Walmart, the world’s most successful retailer knocked doors on the South African market in 2011. With a total equity of just less than a trillion pula (BWP895 billion), 2.2 million employees around the world, its strategic merger with Massmart in South Africa was to define what was to be the new era for retail and FMCGs sector not just in the country of the strategic merger but across the continent.
To put this into context Massmart owns Makro, Game, Jumbo Cash and Carry, Builders Stores amongst dozens of other established brands. This was against the backdrop of Shoprite owning the crown of the African market in the FMCG space from Johannesburg to Gaborone and the rest of the mother continent. Spa, Pick n Pay and Woolworths are also domineering forces that have known nothing but leadership on the FMCG sectors.
Having some of the global leaders with expertise that is close to impossible to replicate closing deals with Africa’s market leaders for market domination and control meant a new era for the markets. What chance really would any player make and take in any part of the continent when the world’s best is playing a game of chess with great masterminds and strategists with a financial war chest which cannot be replicated?
Sam Walton (Founder of Walmart) at the end of his life is quoted saying, “If we work together, we will lower the cost of living for everyone… we will give the world an opportunity to see what it’s to save and have a better life.” Born during Great Depression his convictions were to serve the average working consumer by offering the lowest prices anytime, anywhere. His vision/strategy intent was premised on an un-ending quest to improve lives best on good competitive prices for all.
There is no business journal in the world that doesn’t celebrate the late Walton as the mastermind on matters of strategy. His model won the world over on pricing because of an enduring vision. Having his business’ presence on the continent through Massmart meant the world and markets watch in wonder and bewilderment as big boys do what they know best – dominate.
The Economist highlights that South African retailers such as Shoprite, Pick & Pay, Spar and Woolworths are highly sophisticated and offer a fine array of fresh food, at least in the big cities. Botswana saw an unlikely creation metamorphose in Lobatse in the form of Wayside. Two struggling stores meant for the local market of just under 20 000 at the time were trying to figure out a model which could rival local dominance of established brands and outcompete for the benefit of the ordinary Motswana.
An unknown accountant from Mazaars always seen analyzing figures, and as a regular at the store he was set to be the new visionary of what would be Botswana’s leading brand in its sector. “Choppies was an exciting story because of its rapid growth and expansion as a leading FMCG player in Botswana. It’s phenomenal growth and eventual listing on the BSE was a spectacle.
Major players such as retail players like Spar and Pick n Pay upped their game in acknowledgement of Choppies’ surprise market domination,” notes an investment expert who is close to Choppies transactions and declined to be named.
“They took a dent with over concentration on the top line and rapid African expansion. Exiting Kenya, Mozambique, South Africa and other market and announcement of a measures growth strategy is what shareholders hope to see in addition to rolling out the full plan of a deputy CEO and succession,” he notes.
“WE are pleased with the re-admission on the local bourse. It is critical for a listed entity. We never compromised on investor confidence. We are exiting a few markets where growth came at the expense of Choppies Botswana. For the remaining markets Zambia is growing slowly, Namibia has a strong chance of growth and Zimbabwe is profitable despite challenges of market stability,” notes Ram Ottapathu.
Premised on finding solutions for the average shopper for basic grocery needs Choppies found a unique value frontier that established brands had left wide open. Any viable local farmer with produce knew that Choppies was good option to supply their hard-earned harvest. The intricate network of value for suppliers, countrymen alike grew thus creating numerous entrepreneurs along the way.
The Accountant turned entrepreneur had done what few have ever imagined. He created a multibillion-pula enterprise, expanded it from Lobatse to a regional thrust with a presence at home here in Botswana, in Zimbabwe, South Africa, Zambia, Tanzania and Kenya with prospects to grow beyond.
“Growth is fine but it should not be for the sake of growth. I support the exit strategy. I believe it give the current board room to regroup and use Botswana as a springboard for future ventures in the region,” the financial expert noted.
Are there better days ahead? Having done the unthinkable -conquering the perceived African giants in the Botswana backyard. Choppies has a chance to rekindle its flame. We have heard the story too many time what we need to hear now is how best can we return to the Choppies glory days? “When we stop funding loss making entities the value will go back to the shareholder,” concludes Ram.
*Dumisani Ncube is Digital Executive at Pr Practise
Here is how one Permanent Secretary encapsulates the clear tension between democracy and bureaucracy in Botswana: “President Mokgweetsi Masisi’s Government is behaving like a state surrounded with armed forces in order to capture it or force its surrender. The situation has turned so volatile, for tomorrow is not guaranteed for us top civil servants.
These are the painful results of a personalized civil service in our view as permanent secretaries”. Although his deduction of the situation may be summed as sour grapes because he is one of the ‘victims’ of the reshuffle, he is convinced this is a perfect description of the rationale behind frequent changes and transfers characterising the current civil service.
The result of it all, he said, is that “there is too much instability at managerial and strategic levels of the civil service leading to a noticeable directionless civil service.” He continued: “Changes and transfers are inevitable in the civil service, but to a permissible scale and frequency. Think of soccer team coach who changes and transfers his entire squad every month; you know the consequences?”
The Tsunami has hit hard at critical departments and Ministries leaving a strong wave of uncertainty, many demoralised and some jobless. In traditional approaches to public administration, democracy gives the goals; and bureaucracy delivers the technical efficiency required for implementation. But the recent moves in the civil service are indicative of conflicting imperatives – the notion of separation between politicians and administrators is becoming blurred by the day.
“Look at what happened to Prisons and BDF where second in command were overlooked for outsiders, and these are the people who had sacrificially served for donkey’s years hoping for a seat at the ladder’s end. The frequency of the changes, at times affecting the same Ministry or individual also demonstrates some level of ineptitude, clumsiness and lack of foresight from those in charge,” remarked the PS who added that their view is that the transfers are not related to anything but “settling scores, creating corruption opportunities and pushing out perceived dissident and former president, Ian Khama’s alleged loyalists and most of these transfers are said to be products of intelligence detection.”
Partly blaming Khama for the mess and his unwillingness to let go, the PS dismissed Masisi for falling to the trap and failing to outgrow the destructive tiff. “Khama is here to stay and the sooner Masisi comes to terms with the fact that he (Masisi) is the state President, the better. For a President to still be making these changes and transfers signals signs of a confused man who has not yet started rolling his roadmap, if at all it was ever there. I am saying this because any roadmap comes with key players and policies,” he concluded.
The Ministry of Health and Wellness seems to be the most hard-hit by the transfers, having experienced three Permanent Secretaries changes within a year and a half. Insiders say the changes have everything to do with the Ministry being the centre of COVID-19 tenders and economic opportunities. “The buck stops with the PS and no right-thinking PS can just allow glaring corruption under his watch as an accounting officer. Technocrats are generally law abiding, the pressure comes with politically appointed leaders racing against political terms to loot,” revealed a director in the Ministry preferring anonymity.
The latest transfer of Kabelo Ebineng she says was also motivated by his firm attitude against the President’s blue-eyed Task Team boys. “The Task Team wants to own the COVID-19 pandemic and government interventions and always cry foul when the Ministry reasserts itself as mandated by law,” said the director who added that Masisi who was always caught between the crossfire decided on sacrificing Ebineng to the joy of his team as they (Task Team) were in the habit of threatening to resign citing Ebineng as the problem.
Ebineng joins the Office of the President as a deputy Coordinator (government implementation and coordination office).The incoming PS is the soft-spoken Grace Muzila, known and described by her close associates as a conformist albeit knowledgeable.
One of the losers in the grand scheme is Thato Raphaka who many had seen as the next PSP because of his experience and calm demeanour following a declaration of interest in the Southern African Development Community (SADC) Secretary post by the current PSP, Elias Magosi.
But hardly ten months into his post, Raphaka has been transferred out to the National Strategy Office in what many see as a demotion of some sort. Other notable changes coming into OP are Pearl Ramokoka formerly with the Employment, Labour and Productivity Ministry coming in as a Permanent Secretary and Kgomotso Abi as director of Public Service Reforms.
One of the ousted senior officers in the Office of the President warned that there are no signs that the changes and transfers will stop anytime soon: “If you are observant you would have long noticed that the changes don’t only affect senior officers but government decisions as well. A decision is made today and the government backtracks on it within a week. Not only that, the President says this today, and his deputy denies it the following day in Parliament,” he warned.
Some observers have blamed the turmoil in the civil service partly to lack of accountable presidential advisers or kitchen cabinet properly schooled on matters of statecraft. They point out that politicians or those peripheral to them should refrain from hampering the technical and organizational activities of public managers – or else the party (reshuffling) won’t stop.
In the view expressed by some Permanent Secretaries, Elias Magosi, has not really been himself since joining the civil service; and has cut a picture of indifference in most critical engagements; the most notable been a permanent secretaries platform which he chairs. As things stand there is need to reconcile the imperatives of democracy and democracy in Botswana. Peace will rein only when public value should stand astride the fault that runs between politicians and public managers.
Former Permanent Secretary to the President, Carter Morupisi, is fighting for survival in a matter in which the State has charged him and his wife, Pinnie Morupisi, with corruption and money laundering.
Morupisi has joined a list of prominent figures that served in the previous administration and who have been accused of corruption during their tenure in office. While others have been emerging victorious, Morupisi is yet to find that luck. The High Court recently dismissed his no case to answer application.
United States President, Joe Biden, is faced with a decision to make relating to the Covid-19 vaccine intellectual property after 175 former world leaders and Nobel laurates joined the campaign urging the US to take “urgent action” to suspend intellectual property rights for Covid-19 vaccines to help boost global inoculation rates.
According to the world leaders, doing so would allow developing countries to make their own copies of the vaccines that have been developed by pharmaceutical companies without fear of being sued for intellectual property infringements.
“A WTO waiver is a vital and necessary step to bringing an end to this pandemic. It must be combined with ensuring vaccine know-how and technology is shared openly,” the signatories, comprising more than 100 Nobel prize-winners and over 70 former world leaders, wrote in a letter to US President Joe Biden, according to Financial Times.
A measure to allow countries to temporarily override patent rights for Covid related medical products was proposed at the World Trade Organization by India and South Africa in October, and has since been backed by nearly 60 countries.
Former leaders who signed the letter included Gordon Brown, former UK Prime Minister; François Hollande, former French President; Mikhail Gorbachev, former President of the USSR; and Yves Leterme, former Belgian Prime Minister.
In their official communication, South Africa and India said: “As new diagnostics, therapeutics and vaccines for Covid-19 are developed, there are significant concerns [about] how these will be made available promptly, in sufficient quantities and at affordable prices to meet global demand.”
While developed countries have been able to secure enough vaccine to inoculate their citizens, developing countries such as Botswana are struggling to source enough to swiftly vaccine their citizens, something which world leaders believe it would work against global recovery therefore proving counter-productive.
Since the availability of vaccines, Botswana has been able to secure only 60 000 doses of vaccines, 30 000 as donation as from the Indian government, while the other 30 000 was sourced through COVAX facility. Canada, has pre-ordered vaccines in surplus and it will be able to vaccinate each of its citizens six times over. In the UK and US, it is four vaccines per person; and two each in the EU and Australia.
For vaccines produced in Europe, developing countries are forced to pay double what European countries are paying, making it more expensive for already financially struggling economies. European countries however justify the price of vaccines and that they deserve to buy them cheap since they contributed in their development.
It is evident that vaccines cannot be made available immediately to all countries worldwide with wealthy economies being the only success story in that regard, something that has been referred to as a “catastrophic moral failure”, head of the World Health Organisation (WHO), Tedros Adhanom Ghebreyesus.
The challenge facing developing countries is not only the price, but also the capacity of vaccine manufactures to be able to do so to meet global demand within a short time. The proposal for a patent waiver by India and South Africa has been rejected by developed countries, known for hosting the world leading pharmaceutical companies such US, European Union, the United Kingdom, and Switzerland.
According to the Financial Times, US business groups including pharmaceutical industry representatives, have urged Biden to resist supporting a waiver to IP rules at the WTO, arguing that the proposal led by India and South Africa was too “vague” and “broad”.
The individuals who signed the letter, including Nobel laureates in economics as well as from across the arts and sciences, warned that inequitable vaccine access would impact the global economy and prevent it from recovering.
“The world saw unprecedented development of safe and effective vaccines, in major part thanks to US public investment,” the group wrote. “We all welcome that vaccination rollout in the US and many wealthier countries is bringing hope to their citizens.”
“Yet for the majority of the world that same hope is yet to be seen. New waves of suffering are now rising across the globe. Our global economy cannot rebuild if it remains vulnerable to this virus.” The group warned that fully enforcing IP was “self-defeating for the US” as it hindered global vaccination efforts. “Given artificial global supply shortages, the US economy already risks losing $1.3tn in gross domestic product this year.”