02 Feb 2015

Government has adopted the Privatisation Policy of 2000 as part of the strategy to improve the efficiency of the public sector.

The Minister of Finance and Development Planning, Mr Kenneth Matambo told Parliament when delivering the 2015/16 budget speech today (February 2) that privatization included outright sale of public assets and outsourcing the non-core public services.

With regards to Botswana Telecommunications Corporation Limited (BTCL), he said privatisation process was at an advanced stage with expected Initial Public Offering (IPO) in the first half of 2015.

He said IPO process would ensure that shares were offered to citizens, which should empower them through the dividend payments as they become part owners of an important national asset.

The Minister further said the privatisation of National Development Bank (NDB) into a commercial bank was in progress with commencement of the transition Act in June 2014.

Mr Matambo said as it was the case with BTCL, government would retain 51 per cent of NDB shares. Of the remaining 49 per cent, 30 per cent will be offered to citizens only, five per cent allotted to citizen employees of NDB through an employee share ownership plan, and 14 per cent offered to both citizens and non-citizens.

He said government also continued to outsource non-core public services to private sector companies, as part of the Public Services Outsourcing Programme.

The Public Enterprises Evaluation and Privatisation Agency (PEEPA) in collaboration with Botswana Public Service College, he said,  are supporting ministries in implementing the outsourcing programme.

He said the two institutions have developed training programmes to build contract management capacity within government.

Mr Matambo further told Parliament that the Rationalisation Strategy adopted in 2009 resulted in merging of various parastatal organisations and the establishment of new entities such as the Botswana Investment and Trade Centre (BITC), Botswana Institute of Technology Research and Innovation (BITRI), Botswana Qualifications Authority and Botswana Human Resource Development Council (HRDC), to mention, but a few.

Minister Matambo said the main objective of the strategy was to align service delivery mechanisms of government by coordinating and harmonizing the use of resources.

“This is expected to result in operational synergy, cost savings, and promotion of efficiency in the economy,” he said. ENDS