Air Botswana privatisation hits brick wall
Monday, March 25, 2024 | 1840 Views |
Air Botswana plane
The state-owned national flag carrier has been drenched in financial dire straits for many years with the airline failing to break even due to low sales and high maintenance costs. Responding to a question in Parliament, Serame revealed that privatisation efforts have been stalled since 2016 with the World Bank roped in to assist in feasibility studies.
“An attempt to privatise Air Botswana was made in 2016, but was not successful due to the loss making nature of the entity. Currently the entity is going through a process of identifying a strategic partner in preparation for privatisation,” she said. The national airline is scheduled to receive a bailout of P121 million in the 2024-2025 financial year, which follows an allocation of P166 million in the current year, also for a bailout.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...