Cash-strapped Tonota Council forms investment arm
Lesedi Mkhutshwa | Friday August 29, 2025 14:17
When addressing the ongoing council meeting this week, TDC chair, Neo Sefume, said that with the challenge of scarce resources, there was need for the local authority to formulate a strategy for income-generation by forming its own investment company.
Sefume further explained that setting up an investment company is also a deliverable in the local authority’s roadmap as it aims to unlock value from its assets.
The initiative has also been affirmed by the Local Government and Traditional Affairs ministry as a response to expanding councils’ revenue bases.
“I am positive that the new entity will generate sustainable revenue streams, stimulate local economic growth, and deliver long-term financial returns for the benefit of TDC,” he said.
The TDC chairperson added that the formation of the investment company would enhance the district’s chances of accessing bond markets through the Botswana Stock Exchange (BSE) to augment its low budget.
He said that this initiative, known as a municipal bond, is being piloted by BSE and Gaborone City Council, and the TDC had extended an invitation to the BSE for a presentation in the current sitting.
“With dwindling financial resources, local authorities are allowed to devise ways to generate income. “We can tap into practical ideas to maximise revenue, including intensifying revenue collection, outsourcing market stall management, and revising costs or fees levied on council services,” he said.
According to Sefume, the council is facing significant financial challenges, including a budget deficit, due to limited resource and late grant disbursements.
“It is evident that this situation stems from the depleted national coffers because we rely heavily on the Revenue Support Grant from the central government,” he added.
He added that this then compelled the council to implement projects with shortages in liquidity by making numerous inter-funding transfers between votes.
Sefume elaborated that this does not fully help as it only creates project gaps, and the district ends up with many pending projects.
“The Ipelegeng program is running with a deficit due to non-disbursement of funds for the 2025–2026 financial year. “As for primary school maintenance for the year (2025–2026), we have been allocated P308,503 as compared to the P1,170,000 last financial year for primary schools,” he added. “Maintenance funds will be used to complete ongoing projects as well as pay off retention for balances for completed projects which were on the defects liability period in the current financial year,” he said.
Speaking about other projects, Sefume announced that the procurement for upgrading of clinics, inclusive of maternity, has been stalled by the review of the Development Manager model, and the planned projects have been recommended for termination and realignment with the normal procurement procedure.
He stated that Borolong Clinic, with an amount of P10 million and Mathangwane Clinic at P2 million, will be affected by termination and realignment with the normal procurement procedure.
To mitigate its financial challenges, Sefume said TDC has decided to implement cost-cutting measures, including controlling the number of officers attending workshops, sharing vehicles on official trips and conducting virtual meetings.
“There also has to be a closer monitoring of water and electricity bills to minimise them since they are one of the main contributors to the district’s government expenditure,” he added.