Parastatals kill private sector growth

Mmegi Editor | Wednesday October 19, 2016 17:07

Tibone has stated that majority of these operations, known as parastatals, are unprofitable and depend on government for survival.

Tibone’s words cannot have come at the right time when BCL is on its knees facing closure, leaving thousands of people with no jobs and income.

Apart from BCL, there are other parastatals that have milked the country’s economy such as Botswana Railways, Air Botswana, and others that were recently established. The salaries of top management are shockingly high, whilst same faces are recycled in boards of directors and other senior positions. 

However, we have to fault Tibone for the reason that he has served in the government in many capacities in senior positions, until he became a Member of Parliament and member of the Cabinet. It is our conviction that he has had influence in the making of many laws and policies, some of which resulted in the current set up. As a businessman-cum-politician, Tibone should have communicated during his time as Minister, the hardships that the private sector is facing be it getting jobs from the government and getting paid for the work done. The issue of providing a conducive environment for the growth of the private sector has been discussed in many fora, and the government has said it is committed to availing that. However, on the ground we still see potential investors being denied visa, work and residence permits, among other documents, as well as unexplained deportations before the legal process has been exploited. Perhaps the government is uncomfortable with a strong private sector as it will provide much needed jobs for Batswana, hence they will not need to be provided with blankets, diphaphatha and soup, or these short term solutions to the rising unemployment in the country. A strong private sector will also give the government a tough competition for skilled manpower and therefore force it to improve the working conditions for civil servants. With the way things are going, it seems a weak private sector has political advantages, especially amid rumours that senior officials in government and parastatals are required to produce membership cards for the ruling party if they wish to progress. It is until such time that political interference in business has been reduced that Tibone and other likeminded people’s wishes will be guaranteed. As for now, the private sector shall continue to be subjected to unfair competition with the government and therefore loss of jobs, slow job creation, and an upsurge in parastatals.

 

Today’s thought

“We need the private sector to create jobs. If the government could create jobs Communism would have worked, but it didn’t.”

 

– Tim Scott