30 Aug 2021

Government plans to formulate a middle class strategy with the aim of creating 100 young Batswana millionaires in 10 years, Minister of Investment, Trade and Industry Mr Mmusi Kgafela has disclosed. 

Updating the nation on the ministry’s performance in Gaborone yesterday, Minister Kgafela said the strategy would empower the middle class to effectively participate in the country’s economic development through creation of globally competitive businesses. 

The strategy would present Batswana with many business opportunities, especially for those who fell within the middle class category, he said.

Such opportunities, the minister said, included development of a national franchising programme that targeted harnessing both local and international franchises as well as development of new ones. 

Mr Kgafela said the strategy would include participation in independent power production, manufacturing and installation of solar energy products covering panels, lights and heaters.

Mr Kgafela said middle class renewable energy projects would be financed and that a top entrepreneurs development fund would also be established to target fresh graduates’ start-ups and business expansions. 

To complement the strategy, Minister Kgafela explained that the ministry had also developed  an economic inclusion legislation to cover citizens who had not been able to participate meaningfully in the country’s economic growth and development.

About the adverse effects of COVID-19  on the country’s business activities, Mr Kgafela quoted a March Bank of Botswana business expectations survey as indicating that the most negatively affected businesses were in the trade, hotels, restaurants, transport and communications; finance and business services; mining and construction sectors. 

The pandemic greatly affected SMME and informal sector businesses, which normally had low to non-existent capital reserves and did not spare the creative industry thereby resulting in job losses while bars and liquor outlets faced repeated closures also leading to high income losses and layoffs, he said. 

Mr Kgafela  said the ministry was determined to rise above the COVID-19 situation and had reduced turnaround time for issuance of industrial and trade licenses. 

Business registration certificate was now issued within a day, a development which he said had greatly aided customers as they now started operating within 30 days of being registered. 

The minister also said an e-commerce strategy seeking to facilitate businesses and consumers to transact online had been completed. 

In addition, the ministry was in the process of developing a national e-commerce portal and legal framework to facilitate people to do transactions from the comfort of their homes and reduce the spread of COVID-19, Mr Kgafela said. 

On the suspension of the sale and consumption of alcohol,  he said government was aware of the dire impact of the decision on the liquor industry, employees and families that were financially dependent on it. 

He said government could not underrate the impact of the suspension as it did not only affect businesses but the livelihood of employees as well as economic resuscitation and growth. 

“We should, however, appreciate that life comes before everything else,” he said.

 Government, he stated, had prioritised saving lives therefore it was imperative to curtail activities with the potential to exacerbate the already devastating situation of COVID-19.ends