23 Feb 2023

Government should introduce measures that restrict vertical business integration by certain established chain store franchises.

Debating budget proposals for the 2023/24 financial year on Wednesday, Assistant Minister for State President, who is also Gaborone South MP, Mr Dumezweni Mthimkhulu explained vertical integration as a business model in which an entity controlled multiple stages of its production processes and supply chains.

Such business model, he said, worked against government’s efforts to promote a conducive business climate as a prerequisite for achieving inclusive economic diversification, sustainable growth and employment creation.

“It is of concern that government’s approach towards development of linkages between different stages in the production of goods and services with the aim of creating jobs and improving livelihoods, will be a wild goose chase if businesses continue with the monopoly of creating goods internally,” Mr Mthimkhulu cautioned.

Though in support of the 2023/2024 budget proposals to create 35 000 jobs by the 2024/2025 financial year, Mr Mthimkhulu noted that the target would be unattainable if government did not enforce laws that protected local producers.

“Realisation of the intended value chain approach should be accompanied by full enforcement of the Economic Inclusion Act concurrently with the Competition Act,” he said.

Mr Mthimkhulu pleaded with government to remove any trade and investment impediments between local producers and chain stores in order to attain the proposed business reforms in the 2023/2024 budget proposals.

Contributing to the debate, Mochudi West MP, also Minister of Trade, Mr Mmusi Kgafela called for the construction of a new hospital in Mochudi under the 2023-2025 Transitional National Development Plan (TNDP).

The hospital, he said, would relieve the dilapidated Deborah Retief Memorial Hospital which he noted was also not easily accessible due to its hilltop location.

He endorsed government’s commitment to deliver quality healthcare services to Batswana, by developing and implementing various preventative and curative programmes and improved service delivery.

“Residents of Mochudi West continue to plead with government to build a hospital in Mochudi to responds to their needs as the Deborah Retief Memorial Hospital is not easily accessible to the elderly and people with disabilities because it is located on a hilltop,” he said.

He said construction of a new hospital in Mochudi was long overdue as it was included in previous national development plans.

He added that he was hopeful that the new Mochudi hospital would be included in the P12.73 billion proposed for the development budget.

In his contribution, Ghanzi South legislator, Mr Motsamai Motsamai requested government to transform Ghanzi region into a beef producing zone.

“Government should, through one of the reforms under Special Economic Zone (SEZ), strive to transform the Ghanzi region into a livestock producing hub given its cattle population,” he said.

Mr Motsamai said Ghanzi region was renowned for beef production hence transforming it into a beef producing zone would be an advantage to both farmers and the country’s beef industry.

He also pleaded with government to create a conducive environment for economic growth through provision of adequate infrastructure and better connectivity to farms to enhance productivity and efficiency.

“Infrastructure plays a key role in facilitating trade, as the road network, air transport, railways and logistics will result in increased trade flows that will yield positive economic growth,” he said.

He further criticised government for failing to connect part of his constituency to the telecommunications network as was the case in Bere and Kcaxae settlements.

Kanye South MP and Minister of Foreign Affairs, Dr Lemogang Kwape appreciated the 2023/2024 budget proposal, saying it was drafted with the interest of all Batswana at heart.

“It is worth highlighting that the budget, if well implemented, will deliver broad-based transformation, create new wealth prospects and expand horizons for economic opportunities for all Batswana through a growth model that leaves no one behind,” he said.

Dr Kwape applauded the proposed construction of the Kanye stadium and the Kanye water master plan, adding that he was hopeful that local contractors awarded such projects would be patriotic in implementing them.

He said policies and projects implementers should stay committed to the cause of moving the country forward in order for the budget to produce tangible results and stay relevant to the current economic needs.

Conversely, he said he was disappointed that funds were at times returned back to government coffers during financial year ends due to lack of project implementations from the personnel. Therefore, he pleaded with the country’s workforce to be productive and timely in delivering services and project management. ENDs