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Private sector pours scorn on ‘draconian’ SoE

Gobusamang Keebine

The reality of an economy going on its knees came last week with the release of Gross Domestic Product (GDP) for the second quarter of 2020 with a decrease of 27 percent. While government expects the economy to shrink by 8.9 percent this year, commercial Rand Merchant Bank maintains an expectation of 10.5 percent contraction in growth in 2020.

All industries in the domestic economy contracted, save for General Government which became the major contributor to GDP for the first time in many years by 19.7 percent. When the domestic economy was hit, “due to the impact of measures that were put in place to combat the spread of the COVID-19 pandemic,” all industries fell except Government, Agriculture and government owned utilities; Water & Electricity.

According to Statistics Botswana, Botswana Government business survived a huge contraction because it “instigated robust fiscal policy responses in order to influence macroeconomic conditions.” There was also aggregation of demand of goods and services, employment, inflation and economic growth. This was done despite contributing to deficits or drawing down of budget surpluses. Government also created new Covid-19 focused employment in the Public Administration sector in order to adhere to the disease protocols like recruitment of teachers, Safety and Health Employees (SHE) and other temporary employees across Ministries.

Most private sector players felt the scourge of Covid-19 especially in Mining and Quarrying where there was a decrease in the real value added of Mining by 60.2 percent which was mainly influenced by Diamond and Coal real value added. There are many private companies in the coal and mining business which are losing value, some are listed in the local stock exchange. Diamond production in carats went down by 67.0 percent while Coal production in tonnes decreased by 40.7 percent.

Companies in the industry of Trade, Hotels and Restaurants felt it when its real value added went down by 40.3 percent in the second quarter of 2020 compared to an increase of 5.1 percent registered in the same quarter of the previous year.  The Manufacturing industry recorded a decline of 31.3 percent in real value added during the second quarter of 2020, compared to a growth of 3.5 percent registered in the corresponding quarter of 2019 and this sharp reduction is attributed to a massive decline in the sub-industries of Beverages and Other Manufacturing. These sub-industries include diamonds processing by 58.5 percent and the production of beverages (chibuku and beers) which declined drastically by 84.2 percent due to lockdown during the quarter under review.

It was tools down in the construction industry with all that was coming with the Covid-19 containment measures and lockdowns, the industry recorded a decline of 36.0 percent. The Finance and Business Services industry was also not spared and registered a negative growth of 11.9 percent due to the decline in the real value added of Business Services and Real Estate by 24.4 and 17.8 percent respectively.

All the firms in the transport business also suffered, the Transport and Communications value added decreased by 16.9 percent in the second quarter of 2020,compared to 5.4 percent recorded in the same quarter of the previous year. This steep decline was most significant in the sub-industries, and was attributed to the lockdown measures that restricted movement of passengers and permitted limited goods freight traffic.

Last week when parliament moved to extend the State of Emergency (SoE) for a further six months, the private sector took a firm stance against SoE before exposing its negative implications on the local economy.  In a statement released this week, Business Botswana leader of the private sector, stopped short of calling SoE a draconian anti-progressive law which will weigh heavily on the already feeble economy.

According to Business Botswana, such an extension would, without a doubt cause further damage to an economy that is already on its knees.  In the 2020/21 – 2022/2023 Economic Recovery and Transformation Plan (ERTP) much more emphasis, at least on the document, was on jumpstarting the economy by igniting the private sector.  But many critics are already sceptical on the ERTP implementation, in the specified time frame. Some economists believe implementation of ERTP will further open the economy.

According to a report seen by this publication, government is expected to publish ERTP in 4Q:2020. But the implementation of ERTP is expected to begin in 2021. “With its success relying heavily on prudent project management by government,” says the report.
In the ERTP BusinessPost made a scientific observation that words “sector,” “informal” and “private” were the most used, meaning the mentioned were in the minds of those who made the fiscal plan. But this is not a reflection of what is on the ground, with many companies crying for rescue.

Meanwhile the Business Expectation Survey done during this country’s first lockdown stated that the businesses are ‘credit-shy.’  Also, companies are failing to hold on to jobs, they hanging onto these jobs because they are forced to by SoE laws despite the stinging financial implication from Covid-19.  Already more than 400 local companies have officialised an intent to purge jobs at the Commissioner of Labour according to information received by this publication last month.

“Several instruments were put in place to support businesses but a number of these are not in place and for those that are, it is impossible to access them; the question therefore is what is government going to do in the next 6 months different from the previous 6 months?” said Business Botswana president Gobusamang Keebine. Business Botswana President said the Covid-19 pandemic has caused a lot of damage to the economy as businesses are currently operating at bare minimum.

He said that while most companies have folded others are continuing by way of liquidations to avoid the extended debt the SoE places on these companies.  “Most employees, though not retrenched as it would be contrary to the SoE are home without pay; any further disturbance to the business environment will kill enterprises and they are certainly going to find it difficult to start all over again,” said Keebine.

Keebine said it is best to deal with the results of lifting the SoE than to postpone these where there will be even greater negative consequences. He said unemployment is going to reach peak levels, crime is going to dramatically increase and social ills are going to increase when people lose their properties. Business Botswana advised that rather government should have used the Public Health Emergency (PHE) Act, which is a tool which can achieve the same objective as SoE but without exposing the economy to very stringent restrictions as it is the case now.

“Using the (PHE) tool will relief Government of the need to lay out a lot of money to mitigate loses arising from businesses having to close temporarily due to lockdowns, etc.; money that the economy and Government does not have. Government must be bold and open the economy now and rescue whatever remains and can be rescued than to extend that action by another 6 months,” said Keebine.

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BOMU, DBS roadshow partners in crime

18th March 2024

The Department of Broadcasting Services (DBS) roadshow has found and trusted the Botswana Musicians Union (BOMU) as a companion it could trust in empowering and facilitating the creative sector, in particular, performing artists and musicians.

BOMU exits to ensure that musicians in Botswana are supported by all platforms and services that are aligned to what they do, which at most times is the production of music.

In 2023, the Union put together grand music awards prized at a whooping P3 million. Indeed, the man working behind the awards, Seabelo Modibe of Total Music Group understood the assignment. For the very first time, BOMU awards left an impressive mark, leaving people murmuring.

With that said and done, BOMU became a very important stakeholder in the on-going DBS roadshow. The relationship started in 2022 when the project was initiated. In this massive project, BOMU plays a role of mobilizing and registering new artists.

In the previous years, the Union has been clouded by dispute and back-and-forth. It was accused of being bungling, purposeless and served no interests of its members (artists). Following the effective execution of the eleventh music awards, artists progressively joined BOMU and the DBS roadshow added cherry on top.

Some of the artists who made it to the Top 30 of the DBS roadshows much-admired the platform, saying it played a major part in changing their lives. Some of them started getting booked, changed their mindsets and consider music as a business entity.

These are some of the few nuggets of wisdom they raked from the man behind the roadshow, Thato Sikwane. He is known as DJ Fresh in the music sector and his company, Big Dawg Productions is the brainchild behind the DBS roadshow.

Matter of fact, DJ Fresh and Modibe worked on this concept together with an aim of unearthing new talent in as much as music is concerned. In order to achieve this goal, the duo had to engage BOMU to allow for the artists to have a body that governs them.

When speaking in an interview with WeekendLife, BOMU Secretary General Rasina Rasina said the roadshow is actually a blessing in disguise, as it was initially considered a tall show.

“This is a much-needed platform for a sector that has been deteriorating over the years. We believe it is here to resurrect the music industry. The DBS roadshow cultivate talent from scratch and nurtures it. This will help us as a Union to have a solid foundation and as BOMU, as we are highly appreciative.”

Rasina said BOMU is very much aware of Season One challenges, adding that they too experienced them. “As BOMU, we therefore appreciate that it was the beginning. Naturally, beginnings have challenges but we are optimistic that everything will be in order as together as a team, we can work to solve all pressing matters that delay the progress of artists in Botswana.”

Successful artists during the DBS roadshow will reap from what they sow. BOMU has been allocated a budget to help artists access the roadshow. Rasina has however refused to divulge the total amount but specified that they ensure artist participation and mobilization, as well as feeding.

“We have learnt from past challenges. We do not pay artists but we assist them with transportation funds to mobilize them to attend the roadshow and showcase. What we offer them is not payment. We ensure their participation, transport mobilization and feeding. They compete, showcase and get the platform they need. We partner with them to deliver a product. Essentially, there is a car, a record deal, airtime deal and cohesion.”

Thus far and during the Season 2 roadshow, BOMU has registered an average of five hundred (500) members. In the process, it has managed to rebuild an average of ten BOMU District chapters nationwide.

Rasina commended the government for coming up with a project that caters for the welfare of artists and creative minds in Botswana.

“Our expectations from the next season is that it will be bigger and better. We appreciate the contribution of DBS and the recent focus towards the creative industry by government. Importantly, it is important to note that the creative industry should never be treated from a blanket approach view. Every region, district, village or town has its own talent. The heritage of Botswana is defined by the creative industry talent.”

 

 

 

 

 

 

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Report links child poverty to disability

12th March 2024

Child poverty is a pressing issue that affects millions of children around the world, and the link between child poverty and disability is a particularly concerning aspect of this problem. The recent research paper published by the Botswana Institute for Development Policy Analysis (BIDPA) sheds light on the stark reality that children with disabilities are more likely to be living in poverty compared to their non-disabled peers.

The findings of the research paper reveal that children with disabilities face higher levels of deprivation in basic capabilities such as education and health. This means that they are often excluded from essential services and opportunities that are necessary for their well-being and development. The wider gap in education outcomes between children with disabilities and their non-disabled peers highlights the systemic barriers that prevent children with disabilities from accessing quality education.

Moreover, the higher rates of deprivation in health and food security among children with disabilities further exacerbate their vulnerability to illness and malnutrition. This not only impacts their physical well-being but also hinders their overall development and potential. The research paper also highlights the economic disparities faced by children with disabilities, indicating that they are more likely to experience poverty across demographic and economic variables.

The implications of these findings are profound and call for urgent action to address the inequalities faced by children with disabilities. Affirmative action is needed to ensure that policies and interventions are specifically targeted towards addressing the unique needs of children with disabilities. It is crucial to prioritize the inclusion and empowerment of children with disabilities in all aspects of society to ensure that they have equal opportunities to thrive and succeed.

In conclusion, the link between child poverty and disability is a critical issue that requires immediate attention and action. It is essential for policymakers, stakeholders, and communities to come together to create a more inclusive and equitable society where all children, regardless of their abilities, have the opportunity to reach their full potential. By addressing the root causes of poverty and discrimination faced by children with disabilities, we can work towards building a more just and compassionate world for all.

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Botswana’s internet rated the second fastest in Africa

8th March 2024

Botswana continues to make significant strides in its digital trasnformation aspirations, as it secures its position among the top-ranking African countries for mobile internet speed. Based on statistics from the Speedtest Global Index, Botswana has been rated the second fastest mobile internet speed in the continent, with an impressive 43.79Mbps, according to a recent study by Business Insider Africa.

This accomplishment demonstrates Botswana’s dedication to improving the quality of broadband internet in the country; and re-affirms its position as a leader in Africa’s telecommunications and ICT services. “The acknowledgment of Botswana’s internet as the 2nd fastest in Africa reflects our commitment to cultivating a digitally inclusive society,” remarked Mr. Keabetswe Segole, Acting CEO of Botswana Fibre Networks (BoFiNet). “This achievement highlights our ongoing endeavors to enable all citizens to participate in the digital economy.” BoFiNet, the leading provider of telecommunications infrastructure in Botswana, has been instrumental in shaping the nation’s digital landscape.

Reflecting on BoFiNet’s contribution to Botswana’s digital connectivity, the Acting CEO stated:”BoFiNet takes pride in its role in securing Botswana’s position as the 2nd fastest country in Africa for mobile internet. Our robust fibre optic and microwave network has been pivotal in delivering high-speed connectivity to both urban and rural areas, ensuring access to reliable internet services for all citizens. We remain committed to fostering innovation and digital inclusion, thereby paving the way for a prosperous digital future in Botswana.” Through the recently launched SmartBots Village Connectivity project, 1,138 premises across 144 villages in different Botswana districts are able to connect to this fast internet.

Botswana’s population is utilising connectivity creatively as a result of a boom in mobile penetration, which is advancing the nation’s digitalisation. Rapid advancements in mobile high-speed internet are causing a digital revolution in Africa, bringing about changes in areas including the economy, education, healthcare, and empowerment.

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