The reservation policy made it possible to reserve certain trade activities for citizens or companies wholly owned by citizens. Reserved businesses under the Economic Diversification Drive (EDD) include manufacturing, services and agricultural production. Speaking in Parliament this week, Manake said while government is committed to increasing the participation of native African black Batswana in all sectors of the economy, some Batswana continue to front for foreigners. “We have had situations where Batswana were unable to operate certain businesses like retail because they do not have the start-up income to operate in that space and in the end they lease them out to foreigners and this is not allowed. We are trying with companies like CEDA to finance Batswana citizens. We don’t want them to be underfunded so that they freely operate their businesses without worry,” she said.
Manake was responding to a question from the Selebi-Phikwe West Member of Parliament, Dithapelo Keorapetse. He had asked among others why foreigners and naturalised citizens dominate major sectors of the economy. Manake pointed out that some locals have acquired licences for the sole purpose of lending them to foreigners. Manake admitted that it is difficult to police the reservation policy because a lot of people are still getting away with fronting for foreigners. According to the Industrial Development Act (IDA) of 2019, Section 37, any person who fronts for another commits an offence and is liable to a fine not exceeding P50, 000 for a first offence and to a fine not exceeding P20, 000 and imprisonment for a term not exceeding two years or to both, for a second or subsequent offence.
Manake also told Parliament that the retail sector is dominated by native African black Batswana citizens as most of these business activities are reserved for Batswana. “In terms of the general economy, natural Batswana are predominantly in the Smaller, Micro and Medium sector space, including the informal sector while the Medium and Large scales are predominantly owned by naturalised Batswana and foreigners. However, the combined Wholesale and Retail Sector is dominated by foreigners and naturalised citizens. Botswana’s economic landscape is diverse, with various sectors contributing to the nation's growth and development,” she said. She said while government has implemented policies to encourage the participation of native African black Batswana citizens across all sectors, there are particular areas where their presence is notably strong. “One such sector is the agricultural sector, particularly in livestock farming and crop production. Many native Batswana have traditionally been involved in cattle ranching, which holds cultural and economic significance,” she noted.
