14 Mar 2022

The Member of Parliament (MP) for Sefhare/Ramokgonami, Dr Kesitegile Gobotswang has asked government to introduce a mandatory Corporate Social Responsibility (CSR) law on pre-tax profits for mining companies. 

Tabling a motion to that effect on Friday, Dr Gobotswang argued that a CSR law for specified proportion of profits before tax for all extraction companies operating in Botswana would mitigate against the adverse impact of mining on communities that hosted extraction companies. 

 The legislator said communities living around mining areas were affected by poverty, adding that happened while the wealth of the country was generated in their land. 

He cited the examples of communities living around Jwaneng, Orapa, Letlhakane and Selebi-Phikwe, were mining activities were taking place. 

He said while the wealth from minerals should benefit the whole country, there should be a law geared specifically at beneficiation of communities from the mining areas. 

Dr Gobotswang said some of those communities suffered from effects of environmental degradation, soil, water and air pollution as a result of mining projects in their area. 

“We do know that some mining companies have been assisting in areas where they operate. However, their assistance come as and when they want and some of them give little compared to the profits they make,” he said. 

 The MP therefore said the law would guide how much mining companies assisted the communities, instead of relying on voluntary corporate social responsibility. 

He added that it was not enough to rely on the CSR policy. He said countries like South Africa, Ghana, Mauritius, India, Denmark, Sweden and Norway used the mandatory CSR law. 

Minister of Mineral Resources, Green Technology and Energy Security, Mr Lefoko Moagi, however said there was a law regulating social uplifting programmes to ensure that communities benefitted from companies, including those in the mining industry. 

“This is per the Economic Inclusion (EI) Act of 2021, Section 29 (4). Mining companies have been doing Corporate Social Responsibility in Botswana as purely voluntary initiative prior to the enactment of the Economic Inclusion Act of 2021,” Mr Moagi said. 

 The minister said CSR activities were now governed by the Economic Inclusion Act of 2021 and there was no reason to amend that law. 

 He further said positive impacts of mining outweighed negative impacts in communities living around mining areas. 

He added that communities benefitted from developments usually coming along with mines such as roads, hospitals, electricity and others. 

 He said the law on mandatory CSR as proposed by the motion could impact negatively on attractiveness of Botswana to investors as a mining destination. He further said it would seem as an additional tax to companies. 

 Mr Moagi therefore opposed to the motion on the basis that the existing Economic Inclusion Act of 2021 was sufficient to cater for what the motion was proposing. 

 However, Selebi Phikwe East MP, Mr Kgoberego Nkawana supported the motion. Mr Nkawana said communities living around mining areas had their land taken by the mining projects. 

He further said they were affected by any negative impacts of mining. 

He therefore said there should be a law on how they benefitted from mining activities in their area. 

Mmadinare MP, Mr Molebatsi Molebatsi and Gaborone North MP, Mr Mpho Balopi were however against the motion, saying it was repeating what the Economic Inclusion Act had covered. 

Ngami MP, Mr Caterpillar Hikuama however supported the motion, pointing that it wanted to enhance what the Economic Inclusion Act was striving for. Debate on the motion would continue on this Friday. Ends