PEEPA weighs BSB, BotswanaPost merger
Pauline Dikuelo | Tuesday June 13, 2017 15:47
According to the Public Enterprises Evaluation and Privatisation Agency (PEEPA) corporate communications manager, Mosikare Mogegeh developments have been made in the merger of the two parastatals as currently business models are being interrogated for suitability and viability of the future operational course.
He said the study has proposed several models to be used after merging the two entities. “Currently a detailed assessment of the models is being undertaken so as to determine the future operational course of the merged entity and we expect the whole process to be complete in August 2017,” he said.
He said the recommendations will be implemented once approved by the Ministry of Transport and Communications. This follows the passing by Parliament in December 2013 of the Botswana Postal Service Amendment Bill and approval by Cabinet of a Holding Company, the BotswanaPost and Savings Group Limited, under which the merger will operate.
Last year in July a tender for the consultancy services was awarded to conduct a due diligence study on the merging organisations. The study is expected to recommend an appropriate corporate business model and an optimal organisational structure for the operationalisation of the merger.
The resultant corporate business model is also expected to offer Batswana access to one-stop shop for postal, financial inclusion, courier, logistics and related services efficiently and at a reasonable cost. Further PEEPA is assisting the Ministry of Investment, Trade and Industry (MITI) to undertake a detailed assessment on possible rationalisation of all its 11 parastatals.
The parastatals include Botswana Investment and Trade Centre (BITC), Citizen Entrepreneurial Development Agency (CEDA), Local Enterprise Authority (LEA), SPEDU, Competition Authority, Botswana Trade Commission, CIPA, Gambling Authority, Botswana Development Corporation (BDC) as well as BOBS.
According to Mogegeh, currently PEEPA and MITI are undertaking preparatory work for the development of the rationalisation strategy.
“The process has just started and therefore there are no specific recommendations at the moment. The overall objectives for the rationalisation strategy is to ensure optimum utilisation of national resources and achieve reduction in public expenditure, reduce overlaps and duplications and ensure effective and efficient service delivery systems through synergies,” he said.
Appearing before Public Accounts Committee recently, the MITI permanent secretary Peggy Serame said government has considered merging these parastatals as most of them have the same mandates something that she said will reduce the costs as most of them cannot sustain themselves.