvious check ‚Äď use Google Image to verify the visual outcome and plain Google search to verify the name. These are so obvious they are hopefully for gone conclusions. But for the brands that have gone ahead without them, I hope you have not concluded your brand journeys as there is a world of opportunity waiting to be unlocked with the right brand strategy key.

Cliff Mada is Head of ArmourGetOn Brand Consultancy, based in Gaborone and Cape Town.

cliff@armourgeton.com

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