15 Dec 2019

Parliament has passed a motion calling for reservation of government and state owned enterprises tenders to 100 per cent citizen-owned enterprises.

The motion that was tabled by MP for Kanye North, Mr Thapelo Letsholo wanted government and state-owned enterprises tenders up to the value of P10 million  to be reserved for 100 per cent Batswana citizen-owned Small, Medium and Micro Enterprises (SMMEs) with a maximum annual turnover of P10 million.

When arguing for the motion, he said Batswana should have access to opportunities as the country aspired for inclusive economic growth.

Mr Letsholo said it was important that SMMES be nurtured in order to aid their growth by ensuring that they got the necessary exposure and experience to become sustainable contributors to the nation’s economy.

He said it was vital for legislators to play a leadership role in creating investor and consumer confidence, adding that government and state-owned enterprises should have confidence in SMMEs business.

Thus, he said it was important for government to fund SMMEs, train them and give them access to jobs and markets that would enable them to grow.

“Training, mentorship and advisory are of course important, but there is a need for a re-configuration of the platforms afforded to SMMEs and start-ups. We need to go beyond training, to create a complete system that offers funding, cash flow support, fair business opportunities, and paying on time,” he stated.

He argued that SMME space was dominated by the youth, retrenched professionals and unemployed young graduates who were encouraged to seek funding from entities like Citizen Entrepreneurial Development Agency (CEDA) without experience in the business.

Thus, he said this pool of less experienced aspiring business people required protection and support in order to gain confidence and growth.

“This motion is therefore about fair and equitable access to opportunities, for the Batswana mentioned above, in a country they call home.

This motion is about enabling these Batswana access to opportunities, as Botswana continues to drive towards inclusive economic growth,” he said.

He also argued that reserving the tenders 100 per cent to citizen-owned SMMEs would enable fresh thinking and the agility that come with the start-up mind, and more importantly allow young men and women to imagine the world differently with a lot of possibilities.

“This is what real citizen economic empowerment is about, where citizens feel free and trust that despite the newness of their enterprise or the smallness of their business, they are given an authentic and tangible opportunity to play a meaningful role in the economy of their beloved country,” he stated.

When supporting the motion, specially elected MP, Dr Unity Dow said the motion came at an opportune time as it created room for the creation of jobs.

She said the motion should not bind Batswana not to collaborate with foreigners, arguing that partnerships were ideal for complementing skills.

Francistown East MP, Mr Buti Billy said the motion was good for youth who usually run short of startup capital.

MP for Gaborone North, Mr Mpho Balopi said it was important for SMMes to take part in the economic activities of their country.

He said more SMMEs would create a thriving economy.

MP for Molepolole North Mr Oabile Regoeng said SMMES were the mainstay of every economy hence if such tenders were given to Batswana, it would create employment opportunities.

He advised government to speed up the process of paying because most businesses were failed by late payments as mostly the money used was revolving for business operation.

MP for Ghanzi North MP, Mr John Thiite said economic transformation was about widening the scope for SMMEs so that many Batswana could participate and benefit in their economy, which he said was currently in the hands of foreigners

Mr Thiite said the government should even increase the bar for SMMES because some of the industries were capital intensive such as mining.

He also said there should be binding policies with regards to procurement.

Palapye MP, Mr Onneetse Ramogapi suggested that the money be increased from P10 million to P50 million.

He argued that categorisation of tenders was disadvantaged Batswana, hence the ceiling should be raised.

He also argued that the mobilisation of businesses was capitally intensive.

Mr Fidelis Molao of Shashe West said the motion was supported by BDP manifesto which advocated for advancing together towards a more inclusive economy.

He said SMMEs were important because they created meaningful jobs than big companies.

He said SMMEs supported local communities at various localities because the rewards were qualitative when money was spent on local stores.

He further argued that it was about time Batswana reclaimed their stake in their economy.

“We should force our enterprises and we will ensure that our people are sustained,” he said.

Mahalapye West MP, Mr David Tshere who also supported the motion said it was long overdue.

He, however, expressed reservations with the definition of 100 per cent citizen.

Serowe West MP, Mr Tshekedi Khama said the motion had good intentions but noted that there was a challenge of implementation on government’s part. Ends