Francistown economy in ICU
Lebogang Mosikare | Friday February 9, 2018 12:38
Any renewed optimism about the economy of Francistown getting out of the doldrums were dealt a heavy blow on Wednesday after councillors adopted the proposed tentative budget for the fiscal year 2018/2019.
According to councillor Zibanani Benefield, the chairperson of the finance committee, the City of Francistown Council (CoFC) had proposed a tentative budget of P227,899,950 with a Revenue Support Grant (RSG) of P184,391,570.
“In 2017, CoFC approved budget proposals after an extensive consultation process, which gave all council structures an opportunity to make input into the budget. Council priorities were taken into consideration despite the restrictive ceilings and the full council approved the proposal before it was submitted to the Ministry of Local Government and Rural Development (MLGRD),” she said.
Benefield added that the adjustments have been effected and the adjusted budget stands at P223,412,750 and the revised RSG at P180,264,470. “These changes however, did not affect the CoFC priorities but were only aligned to the national priorities.”
Civic leaders adopted the budget grudgingly decrying that the budget was inadequate to cater for the city’s various and rapidly increasing needs. The budget adopted by the civic leaders on Wednesday further hampered the efforts of Francistown to resuscitate its economy in the wake of the closure of mining houses around city in 2016.
To some, Francistown’s economy is literally using oxygen tanks to breathe and is at death’s door, perhaps only awaiting the last rites. Before Tati Nickel Mining Company (TNMC) retrenched its workers in 2016, a textile company here, Botex Weaving Mills also shed jobs.
After the councillors adopted the tentative budget, City Mayor, Sylvia Muzila pleaded with the civic leaders not to ask her questions related to the Francistown Investment Forum (FIF) when she delivers her State of the City Address (SCA) soon.
She argued that since the FIF item was not part of the 2018/2019 budget, it would therefore not form part of her SCA. Muzila told the councillors that her address would focus on issues that were presented in the tentative budget that the councillors adopted.
The Mayor therefore made a clarion call to the councillors to dwell only on issues that they adopted after Benefield presented her budget speech. Muzila said this to murmurs of disapproval from some councillors across the political divide.
Members of the public in the council chambers who attended Wednesday’s session also disapproved Muzila’s statement. The public and journalists who covered the session characterised the omission of the FIF from Muzila’s upcoming SCA as unfortunate and complete waste of taxpayers’ money.
Many murmured that the FIF would die a natural death just like other good government initiatives that were not implemented and are now gathering dust at government enclave. The FIF was launched amidst fanfare and glitz in August 2014 at Adonsonia Hotel.
Then, the CoFC had partnered with Botswana Investment and Trade Centre (BITC) for the inaugural launch of the FIF.
The FIF was a vehicle through which Francistown will attract investment and promote existing investment opportunities in the city in the agriculture, mining, information communications technology (ICT) and tourism. The FIF was also conceived as a vehicle instrumental to implement the city’s 2022 Vision.
Captains of the business industry, potential investors and exhibitors graced the momentous occasion. These included participants from the Ministry of Trade and Industry, Gabcon, Local Enterprise Authority (LEA), Barclays Bank of Botswana, Business Botswana and Debswana amongst many others. But more than three years after its launch, the FIF seems to be a pie in the sky.
Economist Moatlhodi Sebabole noted that it was shortsighted for the CoFC not to have included the FIF in its 2018/2019 budget when Francistown is left with four years to attain its goals of 2022 Vision.
He said the FIF does not necessarily have to be the main address in the budget, adding that absence of the FIF in the budget opens up a lot of challenges to the municipality. He said to overcome the shortfall of funds allocated to the municipality by its parent ministry, the CoFC should intensify its ways of collecting revenue from businesses and the general public.
Sebabole’s sentiments are similar to what councillor Ben Mpotokwane said on Wednesday during the presentation of the tentative budget. Mpotokwane encouraged the council to enhance its ways of collecting arrears from the public in order for it to generate money it can use to finance its needs. Sebabole noted:
“The key thing is how the council will close the shortfall it gets from the MLGRD to augment its own funds. The CoFC should as a matter of urgency also enter into public-private partnerships to close this gap”.