Local firms through their representative body Business Botswana have issued a stern rebuke to the government over the deteriorating state of the economy accusing authorities of sidelining the private sector in critical policy decisions.
In a policy position paper, the country’s apex private sector body expressed deep concern over recent economic policy pronouncements and reforms, which it says have been rolled out without proper consultation.
“Business Botswana remains deeply concerned about the current state of the economy and the recent policy pronouncements and reforms implemented without adequate consultation with the private sector,” the organisation said.
Business Botswana indicated that meaningful stakeholder engagement is critical to ensure that policy decisions are informed by balanced risk assessments and aligned with the realities faced by businesses.
It argues that several recent policy shifts have had far-reaching implications for the business environment.
They include among others adjustments to exchange rate policy parameters aimed at supporting economic growth, preserving foreign exchange reserves, and enhancing the international competitiveness of locally produced goods and services, suspension of Government Purchase Order (GPO) generation through the Government Accounting and Budgeting System (GABS), amendments to the Employment and Labour Relations Law, electricity tariff adjustments introduced by the Botswana Energy Regulatory Authority (BERA) and Restrictions on cement importation; and Increased rejections of work permits and visa applications, particularly affecting the Tourism and Education sectors.
“Whilst these interventions may be driven by good intentions, their cumulative effect, if not well considered, risks increasing the cost of doing business in Botswana. At this critical time, policy focus should be on creating a more enabling business environment, stimulating private sector growth, and supporting job creation,” said Business Botswana. It said measures that could be perceived as unfriendly to local and foreign investors may discourage much-needed investment and innovation, ultimately affecting the livelihood of ordinary Batswana.
As Business Botswana, the organisation said “we firmly believe this is the time for the private sector to step forward with leadership and resolve.” In this regard, “we have submitted a comprehensive set of economic recovery proposals, comprising policy and legislative reforms from the private sector’s perspective.”
“We are also facilitating the submission of high-impact, transformative projects across various sectors, working collaboratively with line ministries to align business development efforts with national economic priorities,” said Business Botswana. Furthermore, “we are actively working to revive and facilitate the Sub High- Level Consultative Councils (SHLCCs) to ensure regular, structured engagements that address the current impasse.” The organisation said these consultations align with the agreed process of conducting Regulatory Impact Assessments (RIA), which help identify and mitigate unintended consequences of policy decisions. “While progress has been challenging across many sectors, we remain committed to advancing these dialogues through ongoing engagement with the government. We acknowledge that progress in some sectors has been slow and challenging,” said Business Botswana. Nonetheless, Business Botswana said “we remain committed to our efforts to engage the government and key stakeholders in resolving the current impasse.”
