Economic Stimulus Is A Perfect Platform For Wealth Creation For Indigenous Batswana For The Next 50 Years
Correspondent | Monday November 2, 2015 15:31
What Is Wrong With Our Economy?
As a nation we have we failed to create enough wealth and employment opportunities for a very long time even when our economy was at its peak. We never interrogated the real reasons. Instead we took a sugar-coated route which led us to a dire situation. Unfortunately, we have to deal with it as a matter of urgency. Our economy will never create any meaningful wealth and employment opportunities if indigenous citizens are spectators. Our economy has thus far benefited the following Groups namely: Indians, Chinese, Whites and some few Indigenous Citizens through corruption or theft.
We have to be honest and fair to ourselves if we appreciate the magnitude of the problem that has befallen this nation. We need to tell our fellow citizens and other nationals the truth: the gravy train has reached its final destination and the true journey for our people has started. We are not racist or intolerant. Our foundation for nation-building and values since independence was to transform this nation into a united, proud and prosperous nation. Billions, if not Trillions have been generated from this economy. What flagship programme do we have as nation to show our people as benefits except Infrastructure, Education, Health and Others? People need good life. Without wealth and employment opportunities, most things become irrelevant. Profits spent on any economy will generate economic opportunities, massive wealth creation and employment. Unfortunately, our case is different as all profits are repatriated leaving absolutely nothing for our economy. Then on what basis should we raise our hope for wealth creation and employment opportunities? As a nation we need to comprehend this reality and decisively remedy the situation without fear or favour. Over the last 50 years we accorded the Indians, Chinese, Whites and a few Indigenous Citizens to be at the forefront of our economy and the end product is visible. Majority of our citizens are languishing in Poverty, High Unemployment and Massive Outflow of capital. Fellow citizens, we have reached a cul-de-sac with the current status quo. Our Citizens have to own and implement this economic stimulus to correct the imbalances of the past without delay. As a nation we expect nothing less than what we all aspired to be as a nation and failure is not an option. The next 50 years is crucial for the survival of our people and the nation, our work begins now. The biggest challenge with us is corruption. It has become clear that corruption in some cases is so naked that it is visible for all to see. We don’t have a clear mandate on how to deal with corruption. All our efforts and intentions point to one thing window dressing publicity. As a nation we need total control on our nation’s purse. Or collective responsibilities should be bold and visible. Two good examples to mention are Botswana Power Corporation and Water Utilities Corporation. These institutions are spending Billions every year even though their problems are endless with no end product in sight even after numerous promises. The question we should ask is, if we spend billions on this sector why are we not having economic opportunities? The answer is simple. The more outflow of capital the more thirsty our economy becomes. This is the reality and the trend has to stop now. Our people have acquired necessary skills and expertise to be engaged by this sector and save the bleeding of capital. As a nation we need to take our responsibilities seriously. It is our future and country that hangs in the balance. The time to claim ownership is now. Botswana Tourism Organisation should come out of its shadow. It is becoming clear it has reduced itself to an event management company. We know few events coming from them and very little in terms of tourism opportunities, products and wealth creation. This is worrying because stimulus package is coming to tourism sector. How can we convince ourselves that our money is being used for a good cause? It is time fellow citizens to take our responsibilities serious to make those employed to account for their duties. Tourism is the biggest business after mining yet our people are still to realise the benefits from tourism. Therefore the time is now for citizens to take ownership of their natural resources by getting involved in every process that involves their natural resources, management and wealth distribution.
Foreign Direct Investment
We have decided to engage on this topic because for a very long time discussion on this subject has been in public domain with different reasons advanced, which we believe we should contribute on because we do business as well outside the country. We need to start by defining why countries need FDI and what are the benefits associated with that and why it is important as citizens to understand in clear terms this necessary evil. We used the word evil because FDI is a double sword by nature. It creates opportunities at the best lowest costs. Countries need FDI because either they have no capital to do projects or create employment opportunities for their citizens. This solution is used as a stop gap for immediate and medium platform for citizens to lessen their plight of unemployment. The devil is in the detail. All investors will always expect maximum profits on investments. Therefore, the reality is that employees have no chance for wealth creation or guarantee for a better future. All over the world when labour costs and overheads go up, it becomes less attractive for FDI and some companies will relocate. We know the school of thought of skills transfer and taxes paid by these companies. In most cases these companies get tax holiday therefore in all fairness FDI does not offer permanent prosperity for citizens. One good example is our Former President Rre Mogae. He was a good salesman for this country. If FDI was the answer, why are we having high unemployment and very little wealth creation for citizens and strong foundation for middle class? We have to address the question of Foreigners in Botswana because we have to share our experience with the nation. We need Foreigners who add value to our country and who contribute meaningful to our economy. The research that we conducted across all sectors in our economy have shown that 50% of Foreigners doing business in Botswana are not suppose to be here they are occupying opportunities that Citizens can do with distinction. We support wholeheartedly the decision by government for non-renewal of permits and proper screening of new permits. As a nation we need to remind ourselves that we will never feed our neighbours if our own children are starving.
The Benefits Of Stimulus Package And Its Implementation
We strongly advocate for proper forums for consultation of stimulus package through kgotla meetings, wealth creation pitsos and other relevant platforms as the basis for inclusive sharing of our national resources. We recommend that government should procure skills direct from the market from all citizens and put in place project management plans and managers as opposed to companies because the same money will end up going to the same people who are repatriating massive capital from this country. It takes time and resources to register a company. Does it mean those with no money but with skills are locked out of this benefit, especially that the stimulus are rolled out from November 1, 2015. Government should pay for these skills at market rate as compared to labour rate currently in use as this will go a long way in citizen empowerment, wealth creation and economic opportunities. If citizen are given the opportunity to develop their country and paid well in return they will invest in other sectors, e.g. buying cattle for farming and selling to BMC then earning foreign currency to replenish our reserves and many other opportunities that are available for exports. The media should be used as a vehicle for information dissemination and earn massive benefits from this noble cause. Finally, may we kindly ask our people to seriously introspect and take this Stimulus package (Setimola Lenyora) as a good platform for wealth creation and employment opportunities for the next 50 years. We have already indicated in our opening remarks that the future of this country is in the hands of its citizens especially indigenous. The task has began to build a united, proud and prosperous Botswana
Gibson Matenge
Billionaire Consortium