Upsurge in parastatals crowds out private sector

Speaking at the second annual Private Business Growth Awards last week, which were hosted by Grant Thornton in collaboration with Business Botswana, the guest of honour, Charles Tibone said the proliferation of parastatals definitely dampens the growth of private business. He expressed concern that the majority of these parastatals businesses are chronically unprofitable saying they operate on negative returns on investments or on life support from government through subsidies.

“In the private sector an entity that does not deliver positive returns on investments is bound to have a bleak future,” he said. Some of the new parastatals that have been created in the last few years include Botswana Trade Commission, Botswana Oil, Gambling Authority, Companies and Intellectual Property Authority and Botswana Accountancy Oversight Authority (BAOA).