16 Sep 2022

Transfer  of SPEDU functions to Botswana Investment and Trade Centre (BITC) will be delivered in a transparent and smooth manner following government’s decision to rationalise government ministries and state owned Enterprises.

Addressing Selebi Phikwe leadership on the ongoing Rationalisation Exercise at Selebi Phikwe on Wednesday, Minister of Trade and Industry Mr Mmusi Kgafela said rationalisation brought about change, as such some functions may be affected due to the merge.

He said it was in government’s interest to ensure minimum disruptions therefore, parastatals and public entities were expected to continue to deliver on their mandate during the rationalisation period until the whole exercise was completed.

He assured the affected parastatals, key stakeholders and the public of his ministry’s support and noted that “due diligence is being followed to ensure that as much as possible, the process is smooth, seamless and transparent and completed within the shortest time possible.”

Mr Kgafela explained that people in the SPEDU region should not feel this transition and should continue getting the services they used to get, adding “if anything they should get improved service, not a regression of what they used to get.”

He further explained that rationalising parastatals and public entities would improve service delivery by creating one-stop service centres where the public could get turnkey services, adding that this benefit would come with the added benefit of cost reduction as a potential secondary benefit.

Rationalisation, he said would also establish a more integrated and broad-based service delivery system and enable agencies of government to complement one another with the resultant coherence enabling these entities to truly drive government initiatives of restructuring and reforming the economy and promoting greater private sector development.

He added that another key goal of rationalisation was to promote efficient use of economic resources by eliminating duplications.

Furthermore Mr Kgafela explained that his ministry set up a project governance structure comprised of Ministry of Trade and Industry, Ministry of Environment and Tourism, Public Enterprises Evaluation Privatisation Agency (PEEPA) and Directorate of Public Service Management.

Consequently, he said a Project Board and Working Team were established in July 2022 to ensure achievement of the intended exercise, adding that the Project Board was set up primarily to provide overall oversight of the project including reviewing and approval of deliverables, project scope management and timing and also providing strategic leadership.

The project Board comprised the Permanent Secretary of trade and industry ministry, who also chaired the Project Board, Permanent Secretary of MET, Deputy Permanent Secretary-Natural Resources from MET, DPS-MTI and the Chief Executive Officer of PEEPA.

He explained that PEEPA’s main responsibility was to provide support and guidance during the rationalisation process, adding that PEEPA had been supporting the two ministries from the beginning of consultations with CEO’s of the affected parastatals (BITC, SEZA, SPEDU and BTO) were undertaken.

For her part, Permanent Secretary for trade and industry ministry, Ms Malebogo Morakaladi added that the merger between SPEDU and BITC was supposed to be delivered in six months from April.

He said it had been five months since the decision was taken but the exercise had not been completed yet, adding that her ministry was compelled to ask for an extension to deliver the project as desired.

In addition she urged the SPEDU board and employees to continue delivering their services in the meantime the ministry was working on the rationalisation exercise.

“As MTI we have the responsibility to deliver services to both domestic investors and foreign investors. All the policies and SPEDU investment incentives are still there. Part of the reason for rationalisation is to ensure that these services are provided in the most efficient manner,” she said.

She urged all the affected parastatals and MTI to work together to deliver this project in an efficient manner.

However, Kgosi Ishamael Legwaila of Botshabelo ward expressed his displeasure with the whole exercise saying that SPEDU was direct and based in Selebi Phikwe hence was able to facilitate projects efficiently.

He added that SPEDU only needed to be given the added responsibility to finance projects for it to grow.

The same sentiments were shared by MP for Selebi Phikwe East Mr Kgoberego Nkawana who explained that SPEDU’s efforts to revitalise Selebi Phikwe’s  economy were yielding positive results.

He equated SPEDU to a deformed child who needed to be empowered so as to deliver SPEDU projects efficiently.

Mr Nkawana also complained that the SPEDU board members did not come from the SPEDU region yet the region had a wealth of experienced people.

The rationalization exercise also includes among others, restructuring of Botswana Development Corporation to provide loan financing to non-agricultural sectors based on approved lending thresholds within three months and  Merge BITC, Special Economic Zones Authority and BTO within a period of two years. ENDS