26 Aug 2021

Minister of Investment, Trade and Industry, Mr Mmusi Kgafela presented to Parliament, the Economic Inclusion Bill that seeks to, among others, strengthen enforcement of citizen economic empowerment initiatives.

Mr Kgafela stated that the Bill was a sequel to proposals and consultations between the ministry, Business Botswana and a wide array of stakeholders and Parliament’s Finance and Economic Development Committee.

He said evaluation of the Citizen Economic Empowerment Policy in 2018 revealed that citizen empowerment initiatives remained inadequate, and that success was minimal due to lack of coordination and enforcement of existing laws across sectors.

Mr Kgafela added that following evaluation of the policy, there was increased advocacy for citizen empowerment legislation whose main aim would be to ensure economic inclusion and meaningful participation of targeted citizens in the development and growth of economy.

Among other things, the Bill provides for the establishment of the Economic Empowerment Office appointment of the coordinator as well as functions of the office.

The office will be responsible for promoting targeted citizens economic empowerment, overseeing and coordinating implementation of relevant existing economic empowerment laws, initiatives and programmes as well as ensuring an integrated, coordinated and uniform approach to economic empowerment.

The Bill further seeks to strengthen enforcement of citizen empowerment initiatives, recommend initiatives to ensure inclusion and meaningful participation of targeted citizens in the development and growth of economy.

Other parts of the Bill deal with entrenchment of Citizen Empowerment in Social and Economic Measures which will, among others, identify opportunities to own productive land and property, prohibit transfers, allotting, or issue or transfer of any portion of private sector enterprise owned and controlled by a targeted citizen to a non-citizen. 

In addition, it will facilitate increased access to economic activities, infrastructure and skills development.

The Bill also seeks to enhance global competitiveness through empowerment and partnerships besides transforming the economy to be private sector led. 

That means building capacity for private sector growth and infusing entrepreneurial culture to promote global competitiveness for targeted citizens through creation of an aggressive environment that targets global leaders in selected economic growth areas.

The Bill seeks to empower targeted citizens through promotion of production and consumption of locally made goods and services by both government and the private sector.

Debating the Bill, some MPs who supported it reasoned that the proposed law would assist to close gaps in the Citizen Economic Empowerment Policy. 

They said it would ensure meaningful participation of citizens in the country’s economy.

They also expressed hope that the coordinator would be someone of upright attributes, accountable and committed to doing things right without coercion or influence.

Legislators were upbeat that the envisaged law would consolidate activities and synchronise large, individual and small micro medium enterprises.

On the other hand, some MPs who opposed the proposed law said it fell short of addressing its primary purpose and must be withdrawn pending further consultation and constitutional review. Some argued that the Bill did not give Batswana the upper hand, particularly indigenous Batswana.

The Parliament Finance Committee expressed reservations that the Bill was discriminatory besides that it was not clear on who the targeted citizens were. 

The committee was also warry of how the Bill addressed issues of monopoly.

Responding to the debate, Mr Kgafela stated that Batswana stood to benefit a lot from the proposed law, especially those who were marginalised. The Bill passed second reading. ENDs