Reservation policy has empowered citizens � Seretse
Pauline Dikuelo | Friday March 17, 2017 16:20
The policy came as a result of government’s initiatives aimed at Citizen Economic Empowerment (CEE). Businesses that were reserved for Batswana are premised on the fact that they were easy to operate and do not need technical expertise, special technology or special skills and therefore could be operated by citizens.
Some of these reserved business activities include general dealer, general clothing, fresh produce, take away, hair and beauty parlour, to mention a few.
When addressing Parliamentarians recently, Seretse said the policy has opened opportunities for citizens in sectors such as bakery, fresh produce that have been in the domain of chain stores. “The economic growth of the country is suitable when it is driven by its own citizens. The result in this development of entrepreneurial skills and consequently improvement in the wellbeing of the people,” he said.
The minister pointed out that profits generated from the reserved business activities are re-injected into the economy hence reduce the leakages of income that goes to other countries. Currently the retail and wholesale sectors have created close to 50,000 jobs, which is around 14% of the formal employment.
Reserved businesses under the Economic Diversification Drive (EDD) include manufacturing, services and agricultural production.
Seretse said procurement from producers in these sectors will in the medium to long term lead to competitiveness, which will encourage retail sectors currently dependent on imports to source products locally.
“For a number of years we continuously gave them the exemptions. Upon realising that they are taking advantage of this clause, which gives them exemptions, we decided that we shall stop the exemptions and put them aside so that they can try and get Batswana involved.”
Further the minister noted that following discussions last year, they agreed with SA retailers that they would provide 10% of their floor space for goods produced by Batswana.
They also committed to provide suppliers with training to meet their standards. Edcon Group held the first workshop in February, which was attended by 10 different stores.
Meanwhile, the minister said they have issued 18 companies a total of 27 licences at PrimeTime’s new Pilane Crossing Mall comprising industrial hardware, furniture shop, book shop, hair and beauty parlour, restaurant, haberdashery, filling station, internet café, workshop, agent, toy shop, pharmacy, cosmetics shop, cellphone shop, electronics shop, bakery, supermarket and bottle store at one each, three general clothing, general dealer, take away and fresh produce. Two companies have requested for exemptions as one requested to operate in a space that is reserved for citizens and joint ventures between non-citizens and the other one requested to operate a departmental store in a floor space less than the required 1,500 square metres.
The minister revealed that both requests have been approved and are currently awaiting finalisation of the enabling regulations from the Attorney General’s Chambers. “About 18 of the companies are already operating while two are awaiting the enabling regulations before they can apply for licences,” he said.
The companies include Cash Build, Retail Holdings, Sykes Educational, Lebrit Spar and Hair Saloon, Purple Grape, Destination Management Events BW, Lanny Energy, Tsa Gae Communication, Capital Source, MOJ Investments, TanTalum, Cumax, 2nd Image, Famous Investments, Choppies Butchery, Good Track and ZCX Investments.
“My ministry continues to make follow-ups with Attorney General’s Chambers to check on the progress of the submitted requests,” he said.