Mmegi

Open letter to President Boko

Boko. PIC PHATSIMO KAPENG
Boko. PIC PHATSIMO KAPENG

Mongameli othandekayo Ndithatha eli thuba ukuvuyisana nawe ngonyulo lwakho kwesona sikhundla siphezulu kwilizwe lethu. Ndikunqwenelela iintsikelelo zika Thixo kwisikhundla sakho. Makabukhanyise uYehova ubuso bakhe kuwe, akubabale; makabuphakamisele uYehova ubuso bakhe kuwe, akunike uxolo. I have deliberately used mother tongue in my salutation because I believe in the promotion of mother tongue and it is my ardent hope that under your visionary leadership, mother tongue will be introduced in schools countrywide.

My concern emanates from the fact that there is nowhere in the SONA where the informal sector is mentioned, despite the fact that the informal economy has been the mainstay of countless people’s livelihoods in Botswana. The high rate of unemployment has compelled many unemployed people especially the youth and women to resort to informal trading, thus leading to the growth of the informal economy. Given the large number of individuals participating in the sector, it continues to make considerable or significant contributions to the reduction of poverty, the informal sector contributes significantly in employment creation, economic diversification and growth and it contributes significantly to the GDP in many countries.

Statistics Botswana’s 2018 Botswana Multi-Topic Household Survey Report defines an informal sector business as one that is not registered with the registration authority such as Companies and Intellectual Property Authority (CIPA), having an informal bank account or none at all, with a maximum number of five paid employees. More needs to be done to ensure that informal workers and businesses are successful as this will in turn foster economic diversification, poverty alleviation, employment creation and economic growth and to advance five of the United Nations Sustainable Development Goals, being Goal number 1 of No poverty, Goal number 3 of Good health and well-being, Goal number 8 of Decent work and economic growth, Goal number 9 which speaks to Industry, innovation and infrastructure, and Goal 10 which focuses on Reduced inequalities. There is need to provide pivotal support services to informal traders and workers by amongst others assisting with advocacy and representation at critical platforms, transitioning from informal economy to formal economy, promotion of lawful and ethical conduct in business, training workshops and capacity building, market penetration, rescue and recovery plans during times of economic hardships and natural disasters. I applaud UNDP, ILES, DUMA FM, BUAN and the Ministry of Entrepreneurship for the support they lend to the Informal sector, however, more still needs to be done to support civic Organisations that represent informal sector traders.

I call upon the corporate sector to recognise and acknowledge the informal sector as a link between them and the end users of their products, as such informal traders help to boost or maximise sales of goods and services from network operators, beverage manufacturers and other producers hence the need to support civic organisations through corporate social responsibility initiatives. International Labour Organisation (ILO) estimates that in Sub-Saharan Africa, the informal sector accounts for 86% of men and 92% of women in employment. Data from the Statistics Botswana’s 2018 Multi-Topic Household Survey Report and the Ministry of Finance and Economic Development's 2015 Project to Conduct an Informal Sector Study for Botswana estimated the Annual Economic Output from the Informal Sector in Botswana at P7,875,730,039. In their 2021 Report the UNDP stated that the informal sector in Botswana employs over 191,000 people. However, most of these workers are not covered by social protection, hence their increased level of vulnerability during shocks such as the COVID-19 pandemic, economic hardships and natural disasters. The informal economy in Botswana therefore will increasingly continue to be the mainstay of countless people’s livelihoods. The high rate of unemployment, propelled by job losses during COVID-19, retrenchments, and the growing unemployed population have compelled many people especially the youth and women, to resort to informal trading to provide for their families, thus leading to the growth of the informal economy as a significant contributor to the reduction of poverty, employment creation and economic diversification. But as instrumental as the sector is to the local economy, informal traders and workers operate under very trying and difficult conditions, the informal sector is besieged by many challenges that need urgent and decisive intervention in order to protect the livelihoods of informal traders. Informal traders, especially those involved in cross-border trade face other challenges such as language barriers e.g. those who travel as far as Mozambique face communication challenges as they do not speak Portuguese and local languages, some cross border traders go as far as Tanzania where Kiswahili is the official language, this also creates communication challenges. Botswana also receives cross border traders from as far as Lesotho each week, these traders do not experience language barriers because of similarities between Sotho and Tswana languages. The other challenge faced by cross-border traders from Botswana is one of harassment by border officials in some countries, and because they do not qualify to open bank accounts, they are forced to buy foreign currency in the black market, this exposes them to risks as some of these illegal forex traders and places them at risk.

Furthermore cross border traders have to use lifts or hitch-hike when travelling outside the country, this exposes them to human trafficking. At times cross border traders are caught up in strikes and demonstrations especially in one of our neighbouring countries, we call on our embassy in Pretoria and our consulate in Johannesburg to issue travel warnings especially during times of strikes or civil unrests. It is most unfortunate that most informal traders in the informal trading did not benefit from the P1000.00 Covid relief funds facilitated by the UNDP, which would have gone a long way to cushion this impact. It is my belief that the disbursements of the Covid relief funds to informal traders could have been more equitable, impactful and accountable, had the government consulted civic organisations in the informal sector. There is need to address operating conditions and the laws and regulations that make it difficult for the informal traders to survive. For example, local authorities can decide to demolish structures used by informal traders’ without any consultation with civic organizations that represent informal traders. This is because these spaces on which informal traders operate from belong to the local authorities and the informal traders have no right or claim to them, with no framework is in place to legitimise this. They are therefore regarded as squatters and can be evicted at any time and can even face charges for illegal land occupation. As such most operate in poorly made structures that do not shield them against the most adverse weather conditions, and most, unbelievably, do not have ablution facilities where they can relieve themselves. This is not only a health risk but is erosive of the most fundamental tenets of human dignity, and sustainable solutions must be put in place. A few days ago, informal traders lost their valuables following heavy rains that left a trail of destruction in Francistown, we are relieved however to learn from these traders that they have been assured of compensation for the losses that they incurred after the recent hailstorm, this type of situation could have been avoided if the informal traders operated from more decent structures that can protect them from harsh weather conditions.

Another example is the ban on importation of vegetables that was done without consultation with civic organisations that represent informal traders. This transition adversely affected informal traders as they did not do proper planning for the new developments and challenges. The new Anti Tobacco Bill that I believe is currently under review was passed without consultation with civic organisations that represent informal traders, and this threatens to further decapitate their businesses due to the demands placed on the informal traders for specific licensing subscriptions, ban on selling loose cigarettes and other prohibitions. Informal traders do not qualify to open bank accounts due to the hefty bank charges and complex requirements and administrative processes. This is risky as they are forced to keep their monies at home, exposing them and their families to risks. Furthermore, when they travel to buy stock in other countries, they are forced to carry hard cash with them and many have been hijacked or robbed during these travels. I strongly believe that with the right support structures and a conducive business environment with enabling legislation, an informal trader today, however small, is a potential registered SMME and subsequent corporatized business of tomorrow, which would pay tax to government, employ more Batswana and which other institutions such as banks can gain patronage and considerable profits from. This potential however, will only be realized if the government creates an enabling environment for the informal traders and workers to thrive, through consistent consultation and appropriate, nurturing, and conducive regulatory environment for the sector. On the same breath the banking or financial sector should equally come to the table with innovative policies, programs and products that enable the informal sector to flourish. Only then can we together, truly, Build Back Better Post Covid-19, with decent working Conditions and Inclusive Social Protection Systems for all. ILO defines decent work as productive work for women and men in conditions of freedom, equity, security and human dignity.

Decent work, according to Wilkipedia, is defined as employment that respects the fundamental rights of home based workers in terms of conditions of work, safety and remuneration including the respect of the physical and mental integrity of the worker in the exercise of his/her employment. Most workers in the informal sector work under deplorable conditions and are denied basic rights such as decent working conditions, inadequate or lack of social protection and bargaining rights which are vital cogs in decent working conditions. This harms their economic security, wellbeing and empowerment, it further makes them vulnerable to abuse, exploitation and various forms of harassment including sexual harassment. Many cattle herders, farm workers, domestic workers as well as workers in most retail outlets, work without employment contracts and without conflict resolution mechanisms in place, this makes it difficult to address their grievances, furthermore this makes it difficult for labour officers to mediate their cases, and as a result some disputes between farm workers and their employers have ended brutally and fatally. There is need for improved working conditions for informal workers, this includes contracts of employment and decent wages. We also appeal to policy makers (Minimum wages Board) to involve civic organisations that represent informal workers in discussions on minimum wages for domestic workers, workers in the tourism sector, farm workers and home based workers. We also call for a tribunal that deals with disputes involving informal workers, the industrial court has a huge backlog to deal with. Labour disputes involving informal workers mostly revolve on small claims such as notice pay or leave days, these are small matters that should be addressed at a small claims court or a specialised court for informal traders.

I make a humble appeal on policy makers to empower labour officers to award default judgment in the event employers fail, refuse or neglect to attend to mediations and that Labour courts should also endorse the default judgments from Labour Offices. It is my belief that policy makers and local authorities will follow your good lead and recognise the informal sector as a critical cogwheel of the economy, and in turn actively engage civic organisations that represent informal workers and traders when making decisions that affect informal sector traders and workers.

Some recommendations on how to improve the informal sector are as follows: 1. Workshops be held with civic Organisations associated with informal traders to inform them about Government’s flagship programs such as Chema Chema, LIMID, YDF, Young Farmers Fund, Poverty alleviation and others, this is due to the fact that some informal traders are domiciled in remote areas where they do not have access to the internet, radio and television, as such there is need for them to be informed or made aware of the Government’s flagship programs

2. There is need to improve relationships between informal traders and by-law officials, this will ensure that informal traders operate in a conducive and enabling environment

3. Informal traders need to be trained on business and financial management, and on customer relations.

4. Informal traders need to be trained on culinary skills and food hygiene

5. There is trade in a wide variety of natural resources, mainly herbal products such as monepenepe, moporotla, mowana, mokgwapha (Aloe vera), sengaparile (Devil’s claw) and some performance enhancing products in the streets across the districts, we would like these products to be tested by BOMRA for their efficacy, safety and side effects, if any, and where possible, that these products be patented or registered with BOBS as they could help to address the challenge of drug shortages in hospitals.

6. Informal traders need to be helped to brand, package and to market their products locally and in digital platforms to market globally and to be introduced to opportunities such as AGOA

7. Informal traders should be sensitized on the need to adhere to laws, this is because we observed a lot of illegal activities in the informal sector such as sale of illicit cigarettes to students or minors, sale of illicit beer, illicit tobacco and marijuana that is smuggled in to Botswana as well as pirated music, DVD and counterfeit goods including unregistered skin lightening products including oral and injectable glutathione and other injectable vitamins. There is also a challenge of illegal sand mining and illegal gold panning in Matsiloje area, these challenges need to be given urgent attention as they can cause environmental degradation.

8. Informal traders should be encouraged to form associations in their areas of operation, this will help them to speak together with one voice to the authorities on issues affecting them

9. Civic Organisations that represent informal traders and workers should be consulted when Policies and laws affecting informal traders are discussed, for example, the P1084.00 salary for domestic workers was decided without consultations with civic bodies that represent informal workers

10. There is need to implement social protection policies and to create a budget aimed at protecting and helping informal traders and their Associations. There is need by the Government to implement subsidised social security schemes such as insurance, medical aid and pension schemes for players in the informal sector, these schemes would help to cushion informal traders from social and economic vulnerabilities.

11. Child labour is rampant in many homes that employ domestic workers and at some farms around Ghanzi region and among the Zezuru community, these are a religious sect and some do not believe in formal education, as such, their children are denied opportunities to study during their formative years, but are taught menial skills such as carpentry, plumbing, roofing, basketry and auto mechanics at home, they do not receive any certification from home training, the females are taught sewing, culinary skills and to sell in the streets at a very tender age. My wish is that the Zezuru community should be encouraged to send their children to schools as education is free and is a right.

12. Training in as sewing, knitting, crockery, baking and embroidery should be taught to rural area dwellers, most of them can earn a living from these skills, this will in turn reduce the problem of rural-urban migration. Local Economic Drive should be promoted in District Councils, this will help to empower rural communities and will help to create employment and reduce dependency on hand outs

13. Most informal traders benefit immensely from natural resources such as wood, herbs or plants, some harvest Mopani worms, grass and wild berries and other herbs, there is need to sensitise informal traders to preserve, protect and conserve these natural resources that are found in their localities and to learn how to prevent, control and manage bush fires particularly in remote areas where there is no fire department.

14. Urban planners, architects and property developers should make it mandatory to create spaces or cubicles for informal traders when planning to establish new shopping malls and stadiums

15. Political parties must strive to include the informal sector in their manifestos.

16. Informal traders posses great talent in arts and crafts particularly in pottery, weaving, basketry, carpentry, welding, visual arts and photography, there is need to assist these traders to formalize their business and to be assisted to market their products locally and globally by means of digital platforms.

17. local banks should come up with banking services that are tailored to suit the informal traders, providing less stringent application requirements, simplified opening of the accounts and most importantly, subsidised banking charges. 18. There is need by the Ministry of Entrepreneurship, BURS and the Ministry of Labour to establish a hotline where informal traders and workers can air their grievances in the event they face harassment from by law officials, customs officials or employers.

19. Policies should be put in place to protect informal traders against fierce or unfair competition from chain stores, to protect informal sectors against this unfair competition, the Government must ensure that traditional food such as chicken feet (Menoto), fat cakes (Magwinya), Offals (Serobe), Pounded meat (Seswaa), home-made bread (Mapakiwa, or diphaphatha) are reserved for informal traders.

• Thamsanqa Metsing is the executive secretary at Botswana Informal Sector Association (BOISA) and he is writing in his personal capacity. He is reachable at 73081842 and [email protected]
Editor's Comment
Refrain from risky behaviours

After long spells of dryness and high temperatures, it is important to celebrate the torrential rains with caution and reasonableness especially when all indications suggest that the rains are not going to stop anytime soon, especially in the northern parts of the country.We want to encourage both the young and the old to refrain from any risky behaviour during this rainy season.Batswana need to be on red alert and not take chances during the...

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