Stanbic Bank Takes Budget Reviews Across Country
Staff Writer | Monday February 8, 2016 15:06
From February 2-3, 2016, the bank engaged customers and key stakeholders within the respective locations to unpack the National Budget, driving the conversation of the National Budget beyond the city limits of Gaborone.
These reviews were held in collaboration with Business Botswana and in association with Accpro Accountants, University of Botswana Department of Economics and Motswedi Securities.
The panellists sought to demystify the individual, community, business, and national implications of the budget.
Amongst some of the issues interrogated were: understanding the National Budget and Budgeting Process; Assumptions underlying the Budget; global economic environment and domestic economic context.
In addition, the engagements tackled key reforms and policy announcements; whether the proposed budget is expansionary; and whether the Budget addresses national priorities.
Ultimately, panellists explored what, if any, the opportunities are for the business community.
A Senior Lecturer in the University of Botswana Economics Department, Jona Tlhalefang commented that, “Amongst the key takeouts is the fact that the proposed Budget rests on subdued global and regional economic activity.
“Economic activity is expected to pick up in the near term in the global economy and domestic economy, though the recovery is relatively weaker than previously envisaged.
“Some implications of this include diversifying the export base away from commodities towards services. This raises productivity and generating growth that is not only rapid but also inclusive in order to reduce inequality.”
In its position, Business Botswana called for inclusion of the private sector in order to create an enabling environment for business.
Business Botswana acting CEO, Dichaba Molobe stated that the need to create an enabling environment for the private sector to thrive has not been clearly defined and therefore recommended a medium term review to ensure the creation of a conducive business environment.
He said:
“The fiscal environment under this Budget is unfavourable with projected revenue lower than expected, which coincides with a downturn in the Southern Africa Customs Union (SACU) revenues.
“The fiscal ‘envelope’ is therefore shrinking and putting government under pressure for the second year running. This situation is worrisome and we hope that it represents a cyclical swing and not a trend.
“However, we commend the Minister of Finance for striking a reasonable balance under these circumstances. The Budget should have reaffirmed the role of the private sector as the engine of economic growth.
“In that view, we had expected the minister to highlight measures to engage the private sector to manage projects to avoid cost overruns and delays.
“There is need for an innovative and clear strategy to grow the economy. This strategy should be anchored on the private sector as the engine of growth while government focuses on policymaking and regulations.”
The reviews, now in their 5th year, received a remarkable attendance by residents across all locations. The platform served as one of a number of financial literacy and public education initiatives championed by the Bank in a bid to drive greater awareness, understanding, and participation in economic activities impacting the Nation.
“We are pleased to see such a platform gaining traction and popularity, a true testament to the thirst of our stakeholders for greater understanding and analysis of such key economic issues.
“As a business and as a financial partner, we continue to seek ways to engage Batswana on key issues, and working with Business Botswana and with the support of Accpro Accountants, UB Department of Economics and Motswedi Securities.
“We are happy to see further strides being made in this regard,” concluded Leina Gabaraane, Chief Executive of Stanbic Bank Botswana.