10 Nov 2026

Business Botswana has welcomed President Duma Boko’s emphasis on productive economic transformation and greater private-sector participation, but says concerns over government insourcing, labour legislation and the ease of doing business remain unresolved.

Reacting to the State of the Nation Address (SONA) delivered during the Third Session of the 13th Parliament on Monday, Business Botswana acting chief executive officer, Mr Tsholofelo Mpaphi, said the President’s economic vision provided encouragement to the private sector, which had consistently advocated for a business-driven approach to economic transformation.

He said the reaffirmation of a private-sector-led economy was particularly important as it gave businesses confidence that they would remain key partners in government’s efforts to transform and diversify the economy.

Mr Mpaphi welcomed the emphasis on productive diversification, saying the private sector had long advocated for the development and expansion of productive sectors to strengthen the economy.

He also welcomed the institutional reform agenda, particularly the focus on improving the efficiency of state institutions, noting that some institutions, especially regulatory bodies, had created challenges for businesses.

He said Business Botswana had consistently called for the rationalisation of institutions to improve efficiency and ensure their operations did not unnecessarily constrain private-sector participation.

The organisation also looked forward to further engagement on the State-Owned Enterprises Ownership Policy and measures aimed at making utilities more competitive and supportive of economic development.

However, Mr Mpaphi said some aspects of government’s policy direction remained a source of concern, particularly the Public Service Insourcing Programme and its possible implications for businesses that had grown through government outsourcing arrangements.

President Boko told Parliament that the programme, launched on April 1, 2026, was projected to absorb approximately 9 380 Batswana into better-paying jobs, with 4 366 eligible temporary employees already absorbed into permanent positions.

While government has presented the programme as part of its commitment to decent work and employment security, Mr Mpaphi said Business Botswana was concerned about its potential impact on businesses, particularly those operating in the private security sector.

He argued that many businesses had been established and created employment opportunities through outsourcing arrangements, warning that insourcing could threaten their sustainability and the livelihoods of their employees.

“We have always felt that they are not aligned with a private-sector-led economy,” he said, calling for further engagement between government and businesses to develop a model that balanced decent work with business sustainability.

Mr Mpaphi also raised concerns about the Employment and Labour Relations Act, saying some of its requirements were onerous and did not adequately take into account the prevailing economic conditions under which businesses operated.

He said Business Botswana had participated in the consultation and negotiation processes but remained dissatisfied with certain provisions that it believed required further discussion.

He explained that some issues remained unresolved during negotiations, with the approval process proceeding despite businesses believing there was still room for further engagement.

He nevertheless welcomed the establishment of structures under the Act, saying they presented an opportunity to review the legislation and address concerns raised by stakeholders.

Mr Mpaphi said Business Botswana hoped the review process would strike a balance between decent work, workers’ rights and business sustainability.

On the ease of doing business, he said the organisation had expected more decisive attention to removing administrative bottlenecks that continued to affect business operations.

He cited business registration, licensing procedures, payment processes and visa applications within the tourism sector as areas requiring urgent intervention.

Although the President had previously acknowledged the challenges posed by red tape, Mr Mpaphi said businesses wanted clearer measures on how government intended to address the obstacles.

Meanwhile, President Boko reported that government had settled 216 050 supplier invoices valued at more than P62 billion between January and October 2026, saying the payments were intended to strengthen cash flow and protect jobs in local businesses.

Mr Mpaphi said Business Botswana appreciated the positive direction outlined in the address but believed sustained engagement and effective implementation would be essential in creating an environment where businesses could grow, remain sustainable and contribute meaningfully to employment creation and economic transformation. ENDS