Unlicensed dealerships create 165 jobs amidst rising unemployment
Pini Bothoko | Wednesday March 25, 2026 06:23
Assistant Minister of Trade and Entrepreneurship, Barariwa Mathoothe, revealed this when responding to a question in Parliament from Mogoditshane East MP, Letlhogonolo Barongwang. The MP had sought clarity on the number of licensed and unlicensed second-hand vehicle dealerships operating in Mogoditshane, as well as their contribution to employment and government revenue.
Mathoothe disclosed that a recent profiling exercise identified a total of 120 active imported pre-owned motor dealer operators in Mogoditshane. Of these, 62 are licensed by the Mogoditshane-Thamaga District Council, whilst 58 are operating without licences and are therefore considered illegal.
Despite their unregulated status, the unlicensed dealers have created 165 jobs, employing 133 citizens and 32 non-citizens. In comparison, licensed operators employ 398 people, including 385 citizens and 13 non-citizens. Overall, the sector supports 563 jobs, of which 518 are held by citizens and 45 by non-citizens.
Mathoothe noted that while data on tax contributions from the sector is not readily available, the Botswana Unified Revenue Service (BURS) remains actively involved in monitoring compliance with tax laws as part of multi-agency inspections.
He explained that councils, through their By-Law, Environmental Health, and Business Facilitation offices, conduct routine inspections to ensure businesses comply with trading regulations.
'Non-compliant operators are charged and instructed to regularise their operations. In addition, joint inspections are carried out in collaboration with agencies such as the Competition and Consumer Authority (CCA), BURS, the Department of Labour and Social Security, the Department of Immigration and Citizenship, and the Botswana Police Service. These efforts are aimed at enforcing compliance with tax, labour, immigration, and consumer protection laws,' said Mathoothe.
Following the recent profiling exercise, Mathoothe said government has directed the Mogoditshane-Thamaga District Council to urgently address the issue of illegal motor dealer operations.
He added that the Ministry of Labour and Home Affairs has also been engaged to review work and residence permits issued to non-citizens involved in the sector.
On improving the business environment, Mathoothe highlighted reforms introduced under the Trade Act of 2019 and the Trade Regulations of 2020. He said the issuance of trade licences and business registration certificates has been simplified, with applications now processed over the counter and completed within a day.
He further emphasised that the imported pre-owned motor dealer industry has been reserved exclusively for citizens or wholly citizen-owned companies. However, some non-citizens continue to operate legally under licences obtained before the 2018 policy change, as the law does not apply retrospectively.
As government moves to clamp down on illegal operators, the figures underscore a complex balancing act between enforcing compliance and safeguarding livelihoods in a sector that continues to provide much-needed employment.