Project failures push govt to embrace risk managment
Oageng Batenegi | Tuesday August 30, 2016 15:20
Molefhi said he found a critical situation whereby a lot of infrastructural projects had either failed or were failing. Although the Minister did not name the projects he was referring to, some of the widely reported failed or delayed projects in recent years include the Sir Seretse Khama International Airport, Dibete Police station and the renovation of the National Stadium.
The Minister said government was investing a lot on infrastructure development, but managing the risk that accompanies the projects lacked behind. “We cannot just take tax payers money and invest on unsustainable development. There should be return on investment,” Molefhi said. The Minister said his ministry has now made sure that every project has proper risk management plan in place.
Molefhi said risk management is important because every project or business adventure involves some risks. “It is therefore important that all those interested in businesses are informed in advance about possible risks that go with the terrain of business,” he told delegates who included young entrepreneurs. The Minister emphasised that it is vital that possible risk management techniques and risk mitigation factors be shared with them so that they can prepare for the future.
The Minister added that financial management is also a critical factor in any business enterprise. “Many businesses fall or rise on the basis of how shareholders manage the finances of the business,” said Molefhi. The minister told the youth that countries are built by disciplined enterprising business people.
“When you see infrastructure, roads, rails, telecommunications and other facilities, they have been put up by business people. Good business people therefore, build good countries,” he said.
Molefhi highlighted to the convention that few governments around the world own industries. He said this country would therefore need effective young entrepreneurs to boost the private sector and make it sustainable for economic development. The Minister said government could only make the business environment conducive by providing the necessary and right instruments, policy and legislation.