BNPC in Leadership vacuum, funding pressure
Mpho Mokwape | Monday May 18, 2026 06:00
Speaking before Parliamentary Standing on Statutory bodies and State Enterprises committee, acting Executive Director, Matlho Seitshiro said the centre has operated for years in an unstable environment marked by repeated reform attempts, leadership instability and lack of oversight structures.
“BNPC has operated within a persistently unstable business environment characterised by recurring and unresolved institutional reforms,” she told the committee.
She explained that restructuring efforts started between 2015 and 2018, followed by another proposed transformation in 2019, but none were completed.
Seitshiro pointed out that in 2022, government proposed a merger involving the centre, the Institute of Development Management and the Public Service College. However, delays in implementation have created uncertainty that continues to affect operations.
According to her, the centre has not had a board since June 2024 after the previous board’s term expired. She said the absence of a board has weakened governance, delayed decisions and affected oversight.
“There has been no board since then. This has resulted in the absence of a formal governance and oversight structure to guide the organisation,” she said.
The organisation also faced a leadership vacuum after the former executive director’s contract ended in June 2024. Seitshiro said she only assumed the acting executive director role in August 2025.
The committee heard that the centre is operating with severe staffing shortages that out of 13 managerial positions, only four are filled substantively, leaving a 69 percent vacancy rate at management level.
She said the rest are acting appointments while lower levels in the organisation have a 35 percent vacancy rate.
“These factors have led to a recruitment freeze, leadership instability and reduced organisational capacity,” Seitshiro said.
Despite the difficulties, she said the centre continued to implement productivity programmes, leadership development initiatives and research projects across sectors such as agriculture, manufacturing and tourism.
She highlighted collaborations with the Ministry of Agriculture, the United Nations Development Programme and the Botswana Exporters and Manufacturers Association. The centre also supported small and medium enterprises through productivity improvement programmes.
Financially, Seitshiro described the centre as being under constant pressure because of declining government support and unstable internally generated income. She said total income dropped from P38m in 2021 to P35m in 2024, while expenditure declined from P43m to P37m over the same period.
However, she noted that financial discipline had improved, with annual deficits narrowing from P6.7 million in 2021 to P1.4m in 2025.
“The BNPC is not a commercial SOE. It was not set up to generate profit. Productivity is a merit good similar to education and health,” she said.
Seitshiro explained that the institution requires a different funding and operational model because productivity programmes benefit the wider economy, even though companies may be unwilling to invest in them directly.
She also acknowledged that employee morale has suffered because of the uncertainty adding that employee engagement reportedly dropped to 32 percent in 2022.
The centre introduced psychosocial support and other interventions to support workers, but she admitted that long-term improvement would depend on restoring leadership stability and addressing staffing shortages.
On the policy front, the executive director said the National Assembly approved the National Productivity and Competitiveness Policy in July last year. She said the policy would provide a national framework for coordinating productivity efforts across sectors.
“Productivity is a collective responsibility for Botswana. The BNPC is only a driving wheel,” she said.
She further said that productivity and competitiveness have been declining over the past five years, mainly due to human factors and broader economic conditions stating that private sector growth must focus on efficiency, quality, and excellence to improve international competitiveness.
She emphasised that productivity is now more important than ever, but stressed that the BNPC is only a “catalyst” and not solely responsible for national productivity outcomes.
The executive director also stated that productivity is a shared national responsibility requiring strong policy coherence across government and stakeholders adding that a shareholder compact has been submitted, with detailed performance results included in its evaluation.
Members of Parliament raised several concerns during the session, including delays in audited financial statements, prolonged vacancies, legal costs and the lack of a board of directors.
One committee member questioned why audited financial reports for the 2023/24 and 2024/25 financial years had not yet been tabled before Parliament.
“How does management justify operating without audited financial statements for years mentioned above, given that these are statutory and governance requirements?” the member asked.
Another MP questioned how the centre planned to achieve financial sustainability amid the country’s difficult economic climate and whether charging for services was supported by law.
Committee members also sought clarity on the stalled merger process involving the BNPC, the Botswana Public Service College and the Institute of Development Management.
Questions were raised about whether the centre was still operating fully in line with its founding legislation.
Concerns about workers’ welfare were also discussed, with MPs asking when employees last received a cost-of-living adjustment and whether the centre had a proper training plan in place.
Responding to concerns about the future of the organisation, Seitshiro said her focus since taking office had been on stabilising operations, improving morale and rebuilding leadership systems.
“We believe over this period we have laid the foundation to improve the prospects of the organisation so that when the merger eventually happens, a robust organisation on the ground is delivering to national needs,” she said.
She concluded by warning that Botswana’s productivity and competitiveness levels have been declining over the past five years and stressed that improving efficiency and quality would be essential for private sector growth and international competitiveness.