08 Mar 2022

Kanye North MP, Mr Thapelo Letsholo has challenged the Ministry of Investment, Trade and Industry to develop strategies geared towards addressing trade imbalance between imports and exports.

Debating the ministry’s proposed budget estimates for the 2022/2023 financial year on Monday, Mr Letsholo argued that it was not good to continue running the economy with negative trade balances.

In his presentation of the budget estimates last week, investment, trade and industry minister, Mr Mmusi Kgafela had indicated that Botswana’s import bill was higher that the export bill. Mr Kgafela said the Statistics Botswana report of November 2021 indicated a negative trade balance of about P2.4 million.

It was on such backdrop that Mr Letsholo asked the ministry to promote exports growth. He said the fact that diamonds were still dominating the exports was an indication that the exports were still not diversified.

“We need to know what the ministry is planning on promoting and growing exports. How they intend to go about it and when we should expect to see the results,” he said.

Regarding state owned enterprises the legislator called on the ministry to consolidate them as advised a long time back.

“There have been proposals to merge Citizen Entrepreneurial Development Agency (CEDA) and Local Enterprise Authority (LEA), to merge Botswana Investment and Trade Centre (BITC), Selebi-Phikwe Economic Diversification Unit (SPEDU) and Special Economic Zones Authority (SEZA), and also to progress Botswana Development Corporation (BDC) into a true Botswana investment holding company,” he said.

He further expressed concern about state owned enterprises under the ministry still being dependent on government subventions while there had been proposals to commercialise many of them. Citing CEDA as an example, he said the agency was expected to be self-sufficient after 10 years of operation, but still depended on government money after 21 years.

“The ministry must table a clear plan for the consolidation and self-sufficiency for its state owned enterprises,” he said.

He further urged the ministry to come up with coordinated strategies of employment creation. He suggested the setting up of a multi-disciplinary team comprising the private sector to strategise, coordinate, facilitate, monitor and report on job creation.

Selebi Phikwe East MP, Mr Kgoberego Nkawana said the ministry should have a deliberate plan to make land available for investors. Mr Nkawana said businesses currently struggled to get commercial land.

Gaborone North MP, Mr Mpho Balopi urged government to make more effort to facilitate more participation of local businesses in economic development. Mr Balopi said the economy would develop and create more jobs through more participation of Batswana in the business environment.

Mmadinare MP, Mr Molebatsi Molebatsi applauded the ministry for promising to enact the Economic Inclusion Act of 2021 next month. He said the act had potential to develop Batswana if implemented well. He also asked for quicker implementation of the Growing Middle Class Strategy.

Mahalapye West MP, Mr David Tshere asked the ministry to improve service provision in the Mahalapye sub-district. Mr Tshere said Mahalapye residents travelled long distances to access business development support services in Palapye. He therefore asked for CEDA, LEA, BDC and CIPA offices to be availed in Mahalapye sub-district.

Responding to concerns raised by MPs, Mr Kgafela said government was equally concerned by the negative balance of trade. He said government was aiming to reduce and ultimately reverse it.

Concerning CEDA, he said the agency was non-profit making and aimed at assisting start-up ventures. He therefore said it was never planned to become self-sustainable after 10 years. He said the agency was however partially sustainable.

Parliament however approved the ministry’s budget estimates of over P1.065 billion for the 2022/2023 financial year, comprising over P951 million and about P113 million for recurrent and development expenditure respectively. Ends