Despondent Francistowners look to Matambo for reprieve
Chakalisa Dube | Friday February 3, 2017 14:55
The budget for the 2017-2018 fiscal year has attracted huge expectations for Francistown residents for two simple reasons.
The city’s economy has been on a spectacular decline in recent months following the placement of Tati Nickel Mining Company (TNMC) under provisional liquidation.
The closure of TNMC led to over 700 direct job losses. Companies servicing the mine also shed hundreds of jobs while others folded.
The retail sector, which has been anchoring the city’s economy, has also gone down in recent months. This is a result of Zimbabweans who are no longer frequenting Botswana to buy goods for re-sale in their home country.
Zimbabweans no longer buy some goods in Botswana because their government has imposed an import ban on some of the goods they used to purchase abroad.
The Business Botswana northern region manager, Kebaabetswe Bogatsu told BusinessWeek that he expects the Budget Speech for the next fiscal year to come up with an action plan aimed at revitalising the city’s economy.
“From our interaction with residents of Francistown and business people, it is clear that the city’s economy is on a sharp decline as a result of dynamics that have taken place in recent months. Our hope as Business Botswana is that the government will announce major initiatives aimed at helping the city’s economy return to its best,” he said.
“Late last year the government announced that Francistown is among areas that have been classified as a Special Economic Zone (SEZ). There are projects, which have been planned to be part of turning the city into an economic zone, and our hope is that the budget will provide a detailed action plan on these projects meant to turn the city into an SEZ”.
President Ian Khama announced in his State of the Nation Address (SONA) in December last year that Francistown would be turned into a transport hub.
Former Francistown mayor, Iqbal Ibrahim who has been the city’s economic commentator for years says he would also like to see a budget with a more detailed plan to revive the economy of the city.
“The budget is usually not detailed. I hope this time around the budget will be more articulate on areas of job creation and attraction of investment. I want to see a budget that will win the confidence of the investors and the city residents,” he said.
In his opinion, he believes the budget is usually not articulate in terms of how businesses and residents can benefit.
Ibrahim also recommends that before the budget is drawn there has to be consultation with members of the public and those tasked with drawing the budget.
“This will help us draw an informed budget,” he said.
Independent economist, Keith Jefferies of Enconsult Botswana notes that there will be nothing much for Francistown.
“I think specific attention will be given to Selebi-Phikwe in terms of areas like job creation. Selebi-Phikwe is the most affected in terms of job losses,” he said.
Over 5,000 people lost their jobs when BCL Investments, which is also under the BCL Group, was placed under liquidation last October. The economist also believes that Francistown will most likely be allocated already stated projects like those under the Economic Stimulus Package (ESP).
“I do not even see the budget including a detailed plan on how Francistown can be turned into a special economic zone. This is for the simple reason that a body that has been tasked with projects under the special economic zone is yet to be operational,” he said.