Govt seeks to break impasse with SA retailers
Isaac Pinielo | Friday October 14, 2016 17:52
According to the Trade Act of 2003, businesses such as; auctioneers, car wash, cleaning services, curio shop, fresh produce, general clothing, general dealer and hairdresser are exclusively reserved for citizens.
Chief commercial officer for the citizen economic empowerment (CEE), Banusi Mbaakanyi said mall developers have been complaining that there are no local companies that are capable of supplying malls.
Batswana retail operators have in the past expressed concern about giant South African retailers who dominate local retail mall spaces, in contravention of the government’s citizen economic empowerment drive.
Speaking at a Stanbic Bank stakeholder engagement on Botswana consumer sector, Mbaakanyi said government is still negotiating with some foreign- owned retailers who continue to refuse to accept locally produced goods in their shops.
She said there is bargaining that is on course between the ministry and stakeholders to find out if there are local companies that can supply malls.
“The ministry is currently data-basing all firms ready to supply the retail markets to see if there are local companies that are capable of supplying the malls,” she said.
The database, according to Mbaakanyi, has contact details including location, product range, production or service capacities, employment numbers, certifications and category.
She said the ministry should submit list of ‘low hanging fruits’ to the South African Business Forum, noting that companies should issue letters of intent to potential manufacturers or producers to allow for capacity building.
“All ministries and other business development providers must facilitate the development of sector specific clusters,” Mbaakanyi said.
Earlier on the permanent secretary in the Ministry of Investment, Trade and Industry, Peggy Serame said as government has the obligation to drive this initiative, a decision has been taken to suspend the granting of exemptions to non-citizen companies to expand and/or open new retail stores in the reserved business space.
She said such companies would be required to demonstrate meaningful participation or involvement of citizens in their businesses as a way of citizen economic empowerment before they could be granted the exemption.