13 Mar 2024

Parliament has approved Ministry of Trade and Industry’s 2024/25 budget proposals of over P1.3 billion.

Of the amount, over P6.1 million has been requested to finance recurrent budget while over P704 million is for development budget.

Minister of Trade and Industry, Mr Mmusi Kgafela said the largest share of the development budget of P563.2 million would be used towards initiatives under Ease of Doing Business to cater for the development of Transactional Advisory Services for Special Economic Zones.

“Other projects include the African Continental Free Trade Area (AfCFTA) consultancy driving for quality at P50 million and e-commerce strategy at P1 million. The accreditation laboratories and accreditation on new standards and Trade and Industry Economic Research and Policy Reforms have also been budgeted for P3 million each.”

Other development budget proposals according to Mr Kgafela included the upgrading of Ministry of Trade and Industry’s management information system at P8 milliom and Digital Business Transformation-IP Model Office at P4 million.

He said the ministry’s ongoing infrastructure projects were construction of Sir Seretse Khama International Airport investor shells at an estimated budget of P110 million as well as the new grain drier at Pandamatenga silos at an estimated cost of over P22.7 million.

Also, he said the ministry’s recurrent budget proposals included ministry’s state owned enterprises at the sum of P410.4 million while ministry’s five departments had been budgeted for over P196.7 million.

Mr Kgafela said of the ministry’s departments’ budget, P115.4 million goes towards personnel emoluments while P81.3 million was budgeted for operational charges.

When responding to legislators’ debates on the budget proposals, Mr Kgafela said he was concerned about fronting for foreigners by some Batswana for businesses reserved for citizens.

He said most Batswana had been compelled to become subordinate partners in businesses such as brick moulding, confectionaries and dressmaking.

The minister appealed to legislators to speak to their electorates about fronting issues as they denied citizens to be empowered.

“Let us fight this fronting. It is not good for our economy,” he said.

Mr Kgafela said councils were inundated with these fronting deals, as they were ones issuing licenses to business community.

“I encourage all of us to nip them in the bud before these companies employ more people,” he said

Mr Kgafela also said he acknowledged all concerns brought forward by legislators about the Fengyue glass project and the Milk Africa project that continued to be a reference point for failed projects. He promised that he would dissect issues regarding Fengyue thoroughly.

Regarding comments on the rationale used for implementing the Economic Inclusion Act, he said the law was a deliberate move to promote participation of Batswana in their economy.

In that regard, he said while waiting for some regulations regarding the law, policies of the act should be used for implementation.

“Those that have businesses and want to implement the act should take cue from those that have already started implementing the law,” he said. ENDs