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 Review tax regime
Citizen bias in procurement
President Lt Gen Ian Khama has said while Government looks upon the growth of the private sector, increasingly rooted in the citizenry, as a key
instrument for national development, he was concerned about the tendency of some companies to embrace self-interest over the national interest.He cited the example of the often inflated cost of public projects both at the stage of tendering and in implementation. “Such practices are, unfortunately, consistent with a wider attitude of self-entitlement towards public resources, which threatens to undermine the principle of self-reliance that has been a cornerstone of our collective development.”
Khama said where there is evidence government will not hesitate to blacklist those whose private greed undermines the country’s ability to deliver for the greater public good.Delivering his state of the Nation Address last week he addressed three factors which are viewed as critical to improving the lives of citizens – poverty alleviation, job creation and citizen economic empowerment.Khama said the rate of poverty had declined over the past two years but remains one of the main challenges to his government. Unemployment and underemployment, especially for young people is another serious challenge. He admitted that the challenges are not new.“Notwithstanding the immediate challenge of the economic downturn, Government continues to be committed to achieving our overarching development goal of transforming ourselves into a high income economy, capable of providing for the wellbeing of all our citizens.” He said to overcome its challenges government has formulated and committed itself to the "Botswana Excellence Strategy for Economic Diversification and Sustainable Growth", which serves as a framework for the country to achieve the objective of reaching high income status, while leaving no citizen behind.Khama said the Action Plan of the Strategic Plan has been incorporated into the new National Development Plan - NDP 10.“To ensure delivery, implementation of the Strategy's key projects and initiatives will continue to be closely monitored from my office and that of the Vice President, with the support of the newly created Government Strategy Development Office and as I announced at my inauguration the Coordinating Office for Poverty Eradication, as well as the Botswana Economic Advisory Council.”
At its core, the Botswana Excellence Strategy recognizes the need for all to adopt a more outward looking mindset that is conducive to accelerated private sector development. The President assured investors of his government's “steadfast commitment to an open society with an open economy in which all who can make a positive contribution are encouraged to do so.” Khama said he also recognized the existence of deterrents to investment. “Inhibitors such as complexities in the tax code, shortage of industry relevant skills and poor labour productivity can and must be overcome as a matter of urgency. In addition to continued reform of the public service, this calls for a further commitment to the promotion of technological innovation, skills training, and a reduction in barriers to starting up and growing businesses.” He said government was also working on reviewing the tax regime to make it more simple and relevant. “Any new regime we put in place will commence in the next tax year.”He said during his tenure employment creation would be driven by the following: the six hubs; Foreign Direct Investment focusing on mining, tourism, agriculture and manufacturing sectors amongst others; import substitution; broadening the tourism and agricultural base; local procurement preference. Government schemes such as CEDA, the Youth Development Fund and the Young Farmers Fund will be given additional resources.He said Government's efforts to promote both domestic and foreign investment will, moreover, continue to go hand in hand with our efforts to promote citizen empowerment. To date the Citizen Entrepreneurial Development Agency (CEDA) loan, equity and credit guarantee schemes have assisted 3,608 projects valued at just over P 2 billion, which are projected to employ 27,820 people. The Local Enterprise Authority (LEA) continues to provide training and advisory services to citizens in entrepreneurship development and technical and business management skills to facilitate the success of small, medium and micro-enterprises.
Khama said commitment to citizen empowerment was further evidenced by additional initiatives, such as the Youth Development Fund, Young Farmers Fund, NAMPAAD, and ISPAAD.He said in a further effort to promote citizen empowerment through local sourcing, CEDA and the Ministry of Trade and Industry have been instructed to prepare a list of companies that produce goods locally. “If the pricing is competitive central government, local authorities and parastatals will be instructed to procure from such companies with immediate effect. This should empower citizens and local companies and help towards growing our manufacturing base,” he said.By AUBREY LUTE
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