Onalenna Modikwa
4 December 2008
Selebi-Phikwe — Assistant Minister of Trade and Industry, Duke Lefhoko has expressed concern that the council does not support local businesses in diversifying the economy.
Lefhoko, who addressed a full council meeting to brief councillors about his ministry, pointed out that Selebi Phikwe has one of the best bakeries in Botswana but it does not receive the support it deserves.
The council prefers to order face bricks from South Africa at the expense of the local Makoro Brick and Tile, he said. "Who should show interest in local businesses if we cannot? There are many locals in Phikwe whose products can be displayed in hotels and lodges. You should rethink this".
He added that his ministry's aim is to contribute to the growth and diversification of the economy by attracting investment, entrepreneurship development and securing markets for locally produced goods and services.
He said it is very important for businesses to register their companies so that they can be given separate legal entities that will enable it to sink and swim without endangering personal property.
He called for the formation of consumer associations that could use their collective bargaining power whilst also warning against overwhelming businesses with liabilities before they are fully sustainable.
He was concerned that locals do not make use of the Botswana Export, Development and Investment Authority.
Councillor Benjamin Bagayi said it is true that domestic products are not promoted. He said the traditional background also contributes to the current situation.
Laws should be drafted to force councils to promote locally produced goods, he said. He said regulations and policies between central and local government should be harmonised to avoid conflict. "If the quality of life remains poor then it is going to be difficult to attract investors," he observed.
Bagayi noted that it is important to rope in BEDIA to assist in the diversification of the town's economy given the declining metal prices. He urged BEDIA to pay particular attention to Phikwe.
Councillor Koos Mashaba said there is a serious problem of setting up industries, especially in Phikwe. The results are poverty and crime.
He said it is not that Batswana are failing to set up industries but the government has been very slow in creating a conducive environment for the establishment of industries.
He feared that Botswana will suffer because it has failed to prepare.
Alpheons Mashaba noted that Batswana owned companies continue to collapse because some trade laws are unfavourable for traders. He lamented that the law does not protect traders as it allows individuals to buy directly from wholesalers thus affecting business in retail shops. He said as a result, businesses do not grow.
Councillor, Evelyn Kgodungwe said while she appreciates that the ministry has relaxed some trade laws to facilitate economic growth she feared that the move may have many loopholes.
He argued that beef is the most thriving business hence some traders resorted to selling 'braai' in their premises but this has since been stopped. She said trade licence fees are very high, yet local businesses are required to pay rent and this has the potential to lead to the closure of the businesses.
Councillor, Michael Tidimane complained that the PPADB deters local companies from winning tenders in government and councils.
He believes that PPADB procedures should be reviewed such that any registered company should be allowed to tender for council and government projects. He said para-statals like BOBS should reach out more to the public to sensitive people about their roles and responsibilities.
Councillor, Mookami Mmusi urged BEDIA to concentrate its efforts in Phikwe, which is starved of investors.
He urged NDB to consider reducing rental levies for its factory shells or even to sub-divide them so that many businesses can share rent. He urged BEDIA to be lenient with Phikwe and bring other investors to set up in Phikwe instead of concentrating them in Gaborone.
Metal price depreciation is a cause for concern in the town.
In response, a BEDIA official said the organisation has never ceased to be partners in diversification of the Phikwe economy saying they have a problem in selecting companies.
A ministry official said the law does not prevent individuals from buying directly from the wholesalers provided they buy in bulk. He indicated that the law is under review to define bulk sale.
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