24 Apr 2019

Ministry of Investment, Trade and Industry recently held a consultative meeting with the Francistown business community to exchange information regarding the upcoming Trade Bill 2019.

Trade and Consumer Affairs deputy director, Ms Kemmonye Keitsile said the meeting aimed to solicit input which could be of benefit from business owners in preparation of the bill.

The review of the Trade Act aimed to improve the ease of doing business in Botswana in line with Doing Business Reforms Roadmap, she explained.

Ms Keitsile noted that the ‘Trade Bill 2019 seeks to re-enact with amendments, the Trade Act 2003 (CAP 43:02).’

She said their road map advocated for efficiency and effectiveness of government processes to facilitate investors, thereby reducing the cost and time of doing business in the country.

Consequently, she added that the approved roadmap included three key reforms that have a bearing on the current Trade Act which include limiting the number of licenses by moving from positive to negative listing approaches, abolishing Ex-Ante inspection of premises for trades that do not pose a threat to public health and safety.

She added that inspections would be performed on a risk based system.

She also mentioned that they wanted to also move from Ex-Ante licensing for trades that ‘do not have immediate health and safety concerns to Ex-Post-Checks.’

Ms Keitsile explained the salient points of the trade bill such as the establishments of a Licensing and Registration Committee which replaces the Trade Licensing Committee.

This clause, the deputy director noted, would give the committee powers to register any other trade within a council area and enable the committees to comprehensively supervise and monitor trades and businesses carried out in their respective areas.

She further explained that regrading proceedings of Licensing and Registration committees, the only difference was the registration of trades without immediate health and safety concerns, adding that registered trades would have to be registered with CIPA and would need to register with respective local authorities within 30 days.

Ms Keitsile explained that “Only trades or businesses listed under Clause 16 and of course those declared by the minister in accordance with Clause 17 will be licensed.”

She also elaborated that the Bill recognises the businesses with health and safety concerns to be licensed such as fresh produce, restaurant, take away, funeral parlour, gymnasium, pharmacy or chemist, fuel station amongst others.

Certain trades or businesses, Ms Keitsile explained, would continue to be reserved for citizens.

However, she said that joint ventures with shareholding of at least 51 per cent shares for citizen and not more than 49 per cent shares for non-citizens would be allowed to venture into reserved business activity.

The Trade Bill also proposes new provisions on supervisions and enforcements.

Ms Keitsile also stated that the core mandate of the ministry was to create a conductive environment for the development of sustainable industries and trade with a view to diversifying and growing the economy, in order to create wealth and employment.

Therefore, she assured those who attended the meeting that they would continue to improve the ease of doing business in Botswana.
 

Ms Keitsile said they initiated the Doing Business Reforms Roadmap through the assistance of the World Bank in 2013, which was then approved by cabinet in 2014.

The ministry, together with Attorney Generals, she highlighted had been working on the review of the law since 2015 and the bill was produced in March this year.

Ms Keitsile explained that an improved doing business climate would not only improve Botswana’s ranking in the Global Competitiveness and Ease of Doing Business Index but would also support the drive to diversify the economy from diamonds to other sectors and value chains.

She urged the participants to study the bill and deliver feedback to the Francistown City Council.
 

One business owner, Mr Mohamed Ebrahim said he was very concerned about the fines mentioned in the Bill.

“If the fines are high, it is going to cause problems, the higher the fines you are opening the door for corruption,” he said.

He however urged the ministry to re-visit the fines. ENDS