Botswana Tenth National Development Plan

1.1 This Chapter is about the country Constitutional Framework of Botswana and its people. It discusses Botswana’s constitutional framework, 1.4 Botswana attained self-governance in administrative structure and international 1965, after 80 years as a British Protectorate links, as well as its physical features. It is and became Independent on 30th September, meant to inform readers who are not 1966. It is a non-racial country and maintains familiar with the country. freedom of speech, freedom of the press and freedom of association, and affords all citizens

1.2 Specifically, the second section of equal rights. All these are enshrined in the this chapter presents the constitutional Constitution of Botswana, which also provides framework and the administrative for a unicameral legislature. Members of the structure, while the third section National Assembly are directly elected from illustrates the physical features of the constituencies. They elect four additional Botswana. The fourth section is about the specially elected members. people of Botswana, including patterns of settlement and main population 1.5 The Presidential candidate of the Party characteristics. with a majority of directly elected members of Parliament assumes office. The President

1.3 Chapter 2 considers population selects his Ministers from among the members and development issues, which are of the National Assembly. The Vice President important for planning, policy-making is nominated by the President, for approval and and interventions aimed at improving the endorsement by members of Parliament, and quality of life. Chapter 3 describes the presides over the Legislature. The President is planning approach and the Macro head of the Executive arm of Government and Development Results Framework presides over Cabinet. He/she must dissolve underlying the Plan. A detailed review of Parliament and hold a general election within economic developments during the last five years of the previous election, and may do Plan period (2003/04 – 2008/09) is so sooner. provided in Chapter 4, followed in Chapter 5 by the macroeconomic strategy 1.6 The first national election was held in to be pursued during NDP 10. Projections 1965. Since then, elections have been held of government revenue, expenditure and every five years since 1969. The Botswana manpower are discussed in Chapter 6. Democratic Party (BDP) won the first election, More information on the review and and has been returned to power on each development of particular thematic areas subsequent occasion. The most recent general and sectors is given in Chapters 7 to 15, election was held in October 2009. Seven and Chapter 16 covers Monitoring and political parties contested the 57 parliamentary Evaluation. constituencies in the 2009 elections, when the BDP won 45 parliamentary seats, the Botswana National Front (BNF) won 6 seats 2 and the Botswana Congress Party (BCP)/ Administrative Structure Botswana Alliance Movement (BAM) won 5 seats and Independent candidate 1.9 The main components of the Central won 1 seat. The rest of the parties did not Government are depicted in Chart 1.1. The win any seats. Most of the councils in Permanent Secretary to the President is the major cities and towns are run by head of the Civil Service. Each Ministry is administrations composed of the ruling headed at an official level by a Permanent party who have won most council wards Secretary. The civil service falls under the and therefore have the majority of seats. Directorate of Public Service Management. Such cities and towns include Gaborone, Lobatse, Francistown and Selibe Phikwe 1.10 Gaborone became the capital city of . Botswana at Independence. The country is divided into administrative districts. The

1.7 There is a Ntlo ya Dikgosi (House Central Government is represented in each of Chiefs), comprising 35 traditional District by the Department of District leaders, which advises on matters Administration, headed by a District affecting custom and tradition, including Commissioner. There are 16 Administrative reviewing draft bills before their Districts and associated Councils as shown in consideration by Parliament. Table 1.1. There are City Councils for Gaborone and Francistown, Town Councils for

1.8 An independent judiciary with a Lobatse, Selebi-Phikwe, Jwaneng and a High Court is presided over by the Chief township authority for Sowa Town Justice. Subordinate courts are Magistrates’ Courts, which have original 1.11 At the local level, District, City and jurisdiction to try all offences except Town Councils have elected councillors and capital offences, such as murder and additional councillors are nominated by the treason. Some cases are heard by local Minister of Local Government. At the political chiefs and headmen, or their level, a Town/City Council is headed by the representatives, and decided in Town/City Mayor, while administratively it is accordance with customary law. The headed by the Town/City Clerk. On the High Court is the appeals court for both political side, a District Council is headed by a branches of the judiciary. A Court Of Council Chairperson and a Council Secretary Appeal deals with appeals from the High on the administrative side. Both the Chief Court. Executives and their supporting staff are recruited by the Department of Local Government Service Management. 3 CHART 1.1: THE BOTSWANA GOVERNMENT ORGANISATIONAL CHART HIS EXCELLENCY THE PRESIDENT JUDICIARY LEGISLATURE EXECUTIVE JUDICIAL SERVICE COMMISSION NATIONAL ASSEMBLY VICE PRESIDENT COURT OF APPEAL CABINET CABINET MINISTERS HIGH COURTS NTLO YA DIKGOSI (HOUSE OF CHIEFS) MINISTRIES MAGISTRATES SERVICE PERMANENT SECRETARIES COMMISSIONS CUSTOMARY COURTS INDEPENDENT MINISTRIES DEPARTMENTS ƒ State President ƒ Auditor General ƒ Finance & Development ƒ Attorney General Planning ƒ Botswana Defence Force ƒ Infrastructure, Science ƒ Botswana Police and Technology ƒ Directorate of Public ƒ Health Service Management ƒ Education & Skills Dev’t. ƒ Ombudsman ƒ Labour & Home Affairs ƒ Directorate on Corruption ƒ Transport and & Economic Crime Communications ƒ Independent Electoral ƒ Agriculture Commission ƒ Trade & Industry ƒ Administration of Justice ƒ Foreign Affairs & ƒ Directorate of Intelligent International Coop. and Security ƒ Environment, Wildlife & ƒ Government Strategy Tourism Development Office ƒ Lands & Housing ƒ Local Government ƒ Minerals, Energy & Water Resources LOCAL AUTHORITIES DISTRICT COUNCIL TRIBAL ADMINSTRATION LAND BOARDS MAYORS /COUNCIL CHAIRPERSON CHIEFS/CUSTOMARY CITY/TOWN CLERKS/SECRETARIES COURT PRESIDENTS LAND BOARD CHAIRPERSON Source: Directorate of Public Service Management 4 Table 1.1 Administrative Districts and World Trade Organisation (WTO), the African councils Union (AU) and regional bodies, such as the Southern African Customs Union (SACU) and District Councils/Administrative Districts the Southern African Development 1 Gaborone Community (SADC). The headquarters of 2 Francistown SADC is located in Gaborone. 3 Selebi-Phikwe 4 Lobatse GEOGRAPHY AND ENVIRONMENT 5 Jwaneng 6 Sowa Township Physical Features 7 Southern 8 South East 1.13 Botswana is a landlocked, semi-arid 9 Kweneng country of 582,000 square kilometres, about 10 Kgatleng the same size as Kenya and France. It shares a 11 Central border with Zimbabwe, South Africa, Namibia 12 North East and Zambia. Map 1.1 shows Botswana’s 13 North West location within Southern Africa, while Map 1.2 14 Chobe provides a more detailed look at the Republic 15 Ghanzi of Botswana. 16 Kgalagadi

1.14 The country is relatively flat, at roughly Source: Independent Electoral Commission 900 metres above sea level, with gentle undulations and occasional rocky outcrops. International Links Botswana’s physical environment of dry, mainly sandy and poor soils accounts for its

1.12 Botswana plays a full role in the varied population distribution. The population international community. The country is is concentrated in the eastern parts of the a member of various international country. These are better suited for arable organisations, such as the United production due to relatively favourable Nations, the World Bank, the climatic and soil conditions. International Monetary Fund (IMF), the 5 Map 1.1: Location of Botswana in Southern Africa

1.15 Due to the semi-arid climate, most southern hemisphere, in the interior of rivers and streams in Botswana are Southern Africa and away from oceanic ephemeral, most valleys are usually dry, influences, rainfall is low and temperatures except during the rains. Perennial rivers are high. There is high inter-annual include the Okavango and Chobe, which variability of rainfall, and drought is a have their sources outside the country. The recurring element of Botswana’s climate. Makgadikgadi Pans represent the inland Drought adversely affects the already fragile drainage basins into which some rivers, food and agricultural situation in the country such as the Mosetse, Nata and Boteti, flow and seriously impairs the rural economy and during the wet seasons. socio-cultural structures. However, the Government has a well thought out and well tested way of coping with drought. Climate

1.16 Because of the country’s location in the sub-tropical high pressure belt of the 6 Temperatures Chobe District in the north has comparatively high rainfall and therefore

1.17 The mean monthly maximum sustains belts of indigenous forest and dense temperatures range between 23 C to 25OC O bush and some exploitable hardwood in the northern parts of the country and resources. The Makgadikgadi pans, located 21OC to 23OC in the Southern parts. The further south are surrounded by treeless lowest mean monthly temperatures vary grass savannah. The mophane tree between 1OC to 5OC over the eastern areas dominates the north-east and the hinterland and 5OC to 7OC in the northern parts of the of the Okavango, while more than half of country. The highest mean monthly the country supports scrub and tree temperatures range between 22OC and 24OC savannah. The tallest trees and most dense and are recorded in the month of January. forest are found in areas where there are good rains and best soils, while drier Vegetation and Soil regions, mostly in the south and western parts of the Kalahari, support only a low

1.18 Vegetation types are closely correlated scrub savannah. Low rainfall and poor soils with climate as a comparison of Map 1.3 are found particularly in the Kalahari, so (rainfall) and Map 1.4 (vegetation) shows. that the rangeland supports, at best, low The vegetation, apart from the bush density livestock and wildlife. Rangeland swampland of the Okavango Delta, is sparse degradation occurs when the carrying because of long, dry periods each winter capacity is exceeded, leading to a change in season and recurring summer drought. The the vegetation patterns of the range. 7 Map 1.2: Republic of Botswana 8 Map 1.3: Annual Rainfall Distribution 9 Map 1.4: Vegetation of Botswana 10 Natural Resources

1.19 The natural beauty of Botswana is at Selebi-Phikwe, Selkirk, Phoenix and found in its wilderness, wildlife and cultural Mowana; and other potentially exploitable diversity. It includes range and arable land, copper resources are known to exist. The a large wildlife population, and a variety of exploration for gold deposits has, minerals. Some of the last great populations particularly at Mupane, resulted in proven of wild animals left in Africa are found in reserves of approximately 795,000 ounces Botswana; they constitute a tourist attraction of gold which can be extracted in a space of that has yet to be fully exploited. More at least five years. Mining of coal at importantly, they make an important Morupule is relatively small-scale at contribution to the subsistence economy of present, but reserves of billions of tonnes the country. Large areas of the country are have been proven. Salt and soda ash designated as National Parks and Game deposits at Sua Pan, which are effectively Reserves, as shown in Map 1.5. In addition, unlimited, are now being exploited. a considerable amount of game is found outside the reserves, although the wildlife PEOPLE population has been depleted in the more populated areas. Of particular importance Main Population Characteristics for tourism are the Chobe National Park, which contains massive concentrations of 1.21 Population characteristics presented in large game, and the Okavango Delta, which, this chapter are based on the 2001 besides its outstanding natural beauty, teems Population and Housing Census, the most with wildlife. Livestock agriculture and recent national census. The 2001 census game often represent competing uses of yielded a de facto population count of marginal land. Careful management is 1,680,863, compared with 1,326,796 in required to ensure that such land is used to 1991. The population was estimated at 1.8 its best advantage. million in 2008.

1.20 A lot of mineral exploration has 1.22 Botswana’s population grew at an been undertaken in recent years, and much average annual rate of 2.4 percent during the continues to be discovered about inter-census period between 1991 and 2001, Botswana’s mineral resources. The thick slowing down substantially from the rates of sand covering much of the country obscures natural increase recorded in the earlier the underlying geology, although the eastern population censuses. While the AIDS part of the country is relatively well mapped pandemic contributed to the decline in the geologically. Diamond mines at Orapa, rate of population growth in recent years, Letlhakane, Jwaneng and the “B/K pipes” there was a decline in the growth rate even near Orapa and Damtshaa are in production prior to the onset of the HIV/AIDS era. The and continue to be the main source of current estimate of the population growth revenue for the economy. Copper-nickel is rate is approximately 1 percent. mined 11 Map 1.5: National Parks and Game Reserves 12

1.23 Factors such as declining infant and reflected in the fertility rate declining from child mortality rates, declining fertility rates, very high levels in 1971 and 1981, and an increased female participation in economic increasing mortality rate and decreasing life activities, increased literacy rates, access to expectancy over the decade from 1991 to better healthcare, etc., have had a profound 2001. There has been a notable decline in all effect on population growth. A summary of the fertility indicators since 1981. Life the demographic indicators that emerge from expectancy at birth, which had increased a comparison of the 1971, 1981, 1991 and from 55.5 years in 1971 to 65.3 years in 2001 censuses is presented in Table 1.3. The 1991, decreased to 54.4 years in 2006 as a main demographic features of Botswana’s result of HIV/AIDS. population over the past 30 years are 13 Table 1.2 Demographic Indicators: 1971 to 2006 Population Characteristics Census Census Census 1998 Census 2006 Botswana 1971 1981 1991 Botswana 2001 Demo- Demo- graphic Survey graphic Survey Enumerated Population 574,094 941,027 1,326,796 1,588,745 1,680,863 1,773,240 Male 262,121 443,104 634,400 749,000 813,583 851,655 Female 311,973 497,923 692,396 840,000 867,280 921,585 Non-Batswana 10,861 15,677 29,557 42,00 60,716 59,245 Botswana Nationals Abroad 45,735 42,069 38,606 * 28,210 * Male (000's) 36.7 32.6 27.9 * 16.8 * Female (000's) 9.1 9.4 10.7 * 11.4 * Population Distribution (%) 0-4 17.6 18.8 14.6 12.6 11.6 12.0 5-14 29.9 28.8 28.6 27.3 25.0 23.4 15-64 46.9 47.6 51.8 54.6 58.2 58.2 15-49 39.4 40.8 45.5 47.9 52.0 52.3 65+ 5.6 5.1 4.9 5.5 5.0 5.0 Percentage of Females aged 15- 42.8 42.9 46.5 49.4 52.4 52.7 49 (out of total females) Dependency Ratio (per 100) 113 110 93 83 72 68 Child-woman Ratio (per 1000) 759 819 602 430 442 Sex Ratio (Males per 100 84.0 89.0 92.0 89.0 93.8 92.4 Females) Percentage Urban 9.0 17.7 45.7 45.0 54.2 59.6 Population Density (per km) 1.0 1.6 2.3 2.7 2.9 3.0 Birth, death and fertility rates Crude Birth Rate (per 1000) 45.3 47.7 39.3 28.9 29.7 Crude Death Rate (per 1000) 13.7 13.9 11.5 10.1 12.4 11.2 Natural Rate of Increase (% per annum) 3.1 3.4 2.7 * 1.7 1.9 General Fertility Rate (per 1000 women aged 15-49) 189 210 161 * 107 108 Mean age at childbearing 30.5 30.6 30.0 * 30.3 * Total Fertility Rate (births per 6.5 6.6 4.2 3.4 3.3 3.2 woman) Infant Mortality Rate 97 71 48 51 56 48 Child Mortality Rate 56 35 16 17 19 26 Under 5 Mortality 152 105 63 67 74 76 Life Expectancy at Birth 55.5 56.5 65.3 62.0 55.7 54.4 (years) Males 52.5 52.3 63.3 59.6 52.0 48.8 Females 58.6 59.7 67.1 64.5 57.4 60.0 Mean Age (years) 23.4 22.7 23.0 * 24.8 25.2 Males 22.6 22.0 22.4 * 24.2 24.1 Females 24.1 23.4 23.5 * 25.3 26.3 Median Age (Years) 15.0 15.3 16.8 * 20.1 21.9 Males 13.5 15.0 16.0 * 19.4 20.0 Females 16.7 16.5 17.4 * 20.8 22.7 Note: * indicates that data are not available from the Surveys Source: Central Statistics Office: National Censuses 1971, 1981, 1991 and 2001; 1998 and 2006 Botswana Demographic Surveys 14 CHAPTER 2 POPULATION AND DEVELOPMENT INTRODUCTION development path until the year 2016. The Vision outlines what Botswana aspires to be

2.1 Population and development issues, by 2016 by identifying pillars to be reached, and their economic and social ramifications, as well as challenges and opportunities that are important for planning, policy-making should be exploited to attain the national and interventions at all levels. They matter for aspirations. The Vision outlines the addressing population welfare concerns country’s aspirations as being a nation that regarding the quality of life and standard of is “educated and informed”, “prosperous, living, and for the achievement of productive and innovative”, “compassionate, development goals. Therefore, countries and just and caring”, “safe and secure”, “open, the international community at large democratic and accountable”, “moral and frequently formulate and implement tolerant” and “united and proud”. The population and development policies and Vision recognised that it would be necessary programmes, such as the International “to manage population growth in Botswana Conference on Population and Development - if its people are to be adequately catered for 1994 Plan of Action and the Millennium in terms of education, health and service Development Goals (MDGs), and provision.” It also acknowledged that periodically monitor the achievement of their “Botswana has a small population with a goals and targets. large resource base.” This can be seen as an advantage in that changes can be introduced

2.2 Botswana’s concerns over population more quickly. and development issues date back to Independence. The first National 2.4 The intricate interrelationships Development Plan (NDP) (1968-73) had, as between population and development have its major objective, the goal “to raise the been the subject of discussion and debate at standard of living of the people of Botswana.” a number of international conferences. The same commitment was reiterated in the However, a consensus was developed at the following NDP (1970-75), which observed 1974 World Population Conference in that “if it proves feasible to restrain Bucharest, and re-affirmed at the 1984 population growth, it should be possible to International Conference on Population. The achieve a systematic improvement in the conferences agreed on the need to consider overall standard of education, which is a the broad issues of the interrelationships fundamental prerequisite to attaining high per between population and sustained capita productivity and, hence, income.” development. The 1994 International Conference on Population and Development

2.3 Vision 2016 added new dimensions to built on this consensus, but with a broader the population and development concerns in mandate on development issues, reflecting Botswana. The importance of having a long the close relationships between population, term development planning perspective has poverty, patterns of production and been recognised from the early years of consumption and the environment, Botswana’s Independence. The National underscoring that none of these issues can Vision 2016, “A Long Term Vision for be considered in isolation. Botswana: Towards Prosperity for All”, provides a blueprint for the country’s 15

2.5 This paradigm shift reflects the needed to meet or exceed the MDGs, along recognition that population as a factor and a with the associated costs of doing so, and beneficiary of development is central to social the most feasible way of financing these and economic planning and, therefore, must be interventions. This MDG needs assessment integrated into the mainstream development and costing exercise is, therefore, planning process. As a result, Government fundamentally about the meaningful adopted a comprehensive, multi-sectoral integration of MDGs into National National Population Policy in 1997. The Policy Development Plan 10 to ensure that provides a framework to ensure that the Botswana accelerates progress to achieve dynamics of population and development are both the National Vision 2016 objectives taken into account in mapping out long term and MDG goals. Some details of the prospects. Since the impact of policies and progress made with respect to the MDGs are programmes cannot be evaluated realistically provided in the following section. within the medium-term time frame, a long term planning perspective, such as Vision PROGRESS TOWARDS THE 2016, is necessary. The National Population MILLENNIUM DEVELOPMENT Policy has been reviewed to align it with the GOALS (MDGS) latest developments, including the MDGs.

2.8 The MDGs to be achieved by 2015

2.6 In 2000, the Government of overlap considerably with the goals of Botswana, along with other governments, Vision 2016. The report of Botswana's signed the Millennium Declaration. Most Millennium Development Goals Based importantly, the declaration committed Strategies has provided estimates of the cost Botswana to alleviating extreme poverty and of the programmes needed to reach the its related socio-economic problems. The MDGs. These have been incorporated into Declaration commits countries to achieve National Development Plan 10 to the extent eight goals by 2015. These include: possible, given the public expenditure “eradicating extreme poverty and hunger”; strategy adopted on the basis of the “achieving universal primary education”; government revenue that will be available “promoting gender equality and empowering during NDP 10 (see Chapter 6). Progress women”; “reducing child mortality”; towards the MDGs includes the following: “improving maternal health”; “combating HIV/AIDS, malaria and other diseases”; • Eradicate extreme poverty and hunger. “ensuring environmental sustainability”; and The proportion of people living below “developing global partnerships for the Poverty Datum Line fell from 49 development.” percent in 1993/94 to 30 percent in 2002/03, and is estimated to have

2.7 The resource needs to achieve these declined further to 23 percent by the end goals are substantial. The 2005 United of NDP 9. The percentage of children Nations World Summit of the Millennium under the age of five, who were Development Goals recognised this challenge underweight for age, was reduced from and called on countries to “develop and adopt 12.4 percent in 2000 to 4 percent in by 2006, and implement comprehensive 2006. national development strategies to achieve the • Universal primary education. In 2004, the internationally agreed development goals and net enrolment rate for the primary school objectives, including the Millennium age group, those between 7 and 13 years, Development Goals.” Botswana has was 98.5 percent. The Ministry of undertaken a detailed inventory of the full Education and Skills Development range of public interventions and investments 16 (MOESD) uses the statistic for net 100,000 live births in 2006 compared to enrolment of those between 6 and 12 years 326 in 1991. The Government aims to (89.5 percent). These high attendance rates reduce maternal deaths to 150 per were achieved despite education not being 100,000 live births by 2011. Some compulsory, although there are no fees for progress has been made, but it has been government primary schools. made more difficult by the high • Promotion of gender equality and the HIV/AIDS prevalence among women in empowerment of women. Botswana's the reproductive age group. This is so performance improved, or remained despite improvement in the high satisfactory, on several of the measures of proportion of births attended by skilled gender equality and female health personnel, which was 97 percent empowerment. The ratio of girls to boys in 2000 and 96.1 percent in 2003. in primary and secondary education • Combat HIV/AIDS, malaria and other remained above 100 percent, as did the diseases. There has been some ratio of young literate females to males. improvement with respect to HIV There was also an improvement in the prevalence, for the first time in many percentage of women employed in the years. HIV prevalence among pregnant non-agricultural sectors of the economy: women aged 15-49 decreased from 37.4 from 38.4 percent in 1995, to 40.2 percent percent in 2003 to 32.4 percent in 2006. in 2000, and 42.4 percent in 2006. In The HIV prevalence rate for the adult contrast, the percentage of women in population of reproductive age (i.e., Parliament dropped to 6.55 percent in those aged between 15 and 49) was 29 2009, from 11 percent in 2004. percent in 2002, 31 percent in 2003 and • In addition, progress was made during 28 percent in 2005. [Botswana Second NDP 9 on the following: Generation HIV/AIDS Surveillance ¾ Gender mainstreaming in line Technical Report, 2006]. HIV ministries; prevalence among the 15-19 year age ¾ Some laws amended to make them group has fallen from a peak of over 30 gender responsive; percent in 1995, to 17.5 percent in 2006. ¾ Reviews of gender in sectoral There has also been a recent fall in HIV policies; and prevalence among those aged 20-24, ¾ Ratification and acceding to regional from 30.6 percent in 2003, to 29.4 and international instruments on percent in 2006. This suggests that gender. Government’s extensive HIV and AIDS ¾ Reduction of infant and child information, education and mortality. As noted in the section on communication campaign has had some health below, HIV/AIDS reversed salutary effects on behavioural change progress made previously in reducing among younger people. both infant and child mortality. Infant • However, HIV prevalence remains high. mortality increased from 48 per In part, this could be attributed to a thousand live births in 1991, to 56 per positive impact that the availability of thousand in 2001. Similarly, the free Anti-Retroviral (ARV) therapy has mortality rate for children under five had in prolonging the lives of people increased from 63 per thousand in living with HIV. The incidence of 1991, to 74 per thousand in 2001 tuberculosis has tended to get worse in (Table 1.2). recent years, because HIV/AIDS reduces • Improvement of maternal mortality rates. resistance to this and other diseases, The maternal mortality rate was 167 per 17 although there was a slight reduction in Information and Communication the incidence of tuberculosis in 2005. Technology (ICT), and reducing the • Ensure environmental sustainability. specific problems faced by Botswana as Progress with respect to environmental a landlocked country. With respect to sustainability was made on a number of technology, Botswana is ranked seventh fronts during NDP 9, including the in Africa and 66th out of 133 countries introduction of State of Environment globally, according to the Global reporting and the production of natural Competitive Index 2008. While this resources accounts for livestock, minerals relative position appears moderately and water, in order to mainstream attractive, there is an urgent need to environmental issues into the planning improve the ICT infrastructure for all process. In addition, Environmental businesses, in particular if Botswana is Impact Assessment (EIA) legislation to increase those service exports which came into force in May 2005, along with rely on improved access to the internet. the subsequent promulgation of This is particularly relevant in environmental regulations. Government overcoming the impediments to also ratified several multilateral development inherent in being a environmental agreements, including: a landlocked country. National Action Plan under the United Nations Convention to Combat POPULATION SITUATION AND Desertification; a Biodiversity Strategy DEVELOPMENT PROSPECTS and Action Plan under the United Nations Convention on Biological Diversity; and Population Size and Growth the designation of the Okavango Delta as a Wetland of International Importance. 2.9 Botswana’s population has increased Also, the Okavango Delta Management over the years, from 574,000 in 1971, to Plan was developed and adopted. 941,000 in 1981, 1,327,000 in 1991 and • Some environmental problems remain, 1,681,000 in 2001. The rapid growth from however, including: the absence of 1971 to 1991 was the result of the country’s legislation for coordinated environmental high birth rate and declining mortality rates, management planning; the absence of which were due to the improved health of district environmental coordinators; the population. However, since 1991 the rate inadequate institutional capacity at the of population growth has been declining, Department of Environmental Affairs, growing only 2.4 percent per annum over which results in delays in reviewing and the decade to 2001. A declining trend in the approving EIA reports; the lack of growth rate of the population is projected capacity to develop natural resource out to 2016. The population is projected at accounts, resulting in gaps in the 1,776,000 in 2008 and 1,977,000 by 2016. accounts; and the absence of recycling of wastewater and waste materials in urban Fertility areas. • Develop global partnership for 2.10 The total fertility rate (i.e., the development. This goal involves average number of children that would be developing an environment conducive for born to a woman over her lifetime) declined beneficial trade and foreign direct sharply from 6.6 children per woman in investment (FDI), cooperating with the 1981 to the 1991 level of 4.2, and to a private sector to make available the current level of about 3.3. This decline has benefits of new technologies, especially been rapid and the total fertility rate is now lower than the stated population policy 18 target of reducing fertility to 3.4 by 2011. The the institution of marriage is declining. Only thrust of the revised population policy will 17% of the females eligible for marriage change from trying to encourage lower were actually married in 2001, in contrast to fertility to that of maintaining fertility at a 44.4 percent and 41.5 percent in 1991 and level above the population replacement level. 1981, respectively. Related to this, the number of never-married men and women Mortality Rates has steadily increased over the three census periods 1971-2001.

2.11 Along with the declining total fertility rate, there is evidence of increasing mortality Population Age Structure and rates. Mortality rates have increased in recent Momentum for Growth years after a sustained decline during the period from Independence to 1991. The crude 2.14 Botswana has a relatively young death rate increased from 11.5 to 12.4 per population, with 35.6 percent of the 1000 between 1991 and 2001, reversing population aged below 15 in 2006, down somewhat the earlier gains. Infant mortality from 47.5 percent in 1981, 43.2 percent in has also increased from the low of 48 per 1991 and 36.7 percent in 2001. The 1000 in 1991 to 56 per 1000 in 2001. The declining proportion of those aged under 15 increases in mortality rates have impacted in the total population is due to the heavily on the life expectancy at birth. After a combined effects of increased child and sustained increase from 55.5 years in 1971 to infant mortality because of HIV/AIDS, a 65.3 years in 1991, life expectancy declined lower fertility rate due to the use of dramatically to 55.5 in 2001, and declined contraceptives among women of further to 54.4 in 2006. The increases in reproductive age, and greater participation mortality rates and reduced life expectancy of women in the mainstream economy. are largely due to the impact of HIV and Despite the declining share of the total AIDS. The financial and human resources population, the youthful structure of the needed to fight the HIV/AIDS epidemic have population has important implications for been substantial, diverting resources from the education, training and skills other socio-economic challenges facing the development of the youth, as they move into country. the labour market, seeking employment. A disturbing picture for youth employment has

2.12 Despite the continuing decline in the already emerged, with the 2006 population growth rate and the total fertility Demographic Survey showing that 66 rate, the population of Botswana will percent of those aged 15-19 were continue to grow for some years to come, unemployed, and 55 percent of those aged largely due to the built-in momentum of 20-24. growth arising from high fertility of the past years and the youthfulness of the population. 2.15 The working age population (i.e., those aged 15-64) more than doubled Marital Status between 1981 and 2006. The annual growth rate of the working age population, of 3.4

2.13 The marital status of the population percent between 1981 and 1991 and 3.5 has changed considerably over the past three percent between 1991 and 2001, was higher decades, reflecting the significant changes than the growth rate of the population. In that have occurred in social relations and 1981, 47.6 percent of the population was of family structure. Data from the 2001 working age. The proportion increased to population and housing census indicate that 58.2 percent in 2001 and 59.2 percent in 2006. The increase in the working age 19 population presents major challenges in terms non-agricultural activities. The proportion of of providing job opportunities in order to the population living in urban areas had achieve the Vision 2016 goals of full grown dramatically from 9 percent in 1971 employment and elimination of poverty by to 54.2 percent in 2001 and 57.4 percent in 2016. 2006. It is projected to reach 65 percent by 2011. Rapid urbanisation is often associated

2.16 The changing age structure of the with increasing urban poverty, rapid growth population has several major policy of slums, growth in informal sector activities implications. The increasing share of the and rising crime rates, among others. total population comprising the working age Through planned settlement development, population has reduced the dependency ratio Botswana has avoided the development of (i.e., the ratio to those aged 0-14 and 65+ to slums. Urbanisation also presents a wide those age 15-64) dramatically, from over 1.12 range of opportunities, including increased in 1981 to 0.94 in 1991 and further to 0.72 in access to public and private services, such as 2003. This decline is mainly due to the rapid health and education. In addition, increase in the working age population and urbanisation will present opportunities for the decline in the proportion of children under the development of markets and enterprises age 15 in the total population. in cities and towns.

2.17 A second major demographic change involves the increasing urbanisation of youth. 2.20 The Revised National Population About 61.2percent of the youth (those age 15- Policy will address the challenges and 29) lived in urban areas in 2001 compared to opportunities of rapid urbanisation, and the 55.5percent in 1991. Thus, while youth implications of the changing population numbers are increasing, they are increasingly distribution on achieving the development becoming concentrated in urban areas where planning objectives and improving welfare. education services and job opportunities are As they have in the past, these evolving more available. population distribution patterns will undoubtedly impact on development Migration, Population Distribution and planning at the national level across all Urbanisation sectors, as well as at the local level for both rural and urban areas.

2.18 Migration and population trends in Botswana have important implications for the 2.21 While some of urban population quality of life of people in urban and rural growth is due to natural increase, a high areas which warrant special attention. proportion results from migration from rural Botswana has been rapidly urbanising. areas of persons in search of better life and Urbanisation is an inevitable consequence of services, and to the reclassification of economic development that must be formerly rural areas into urban areas. The recognised and provided for. Rapid policy environment to manage this trend has urbanisation gives rise to increasing demand been improved. The Rural Development for urban-based services, such as housing, Policy of 2003 is aimed at guiding, water and energy, which will require more harmonising and coordinating sectoral and financial and human resources. other rural development activities. The development of the rural areas will make

2.19 Botswana defines an urban area as any them more attractive to investment, which locality with 5,000 or more inhabitants, with can serve to provide job opportunities in the at least 75 percent of its workforce engaged in rural areas. 20

2.22 In addition, the National Settlement augment groundwater resources, major dams Policy was adopted in 1998 with a goal to have been proposed at Dikgatlhong, Thune, ‘provide a comprehensive set of guidelines Lotsane and Mosetse. The North-South for national physical planning and to provide Carrier II pipeline project should be started a framework for guiding the distribution of before the end of 2009. The completion of investment in a way that reflects the these projects will contribute to economic settlement’s population size, economic growth and the achievement of the Vision potential, level of infrastructure and role as a 2016 pillars, including access to safe service centre’. The National Settlement drinking water in line with the MDGs. In Policy has as its goal ‘reducing the rate of 2000, 98 percent of the population had migration to towns’ by providing, where it is access to safe drinking water, up from 77 practical: percent in 1996. • similar levels of infrastructure and services to villages that are on the same Health hierarchical level with towns • incentives for the location of job creating 2.26 Provision of sexual and reproductive activities in rural areas and villages health services, including family planning, • access to loans and financial resources of will continue to receive emphasis. The those living in rural areas and villages. demand for such services continues to grow with the increase in number of women of

2.23 A further challenge involves the issue reproductive age (15-49). A number of of increased international migrants, which achievements have been made in this area, will need to be addressed with strategies to as noted in the paragraphs above on progress maximise the benefits and minimise the costs towards the MDGs. In addition, use of associated with the new trends of modern methods of contraception has international migration. increased, from 32 percent in 1984 to 44 percent in 2001. Population and Water Resources

2.24 Water is a scarce resource in Botswana owing to recurring drought conditions. Demand for water has increased considerably in urban areas where the population is growing rapidly. Increased consumption, combined with a very limited national recharge rate, requires constant sinking of new boreholes, leading to a significant fall in the groundwater table. To complement the underground water resources, Government completed the North- South Water Carrier project to transfer water from Letsibogo Dam in the north to the greater Gaborone area.

2.25 During NDP 9, Government undertook a number of water projects, including the Ntimbale Dam and its treatment works and pipeline. In a further effort to 21 Chart 2.1 Infant Mortality Rate under 5 years Chart 2.6: Infant Mortality Rate (IMR), Under 5 Mortality Rate (U5) per thousand and Life Expectancy (LE) in years 200 150 100 50 IMR U5 LE 0 1971 1981 1991 2001 2006 Source: Central Statistics Office of similar economic stature. The 2004

2.27 Programmes aimed at reducing Millennium Development Goals Status teenage child bearing are having some of the Report notes that “in Botswana, poverty is desired results. Evidence is provided by the fundamentally a structural problem. It is a downward shift in teenage fertility from 96.6 consequence of a narrow economic base, births per 1000 teens aged 15-19 in 1991 to which limits opportunities for gainful 64.0 in 2001. Estimates for 2007 show a employment; a poor endowment of agro decline in teenage fertility to 52.1 births per resources; (and) a small and sparsely 1000 teens, from 237 in 1988. The distributed population.” Collectively, these downward trend in teenage fertility points to attributes translate into limited capacity for the desire to delay pregnancy or to decide sustainable employment creation and poverty against childbearing altogether. Teenage reduction. females are often at high risk of pregnancy complications, low birth weight, premature 2.29 As noted in paragraph 2.9, the babies and unsafe abortions. poverty rate fell from 49 percent in 1993/94, to an estimated 23 percent by the end of NDP Population and Poverty 9. Poverty has a moderate gender bias. In 1993, 50 percent of female headed

2.28 The Revised National Policy on Rural households were poor compared to 46 Development was adopted in 2002. Its aim percent for male headed households. The is to reduce rural poverty, promote immediate causes of poverty identified by the sustainable livelihoods, stimulate rural Botswana Institute for Development Policy employment and income generation, Analysis (BIDPA) in 1996 include: diversify the rural economy, reduce unemployment and underemployment, which dependence on Government, and maintain are primarily determined by lack of and improve rural capital. Despite education and skills; ill health, in particular Botswana’s economic achievements over the HIV/AIDS, which takes people out of work last 40 years, the country still faces serious (both those who are sick, and their carers), challenges of poverty compared to countries destroys accumulated wealth and creates new 22 groups of vulnerable people; lack of access primary school drop-outs and 50 percent of to productive assets such as land, water and secondary school drop outs. finance; and lack of access to markets. POPULATION AND DEVELOPMENT

2.30 To continue its fight against poverty POLICY AND STRATEGY FOR NDP 10 and alleviate its impact, the Government adopted the National Poverty Reduction 2.33 Past National Development Plans Strategy in 2003. This aims to link and repeatedly emphasised the importance of harmonise anti-poverty reduction initiatives, reducing population growth because it was provide opportunities for people to have viewed as a factor that can retard economic sustainable livelihoods through expansion of growth and rising per capita incomes in the employment opportunities and improved country. The reduction of population growth access to social investment, and to monitor to enhance human resources development progress against poverty. Other schemes and productivity was singled out as one of which contribute directly to poverty the five strategic priorities of Government in reduction include the Citizen the 1997-2003 planning period. Entrepreneurship Development Agency (CEDA), and various welfare programmes 2.34 The demographic developments that such as the 1980 Destitute Allowance took place from 1997 to 2009 necessitated a Programme and the Old Age Pension revision of the 1997 National Policy on Scheme. Population and Development. Supported by sustained high economic growth, these Population and Education developments included rapid urbanisation and other population movements,

2.31 Education has been a key improvements in the delivery of social development priority for Botswana since services, particularly health and education, Independence. The Revised National Policy promotion of reproductive health and on Education of 1994 emphasised that development of programmes for combating Botswana’s principal education goal is to the spread of HIV/AIDS and addressing its produce a competent and productive social and economic impact. Most crucially, workforce. Government also recognises that the rate of growth of population was education is an important factor in achieving estimated to have fallen to about 1 percent by human development. By informing citizens, the end of NDP 9, so that the old policy of education sets the stage for awareness about trying to reduce the rate of growth of individual rights and responsibilities. population is no longer considered relevant. Botswana has made great strides in The Revised National Population Policy will educational development over the years. For emphasise improving survival rates for example, there was an increase in literacy infants, and for women throughout their rates from 68 percent in 1993/94 to 83 reproductive years. percent in 2007/08.

2.35 The National Population Policy was

2.32 Primary school enrolments have further revised and updated to align it with remained high for Botswana, as noted in achievement of the MDGs and Vision 2016. paragraph 2.10. A major challenge in the It emphasises the importance of investment remote areas is pupils who drop out of school in human capital and in social development. for a number of reasons, including desertion Investments in education, training and (students leaving without giving a reason), development of skills, creation of illness, pregnancy, expulsion and death. In employment opportunities, housing, public 2003, desertion constituted 84 percent of health and social security systems will 23 empower families and individuals to improve 2.39 Sustained high economic growth will the quality of their lives. The revised Policy help in meeting the pressures resulting from will soon be submitted to Parliament for (a) the deterioration in the quality of life due endorsement /approval. to HIV/AIDS and other diseases, and (b) changes in the composition of the population

2.36 Implementation of the revised Policy and rapid urbanisation. Emphasis should will require concerted efforts by the various continue to be placed on investment in multi-sectoral stakeholders, with the Ministry human capital development (e.g., education, of Finance and Development Planning training and building of skills and (MFDP) playing a coordinating role. The entrepreneurship) as a strategy for economic multi-sectoral National Council on diversification and for the empowerment of Population and Development will oversee the individuals and families. This is intended to policy’s implementation. District structures enable them to address their health, social have been established to coordinate and economic needs, and thereby improve implementation of the revised Population their welfare. Such investments will foster Policy at the district level, as well as to the behavioural change needed to help ensure integration of population parameters Botswana win the war against HIV/AIDS. in the local planning processes.

2.40 There is need for developing relevant HIV/AIDS capacities for the management of population programmes, and for monitoring and

2.37 The HIV/AIDS pandemic has led to evaluating their outcomes and impacts, and increases in mortality rates, particularly for for coordination of activities aimed at infants and adults of reproductive age. This achieving the population policy objectives. has impacted negatively on the quality of The existing population institutions, which life, and run counter to the National are structured around the rationale of Population Policy’s objectives, for example restraining population growth, will have to of reducing infant mortality to 27 per 1000 adapt to the changing direction of policy. live births and increasing life expectancy at birth to 71 years by 2011. The reverses in 2.41 Successful implementation of a some of these quality of life indicators have broad-based population policy will be largely made some of the Vision targets unattainable determined by the institutional, human and by 2016. The Population Policy’s goals must organisational capacities to: be revisited to take into account these • Efficiently manage and implement realities. programmes to achieve policy objectives; • Accumulate information for monitoring CONCLUSION and evaluation of programmes, for further policy and programme

2.38 The emergence of the HIV/AIDS developments, and for the integration of pandemic has reversed some of the hard population parameters in development earned gains of past development plans. The planning; disease affects mostly the productive segment • Undertake research on population issues of the population. The disease also diverts and their linkages to social and economic resources that could have otherwise been used development; and for other development endeavours. • Develop tools for coordination of Government will continue, therefore, to population and development activities explore more sustainable and cost effective across all sectors. delivery of services. 24 CHAPTER 3 NDP 10 PLANNING APPROACH AND MACRO DEVELOPMENT RESULTS FRAMEWORK INTRODUCTION

3.1. Botswana’s tradition of multi-year individuals and institutions in the country. economic planning dates back to the time of The Tenth National Development Plan Independence, with the drawing up of (NDP 10) represents the blueprint of the Botswana’s Transitional Plan for Social and National Vision, outlining the policies and Economic Development. Since then, key programmes aimed at achieving the successive National Development Plans Vision 2016 objectives during the 2009 to have aimed at guiding the development of 2016 period. Achievement of the Vision Botswana’s economy and drawing up objectives requires all stakeholders, whether programmes of public expenditure on Government departments, various private recurrent and development projects, based sector organisations, political parties, non- on projected revenue resources of the governmental organisations, families, Government. Botswana has undergone a parastatal organisations, Parliament and tremendous transformation over the 42 years others, to play active and effective roles in since Independence, but the basic approach the development process. NDP 10 has been to national development planning remains developed with the active participation of based on the enduring national principles of non-state actors through the setting up of democracy, development, self-reliance, Thematic Working Groups (TWGs). This and unity. These principles are as relevant was to ensure that all development partners today as they have always been. But, they are intimately involved in the planning have been augmented with the Vision 2016 process, as well as during the principle of ‘Botho’, which is engrained in implementation, monitoring, evaluation and Setswana culture, and refers to a state of reporting stages of the Plan. being humane, courteous and highly disciplined in one’s endeavours to achieve NDP 10 PLANNING APPROACH one’s full potential as a human being, while encouraging social justice for all. These five 3.3. The preparation process for the tenth national principles set the stage for the National Development Plan (NDP 10), planning objectives of sustained which covers the period from April 2009 to development, rapid economic growth, March 2016, was guided by a multi-sectoral economic independence and social justice, reference group. This is comprised of, which are to be pursued throughout National among others, government officials from the Development Plan 10. Ministry of Finance and Development Planning, the Office of the President and

3.2. Vision 2016 represents Botswana’s other Ministries, together with strategy to achieve socio-economic and representatives of the private sector, trade political development that will transform the unions, non-governmental organisations, the country into a competitive, winning and Vision 2016 Council and the Bank of prosperous nation. The Vision reflects the Botswana. The process of preparing the Plan aspirations of Batswana about their long- commenced with Ministries and term future and is a result of extensive Independent Departments being requested to consultations with a wide spectrum of submit critical issues that emerged during 25 the implementation of NDP 9, and extensive 3.6. The procedure followed by stakeholder consultations, that culminated in Government in the preparation of National the development of a Keynote Policy Paper Development Plans is designed to foster (KPP) prepared by the Ministry of Finance participation of key stakeholders in the and Development Planning. The KPP set out planning and project formulation process. the critical macro policies, programmes and This involves defining the general focus of strategic issues that must be addressed by the Plan, priority areas, Plan strategies, the Plan. sectoral policies and expenditure programmes. Ministries, in preparing their

3.4. This was followed by Sectoral sectoral chapters, take into account the Keynote Issues Papers (SKIPs), prepared by current policy priorities, such as public Ministries and agencies, also in consultation sector reforms, including initiatives such as with stakeholders, reviewing their NDP 9 privatisation, Performance Management sectoral areas and presenting the crucial Systems (PMS), and the resultant Ministerial issues and strategic challenges, including Strategic Plans, and align their submissions policies and programmes, that must be with the Vision 2016 goals and objectives. addressed in their respective areas of responsibility. On the basis of these SKIPs, 3.7. Subsequent to that, guidelines were and the comments received on them from issued for the drafting of the Chapters of stakeholders, the Ministry of Finance and NDP 10, which went through similar stages Development Planning prepared the of consultation and revision. Consultations Macroeconomic Outline and Policy were held with local and central government Framework for NDP 10, which involved planners to discuss issues of common extensive consultation with the line interest, particularly to ensure that Local Ministries, Local Authorities, the NDP 10 Authority concerns were incorporated into Reference Group and the Economic the National Development Plan, and that Committee of Cabinet. It was subsequently local authority plans are logically and approved by Cabinet in March 2008. consistently linked to the National Development Plan, as well as to discuss the

3.5. The Macroeconomic Outline and distribution of national projects amongst the Policy Framework marked one of the major various Local Authorities. Subsequently, in milestones in the preparation of the tenth October 2008, a National Stakeholders National Development Plan. It begun with a Conference (NSC), in lieu of the more suggested Theme for the Plan period, and traditional National District Development outlined the development policy thrust for Conference (NDDC), was held to consult NDP 10 by defining priority areas of focus further on the draft NDP 10. The NSC during the Plan period. After the overview offered another opportunity for stakeholders, of the broad policy framework and strategy such as Local Authorities, the private sector, for NDP 10, it then described Botswana’s trade unions and NGOs, to comment further economic prospects in terms of Gross on the draft Plan and ensure that their views Domestic Product (GDP), government were taken on board in NDP 10. The draft revenue and expenditure, and proposes Plan was subsequently discussed by the resource allocations among Ministries based Economic Committee of Cabinet in June on defined priorities. The Macroeconomic 2009 and later by Cabinet. National Outline and Policy Framework formed the Development Plan 10 was approved by basis for the macro chapters of the Plan Parliament in August 2009; but, because its (Chapters 4, 5 and 6), which also guided the development programme had been approved preparation of the sectoral chapters. by Parliament in the budget for 2009/10, its 26 implementation commenced on 1st April support and improve the policy and 2009. programme decision-making for the Plan;

3.8. NDP 10 is different from previous • Introduce and strengthen linkages plans in three main respects. First, this Plan between planning, budgeting, the represents a shift from the previous plans in personnel performance system, the that it is the first explicit results (outcomes) Performance Based Reward System driven National Development Plan. The Plan (PBRS) and monitoring and evaluation; utilises the Integrated Development and Planning (IDP) approach, which is an • Focus NDP 10 programmes on the essential part of the Integrated Results Based tangible results to be achieved by 2016. Management (IRBM) framework. At the core of this approach is the concept of The Integrated Results Based outcome-focused planning; i.e., planning Management (IRBM) Approach that gives special emphasis and consideration to the outcomes the plan seeks 3.11. The IRBM system is based on the to achieve. systematic and strategic identification of, and performance planning for, results at all

3.9. Second, the NDP 10 plan period levels, from the national, sectoral, spans a seven (7) year horizon (2009-2016) ministerial and departmental, down to other in contrast to the previous six year plan lower levels. This system requires that all periods of the last five NDPs. The Key Result Areas (KRAs) and NDP 10 implementation of the Plan thus coincides goals and programmes be results-oriented. with the country’s Vision 2016 time horizon (the fiftieth anniversary of Independence in 3.12. Under the IRBM approach, the 1966), when the nation will have to assess accountability of individuals and institutions its achievement of the aspirations and targets for specific results will also be established in set out in the Vision. Finally, the national a more systematic and structured manner. implementation machinery for NDP 10 will The results to be achieved by the various be streamlined and strengthened through programmes set out in the Plan are enhanced implementation arrangements and specifically assigned to responsible entities monitoring, evaluation and reporting during the planning stage. During systems to ensure the implementation of all implementation, the structured monitoring the Plan’s programmes and the achievement and evaluation mechanism will ensure of all the desired results set out in the Plan. rigorous performance tracking and reporting, leading to improved accountability for

3.10. The IDP approach adopted for the achieving the desired results by the formulation and implementation of this Plan responsible individuals and entities. will: • Improve the strategic planning, 3.13. The IRBM system includes the coordination and implementation of the following components: Plan; • Improve the human resource capacity • Integrated Development Planning and performance for successful service (IDP): As the cornerstone of the IRBM delivery and development management; System, the IDP approach maps out the • Improve the monitoring and evaluation national development priorities, system to provide timely, accurate and providing a structured and systematic reliable performance information to roadmap for all development 27 programmes and projects over the Plan • Integrated Monitoring and Evaluation period. The Integrated Development (M&E) System: The best performing Planning approach begins with an organisations are characterised by the analysis of the macroeconomy within the presence and utilisation of a structured context of Vision 2016. The and systematic monitoring and macroeconomic development priorities evaluation system. The Integrated and results for NDP 10 are identified, Results Based Management system has along with associated key result areas ensured that the monitoring and (KRAs) to be achieved, key performance evaluation system be strategically woven indicators related to the KRAs and the into the entire performance framework key contributors-stakeholders involved of Government. This will result in in the achievement of the KRAs. In this regular performance monitoring and way, the approach ensures that all the reporting by decision-makers at all development partners actively participate levels. The NDP 10 monitoring and in the planning, implementation, evaluation system is described in detail monitoring and reporting of the National in Section VII of the Plan (Chapter 16). Development Plan. • Integrated Management Information • Integrated Results-Based Budgeting System (MIS): Decision-making is a (RBB) System: The Integrated Results- critical function at both the policy and Based Budgeting system ensures that implementation levels. It is strongly financial resources are allocated on the influenced by the availability of timely, basis of outcomes (results) to be accurate, and reliable information. The achieved, by matching programme costs management information system will with programme results, and by make available critical performance comparative assessments of programme information for NDP 10, which will be efficiencies, effectiveness and relative methodically utilised by decision makers worth in producing the desired results. In at various levels to improve programme this way, the prospect of obtaining value implementation performance at all levels for money is enhanced. on a regular and ongoing basis. • Integrated Personnel Performance • Electronic Government Support System/Performance Based Reward System: The Electronic Government (E- System (PPS/PBRS): Under the Government) support system will Integrated Results Based Management provide the Information and system, the personnel performance Communications Technology (ICT) system is integrated into the overall infrastructure and systems to facilitate programme performance system. This and improve decision-making at the provides for the employee’s role and different levels, information sharing, and performance in an organisation to be monitoring, evaluation and reporting for linked with the organisation’s NDP 10. performance at all levels; and their performance must be linked to the substantive programme performance (results) of the organisations in delivering the desired results during NDP 10. 28 The Integrated Results Based relevant aspirations, goals and targets as Management Approach in NDP 10 reflected in the Vision Pillars and approved national policies.

3.14. Developing the Macro Development Results Framework 3.15. Each KRA and the associated (MDRF) for NDP 10: Using the Vision NDP 10 Goals, along with their 2016 Pillars as a basis, a task team was set corresponding sectors, are assigned to a up by the Ministry of Finance and thematic area reflecting one of the Vision Development Planning (MFDP), comprising Pillars. All the sectors identified have their of MFDP, the Vision Council, Government sector goals, indicators, targets and baselines Implementation Coordination Office (GICO) for their respective targets; these goals are and the Office of the President, to formulate the responsibility of the various the MDRF, which identified the KRAs and implementing entities. This enables the National Goals to be achieved during implementing entities to strategically and NDP 10. Based on the seven Vision 2016 systematically link their programmes and Pillars, national level priorities were results to specific sectors and NDP Goals identified and defined as KRAs. There are and KRAs, clearly establishing the 10 KRAs and 16 National Goals for NDP 10 contributors to the objectives set out in the (see Table 3.1). Under each KRA, one or Plan. It also establishes the contribution and more NDP 10 Goals have been identified, ownership of all outcomes and impacts from with indicators, targets and baselines each sector, and institutions that contribute specified for each goal. These National to the sector goals, NDP Goals and KRAs. Goals are based on and take into account the 29 Table 3.1 Macro Development Results Framework: Vision 2016 and NDP 10 Vision 2016 Key Result Areas NDP 10 Goals Lead Pillars Player 1. An Educated and Informed 1. Competitive & 1. Adequate Supply of Qualified, MOE Nation Productive Human Productive & Competitive Resources Human Resources 2. Knowledge Society 2. Innovative & Productive Use of Information &Technology MIST 2. A Prosperous, Productive 3. Sustainable Economic 3. Sustainable Rapid Economic MFDP/ and Innovative Nation Growth Growth MTI 4. Sustainable 4. Well Developed & Reliable MIST Environment Infrastructure 5. Sustainable Management of MEWT Natural Resources 3. A Compassionate, Just and 5. Enhanced Well Being & 6. Eradication of Absolute Poverty MLG Caring Nation Social Responsibility 7. Adequate Social Services 8. Affordable & Quality Healthcare 9. Prevent New HIV/AIDS Infections 4. A Safe and Secure Nation 6. Safe, Secure & Peaceful 10. Public Safety & Protection MSP Nation 11. Territorial Integrity & Sovereignty 5. An Open, Democratic and 7. Open & Transparent 12. Transparency & Accountability MSP Accountable Nation Governance in All Public & Private 8. Participatory Institutions Democracy 13. Enhanced & Sustained Participatory Democracy 14. Rule of Law 6. A Moral and Tolerant 9. Morality & Tolerance 15. Enhanced Cultural Heritage & MYSC Nation Diversity 7. A United and Proud Nation 10. National Pride & Unity 16. Strong National Identity & MLHA Unity

3.16. The Vision 2016 goals are cascaded the KRAs to the National Goals, to sector down into the NDP 10 KRAs, national goals goals and on to Ministries and Departments and objectives (Chart 3.1). These goals are for implementation. systematically further cascaded down from 30 CHART 3.1: CASCADING VISION 2016 INTO NDP 10 V is io n 2 0 1 6 V IS IO N 2 0 1 6 P illa r s 1 2 3 4 5 6 7 (7 ) KRAs 2 2 1 1 2 1 1 R e s u lt s (1 0 ) N D P 1 0 G o a ls 2 3 4 2 3 1 1 (1 6 ) R e s u lt s S e c t o r G o a ls SECTO R G O ALS R e s u lt s M in is t r ie s ’/ M I N I S T R I E S ’/ D E P A R T M E N T S ’ G O A L S R e s u lt s D e p ’t .s ’ G o a ls D e p a r t m e n t G o a ls D EPARTM EN TAL G O ALS R e s u lt s Implementation at the local level • Each sector programme has a results matrix that identifies the specific results

3.17. The identification and integration of to be achieved under the programme and grassroots level priorities and needs are how the results are linked to the relevant important considerations in the IDP national development (NDP 10) goals; approach for NDP 10. This is to ensure that, and while the integrated development planning • During implementation, performance approach from the national level identifies monitoring, evaluation and reporting will and integrates all major priorities at the focus on the results to be achieved from macro level, the priorities and needs at the the relevant programmes, in addition to grassroots and other implementation levels the expenditures, outputs and are incorporated effectively into the macro implementation processes. priority areas at the national and sectoral levels. This is important to ensure that the Thematic Working Group (TWG) NDP 10 activities at all implementation levels are logically and systematically linked 3.19. For each KRA, one or more themes with the national policies and priorities. were identified. Each theme was assigned to a Lead Ministry to form a TWG. The TWGs

3.18. The IRBM approach has ensured the discussed and prepared the thematic and following focus in each component sector submissions that formed part of of the NDP 10 process: NDP 10. The TWGs have proved to be a • All NDP 10 programmes focus on the useful mechanism for bringing all the specific results to be achieved; development partners together to discuss and consolidate contributions to the NDP 10 process. This structure and mechanism will 31 be retained so that the TWGs can meet on a periodic basis when necessary to review and Structure of Each Thematic Chapter validate the implementation of their respective programmes under NDP 10. 3.21. The Section and Chapter headings of the Plan are based on the Vision Pillars. The Programme-Activity Approach for contents in each chapter are structured NDP 10 according to the cascading principle as below:

3.20. In line with the sector approach used • Scope and nature of Vision Pillar, KRAs for NDP 10, there is added emphasis on the and National Development Goal(s); achievement of results in NDP 10 through • Sector Introduction explaining what the the use of a programme-activity approach. sector is about, its main features and the With this approach, the specific programmes evolution of sectoral policy; of intervention are identified under each • Review of NDP 9, discussing the sector, and directly linked to the sector goals objectives, performance and constraints; and NDP 10 (national level) Goals under the • Strategies for NDP 10, covering what is KRAs. Each of these programmes involves being sought, why and how it is to be a course of action(s) or intervention(s) in achieved; pursuit of a sector goal, NDP 10 Goal and • Sector Performance Matrix, listing the KRA. The sets of activities under a key indicators for the outcomes and programme can entail one or more projects. outputs, benchmarks and targets for The outputs of these activities are expected NDP 10; and to help produce the specific outcomes and • Summary of Programmes/Projects programme results that would serve to linked to different strategy focus areas. achieve the sector goal(s) and NDP 10 (national level) Goal(s). 32 SECTION II: MACRO CHAPTERS 33 CHAPTER 4 REVIEW OF ECONOMIC PERFORMANCE DURING NDP 9 Historical Background

4.1 At Independence in 1966, Botswana 4.4 At Independence, about half of was one of the half dozen or so poorest recurrent expenditure, and all of countries in the world, by almost any development expenditure was dependent on measure. For example, there was almost no aid. In the early years after Independence, infrastructure, virtually no capital city or therefore, the Government had to satisfy the government buildings, very few public aid donors, initially the British, but in due services (only 27 students passed their course other donors, as to how their money Cambridge certificate in the year before was to be spent, and how it had been spent Independence), and there were only a few after the event. The system of planning and kilometres of tarred road. managing government expenditure developed at that time was continued

4.2 The exploitation of minerals, initially basically unchanged into the period of large diamonds and then copper-nickel, mineral revenues, and budget surpluses. transformed the prospects of the economy, and in due course transformed the economy 4.5 Essentially, development expenditure itself. The mining of copper-nickel has never proposals had to include their future provided Government with significant tax recurrent costs and demands on skilled revenue directly, and at times the manpower. The Ministry of Finance and Government has had to provide subsidies Development Planning (MFDP) made sure, and loans to keep the mine open. as far as possible, that the total of future Nevertheless, the development of the mine, recurrent costs could be met, and (with and the building of the related infrastructure, DPSM) that skilled manpower would be boosted revenue from the Southern African available. If the sum of future recurrent Customs Union (SACU). This revenue was costs, and future demands on skilled further enhanced by the revenue-sharing manpower, came to more than was estimated formula negotiated in 1969 and in 2002. to be available, then some projects were Diamond mining, on the other hand, proved delayed or cut out altogether. Final extremely profitable with the Government expenditure proposals, together with receiving a large share of those proceeds. statements of economic strategy and policy, for the whole economy and for each sector,

4.3 These developments enabled made up the National Development Plans. Government to balance the recurrent budget by 1973, and for government revenue to 4.6 Each Plan is debated by Parliament, exceed total government expenditure and thereafter it becomes illegal to spend on (recurrent and development combined) by anything that is not in the Plan without 1984. For many years thereafter, the budget going back to Parliament. With only a few was in surplus. This enabled Government to exceptions, this system enable the avoid domestic borrowing, and to build up Government to contain its expenditure substantial financial savings in the form of within the capacity constraints of the reserves. economy, even when there are large budget surpluses. 34 Economic Development since 4.10 Mining was a form of economic Independence diversification initially, from when the economy depended heavily on exports of

4.7 Driven largely part by the beef and migrant labour remittances. Since expenditure of mineral revenues, but also by then, government revenue, especially from private sector investment in a relatively diamond mining, has been used to build favourable investment climate, the Botswana infrastructure and to provide education and economy grew extremely fast. In the 42 training. In this way, the natural advantage years to 2007/08, the real growth of GDP of mineral resources has been converted into averaged 8.7 percent per year. The the basis for more diversified economic Government’s expenditure strategy largely growth. avoided making the non-mining sectors of the economy uncompetitive and unprofitable 4.11 For many years, education has been (avoided the "Dutch Disease" suffered by so receiving the largest share of total many mineral-rich economies the main government expenditure. The commitment indicator of which is a rising real exchange to universal senior secondary education, and rate). This enabled the economy to make other education commitments, indicates that significant progress with economic the sector continues to receive priority. For diversification. example, recurrent expenditure on education averaged 28 percent of total recurrent

4.8 One indicator of economic expenditure in the three years to 2009/10. diversification is that Botswana has become significantly less dependent on imports. As a 4.12 Competition will get tougher, small economy with a small population, because the common external tariffs of imports remain extremely vital. SACU are being reduced. In addition, the Nevertheless, the ratio of imports of goods Southern African Development Community and services to GDP has fallen very (SADC) trade protocols will remove both substantially. In the 1970s, it was just under tariff and non-tariff barriers on agricultural 70 percent. During NDP 9, it averaged just imports. This will have only a marginal over 33 percent, indicating a remarkable effect on the non-agricultural sectors. structural change. It also shows that the Botswana already has free trade with SACU, private sector in Botswana has been which comprises more than 85 percent of regionally competitive, in that producers of SADC GDP. The SACU members of SADC most tradable goods (with the exception of comprise most of Botswana’s immediate agricultural goods) must compete without neighbours, who are crucial trading partners protection with imports from the rest of for a landlocked country. Botswana also has SACU. a trade agreement with Zimbabwe, which could become significant again when the

4.9 There was a reversal of economic Zimbabwe economy recovers. growth, which is hoped will be temporary, in the final year of NDP 9, as a consequence of 4.13 Other indicators of economic the global economic crisis. GDP is estimated diversification include: to have fallen by 3.3 percent in the year • non-traditional merchandise exports ending March 2009, and is forecast to have (defined as total merchandise exports fallen by more than 10 percent in the year to excluding diamonds, copper-nickel and June 2009. Renewed growth will depend on beef) have largely maintained their share recovery of global demand, especially the of total exports in the long term, despite demand for gem diamonds. 35 the extraordinarily rapid growth of impact of the global economic crisis on the diamond exports; demand for exports, especially diamonds). • real growth of service exports (averaging As a result, mining has displaced the earlier 4 percent during NDP 9); large share of agriculture, which has fallen • some modest import substitution in to only 1.9 percent. services, as the ratio of imports of services to GDP fell from 9.0 percent in 4.15 It is not just that the share of NDP 8, to an average of 8.1 percent in agriculture has fallen. That has happened to NDP 9. most sectors, because of the very large increase in the share of mining. More

4.14 Table 4.1 shows the changes in the significantly, there has been a continuing structure of GDP since 1966. The most downward trend in the absolute level of striking feature is the increase in the share of agricultural GDP in constant prices. There mining and quarrying, from nothing to 48.9 was a declining trend in real value added in percent in 1985/86, and a reduced but still agriculture over NDP 9 (of 0.1 percent per large share of 31.9 percent in 2008/09 (down annum). from 39.0 percent in 2007/08 because of the Table 4.1: Share of GDP by economic activity – selected years 1966 to 2007/08 (Percent) Economic sector 1966 1985/86 2008/09 Agriculture 42.7 5.6 1.9 Mining and quarrying - 48.9 31.9 Manufacturing 5.7 3.9 4.1 Water and electricity 0.6 2.0 2.4 Construction 7.8 4.6 5.2 Trade, hotels and restaurants 9.0 6.3 11.1 Transport 4.3 2.5 4.3 Banks, insurance and business services 20.1 6.4 12.8 General government 9.8 12.8 17.6 Social and personal services - 2.5 4.4 Adjustment items - 4.4 4.4 GDP 100.0 100.0 100.0 Source: Central Statistics Office ECONOMIC AND SOCIAL DEVELOPMENTS DURING NDP 9

4.16 Economic growth has been below Growth of GDP NDP 9 targets, and at a slower rate than that required to reach the Vision 2016 target. 4.17 The Base Case Scenario for growth Progress with the social objectives of Vision of GDP during NDP 9 was 5.5 percent per 2016 and the Millennium Development annum. Growth of GDP during NDP 9 can Goals (MDGs) has been mixed, with some now be shown for the budget years objectives having been set back by corresponding to each year of NDP 9, as HIV/AIDS pandemic. However, there is quarterly estimates of GDP have become evidence that the incidence of HIV/AIDS available for the relevant years. The has slightly been reversed for the first time. statistics of GDP growth shown in Table 4.2 The provision of ARVs and support for are, therefore, for budget years ending in orphans has been rolled out extensively. March. 36

4.18 GDP growth was estimated to have GDP in 2008/09 because of the effect of the averaged 4.6 percent for the first five years global recession on mining. For comparison of NDP 9. However, the average for the with NDP 10 projections (see Chapter 6, whole of NDP 9 was lower, at 3.3 percent Table 6.2), the trend rate of growth for NDP (Table 4.2), dragged down by a decrease in 9 was 3.5 percent. Table 4.2 GDP growth in NDP 9 : projections compared with actuals (percentages) Year ending March 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Average Projected growth +5.1 +5.9 +6.6 +4.9 +5.0 +5.4 +5.5 Actual growth +5.7 +6.7 +1.6 +3.9 +5.0 -3.3 +3.3 Note: preliminary estimate for 2008/09 Source: NDP 9 and Central Statistics Office

4.19 A breakdown of the contribution to private and parastatal sector in NDP 9 is GDP growth of mining, government and the shown in Table 4.3. Table4.3: Growth of GDP 2003/04 to 2008/09, by major sectors (based on 1993/94 constant prices, percentages) Years ending March 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Average Mining +6.5 +6.0 +2.0 +3.4 -1.7 -20.0 -0.7 General Government +5.4 +7.7 +2.5 +2.2 +2.8 +9.7 +5.1 Private and Parastatal +5.1 +6.9 +1.0 +5.0 +12.3 +6.7 +6.2 Total GDP +5.7 +6.7 +1.6 +3.9 +5.0 -3.3 +3.3 Source: Central Statistics Office

4.20 Growth of mining GDP, which was relatively high in 2008/09 (6.7 percent). still approximately 40 percent of GDP in Growth of the non-mining private sector is “normal” years, fluctuated quite sharply. important for employment creation and Average annual growth over the first five poverty reduction and is also an important years of NDP 9 was 3.2 percent, but mining indicator of economic diversification. GDP fell sharply in the final year of NDP 9, Initially the non-mining private sector was with the major diamond mines closed down relatively unaffected by the global recession in the last quarter of NDP 9. largely because Government expenditure was not only maintained, but the rate of

4.21 The contribution of General growth in 2008/09 was exceptionally high. Government to GDP grew slowly in years This benefited the non-mining private three to five of NDP 9, partly because sector, but was not the only reason for its development budgets were underspent. high rate of growth (see paragraph 4.104). Growth was sharply higher in 2008/09, as development expenditure accelerated. 4.23 Further detail of GDP growth is shown in Table 4.4. Several service sectors

4.22 The average rate of growth in the grew faster than the average, most notably remainder of the economy, basically the hotels and restaurants, transport and non-mining private and parastatal sector, banking. Manufacturing also did well. The was higher at 6.2 percent. It accelerated in slow rate of growth of construction reflected 2007/08 (12.3 percent), and remained in part by the decline in the Government’s 37 development expenditure until 2005/06. This 2007/08 where there was a notable surge. decline was reversed in 2006/07 and Table 4.4 : Growth of GDP by economic activity in constant prices, 2003/04 to 2008/09 (annual percentage rates of change, budget years ending March) Years 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Trend growth rate (a) Economic sector Agriculture 12.2 -5.8 -4.6 -6.1 7.7 7.2 -0.1 Mining and quarrying 6.5 6.0 2.0 3.4 -1.7 -20.0 0.1 Manufacturing 2.7 6.9 4.7 7.2 14.1 1.7 6.7 Water and electricity 6..1 4.3 2.9 5.2 3.8 4.2 4.3 Construction -5.3 3.0 -4.1 4.6 15.1 3.1 2.9 Hotels and restaurants 18.1 -4.4 17.2 32.0 11.3 10.1 14.2 Trade 10.9 -1.7 -0.2 0.7 11.4 4.9 3.4 Transport -3.8 6.4 14.3 9.8 12.1 12.9 9.3 Banks, insurance and business services 0.9 3.6 10.4 7.2 8.9 15.7 7.7 General government 5.4 7.7 2.5 2.2 2.8 9.7 4.5 Social, personal services 4.8 11.4 9.1 1.1 7.9 7.7 6.9 GDP +5.7 6.7 1.6 3.9 5.0 -3.3 3.5 Note: the trend growth rates in Table 4.4 are different from the average growth rates in Table 4.3. Trend growth rates are the slope of a line fitted to the GDP numbers; the 6-year averages in Table 4.3 are an arithmetic average of annual growth rates. Source: Central Statistics Office Progress with Vision 2016 target for GDP per head

4.24 The Vision 2016 target was that real projected in order to deliver the Vision 2016 GDP per head would triple during the 20 target for GDP per head. years from 1996 to 2016. Given expected population growth of 2 percent per annum, 4.26 In order to reach the Vision target of this required GDP to grow at an average of 8 8 percent for annual growth of GDP, growth percent per annum over the same 20 years. in the second half of the Vision period would have had to be 9.5 percent annually.

4.25 In the first five years, ending in With the lower rate of growth of population, 2000/01, real GDP growth was above the GDP per head will have tripled over the 20 Vision 2016 target, averaging 8.7 percent. years of Vision 2016 if GDP growth in the But in the next five years, ending in second half of the period is 7.5 percent on 2005/06, GDP growth averaged only 4.4 average. This would have made the Vision percent. However, population was estimated target for GDP per head more likely to be to have grown at an average of only 1.0 attained, before the onset of the global percent per annum over the first five years economic crisis. Sustained growth of 7.5 of NDP 9, compared with 2.4 percent at the percent a year, without major new mineral start of the Vision 2016 period in 1996. development, would be difficult to achieve Population growth is projected to recover given the fall of GDP in the final year of slightly, but only to about 1.2 percent, NDP 9, and the start of the first year of NDP during NDP 10. This means that GDP does 10. not need to grow as fast as originally 38 Table 4.5: Revised growth targets for Vision 2016 1996-2001 2001-2006 2006-2016 GDP: Vision target 8.0% 8.0% 8.0% GDP: actual 8.7% 4.4% 7.5% (new target) GDP/head: Vision target 6.0% 6.0% 6.0% GDP/head: actual 6.7% 3.2% 6.6% (new target) Note: new targets in the Table as derived in the text of paragraph 4.26 above Source: Vision 2016, CSO, MFDP calculations Causes of Slow Growth in the first half of NDP 9 Government Expenditure

4.27 An important cause of the slow and years of NDP 9 with development declining rate of growth of the private expenditure falling in constant price terms, sector, in the first half of NDP 9, was that by an average of 10.6 percent per annum the rate of growth of government over the same period, and by a further 3.0 expenditure slowed down during this period, percent in the following year. Recurrent (Table 4.6), and that the development budget expenditure also decreased in constant price was significantly under spent over the same terms, but by much less, with an annual period. Adjusting for inflation, the real value average of 1.0 percent (see Table 4.6). of government expenditure fell by an annual average of 3.8 percent over the first three Table 4.6: Annual growth of government expenditure in NDP 9: constant prices (percentages) Years ending March 2003/04 2004/05 2005 3-year 2006 2007 2008 3 year /06 average /07 /08 /09 average Recurrent 4.1 -2.5 -4.6 -1.0 2.0 8.9 16.5 9.1 Development (a) -5.6 -14.1 -12.0 -10.6 -3.0 50.2 53.4 36.5 Total expenditure (b) -3.4 -1.7 -6.3 -3.8 1.3 17.5 23.8 14.2 Note: (a) excludes net lending/repayments to Government (b) includes net lending/repayments to Government (c) adjusted using consumer price inflation, September 2003 for the budget year 2003/04, etc. Source: MFDP

4.28 Various reasons have been given for packages and the insecurity associated with the under spending of government budgets. project positions. For recurrent expenditure, the reasons include difficulties with filling established 4.29 A further important cause of the posts (especially those requiring scarce slowdown in GDP growth, in the first half of skills), and procurement delays. For the NDP 9, was a decline in real terms of development budget, the reasons include a investment as measured by Gross Fixed lack of implementation capacity in some Capital Formation (GFCF). The share of Government Ministries, the need for GFCF in GDP fell from 25.3 percent in the environmental impact assessments, slow first year of NDP 9 (2003/04), to 21.9 land allocation, and difficulty with filling percent in 2006/07, when it was actually project posts because of unattractive lower in real terms than it had been in 39 2003/04. In 2007/2008, it grew by 20.4 allowed for the first time in the period percent, presumably driven by the upsurge January to March 2007. The expenditure in government development spending. It figures for 2007/08 suggest strongly that grew by a further 3.5 percent in 2008/09, these reforms were effective, especially for reaching 26.7 percent of GDP in that year. development spending.

4.30 However, quarterly figures show that 4.33 The ceilings for increases in GFCF declined in the last two quarters of development spending projected in Chapter NDP 9. The target for GFCF in Vision 2016 6 are based, therefore, on a very much was that it should average 40 percent of higher starting point than appeared likely GDP over the 20 year period. The recovery two thirds of the way through NDP 9. The in GFCF may prove to be short-lived, upsurge in development spending will therefore. Sustained acceleration in private require increased recurrent spending to sector investment will require, among other maintain the additional projects. things, an improvement in the investment climate. Strategies for such acceleration are Share of Government Expenditure in set out in Chapter 5. GDP Reversal of the Trend in Government 4.34 In 2006/07, the ratio of government Expenditure expenditure to GDP fell to 26.1 percent. It was 39 percent at the beginning of NDP 9.

4.31 There was a reversal of the The exceptionally large increases in downward trend in government expenditure government expenditure in 2007/08 and in 2006/07 with total expenditure increasing 2008/09 increased the ratio to 42 percent. by 1.0 percent in constant prices. This change in the trend of government 4.35 The immediate problem of reduced expenditure was greatly accelerated in government revenue during the global 2007/08 and 2008/09 with total government economic crisis, and the longer term expenditure increasing in real terms by 17.5 prospect of declining diamond revenue after percent and 23.8 percent respectively in the end of NDP 10 (see Chart 5.1), suggests these two years. Most of this was caused by strongly that this ratio should not continue to a phenomenal increase in development rise. Eventual adjustment, to the estimated expenditure, which increased in real terms long-term ratio of government revenue to by more than 50 percent in each of the last GDP, would become increasingly difficult to two years of NDP 9. This meant that the real the extent that the ratio of government value of development expenditure more than spending to GDP is allowed to increase in doubled in two years (an increase of 130.4 the intervening years. percent). There was also acceleration of recurrent expenditure, but on a much smaller 4.36 A further compelling reason for not scale. allowing the ratio of government expenditure to GDP to rise, for example to

4.32 The 2007 Budget Speech noted that the Mid Term Review ceiling of 40 percent, land availability, environmental impact is to reduce crowding out of the private assessment and design, hitherto constraints sector. This happened on a large scale when on growth, had been or were being resolved. Government's development spending In addition, Ministries are now allowed to increased very fast at the end of the 1980s. proceed with pre-project planning for Before the global recession, there was a projects included in the budget, before the view that more, rather than less, budget is approved by Parliament. This was development expenditure should be 40 undertaken during NDP 10, in order to is to shift the focus of government create additional sources of revenue to offset expenditure towards the needs of the private the fall in diamond revenue expected after sector, for example, by spending on the end of NDP 10. This would be education, training and maintenance of analogous to the use of aid to build existing infrastructure, but within the level infrastructure in the years immediately after of government revenue (and prudent Independence, in order to balance the budget borrowing) projected for NDP 10. This at a later date. strategy is set out in further detail in the following two chapters.

4.37 The situation is now different. The almost complete absence of economic Changes in Government Expenditure by infrastructure in 1966 has been remedied, so Function in NDP 9 that creating additional infrastructure as a stimulus to the growth of the private sector 4.39 As can be seen from Table 4.7, total is very much less relevant than it was then. government expenditure and net lending is Moreover, most likely initiatives for expected to have grown faster than the additional development expenditure would Consumer Price Index in the six years of create future recurrent expenditure NDP 9 (the table uses expenditure figures liabilities. for 2008/09 from the revised budget as the breakdown of actual expenditure is not yet

4.38 To address some of these issues, the available). The real rate of increase totalled strategy set out in this Plan is firstly to 34.3 percent over the six years of NDP 9, an contain government expenditure within the average real annual rate of increase of 5.1 limits set by the expected levels of revenue, percent. and the budget deficits that can be financed on a sustainable basis. Secondly, the strategy Table 4.7: Changes in government expenditure by function over NDP 9(P million, current prices, revised budget estimates for 2008/09) 2002/03 2008/09 (revised % change over six estimates) years General public services (including defence) 4263 9419 120.9 Education 3549 7908 122.8 Health 1104 3204 190.2 Food and social welfare 401 528 31.7 Housing, urban and regional 1144 3029 164.8 Other community and social 549 1120 104.0 Economic services 2973 7786 161.9 Unallocated expenditure (a) 1727 2057 19.1 Total expenditure and net lending 15710 35877 128.4 Memo item: CPI 2006=100 (Sept) 71.6 121.8 70.1 Note: (a) mostly subventions to local authorities. Source: Central Statistics Office

4.40 The largest increase was in Within the total of health expenditure, expenditure on health, which rose by more recurrent expenditure rose by 148 percent, than 190 percent, compared with the overall while development expenditure in the health rise in expenditure of 128.4 percent. To a sector in 2008/09 was more than 279 percent considerable extent, this reflects the cost of higher than in 2002/03. This reflected, in coping with the HIV/AIDS epidemic. part, the building of new hospitals, and 41 HIV/AIDS clinics, across the country. A percent. The ratio of total revenue to GDP recent study of the impact on HIV/AIDS of fluctuated narrowly between 36 percent and the economy forecast a levelling off in the 38 percent, averaging 37.5 percent. cost of coping with the AIDS epidemic.

4.42 Table 4.8 shows ratios of non- Government Revenue mineral government revenue to non-mining private sector output (GDP less mining and

4.41 Total government revenue and grants less general government), in order to remove increased at a trend rate of annual growth of the large impact of fluctuations in mineral 15.5 percent during NDP 9. The trend rate of revenue and output. For a long period up to growth is the slope of a line fitted to the 2004/05, this ratio fluctuated between 35 values. This reduces the influence of starting percent and 40 percent, but rose sharply in or finishing values, which may deviate 2008/09, reaching 50.9 percent. unusually from the trend. In constant price terms, the trend rate of growth was 5.5 Table 4.8: Ratio of non-mineral revenue to non-mining private sector GDP, NDP 9 (percentages) 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 NDP 9 Average 36.4 37.8 39.9 40.9 39.3 50.9 40.9 Source: MFDP and CSO

4.43 The main cause of the increase in Budget Outturn non-mineral revenue as a proportion of non- mining private sector GDP was a sharp 4.44 The forecasts in NDP 9 (in the base increase in SACU revenue, consequent on case scenario) were for the budget to be in renegotiation of the SACU revenue-sharing modest surplus throughout the period. In the formula, and the response to changes in first two years of NDP 9, the budget was some common external tariffs. South Africa roughly in balance, as forecast. In the reduced the common external tariff on some following three years, the budget moved into luxury goods, including luxury motorcars. substantial surplus, because of strong The consumer response was so large that the revenue receipts, substantial underspending customs revenue going to the common of the development budget in 2005/06 and revenue pool increased sharply, and 2006/07, and continued with much smaller Botswana was entitled to a share of this underspending in 2007/08. increase under the new revenue formula. It seems unlikely that this will continue. This 4.45 The cumulative surplus was P16.6 is supported by the forecast for 2009/10, billion in the first five years of NDP 9 using the budget estimates and forecast GDP (Table 4.9). In the remaining year of NDP 9, figures: the ratio of non-mineral government the preliminary outturn was a deficit of P2.6 revenue to non-mining private sector output billion. This reduced the cumulative budget is forecast to be about 35 percent. surplus to P14.1 billion over NDP 9. 42 Table 4.9: Budget balance, outturn compared with NDP 9 forecasts (Preliminary outturn for 2008/09) Year ending March 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 NDP 9 base case (P million) 102 136 162 137 76 303 Outturn (P million) -78 574 4635 7660 3808 -2582 Outturn as % of GDP -0.2% 1.1% 7.1% 10.1% 4.2% -3.2% Cumulative outturn (P million) -78 496 5131 12791 16599 14107 Source: MFDP, Revised Budget Estimates for 2008/09

4.46 One consequence of the budget will be needed to finance deficits for several surpluses is that government balances at the years. Bank of Botswana increased sharply. In the calendar year 2006, the central government's Employment deposits at the Bank of Botswana increased from P12.8 billion to P21.1 billion (107 Growth of Formal Sector Employment percent of government expenditure in 2006/07). By the end of 2008, these balances 4.48 The growth of formal sector were P31.4 billion. This was 127 percent of employment has been one of the main ways total government expenditure in 2007/08. of reducing poverty in Botswana. Hence the Thereafter, the picture changed. By March continued fall in poverty from 1993/94 to 2009, government balances at the Bank of 2002/03 (Table 4.12), can be attributed in Botswana had fallen to P28.8 billion, and part to the growth of the informal sector. In they continued to fall in the subsequent the first five years of NDP 9, the trend rate months. of growth of formal sector employment was only 2.3 percent. This compares with the

4.47 Botswana remains very dependent on trend rate of growth of employment in the a small number of revenue sources, which previous four years (3.8 percent). can be volatile. The large reduction in mineral revenue in 2008/09 was an example 4.49 Table 4.10 shows that private and of negative volatility. Contingencies, such as parastatal employment grew more slowly drought and foot and mouth disease, or than Government employment over the first power shortages, can require emergency five years of NDP 9. Moreover, some of the expenditure. The Government's cash private and parastatal employment growth in balances have made it possible for the year to March 2006 can be attributed to a government expenditure to be maintained shift of some government functions from through short-term fluctuations in revenue, central government to newly created and to cope with the cost of contingencies parastatals, including the Botswana Unified such as droughts without having to cut back Revenue Service and the Local Enterprise on other expenditure. In NDP 9, this was Authority, and to the private sector. The necessary in the final year of the Plan. In underlying growth of private and parastatal NDP 10, it is expected that both government sector employment was even less, therefore, cash balances and government borrowing than the slow growth shown in Table 4.10. 43 Table 4.10: Formal sector employment 2003-2008 (thousands, March each year) March survey 2003 2004 2005 2006 2007 2008 Trend 2008 Six month growth rate Sept increase Private (a) 173.2 177.0 177.4 183.2 187.6 190.1 +1.9% 193.2 +1.6% Government (b) 108.8 113.7 121.4 111.7 114.4 118.5 +2.8% 122.6 +3.5% Total 282.0 290.7 298.7 294.9 302.0 308.6 +2.3% 315.8 +2.3% Notes: (a) includes parastatal employment (b) includes local government Source: Central Statistics Office, based on surveys in March 2003 to 2008.

4.50 It is preferable for private sector employment to grow faster than government 4.53 The 2005/06 Labour Force Survey employment. This will become increasingly shows underemployment of 17.6 percent important during NDP 10, because of the (Table 4.11), and agriculture employment expected decline in revenue from diamond may have been boosted by good rains in the mining. year of the 2005/06 survey. For these reasons, and because of inconsistencies in

4.51 The recent acceleration of annual the Labour Force Surveys (LFS), the long- growth in the non-mining private sector, to term trend remains somewhat uncertain. an average of 8.0 percent in the last three years of NDP 9, contributed to a faster 4.54 The apparent decline in the creation of formal sector employment. Part unemployment rate, at the same time as the of the explanation is that investment in the slow growth of formal sector employment categories “machinery and equipment”, and and the reduction in poverty levels, suggest “transport and equipment” accounted for the that there must have been strong growth of bulk of the increase in GFCF, comparing employment and self-employment in the 2008 with 2005. They increased by 47.3 informal sector. percent and 66.2 percent, respectively. The figure for employment-intensive Growth of the Informal Sector construction was an increase of only 6.0 percent. 4.55 The informal sector includes opportunities for entrepreneurs to develop

4.52 Long-term trends in the rate of businesses, some of which may grow and unemployment show a more encouraging become part of the formal sector over time. picture (Table 4.11). The sources for this It also includes much employment and self- table cover both formal and informal employment providing very low incomes, employment, including self-employment in while working for long hours in agriculture which can vary quite sharply unsatisfactory conditions, for those who depending on rainfall and other factors. cannot get formal sector jobs. This aspect of the informal sector should be replaced by formal sector employment at better wages Table 4.11: Long-term trends in and in better conditions, as quickly as unemployment possible. 1995/96 2001 (Census) 2005/06 (LFS) 21.5% 19.5% 17.6% 4.56 The 2005/06 Labour Force Survey Source: Labour Force Surveys and shows that the numbers of self-employed Population Census 2001 grew at an annual average of 6.7 percent 44 over the 10 years since the 1995/96 Labour compared to those in male-headed Force Survey. This compared with a growth households. However, the difference is rate of only 1.7 percent in "Paid Employees" relatively small: the percentage of those as measured by the same surveys. below the poverty line in female-headed households was 33.1 percent, and in male-

4.57 The category self-employed is not headed households was 27.4 percent, in the same as the informal sector, but most (61 2002/03. The gap has remained at about the percent) of those in the informal sector were same magnitude since 1985/86, indicating self-employed in 2005/06, and a further 23 that poverty in female-headed households percent consisted of unpaid family labour has been reduced at much the same rate as (most of whom worked in informal sector poverty in male-headed households. Among businesses). This latter category increased at reasons for the difference is that female an annual average rate of 18.1 percent over unemployment was (and is) greater than the same 10 years. male unemployment.

4.58 Care must be taken not to stifle the Table 4.12: Successive poverty estimates, informal sector, which tends to flourish 1985-86 to 2002-03 precisely because of the absence of government regulation and control. Public Year of Percentage of Percentage of survey households below individuals health and safety must be protected, and tax the PDL below the PDL collected where practicable. The general 1985/86 49 59 practice is to leave the informal sector to self 1993/94 38 47 regulation with little intervention from 2002/03 22 30 Government. Note: results derived from Household Income and Expenditure Surveys (HIES); the 2002/03 survey used a new 2003 PDL so that the figures are not Poverty strictly comparable with those for earlier years. Changes in Levels of Income Poverty 4.62 The decline in percentage points of those below the poverty line between

4.59 The official measurement of 1985/86 and 1993/94, for both households "poverty" covers only "income poverty". It and individuals, was exceeded in the does not therefore take account of following period, as measured by the improvement in public services, including 2002/03 survey. In addition, progress with both access to services and the quality and access to public services (reduction in public quantity of services supplied. service poverty) continued, as shown by a wide range of data, for example on access to

4.60 Successive surveys of income education, health services and clean water. poverty show that the percentage of households with incomes below the Poverty 4.63 The statistics in Table 4.12 are based Datum Line (PDL) has continued to fall on Botswana's own calculations of the PDL (Table 4.12). The percentage of individuals for various categories of households, and in with incomes below the PDL has also fallen. various parts of the country. An alternative The percentages for individuals are higher is to use the criterion, widely quoted than the equivalent percentages for internationally, of those who live on less households, because poor households tend to than US $1 per day (recently revised to be larger. $1.25 per day). Using the measure of those who lived on less than US $1 per day in

4.61 People living in female-headed 2003, "only" 23.5 percent of the population households are more likely to be poorer 45 was defined as poor, because Botswana's PDL averaged more than $1 per day. 4.69 The destitute allowance currently consists of a food basket and a cash

4.64 The Vision targets were that the allowance of P81 per month, which percentage of people in income poverty contributes substantially to reducing income should be reduced by half, to at most 23 poverty. Increasing numbers of people, percent, in the first ten years of the Vision currently more than 35,000, are paid the period (that is by 2006), and that by 2016 destitute allowance. Botswana should have eradicated absolute poverty. 4.70 The World War II veterans programme still has more than 3,500

4.65 It is likely that the first target was beneficiaries who receive P359 per month. met in 2009, or nearly met, but it is unlikely The primary school feeding programme, the that the country will be able to meet the Vulnerable Group Feeding Programme, second target. Indeed, no country has a zero various drought relief programmes, the poverty rate, however measured. There is provision of a monthly food basket and other nevertheless good reason to think that benefits in kind to orphans, support for economic growth and the Government's Community Home Based Care patients, welfare programmes will generate further support for Remote Area Dwellers and the decreases in the levels of income poverty, as National Gender Programme Grant, measured in Table 4.12, by 2016. contribute further to the reduction of poverty. Safety Nets

4.71 These various safety nets provide

4.66 Safety nets in Botswana include; old some of the explanation as to why poverty age pension, destitute allowance, World War rates continued to fall from 1993/94 to II veterans programme, primary school 2002/03, despite the slow rate of growth of feeding programme, the Vulnerable Group formal sector employment. They have Feeding Programme, and many other continued to contribute to the poverty drought relief programmes reduction that has taken place during NDP 9 (paragraph 4.62).

4.67 A universal non-contributory old age pension has been introduced. Entitlement to 4.72 The expected decline in diamond the old age pension has been widely revenue, after the end of NDP 10, will make publicised, so that its coverage should be it more difficult to maintain government good. The old age pension has been raised to expenditure on safety nets. This makes it all take account of inflation in most years. In the more important for the private sector to 2009 it was P220 per month, paid to nearly provide employment and self-employment 100,000 recipients. opportunities, in order to reduce the need for (and cost of) safety nets. Increased private

4.68 The old age pension is not expected sector growth will also generate increased to raise all old people above the poverty government revenue, which will increase the datum line. It has to support an extended Government’s ability to maintain welfare family in many cases. Nevertheless, it must programmes. have contributed to a reduction of the degree of poverty among old people and their dependents, some of whom have other sources of income. 46 International Trade

4.74 A substantial proportion of foreign Balance of Payments assets were switched from the official foreign exchange reserves to foreign assets

4.73 The overall balance of payments was held by the Public Officers Pension Fund much stronger in the first five years of NDP (POPF), as a result of it being funded 9 than the original NDP 9 forecasts. As a separately. Without this, the official reserves result of this, the foreign exchange reserves would have been higher. increased faster than had been forecast until the end of 2008. The global economic crisis 4.75 The increase in the foreign exchange led to the closure of the large diamond reserves to the end of 2008, in terms of the mines in the first quarter of 2009, and US dollar and the SDR (Special Drawing production was only partly resumed in the Right), was less than in Pula, but second quarter. At the same time, the nevertheless substantial Table 4.13). The Government maintained its expenditure reserves increased by just under 60 percent levels, in order to sustain the level of output, in US dollars (to US$9.1 billion), and by 59 income and employment in the rest of the percent in SDRs (to SDR5.9 billion). In the economy. As a result, the foreign exchange first half of 2009, this progress was reversed reserves fell sharply in 2009, by as shown in Table 4.13. The SDR is a approximately P2 billion a month in the six weighted average of the US dollar, the Euro, months to June 2009. The foreign exchange the UK pound and the Japanese yen with reserves were large enough for this to be shares of 44 percent, 34 percent, 11 percent possible without reducing them to critically and 11 percent, respectively. The objective low levels in 2009. Clearly this can only be of foreign exchange reserve management is sustained if the global economy, and the to maintain the purchasing power of the demand for gem diamonds, recovers soon reserves in SDR terms. enough. Table 4.13: Balance of payments and foreign exchange reserves: overall balance, forecast and actual, 2004-2008 (Pula billions) End of calendar year 2004 2005 2006 2007 2008 2009 Overall balance: NDP 9 forecast (a) 0.4 0.2 1.1 0.5 0.0 -0.1 Overall balance: actual -0.3 7.0 10.3 10.7 7.5 ... Forex reserves: NDP 9 forecast (a) 44.4 45.8 48.0 49.8 51.1 52.3 Forex reserves: actual 24.2 34.6 48.0 58.5 68.6 55.1 (b) Forex reserves in US$ bn forecast 6.8 6.8 7.0 7.1 7.1 7.1 Forex reserves in US$ bn actual 5.7 6.3 8.0 9.8 9.1 8.2 (b) Note: (a) the NDP 9 forecasts were for national accounts years ending in June. The actual balance of payments statistics are for calendar years, so there is a mismatch of dates. The overall picture is broadly correct. (b) June 2009 Source: Bank of Botswana

4.76 It is important to note that an recorded in the official statistics of the increase in the value of the Pula, against the foreign exchange reserves. US dollar, for example, does not directly affect the US dollars held in the foreign 4.77 The buying power of the foreign exchange reserves. It is just that those exchange reserves, in terms of what they can dollars are then worth less in Pula, as purchase as imports, depends mainly on the 47 exchange rates of the reserve currencies 4.79 A notional calculation, based on the against the South African rand, in which rate of decline of the foreign exchange most imports are denominated. It does not reserves in the six months to June 2009, and necessarily follow, therefore, that a decline assuming that imports of goods and services in the Pula value of the reserves reduces increased at the same annual rate in 2009 as their buying power, or that an increase in the in 2008 (40 percent), would reduce import Pula value of the reserves increases their cover to 9.5 months by the end of 2009 buying power. (Table 4.14). It is likely that imports will increase less fast in 2009 because of mine

4.78 The import cover provided by the closures and lower production in 2009, and foreign exchange reserves fluctuated sharply that the reserves would therefore decrease between 2004 and 2008. The reserves and less fast. However, if imports of goods and the cover they provided remained services increase at (say) 30 percent in 2009, exceptionally high by international and the reserves fall by P1.5 billion a month standards, but Botswana faces high risks. rather than P2 billion a month as in the first This was demonstrated at the end of NDP 9 half of 2009, would indicate import cover of by the large decrease in receipts from most 11.5 months by end-2009. This would still of the important commodity exports be generous by international standards, but it particularly diamonds. is clear that the rate of decline could not be sustained if export demand does not revive. Table 4.14: Fluctuations in import cover provided by the foreign exchange reserves End of Year 2004 2005 2006 2007 2008 2009 (a) Import cover (months) 16.9 22.1 30.2 26.0 23.0 11.5 (a) Change in import cover (%) -18.2 +30.7 +36.6 -18.8 -10.9 -50.0 (a) Change in US$ per Pula (%) 3.8 -22.3 -9.1 +0.4 -20.1 ... Note: (a) based on calculations in paragraph 4.84 Source: Bank of Botswana

4.80 The reserves enable the economy to cope with short term fluctuations in foreign 4.82 The accumulated financial surpluses exchange receipts, or the need to increase will not be spent on unproductive projects, food imports during a drought year, for or on projects that cannot be managed and example. This has been shown in 2009, and maintained efficiently. In particular, the on several earlier occasions. Government will avoid implementing projects during NDP 10 for which recurrent

4.81 The import cover provided by the expenditure will not be available during foreign exchange reserves will probably subsequent Plans. decrease in the long term, as GDP and therefore imports grow, unless GDP growth 4.83 In normal (non-crisis) circumstances, is led by exports. The reserves, if still Government will allow the foreign exchange available, enable the economy to adjust reserves to increase until they can be used more slowly than would otherwise be on productive and sustainable investment. necessary to longer term problems, such as The interest earned on them by the Bank of the loss of diamond export receipts in the Botswana, and paid to the Government, is a 2020s. useful addition to government revenue. On 48 the other hand, the high level of the foreign part, this was because the nickel price exchange reserves should not mean that the increased by 144 percent, and because of a Government need not adjust to falling export tripling of copper prices. This, combined receipts, because the timing and extent of with the depreciation of the Pula against the any recovery is never known at the time. US dollar (the currency in which exports of The reserves have provided the opportunity diamonds and copper-nickel are sold) and to adjust in a more carefully planned way increased nickel production, resulted in the than would have been possible with lower Pula value (in current prices) of copper- reserves. nickel exports increasing by 450 percent over three years. A large part of the increase The Trade Surplus and Merchandise in copper and nickel prices was reversed Exports during 2008 and 2009, and diamond exports fell drastically in 2009, so that that the trade

4.84 The trade surplus grew substantially surplus fell in 2008, and became a trade in the first half of NDP 9 (Table 4.15). In deficit in the first quarter of 2009. Table 4.15: Exports, imports and the trade balance: 2003-2008 (Pula billions, current prices) Calendar years 2003 2004 2005 2006 2007 2008 2009 (a) Merchandise exports 15.0 17.3 22.7 26.4 30.8 33.5 2.6 Merchandise imports 10.5 13.4 13.7 15.3 21.1 30.5 6.4 Trade balance (actual) 4.4 3.9 9.0 11.1 10.0 3.0 -3.8 Trade balance (NDP 9 forecast) 1.5 1.5 2.6 2.0 1.4 1.4 1.4 Note: (a) quarter to March 2009 Source: Bank of Botswana Annual Report 2008

4.85 Table 4.16 shows the changes in earnings for all the other major export receipts from Botswana's main export commodities apart from vehicles. commodities, in current price terms. Where the increase is greater than the increase in 4.87 There was a substantial fall in prices as shown in the bottom line of the receipts from traditional exports (diamonds, table, the domestic purchasing power of copper-nickel and beef) in the first half of exporters increased in real terms. 2009. The major diamond mines were closed from January to mid-April, and full

4.86 Apart from the substantial increase in production was not resumed. There were the value of copper-nickel exports, there was also falls in export receipts from copper- a large increase in Pula receipts from textile nickel (minus 81 percent) and beef (minus exports in real terms. This probably arose 25 percent). Other commodity receipts from keeping the real exchange rate of the appeared to be holding up, although not all Pula competitive, and from privileged access the statistics were available. Statistics for to the US, South African and European only two quarters can sometimes mislead, Union markets. There was a real positive but in this case they indicate how serious the increase in the purchasing power of export global recession was affecting Botswana’s exports and not just diamonds 49 Table 4.16: Selected merchandise exports, 2003-09 (P millions, current 2007 prices) Calendar years 2003 2008 Change (%) 2009 first half Change (%) (a) Diamonds 11707 21456 83.3 5742 -50.4 Copper-nickel 695 5119 636.5 595 -81.3 Beef 260 530 103.8 181 -24.9 Sub-total 12662 27105 114.1 6518 -56.5 Soda ash 268 505 88.4 273 15.6 Textiles 227 1818 700.9 Vehicles 443 236 -46.7 Gold ... 382 118 -2.0 Sub-total 938 2562 173.1 Other 1370 2465 79.9 TOTAL 14970 32132 114.6 Memo item CPI 77.2 123.7 60.2 129.4 4.6 Note: (a) change over first half of 2008 Source: Central Statistic Office

4.88 One indicator of export indicator of further economic diversification, diversification is the growth of "non- as products not previously exported, or only traditional exports", defined as all exports previously exported in small quantities, are except diamonds, copper-nickel and beef. included in this item. Non-traditional exports kept pace almost exactly with traditional exports between Service Exports 2003 and 2007. They grew at 64 percent and 61 percent, respectively. This was achieved 4.90 The measurement of service exports despite a collapse in vehicle exports in 2006. has become more difficult since the Comparing 2008 with 2007, the pattern abolition of exchange controls, so that the changed. Non-traditional exports were up 77 statistics in Table 4.17 are not as reliable as percent against a rise of 34 percent in those for merchandise exports, which can be traditional exports, but it is too soon to observed and recorded at the borders. identify a trend. However, the positive picture of growth in service exports is consistent, and trends in

4.89 The change in 2008 was partly each category are above the rate of inflation. attributable to the rise in “other” exports in So it appears probable that service exports Table 4.16. This category of exports is an are indeed growing in real terms. 50 Table 4.17: Service exports 2003-08 (P millions, current prices) Calendar years 2003 2004 2005 2006 2007 2008 Trend growth rates (%) Transport 342 390 434 474 507 571 10.3 Travel 2261 2578 2871 3136 3352 3773 10.3 Other 581 544 1191 890 1352 1824 26.3 Total services 3184 3512 4496 4500 5211 6168 13.7 Inflation (CPI, %) 9.2 7.0 8.6 11.6 7.1 12.6 9.4 Source: Bank of Botswana Annual Report 2007

4.91 As a result of the growth of service Inflation and Real Interest Rate exports, and import substitution, the deficit Control of Inflation on the services account of the balance of payments decreased substantially in the five 4.93 The rate of inflation is one of the years 2002-2006. In those five years, the most sensitive indicators of the success or deficit averaged P198 million, considerably otherwise of macroeconomic policy. It also less than the average of P964 million in the has the advantage that statistics are available previous four years. The deficit has sooner than other indicators. increased since then. It was P1.104 billion in 2007 and P1.631 billion in 2008 implying 4.94 Annual inflation reached a temporary that service exports have grown, but service peak of 12.2 percent in the middle of 2003. imports have grown faster. During the next twenty-four months, inflation was reduced to between 6 percent

4.92 Pula receipts from service exports in and 8 percent. It then rose again, reaching a 2008 were P6.2 billion, which was almost as peak of 14.2 percent in April 2006. much as the P6.5 billion of non-traditional Thereafter, inflation fell steadily, averaging merchandise exports. Service exports were 7.2 percent in 2007 (Table 4.18), but it again dominated by transport and travel, but other rose rapidly in 2008. It peaked at above 15.1 service exports grew faster, suggesting that percent in August, but fell rapidly in the first there may have been some growth in new half of 2009, reaching 6.0 percent in July. types of service exports. This could indicate This was the first time it had reached the that businesses are finding ways of avoiding Bank of Botswana’s current objective for the high transport costs of exporting inflation that it should be in the range of 3 to physical goods. 6 percent, since February 2002.From August 2009, inflation started to increase reaching 7 percent in September 2009. Table 4.18: Inflation rates quarterly, 2003-2009(quarterly averages of monthly rates, (percentages) 2003 2004 2005 2006 2007 2008 2009 January-March 11.0 6.5 7.3 13.2 7.1 9.1 12.1 April-June 11.4 6.9 6.5 13.4 6.9 12.6 8.5 July-September 7.9 6.8 9.3 11.0 7.7 14.8 6.4 September-December 6.7 7.7 11.3 8.8 7.7 13.9 Annual average 9.2 7.0 8.6 11.6 7.2 12.6 Source: Central Statistics Office

4.95 It is estimated that some 70 percent caused by the increased prices of imports of of the increase in inflation in 2008 was food and petroleum products. These prices 51 are internationally determined, and therefore outside the control of the Botswana Real Interest Rates authorities. There was a reasonable prospect that the rate of inflation would fall again in 4.96 Table 4.19 shows that the real cost of the medium term, partly because the oil borrowing, as represented by the price fell to less than a third of its peak in commercial banks' prime lending rate the second half of 2008. It is for this reason adjusted for inflation, has varied quite that the Bank of Botswana raised interest sharply in the last six years. This has rates only marginally in 2008, in order to happened when the rate of inflation has avoid unnecessary damage to the domestic fluctuated over a relatively short period, and economy. Interest rates were lowered in the the Bank of Botswana has not reacted by first half of 2009. changing nominal interest rates, or at least not until after a significant lag. Table 4.19: Real prime lending rate 2002-08 (percent) End of year 2003 2004 2005 2006 2007 2008 2009 (a) Prime lending rate 15.8 15.8 16.0 16.5 16.0 16.5 13.0 Inflation rate 6.3 7.9 11.3 8.5 8.1 13.7 7.0 Real prime lending rate (b) 8.9 7.3 4.2 7.4 7.3 2.5 5.6 Notes: (a) June 2009 (b) real rate calculated as ((100+nominal rate)/(100+inflation rate)-1)*100 Source: Bank of Botswana

4.97 Frequent nominal interest rate 4.99 The high level of the real cost of changes are disruptive for private sector borrowing in some recent years may have borrowers. A balance has to be struck had a negative impact on the growth of between preventing the real cost of GDP. There is no ideal real cost of borrowing from becoming too high or too borrowing, but a real prime lending rate low, and avoiding frequent nominal interest above (say) 5 percent probably dampens rate changes. The year 2008 provided an private sector growth, particularly as many example of this, with a rapid rise in inflation borrowers pay more than this. Against this, resulting in a sharp reduction in the real cost as the real cost of borrowing approaches of borrowing. Monetary policy is made more zero or turns negative, there is a risk of difficult because the economy reacts to encouraging the wrong sort of investment, in changes in interest rates with a significant particular speculation in assets such as land time lag. and housing.

4.98 It is the future real cost of borrowing 4.100 High nominal interest rates which is significant for borrowers, as this is discourage investment, even if the real rate what affects the expectation of profit using appears low because of inflation. A producer borrowed money. The current real interest may borrow at, say, 16.5 percent, relying on rate is only a proxy for the future rate, in the inflation to reduce the real cost of borrowing absence of better information. to 2.5 percent because inflation is 13.7 percent at that time (these were the figures at the end of 2008). This is risky. The 52 producer's costs will almost certainly go up 4.103 Investment, as measured by Gross with inflation, as they include a wide range Fixed Capital Formation, declined in real of goods and services. On the other hand, terms in the first half of NDP 9. Its share in the price of the producer's more limited GDP fell from 22 percent to 17 percent. It range of products might not increase with recovered to 25.3 percent in 2007/08 in inflation. Or inflation might fall. Either or response to the upsurge in development both of these events would increase the real spending by the Government. cost of borrowing above what had been anticipated. These risks are lower, the lower 4.104 There was considerable growth in is inflation. Manipulation of interest rates is, merchandise exports, but this was mostly therefore, only a partial solution to the because of high base metal prices and the problem of inflation, and creates unwanted impact of Pula depreciation on export side effects the higher is the absolute level receipts. The gains were badly eroded at the of inflation. end of NDP 9 and the start of NDP 10 due to the global economic and financial crisis. REVIEW OF NDP 9: SUMMARY AND 4.105 Service exports also grew steadily. CONCLUSIONS There was particularly rapid growth in the unspecified category "other", so that the

4.101 Growth was slower than planned in growth of service exports was not just in the first half of NDP 9, and the growth rate tourism and may have included new was declining. However, the growth rate of categories not previously exported on a the non-mining private sector picked up in significant scale. 2006/07 and accelerated in 2007/08 (see Table 4.3). The recovery was driven in part, 4.106 The major issues for NDP 10 are by a large increase in Government’s therefore twofold. In the short term, development expenditure, which had been Botswana cannot continue to generate decreasing before then. growth by increasing government expenditure. There is some scope for

4.102 It is positive, though, that the non- sustaining the domestic economy by mining private sector started to grow faster maintaining much of government before the upsurge in government’s expenditure – provided that the global development expenditure. This acceleration recession ends quite quickly, and, in was therefore independent of government particular, that the demand for gem expenditure initially. The annual growth rate diamonds does not lag too far behind the of the non-mining private sector increased recovery of global demand. Secondly, the consistently from a low of 0.1 percent in Government will further do everything 2004/05, but then rose sharply. It averaged possible to promote private sector growth, so 8.0 percent in the last three years of NDP 9. that it becomes less dependent on government expenditure and becomes the engine for economic growth and development. 53 CHAPTER 5 MACROECONOMIC STRATEGY FOR NDP 10 INTRODUCTION resources will be generated to achieve most

5.1 This chapter provides an overview of the objectives of Vision 2016. This is of the macroeconomic policy framework and reflected in the NDP 10 theme: strategy for the Plan period. More detailed "Accelerating Achievement of Vision 2016 strategies and policies are set out in the through NDP 10”. subsequent sectoral chapters.

5.4 The need for emphasis on the

5.2 Note that NDP 10 has been extended private sector has greatly increased, for two by one year so that it ends in the same year reasons. Firstly, the global economic crisis as Vision 2016. This makes possible a at the start of the Plan has badly affected the comparison between the projections for Government's diamond revenues. The NDP 10, and the economic and social timing and size of any recovery is unknown, objectives of Vision 2016. However, the so that in the meantime government comparison is not exact, as NDP 10 ends at expenditure will increase much less than the end of March 2016, and therefore previously projected. excludes three quarters of the calendar year 2016. Vision 2016 did not specify whether it 5.5 Secondly, the prospects of a decline was using calendar years, national accounts in diamond revenue after the end of NDP 10 years (which used to end in June, but will in means that in the long run the private sector future end in December) or budget years must depend less on the Government's (which end in March), but the general expenditure from diamond revenue, and assumption has been that the Vision 2016 more on growth of those elements of the document referred to calendar years. private sector which are independent of government expenditure. Current forecasts Economic Diversification are that opencast diamond mining will be replaced by underground mining within the

5.3 Previous Plans have emphasised the next 10 to 15 years, and that the major need for economic diversification but have diamond mines will be exhausted by the end had limited success in achieving this of the 2020s. Unless there are major new objective. Building on what previous Plans discoveries, government revenue from have achieved, the strategic thrust of diamond mining will decline, at first slowly, development policy in NDP 10 will be to and then rapidly (see Chart 5.1). accelerate diversification of the economy, from dependence on diamonds towards 5.6 Mineral revenues, mostly from growth of the rest of the private sector. The diamonds, fell from 48 percent of total Government will, therefore, take every government revenue in 2006/07 to 43 possible measure to make the economy more percent in 2007/08. During the last quarter competitive, and more attractive to domestic of the budget year in 2008/09, when the and foreign investment. To the extent that major diamond mines were closed mineral this strategy is successful in accelerating revenue further declined to 31 percent of growth of the non-diamond private sector of total government revenue and to a budgeted the economy, employment will increase, 28.0 percent in 2009/10. Adjustment to the poverty will further be reduced, and loss of most of these revenues in the long 54 term will eventually require government However, increasing taxation of the non- expenditure to be kept at a lower percentage diamond part of the economy would of GDP than would otherwise have been certainly affect economic prospects. Hence, required. It might also require higher the emphasis will most likely to restraint taxation on the rest of the economy. government expenditure. Chart 5.1: Projected Government Revenue from Diamonds , 2009-2029(P million, constant prices) Source: Ministry of Minerals, Energy and Water Resources

5.7 In the long-run, Government diamond revenue would be made more revenue will be a lower proportion of GDP difficult if the decline in diamond revenue, than in the past, even if the non-diamond shown in Chart 5.1, and expected in NDP private sector grows rapidly enough to 11, were not anticipated in NDP 10. To replace the contribution of diamonds to account for this, Government will do GDP. This is because diamond mining is everything possible to prevent its considerably more profitable than the rest of expenditure as a percentage of GDP to the private sector, and the Government gets return to the levels obtained at the beginning a higher proportion of diamond mining of NDP 9. This is in light of that, in the first profits than it gets from taxing other private year of NDP 9, the ratio of government sector activity. expenditure to GDP was 39.2 percent. It was about 40 percent in the final year of NDP 9,

5.8 The ratio of government revenue to having fallen to a low of 30.0 percent in GDP in NDP 9 averaged 37.5 percent. 2006/07. During NDP 10, it is projected to average 30.4 percent, so that the rate of growth of 5.9 Preliminary estimates of the ratio of government expenditure will have to be revenue to GDP by the time that the reduced in order to limit the size of budget diamond revenue is almost exhausted, in deficits. Adjustment to lower levels of about 2029, are that it may be at or about 30 55 percent, provided that the non-mining More detail on the projections is provided in private sector grows consistently, and quite Chapter 6. fast. Strategy for a Land-Locked Country

5.10 The more immediate problem, for NDP 10, is how to respond to the current Exporting Goods to Neighbouring economic crisis, which has negatively Countries affected the Botswana economy, and in particular the diamond mining and sales. 5.13 Botswana is landlocked with high Most of the diamond mines were closed in transport costs for imports and exports of the first three months of 2009 (the last merchandise (and for some service exports quarter of NDP 9). Even though the revenue such as tourism). The partial exceptions are projections in Chapter 6 assume a recovery merchandise trade with neighbouring in diamond production, and therefore in the countries, and exports of high-value and Government's mineral revenues, in the third low-bulk goods. Diamonds are the extreme year of NDP 10, the projections for the example of the latter. In addition, the overall budget are for a large cumulative country has a small population and market deficit. base, and shortages of skilled labour. It follows that Botswana needs greater

5.11 Recurrent expenditures are projected emphasis on exports of those goods and to increase annually by an average of about services that are least dependent on transport 1.1 percent in real terms in the last six years infrastructure in the form of road, rail and air of NDP 10 (after a budgeted increase of 8.1 transport, and use as little skilled labour as percent in the first year, 2009/10). This will possible. enable the Government to continue to provide public sector services, and to 5.14 It also follows that every provide the necessary recurrent expenditures opportunity to export to neighbouring associated with the recent upsurge in markets will be exploited, that the matching development expenditure. infrastructure (for example, the road to Kazungula and the Kazungula bridge) will

5.12 In order to make room for these be built and properly maintained, and that modest increases in recurrent expenditure, diplomacy will be directed to maximizing the projections show that development trade with neighbouring markets. Not all the expenditure will have to be reduced steadily high costs of international trade arise from in real terms, by an average of 4.6 percent being landlocked. Every effort will be made annually in the final six years of NDP 10 to reduce the regulatory and protectionist (after a budgeted decrease of 13.0 percent in barriers to trade with neighbouring the first year, 2009/10). Even after these countries. cuts, the absolute level of development expenditure in the final year of the Plan will 5.15 Botswana is fortunate in having as a be more than it was in 2006/07. As such, the neighbour the much larger economy of cuts are a correction to the extraordinary South Africa. This reduces the disadvantage upsurge in development expenditure in of being landlocked, in that Botswana can 2007/08 and 2008/09, returning export to South Africa at relatively low development expenditure to a more transport cost (to Gauteng and North West "normal" level. The net result, despite the Province at least, if not to the more distant very stringent projections for expenditure, is markets of Durban and Cape Town). a projected cumulative deficit of P31.9 billion over the seven years of NDP 10. 56

5.16 A further advantage is that the Exporting Services Using Electronic Botswana’s economy is small in relation to Transport that of South Africa (GDP in South Africa is about 25 times larger than GDP in 5.19 An additional strategy for a Botswana). Exports from Botswana to South landlocked country is to develop some type Africa should not therefore spark off of service exports even though the full pressure for protectionist measures from potential of service exports has not been South African producers,[ although that has assessed. The International Financial happened in the past, despite the Services Centre (IFSC) is very skill- commitment to free trade within Southern intensive, which is one reason why it has African Customs Union (SACU)]. grown slowly. The 19 companies registered Nevertheless, exports to South Africa have and operating with the IFSC employ 40 grown consistently. The trend rate of growth expatriates out of a total employment of 190. from 2001 to 2008 was 23.6 percent in current prices, and thus well above average 5.20 Service exports using the Internet inflation of 8.4 percent in those years. have negligible transport costs, once the basic infrastructure has been created.

5.17 The Zambian economy was doing Botswana currently has relatively poor well before the global recession, growing at broadband access to the Internet. During the about 7 percent annually. Trade between the working day, access is often slow. One of two countries is handicapped, though, by the the IFSC companies left Botswana during bottleneck of the Kazungula ferry, and the NDP 9, in part because of this problem. The failure to enforce axle weight restrictions on other reason given was a shortage of the road to the ferry. This latter problem has relevant skills locally, emphasising the point resulted in the road having to be rebuilt that Botswana’s current comparative more than once. This makes it all the more advantage is in service exports which are important for the proposed bridge to be less skill-intensive than those currently agreed upon and built as soon as possible, exported by IFSC companies. and for lorries to be inspected more frequently to prevent excess axle weights on 5.21 Examples of services which could the road. use relatively low-skilled labour (for example, secondary school leavers) include

5.18 Botswana has suffered from the doing routine administration, data inputting economic crises in Zimbabwe, which was and simple data analysis for foreign firms. the second largest neighbouring economy So far, this type of activity has not been after South Africa. However, the Zimbabwe developed in Botswana on any significant economy has collapsed, and prospects for a scale. speedy revival are uncertain. A recovery during NDP 10 of the Zimbabwe economy 5.22 Botswana has a surplus of school would be of great benefit to Botswana. The leavers with basic numeracy and literacy, influx of people from Zimbabwe, driven out and basic experience of computers, who by economic down turn, has had mixed could be trained to use standard software benefits and costs for Botswana. Coping quite quickly. Botswana's financial strength with economic refugees has had economic means that the country can educate more of and social costs, but an influx of labour, its population, to a higher level, than most especially of skilled people, has benefited other African countries, and should be able Botswana even though there is no research to continue to do so. This comparative currently available on the balance of these advantage could be turned into employment- costs and benefits. intensive growth of service exports. 57

5.26 Strategies to address the full range

5.23 In this context, future service of Vision objectives are articulated in the exports will be able to make better use of the sectoral chapters, which have been supply of secondary school leavers, while structured to link projects, strategies and making fewer demands on the scarce supply policies with the Vision pillars. The broad of professional skills, than the IFSC. Service macroeconomic strategy is further discussed exports using email will, of course, avoid the below. high cost of surface transport incurred by imported merchandise inputs and Economic Diversification and Poverty merchandise exports. Reduction

5.24 Some service exports also suffer 5.27 The basic purpose of NDP 10 is from a transport disadvantage, most notably similar to that of previous plans. For many tourism. Visitors to Botswana, including years, the main thrust of economic policy in some of those from neighbouring countries, Botswana has been to diversify the face heavy costs in getting to the country’s economy, in order to reduce dependence on main tourist attractions. Again, not all of the mining sector in general, and on these costs are inevitable, but can be reduced diamonds in particular, and to create through administrative action. Despite these poverty-reducing employment and self- disadvantages, tourist arrivals appear to be employment opportunities. The domestic increasing. Total arrivals in Botswana barely economy, although it has grown rapidly, increased from 2002 to 2005, but arrivals by remains small by international standards. purpose of entry, show that those on holiday This means that economic diversification increased by a total of 59 percent over those has required import substitution on the one three years. hand, and the development of increased non- diamond exports, of both goods and Rationale for the theme of NDP 10 services, on the other hand.

5.25 The theme for NDP 10 is 5.28 Diversification is necessary in order “Accelerating Achievement of Vision 2016 to reduce the risk of being dependent on a through NDP 10". As noted above, this few major export commodities, and to requires greater emphasis on growth of the reduce further the very high dependence on non-mining private sector in order to reach imports that characterised Botswana at the Vision target for a tripling of GDP per Independence even though it has been much head. If such accelerated growth could be reduced (see Chapter 4, paragraph 4.13). achieved, it would create more formal sector jobs, and make a major contribution to the 5.29 The mining sector (especially reduction of poverty. As noted in Chapter 4, diamond mining) employs relatively few formal sector employment grew very slowly people. The rest of the economy is much during NDP 9. Faster growth of the non- more employment-intensive, in providing mining private sector would also generate both formal sector jobs and opportunities for increased non-mineral tax and non-tax self-employment. The non-mining economy revenue. Even if this is less than the decline provides some 18 times as many people with in diamond revenue, it would assist the formal sector jobs, per unit of GDP, as the Government to reach (and improve on after mining sector. Employment, broadly defined 2016) those Vision objectives which depend to include the self-employed and those on government expenditure. working in the informal sector, is the most important way in which the benefits of revenue from diamond mining reach large 58 numbers of people. It is therefore the most The Mid-Term Review noted that the important way of reducing "income expenditure ceiling would need to be poverty". reviewed periodically, in order to maintain a balanced budget in the medium term. The

5.30 As noted in the review of NDP 9 in situation at the beginning of NDP 10 is Chapter 4, Botswana has made good worse than this implies, in that even very progress in reducing the incidence of income tight control of government expenditure is poverty, although much remains to be done, projected to result in a large cumulative and income distribution, as measured by the deficit in NDP 10. The projections are for a Gini coefficient, has become more unequal. cumulative deficit in the first four years of Even greater progress has been made with NDP 10 of P37.3 billion. The projections the reduction of public service poverty. Here then show small surpluses in the remaining too, much remains to be done, and some years, and an overall deficit for the seven indicators have worsened because of years of P31.9 billion. HIV/AIDS.

5.34 Even if new large diamond mines Strategies for Accelerating Growth of are discovered, in order to have the same GDP relative impact on the economy as did the existing mines, they would have to be

5.31 One way of accelerating growth is to several times larger than Orapa and increase the rate of growth of government Jwaneng, because of the growth of GDP expenditure. This adds to the income of the since the existing mines were opened. This recipients of government expenditure, and is highly unlikely. their spending adds further to growth to the extent that the spending is on locally 5.35 Long-term growth projections (see produced goods and services. Government Chapter 6) depend heavily on continued expenditure adds more significantly to high rates of growth of the non-diamond development in the long run if it contributes private sector, and therefore on increasing to higher productivity, in both the public and the importance of removing every possible private sectors. However, there are always constraint on private sector investment, limits to relying on this source of faster growth and competitiveness. It is therefore growth, set by tax receipts and prudent plausible that Government is continuing to levels of government borrowing. The limits support the private sector through productive will be lower in the first years of NDP 10 investment in infrastructure, and in because of the global economic crisis, and education and training relevant to private will be lower in the long run because of the sector needs. forecast decline in diamond output and revenue. 5.36 The long-term revenue projections discussed above suggest that it may be

5.32 The economic background for NDP possible to sustain modest growth in 10 suggests strongly, therefore, that the government expenditure on social welfare emphasis of economic policy should be to programmes if the non-diamond sector reduce the historic dependence of the private grows successfully. The recent reductions in sector on the growth of government the incidence of HIV suggest that the cost to expenditure. the Government of coping with the HIV/AIDS problem may eventually

5.33 The maximum for government decrease. expenditure proposed in the Mid-Term Review of NDP 9 was 40 percent of GDP. 59

5.37 There may be significant difficulties SUMMARY OF BASIC STRATEGY in accelerating private sector growth. On the FOR NDP 10 one hand, reducing the constraints imposed by government regulations tends to be more 5.41 The implications for economic difficult than increasing government policy of this analysis point to the need for: expenditure. It has proved to be much more • Greater emphasis on the maintenance of difficult to remove regulatory constraints on productive infrastructure, but with investment, than to spend money on new limited capacity in the medium term for projects. Each regulation was introduced for the large increases in investment of a reason, and therefore may be difficult to recent years; abolish. Further, every regulation creates • Increased emphasis on providing for the vested interests in its being maintained, and infrastructure needs of the private sector; some have popular support. Progress on • Continued investment in education and these issues will require strong leadership training, again with an increased from as high a level as possible, as emphasis on the needs of the private individual Ministries are less likely to act to sector, especially for manpower with reduce or remove “their” regulations. It also relevant private sector skills; strongly suggests that new regulations • Further improving the business climate should be introduced only after thorough for private sector investment; analysis of possible unwanted side-effects. • Additional support (including improved internet access) for service exports,

5.38 Growth of both public and private many of which have less of a sectors may be constrained at the beginning comparative disadvantage than of NDP 10 by excess demand for merchandise exports in exporting to construction capacity caused by the build-up countries other than Botswana’s to the 2010 World Cup in South Africa. This immediate neighbouring markets. is, however, a relatively short-term constraint, and construction capacity has 5.42 Present education policy is broadly been increased by Chinese construction appropriate for service exports in particular, companies bidding for projects in Botswana. and for coping with globalisation more generally. Both require a flexible workforce

5.39 The need to reduce the energy- capable of learning new skills, which in turn intensity of GDP growth is increased in the requires workers to have a sound basic short term by shortages of electricity supply education. The experience of other countries in Southern Africa in the next five years. is that it is becoming less likely that The expected increase in the cost of individual workers will be able to keep the electricity will generate some energy-saving same job, using the same skills, throughout a investment, and a reduction in demand from working career, because of the rapidly consumers, but Government action to changing economic environment. The best support and accelerate this process will be a preparation for the training and retraining priority. likely to be needed is good basic literacy and numeracy, plus some knowledge of how to

5.40 Future economic growth will take use computers. At the tertiary level, the place in such a way that it is environmental existence of some categories of graduate sensitive. For example, the energy-intensity unemployment suggests strongly that there of GDP growth will be monitored, and is a shift in emphasis from arts degrees to strategies developed for reducing it. technical and scientific degrees in tertiary institutions. 60 This is also necessary so as to avoid having

5.43 These are the underlying arguments to cut government expenditure in real terms behind the proposed theme for NDP 10: in future. "Accelerating Achievement of Vision 2016 through NDP 10". If the strategy can be Exchange Rate Policy implemented successfully, it will indeed drive the economy towards meeting the 5.47 The real exchange rate is calculated economic and social goals of Vision 2016. by taking account of the nominal exchange rate, and the relative rate of inflation in MACROECONOMIC STRATEGY FOR Botswana and in the economies of NDP 10 Botswana's main trading partners. A weighted average of the real exchange rate, Fiscal Policy using the relative weight of trade with different countries, is used to calculate the

5.44 A cumulative budget surplus was real effective exchange rate. Because achieved over the six years of NDP 9, Botswana trades with countries whose mostly because of the large surpluses from exchange rates vary quite sharply against 2005/06 to 2007/08. Unfortunately, these each other, managing the real exchange rate surpluses, and those accumulated in earlier is a difficult balancing act. If the real years, will be needed to finance the exchange rate appreciates, because inflation projected budget deficits in NDP 10. in Botswana has been higher than in Alternatively, Government will borrow. In important trading partners, and this has not practice, financing the deficits will be been compensated by a depreciation of the undertaken by some combination of the two. nominal exchange rate, there are two possible policies.

5.45 Unfortunately, this scenario means that Government’s accumulated financial 5.48 It is extremely important for the surpluses might not be available after the diversification of the Botswana economy end of NDP 10 to ease the adjustment to that there should be a competitive exchange lower levels of revenue during the following rate. Unlike most economies enjoying large Plan periods. To the extent that the mineral revenues, Botswana has largely Government borrows, the cost of debt avoided an appreciation of the real exchange service will increase. rate, which is the most obvious indicator of the "Dutch Disease". Botswana Government has largely avoided this by spending

5.46 The higher the level of government carefully, and saving revenues that cannot be expenditure before the decline in mineral spent productively. Most commonly, the revenue, the greater will be the adjustment Dutch Disease occurs because the revenues required, and the greater the shock to the from a mineral boom are spent faster than economy in general, and to the level of can be used productively, because of the public services that Government will be able capacity limitations of the domestic to provide. The reverse argument applies. In economy. This drives up domestic prices, other words, the rate of growth of and therefore production costs. government expenditure will be adjusted downwards during NDP 10. This is 5.49 Firstly, higher domestic costs necessary in order to avoid excessive reduced the ability of the non-mineral borrowing and its associated costs, and as sectors of the domestic economy to compete preparation for the lower rate of growth of with imports. Secondly, exporters of primary revenue expected in NDP 11 and thereafter. commodities receive less income after 61 paying higher costs, which leads to lower member of the Southern African Customs production in the short term, and lower Union, there are virtually no barriers to investment in the longer term. Thirdly, imports from South Africa (with the higher domestic costs reduce the ability of exception of agricultural imports). exporters of manufactured goods to compete Consequently, nearly all Botswana in export markets. Similar arguments apply producers of tradable goods and services to producers of services, both in competing have to compete with imports from South with imports, and in exporting. Another way Africa. In addition, significant non- of expressing this is that overspending of traditional exports are sold in South Africa, mineral revenues causes the real exchange for which the real bilateral exchange rate rate to appreciate. against the South African rand is again crucial.

5.50 On the one hand, Botswana could try and reduce the domestic rate of inflation 5.53 There was 7.5 percent devaluation in below that of the country's trading partners, February 2004, and a second devaluation of for long enough to reverse the real exchange 12 percent in May 2005. Although inflation rate appreciation. This is extremely difficult did rise initially following the devaluations to achieve, and can take many years during in 2004 and 2005, the authorities succeeded which the real exchange rate remains in bringing it quickly under control, through overvalued. On the other hand, Botswana a combination of fiscal and monetary policy. could devalue, but this increases inflation The devaluations were mostly successful, which runs the risk of reducing or therefore. All of the earlier real appreciation eliminating any benefits of devaluation. against the euro and the British pound was indeed more than reversed. Slightly more

5.51 Prior to the devaluations of the Pula than half the earlier real appreciation against in 2004 and 2005, there was real exchange the US dollar was reversed. Textile exports rate appreciation against several of the to the USA also continued to rise. There currencies of importance to Botswana's were quite large movements in bilateral real international trade, in particular the US exchange rates in 2008, with the indices dollar, the British pound and the Euro (see moving in opposite directions for the rand the Table 5.1). The US dollar has increased and the British pound on the one hand, and in importance because of the growth of the euro and the US dollar on the other hand. textile exports to the USA under the Africa However, there was some reversal of the Growth and Opportunity Act (AGOA). gains against the rand and the British pound in 2008. This situation demonstrated very

5.52 The real exchange rate of the South clearly the difficulty of maintaining African rand against the Pula is particularly competitive real exchange rates against important for Botswana. More than 80 Botswana's different trading partners at the percent of merchandise imports come from same time. South Africa. Because Botswana is a 62 Table 5.1: Changes in real bilateral exchange rate indices 2002-08 (September 2006 = 100) End of Change 2002-04 2004 2005 2006 2007 2008 Change 2004-08 Rand (a) -12.2% 99.3 92.8 97.4 95.7 108.6 9.4 US dollar +39.2% 132.4 110.7 107.1 111.8 101.4 -23.4 Euro +7.9% 120.3 116.8 102.5 96.4 90.2 -25.0 British pound +14.5% 127.3 120.3 100.5 103.1 128.5 0.9 Note: (a) real exchange rate against the South African rand calculated using South African core inflation. Source: Bank of Botswana Annual Report 2008

5.54 A crawling band exchange rate rate policy. Since the introduction of the arrangement was introduced in 2005, crawl, Botswana's inflation has been higher replacing the fixed peg basket. This was so than that of its main trading partners and this as to ensure continual stability of the Real has necessitated a downward crawl. Effective Exchange Rate (REER) without the need for periodic large discreet Monetary Policy adjustments of the nominal exchange rate. The annual rate of crawl is determined on 5.56 The principal objective of monetary the basis of the differential between policy, which is implemented by the Bank of expected domestic inflation and forecast Botswana, is to prevent inflation from inflation for trading partner countries. It is moving outside a target range, currently implemented through daily small between 3 and 6 percent. This range is adjustments of the Nominal Effective considered to be consistent with achieving Exchange Rate (NEER). This exchange rate maximum sustainable economic growth. The arrangement supports the price stability inflation objective is closely linked to the objective by facilitating a continuous, objectives of exchange rate policy and fiscal orderly and less inflationary response to policy. Indeed, all of the aspects of changes in economic fundamentals. In macroeconomic policy are closely linked to contrast, unpredictable large discrete each other, because at the macroeconomic adjustments (as implemented in the past) are level each policy has an impact on all other less transparent and can result in sharp price macroeconomic policies. increases. There is also the risk of introducing imbalances in the economy and 5.57 The main weapon available to the undermining prospects for policy Bank of Botswana for controlling the rate of coordination and credibility. inflation is the Bank Rate. Changes in the Bank Rate are reflected in commercial bank

5.55 The rate of crawl is thus determined interest rates, most notably the cost of using a forward-looking approach and borrowing as reflected in the prime rate. The revised on a regular basis. In the forward- most creditworthy borrowers can borrow looking scheme, the authorities determine, at from commercial banks at prime rate or less, a given time, the rate of crawl for a with other borrowers having to pay a higher subsequent period; normally, the next twelve rate of interest. Actual borrowing rates are months. Maintaining a credible crawling normally expressed as so many percentage peg/band mechanism imposes certain points above the prime rate, so that if prime constraints on other economic policies such rate changes, the cost of borrowing to all as monetary and fiscal policies, where these borrowers tends to change by the same policies have to complement the exchange number of percentage points. 63 resulting in the introduction of new loan

5.58 To sustain a level of interest rates products, the general increase in incomes that is consistent with the monetary policy and the substantial loan amounts associated stance, the Bank of Botswana also with large new investment projects. influences the quantity of loanable funds in Moreover, in addition to domestic aggregate the banking system through the sale and demand, there are other significant purchase of Bank of Botswana Certificates influences on domestic inflation, such as (BoBCs). In an environment of excess exchange rate and foreign price liquidity in the banking system, as currently developments, changes in administered prevailing in Botswana, there could be a prices and inflation expectations. tendency for bidding down of interest rates, even when it is desirable to maintain them at 5.62 The implementation of monetary a higher level. In these circumstances, the policy during NDP 10 will, therefore, Bank of Botswana mops up the excess involve some departures from the liquidity by selling BoBCs to the approaches adopted in previous years. The commercial banks, and pays an interest rate inflation objective will be specified over a that is appropriate for a given monetary medium-term horizon (a rolling three-year policy stance. period) and the medium-term inflation forecast will be used as the signal for policy

5.59 An increase in the cost of borrowing response. The Bank of Botswana has made has an impact on the demand for credit and, advances in estimating aggregate demand in turn, on aggregate demand and, therefore, conditions and other influences on inflation. on inflation. If the cost of borrowing This facilitates a more comprehensive increases, borrowers may be forced to assessment of the inflation outlook for borrow less because the monthly debt policy purposes. service increases. Borrowers are then not able to borrow as much as previously, and 5.63 The medium-term period used for the demand for goods and services is forecasting inflation is also a reasonable reduced with a dampening effect on period over which monetary policy can inflation. affect demand pressures and price developments. In the context of regular

5.60 Credit growth is a useful indicator of policy reviews, deviations of the medium- prospective demand conditions and the term inflation forecast from the target range likely impact on inflation. It is against this would signal the need for a policy response. background that the Bank of Botswana, up Monetary policy is, therefore, forward- to 2007, specified a range of credit growth looking. The currently observed level of that was consistent with the inflation inflation and the short-term forecast have objective. Another advantage of using the already been determined by past rate of credit growth as an indicator of developments, while short-term price demand is that the relevant data are available movements are mainly influenced by shocks on a more timely and reliable basis than and do not respond to current policy action most other indicators. to any significant degree.

5.61 However, demand for credit 5.64 Monetary policy formulation during depends not only on interest rates; it is also NDP 10 will also involve continuous influenced by other developments in the enhancement of transparency and economy. In Botswana, these other communication in order to sustain policy influences include structural changes in the credibility, as well as to guide inflation financial sector, greater competition expectations and better-informed 64 anticipation of policy direction by the on the Botswana Stock Exchange, so that general public. Appropriately anchored this source of finance has not been used by inflation expectations contribute to the the majority of Botswana producers. During attainment of the inflation objective, as price NDP 10, the Government will continue to adjustments and demand for wage increases make sure that current legislation and are more likely to be aligned to the price regulations do not impede the growth of the stability objective. Important elements of the Stock Exchange (see Chapter 9, the section communication and transparency strategy of on finance, for further detailed discussion of the Bank of Botswana are the regular financial strategy). dissemination of the monetary policy framework, review of inflation 5.68 One aspect of interest rate policy is developments, publication of the inflation relatively unimportant in Botswana. In forecast and routine announcement of countries with major financial markets, decisions of policy review meetings, as well changes in interest rates can cause large as pre-announcement of policy review short-term capital movements, in other schedules. words large inflows or outflows of hot money. Such flows can cause abrupt and

5.65 Success maintaining inflation within unwanted changes in exchange rates, force the target range should result in lower levels unwanted changes in interest rates, and put a of interest rates in the economy, which strain on foreign exchange reserves. would support investment and business growth. Therefore, during NDP 10, the Bank 5.69 Most crucially, inflows of hot of Botswana will continue to use its best money can be rapidly reversed, and this can endeavours to control inflation, and to occur independently of policy or events in achieve the objective of maintaining it the recipient country. It is risky, therefore, within the 3–6 percent range, without for hot money to be used for investment, undermining sustainable economic growth. because the economy might then have no provision against the possibility of a sudden

5.66 Businesses can avoid the high cost outflow. That is the reason why some of borrowing, and the risks associated with countries, for example Malaysia in the late high nominal interest rates and high rates of 1990s, have taken measures to prevent inflation, by issuing shares. The yield on inflows of short-term capital. shares, representing the cost to the business of paying dividends, can be lower initially 5.70 Financial markets in Botswana, the than the current interest rate because markets in equities and bonds on the Stock investors expect profits and dividends to Exchange, are neither large enough nor increase with inflation. Businesses can by liquid enough to attract significant inflows definition afford to pay higher dividends if of short term foreign investment. Foreign their profits increase, while enjoying a lower investment on the Botswana Stock Exchange initial cost of finance and not having to is mostly relatively long-term, because of make any capital repayments. Dividends the difficulty of selling either shares or need not be paid, or can be reduced, when bonds on a significant scale in the event of a profits fall, whereas interest on loans is change in interest rates, or for some other always due. reason. Furthermore, Botswana has large enough foreign exchange reserves for any

5.67 It is possible to issue shares short-term capital movements to be privately, or through a public flotation on absorbed, so that policy changes cannot be the Botswana Stock Exchange. To date, forced on the authorities by such relatively few companies have issued shares movements. 65

5.75 The Southern African Development

5.71 Botswana is fortunate in not having Community (SADC) Free Trade Area was to be concerned about this aspect of launched in 2008, but this will have a macroeconomic policy. This contrasts with relatively minor effect on most of South Africa, for example, where short-term Botswana's trade (the principal exception is capital movements can disrupt trade in agricultural goods). Botswana macroeconomic policy. The risk of large already has free trade with South Africa, short-term outflows means that they have to whose GDP is about 75 percent of total be provisioned against. If financial reserves SADC GDP. There is a free trade agreement are not large enough, interest rates may have with Zimbabwe, but this is currently of to be raised, or some other aspect of relatively little importance. It could become macroeconomic policy may have to be relevant when the Zimbabwean economy changed. recovers. Transport links with other SADC economies are relatively poor or non-

5.72 In the long run, Botswana would existent, and their economies are relatively benefit from developing larger and more small, so that significant increases in trade liquid financial markets. In particular, it are currently unlikely. Zambia is a possible would be of great benefit if more firms were exception, although increased trade would to have access to the market in equities, as a be greatly facilitated by improving the way of raising capital relatively cheaply, and transport links. as a way of sharing risk with investors. Savers would also benefit from a wider 5.76 Agreement to an Economic range of domestic investment opportunities. Partnership Agreement (EPA) with the EU This is particularly true of pension funds and will not expose local producers to significant insurance companies, who invest on behalf additional competition from EU of individuals. merchandise exporters. South Africa already has a free trade agreement with the EU

5.73 If, and when, domestic financial which affects Botswana equally as a markets develop further, the authorities will member of SACU. have to develop policies to cope with short- term capital inflows and outflows, to avoid 5.77 Research by BIDPA in 2000, on the unwanted side effects arising from capital impact of the EU (European Union)/South market development. Africa trade agreement on the smaller members of SACU, showed a surprisingly International Trade Agreements small effect. In part, this was because many of the goods imported from the EU were not

5.74 Competition for Botswana competing in the same market as SACU producers has got tougher, and will get production. For example, cheap shoes tougher in future, because the common produced in Lesotho, and sold to low- external tariffs of SACU have been reduced, income consumers in South Africa, did not and a programme of further reductions is compete with expensive shoes imported planned. from Europe for high-income consumers. 66 PRIVATE SECTOR DEVELOPMENT STRATEGY FOR NDP 10

5.78 The main issues constraining private exports in 2007, almost maintained in 2008. sector growth, and the policy changes However, it is doubtful that textile exports necessary to accelerate private sector growth from Botswana would be able to compete during NDP 10, were identified by without privileged access to those two BOCCIM in 2008. This section brings out markets. the main points of the proposed strategy for private sector development. 5.82 Government intends to strengthen its capacity to enhance private sector

5.79 Botswana will pursue a three- growth. The objective is to improve the pronged strategy aimed at supporting efforts business climate, in particular by removing by Government and the private sector to: or minimizing the negative effects of all the • Create a private sector enabling and existing administrative, bureaucratic and supportive policy environment; regulatory impediments to private sector • Stimulate increased investment flows; development. The main components of the and strategy for supporting and promoting • Enhance the competitiveness of the private sector growth are set out below. It is private sector. worth noting first, though, that there are important positive aspects of the investment

5.80 There are two levels of international climate in Botswana. competitiveness which producers in Botswana need to achieve. First, producers The Investment Climate of tradable goods and services in Botswana Positive factors must be able to compete with producers in SACU, most notably in South Africa. The SACU market is protected by the Common 5.83 Botswana has an extremely good External Tariff. Botswana has demonstrated record of macroeconomic stability and GDP its ability to compete within this protected growth. For 30 years, it was the highest in market, through the large decrease in the the world. Recently it has slowed, but ratio of imports to GDP, and its ability to growth remained positive except for the export to the South African market, both global recession year 2008/09. Economic already noted. A further achievement is that growth was greater than the rate of growth these trends have not been reversed in recent of population in almost all years. years, despite the lowering of the Common External Tariff. 5.84 There are no exchange controls, and the economy has large financial resources to

5.81 Second, producers of goods and enable it to cope with exogenous shocks (see services exporting to markets outside the Chapter 4 on the import cover provided by region must be able to compete with non- the foreign exchange reserves, for example). regional producers, without the protection of the SACU Common External Tariff. 5.85 Commercial bank credit is available Botswana producers have had mixed success for those regarded by the commercial banks in exporting outside the region. Textile as being creditworthy customers, because exports have grown rapidly, and not only to commercial bank capital and liquidity the United States under AGOA, but also to greatly exceed legal requirements. It appears the European Union. There was an that the commercial banks in Botswana have exceptionally large increase in textile not been affected by the global banking crisis, because, among other reasons, they 67 did not invest in what turned out to be toxic 5.89 The investment climate depends on assets issued abroad. Occasional large a peaceful environment, including low levels corporate failures have inflicted losses on of crime, corruption and road traffic one or more of the commercial banks, but accidents, and respect for the rule of law. these have always been within their capacity Crime levels are substantially below those of to finance from current profits, so that it was other countries in the region, but are tending not necessary to draw upon shareholders' to rise, as are road traffic accidents. The capital and reserves. The capital base of the Botswana Police Service has strategies to commercial banks rose by 38 percent in the deal with these issues, which will continue year to June 2008, the growth of commercial to be important during NDP 10. bank lending continued, while lending backed by property was only 3 percent of 5.90 Labour productivity and total factor GDP. productivity are lower in Botswana than in a number of comparable countries, including

5.86 There is evidence, though, that bank South Africa, Namibia and Swaziland, lending in Botswana is inefficient. although they are higher than in Lesotho as According to a World Bank study " … the measured by the World Bank. However, banking sector does not do a particularly median monthly wages in Botswana are good job of allocating credit - in contrast to lower than in Namibia and Swaziland, and most countries, neither productivity nor very substantially lower than in South wages are higher in firms with access to Africa. The median monthly wage in credit". Botswana is only about 20 percent of the median monthly wage in South Africa.

5.87 Since 2000, Botswana has had an excellent sovereign credit rating from two of 5.91 As a result, unit labour costs in the international credit rating agencies. At Botswana are approximately the same as present, the Botswana Government does not unit labour costs in Namibia and Swaziland, need to use these ratings directly. It would and substantially lower than in Lesotho be uneconomic in most circumstances to (about 60 percent) and South Africa (about borrow abroad at commercial rates of 67 percent). On this measure, therefore, interest, which are normally higher than can Botswana is in a relatively sound be earned on the foreign exchange reserves. competitive position compared with its fellow members of SACU. This partly

5.88 Nevertheless, the sovereign credit explains why not all of Botswana's textile rating has some benefits for Botswana. First, exports, for example, are dependent on it should make it easier for domestic European and American concessions; some companies to borrow abroad, by increasing go to South Africa where they have to be the confidence of lenders in the Botswana fully competitive within SACU's external economy and its sound management. tariff. Second, the prospect of a fall in the rating should be an important constraint on 5.92 Botswana is less competitive with changes in government policy regarded as some non-regional countries. The median inappropriate by the credit rating agencies. firm in Botswana is more productive than in The maintenance of Botswana's credit low-income countries withiin sub-Saharan ratings suggests that this may be working as Africa, and about as productive as in lower intended. Third, the credit rating improves middle income countries in the sample. the general investment climate and so However, firms in Botswana are less reduces the high profit levels sought by productive than firms in upper middle investors in riskier countries. income comparator countries. 68 Negative External Perceptions of the the other investment incentives, which have Investment Climate been introduced in competitor countries. These countries have not only reduced their

5.93 Potential investors, particularly taxes, but have generally improved their foreign investors, are aware of the World economies and their political and investment Bank's annual surveys of the investment conditions in general. climate in a large number of countries: "Doing Business". Botswana's overall 5.97 Furthermore, the tax system is ranking in successive editions of Doing complex, as are other regulations. According Business got worse for several years, falling to Doing Business 2010, it currently requires from 44th place in 2005 to 48th place in an average of 140 hours for a business to 2006 and 51st place in 2007. comply with the Botswana tax regulations. There are still 19 different payments

5.94 There was a significant required in paying taxes, 6 documents improvement in 2008, to 38th place but it required for every export, 9 for imports, and got worsened to 39th and 45th place in 2009 29 procedures (up from 26 recorded in 2007 and 2010, respectively. This was ) required for the enforcing of contracts. encouraging, but the improvement was mainly in aspects of doing business in which 5.98 The tax review, announced in the Botswana remain much worse than average. 2008 Budget Speech, will be benchmarked For example, there was an improvement in against the best foreign tax systems, such as the ease of starting a business, but only from those of Sweden, the United Arab Emirates 102nd place in 2006 to 83rd place in 2010. and Vanuatu. There is an urgent need to There are 10 procedures, requiring 61 days, simplify the tax structure in order to to start a business. This compares with 34 improve the compliance rate, to reduce the days in Kenya, 6 days in Mauritius, 26 days costs of compliance and administration, and in Mozambique, 66 days in Namibia, and 22 to reduce the demand for scarce accountants days in South Africa. In best practice and tax administrators. economies (New Zealand and Denmark), there is only 1 procedure, taking on average Work and Residence Permits a day to complete. There is an urgent need, therefore, to reduce the number of 5.99 One of the most important procedures, and make them simpler. constraints on the private sector is a combination of the shortage of skilled labour

5.95 The index for protection of investors and the difficulty of getting work and worsened from 38th place in 2009 41st place residence permits for non-citizen employees. in 2010. There were negligible changes in Skilled labour shortages are being made the other components of the overall index, worse by the impact of HIV/AIDS, although and Botswana continued to rank poorly on the effects are mitigated by the provision of the ease of dealing with construction permits Anti-Retroviral (ARVs). (122nd), and even worse on the ease of trading across borders (150th). 5.100 Shortages of skilled labour add to the importance of making the recruitment of Tax Regime foreign skills as straightforward as possible. International research finds a strong

5.96 Botswana's tax rates have generally correlation between the ease of importing been low compared to comparator countries. skills and skilled labour, on the one hand, This advantage has been eroded, however, and rapid economic growth, on the other by the reduction in tax rates, together with hand. Private sector employers in Botswana 69 reported that it was difficult to obtain before, mainly because of a worsened residence and work permits for skilled macroeconomic situation. Botswana foreign workers, but delays have been dropped 19 places (from 22 to 41st) on nd greatly reduced (Chapter 9, paragraph macroeconomic stability. It is clear, for this 9.318). reason among others, that the fiscal rule of the balanced budget should be restored as

5.101 Requirements for work permits, soon as possible. Among other benefits, this permanent residence, and citizenship will will minimise the need to raise interest rates. continue to be, therefore, be reviewed to High interest rates are necessary as one of make it easier to acquire skilled human the ways of reducing inflation, but they have resources. The ongoing drafting of Bills to a negative impact on aggregate demand, and amend the Immigration and Citizenship Act, increase the cost of borrowing for producers, and the Employment of Non-Citizens Act, both of which slow the growth of the will be an opportunity to improve economy. Botswana's skills base. Privatisation Future Progress with Deregulation

5.105 Private sector development requires

5.102 The fact that some constraints have an efficient public sector delivery system, been reduced, or removed altogether, does and a public sector that is responsive to not necessarily reduce the negative impact private sector interests. The privatisation and of other constraints. For example, the time rationalisation of parastatals should reduce taken to register a company has been the size of the public sector and its financial drastically reduced through computerisation, and administrative burden. Activities that which in itself is excellent. Unfortunately, the private sector can do more efficiently though, the removal of one constraint may will be outsourced. push the investor up against others.

5.106 The White Paper on Privatisation

5.103 A major effort will be made during was published in 2000, and the privatisation NDP 10, to reduce the constraints on agency (PEEPA) was established soon investment, and for this to show up in the afterwards. There has not yet been progress widely published international indices, in on the sale of the larger parastatals to the order to sustain private sector growth even private sector. Progress on such sales will further. This applies particularly to foreign provide a positive signal to investors on the investment. Private sector investment may determination of the Government to reduce have responded to other stimuli, for example its role in the economy, and to promote real exchange rate depreciation, but it would private sector interests. increase faster when the burden of regulations are reduced. 5.107 A positive factor is that the financing of parastatals has been largely Continued Macroeconomic Stability privatised. Government no longer provides most of the finance for parastatal

5.104 Macroeconomic stability is a investment, as it did in the past on a large necessary (although not a sufficient) scale. The Public Debt Service Fund (PDSF) condition for private sector growth, and loan book has been sold. Most of the larger especially for attracting investment, both parastatals borrow from the market, and domestic and foreign. Botswana’s ranking there has been net repayment to Government on the Global Competitiveness Index in recent years. 2009/10 fell 10 places to 66th from the year 70 Public Sector Infrastructure and Services economy to produce goods and services to internationally acceptable quality standards.

5.108 There is need for the strategic Priority will be given to investing in those development of infrastructure to enable the areas which will sustain and increase the private sector to operate efficiently. The country’s capacity for long-term growth, service sector has been identified as a including those services which do not potential source of export growth. For this to require expensive overland transport. happen, the ICT infrastructure will be improved. Where economically rational, the Technological Innovation Government will build infrastructure in less developed areas, so as to attract both 5.111 Government will promote domestic and foreign investment. technological innovation in industry through Government will assess development of the increased support for knowledge and Namibian port which would provide technology diffusion into the business alternative access to the sea, and may attract sector, product research and development by investment along this corridor. Private sector the business sector, the development of participation in infrastructure and basic networks and clusters, academic research, service provision can improve efficiency of and by adapting technology imported from the delivery of essential services, and can abroad. relieve pressure on the public budget in the short term (but not in the long term). The Industry Relevant Skills Public Private Partnership (PPP) arrangement will be further developed 5.112 Botswana is faced with a high during NDP 10. unemployment rate, including graduates of tertiary institutions. Tackling the existing Increased FDI mismatch requires reform of the education system such that it provides enterprises with

5.109 The inflow of FDI has been low. workers with relevant skills, and the Direct investment in Botswana increased by capacity to adapt to changing circumstances. only 12.5 percent in nominal terms, in the A skills development strategy will be six years to the end of 2008. In part, this developed to give impetus to the recently may be because the role of attracting completed National Human Resource investment remains fragmented. There are Development Strategy, including a too many role players: Botswana comprehensive review of the curricula to Development Corporation (BDC), IFSC and ensure the development of skills relevant to Botswana Export Development and private sector employment. Investment Authority (BEDIA). Government aims to rationalise the Streamlining Policies for Private Sector functions of these institutions by assigning Support their role in attracting investment to one entity as well as improve their coordination. 5.113 Policy action for entrepreneurs and Small, Medium and Micro Enterprises Enhanced Competitiveness of the Private (SMMEs) needs a coherent approach in Sector support of the competitiveness of the private sector. Different policy documents aimed at

5.110 International competitiveness plays supporting private sector development a crucial role in building the success of any should fall under a single framework, with a economy. Greater focus will be placed on streamlined monitoring and evaluation productivity across all sectors of the mechanism. 71 Develop Business and Entrepreneurial SUMMARY OF STRATEGY FOR NDP Education 10

5.114 The ongoing efforts to integrate 5.118 Overall, the economic strategy for business and entrepreneurship education in NDP 10 can be summarised as follows: school curricula with a view to fostering an • Restrain government spending to limit entrepreneurial mindset among young the impact of the global recession on the people will be intensified. It should be budget; noted, in this context, that most potential • Seek every opportunity to redirect young entrepreneurs will benefit from government spending to enhance the experience as an employee in somebody productivity of both the public and else's business, prior to setting up a business private sectors; of their own. It is not often possible for • In particular, direct spending on young people set up a business immediately infrastructure, education and training after leaving full-time education or training. towards the needs of the private sector; • Give priority to catching up on the Access to Finance backlog in the maintenance of public sector assets, and to preventing any new

5.115 Access to finance is key to reducing backlog emerging; barriers to the start up and growth of • Reduce the disadvantages of being businesses. Entrepreneurs need access to landlocked by taking every opportunity appropriate banking products, expert to export to neighbouring markets, and financial consulting support and an to export services with negligible efficiently functioning venture capital transport costs; market with increased competition. Efforts • Act urgently to reduce the regulatory will be made to deepen and improve the constraints on the private sector, in order financial markets in Botswana, and their to encourage private sector investment, efficient service delivery. It is important in and to improve Botswana's ratings in this context to note that 100 percent loan international comparisons of the finance is inappropriate for the starting of a investment climate. new business. Some risk capital, in the form of equity investment and/or the savings of the founders of the business, is usually necessary in conjunction with loan finance. Intellectual Property

5.116 Intellectual Property is important to both industry and the service sector. With the growing scale of counterfeiting and piracy, enforcement of intellectual property rights will be strengthened through laws such as those which govern copyright and cyber crime.

5.117 Further details on many of these points are provided in Chapter 9. 72 CHAPTER 6 PROJECTIONS OF GOVERNMENT’S REVENUE AND EXPENDITURE LIMITS FOR NDP 10 GOVERNMENT EXPENDITURE: STRATEGIC ISSUES

6.1 The strategy for government necessarily every individual year, but over expenditure in NDP 10 depends on four several years taken together. Government major issues. The first issue is on how the expenditure in any given year does not need composition of government expenditure can to be changed to take account of short-term best contribute to growth of the private revenue fluctuations. Other things equal, this sector. Emphasis on the requirements of the strategy will have be continued during NDP private sector is necessary because the 10. recent global crises have shown that in the short-term there can be a severe decline in 6.4 The global economic downturn, diamond revenues. The long-term forecasts which became more pronounced in the also indicate that diamond revenues will second half of 2008, makes it necessary for decline sharply towards the end of NDP 11, government expenditure to increase more and decrease to almost zero by the end of slowly than would otherwise have been the NDP 12. It will, however, be possible to case. Even so, the immediate prospect is for maintain positive real growth of government large deficits in the early years of the Plan. expenditure when the non-diamond private The projections are for budget surpluses in sector consistently achieves high rates of the last three years of the Plan, but not growth. nearly large enough to offset the earlier deficits. These projections are based on a

6.2 The second issue is on what recovery in the global economy within two resources are expected to be available. years. If this does not happen, government Projections of government revenue have two expenditure will have to be further components: mineral revenue and non- restrained. mineral revenue. The Ministry of Minerals, Energy and Water Resources (MMEWR) 6.5 The long-term objective is to manage has provided projections of the expected the rate of growth of government mineral revenue accruing to government expenditure so that the budget can be in from diamond mining. Projections of non- long-term balance as revenues from mineral revenue have been made from likely diamonds decline. Long-term projections of growth rates of the non-mining private the revenue available from the non-diamond sector, using the recent historical data and private sector suggest that government the likely future of the ratio of non-mineral expenditure should be able to continue to revenue to GDP in the non-mining private grow in real terms, if rates of growth are sector. only just above the population growth rate (provided that the non-diamond private

6.3 The third issue concerns whether the sector does indeed grow fast and budget should, taking one year with another, consistently). be in surplus, deficit or balanced. In recent years, the overall strategy has been for the 6.6 Overall Government expenditure budget to be approximately in balance, not projections will result in a substantial budget 73 deficit over the NDP 10 period. This deficit 2009/10 and to decrease in each of the will be financed, by a combination of using remaining years of the Plan by 4.6 percent. Government's accumulated balances at the Despite these annual decreases, development Bank of Botswana, and by borrowing. For expenditure is projected to be higher in 2009/10, Government borrowed P10.1 2015/16 than in 2006/07, because of the billion from the African Development Bank large increases in the last two years of NDP for budget support. Government will 9 (2007/08 and 2008/09). Development probably seek further loans from abroad and expenditure may have to be less than issue domestic bonds. Government has not projected, if recurrent expenditure proves borrowed on a significant scale for many inadequate to service past and future years, because of the long period of budget development expenditure. surpluses. The new situation will entail more active management of debt policy than has 6.9 The expenditure projections for NDP been the case before. 10 were developed at a time of extreme uncertainty. Crucially, the timing and extent

6.7 The fourth issue is on how the total of any global economic recovery was not of government expenditure should be known. Overall, therefore, it is essential to divided between recurrent and development note that the rate of growth of total expenditure, and between the various government expenditure is more than objectives of the Government. On the one usually subject to downward revision if hand, much of development expenditure will economic circumstances change for the be aimed contributing to the future growth worse. of the private sector GDP. However, some categories of development expenditure Projections of GDP in NDP 10 (Base contribute very little to private sector Case) growth, for example government office buildings. Currently, several categories of 6.10 The base case projections for GDP in recurrent spending are contributing to the NDP 10, in fiscal years ending in March future private sector growth, for example each year, were constructed as follows. spending on education and training. On the Forecasts of mining GDP were based on the other hand, the recent upsurge in forecasts available at the beginning of the development spending requires increases in Plan period, of mining output and exports. recurrent spending to meet its recurrent These assume that there will be a major drop costs. In addition, recurrent spending will in output in the first year of the Plan, a small continue to be used to catch up on the recovery in the following year, and backlog in maintenance of past projects. It resumption to near pre-recession levels in would be really unreasonable if past the following years. The projections are development projects, and those proposed based, therefore, on an expectation that the for NDP 10, could not be properly impact of the global recession on Botswana, maintained. in particular on diamond output and exports, will last two years. These projections are

6.8 Taking these issues into account, the unusually uncertain because the timing and projections in the base case are for recurrent extent of recovery from the global recession expenditure, following a budgeted increase are not known. of 8.1 percent in 2009/10, to continue to increase in real terms, although very slowly, 6.11 Because the starting point of NDP 10 in the remaining six years of NDP 10. was March 2009, when mining output had Development expenditure is budgeted to fallen by 65.0 percent from the previous decrease in real terms by 13.0 percent in 74 quarter, and by 20.0 percent on an annual two years of the Plan, because of the basis, the rate of growth in NDP 10 appears expected impact of slower growth of exceptionally high. But this merely reflects government expenditure and the global recovery from an exceptionally low point. recession. Its growth rate is projected to recover gradually in the following two years,

6.12 It is projected that the non-mining reaching the rate of growth projected pre- private sector will continue to grow in real recession (7 percent) in the last three years terms, for two main reasons. First, the of the Plan. Government will be able to sustain the real level of its spending in the short and 6.14 Growth of General Government is medium term because of being able to draw projected to grow in line with the projected on the savings from past budget surpluses, real rates of growth of government and being able to borrow because of a low expenditure. GDP in NDP 10 is then the level of past borrowing. This will do much sum of these three projections, as shown in to sustain the non-mining private sector, Table 6.1. when added to the very large increases in government expenditure in the last two years 6.15 Overall, the compound rate of of NDP 9. growth of GDP in NDP 10 is projected to be 3.1 percent, as shown in Table 6.2. This is

6.13 Second, the non-mining private higher than previously projected, because of sector began to grow faster before the the sharp fall in mining output in the quarter upsurge in government expenditure in to March 2009. Starting from a lower level 2007/08 and 2008/09, and this continued generates a higher rate of growth. The trend despite the impact of the global recession. rate of growth in NDP 9 was 3.5 percent. Growth of the non-mining private sector was 6.2 percent in the year to March 2009 (the 6.16 With such sharp variations in growth final year of NDP 9). This showed non- rates, any attempt to provide an “average” mining private sector growth to be at least rate of growth for the whole of the Plan can partly independent of government be misleading. For the same reason, a low expenditure. Nevertheless, growth of the starting point, projecting higher rates of non-mining private sector is projected to be growth in NDP 10 than previously, does not only just over half its average level in mean that GDP will be higher than 2007/08 and 2008/9 (9.5 percent) in the first previously projected. Table 6.1: Base case projections of GDP in NDP 10 (P billion, constant 2008 prices) Fiscal years 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Mining sector 19.4 20.3 26.6 34.4 45.1 48.2 41.3 General Government 14.5 14.4 14.2 14.2 14.2 14.2 14.2 Non-mining private sector 44.2 46.0 48.3 51.2 54.8 58.6 62.7 GDP 78.1 80.6 89.1 99.8 114.1 121.0 118.3 Source: MFDP projections 75 Table 6.2: Base case projections of GDP annual growth rates in NDP 10(percentages) Fiscal years 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Compound growth rates Mining sector -49.5 4.7 30.7 29.8 4.5 13.3 -3.5 0.2 General Government -0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Non-mining private sector 3.8 3.8 4.7 5.7 7.0 7.0 7.0 5.6 GDP -16.5 3.2 9.7 11.1 5.1 7.9 2.6 3.1 Source: MFDP projections Long Term Economic Strategy adjustment to a fall in government revenue. Failures to adjust promptly have led to

6.17 The long term forecast is that income budget deficits, high rates of inflation, for distribution to the Government from balance of payments deficits, shortage of diamond mining will fall drastically, by foreign exchange leading to inability to pay about 65 percent by the end of NDP 11 in for imports of consumer goods and 2022, with a decline to near zero in 2029 industrial inputs, increasing debt and (see Figure 5.1 in the previous chapter). At eventual inability to service that debt. The that time, government expenditure as a share longer adjustment is postponed, the harder of GDP will have to be reduced to adjustment becomes. In part, this is because significantly less than 30 percent of GDP in financial reserves have been exhausted, order to avoid budget deficits. The ratio of while borrowing instead of adjustment government expenditure to GDP will have to makes it more expensive and, eventually, be lower if the non-mining private sector impossible to borrow from most sources. At grows less than projected, as this will reduce that point, credit is only available from the the amount of non-mineral government International Financial Institutions and other revenue. donors, and comes with severe conditionality.

6.18 The timing of the long-term reduction of government expenditure as a 6.20 Examples of this scenario have proportion of GDP could turn out to be later caused many countries to suffer from many if technical and prospecting developments in years of lost economic growth, severe the mining sector are favourable. It would be decreases in GDP accompanied by shortages risky, though, to assume that mineral of essential goods and services, and much revenue will be significantly greater than the hardship. The adjustment process is then current projections, especially as the more difficult and costly than would have projections could turn out to be been necessary if adjustment had not been overoptimistic rather than too cautious. It is delayed. equally important to adjust to short term 6.21 The projected fall in diamond falls in revenue sooner rather than later. The production in the long term means that base case revenue projections assume that policy must be directed towards the growth the global recession will last only two years, of other private sector activity, and to the for example. private sector becoming less dependent on government expenditure than previously. However, even if economic diversification

6.19 There is a large amount of evidence occurs more successfully than in the base from other African countries of the case, as for example in the optimistic extremely high cost of postponing scenario, it is extremely unlikely that other 76 forms of private sector activity will generate projections of growth of the non-mining as high a proportion of their output in the private sector. Together with decisions on form of government revenue as diamond how large a deficit can be prudently mining has. Moreover, some private sector financed, the revenue projections set the investment is attracted by the offer of tax limits to government expenditure during holidays, and other tax concessions, further NDP 10. reducing tax revenue from the private sector.

6.25 Variations on the base case, an

6.22 Accelerated economic diversification optimistic and a pessimistic scenario using will not mean, therefore, that adjustment to higher and lower assumptions regarding the lower rates of growth of government speed of recovery of the global economy and expenditure will not be necessary. At best, it the growth of the non-mining private sector, will reduce the degree of adjustment are presented in the following sections. required. This must be taken into account in Basically, any increase in the revenue order to reduce the difficulty for the projected in the base case will mostly be Government of adjusting to lower revenue in used to reduce the deficit. If revenue is the years following NDP 10. lower than in the base case, government expenditure will be cut because a higher

6.23 As noted in paragraph 6.5, provided budget deficit will not be allowed. that the rate of growth of government expenditure is restrained, and that efforts to 6.26 During the early part of the encourage the growth of the non-mining preparation of NDP 10, the MMEWR private sector are successful, there need not provided forecasts of expected government be an actual reduction in the level of revenue from diamond production during government expenditure (in real terms), NDP 10. These forecasts showed diamond although lower rates of growth than in the exports, and the consequent government past will almost certainly be necessary. It revenue, increasing throughout the seven would be extremely damaging if the public years of the Plan. These forecasts have had sector services which have been developed to be revised to take account of the current have to be cut back. Avoiding this will need global recession. to be a major objective of economic policy. MMEWR's projections assume that Government's revenue from diamonds will Projections of Revenue (Base Case) be markedly less than the pre-recession forecast, for the first four years of NDP 10, Mineral Revenue with recovery of some of the lost production in the fifth and sixth years, and a return to

6.24 The base case scenario for revenue the previously projected levels of production during NDP 10 uses projections of diamond in the final year of the Plan. The total revenue accruing to the Government from reduction of mineral revenue is projected to MMEWR. To these are added projections of be P11.0 billion over NDP 10 (Table 6.3). non-mineral revenue derived from 77 Table 6.3: Changes in projected mineral revenue in NDP 10, as a result of the global recession (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Pre-recession 11.3 11.0 10.5 13.2 14.9 14.4 14.0 89.3 NDP 10 projection 6.4 6.7 8.8 11.4 15.0 16.0 14.0 78.3 Change from pre- recession -4.9 -4.3 -1.7 -1.8 0.1 1.6 0.0 -11.0 Projected NDP 10 growth (%) -35.7% 4.7% 31.0% 29.5% 31.1% 6.8% -14.2% Note: (a) totals may not add because of rounding Source: Debswana

6.27 The projections of mineral revenue 6.30 The pre-recession base case was for ignore any possible revenue from the rest of real growth of the non-mining private sector the mining sector. Base metal prices were of 7 percent per year in real terms from exceptionally high in 2007, but fell back 2009/10 onwards. That would have been again in 2008 and 2009. It would be slightly higher than the NDP 9 average (6.2 imprudent to assume a renewed upsurge in percent), but below the average for the last base metal prices. It is unlikely that three years of NDP 9 (8.4 percent). It is significant tax revenue will be received from significant that non-mining private sector BCL, although the period of high prices growth was not apparently much affected by enabled the company to pay off most of its the global recession in the final year of NDP debts. 9 (2008/09, year ending March 2009). GDP fell by 3.3 percent, but the non-mining

6.28 Some of the recent prospecting private sector grew by 6.2 percent. activity in Botswana may lead to new mines Moreover, this growth rate accelerated in the being developed, although many of them will first quarter of NDP 10. This demonstrates not be developed until the global economy the relative isolation of the mining sector recovers. There is usually at least five years from the rest of the economy. Projections of between the identification of a commercially non-mineral revenue have been revised viable orebody, and mining production. downwards, as shown in Table 6.4. The Profitability may not be attained downward revision is because of the immediately, because capital expenditures expected future impact of the economic can be written off, for tax purposes, against recession, for example on non-diamond operating profit for a number of years. It is exports, and because of the planned therefore considered unlikely that there will slowdown in the growth of government be significant mineral revenue during NDP expenditure. 10 from the recent mineral prospecting.

6.31 The projections are that non-mineral Non-mineral Revenue revenue will be less than previously projected, by P35.9 billion, in the whole of

6.29 The projections of non-mineral NDP 10. The large fall in the budget revenue are based on growth of the non- estimates for 2009/10, compared with the mining private sector (taken to include outturn for 2008/09, is partly accounted for parastatals). The non-mining private sector is by unexpectedly large receipts from general taken here to be GDP less general sales tax/VAT and from sales of property in government, less mining GDP. 2008/09. The non-mining private sector is projected to resume pre-recession rates of 78 growth in the last three years of the Plan, but from a lower base. Table 6.4: Changes in projections of non-mineral revenue and grants (budget estimates 2009/10, constant September 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Pre-recession 19.9 21.3 22.7 24.3 25.9 27.7 29.6 171.4 NDP 10 projection 16.3 17.4 17.9 18.5 20.4 21.8 23.3 135.5 Change from pre- recession -3.6 -3.9 -4.8 -5.8 -5.5 -5.9 -6.3 -35.9 Projected NDP 10 growth (%) -26.4% 6.7% 2.9% 3.4% 10.3% 6.9% 6.9% Note: (a) totals may not add because of rounding Source: MFDP projections

6.32 The ratio of non-mineral government sector GDP throughout NDP 10 is in fact revenue to GDP in the non-mining private attained, it will be positive for many Vision sector (GDP exclusive of mining and targets, most importantly the reduction of general government) averaged 40.6 percent poverty. in NDP 9, but the average was affected by an exceptionally high figure in the final year Total Revenue (2008/09). This was driven mainly by increased Southern African Customs Union 6.34 Total government revenue is (SACU) revenue, and other temporary projected by taking the sum of the forecasts factors, which are not likely to be sustained of mineral and non-mineral revenue, derived (see Chapter 4). The projections for NDP 10 as above. The resulting totals, and the are that the ratio will average 36.6 percent. changes from the pre-recession projections, Reversion to the earlier ratio would improve are shown in Table 6.5. revenue prospects.

6.35 Total government revenue, in

6.33 Overall, the global recession has constant price terms, is projected to be P46.9 reduced GDP forecasts for NDP 10. Mining billion lower than previously projected for GDP is directly affected, and government NDP 10. This requires expenditure to be expenditure will have to adjust to lower lower than previously expected, even though mineral revenue. This will adversely affect the policy of balancing the budget over the the prospect for reaching the Vision 2016 seven years of the Plan has had to be goal of a tripling of GDP per head from suspended or reconsidered. The resulting 1996 to 2016 (see Table 4.5). However, budget deficits will be financed by a growth of non-mining GDP is the main combination of borrowing and use of the source of employment and income growth. Government’s financial surpluses If the base case growth for an average of 5.6 accumulated in past years. percent per annum for non-mining private 79 Table 6.5: Changes in projections of total revenue and grants, base case (constant September 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total Pre-recession 31.2 32.3 33.2 37.5 40.8 42.1 43.6 260.7 NDP 10 projection 22.7 24.1 26.7 29.9 35.4 37.8 37.2 213.7 Change from pre-recession -8.5 -8.2 -6.5 -7.6 -5.4 -4.3 -6.4 -46.9 Projected NDP 10 Growth -29.3% 6.2% 10.8% 12.0% 18.4% 6.8% -1.6% Note: (a) totals may not add because of rounding Source: MFDP projections Projections of the Upper Limits for percent in each of the remaining years of the Government Expenditure (Base Case) Plan. This would allow recurrent expenditure, after a significant increase (8.1

6.36 The duration of the global recession percent) in the 2009/10 budget, to increase is not known, so that it is prudent to react marginally thereafter by an annual average with a combination of adjustment and of 1.1 percent in real terms. financing. The rate of increase of government expenditure previously 6.39 Despite these cuts, development projected for NDP 10 has been reduced, and expenditure is projected to be only P4.3 it will have to be reduced further if the billion lower than the pre-recession recession lasts longer than assumed in the projection, as the cuts are from an projections. Even with the projected exceptionally high level of development reductions in expenditure, the cumulative expenditure at the end of NDP 9. Similarly, budget deficit is projected to be substantial. recurrent expenditure is projected to be only P9.4 billion below the pre-recession

6.37 Attaining a balanced budget for NDP projections. The biggest change is in the 10 would require excessive cuts in projected deficit, from the pre-recession government expenditure. Instead, the projection of a small cumulative surplus projections show a cumulative deficit of over NDP 10 of P1.4 billion, to a large P37.0 billion in the first four years of the cumulative deficit of P31.9 billion. Plan, followed by relatively small surpluses in the last three years. Overall, the projected 6.40 These projections indicate that the deficit for the whole of NDP 10 is P31.9 share of development expenditure (including billion. Government balances at the Bank of net lending) in total government expenditure Botswana were P22.5 billion in July 2009 so would fall consistently from 32.0 percent in that borrowing will be necessary to finance the last year of NDP 9, to 27.9 percent at the part of the projected deficit. beginning of NDP 10 to 21.5 percent in the final year of the Plan. Recurrent and Development Expenditure

6.38 The base case projections are for development expenditure, following a large decrease (12.5 percent) budgeted for 2009/10, to be cut back by a further 4.6 80 Table 6.6: Changes in projections of recurrent expenditure post-recession (constant September 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Pre-recession 23.2 24.6 26.2 27.7 29.4 31.1 32.8 195.0 NDP 10 projection 25.8 25.9 26.0 26.4 26.8 27.2 27.5 185.6 Change from pre- recession 2.6 1.3 -0.2 -1.3 -2.6 -3.9 -5.3 -9.4 Projected NDP 10 growth (%) 8.1 0.4 0.3 1.6 1.5 1.4 1.3 Notes: (a) totals may not add because of rounding (b) budget estimate for 2009/10, and projection for 2010/11, are higher than the pre-recession projections because the budget proposed a 16.4 percent increase over the revised estimate for 2008. Source: MFDP projections Table 6.7: Changes in projections of development expenditure (including net lending) post- recession (including net lending, constant September 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Pre-recession 8.6 8.8 9.0 9.2 9.4 9.5 9.7 64.3 NDP 10 projection 9.8 9.4 8.9 8.5 8.1 7.8 7.4 60.0 Change from pre- recession 1.2 0.6 -0.1 -0.7 -1.3 -1.7 -2.3 -4.3 Projected NDP 10 growth (%) -12.5 -4.6 -4.6 -4.6 -4.6 -4.6 -4.6 Notes: (a) totals may not add because of rounding (b) projections for the first two years are higher than the pre-recession projections because development expenditure increased by 75.4 percent in 2008/09, which was not known when earlier projections were made. Source: MFDP projections

6.41 It should be emphasised that the development expenditure during 2007/08 numbers projected here for government and 2008/09 will require additional future expenditure are upper limits. Expenditure recurrent expenditure. proposals were only included in NDP 10 if they could be justified economically, if they 6.43 Second, it has been reported that were in line with government policies for there is a backlog of maintenance in several each sector, and if the physical capacity for sectors, which should be corrected in NDP implementation was estimated to be 10. For example, road conditions surveys in available. Botswana has had a policy of not 2005 found that 30 percent of the low and spending money simply because it is medium volume road network, and 22 available or can be borrowed, but percent of the high-volume network, were in accumulating financial surpluses or reducing poor or very poor condition. It is reported budget deficits until they can be spent that this backlog has not been significantly productively. reduced (see para 10.16).

6.42 Recurrent expenditure is projected to 6.44 Third, the long period of catching up increase (marginally), while development on the almost total neglect of economic expenditure decreases, for three main infrastructure before Independence can be reasons. First, the tripling of real argued to be reaching its end. The 81 implication is that there should be a shift of Total Government Expenditure emphasis from expenditure on new infrastructure, to maintenance and 6.45 Total government expenditure is replacement of existing infrastructure. projected to be P13.7 billion less than was Meanwhile, development expenditure needs projected pre-recession. The growth of total to be cut back to avoid an even larger deficit government expenditure is projected to be than projected, and to correct for the upsurge roughly zero, with steady decreases in in the last two years of NDP 9. development expenditure allowing modest growth in recurrent expenditure. Table 6.8: Changes in projections of total expenditure post-recession (P billion, constant September 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Pre-recession 31.8 33.4 35.2 36.9 38.8 40.6 42.5 259.3 NDP 10 projection 35.6 35.3 34.9 34.9 34.9 34.9 34.9 245.6 Change from pre-recession 3.8 1.9 -0.3 -2.0 -3.9 -5.6 -7.6 -13.7 Projected NDP 10 growth 1.5% -1.0% -1.0% 0.0% 0.0% 0.0% 0.0% Notes: (a) totals may not add because of rounding (NDP 10 projections 2011/12 to 2015/16 are P34.94 billion to two decimal places) Source: MFDP projections

6.46 The projections in Table 6.8 would Budget Surplus/Deficit result in government expenditure as a percentage of GDP decreasing from 40.3 6.47 Using these projections, budget percent in the final year of NDP 9, to 29.5 deficits in the first four years of the Plan percent by the end of NDP 10. This would only be slightly offset by surpluses in compares with the ceiling of 40 percent the final three years. The cumulative deficit proposed in the Mid Term Review of NDP in the seven years of NDP 10 is projected to 9. If achieved, the lower ratio will be a be P31.9 billion, compared with the pre- sound preparation for the expected large and recession projection of a cumulative surplus permanent fall in diamond revenue in NDP of P1.4 billion. 11. Table 6.9: Changes in projections of budget outturn post-recession (constant September 2008 prices) 2009 2010 2011 2012 2013 2014 2015 Total (a) /10 /11 /12 /13 /14 /15 /16 Pre-recession -0.6 -1.1 -2.0 0.6 2.0 1.5 1.1 1.4 Projected NDP 10 -12.9 -11.2 -8.2 -5.0 0.5 2.8 2.3 -31.9 Change from pre-recession -12.3 -10.1 -6.2 -5.6 -1.5 1.3 1.2 -33.3 Cumulative deficit -12.3 -22.4 -28.6 -34.2 -35.7 -34.4 -33.3 Notes: (a) totals may not add because of rounding Source: MFDP projections

6.48 The deficits will have to be financed, Botswana, and by borrowing. From a high by a combination of running down the of P34.6 billion in October 2008, the Government's balances at the Bank in balances had already fallen to P28.8 billion 82 by the end of NDP 9. They continued to fall Changes in Establishment and Vacancies by about P2 billion a month thereafter. The in NDP 9 cumulative budget deficit is projected to reach P37.0 billion in 2012/13, more than 6.50 For NDP 10, no net further increase the government balances in March 2009. of established posts will be allowed, because Some borrowing will be necessary, on a of the planned cutbacks in the rate of growth significantly greater scale than for many of government spending in real terms, to a years before. This will be guided by a debt rate very close to zero (see Table 6.8). management strategy currently being Productivity increases should enable developed to avoid Botswana getting into a Ministries to manage with a lower rate of debt trap. increase of established posts than of spending in constant price terms, so that the

6.49 It would be possible to increase establishment should be reduced during government expenditure faster only by NDP 10. increasing the cumulative deficit, and therefore the amount of borrowing. 6.51 The number of established posts in Additional borrowing would increase future Government in the first five years of NDP 9 debt service obligations. At some stage, it increased at a trend rate of growth of 4.4 would also make it increasingly difficult to percent. This was substantially above the borrow, and would increase the cost of planned rate of growth of 1.9 percent. The borrowing. If, as seems almost certain, the trend growth rate of vacancies was exactly Government’s financial reserves are run the same, at 4.4 percent, so that there was no down or exhausted, it will be essential to perceptible trend in the vacancy rate. The retain some unused borrowing capacity to vacancy rate fell, from a peak in 2005, in the finance future economic shocks. three years to March 2008, but at that time it Government Employment Ceilings was still higher than it had been at the beginning of NDP 9(see Table 6.10). Table 6.10: Government establishment and vacancies during NDP 9 Establishment (a) Vacancies Vacancy rate April 03 51027 2984 5.8% March 04 50987 3341 6.6% March 05 53865 4971 9.2% March 06 56258 3917 7.0% March 07 58507 3772 6.4% March 08 62808 3926 6.3% Trend growth 4.4% 4.4% 6.9% (b) Notes: (a) numbers exclude teachers (b)Average Source : Directorate of Public Service Management 83 Growth of Establishment in NDP 10 6.53 Actual allocations of established posts, as with actual allocations of recurrent

6.52 The projections for NDP 10 require a and development budgets, are determined by substantial change from the growth in the quality and relevance of the projects establishment experienced during NDP 9. It approved, the demands that these projects would be consistent with the long-term make on manpower, and indications of the strategy of preparing for a lower rate of overall availability of manpower (especially growth of government spending after the the scarcer categories of skilled manpower). end of NDP 10 because of the expected decline in mineral revenue. In the short term, Growth in Established Posts, by Category it is necessary because of the global of Employment economic downturn. A decrease in the establishment would be positive for private 6.54 The growth in the public service sector growth, especially as government establishment during NDP 9, by category of employment is more skill-intensive than job, is shown in Table 6.11. The biggest private sector employment. absolute increase was in “Other”, mainly because it is the largest group. Table 6.11: Growth in the Public Service Establishment NDP 9, by category of employment Manpower 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Increase (%) type actual actual actual actual actual estimate A (1) 10,405 10,899 12,320 12,941 13,884 16,647 6,242 B (2) 8,870 8,399 8,632 8,739 8,871 9,124 254 C (3) 27,651 27,651 30,915 31,068 30,327 30,691 3,040 Other (4) 33,874 33,956 37,091 37,908 40,697 42,649 8,775 TOTAL 80,800 80,905 88,958 90,656 93,779 99,111 18,311 Notes: (1) posts graded C4 and above. (2) posts graded lower than C4 plus Secretarial and Artisan posts, excluding those in grade C. (3) all Industrial Class posts. (4) uniformed Public Officers, e.g. Nurses, Police Officers, Wildlife Officers and Prisons. Source : Directorate of Public Service Management

6.55 By far the largest percentage largest rate of increase in Type A is increase was in Type A manpower, the estimated to have taken place in the final senior category of civil servants. This is year of NDP 9. This reinforced the demand shown in Table 6.12, below. The trend rate for relatively scarce skills made by the of increase per year in Type A was 9.3 public sector, which could have worsened percent. This was more than twice the rate of the skill shortage in the private sector. increase of the total establishment. The 84 Table 6.12: Annual changes in the Public Service Establishment in NDP 9 (percentages) Manpower 2003/04 actual 2004/05 actual 2005/06 actual 2006/07actual 2007/08 actual Trend Increase type A (1) 4.7 13.0 5.0 7.3 19.9 9.3% B (2) -5.3 2.8 1.2 1.5 2.9 0.9% C (3) 0.0 11.8 0.5 -2.4 1.2 2.3% Other (4) 0.2 9.2 2.2 7.4 4.8 5.0% TOTAL 0.1 10.0 1.9 -11.9 24.1 4.3% Notes: as for Table A Source: Directorate of Public Service Management

6.56 It is essential that the actual rate of positive changes were made to the increase in the civil service establishment in assumptions underlying the base case NDP 10 is not higher than the projected rate, projections. as it was in NDP 9. Because of the difficulty in downsizing government employment, 6.58 First, it was assumed that the allowing a rapid increase in the total during diamond market will recover more quickly NDP 10 would make adjustment to the than in the base case, giving additional projected long-term reduction in mineral mineral revenue to the Government for three revenue, and therefore in the rate of growth years, starting in the second year of NDP 10 of government expenditure, very much more (2010/11). Thereafter, mineral revenue difficult. Manpower ceilings will, therefore, would be the same as in the base case be enforced more strictly in NDP 10 than scenario. This would provide an additional they were in NDP 9. The approval of P8.2 billion of government revenue. The additional spending will not necessarily improvement is relatively limited, because it result in the approval of additional is assumed that the loss of revenue, manpower. Ministries will be required to cut projected for the first year of the Plan, back on existing employment, in order to 2009/10, is inevitable (all the figures for make space for the manpower requirements 2009/10 are from the budget estimates). of new projects or new types of expenditure. Optimistic Scenario

6.57 The revenue projections were recalculated for an optimistic scenario. Two Table 6.13: Mineral revenue: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case 6.4 6.7 8.8 11.4 15.0 16.0 14.0 78.3 Optimistic case 6.4 8.8 11.4 15.0 15.0 16.0 14.0 86.6 Difference 0.0 2.1 2.6 3.6 0.0 0.0 0.0 8.3 Notes: (a) totals may not add because of rounding Source: MFDP projections 85

6.59 Second, it was assumed that the ratio final year of NDP 10. This would increase of non-mineral revenue to non-mining GDP government revenue by a further P9.6 will recover gradually during the Plan billion, giving an increase in total revenue in period, starting in the third year, reaching the optimistic case of P17.9 billion. the NDP 9 average value of 40 percent in the Table 6.14: Non-mineral revenue (including grants): optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 16.3 17.4 17.9 18.5 20.4 21.8 23.3 135.5 Optimistic case 16.3 17.4 18.4 20.1 22.1 24.2 26.6 145.1 Difference 0.0 0.0 0.5 1.6 1.7 2.4 3.3 9.6 Notes: (a) totals may not add because of rounding Source: MFDP projections Table 6.15: Total revenue: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case 22.7 24.1 26.7 29.9 35.4 37.8 37.3 213.7 Optimistic case 22.7 26.2 29.8 35.1 37.1 40.2 40.6 231.7 Difference 0.0 2.1 3.1 5.2 1.7 2.4 3.3 17.9 Notes: (a) totals may not add because of rounding Source: MFDP projections

6.60 The question would then arise, if the would be modest increases in recurrent and optimistic revenue scenario were to be development expenditure (P3.9 billion and realised, whether to use the additional P1.8 billion respectively, Table 6.16 and revenue to reduce the cumulative budget 6.17), with most of the increases in revenue deficit over the period of the Plan, or applied to reducing the cumulative budget whether to allow additional expenditure. deficit, by P12.2 billion. The cumulative deficit would then be P19.7 billion,

6.61 In the expenditure projections for the compared with P31.9 billion in the base optimistic scenario presented below, there case. Table 6.16: Recurrent expenditure projections: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case 25.8 25.9 26.0 26.4 26.8 27.2 27.5 185.6 Optimistic case 25.8 26.2 26.5 27.0 27.5 28.0 28.5 189.5 Difference 0.0 0.3 0.5 0.6 0.7 0.8 1.0 3.9 Notes: (a) totals may not add because of rounding Source: MFDP projections 86 Table 6.17: Development expenditure projections: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case 9.8 9.4 8.9 8.5 8.1 7.8 7.4 60.0 Optimistic case 9.8 9.5 9.1 8.8 8.5 8.2 7.9 61.8 Difference 0.0 0.1 0.2 0.3 0.4 0.4 0.5 1.8 Notes: (a) totals may not add because of rounding Source: MFDP projections Table 6.18: Total expenditure projections: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case 35.6 35.3 34.9 34.9 34.9 35.0 34.9 245.6 Optimistic case 35.6 35.7 35.6 35.8 36.0 36.2 36.4 251.3 Difference 0.0 0.4 0.7 0.9 1.1 1.2 1.5 5.7 Notes: (a) totals may not add because of rounding Source: MFDP projections Table 6.19: Budget deficit projections: optimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case -12.9 -11.2 -8.2 -5.0 0.5 2.8 2.4 -31.9 Optimistic case -12.9 -9.5 -5.8 -0.7 1.1 4.0 4.2 -19.7 Difference 0.0 1.7 2.4 4.3 0.6 1.2 1.8 12.2 Notes: (a) totals may not add because of rounding Source: MFDP projections

6.62 The reason for applying most of any increase in revenue to reducing the deficit is 6.64 In general, improvements in that the Government needs to preserve government revenue over the base case financial resources and borrowing capacity projections during NDP 10 should not allow to cope with the expected steep decline in significant additional government diamond revenue in 2022, and the expenditure, because of the strategic subsequent decline to almost zero by 2029. necessity to conserve financial resources: Government balances and the capacity to

6.63 In the base case, the cumulative borrow. Preserving financial savings and deficit is projected to be more than the borrowing capacity would make it possible current level of Government’s balances at to cope better with negative economic the Bank of Botswana. In the optimistic shocks, and with the transition from an case, it would be possible to retain about a economy dominated by diamond mining to third of the Government's accumulated one based on a different and diversified set financial surpluses, or more to the extent of resources. Without prudent financial that deficits are financed by borrowing. management of the budget, it may not be 87 possible to avoid damaging cuts in public 6.67 First, it was assumed that recovery in sector services. the diamond market would be delayed by one year. Mineral revenue was projected,

6.65 Although the projections presented therefore, to be the same in 2011/12 as in here are extremely speculative, because of 2010/11, and the base case projections for the unusually high degree of uncertainty mineral revenue for the remaining years created by the financial crisis, the broad were shifted forward by one year. message would be the same for any increase in government revenue over the base case: 6.68 Second, a similar scenario was any improvement in revenue receipts should projected for non-mineral revenue. Non- mostly be applied to reducing budget mineral revenue was projected to be the deficits. same in 2011/12 as in 2010/11, with the base case projections shifted forward by one Pessimistic Scenario year.

6.66 The projections were recalculated for 6.69 Using these assumptions, mineral a pessimistic scenario. Two negative revenue would be P7.4 billion less than in changes were made to the assumptions the base case. Non-mineral revenue would underlying the base case projections of be P6.6 billion lower than in the base case, government revenue. giving a total shortfall in government revenue of P14.0 billion. Table 6.20: Mineral revenue: pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 6.4 6.7 8.8 11.4 15.0 16.0 14.0 78.3 Pessimistic case 6.4 6.5 6.7 8.8 11.4 15.0 16.0 70.9 Difference 0.0 -0.2 -2.1 -2.6 -3.6 -1.0 2.0 -7.4 Notes: (a) totals may not add because of rounding Source: MFDP projections Table 6.21: Non-mineral revenue: Pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 16.3 17.4 17.9 18.5 20.4 21.8 23.3 135.5 Pessimistic case 16.3 16.6 17.4 17.9 18.5 20.4 21.8 128.9 Difference 0.0 -0.8 -0.5 -0.6 -1.9 -1.4 -1.5 -6.6 Notes: (a) totals may not add because of rounding Source: MFDP projections 88 Table 6.22: Total revenue: pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 22.7 24.1 26.7 29.9 35.4 37.8 37.3 213.7 Pessimistic case 22.7 23.1 24.1 26.7 29.9 35.4 37.8 199.8 Difference 0.0 -1.0 -2.6 -3.2 -5.5 -2.4 0.5 -14.0 Notes: (a) totals may not add because of rounding Source: MFDP projections

6.70 Given the large cumulative deficit 6.72 Development expenditure is then projected in the base case, and the expected projected to decline by 10 percent in each of decline of diamond revenues after the end of the last six years of the Plan. Following the NDP 10, it would be extremely imprudent to 8.1 percent increase in recurrent expenditure contemplate an even larger cumulative budgeted for 2009/10, this would allow budget deficit than in the base case. It recurrent expenditure to decrease by an follows that the expenditure projections for average of only 0.2 percent percent in real the pessimistic case are for reduced terms in the last six years of the Plan, expenditure, rather than for a larger following the 8.1 percent increase budgeted projected deficit. for 2009/10. The projected reduction in total expenditure, compared to the base case, is

6.71 The expenditure projections in the therefore P14.2 billion. This would deliver a pessimistic case are for total expenditure to cumulative budget deficit approximately the decrease by 2.5 percent in each of the last same as in the base case, as revenue is six years of the Plan. This would generate a projected to be P14.0 billion lower than in cumulative budget deficit of P31.7 billion, the base case. approximately the same cumulative deficit as in the base case. Table 6.23: Recurrent expenditure projections: pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 25.8 25.9 26.0 26.4 26.8 27.2 27.5 185.6 Pessimistic case 25.8 25.9 25.9 25.9 25.8 25.6 25.5 180.4 Difference 0.0 0.0 -0.1 -0.5 -1.0 -1.6 -2.0 -5.2 Notes: (a) totals may not add because of rounding Source: MFDP projections 89 Table 6.24:Development expenditure projections: pessimistic and base case compared (a) (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (b) Base case 9.8 9.4 8.9 8.5 8.1 7.8 7.4 60.0 Pessimistic case 9.8 8.8 7.9 7.1 6.4 5.8 5.2 51.0 Difference 0.0 -0.6 -1.0 -1.4 -1.7 -2.0 -2.2 -9.0 Note: (a)includes net lending Notes: (b) totals may not add because of rounding Source: MFDP projections Table 6.25: Total expenditure projections: pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total (a) Base case 35.6 35.3 34.9 34.9 34.9 34.9 34.9 245.6 Pessimistic case 35.6 34.7 33.8 33.0 32.2 31.4 30.7 231.4 Difference 0.0 -0.6 -1.1 -1.9 -2.7 -3.6 -4.2 -14.2 Notes: (a) totals may not add because of rounding, see note to Table 6.8 Source: MFDP projections Table 6.26: Budget deficit projections: pessimistic and base case compared (P billion, constant 2008 prices) 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Total(a) Base case -12.9 -11.2 -8.2 -5 0.5 2.8 2.3 -31.9 Pessimistic case -12.9 -11.6 -9.7 -6.3 -2.3 4 7.1 -31.7 Difference 0.0 -0.4 -1.5 -1.3 -2.8 1.2 4.8 0.2 Notes: (a) totals may not add because of rounding Source: MFDP projections

6.73 The pessimistic projections are revenue is less than in the base case, there extremely speculative in the circumstances should be no question of any increase in of a global recession of unknown depth and budget deficits. Expenditure will have to be duration, as indeed are all the projections. reduced. The basic principle is the same, though, for any worsening of the base case scenario. If 90 SECTION III: EDUCATED AND INFORMED NATION 91 CHAPTER 7 EDUCATED AND INFORMED NATION KEY RESULT AREA: COMPETITIVE AND PRODUCTIVE HUMAN RESOURCES Key Result Area Description economy from government and mineral dependency to being a private sector and

7.1. In addressing the Vision 2016 innovation-led diversified economy. Vision aspiration of prosperity for all Batswana, an 2016 foresees Botswana as a nation in which Educated and Informed Nation is seen as an most of its citizens are engaged in important foundation and a basis for knowledge-based jobs, and are empowered enhancement of national productivity, to become competitive producers of goods innovation and competitiveness. An and services. ICT, knowledge and educated and informed nation readily adapts innovation are expected to take their place in to the changing needs of its economy. The the national economy not only as drivers for growth of the economy requires a focus on private sector competitiveness, but also for development of human resources and full export of products and services in which utilisation of their capacity in the nation data, information and knowledge are the building process. The private sectors, such main tradable components. as agriculture, tourism and services, are expected to become more active drivers of NDP 10 Goal economic growth. This has become imperative because of the anticipated decline 7.4. The NDP 10 goal, arising from the in mineral revenue, upon which government Vision 2016 pillar of An Educated and relies for development programmes, the Informed Nation, is to provide an adequate ambitious national vision and the desire for supply of qualified, productive and economic diversification. Competitiveness competitive human resources. will require the existence of a productive labour force, with an adequate supply of 7.5. The associated Millennium skills aligned to the needs of the private Development Goal (MDG) is to achieve sector. Universal Primary Education by 2015 (MDG 2).

7.2. Competitive and productive human resources for a country mean much more 7.6. Sectors contributing directly to this than the provision of education, training and goal are Education, Public Service, the supply of skilled manpower. It also Agriculture, Health, Youth, Labour and relates to the deployment of human Finance. During NDP 10, a Thematic resources across various sectors in the Working Group, which includes economy, to address unemployment, government, the private sector, non- poverty, and other social issues and to make government organisations, civil society and informed strategic decisions on labour development partners, will continue work on requirements, matching planned supply implementation of projects and programmes against the forecasted demand. in these areas. For a long time, the strategic

7.3. The role of Information and focus of Botswana’s manpower Communications Technology (ICT) will be development has been to support education, significant in the transformation of the health and government administration. As 92 the economy grew, other sectors sought the materials were developed and mainstreamed labour market supply to support their into the newly developed programme. economic growth strategies. In view of this, Development of the Out of School a National Human Resource Development Children’s programme and skills report was produced during NDP 9, which development also started during NDP 9. A will guide the development of a National needs assessment of the curriculum for Human Resource Strategy. The strategy will children with hearing impairment was provide a basis for achieving the NDP 10 completed and the Ministry developed a sign Goal of matching skills with the national language resource book and adapted the labour market requirements and promoting curriculum to suit these learners. individuals’ potential to advance and contribute to economic and social 7.10. Quality assurance procedures were development. developed and implemented during NDP 9 to coordinate the Botswana vocational NDP Goal Performance during NDP 9 training system. Consequently, registration and accreditation of vocational institutions,

7.7. There were a number of factors as well as their trainers and assessors, were during NDP 9 which enabled attainment of undertaken. The aim was to ensure that some key targets for that period. Among provision of vocational training followed a these were funding, with Government standard of quality prescribed by the spending close to 30 percent of the annual Vocational Training Act of 1998. The budget on education and training throughout Vocational Training Fund was also the NDP 9 period. These resources were established to enhance skills development by used to develop infrastructure, human providing grants for vocational skills resources and programmes necessary to development. increase education and training opportunities for Batswana. HIV and AIDS and its impact 7.11. The mismatch between opportunities on productivity and human resource in the labour market and the skills of development adversely affected performance graduates contributed significantly to youth of the sector. unemployment. Lack of opportunities for youth poses a serious challenge to the nation

7.8. Challenges identified were in the as it increases unemployment and production of graduates who had skills that dependence on government assistance were relevant to the country’s changing programmes. economic and social development and who were able to compete in global labour 7.12. Human resources development markets. Access to education, its quality and continued to be a top priority for the health relevance, competitiveness and sector. The new Human Resources for sustainability became a primary focus for Health (HRH) Plan for 2006-2016 was the Tertiary Education Council’s agenda to developed to determine the skills mix of the transform the tertiary education system to health work-force required to effectively and better serve the nation’s development needs. efficiently operate health facilities.

7.9. The National Literacy Programme 7.13. To cater for the human resources was evaluated and this resulted in the needs of the agricultural sector, pre-service development of the Adult Basic Education and in-service students were enrolled in Programme, with improvements in the certificate, higher diploma and degree quality and relevance of non-formal programmes. During NDP 9, a total of 938 education. HIV/AIDS and gender sensitivity pre-service trainees graduated from the 93 Botswana College of Agriculture and 800 productive and competitive human resources employees graduated from various that will meet the national labour market institutions under the Ministry’s in-service needs and allow for any surplus skilled training programme. labour to participate in the global labour markets. This goes beyond the normal

7.14. The Public Service’s growth in size education and training system in schools and and occupational mix during NDP 9 was not tertiary institutions, as attracting potential matched with skills development in the scarce skilled manpower, skills development relevant areas. Although Government spent and on the job training will be implemented more than a quarter of a billion pula every as part of the human resource development year on training of public officers, there programmes. Attracting Batswana to return were still severe skills shortages in many to work in Botswana (reverse migration) and areas. This was a challenge emanating from investment strategies that are linked to the the focus of the Education System, whereby localisation initiatives that expand graduates coming out of the training employment opportunities for Batswana will institutions, though qualified, lacked be pursued. competencies for the workplace.

7.17. Stakeholders’ involvement in the Goal Strategies for NDP 10 National Human Resource Development Strategy will be broadened through

7.15. The National Human Resource participation of a Thematic Working Group, Development Strategy will provide the basis building on the synergies of the private for matching skills with labour market sector, non-governmental organisations and demands as well as realising individual other stakeholders. Through a multi-sectoral potential to contribute to their personal approach, opportunities to build capacity growth and social development. will be created in the provision of education and training.

7.16. The strategy will enable Botswana to produce an adequate supply of qualified, SECTOR: EDUCATION INTRODUCTION SECTOR PERFORMANCE IN NDP 9

7.18. The mandate of the sector is to produce skilled human resources through 7.19. Strategies for the education sector provision of education and training during NDP 9 included reforms in the opportunities. Such human resources are education and training programmes which expected to be both globally competitive and were stipulated in the Revised National relevant to the economic and social Policy on Education. development needs of the country. There is great need to focus more on qualitative 7.20. A comprehensive unit cost study was improvements in the education and training undertaken and a draft funding model for system that are in line with the NDP 10 goal tertiary education and training completed in 2008. Once approved, the model will help determine unit cost of programmes at tertiary level and establish a more rational 94 and objective budget process for funding 7.22. The Education sector’s NDP 9 tertiary education and training programmes. achievements included introduction, The use of such a funding model will help implementation and monitoring of the Early Government to monitor and ensure Childhood Care and Education Policy efficiency and effectiveness in the use of guidelines in all Urban and District funds allocated to institutions for teaching, Councils. The Day-Care Grant programme learning and research. was extended to communities to encourage them to set up playgroups. Access and Equity

7.23. At the primary school level, the net

7.21. During NDP 9, the Education sector enrolment ratio was 89.6 percent against the focused on increasing access and equity, 100 percent recommended by the Revised improving the quality and relevance of National Policy on Education (RNPE) and education and providing competent human (Millennium Development Goals) MDGs. resources necessary for achieving the The transition rate from primary to junior nation’s economic diversification strategy. secondary school remained at 96.9 percent. The sector’s key objectives for NDP 9 The increase in the junior to senior included provision of universal 10 year basic secondary school transition rate, as shown in education; increasing access to senior Table 7.1, was as a result of the expansion of secondary education; expanding vocational some senior secondary schools and the and technical training; promoting lifelong introduction of the “double shift” learning; increasing access and equity at programme. However, the 70 percent target tertiary education level; and improving transition rate from junior to senior access to education services by children with secondary education was not achieved in the special needs. first five years of NDP 9. Table 7.1: Transition Rates from Junior to Senior Secondary School 2004 – 2008 Year 2004 2005 2006 2007 2008 Transition Rate 49.0% 50.6% 61.0% 63.1% 66.0% Source: Secondary Education Department, MoESD, 2008

7.24. The Botswana Technical Education basic education training programme Programme (BTEP) offered expanded designed for learners with limited or no diploma level programmes in key skills of formal qualifications. The programmes communication, personal and interpersonal offered by BTEP promote poverty skills, information technology, alleviation, life-long learning and economic entrepreneurship and problem solving. diversification. BTEP also developed “Fresh Start”, an adult 95 Chart 7. 1: Enrolment in Vocational Education and Training per Term 3,900 3,700 3,500 3,300 3,100 2,900 2,700 2,500 20 20 20 20 2008 08 87 07 07/3 /2 /1 /3 /2 20 20 20 2007 06 06 06 05/1 /3 /2 /1 /3 20 20 20 20 2005 05 04 04/2 /1 /3 /2 /1 20 20 20 2004 03 03 03/3 /2 /1 Source: Department of Vocational Education and Training, MoESD, 2009

7.25. The Botswana College of Distance average of over 4,500. This exceeded the and Open Learning (BOCODOL) has been projected NDP 9 annual average of 1,000. able to significantly increase the number of Table 7.2 shows the enrolment figures for courses, and enrolment went beyond the BOCODOL from 2002 to 2008. NDP 9 annual projections of 4,000 to an Table 7.2: BOCODOL Enrolment from 2002 – 2008 Cumulative Programme 2002 2003 2004 2005 2006 2007 2008 Total JC 1093 1178 951 1467 832 1954 952 8427 BGCSE 2665 2994 3687 3957 3583 4919 4169 25974 Certificate 0 0 524 954 1098 1304 693 4573 Diploma 0 0 0 0 0 538 674 1212 Total 3758 4172 5162 6378 5513 8715 6488 40186 Source: BOCODOL, 2009

7.26. The overall performance of the private tertiary institutions registered by the Education sector shows a major Tertiary Education Council. In 2007/08, a improvement in access, with student total of 8,811 students were given enrolment into Tertiary Education increasing sponsorship into these institutions, resulting from 20,011 (2003/04) to 47,889 (2008/09). in total number of students in tertiary Student enrolments increased dramatically institutions increasing by 9,946 between in 2007/8 due to a decision by the 2006/07 and 2007/08. Chart 7.2 below Government to sponsor students into local shows the number of students enrolled by 96 year during NDP 9, while Chart 7.3 shows the breakdown by institution for 2008/09. Chart 7.2: Tertiary Enrolment in Registered Institutions from 2003 to 20008 60,000 50,000 40,000 30,000 20,000 10,000 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Source: Tertiary Education Council, 2009 Chart 7.3: Tertiary Enrolment (%) in Registered Institutions 50 45.4 45 40 35 31.4 Enrolment Percentage 30 25 20 15 9.7 10 5.6 5 3.6 2.2 2.1 0 C oE IHS UB BO C O DO L BCA O PTI TEPP Legend: CoE = Colleges of Education; IHS = Institutes of Health Sciences; UB = University of Botswana; BOCODOL = Botswana College of Distance and Open Learning; BCA = Botswana College of Agriculture; OPTI = Other Public Tertiary Institutions; TEPP = Tertiary Education Private Providers. Source: Tertiary Education Council, 2009 97

7.27. In the last years of NDP 9, the equivalency programmes are now private tertiary education institutions comparable to those achieved by enrolled 28 percent of the students at tertiary conventional institutions because of the level locally. This was a major contribution. enhanced learning centre monitoring system It helped to build local tertiary education adopted at regional level and the capacity and reduced the cost of external interactivity of learning materials. The placement of students. Additional technical overall pass rate for JC improved from 68.8 colleges were built and measures were taken percent in 2001 to 89.3 percent in 2005, to re-organise the vocational training and before it dropped to 72.6 percent in 2006. In skills development system by the Botswana 2007, it increased slightly again to 74.2 Training Authority (BOTA). percent, before it dropped to 69.6 percent in 2008. The average A-C grade pass levels at

7.28. The demand for tertiary education BGCSE increased from 17.1 percent in 2001 places grew among school leavers and adult to 27.2 percent in 2006, before it dropped to learners, and was expected to increase 25.4 percent in 2007 and 20.8 percent in further as the output from secondary schools 2008. On Research and Development, no increased. The challenges coming from the significant progress was made because of high demand for tertiary education and the capacity constraints. BOCODOL, however, high cost of external placement of such put in place structures to introduce rigorous learners resulted in the expansion of the staff development initiatives to enhance internal tertiary education system’s capacity. research capacity. Quality and Relevance 7.32. The Tertiary Education Council (TEC) completed preparation of the

7.29. The quality of education remained a following policy documents: the Tertiary key issue for the education and training Education Policy, the National Human sector during NDP 9. The curriculum was Resource Development report, and the diversified during the Plan period, through Funding Strategy and Formula for Tertiary the introduction of subjects such as Business Education Institutions. These policy Studies, Design and Technology and Home instruments have laid the basis for reforming Economics and integration and infusion of the tertiary education sector, and will lead to emerging issues, such as Gender, ICT, the development of a coherent system that Environmental Education, allows for a single supervisory authority and Population/Family Life Education, better long term planning for enrolment and HIV/AIDS and Entrepreneurship. budgeting. The National Credit Qualification Framework, which was also developed, will

7.30. The quality of the teachers is critical address problems of quality, accreditation, to the quality of education. In this regard, articulation, co-ordination and management. Primary Teachers’ Certificate holders were upgraded to Diploma through institutional 7.33. Whilst the development of new training and distance education. programmes at tertiary level is an on-going process based on an analysis of socio-

7.31. During NDP 9, BOCODOL economic needs and consultation of relevant established strategic alliances and stakeholder groups, improvement of collaboration with appropriate organisations programme quality requires a strong nationally, regionally and internationally to academic quality management framework. enhance its capacity to deliver quality An academic quality policy was introduced programmes. Pass rates in the school and a process of external review of 98 programmes commenced, which gave included re-introduction of fees at secondary specific attention to issues such as academic and tertiary levels (colleges) and extending dishonesty, general education and e- sponsorship to local private tertiary learning. institutions which were registered with the Tertiary Education Council (TEC).

7.34. Progress was made during NDP 9 in refocusing the academic programmes 7.38. School fees, at 5 percent of the total towards Business, ICT, Science, costs of operating secondary schools and Engineering and Technology. New academic technical colleges, were re-introduced for programmes responsive to societal needs children whose parents could afford such were introduced. The University of fees. Those households earning less than Botswana improved its research profile, and P1,200 per month or who had fewer than 50 developed a number of research centres to cattle or 100 calves or 250 goats or sheep improve output. were exempted from paying school fees. In the 2007/08 financial year, the Ministry

7.35. The Botswana International collected P46 million through this process. University of Science and Technology Government policy is not to exclude (BIUST) was established in Palapye during children who have not paid school fees. NDP 9 to meet the increasing demand for science and technology specialists in HIV/ AIDS Botswana’s rapidly growing economy. The University’s concept and strategy, detailed 7.39. HIV/AIDS Life Skills Education has planning for the academic programme, been mainstreamed at all levels of the organisational development and human education system from training of teachers resource systems have been initiated. A and teaching of students to management of Transaction Advisor has been engaged to workplaces. Programmes have been facilitate the delivery of the capital developed to address HIV/AIDS prevention development project of BIUST through a through behaviour change, and also for Public-Private Partnership (PPP). caring and supporting the infected and affected. To improve teacher capacity on

7.36. A Medical School was established HIV/AIDS Education, a live television during NDP 9 to address the acute shortage programme called “Talk Back” is aired of medical personnel in the country. The weekly on Botswana Television. About 83 programme for training medical doctors percent of primary schools and 100 percent began with the placement of students in a of secondary schools, technical colleges, number of partner institutions in South teacher training colleges, and education Africa, Australia, Norway, Ireland, etc. The centres access the programme. last phase of the project, which involves setting up of a medical education 7.40. Another programme, Circles of programme at UB and the development of a Support for Orphans and Vulnerable Teaching Hospital, started in the latter part Children, was piloted in ten primary schools, of NDP 9. five secondary schools and one private technical college in the Southern education Cost Sharing and Cost Recovery region. The programme was aimed at mobilising parents, teachers and

7.37. In order to ensure sustainability of communities to work together to support education provision, the Ministry orphans and vulnerable children to re-enter implemented cost sharing and cost saving and remain within the school system. The measures during NDP 9. These measures programme has ensured that ‘missing’ 99 children enter the school system while those implementation capacity, only four facilities that had dropped out are returned to the were built during NDP 9. school system, thus helping to make universal basic education accessible to all 7.44. Efforts to maintain universal access children. to 10 years of basic education have been successful to some extent. However, Junior Challenges Secondary school facilities did not keep pace with the growing student population.

7.41. There were a number of challenges As a result, the 96.9 percent transition from during the implementation of NDP 9. primary to junior secondary school was Developments in education and training achieved by increasing the average class size were not matched by improvements in from the recommended 40 to 50 students. In quality. Expansion of the education and 2006, the Ministry of Education introduced training system increased the demand for the double shift system, which increased the appropriately qualified and competent transition rate from junior to senior human resources. The sector still faces a secondary school. This obviated the drop challenge in provision of access and equity that would have otherwise resulted from of education and training for disadvantaged delays in the construction of four planned children (children with special needs, senior secondary schools. children in remote areas and children with other social needs). High demand for 7.45. With regard to vocational skills education, particularly at senior secondary development, the challenge identified was a and tertiary levels, put pressure on existing lack of curriculum alignment of franchise facilities. Other challenges included programmes offered by some institutions, HIV/AIDS, oversupply of teachers in some over which they had little control. Lack of subject areas and undersupply in others, teaching qualifications for vocational construction of new schools and other trainers and assessors was also found to be a facilities for officers in the regions. weakness.

7.42. Facilities for children with special STRATEGIES FOR NDP 10 needs were not evenly distributed across the country. The Government has a challenge in 7.46. The strategies for NDP 10 will also developing and implementing education and include initiatives to reverse the migration of training programmes which would ease Batswana abroad and foster investment that access for students with disabilities into the has elements linked to the localisation Botswana Technical Education Programme. programme (e.g., training of Batswana).

7.43. Children in unrecognised settlements Life Skills and Preparation of Graduates still have to travel long distances to the for Work nearest facilities. Lack of coordination in settlement patterns defeats the Ministry’s 7.47. A multi-sectoral approach will be efforts to improve access to education. used in increasing opportunities for Recommendation 15 (amended) of the education and training. The stakeholders Revised National Policy on Education calls will include; the Ministries of Trade and for “the establishment of one or two teacher Industry, Foreign Affairs and International schools where they are needed”. A total of Cooperation, Education and Skills 50 settlements were identified as qualifying Development, Local Government, Health, for two-teacher schools; but due to lack of Youth, Sport and Culture, Labour and Home Affairs, Agriculture, Communications, 100 Science and Technology, Finance and sector. The various institutions that support Development Planning and the Directorate government capacity building and of Public Service Management, as well as performance improvement in government the private sector, development partners and will be leveraged to address the competency non-governmental organisations. requirements for the NDP 10 goals.

7.48. The education and training system Goal 1: To Provide Accessible, Equitable, will, through implementation of the Tertiary Quality Education Education Policy, produce relevant competencies and skills of international 7.51. This goal focuses on Batswana standard, as well as individuals who are having full access to a high quality adequately prepared for the workplace and education system at primary, secondary and can utilise opportunities, create employment, tertiary levels. The aim in NDP 10 is to undertake research and diversify the continue to improve access to high quality economy. Every effort will be made to education. This should produce competent, address the mismatch and shortages that innovative and internationally competitive currently exist in certain professions. The national human resources. In turn, they ICT skills base will be improved to enable should contribute to the socio-economic and Botswana to increase service exports. technological advance of the country, through creation of employment, reduction

7.49. The youth will be provided with life of inequity and reduction of poverty. skills. Graduate employment and internship programmes will be instituted to provide 7.52. Net enrolments at primary level (6- exposure to the work environment, inculcate 12 years) will be increased from 89.6 good work ethics and provide opportunities percent to 100 percent. The sector will for career development. In recognition of the continue to improve access and equity at need to align skills with opportunities in the junior and senior secondary levels. This economy, youth will be supported to should address imbalances in accessing develop competencies and match their education, especially for disadvantaged talents with opportunities, especially in ICT. children in rural areas. Targets for the transition rate from junior to senior Optimisation of Human Capital and secondary education will be 100 percent by Matching Skills with the Needs of the the end of NDP 10. Teacher education will Labour Market focus on skills development through a broadened teacher education programme

7.50. Competencies will be further which is aligned to the needs of the developed and enhanced and service values economy. Table 7.5 shows the targets for will be promoted. Customer practices and improving access and quality of education norms that are aligned to stakeholder over the NDP 10 period. expectations will be fostered in the public 101 Sector Performance Matrix Matrix 7.1: Goal 1: To Provide Accessible, Equitable, Quality Education Sector Goal Key Performance Indicator NDP 10 Period Targets Year Baseline Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Net Enrolment Rate (Primary) Jun-05 89.6% 91.0% 92.0% 94.0% 95.0% 97.0% 98.0% 100.0% Transition Rate: Primary to Junior Secondary Jun-05 96.9% 99.4% 99.5% 99.6% 99.7% 99.9% 100.0% 100.0% Transition Rate: Junior to Senior Secondary & Voc. Education 2008 66.1% 67.1% 76.1% 80.4% 89.3% 89.8% 95.2% 100.0% Participation Rate (Tertiary, 18 to 24 yrs) Aug-07 11.4% 17.0% Drop-out Rate (Primary) Jun-05 1.4% 1.0% 0.8% 0.7% 0.5% 0.4% 0.2% 0.0% Drop-out Rate (Secondary) Jun-05 2.2% 0.0% Achievement Level (Primary) Aug-07 72.9% 76.0% 79.0% 82.0% 85.0% 88.0% 92.0% 95.0% Achievement Level (Junior Secondary) 2007 75.1% 86.1% 87.1% 88.1% 89.1% 90.1% 91.1% 92.1% Achievement Level (Senior Secondary) 2007 40.7% 51.0% 52.0% 53.0% 54.0% 55.0% 56.0% 57.0% Participation in Distance & Open Learning: Voc. & Tertiary Aug-07 2371 2655 2974 3331 3730 4178 4679 5211 Source: Departments of Primary Education; Secondary Education; Technical and Vocational Education; BOCODOL and TEC

7.53. The examinations and assessment Goal 2: To Provide Globally Competitive strategy for NDP 10 recognises the Human Resources to Drive Economic importance of assessment as an integral part Growth of the teaching and learning process. 7.55. Botswana faces human resource Assessment plays a critical role in any challenges in fulfilling the aspirations of strategy that is aimed at improving the Vision 2016, and reaching NDP 10 targets. quality of education. Therefore, there will be This goal addresses, therefore, the adequacy an increase in the use of assessment to of human resources and their deployment improve achievement and raise performance towards these ends. standards.

7.56. Indicators for tracking performance

7.54. During NDP 10, international in addressing the skills and competitiveness indicators that will be used to measure the of Botswana’s human resources during NDP performance of the goal on an adequate 10 will include: the Unemployment Rate, supply of qualified, productive and Labour Productivity Index, the competitive human resources include: the Competitiveness Index, Human Resource Global Competitiveness Index, the Human Development (HRD) Expenditure as a Development Index, the Knowledge percentage of GDP, the proportion of Economy Index and the Employability Index graduates absorbed into employment in the or Ratio. labour market, the percentage of labour 102 requirements met and the percentage of the approach to national human resource government budget utilised for HRD. development. This should link social, cultural, political and economic strategies in a holistic and integrated manner around Strategies for the NDP 10 Goal human capabilities and opportunities for the nation. Human Resource Planning (HRP) is

7.57. The National Human Resources expected to provide information on the Development Strategy (NHRDS) lays the projected demand and supply of skills for basis for improving the processes for human the economy, which can assist in planning resource development. A key output for education, training and career options. This NDP 10 will be the development and will ultimately facilitate employment and implementation of a human resource improve living standards. HRP will also development plan based on the requirements serve as a monitoring, evaluation and of the economy. The strategy seeks to match capacity development tool. Employers and skills with the needs of the labour market, employees will have access to timely and substitute import of foreign skills and accurate information about the labour reverse the migration of Batswana labour in market, while training institutions will have order to improve global competitiveness and better appreciation of the demand for skills. enhance economic growth and diversification. The key features of the 7.59. In addition, the HRP benchmarks NHRDS will be as follows: international best practice for institutions, • The relevance and quality of education particularly with regard to issues such as and training; industry-education links and mechanisms for • Focus on employability and skills; cost recovery. HRP will provide guidance to • Creation of employment opportunities students and young people about career and acquisition of knowledge, skills and prospects and programmes of study that are experience by citizens; most likely to result in productive • The development of “education and employment. Unions would find HRP innovation hubs”; information useful for bargaining purposes, such as average wage levels and • Enhancement of Research and productivity for specific occupations in Development capacity; different industrial sectors. Similarly, unions • Enhancement of utilisation of ICT; and, would also want to have information about • Increased access to early childhood and the number of work permits issued and the tertiary education levels. type of skills covered by these work permits. Community groups would also want to PROGRAMME SUMMARIES obtain information about skill requirements and opportunities, particularly for vulnerable National Human Resource Planning groups and those who find it difficult to access the labour market to improve their

7.58. This will provide the framework for life circumstances and become productive development of competitive and productive citizens. human resources. It is important to have an explicit, strategically focused and sustained 103 Sector Performance Matrix Matrix 7.2: Goal 2: To Provide Globally Competitive Human Resources to Drive Economic Growth Key Baseline NDP 10 Period Targets (%) Programme Performance Outcome-Output Indicator Year Value Yr 1 Yr 2 Yr3 Yr 4 Yr 5 Yr 6 Yr7 Outcome: Increased Labour national labour productivity productivity index 2006/07 5.5 5.5 5.5 6.0 6.5 7.0 7.5 8.0 Output 1: Balanced Unemployment labour market rate 2005/06 17.5 16.5 16.5 15.0 14.0 12.5 11.5 9.5 Source: Labour productivity index - annual growth rate. (Botswana Productivity Statistics Update 2007)

7.60. The Revised National Policy on the 1976 Education for Kagisano, whose Education, the new Tertiary Education emphasis was on quantitative expansion of Policy, the National Vocational Training the education system; and the 1993 National Policy, the National Credit and Qualification Commission on Education, which Framework, the Maitlamo ICT Policy, the emphasised both access and qualitative Revised National Policy on Incomes, issues of the education system. The review Employment, Prices and Profits, the Science of these policies indicated that the country and Technology Policy, together with other had made remarkable progress towards government policies, will form the policy stipulated objectives. However, the greatest framework for the implementation of the challenge facing Botswana’s education sector programmes and activities during system was improving the quality and NDP 10. relevance of education, since the society and the economy had evolved in new directions,

7.61. During NDP 10, the development of making fresh demands in terms of attitudes, human resources will be accelerated to meet skills and abilities. The Mid-term Review of the health service delivery challenges and NDP 9, as well as the Education Public enhance operational efficiency and Expenditure Review conducted in 2007, productivity. The national human resources proposed a shift in the sector from in the health sector will be enhanced by quantitative to qualitative improvements. promoting partnerships with the private Therefore, during NDP 10, a key subsector sector to optimise utilisation of the existing strategy will be to focus on quality and health infrastructure. The increased training relevance of education. programmes provided in health training institutions around the country, as well as Provision of Accessible and Equitable the phased establishment of a medical Education school, will significantly increase output of the needed health manpower. 7.63. The Education and Training Sector will, during the NDP 10 period, continue to EDUCATION SECTOR STRATEGIES address access and equity of education and training at all levels. The NDP 10 strategy

7.62. Since Independence, Botswana has will pay more attention to the disadvantaged undertaken two major educational reviews: and vulnerable children (i.e., children with 104 special needs, children in remote areas, and in Health, Teacher Education, Science and children with other social needs). In order to Technology and in Agriculture. In addition, reach children in remote areas (see new tertiary institutions, such as the paragraph 7.44), additional one or two Botswana International University of teacher schools will be established. Special Science and Technology and four technical needs issues will be addressed through colleges, will be built. The re-organisation setting up of the Centre for Disability, as and takeover of brigades by Government well as an assessment centre for children will create additional opportunities for with disabilities. training at tertiary level during NDP 10. The involvement of the private sector in the

7.64. Regarding universal access to 10 provision and financing of tertiary education years of basic education, the Education and training will help reduce the financial sector’s challenge in NDP 10 will be to burden on Government, as well as provide sustain the 100 percent transition from an element of choice for students in relation primary to junior secondary level without to programmes and institutions of study. compromising quality as a result of large class sizes. This will be achieved by 7.67. In this context, policies and expanding existing junior secondary schools strategies which were begun in NDP 9, and building new ones. The same will be which included encouraging the private done to increase access to post junior sector to build tertiary institutions and secondary school education. During NDP having government sponsor students to these 10, Government will conduct a review of the institutions, the use of Public-Private cost sharing policy in order to align it with Partnerships (PPP), as well as the international declarations, such as Education development strategy for other methods of For All (EFA) and the Millennium privatisation, will be accelerated. Development Goals (MDGs). Pre-primary education will be piloted in areas where Provision of Quality and Relevant there is evidence of high drop-out rates. Education

7.65. Issues of access and equity are 7.68. The establishment of the Education expected to continue to be a challenge in the Hub will make Botswana competitive by Technical and Vocational Education attracting leading tertiary institutions, Programme during NDP 10. These will be scholars, researchers and students into the addressed through the upgrading and country. expanding of existing facilities to accommodate children with special needs, 7.69. The Education and Training Sector use of e-learning and open and distance will pay more attention to quality and learning. relevance of education at all levels. There will be need to conduct curriculum reviews

7.66. The significant improvements in and strengthen inspectorate and quality access at tertiary level which were achieved assurance mechanisms. A deliberate shift to during NDP 9 will be sustained and the use of assessment to improve extended through, among others, the achievement and raise performance implementation of the new Tertiary standards will be made. This will involve Education Policy. This policy advocates broadening and establishing the base of direct involvement of private tertiary assessment, performance standards, learning providers, as well as rationalisation and outcomes and competencies at different expansion of tertiary education and training levels for each examination and assessment institutions relating to education and training programme. This will further entail 105 improving access and equity in examinations exploitation of new technologies and and assessments for all different groups of innovative ideas aimed at improving learners, achieving comparable standards in regional and global competitiveness. There examinations, accreditation of examinations will be a deliberate effort to enrol more and achieving standards-based assessments science based students at the general and qualifications at primary and secondary education level, so as to prepare them for levels. The sector will also accelerate the tertiary level programmes and have them implementation of the revised skills acquire skills and competencies in science programme for out of school children and and technology. youth.

7.73. In the Teacher Training Institutions,

7.70. Youth will be guided to grow into the main feature of the curriculum will be a responsible and self-reliant individuals, such diversified competency based teacher that they become a valuable and a positive training programme that will produce resource. Concerns over the incidence of teachers with desirable behavioural social ills amongst the youth have arisen attributes who are able to actively contribute over time. To address these concerns, to human resources development and research on issues affecting the youth will be economic development. This will be undertaken in order to inform decision possible through the development and making and youth empowerment efforts. implementation of a master plan for the training of teachers that forms the basis for

7.71. The Tertiary Education Policy, the Teacher Development and Management which was passed by Parliament during Programme. NDP 9 and the National Credit and Qualifications Framework (NCQF), to be Education Hub developed by the Ministry of Education and Skills Development, will further address 7.74. Associated initiatives will require problems of relevance, quality, skilled human resource development to take accreditation, articulation, co-ordination and off, but will also become the producers of management. System co-ordination, in such skills over time, thereby contributing to particular, will be enhanced by the merging employment creation and economic of the Botswana Training Authority and the diversification. Tertiary Education Council to create a coherent strategic focus in tertiary education EDUCATION SECTOR and skills development. There will be a PROGRAMMES FOR NDP 10 clearer and more objective approach to funding public sector tertiary institutions. 7.75. Four core programmes have been There will also be a rationalisation of identified to achieve the sector goals. These tertiary education institutions (e.g., merging are general education, tertiary education, of BOTA and TEC) to ensure programme teacher development and management and alignment and coherence. skills development programmes.

7.72. The development and diversification General Education Programme of programmes offered at colleges and tertiary institutions will emphasise 7.76. Since 1966, Botswana has made information and communication technology progress in increasing access, especially at (ICT) for sustainable economic primary and secondary education levels. diversification. Investment in research and However, the review of the National development will be stepped up to enhance Development Plan 9 has indicated that 106 access for disadvantaged children and adult learners continues to be a problem. Furthermore, there is need to focus on Teacher Development and Management qualitative improvements in line with Vision Programme 2016, Education For All and the MDGs.

7.79. Professional development and

7.77. The General Education Programme management of teachers to implement the involves provision of accessible, equitable curriculum has been identified as a critical and quality education for all levels below the area for improvement of quality in the tertiary education level, delivered through education and training sector. Expansion of both in-school and out-of-school modes. The the education system and the introduction of programme is aimed at providing a base for new subjects have increased demands on an educated and trained labour force by appropriately qualified teachers. There is a either preparing learners for participation at need to upgrade teachers’ skills, so that they the tertiary education level or providing can effectively deliver the curriculum and learners with vocational and technical skills improve their morale, as well as to reduce relevant for competitive participation in the teacher turnover. labour market. Botswana, being signatory to a number of conventions, which include the 7.80. The programme will focus on: Millennium Development Goals, the • Skills development through a broadened Jomtien Declaration, and the Dakar teacher education curriculum which is Framework for Action, which spells out aligned to the needs of the economy; Education For All (EFA) and recommends • Introduction of Degree Programmes at that education should be free and accessible colleges of education; by all, has made a commitment to provide • Establishment of Centres of Excellence basic education to every Motswana. The in specific areas; education and training sector will, through • Building teacher capacity in various this programme, address imbalances in areas such as giftedness (education of access to education, especially by children in children who are gifted/talented), rural areas, who have to walk long distances orientation and mobility, sign language to reach school. It will ensure that all interpretation, inclusive education, educational facilities are distributed in an severe multiple profound disabilities, equitable manner. early childhood education/pre-primary education (special needs education), and

7.78. The General Education programme vocational education and training; primarily targets learners of school-going • Establishment of an efficient age, but also includes adult learners and out- management information system to carry of-school children. Other beneficiaries are out the projections of human resource stakeholders, such as parents, the private growth, job analysis and other related sector, the public service, industry and the administrative functions; and labour market more generally, who will • Improvement of teacher motivation through training in change initiatives and other incentives. benefit from the human resource base that would be developed by this programme. Some of the learners will proceed with further education, while others should be engaged in meaningful employment. 107 Skills Development Programme the Botswana Training Authority (BOTA), the Madirelo Training and Testing Centre

7.81. Ensuring that graduates in the (MTTC) and the Construction Industry technical and vocational areas have the skills Training Fund (CITF). Implementation that are relevant to the country’s economic strategies will include collaboration with and social development and are able to partners and outsourcing. compete in global labour markets remains a challenge. The aim of the technical and Tertiary Education Programme vocational skills development programme is to meet immediate, medium and long term 7.84. The Mid-Term Review of NDP 9 skills requirements. It should provide an identified the challenges of training high adequate supply of skilled graduates, who quality graduates and the need to ensure they can also participate in global labour markets. have the skills that are relevant to the The outcome of these efforts will be country’s economic and social development, competent, innovative and internationally while being able to compete in global labour competitive individuals, who can contribute markets. The Mid-Term Review also to the socio-economic and technological recognised that the number of school leavers advancement of the country, including and adult learners looking for tertiary employment creation and poverty reduction. education places had been growing and would increase further as the output from

7.82. The beneficiaries of this programme secondary schools increased. are school leavers and employers. Access will be open for initial training, re-training 7.85. The Tertiary Education programme and skills upgrading for adults. The is also an anchor for personal growth and programme will also take cognisance of self-realisation for learners. Some graduates prior learning in awarding qualifications. of the programme are expected to create jobs for themselves and other job seekers. The

7.83. The Vocational and Technical Skills programme provides a strategic link and Development Programme has three opportunity for the public-private outcomes: improved vocational and partnership in the provision of training technical skills, employability and an facilities, determination of relevant skills adequate supply of skills. The following and their quality, as well as development of agencies are responsible for implementing industry relevant research initiatives. the programme activities and generating the desired outputs: the Department of Vocational Education and Training (DVET), SECTOR: PUBLIC SERVICE ADMINISTRATION

7.86. Management of the public sector and implementation of competitiveness plays a strategic role in shaping the growth strategies and aligning the public sector and success of the economy. This role brings human resources for increased value. with it challenges in relation to knowledge and emergent competency requirements. Therefore, the key issue confronting public sector management is the need for the design 108 REVIEW OF NDP 9 7.90. The focus of the Computerised Personnel Management System (CPMS) was Public Service Human Resource to add to its capacity to handle recruitment, Management leave application and other functions. The Infinium software, which housed the

7.87. During NDP 9, several policies and Computerised Personnel Management programmes were put in place to attract and System, became obsolete and its retain critical competencies in the public maintenance continued to prove very costly. sector. Competency-based assessment was Consequently, any further investments on introduced for senior management positions. the system were stopped, including the Competency frameworks for Ministries, planned enrichment under NDP 9. During Departments and those for leadership were the NDP 10 period, the plan will be to developed as a basis for selection, placement migrate from the Infinium platform to a and progression in the public sector. more robust and integrated platform to link Leadership development programmes were all Public Service Human Resource systems also put in place to build leadership with others, such as the Omang and Payroll capacity. The Botswana Institute of systems. Administration and Commerce (BIAC), embarked on a process of transformation 7.91. The Business Process Reengineering into the Botswana Public Service College initiative was introduced in 2006, to improve (BPSC) and began enhancing its capacity to service delivery by setting up and meet the complex demands of a reforming monitoring public service performance public sector. The Early Exit Policy was standards to create a waste-free public developed to facilitate right sizing of the service. By the last quarter of NDP 9, 187 public service. The objective of the Policy is processes had been re-engineered in eleven to compensate and manage the exit of Ministries and three departments. Seventy employees affected by the right sizing other processes had been audited in six exercise. Ministries.

7.88. Attraction and retention of scarce skills continued to be a major problem Public Service Human Resource during NDP 9 resulting in Retention and Establishment Remuneration Policy and Strategies being developed. Several incentives, including Size, Growth and Productivity allowances, were introduced and external recruitment agencies were contracted to 7.92. The total establishment of the Public facilitate recruitment of manpower with the Service, including teachers, was 99 842 for required skills. the financial year 2008/09. The figure represented a growth of 10 135 new posts

7.89. A Public Service Wellness Policy, created over the 6 year Plan period, at an aimed at promoting a supportive working annual growth rate of 2.5 percent against a environment, was developed. The Policy target of 1.9 percent which was a 0.6 percent acknowledges absenteeism and the growth above target. The high growth was individual employee’s state of wellness as mainly precipitated by challenges brought significant variables that influence about by the impact of HIV/AIDS, which performance. Therefore, the Policy provides created a need for manpower support for for Employee Assistance Programmes for Home Based Care, Prevention of Mother to individual/personal and group services. Child Therapy and the Roll Out of Anti- Retro-Viral (ARV) programmes; and the 109 establishment of new Ministries and 7.95. The Institute of Development functions during the course of the Plan, such Management (IDM) remained an important as the Ministry of Communications Science institution for regional cooperation and and Technology, the Government management capacity building. As part of Implementation Coordination Office, the the cooperation, the agreement between National Aids Coordinating Agency, the Botswana, Lesotho and Swaziland had been Ministry of Environment, Wildlife and that each of the host countries would provide Tourism and splitting of the Ministry of infrastructure facilities for the Institute. A Labour and Home Affairs to create the new IDM Campus was planned for Ministry of Youth, Sports and Culture. construction in Gaborone during NDP 9. Additional posts were established for other This project did not take off due to implementation of programmes, such as unavailability of land. IDM was allocated double shift in Senior Secondary Schools, 5.6 hectares of land against a required 11 and the completion of major health hectares. This caused the project infrastructure projects, such as the five components to be reviewed. hospitals at Molepolole, Ghanzi, Serowe, Lobatse and Mahalapye. 7.96. The Botswana National Productivity Centre (BNPC) had undertaken several

7.93. For NDP 9, the vacancy rate was set successful initiatives not only to raise levels at 2 percent. However, the actual rate has of productivity awareness among the general been growing steadily over the Plan period populace, but also to aggressively recruit from about 4.7 percent in April 2004 to as them into the National Productivity high as 8.9 percent in April 2008. The Movement. strategies put in place to facilitate the management of vacancies in the Public SECTOR GOAL: TO IMPROVE Service include multiple titled and graded PUBLIC SECTOR PERFORMANCE positions in the C band and scaling down on the experience requirement in the same C SECTOR STRATEGIES OVER NDP 10 band entry point.

7.97. Management of the public sector

7.94. The organisational review of plays a strategic role in shaping the growth Ministries for performance improvement and success of the economy. This means that continued during the Plan period. Nine out knowledge and competence are vital. of sixteen Ministries planned for Therefore, the key issue confronting public restructuring were reviewed, along with an sector management is the need for the design additional three which had not been included and implementation of strategies for better in NDP 9. The reviewed ministries and aligning public sector human resources to departments were the Office of the achieve greater value for money in the President, Department of Police, Ministry of provision of public goods and services. The Finance and Development Planning, strategies for improving public sector Ministry of Labour and Home Affairs, performance will focus on managing and Ministry of Education, Independent developing public service personnel to Electoral Commission, Ministry of Foreign deliver world-class service, adapt to new Affairs and International Cooperation, processes, technology and engage in Ministry of Local Government, Ministry of continuous learning and innovation, while Health, Attorney General’s Chambers, providing appropriate terms and conditions National Aids Coordinating Agency, and of employment. Ministry of Youth, Sports and Culture. 110 Competency-Based Human Resource manage complexity. The strategy will Management involve development of leadership into effective change agents ready to venture into

7.98. Competency based human resource path breaking initiatives to support management systems will continue to focus economic growth. The public sector will, on modernising the public sector to support therefore, develop the talent required to innovation, growth and the delivery of world effectively support Government strategies class services. Recognition of performance for private sector development. The public will be used as a major driver to motivate sector compensation system will be and engage people, retain talent and reviewed and aligned to meet the high-level accelerate performance. The performance human resource strategies and objectives. management system will focus on using The compensation system will support talent talent from within by developing multiple mobility, attract diversity and global talent, variables such as skills, perceptions, and add value through global alignment, interpersonal relationships, values, while remaining locally relevant. motivation and commitment, and the levels of challenges. In addition, a robust Improving Efficiency and Effectiveness in multifaceted approach to right sizing the Service Delivery public service will be adopted through establishment of an overarching policy and 7.100. Development of a competent guidelines, not only to support early exit workforce will be coupled with where appropriate, but also to facilitate improvement of structures that influence the efficient utilisation of resources, as well as quality of service. Service standards will be quality service delivery. The capacity and developed, monitored and further improved quality of productivity improvement and to satisfy the public. Therefore, these management skills and competency structures, processes and systems will development institutions will be continuously be improved to adapt to strengthened. Since unionised public changing national priorities and services necessitate establishment of environments that facilitate effective collective bargaining structures, institutional delivery of Government business. Efficient arrangements for public sector and effective replacement of leadership will administration will be reorganised and be ensured through a systematic reconstituted. management of Succession Planning across the public service. To a large extent this will Managing Human Capital and Innovation be facilitated through implementation of business process engineering supported by

7.99. Optimisation of human capital raises continuous restructuring exercises in the need for a multi-skilled, flexible and ministries and departments. The Directorate independent workforce. Competency of Public Service Management will also be development will be pursued and it will restructured to align its functional operations encompass promotion of values, rules, to the demands of this strategy. In addition practices and norms through which the to this, a new comprehensive computerised public sector should conduct business, to human resource information system will be ensure alignment with customer and installed to bolster this effort. stakeholder expectations. Development of talent will ensure that the personnel in the public sector deliver world-class service, produce quality products, adapt new technologies and processes, innovate and 111 PROGRAMME SUMMARIES well as getting better returns from the investments. The programme will involve Human Resource Management development of all employees to perform efficiently and effectively at all levels of

7.101. The National Human Resource Plan responsibilities. Employees in management will be used to see that the public service has and leadership will be developed to facilitate the right people and right skills at the right effective change in the economy. time. Effective and efficient recruitment Programmes will be anchored through the policies, processes, methods and tools will Botswana Public Service College, supported be adopted to allow Government to achieve by IDM and other institutions, to ensure its strategic goals and vision. A talent continuous learning in the public service. management programme will be put in place There will be further promotion of integrity to achieve optimal utilisation of human and values, and further development of a resources. All appointments will be made code of conduct. This should help to address using competency benchmarks and stakeholder expectations. standards. Deliberate efforts will also be made to engage public service recognised 7.104. The individualised leadership and unions on relevant employment issues to overall learning and development facilitate harmonious labour relations and programmes will focus on competency stability. It has been evident that the improvement gained through coaching, competency levels in the public service were mentoring, attachment, and e-learning, while lower than expected, as the 2005 Customer on the job. The programme addresses the Satisfaction Survey indicated that only 25 need to empower, engage and motivate percent of the customers surveyed were employees for improved service delivery. satisfied with the public service. Amongst The direct beneficiaries of the programme other key service attributes identified, is the will be employees, as they will personally speed at which complaints are addressed, the derive satisfaction from Government ease of lodging a complaint about customer investment on training and development. service and quality of products and services The public service will be transformed into a offered by Ministries. learning organisation, resulting in effective engagement of employees. Members of the

7.102. In addition to that, only 23.6 percent public will, therefore, benefit, as they will of the candidates assessed for leadership receive quality service. positions in the public service since 2005 were appointed with reservations, with only Productivity Improvement 2.7 percent of them qualifying as appointed without reservations or developmental 7.105. The Botswana National Productivity needs. Motivation and labour relations are Centre (BNPC) will continue to come up key ingredients to engagement, performance with initiatives aimed at increasing and commitment of employees. Direct productivity awareness across all sectors of beneficiaries of this programme are Botswana. Over and above this, it will also members of the public. Unionisation of the put in place systems, techniques, tools and public service requires improved and methodologies that will facilitate transparent management of the public organisations and other institutions to service. achieve high levels of performance and thereby improve productivity through

7.103. Government will invest in training adoption and application of best practices. and developing employees as a means of This includes among others, the attracting and retaining human capital, as development of a comprehensive 112 productivity database, providing easy fostering productivity related interventions, accessibility to national productivity the establishment of District Productivity statistics, sectoral productivity indices, Improvement Forums will ensure continuity customer satisfaction indices and quality of at local authority levels with support from workforce information. These processes will BNPC and the application of tools such as inform the structures on collective the Excellence Model at district levels and bargaining principles, contribute to the other sectors. There is inadequate data and improvement of process reengineering information to support productivity initiatives and inculcate business excellence improvement, resulting in an inability to ideals, especially to small, medium and make fully informed decisions that would micro enterprises (SMMEs) and the public improve productivity. The programme will sector. facilitate quality decision-making relating to improving public and private sector

7.106. Furthermore, to support productivity productivity. movement initiatives, such as the Botswana Excellence Foundation, which has a role in SECTOR: AGRICULTURE INTRODUCTION SECTOR GOAL FOR NDP 9

7.107. The growth of the agricultural sector depends, amongst others, on continued 7.109. The Goal of the sector during NDP development of competitive and skilled 10 is provide the requisite human resources human resources. The majority of farmers in needed in the agricultural and related Botswana are small-scale farmers who need sectors. The performance indicator is the continued assistance in capacity building to level of skilled labour within the sector. commercialise agriculture. It is necessary to Currently the baseline is 50 percent of the aggressively promote agriculture as a career human resources are skilled and the target of choice and move towards the for NDP 10 is 70 percent. development of agricultural industry-ready human resources through relevant and focused training programmes during NDP AGRICULTURAL SECTOR 10. STRATEGIES FOR NDP 10

7.108. Even though there had been much 7.110. The policy objectives and strategies investment of education in agriculture, skills which guide implementation of the did not match what was required for programmes to commercialise and improve meaningful development of the sector. In productivity of the sector are: particular, business skills lagged behind and • Increased employment opportunities for resulted in a low level of agricultural output. the fast growing labour force. Skills development should be relevant for both government and the private sector; • Provision of a secure and productive environment for agricultural producers and private sector participation. This 113 strategy will enhance participation in the Ministry Management will monitor in- agricultural opportunities and unlock the service training of employees and expansion full entrepreneurial potential in the of farmer training and skills development sector. facilities and programmes. Programme Summary: Vocational and PROGRAMME SUMMARY Technical Skills Development Agricultural Skills Development 7.113. The Vocational and Technical Skills Programme Development Programme aims at achieving the outcomes of: improved vocational skills,

7.111. The aim of the programme is to employability, improved quality of training provide training in the theory and practice of and assessment through the flexible agriculture related disciplines. It also aims to vocational training programme and transform education and extension to be increased access to vocational training. The more responsive to market requirements. In responsible institutions for implementing the Botswana, there is evidence that, among the programme activities and outputs are the reasons for the sector’s low profitability and Department of Vocational Education and below-normal returns, is lack of Training (DVET), Botswana Training international competitiveness. Therefore, the Authority (BOTA), Madirelo Training and programme aims at building capacity to Testing Centre (MTTC) and the match the demands of the fast changing Construction Industry Training Fund world markets. Farmers, employees of the (CITF). Implementation strategies will Ministry of Agriculture and new entrants to include collaboration with partners and the agricultural sector are the beneficiaries. outsourcing.

7.112. The programme is intended to 7.114. Existing structures for industry- provide a competent skilled labour force government collaboration, such as standard relevant to the needs of the agricultural setting task forces and industry sectoral industry. It also promotes pride and dignity committees, will be strengthened to ensure in agriculture as an occupation, through its that the Skills Development Programme is farmer outreach and student enterprise demand-driven rather than supply-driven. initiatives. The continuing in-service Currently, private and NGO providers are training programme aims at ensuring responsible for nearly 46 percent of attraction and retention of talent in the enrolment of learners at vocational Ministry and ultimately improving service institutions. The NGOs account for almost delivery. The programme has one outcome, all the learners with disabilities. Through the a skilled agricultural labour force. The accreditation processes, this contribution is Botswana College of Agriculture will expected to increase and improve in quality monitor implementation of initiatives, while 114 CHAPTER 8 KNOWLEDGE SOCIETY KEY RESULT AREA: KNOWLEDGE SOCIETY Key Result Area Description

8.1 Vision 2016 has identified the Services; Department of Roads; importance of information, developing of Department of Information Technology. efficient information system and networks to support research, education, development 8.3 The Communication, Science and and communication with the rest of world. In Technology sector has identified the national line with this recognition, the Ministry of goal of innovation and productive creation Communications, Science and Technology and use of information and technology to (MCST) was established in 2002 to achieve the goal. This goal is premised on coordinate communication, science and being a Knowledge Society, which espouses technology development. The Ministry that all people (citizens and other residents) coordinates research, technology and of Botswana will have easy access to innovation through the Department of information to improve their lives at home Research, Science and Technology, which and work. Information about all aspects of was created in 2004, and its three the economy, such as education, health, institutions, namely: the Botswana environment and business, will be available Technology Centre (BOTEC), the Rural through the different information Industries Promotion Company (RIPCO) dissemination channels, which include and the National Food Technology Research telecommunication, electronic and print Centre (NFTRC). media. Media communication is at the heart of global knowledge dissemination. The

8.2 This Ministry together with the instruments of modern communication have Ministry of Works and Transport were grown in their importance to facilitate wealth restructured on the 20th October 2009 and creation through innovation and knowledge two Ministries were created as follows: sharing. Well developed media will facilitate • Ministry of Infrastructure , Science and Botswana’s participation in the global trade Technology comprising Department of in knowledge-based products and services. Building and Engineering Services; Department of Research , Science and 8.4 Botswana must be ready to create, Technology; Department of Radiation adapt and adopt new technologies that will Protection; accelerate development of innovative and • Ministry of Transport and technology based products. Special attention Communications comprising Department will be given to developing and using of Road Transport and Safety; technology to reinforce and drive the Department of Central Transport performance culture in government and the Organisation; Department of private sector. During NDP 10, an Telecommunications and Postal innovation and service culture will be continuously encouraged, measured and 115 validated through performance indicators. • E-Government; Efforts to create knowledge will focus on • E-Legislation; private sector participation and ownership of • Infrastructure development; the responsibilities for service provision. • Measures put in place to develop the ICT There will be sharing of research and industry. technology initiatives, funding and benefits. A key initiative in this regard will be the Research and Development Botswana Innovation Hub (BIH), which will attract both local and foreign companies, as 8.7 During NDP 9, the Government well as incubate research and development provided funding for research and in mining, Information and Communications development to facilitate the production of Technology (ICT), biotechnology and technology outputs to benefit society (see energy, from product development and paragraphs 8.36 and 8.37). Some of the innovation to commercial viability and technologies produced were a hearing aid, export. food products and farm implements. In order to further strengthen research and NDP 10 Goal development, studies were conducted, such as the National Research, Science and

8.5 The NDP 10 goal that is derived from Technology Plan and the feasibility study the Vision 2016 pillar of an Educated and and plan for the Botswana Innovation Hub. Informed Nation is to have “Innovative and While the National Research, Science and Productive Creation and Use of Information Technology Plan identified research and Technology.” Associated with this NDP priorities for implementation in NDP 10, the Goal is the Millennium Development Goal Hub will provide an environment for (MDG) to achieve Universal Primary interaction between research and business. Education by 2015 (MDG 2). The Radiation Protection Inspectorate was also established to regulate the use of atomic Goal Performance during NDP 9 energy and nuclear technology. Information and Communications Media Technology (ICT)

8.6 The National ICT Policy (Maitlamo) 8.8 The master plan for the expansion of was approved by Parliament in August 2007. the Radio and Television Terrestrial The Policy lays out a clear and compelling Transmitter System was formulated. The national ICT strategy that addresses key focus was to avail radio and television issues with the potential to make the country signals to 95 percent of the population. more proactive in approaching and Installation of these transmitters is ongoing embracing the information age in readiness and will be completed during NDP 10. for effective participation in the global ICT Construction of three regional offices for the industry. The following initiatives were Departments of Information Services and implemented during NDP 9 and will be Broadcasting, as well as the Department of carried over to NDP 10: Printing and Publishing Services, is ongoing, • Community access centres; while construction of one district office was • School Net (ThutoNet); completed. • E- Health; 116 Goal Strategies for NDP 10 • Development of Infrastructure to enable various sectors in the economy to

8.9 The sector will mobilise resources in effectively carry out their functions; order to achieve the goal of innovation, and • Performance Monitoring of knowledge creation and utilisation. The institutional activities to ensure that following strategies will be implemented: plans are effectively implemented and • Capacity Building for Innovation and produce desired outputs; and Information Utilisation. This will be • Institutional Reforms. The Government done through training to equip personnel will liberalise and reform some with scientific and technical skills; institutions to enhance service delivery. • Public Private Partnerships will be encouraged for the purpose of sharing responsibility and promoting efficiency; SECTOR: COMMUNICATIONS, SCIENCE AND TECHNOLOGY INTRODUCTION world. Botswana’s world ranking in e- government readiness dropped from 90 in

8.10 From 1997, Botswana was considered to 2005 to 118 in 2008 (Table 8.1). be a frontrunner with regard to development of Regional countries, such as Lesotho and communications, science and technology when South Africa, are competing to improve compared to countries of similar size, wealth their ranking in order to attract foreign and development. For instance, in 2002, investors and donors. Therefore, urgent Botswana, with a Digital Access Index of 0.43, action must be taken to improve our was ranked amongst the top five Sub-Saharan competitiveness in this area. countries, with Seychelles, Mauritius and South Africa coming on top (World Economic Forum, 2004). The country had an enviable digital 8.12 The Radio and Television Master telecommunications infrastructure that was Plan was drafted with an intention to reliable, resilient, and covered all 16 expand radio and television access to the administrative districts. The population. Other notable milestones Telecommunications Policy of 1998 had achieved within the media during NDP 9 produced two successful mobile telephone are: operators and the country was aggressively • Semi-commercialisation of the adopting computers and the internet as business Botswana Daily News was enhanced tools, both in the public and private sectors. as a result of the cost recovery initiative;

8.11 Despite its better performance in other • Establishment of the Botswana ICT areas, Botswana faced challenges in Chapter of the Media Institute of providing telecommunications service tariffs Southern Africa; that are competitive in relation to those in • Establishment of the Press Council of countries of similar Gross Domestic Product Botswana; (GDP), especially those with high technology business exporting services to the rest of the 117 • Establishment of the Media Studies Department at the University of Botswana. Table 8.1: E-Government Readiness for Southern Africa Country 2008 index 2005 index 2008 ranking 2005 ranking South Africa 0.51 0.51 61 58 Lesotho 0.38 0.34 114 114 Botswana 0.36 0.40 118 90 Swaziland 0.35 0.36 125 108 Namibia 0.35 0.34 126 111 Region (average) 0.39 0.39 World (average) 0.45 0.43 Source: United Nations: e-Government Survey 2008

8.13 During NDP 9, some progress was and transfer, stimulation of innovation and made in knowledge creation and media development will contribute to the development of technologies. Research into emergence of the knowledge society. food processing produced various products from local raw materials. Solar power and SECTOR PERFORMANCE IN NDP 9 waste water management experiments were conducted. Nuclear technology was applied Information and Communications in agriculture for tsetse fly control and in Technology health for studying the efficacy of nutritional interventions on HIV patients. 8.16 Substantial progress has been made in

8.14 NDP 10 brings opportunities for the development of the communications increasing the role of communications, industry. Progress was achieved through science and technology in the national turn- structured reforms to promote effective around strategy that will transform the competition and market efficiency. Prior to economy from being mineral dependent to 1998, Botswana Telecommunications being information, services and innovation Corporation (BTC) was the only supplier of driven. Vision 2016 foresees Botswana as a telecommunications in the country. Mobile nation in which most of its citizens are telecommunications service was introduced engaged in knowledge-based jobs. These and two companies, Mascom Wireless will be jobs in which data, information and Botswana and Orange Botswana, were knowledge are the main tradable items. The licenced in 1998. This opened up the sector Knowledge Society will “empower citizens to strong competition and the share of to become the best producers of goods and customers for the fixed line operator services”. During this Plan period, ICT and declined in the market. Table 8.2 shows that innovation must take their place in the mobile telephony quickly dominated the national economy, not only as drivers for market. It rose from 76 percent in 2003 to 91 private sector competitiveness, but also as percent in 2008. The annual growth rate of exports of goods and services. mobile phone ownership averaged 22 percent over these years.

8.15 A coordinated, orchestrated series of interventions in skills development, technology business development, utilisation 118 Table 8.2: Telecommunications Subscriber Base by Type Year Average Operator 2003 2004 2005 2006 2007 2008 2003-2008 Share Mobile 444 978 522 840 571 437 823 070 1 151 761 1 485 791 833 313 Share Fixed 142 600 131 774 136 423 132 034 136 946 142 282 137 010 Total Subscriptions 587 578 654 614 707 860 955 104 1 288 707 1 628 073 970 323 % Share Mobile 76 80 81 86 89 91 84 % Share Fixed 24 20 19 14 11 9 16 Source: Botswana Telecommunications Authority; 2008

8.17 The telecommunications market was planned to be completed during NDP 10, is further liberalised in 2006 in order to expected to contribute to the national vision increase efficiency. This resulted in the issue pillar of “A Prosperous, Productive and of service and technology neutral licences in Innovative Nation”, and to the national goal 2007 to the three national operators, of economic diversification and Mascom Wireless Botswana, Orange development. Botswana and Botswana Telecommunications Corporation. The 8.19 Considerable effort was expended to service neutral licences enabled the national ensure that Botswana participates as a operators to offer a broad range of shareholder in the undersea fibre optic cables telecommunications services, including running on the east and west coast of Africa, internet service, mobile telephony, fixed-line which will link countries on the east and telephony and value added services under west coasts of Africa to international one licence. This arrangement not only gave telecommunications networks. When this operators equal opportunities, but also network infrastructure is operational, levelled the telecommunication playing field communication (internet and data for effective competition. Parallel to further transmission) will be efficient, fast, reliable liberalisation, and in an endeavour to and affordable. promote participation of the private sector in the development of the economy, the process 8.20 The ICT Legal Framework was for privatisation of the Botswana created during NDP 9. This framework, Telecommunications Corporation was among others, identified actions crucial to started. The intention is to list the privatised the amendment of laws and structures corporation on the Botswana Stock necessary for a secure and trusted legal Exchange (BSE) during NDP 10. environment for increased levels of electronic interaction. A Cyber Crime Act

8.18 A rural telecommunications strategy was passed by Parliament in December, was formulated in 2006 to guide provision of 2007. telecommunications services to rural and under-served communities throughout the 8.21 The uptake of electronic country. The strategy identified 197 villages communication within Government has in need of telecommunication services. progressed well during NDP 9. The These villages will be covered under the Government Data Network (GDN) has been Nteletsa II Telecommunications project, expanded to 533 sites across the country, which started in 2008. The project, which is with over 20,000 users. The initiative 119 provides e-mail facilities, a government services, internet and electronic capabilities Intranet Service and access to the Internet. under a single authority. A consolidated Introduction of GDN has resulted in several regulator promotes economic efficiency by electronic systems, such as the Government avoiding duplication, which would emerge Accounting and Budgeting System (GABS), under multiple sub-sector regulatory the Vehicle Registration and Licensing agencies. Establishment of this body would System and the Automated System for also reflect the technological convergence Customs Data (ASYCUDA), which make that is currently taking place in the global government service delivery easier and communications sector. faster. Government also started the School Connectivity Initiative to provide broadband Postal Services internet access to 235 secondary schools in the country during NDP 9. The broadband 8.24 Prior to 1989, telecommunications and connection will provide the staff and postal services were provided by the then students of these schools with high speed Ministry of Works, Transport and internet access. Obsolete systems, such as Communications. These services were the Computerised Personnel Management unbundled in 1989 when the Botswana Post System (CPMS), will be phased out during was established. Botswana Post has NDP 10 and replaced by the Common remained a 100 percent public enterprise Computerised Human Resource regulated by MCST. Management System, which will integrate with other systems such as the Government 8.25 The lack of a comprehensive Payroll system and GABS. regulatory framework for postal and delivery services has resulted in an unbalanced

8.22 During NDP 9, separation of sector, with new entrants having free access functions became a problem in the ICT to, and choice of market segments. They are sector. This is further compounded by able to focus on profitable areas, whilst technological convergence. During NDP 10, Botswana Post has to provide services to all MCST will review some of its organisational areas, including those that are not profitable. mandates and establish appropriate institutional structures that bring about 8.26 Global developments in the postal optimum efficiency and differentiate the services sector motivated Government to three spheres of policy administration, formulate a Postal Policy during NDP 9 that autonomous regulation and competitive will provide a clear legal and regulatory service provision. environment for the sector. The policy has several objectives, which, among other Regulatory Environment things, will ensure availability of quality postal services throughout the country,

8.23 A study carried out by the Public especially in the rural areas. Enterprises Evaluation and Privatisation Agency (PEEPA) in 2005 on “Appropriate 8.27 Despite the challenges, Botswana Post Regulatory Reforms for the Infrastructure reported an average of 90 percent mail and Utility Sectors in Botswana” suggested delivery rate within three days of posting in that, in view of the size of the country and its 2006. This is in line with Universal Postal population, Botswana should regulate Union standards. In 2009, postal density in telecommunications, broadcasting, postal Botswana is estimated at 9,137 inhabitants 120 per permanent postal outlet in the country licence, while Gateway TV, Monumotapa against Africa’s density of about 82,000 TV and Black Earth Communications were inhabitants per postal outlet. However, in issued with pay television licences. The terms of population distribution, Botswana arrival of these stations facilitated a wider fares unfavourably because one postal outlet choice of broadcasting services. serves an average of 3,200 square kilometres 8.30 A national television service, compared to 1,300 square kilometres for Botswana Television (BTV), was introduced Africa. However, this reflects the low in July 2000 and viewership has grown. density population of Botswana. It makes it Local content has increased to 20 percent of all the more remarkable that the density of its programmes. Both public and private inhabitants per permanent postal outfit is so broadcasting operators (radio and television low compared to other countries in Africa. stations) have improved their national Universal Service and Access Policy coverage by expanding signal distribution and introducing new content.

8.28 Communication services do not reach certain localities in Botswana, as they are 8.31 The setting up of the Media Studies deemed not to be commercially viable. It is Department at the University of Botswana against this background that the MCST has has had a significant impact on the problem developed a Universal Service and Access of the shortage of media personnel in the Policy during NDP 9 in line with the Vision country. The establishment of the Botswana 2016 pillar of “An Educated and Informed Chapter of the Media Institute of Southern Nation”. The Policy is aimed at promoting Africa and setting up of the Press Council of access to communication services (internet, Botswana are some of the developments that newspaper, postal, radio, telephony and have contributed to enhancing television) throughout Botswana. It professionalism and efficiency in the sector. advocates the establishment of a Universal Service Fund to finance the provision of 8.32 The following policy and legislative communications services to the rural, under- changes were made during NDP 9 in a bid to served and disadvantaged population, further improve the sector: including areas that would otherwise be • In recognition of the media as a partner in deemed commercially unviable. A number development, Government set up the of villages were provided with tele-centres Media Advisory Council which is a sub- (Kitsong Centres) during NDP 9. It is committee of the High Level Consultative expected that the Policy and the Council; accompanying legislation will be fully • The National Broadcasting Board was implemented during NDP 10. established to regulate broadcasting activities in the country; Media • The Media Practitioners Bill, which seeks to give legal recognition to the Press

8.29 During NDP 9, a variety of privately Council as a self-regulating body, was owned newspapers entered the market. This drafted; and period also saw further liberalisation of the • A draft Broadcasting Policy, which will, airwaves. National radio licences were among others, pave the way for the setting issued to Yarona FM, Gabz FM and Duma up of community radio stations, was FM. Gaborone Broadcasting Corporation prepared. was issued with a national free-to-air 121

8.33 Despite achievements mentioned NDP 9, including the development of a above, the following surfaced as challenges fodder processor, milling plant, row planter, facing the sector during NDP 9: and multi-purpose thresher, as well as • Increase in litigation which is threatening utilisation of building materials, renewable the lives of media institutions; energy technologies and waste water • Contined shortage of skilled professionals; management. The institution contributed to • Inadequate legislative and regulatory rural development through transfer of frameworks; and technologies to village communities in • Inadequate production of local content. tannery, textiles, blacksmithing, hammer milling and bread baking. Research and Development

8.37 During NDP 9, the National Food

8.34 During NDP 9, MCST developed a Technology Research Centre (NFTRC) national plan and a strategy for Research, undertook programmes on research and Science, Technology and Innovation. The development on new food products, Plan identified priority areas for research and providing technical assistance in the development. The strategy outlined how utilisation and commercialisation of locally government should target its investment in grown agricultural commodities, as well as research, science and technology in order to veldt products. The organisation carried out gain maximum benefit for socio-economic studies on meat and fruit/vegetable advancement. processing, food fortification, nutrition and HIV/AIDS research, chemical analysis of

8.35 A programme to train researchers is food products, biotechnology, food safety being piloted. This initiative was aimed at and microbial evaluations. improving competitiveness and strengthening the research capability and 8.38 Substantial progress was made in the capacity of local scientists in relevant areas area of management of nuclear sources and of research, science and technology. Steps radiation protection during NDP 9, were taken to rationalise and re-tool the including: research institutions. A fund will be made • Development of country programme available to researchers in both the public framework on utilisation and regulation of and private sectors. During NDP 9, the atomic energy and nuclear technology; Botswana Technology Centre (BOTEC) • Approval of the Radiation Protection Act engaged in a number of projects, including (2006); the Community User Information Service, • Establishment of the Radiation Protection Solar Thermal Testing Facility and Science Inspectorate as a department; Exploratorium for school children, • Establishment of the Radiation Protection Kgalagadi Sand Building Block, Solar Board. Chimney, Business Incubator, Feasibility Study of Rain Water Harvesting, Calibration 8.39 Despite the above performance, the Laboratory and Motshegaletau Solar Power following challenges were experienced: Project. • Lack of a programme approach to research and development;

8.36 The Rural Industries Promotions • Underdeveloped infrastructure; Company (RIPCO) also undertook various • Inadequate human and financial resources. technology development activities during 122 Botswana Innovation Hub Goal 2: ICT as a major contributor to the national economy

8.40 During NDP 9, MCST commissioned a feasibility study and a business plan for the 8.42 NDP 10 presents an opportunity for Botswana Innovation Hub (BIH). The study assessment and monitoring of the ICT confirmed the viability of the project and sector’s delivery of services. This will recommended that the Government takes a publicise the country outside its borders in a leading role as an investor and also as the cost effective manner, as well as providing driver of the knowledge economy, that equal service to the country’s diaspora. opportunities are provided for both foreign Consequently, the growth of the ICT and domestic businesses, that key focus industry will create more employment and areas are targeted, that high quality premises attract foreign investment. and services are provided, and that professional management is put in place. Goal 3: Strong research and technology The reason for establishing the BIH is to utilisation create a platform for world-class businesses engaged in knowledge intensive activities, 8.43 The goal for science and technology is which will help to diversify the national strong Research and Development (R&D) economy. The study also confirmed that and technology utilisation. Research and companies (both local and foreign) and development will be strengthened through research organisations engaged in ICT, the development of appropriate biotechnology, mineral technologies, energy infrastructure and capacity building. The businesses and other innovative initiatives research institutions will intensify creativity are interested in operating in the Hub. Land and innovation and develop commodities has been allocated and the management plan with commercial potential. The ultimate goal has been formulated. Phase 1, which is to stimulate productivity growth of includes urban design, land servicing and producers in all sectors of the economy, and infrastructure development, including in particular to stimulate technology-based offices, laboratories, conference and activities. recreational facilities, will start in NDP 10. Goal 4: Improve competitiveness and Goal 1: Innovative and informed society knowledge utilisation in the public sector with well developed communications services 8.44 The existence and optimal use of the infrastructure would result in increased

8.41 Botswana will continuously develop efficiency within the public sector service new innovative ideas and initiatives for the delivery system. This will increase the sustainable growth of communication development of knowledge systems, thereby services. Communication services will enhancing Botswana’s competitiveness provide an essential platform for setting up within the world economy. and accessing information systems and services. Communication services will play a pivotal role in the creation and dissemination of information. 123 locations and times, for instance electronic STRATEGIES FOR NDP 10 government publications; • e-Legislation: The Government will ICT Maitlamo Initiatives develop ICT laws to enable the private sector to increase its involvement in e-

8.45 The ICT strategy will continue to lead business. This should result in more e- Botswana towards its National ICT Policy business services being offered to the (Maitlamo) goal of being an active public. participant in the Global Information Society and a nation that uses ICT effectively. ICT Communications Infrastructural has the potential to create growth of output Development and employment in the private sector, and thereby to contribute to economic 8.46 Provision of the necessary diversification. The following are strategies communications infrastructure that will for Maitlamo: improve access to and efficiency of data • Thuto Net: In order for Botswana to transfers and business transactions on-line. achieve the goal of a “knowledge-based This should contribute to making Botswana society” as outlined in Vision 2016, a regional ICT hub. It will be a priority in Government will educate children in ICT NDP 10. It will depend on the completion of and other subjects, such as mathematics, the international connectivity links to the science and engineering, which are proposed under-sea fibre-optic cables on the required for success in the digital age. East Coast and West Coast of Africa, which Sustainable ICT-driven transformation were started in NDP 9. These efforts will be and national growth will only be achieved complemented by upgrading of the national through the development of local skills backbone and access networks. and expertise, especially in children and young adults. This will be implemented in 8.47 During NDP 10, investigations will collaboration with MoESD and the private assess the current broadband access levels sector; with a view to formulating the requisite • e-Health: This critical programme is broadband policy and regulatory aimed at providing better healthcare frameworks. Promotion campaigns and through Telemedicine. ICT will increase capacity building in conjunction with the the quality, safety, timeliness and private sector to increase uptake will be efficiency of healthcare services; carried out. • e-Government: ICT can contribute better service delivery by improving efficiency 8.48 Government will consider the and reducing costs through e-Government. establishment of a special purpose vehicle Government will make some of its for the management and operations of all the services available online. Information will Government-assisted international be collected, consolidated, re-packaged, connectivity activities. This will also include and presented in an appropriate format for the national telecommunications backbone easier and faster consumption by citizens. infrastructure of the Trans-Kalahari, Trans- Ministries will ensure that there is use of Chobe and the Eastern Corridor Fibre Optic ICT in Government to deliver quicker systems, which must be separated from the services to the public at convenient main BTC business. 124

8.49 During NDP 10, the postal 8.52 Digital convergence and the switch communications network will be improved from analogue to digital systems, by refurbishing and developing postal particularly in the broadcasting arena, will offices throughout the country. This will be a focus area during NDP 10. MCST will improve mail delivery efficiency and facilitate the switchover process and ensure increase public access to postal products and its completion by 2015 in line with the services. The introduction of financial and recommendations of International electronic services will be a key strategy for Telecommunication Union’s Regional Radio postal sector growth. The postal sector will Conference of 2006. This digital migration take advantage of opportunities created by would allow for increased signal volume. ICT to improve customer service and The existing transmitter stations and enhance communications products. This will television sets would be upgraded to transmit expedite faster payment transactions, and receive digitally. particularly the payment of social benefits. The establishment of a National Postal Code 8.53 The existing printing equipment and and Addressing system will improve postal systems will be upgraded to align them with service delivery during NDP 10. the demands of new technology. A closed circuit television system will be installed to

8.50 Media investments, in particular improve security in the handling of television, are expensive undertakings. confidential government publications. A However, they are very powerful tools for standby generator will be installed to ensure education and information dissemination and that there is continuity in production during can be used for nation building. The power cuts. Government will consider creating a second television channel. This would enable the Policy, Legislation and Regulatory private sector to advertise their products, and Framework for the Communications would facilitate a wider choice for viewers. Sector To be in line with the expectations of the audience, regular audience surveys will be 8.54 During NDP 10, the main challenge conducted. will be the technological convergence of the broadcasting, telecommunications, internet

8.51 The Radio and Television Transmitter and postal sectors. Studies conducted during Master Plan will be completed during NDP 9 have confirmed that the NDP 10 and more transmitters will be communications sector needs to be installed in a bid to provide signal to 96 effectively managed and monitored by percent of the population. Some transmitters implementation of legislative frameworks will be installed to cater for the major road and institutional structures that will support networks to ensure continuous reception of convergence. information and entertainment. Regional transmitter maintenance stations will be 8.55 An ICT legal framework that will established to reduce excessive downtime of provide the basic rights and protection of the service. In addition, standby generators citizens, establish a trusted and secure will be installed at transmitter stations to electronic environment, create greater avoid transmission downtime that results economic diversification and boost investor from electrical cuts or load shedding. confidence will continue to be implemented. This will include amending the existing 125 specific legislation, and drafting of new the 2006 Rural Telecommunications legislation to deal with electronic signatures, Services Strategy. During NDP 10, the rural e-Commerce and others, such as personal telecommunications project (Nteletsa 2) will privacy protection in health care, financial be concluded and extended to villages with a services and business transactions. minimum population of 250, along the national road network, in agricultural

8.56 A Knowledge Society can be realised production zones, the tourist areas and other through, among others, the existence of an strategic areas throughout the country. active and responsible media industry. A developed media industry cannot thrive in a 8.60 While the Postal Policy has laid down vacuum, lest it is abused. Therefore, a clear sector reforms with universal service relevant policy framework will be obligation having been assigned to Botswana formulated to guide the media industry. This Post, a programme that will assist in will not only protect media operators, but providing service to the rural and consumers as well. underserved areas will be developed. Provision of universal postal services to

8.57 An assessment of the effectiveness of these areas shall be guided by the Rural the policy and regulatory framework will be Postal Services Strategy that will be conducted in order to improve service developed during NDP 10. delivery. Measurement and monitoring mechanisms will be established for the 8.61 A key goal of the Connecting operators and the regulator so as to measure Communities Programme is to provide the effectiveness of the service delivery and residents of rural, remote and urban assess if the goals and objectives of the communities with affordable access to policies are being met. Periodic reviews of computers and the Internet – especially those the respective sub-sectors’ performance and people who might not have computers or policy effectiveness will be carried out every Internet access in their homes or workplaces. two years. The implementation of Kitsong Centres will be important to bring the rural and

8.58 The Government will fully liberalise underserved communities to access the the communications market during NDP 10 mainstream of the e-government services so as to maximise the benefits from and other related ICT services. The competition and convergence. The long-term implementation of the shared community benefits will be lower costs of user information centres shall be carried out communication services (voice, internet, with as much Public Private Partnership data, postal and pay television). This is one (PPP) as possible, including the use of of the measures critical for the attraction of existing structures such as the Village foreign direct investment, better service Development Committees (VDCs). Capacity delivery and affordability. building is, therefore, required amongst the rural citizens to enable them to run the Universal Access to Communication centres efficiently and effectively in order to Services develop a model that is self-sustaining.

8.59 Provision of the telecommunications 8.62 During NDP 10, the Kitsong Centres infrastructure and services to all rural and implementation strategy will be formulated underserved communities shall be guided by in order to guide the delivery of all shared 126 communications services. Kitsong Centres will be completely restructured into a new will be extended to other areas of the entity, while RIPCO will be restructured and country. become more focussed on research operations. NFTRC will continue to carry

8.63 Development and expansion of the out several projects, including food product broadcasting signal distribution network will development, use of nuclear technology in be extended to cover almost 96 percent of nutrition research, human resource the population and 65 percent of the development and technology research and geographical area of Botswana. The strategy transfer. should have content from rural communities, large and small, throughout Botswana, 8.67 Funds allocated for research will be thereby making valuable contributions to the increased in order to enhance research focus, diversity of information and viewpoints, as purpose, innovation and creativity. Research well as supporting the democratic process. institutions will be re-organised and their Citizens shall have increased access to a research platforms will be appropriately diverse range of the media. positioned to address and respond to the priorities as outlined in the national research

8.64 Another strategy will be to increase plan. All public funded research activities the distribution of national newspapers from and outputs will be monitored and evaluated the current estimated 50 locations to all to ensure that they are aligned with the communities that have at least 2000 National Research, Science and Technology inhabitants. All national print media will be Plan. more widely available in the country. A distribution system encompassing public and 8.68 The Radiation Protection Inspectorate private sector print media will be developed. will continue to regulate the use of atomic energy and nuclear technology, and Research and Development disseminate information to both users and the public on the safe use of nuclear

8.65 During NDP 10, Research and technology. There will be infrastructural Development will be redirected and development for radiation management and refocused to meet the challenges facing the monitoring. During NDP 10, the Radiation nation and contribute to economic Protection Inspectorate will play a pivotal diversification and poverty alleviation (see role in the provision of technical and paragraph 8.42). Some of these challenges advisory support services to all public and are in the areas of health, environmental private sector organisations implementing safety, agriculture, water scarcity, climate national projects funded through the change and the need for industrial International Atomic Energy Agency’s development. The strategy is to develop and (IAEA) Technical Cooperation Fund. The implement research programmes whose National Liaison Officer within the outputs will result in socio-economic Inspectorate will coordinate the benefits. implementation of such projects. The National Liaison functions need to be

8.66 During NDP 10, BOTEC and RIPCO expanded to cater for all users of nuclear will be restructured in order to get a better technology and for liaising with the IAEA. focus on their research mandates and greater The Inspectorate should be converted to efficiency from the two institutions. BOTEC parastatal status during the Plan period, in 127 order to make it less dependent on contribute to knowledge creation, economic Government. development and growth. The Hub will promote innovation by establishing an Innovation incubator for start-up companies, facilitate networking between universities and

8.69 The Botswana Innovation Hub is businesses located at the Hub and between planned for completion during NDP 10. the businesses themselves, with partners Both local and foreign companies meeting both locally and internationally. the qualifying criteria for the Innovation Hub will have the opportunity to benefit from selected incentives aimed at promoting research development and production that Matrix 8.1: Sector Performance Matrix NDP 10 Key Baseline: NDP 10 Targets (%) Performance Year Achievement Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Indicator Technology Index (a) 2007 78 77 75 74 73 72 71 70 R&D expenses as % 2003/04 0.43 0.46 0.50 0.55 1.00 1.35 1.70 2.00 of GDP % of people with 2007 70 73 76 79 81 84 87 90 access to telecoms services (Mobile) % of people with 2007 5 7 9 11 14 16 18 20 access to computers % of people with 2007 7.5 8.0 9.0 10.0 10.5 11.0 11.5 12.0 access to telecoms (Fixed Line) % of people with 2007 4.0 6.0 8.5 10.0 12.0 14.0 18.0 20.0 access to Internet % of population with 2008 80.0 95.0 95.0 95.2 95.3 95.5 95.7 96.0 access to radio % of population with 2008 40.0 95.0 95.0 95.2 95.3 95.5 95.7 96.0 access to television Note: (a) World Economic Forum (WEF) Source: Ministry of Communications, Science and Technology PROGRAMME SUMMARIES will provide a platform for establishing systems enabling the public to acquire new ICT Development Programme knowledge for use in productive enterprises. It will connect Batswana to modern

8.70 This programme is aimed at communications for voice, internet, data and developing and upgrading ICT infrastructure post. to improve efficiency and effectiveness in service delivery through the use of electronic communication media. The services/initiatives under this programme 128 Innovation, Research and Development Appropriate Technology Services and Programme Secure the Future.

8.71 This programme will coordinate Media Development Programme Research, Technology and Innovation through the Department of Research, 8.73 Media development refers to the Science and Technology. Three institutions provision of an enabling environment for the namely BOTEC, RIPCO and NFTRC, as development, provision and consumption of well as other institutions, will undertake media to the intended target group. The various research and development activities media comprise electronic and print media. to provide information for decision making. They are an essential tool for dissemination Research and development will contribute to of information. The media industry plays a the national goals of economic vital role in the creation of a knowledge diversification, poverty alleviation, society, as well as provision of environmental sustainability and entertainment. It cuts across all demographic employment creation. New initiatives for target groups. The people of Botswana, in research and development will be assessed particular potential internal and external on whether they will add new knowledge, tourists and investors, farmers, the business contribute to economic diversification, have community and civil society at large, are the socio-economic benefits, be affordable and beneficiaries. Other members of society, environmentally friendly. The research such as costume designers, freelancers results will be commercialised to develop (photographers, set designers) and script goods and services for both the local and writers, will be inspired by this development. export market. In order to achieve this, Producers of various programmes will feel existing institutions will be restructured and protected by the establishment of regulatory fully equipped so that they can respond to bodies and the monitoring facilities. the research priorities and funding intentions over the Plan period. 8.74 The international broadcasting system is moving away from the traditional

8.72 Some research institutions will analogue systems to digital systems. collaborate with the Innovation Hub to Therefore, a digital migration plan will be effectively deliver information for formulated and implemented to fulfil the development. These are the Department of requirements of Radio Communication Agricultural Research, University of Conference of 2006 that was organised by Botswana, Botswana College of Agriculture, the International Telecommunications Botswana Meat Commission, the Union. This will be accompanied by a International Atomic Energy Agency programme to increase local content, (IAEA) on the peaceful use of atomic develop media services, facilities and energy, the Centre for Scientific and policies, and increase geographic coverage. Industrial Research on training and The plan will focus on making it easier to technology development, the Regional obtain information; this will be monitored Research Alliance on technology projects, through indicators yet to be determined. Modern Implements, the Scientific and Industrial Research Development Centre, Food and Agricultural Organisation (FAO), 129 SECTION IV: A PROSPEROUS, PRODUCTIVE AND INNOVATIVE NATION 130 CHAPTER 9 SUSTAINABLE ECONOMIC GROWTH KEY RESULT AREA (KRA): SUSTAINABLE ECONOMIC GROWTH AND COMPETITIVENESS KRA Description

9.1 Government has long considered economic growth and diversification sustainable economic growth and supported by a sustainable environment. competitiveness to be key to achieving the Botswana will be a society distinguished by prosperous, productive and innovative goal. the pursuit of excellence through an enhanced Through this KRA, Government will culture of hard work and discipline, where facilitate the creation of an environment that effort is rewarded and the necessary skills are encourages and supports business and available. Government will provide a lead by entrepreneurial activities. This will be in assuming the role of facilitator, in partnership partnership with the private sector and other with the private sector, to create an stakeholders. Through its sector strategies environment where business and and programmes, this KRA emphasises the entrepreneurial activities are encouraged and use of renewable resources and efficient use supported. of non-renewable ones, such as minerals, in an integrated approach towards conservation and economic prosperity. 9.4 The Vision anticipates that to realise this KRA by 2016, Botswana will have diversified its economy with mining,

9.2 The prosperity of a nation is agriculture, industry, manufacturing, services dependent on the productivity and and tourism all making a substantial competitiveness of its enterprises. In this contribution. Botswana will have a vibrant and context, the Prosperous, Productive and energetic economy that is able to meet the Innovative Nation Pillar is critical to the competitive demands of the 21st century, and attainment of Vision 2016. The achievement will be able to attract investors. of prosperity, individually and nationally, creates the enabling environment for the NDP 10 Goal achievement of the other pillars. Accentuated by the effects of global

9.5 The NDP 10 goal, arising from the recession, increasing prosperity will require Vision 2016 pillar of Prosperous, Productive that Botswana makes more productive and and Innovative Nation is Sustainable Rapid innovative use of its human and natural Economic Growth. resources during NDP 10 in order to triple real GDP per capita by 2016, compared to 1996, as required by this pillar (see chapters 9.6 Sectors contributing directly to this 4 and 6 for analysis of this). goal include finance and banking, trade and industry, tourism, agriculture, and minerals, supported by labour. These are potentially high

9.3 Vision 2016 anticipates that its quest leverage, high impact sectors for economic for a “Prosperous, Productive and Innovative development, particularly for economic Nation” will be achieved through sustainable diversification, poverty reduction, employment 131 creation which, together translate into a a result of improvements in ease of starting a “Prosperous, Productive and Innovative business, and in the index for protection of Nation”. investors;

9.7 Manufacturing, tourism and • A considerable growth in merchandise agriculture are both relatively labour exports, notably because of high base intensive and strongly linked with the rest of metal prices peaking in 2007, and the the economy, and are ideal for targeting impact of Pula depreciation on export issues of unemployment and poverty receipts; reduction. Similarly, the trade and industry • Rapid growth of the service exports. and minerals sectors have a comparative There was particularly rapid growth in the advantage in attracting foreign direct unspecified category "other", indicating investment (FDI) needed for economic that the growth of service exports was not diversification. just in tourism. However, the growth of this sector is hampered by inadequate Goal Performance during NDP 9 infrastructure, and by scarcity of professional skills. The scope for less skill-intensive service exports has not yet

9.8 NDP 9 performance was been exploited. Further analysis of characterised by: economic and social progress during NDP • GDP growth which was slower than the 9 is in Chapter 4, and of Botswana's 5.5 percent projected for NDP 9. Actual ranking in "Doing Business" in Chapter 5. growth was an annual average of 3.3 percent, mainly because of a contraction of 3.3 percent in 2008/9. The non-mining 9.9 In the above context, the major private sector grew at an average of 6.2 issues for NDP 10 are, therefore, twofold. percent per annum over the whole Plan To what extent can Botswana continue to period, and maintained growth of 6.7 generate growth by increasing government percent in 2008/9, apparently unaffected expenditure (given the expected decline in by the collapse of mining in the final diamond revenues after the end of NDP 10)? quarter; And, how can the Government further promote private sector investment as a more • A decline in real terms in sustainable engine of growth? investment, as measured by Gross Fixed Capital Formation (GFCF) in the first half of NDP 9. Far from moving towards the Vision Goal Strategy for NDP 10 2016 target of 40 percent of GDP, its share

9.10 Government will give the highest fell from 25.9 percent to 22.3 percent priority to private sector development and between 2002/03 and 2006/07, recovering economic diversification to attain rapid slightly to 25 percent in 2007/08. One economic growth. Given the overwhelming possible reason for low rates of investment, importance of reducing the dependence of especially foreign investment, is that, until the economy on the minerals sector in recently, there was a mixed performance on general, and diamonds in particular, growth "doing business" in Botswana. According to must be accelerated to achieve Vision 2016 the World Bank Doing Business Report, objectives. Botswana’s position fell from 44th place to 51st place between 2005 and 2007, recovering, however, to 38th place in 2008 as 132

9.11 NDP 10 represents a watershed South Africa, importing P27.4 billion worth opportunity in terms of achieving Vision of goods and services per annum in 2007, 2016 goals, with the economy needing to and P38.4 billion in 2008. All major transform from being public sector-led, to projects, public and private, should be being private sector-led. In light of the unbundled and analysed as to their ability to anticipated decline in mining revenues over generate beneficiation, sub-contract work, the long term, the future success of the maintenance and outsourcing opportunities. country is linked to its ability to identify and Projects for possible execution through PPP develop new engines of growth in the will be identified. All project imported current Plan period. This Goal strategy, consumables, together with projected NDP therefore, outlines the road-map through 10 public and major private sector imports, which the Government will, in partnership will be aggregated and the ability to develop with all relevant stakeholders, more local, sustainable supply enterprises effectively promote private sector assessed. development in the next seven years. The Goal strategy highlights the following elements: Creating a Focal Point for Fast Tracking Major Private Sector Project Implementation Removing Impediments, and Providing Incentives for Private Sector Growth 9.14 A focal point for the receipt of new private sector project proposals, based on existing institutions, will be set up as a cross

9.12 Given advances in democracy and sectoral network for the review and fast stability generally in the region, which tracking of the implementation, monitoring previously were Botswana’s differentiators, and evaluation of accepted projects. its distance from ports, landlocked status and competition within the region, do not make Botswana a natural destination of Capacity Building Strategy choice for “doing business.” Therefore, during the early stages of NDP 10, there must be concerted and deliberate efforts to 9.15 Competent and skilled personnel are remove all impediments to, and to provide required to implement, monitor and evaluate incentives for, private sector investment, NDP 10, considering the ambitious targets growth and exports. To achieve the goals for and programmes which are being proposed. NDP 10, all sectors are expected to remove, It will be prudent that the Public Service is where possible, all impediments to growth well prepared to drive this NDP. The Public and to speed up the implementation of their Service is currently heavy in its lower cadres projects and activities. and light on its professional staffing. This has, by and large, created a socially responsible Public Service, as opposed to a Utilising Botswana’s “Purchasing and facilitating and responsive Public Service Investment Power” for Local Economic (lean, effective and efficient). For NDP 10 Empowerment and Diversification. Programmes to be realised, right-sizing and other public sector reform measures are needed, such that critical areas are well

9.13 Botswana may have a small local resourced, with adequate capacity, without market, but, alongside Angola, it is the increasing the Government wage bill. second biggest customer in the region, after 133 • Batswana consultants and contractors to

9.16 For the private sector, capacity form joint ventures and implement building requires a diverse, but holistic nominated contractors duties for mega approach. The following are identified as projects; being critical in ensuring capacity is not • Reserve certain components of major only built, but is sustained: projects and operations for Batswana. • Registration of consultants and professional accreditation;

9.17 The chapter now proceeds to review • Public-private sector Human Resource the sectors that will be key to the achievement Development fund; of sustainable economic growth during NDP 10. • Outreach capacity and capability development for the private sector; • Entrepreneurial development; SECTOR: FINANCE AND BANKING INTRODUCTION environment for the development of a strong financial sector. The favourable

9.18 The financial sector, in broad terms, environment led to the establishment of a is composed of the banking and the non- central bank (the Bank of Botswana) in banking financial institutions, including the 1975. This culminated in a number of statutory financial institutions, such as the commercial banks, insurance companies, National Development Bank (NDB), pension funds, asset managers and established by Government. In Botswana, as investment banks, establishing businesses in in other countries, the banking and non- Botswana over the last 30 years. The banking financial institutions perform two establishment of the Botswana Stock crucial functions. Firstly, they provide a Exchange (BSE) in 1989 and the Botswana means for effecting payments for International Financial Services Centre transactions so that individuals or (IFSC) in 2002 deepened the financial institutions can buy or sell goods and system further. services. Secondly, the financial sector mobilises savings, and channels them to households and businesses, for consumption, 9.20 During NDP 10, it will be necessary housing, business investment and working to facilitate growth of the financial sector to capital. support the expanding and more

9.19 Over the last decade, Botswana has sophisticated needs of the economy. This emerged as an important financial hub in the should include growing competition; southern African region. Its financial enhancing access to private and public environment has embraced international sector finance by the wider community, trends in deregulation, liberalisation and including small and medium scale globalisation of financial markets. The enterprises and the rural population; and country’s steady economic growth, since the promotion of financial innovation to support development of its minerals industry in the niche markets. Other elements of the early seventies, created a favourable NDP 10 strategy entail sustaining capital 134 market development; implementation of the relationships, through the provision of privatisation policy with respect to finance, infrastructure and payments development finance institutions; continuing processes. To sustain its contribution to the improvements in the payment and settlement development of the economy, there was process to enhance efficiency and cost need for adaptation of prudential regulations effectiveness of remittances; curtailing to foster sound and safe banking practices, opportunities for fraud and money market integrity and an efficient financial laundering; and continuing review of system. At the same time, efforts were relevant legislation and the supervisory directed at combating money laundering and infrastructure to align it with both domestic the financing of terrorism. The strategy also and global developments. recognised the importance of service quality and delivery and disclosure of bank tariffs, in the context of changes in banking

9.21 In its intermediation role comprising infrastructure, technological improvements the assessment, price determination and and internationalisation of financial management of financial risks, the financial services. It was envisaged that modern system is critical in sustaining economic technology would be harnessed to overcome growth. Financial sector development the access constraints and costs associated expands options for financial saving, with the physical presence of banks. productive use of financial resources and innovations with respect to payments and transfer of funds. In performing these roles, Regulatory and Supervisory continuing efficiency, soundness and Developments in NDP 9 stability of the financial sector supports macroeconomic stability, economic growth and development. The activities of the 9.23 The main objective for supervising financial sector, however, entail a risk of and regulating financial institutions is to loss of savings and system-wide instability focus their operations and performance on that can disrupt both macroeconomic continuing soundness and to limit systemic stability and economic performance. risk. This protects depositors and the Therefore, the development of the financial integrity of the financial system. The sector should be supported by improvements supervisory framework establishes standards and adaptation of the regulatory and to ensure that the financial system is supervisory framework to mitigate risks of adequately resourced to meet its obligations instability. The Ministry of Finance and and to minimise the probability of failure, Development Planning (MFDP) plays an thereby promoting confidence in the important role in underpinning the operation system. With reference to banks, in 2000 the of the financial sector, and in mobilising Bank of Botswana (BOB) switched from the finance for public expenditure. full scale, long-cycle, on-site examinations supervisory approach to a continuous risk- based approach. The risk-based supervisory REVIEW OF NDP 9 approach seeks to prioritise the allocation of supervisory resources and the intensity of

9.22 The financial sector strategy in their use based on the risk profile of the NDP 9 emphasised the importance of the institution. This combines both off-site and continuing stability and adaptability of the on-site supervisory approaches to evaluate financial sector in meeting the evolving the condition of licensed financial needs of the economy and global institutions, as well as taking supervisory remedial measures proportionate to their 135 inherent risks. However, the limitations with standards, it is developing rapidly. A respect to supervisory action for the competitive licensing policy has continued development finance institutions constrained during NDP 9. New banks are welcomed to the possible improvements in efficiency that improve competition in the provision of could follow. Nevertheless, from a banking services to the public. Two developmental perspective, limiting additional banks were licensed during supervisory action in respect of these NDP 9, bringing the total to seven. institutions could be important as the However, the biggest three banks have Government may choose to allow approximately 80 percent market share. As continuation of services where there is at December 2008, commercial banks market failure. In such circumstances, operated 84 branches and sub-branches, with however, there is need for such support to be 5 agencies and shared a total of 360 ATMs, explicit and targeted. including 81 mini-ATMs, compared to 65 branches and sub-branches, 11 agencies and 155 ATMs, including 30 mini-ATMs, in Financial Sector Structural and 2003. Commercial banks continue to Institutional Developments during NDP 9 diversify their products and expand the range of services. These include credit

9.24 The range of financial sector facilities, expansion of credit card services, institutions, infrastructure and services growth in internet and cell phone banking, expanded significantly during NDP 9. This as well as bank insurance through was due to a combination of market demand, acquisition of shareholding in life assurance competition, policy initiatives and companies. technological innovations with respect to both operations and payments processes. 9.26 Commercial bank deposits increased by 300 percent, from P10 billion to P40 billion between 2003 and 2009, with a Banking System particularly rapid accretion in the period 2006 to 2009. Commercial bank credit grew at a much lower rate (Chart 9.1).

9.25 Even though Botswana’s banking sector is relatively small by international 136 Chart 9.1: Commercial Bank Deposits and Credit Extended 40000 35000 30000 P(Million) 25000 20000 15000 10000 5000 0 2003 Apr Jul Oct 2004 Apr Jul Oct 2005 Apr Jul Oct 2006 Apr Jul Oct 2007 Apr Jul Oct 2008 Apr Jul Oct 2009 Commercial Bank Deposits Commercial Bank Credit Source: Commercial Banks.

9.27 As a way of countering fraud and criminalised fraudulent activities pertaining to contributing towards the global efforts to the payments system. combat money laundering and the financing of terrorism, the banking sector adopted a Know-Your-Customer approach. Banks Money and Capital Markets endeavour to gather relevant personal and residence information of customers, as well as to undertake appropriate monitoring of 9.29 During NDP 9, the BOB continued transactions. Legislation on anti-money to focus on improving the functioning of the laundering and combating the financing of money market to enhance its role in the terrorism has been enacted to support these implementation of monetary policy, while processes. also aiming to reduce the cost of monetary operations. BOB engaged the commercial banks to ensure a symmetric and adequate

9.28 National Clearance and Settlement magnitude of response of deposit and Systems legislation was enacted in 2003, and lending interest rates to monetary policy related regulations promulgated, which changes. At the beginning of 2006, non- served to establish a modern regulatory and banks were excluded from holding Bank of institutional framework for the payments Botswana Certificates (BoBCs), which gave system. The law clearly distinguishes the rise to a surge in commercial bank deposits functions of the BOB and those of the (Chart 9.1). The BoBCs are now used as a commercial banks regarding the provision of short-term instrument for monetary settlement and clearing services. To foster operations, rather than as an investment confidence in, and maintain stability of the vehicle. This action provided scope for national payments system, the law development of appropriate investment instruments to match the funds released 137 from BoBCs. Furthermore, to alleviate the Public Debt Service Fund (PDSF), which burden and cost of monetary operations in has been the Government’s direct lending regulating credit growth, the statutory window, mainly to parastatals. This reserve requirement for commercial banks involved the purchase by DPCF of 72 was increased from 3.25 percent to 5 percent outstanding PDSF loans and the issuance of in 2006. bonds comprising seven different maturities ranging from 3 years to 21 years, with a total par value of P1 billion. Against this

9.30 NDP 9 also emphasised the background, as of March 2008, government importance of developing the capital bonds listed on the BSE amounted to P1.9 markets and their role in the mobilisation billion, commercial banks’ bonds totalled and allocation of long-term financial P990 million, the DPCF’s bonds stood at resources. The strategy was aimed at P830 million, while for both the financial broadening and deepening, as well as and non-financial parastatals, the value of improving the liquidity of, the capital bonds outstanding was P350 million. Other market. A developed capital market would private companies had listed bonds enhance access to long-term financial amounting to P200 million. resources for the development of private and public infrastructure, as well as supporting enterprise and business development. The Botswana Stock Exchange (BSE) Government supported the development of the capital markets through participation in 9.32 T`he increase in long-term funds, institutional development and promulgation along with the flotation of shares and bonds of appropriate statutes to achieve orderly by corporations, served to maintain the development and adequate supervision and development of the BSE during NDP 9. The regulation. Furthermore, the issue of bonds instruments issued and traded on the BSE, by Government in 2003 of 2, 5 and 12 year which include corporate equity and debt maturities, for a total value of P2.5 billion, issues, as well as government bonds, have provided a benchmark price for private distinct characteristics pertaining to risk, issues, as well as a potential increase in return, liquidity and maturity compared to liquidity. This was followed in 2008 by commercial bank loans. This enhances the establishment of a regular (six-monthly) potential to match the preferences of savers government debt issuance programme, with and investors. To further improve the capital maturities ranging from 6-month Treasury market’s effectiveness and role in enterprise Bills to 10-year bonds. When fully issued, and economic development, the relevant the programme is envisaged to amount to P5 legislation was reviewed and updated to billion. strengthen the institutional and legislative framework, while the administrative

9.31 In 2004, Debt Participation Capital structures were also improved. Funding (DPCF) (Pty) LTD was established to facilitate the securitisation of much of the 138 Chart 9.2: Botswana Stock Exchange Domestic Companies Index 10000 9000 8000 7000 June 1989=100 6000 5000 4000 3000 2000 1000 0 2003 Apr Jul Oct 2004 Apr Jul Oct 2005 Apr Jul Oct 2006 Apr Jul Oct 2007 Apr Jul Oct 2008 Apr Jul Oct 2009 Apr Jul Source: Botswana Stock Exchange.

9.33 The market capitalisation of the BSE certificates and improves the clearing and grew rapidly during NDP 9, mostly settlement system process for bonds and reflecting healthy performance of the equity. banking sector, which accounts for over 60 percent of market capitalisation. Market Collective Investment Undertakings capitalisation for domestic listed companies (CIUs) on the BSE grew from P9.4 billion in December 2003 to P26.9 billion in 9.34 Related to the stock exchange and December 2008. The BSE Domestic Index access to long-term investment opportunities increased from 2,499 to just under 7,036 is the role of collective investments or unit during the same period, decreasing from a trusts, regulated under the Collective high of just under 10,000 in mid-2007 Investment Undertaking (CIU) Act, 1999. because of the global financial crisis (Chart These unit trusts allow for the pooling of 9.2). However, stock market activity risks of relatively small investor funds, continues to be hampered by low levels of whose owners would not otherwise be able liquidity, with “buy and hold” institutional to invest easily in shares and bonds, or to investors accounting for 90 percent of the reduce risk by owning a spread of investor base, and a limited free float, which investments. Thus, they are an alternative is only 40 percent of total market investment instrument, particularly well- capitalisation. Another constraint relates to suited for small-scale savers, which facilitate the low level of development of the the allocation of investment funds to processing and back-office infrastructure. productive activity. As at the end of To improve the efficiency of its operations, December 2008, there were four companies, the BSE introduced a paperless Central licensed under Section 12 of the CIU Act, Securities Depository in 2008, which managing 14 funds valued at P4.5 billion. In expedites the process of obtaining share addition, there are twenty one externally 139 licensed funds, which market their activities have also been drafted for the supervision of in Botswana. international banking. International Financial Service Centre Insurance Sector and Pension Funds (IFSC)

9.36 Both the insurance and pensions

9.35 During NDP 9, the IFSC achieved sectors play important roles in facilitating varying levels of success in the key areas long-term savings and mitigating risk. They into which it attracts investment. These also support infrastructure development and include investment funds, in which growth in productive capacity by investing approximately USD2 billion is currently funds in long-term ventures. An important under management by various IFSC development during NDP 9 was growth in companies, and the business process retirement funds, including the outsourcing and call centres, where there are establishment of the Public Officers Pension 10 operators in the fields of finance, Fund, and the change from a defined benefit telemarketing, debt collection, funds pension scheme to a defined contribution administration and customer scheme by several employers, including service. Overall, as at December 2007 for Government. This framework minimises the which the latest figures are available, there contingent liability of the employer and its were 37 companies accredited to the IFSC, effect on future financial performance. out of which 19 were fully operational, an increase from seven in 2003. The total 9.37 Largely as a result of the capital of the operating IFSC companies was Government’s initiative in establishing the in excess of USD530 million (about P3.7 Public Officers Pension Fund initiative, total billion as at December 2008), with the assets of pension funds grew from P9.2 majority providing finance and billion in 2002 to a peak of nearly P35 administration functions to subsidiaries in billion in July 2008 (Chart 9.3). It then fell 14 African countries. Regulatory oversight to P28.3 billion at the end of 2008, as a was also strengthened for other activities result of the global financial crisis. While and involved the formulation, in 2007, of households continue to be net borrowers at international insurance regulations to commercial banks, they are net savers at a support the administration of the relatively high level when pension funds International Insurance Act, 2005. Specific (most of which are compulsory savings) are regulations for banks accredited to the IFSC, included. under the purview of the Banking Act 1995, 140 Chart 9.3: Pension Fund Total Assets 40000 35000 30000 25000 P Million 20000 15000 10000 5000 0 2003 Sep 2004 Sep 2005 Mar May Jul Sep Nov 2006 Mar May Jul Sep Nov 2007 Mar May Jul Sep Nov 2008 Mar May Jul Sep Nov 2009 Mar Note: Pension funds are limited by law to investing no more than 70 percent offshore. Source: Ministry of Finance and Development Planning and Non-Bank Financial Institutes Regulatory Authority

9.38 The insurance sector continues to insurance products will also be developed play a crucial role in the maintenance of a under the auspices of the IFSC. stable economic environment. As a risk transfer mechanism, the insurance sector 9.39 The growth in long-term funds, allows release of funds for capital however, posed a challenge for the development and structured savings. From insurance and pensions sectors in terms of 1997 to 2008, the assets of the industry grew finding similarly structured long-term from P780 million to P13.3 billion, with the investment opportunities locally. Despite number of insurers growing from four to 16, this, in the period from 2007 to 2008, the and the number of insurance brokers proportion of total assets allocated to growing from 18 to 36. In addition, the offshore investment by pension funds fell number of corporate insurance agents grew slightly from 61 percent to 60 percent. from 75 to 149 over the same period. Equally, the share of equity investment in Insurance services provided under the IFSC total assets by the pension industry fell from have been made possible through the 68.1 percent to 63.9 percent in the same enactment of the International Insurance Act period. Both were probably caused by the of 2005. This was initially intended to cater fall in share prices in 2008. This illustrated for captive insurance services. This has, the risk of a disruptive asset price correction. however, been extended to include all For example, the Domestic Companies classes of insurance, although the main Index declined from 9,866 in August in focus will remain on captive insurance and 2007, to 6,460 in March 2009, a 35 percent reinsurance services. The provision of life reduction. However, pension fund 141 investments are mostly long-term, and both Botswana Export Credit Insurance and the domestic and overseas markets began to Guarantee Company (Pty) Ltd, were recover in 2009. Among the government identified for privatisation. Subsequently, initiatives that provide investment options proposals for privatisation were articulated for long-term retirement and insurance funds in the Privatisation Master Plan published in are government bonds, which were first 2005. However, none had been privatised by issued in 2003, and public-private the end of NDP 9. partnerships (PPP) for the development of infrastructure, such as office buildings, 9.42 While the BSB has the capacity to initiated in 2007. mobilise savings through a nationwide network, the ability to expand its lending portfolio was constrained. In contrast, NDB

9.40 The Non-Bank Financial Institutions had the capacity to engage in long-term Regulatory Authority (NBFIRA) Act was lending operations, but its capacity to promulgated in 2007, leading to the generate financial resources was limited. A establishment of an authority to oversee the feasibility study explored a merger option. regulation and soundness of non-bank However, it concluded that there would be institutions operating in both the money and no sustainable benefits arising from the capital markets. These include asset merger of the two institutions. Consultations managers, collective investment are, therefore, ongoing between the Public undertakings, the insurance and pensions Enterprises Evaluation and Privatisation industries, the stock exchange and micro Agency (PEEPA) and NDB on the lenders. The legislation establishes development of a privatisation strategy for mechanisms for resolution of disputes the bank. For BSB, a detailed study will be between Non-Bank Financial Institutions conducted on its rationalisation prior to any (NBFIs) and their customers. It also gives further action in privatising the institution. the NBFIRA the authority to oversee activities of the currently unregulated industry participants. This primary Financial Intelligence Agency and Anti- legislation for NBFIs will impact on the Money Laundering other pieces of legislation, such as the Insurance Industry Act and the International 9.43 Botswana continues to pay special Insurance Act, together with the attendant attention to the prevention of money regulations. laundering and financing of terrorism. In addition to various pieces of legislation which criminalise any conduct that forms or Development Finance Institutions (DFIs) is associated with the act of money laundering, Government has pledged its

9.41 In 2000, consistent with the support to combat money laundering commitment to implement economic through the ratification of various reforms, Government adopted a conventions and signing of regional Privatisation Policy for Botswana. This agreements with neighbouring states. aimed at improving public service delivery through an increased role for the private sector and reduced provision of marketable 9.44 A strategy has been formulated to goods and services by the public sector. As a guide the implementation of anti-money result, a number of the DFIs, including the laundering and combating the financing of National Development Bank (NDB), terrorism systems that meet international Botswana Savings Bank (BSB) and standards. Legislation is being enacted to 142 establish a Financial Intelligence Agency, Government. Revenue and expenditure which will be responsible for requesting, recording and financial reporting functions receiving, analysing and disseminating are still under the central control of the financial information to investigatory and Office of the Accountant General. A single supervisory authorities. treasury bank account is maintained. Public Finance Management 9.49 Key challenges facing government accounting include: (i) the revision of the

9.45 The planning and budget system has Finance and Audit Act; (ii) possible served Botswana well and has enabled the conversion to multi-year programme and prudent management of rapidly growing performance based budgeting; (iii) retention revenues over several decades. New of qualified professional staff; (iv) staff challenges are emerging, however, including training; (v) incorporation of the central the need for a greater focus on value-for- procurement staff into the functions and money, efficiency and effectiveness in the organisation of the Office of the Accountant expenditure of public revenue. General; (vi) establishing ownership at line Ministries for management of their fiduciary risk and responsibilities; and (vii) possible

9.46 The annual budget system remains introduction of accrual accounting concepts. incremental and input oriented; but within this framework, new features have been introduced, such as fiscal rules on the total 9.50 Auditing is largely up-to-date; and size of spending to GDP, the ratio between performance auditing, focused on economy recurrent and development spending, and the and efficiency, has been introduced. Audit use of mining revenues solely for investment reports are publicly available and the (including recurrent expenditure on Parliamentary Public Accounts Committee education, training and health). (PAC) reviews and presents resolutions on audit reports. PAC meetings are not open to the public or press, but plans are afoot to

9.47 To support change and reform, address this. Even though the Auditor MFDP has recently been reorganised. The General is not in all cases the appointed new Ministry is adjusting to changes in the auditor of parastatals, salient features of coordination of policies and programmes, in audit reports are also summarised in the the form of the Government Implementation Auditor General’s annual report tabled in Coordination Office (GICO). Parliament. The Office also introduced a software programme in support of the

9.48 Significant benefits in terms of management of the audit process and work financial control, access to management papers. information, expediting of processes, and statutory financial reporting have been realised since 2005, with the implementation STRATEGIES FOR NDP 10 of GABS, the new integrated financial management system of the Government. The 9.51 To contribute to the Vision 2016 system has been centrally implemented and goals and ideals, the financial sector strategy rolled-out to headquarters of all line for the NDP 10 will involve the following Ministries in Gaborone. Next phases will aspects, in line with the findings of the include further roll-out to district offices of Financial Sector Assessment Programme the line Ministries, and also to Local 143 undertaken jointly with the IMF and the • The cost and quality of services; World Bank in 2007: • Enhancing access to banking services by • A financial services and access policy the general public; that encourages economic and social • Improving financial and economic inclusion; literacy; • Development of a range of • Curtailing opportunities for financial instruments that harness existing fraud. financial resources for productive use in a wide range of sectors and across the 9.53 It is expected that these challenges community; will change as alternative financial instruments and investment channels are • Adaptation of global innovations, e.g., developed and the macroeconomic technology embodied in payments and environment continues to facilitate growth settlement processes, including currency of bankable projects/enterprises. In part, this concepts and designs, and evolving will be achieved by continuing emphasis on business arrangements for the delivery a market based supply of services and of services; further reduction of the role of government • Attention to the opportunities and risks in the provision of financial services that are of regional and global trade in competition with the private sector. arrangements, such as SADC protocols, Economic Partnership Agreements (EPAs) and World Trade Organisation 9.54 Improvements in banking support for (WTO) negotiations; enterprise development and expanding economic activity during NDP 10 will, • Update of legislation and supervisory therefore, be fostered by maintaining the and regulatory developments to sustain competitive posture of the licensing policy financial stability and afford consumer for banks and embracing the establishment protection; of specialised and localised • Enforcement of disclosure requirements institutions. Moreover, the licensing policy in compliance with applicable reporting will continue to accommodate and standards for financial institutions and to encourage ownership of banks by citizens to facilitate public understanding of the extent that they meet the “fit and proper” financial products and costs; and, test and other licensing criteria. Encouraging diversity and the geographical spread of • Reduction of opportunities for fraud, financial institutions expands the nation’s money laundering and the financing of capacity for the productive use of resources terrorism. across income levels and localities. This development, afforded by competition and enhanced financial literacy, potentially Financial Sector Challenges and Policy reduces the need for government assistance Initiatives by way of specialised lending institutions/funds and low cost, subsidised

9.52 The challenges relating to the finance. performance of the banking sector in supporting economic activity continue to be: • Ensuring the productive employment of 9.55 Market development and planned abundant liquidity in the system; privatisation of DFIs also provide scope for 144 cooperatives, and a role for new or existing 9.57 During NDP 10, Government will commercial banks to take over the activities continue to develop its bond issuance of financial parastatals as they are strategy, which will be aligned to its commercialised. These developments should development programmes. The rationale for ensure orderly structural changes and the the strategy is to provide Government with maintenance of access to financial immediate funds as and when deemed services. The role of subsidised lending by necessary. The strategy will facilitate the the Citizen Entrepreneurial Development development of a yield curve for other Agency (CEDA) will continually be participants in the domestic capital market. reviewed in relation to its impact on Moreover, a sustained issuance of debt productivity and the failure rate of supported instruments by parastatals will be beneficial businesses, the financial implications for the in terms of absorption of liquidity from the Government and private financial financial system, while contributing to the institutions. Furthermore, CEDA will be diversification and efficient pricing of closely aligned to the enterprise financial resources. There is also scope for development and mentoring support the flotation of shares and an increase in provided by the Local Enterprise Authority capital market activity associated with (LEA). It is anticipated that the mechanisms privatisation of public enterprises. initiated by LEA, to link emerging small, micro and medium enterprises to services of the private financial institutions, will International Financial Services (IFSC) provide a platform for a transition from subsidised finance to normal commercial 9.58 The IFSC is potentially beneficial to finance. the domestic financial sector, in facilitating enhanced business support activities, skills development and engendering a positive Capital Markets perception of the state of the financial sector. This could contribute to attracting

9.56 The challenge, during NDP, 10 will internationally oriented businesses. Given be to develop the legal framework, the limited success in realising its objectives institutions and supportive policies needed thus far, a strategic review of the IFSC will to enhance the depth and liquidity of be necessary during NDP 10. It will need to markets. These should provide a wider range identify ways to raise its profile and of financial instruments for savers and intensify its focus on attracting large different types of financing for borrowers. reputable companies. This will involve Against this background, the existence of working with the public sector and other domestic private and public sector service providers to alleviate operational development actors presents opportunities constraints, including service licensing for further development of the capital processes, cost of telecommunications, market, in particular to satisfy the appetite accessibility and connectivity of cross- for long-term investments by the retirement border services, and availability of skills. As funds. Market players will need to promote a envisaged in NDP 9, work is also ongoing to vibrant capital market through the issue of consolidate the regulation of the IFSC. debt instruments, such as bonds, securitised products or commercial paper. 145 Insurance and Pension Funds serve to attract additional domestic and foreign investors, as the settlement and

9.59 The insurance industry registered clearing standards used will be significant expansion during NDP 9, but in internationally recognised. Furthermore, a an environment of sub-optimal supervision, sufficiently developed trading and especially relating to market conduct processing infrastructure will enable the regulation. The industry has, therefore, been introduction of additional products in the brought under the regulatory ambit of the stock exchange, such as third party NBFIRA, which should redress the potential depository receipts, which could be in the reputation risk, which could have an adverse form of exchange traded funds or index impact on future growth of the industry and funds. disrupt the provision of essential services. The Pensions and Provident Funds Act, Enhancing Financial Infrastructure to which dates back to 1987, will be revised in Support Financial Markets and order to address weaknesses in the current Institutions legislation and to align it with the NBFIRA regulatory framework.

9.62 Government and other stakeholders, including the regulatory authorities, must Botswana Stock Exchange focus their efforts on developing and enhancing the institutional framework and

9.60 BSE Listing Rules and Member regulatory oversight of the financial Rules need updating. They should capture system. Prudential regulation and the activities of asset managers, pension supervision of the financial system is crucial fund administrators and financial advisors in maintaining stability of the financial that currently play an important role in the sector. To be effective in intermediation and NBFI sector, but are not covered by the facilitating payments, it is important that the existing legal, regulatory and supervisory financial sector sustains public confidence, framework. In addition, to address the afforded by both the framework for prevailing regulatory weaknesses, a new prudential regulation and the efficiency of Securities legislation will be enacted during the sector. The various regulatory agencies, NDP 10 in place of the BSE Act. It is in particular the BOB and the NBFIRA, envisaged that this will facilitate changing will, individually and in collaboration, BSE from a statutory body to a company, ensure maintenance of a robust supervisory paving the way for changes to the framework for financial stability. The risk- governance structure and possible future based approach to supervision of financial demutualisation of the Exchange. institutions will be strengthened during NDP 10.

9.61 As a further development, the Stock Exchange will introduce an automated trading system (ATS), which will help raise Access to Finance the operations of the Exchange to be at par with more developed markets. Use of the 9.63 In the past, Government has tended central securities depository and the ATS to concentrate on macroeconomic stability would, in addition, enhance transparency to improve efficiency and sustainability in and create an even playing field for the financial sector, rather than focusing on investors. These developments will creating incentives for private sector contribute to an increase in liquidity and financial institutions to widen access to the rest of the population. The challenge for 146 policy during NDP 10 is to align efforts standardisation of processes and other aimed at macro level reforms with strategies approaches towards a secure and efficient to improve access to financial services for cross-border payments environment. In the poor. Emphasis should be placed on particular, the national payments system will removing barriers (e.g., the high cost of be aligned to the SADC payments initiative. operating banking services in rural areas) to 9.66 Developments in the payment and wider formal sector provision and creating settlement systems will include the incentives for private sector financial introduction of cheque imaging and institutions. There should be significant truncation; an increase in the use of improvement in access to finance if the transportable plastic based payment Vision 2016 policy objectives of reducing instruments; expanded use of mobile poverty and building a more inclusive telephone banking technology for payment society and economy are to be achieved. The systems and services; enhancing the security objective should be to make it easier for of the payments and settlement systems; and people and small and medium enterprises to continuous review of supporting legislation. borrow and to improve the availability of various other financial products and services to low income households. Unregulated Financial Activities and Public Education

9.64 Government will create an enabling environment for financial sector

9.67 It is recognised that there is potential development by putting in place appropriate for the proliferation of micro lenders. regulatory structures that promote more Unregulated, these can increase household competition, allow space for innovation, indebtedness to unsustainable levels, with an improve consumer education and adverse impact on living standards, while infrastructure, and facilitate entry and exit to also increasing information asymmetries vis- the market and institutional growth. à-vis the formal financial sector. In turn, Government will also use its own economic limited information on the state of both position to leverage change by encouraging individual and broad household sector financial innovation, e.g., by moving to indebtedness impairs the assessment of debt smartcard based payments systems and by service capability, which can have a providing improved and timely data. negative effect on the asset quality of the formal financial sector. The pooling of debt National Payments and Settlements information by the banks, which was System formalised in 2007, and the proposed framework for the regulation of micro

9.65 The payments and settlement lenders will, to some extent, mitigate these framework is a systemically important risks. Overall, there will be a need during element of banking and finance operations. NDP 10 for the development of a consumer There is a need to be adaptable in terms of protection framework that strengthens both the capability to meet the expanding information disclosure and consumer needs of the economy and to insulate it awareness, as well as availing opportunities against opportunities for fraud. The BOB for redress. There will also be a requirement will, therefore, continue to spearhead the for aspects of consumer awareness and modernisation of the national currency and mechanisms for redress to focus on other payments systems. It will collaborate responses to aggressive competitive with other regulators in facilitating marketing of risky financial products, including personal credit and insurance. 147

9.68 Among the relevant considerations and issues that require concerted public SUMMARY OF PROGRAMMES awareness campaigns are: • Knowledge of financial instruments 9.71 Most of the above strategies will be (alternative saving and borrowing implemented by the private sector. channels) and the associated benefits and Government will will support and underpin risks; to the sector through its programmes dealing with economic policy and planning, and • Legitimate service expectations and accounting, revenue and expenditure costs; administration. • Obligations of financial institutions to their customers; Economic Policy and Planning • Management of personal finance; Programme • Business-personal finance 9.72 This programme deals with the coordination/separation for small, micro strategies for economic policy and planning. and medium-scale enterprises; and, It considers the activities and initiatives to • Detection of counterfeit currency and be pursued during NDP 10 with respect to identification of unauthorised and Macroeconomic Planning, Private Sector fraudulent activities. Development, Coordination of Economic Diversification, Management of

9.69 Sustained focus on these issues is Employment Policies/Strategies, important in facilitating financial inclusion Coordination of Citizen Economic of the broader community, soundness of the Empowerment, Population and industry, productive use of financial Development Coordination, Taxation Policy resources and continuing confidence in both Management, Public Enterprise the payments and the broader financial Management, Financial Legislation and system. Policy and National Statistics and Data Management. Crisis Management and Safety Nets for Financial Stability Accounting, Revenue and Expenditure

9.70 Two critical institutional Administration Programme arrangements were to be considered during 9.73 This programme deals with the the course of the NDP 9 period. One is a activities to be pursued for accounting, national contingency plan for handling revenue and expenditure administration. It financial sector crises; and the other is a considers the initiatives to be pursued funded and credible limited deposit during NDP 10 with respect to effective protection scheme targeting small savers. Revenue Administration, Customs Control The regulatory agencies, in particular the and Management, Budget Management, BOB and NBFIRA, will institute formal Development Programme Coordination, arrangements, encompassing critical steps Public Sector Accounting and Procurement and allocation of responsibilities, for Policies and Standards, Internal Auditing managing a crisis situation. The overall aim and Corporate Support Services. is to facilitate a timely and coordinated response that reassures the market and provides for equitable redress. 148 SECTOR: TRADE AND INDUSTRY INTRODUCTION

9.74 Botswana has sustained high levels ability to attract investment, both foreign of diamond export-led growth since and local, have been mixed over the past Independence, with Government NDP period. This will be addressed during expenditure of diamond revenues driving the early stages of NDP 10. private sector growth. However, given the expected decline in diamond revenues referred to in Chart 5.1 of this Plan, this REVIEW OF NDP 9 development scenario is not sustainable in the long term. Export Orientation and Competitiveness

9.75 For many years, Government has Trade Policy provided a private sector investment- friendly environment in order to foster 9.77 MTI, in its quest to create a private sector participation in economic predictable and stable business environment, diversification and growth. In line with this will implement a new Trade Policy. The policy, Botswana’s NDPs have, over the initial Draft Trade Policy was discussed with years, emphasised “What Government needs stakeholders, and their contributions were to do in order for the private sector to incorporated into the draft policy. The Draft deliver on its mandate.” Government has, in Trade Policy was approved by Cabinet in recent years, expressed concern that this has mid 2009, and will be presented to not achieved the desired result and that Parliament in November 2009. instead of “Private sector-led economic growth”, Botswana’s reality is “Government-led economic growth”. The Private Sector Development Strategy future success of the country is linked to its ability to identify and develop new engines 9.78 The Botswana Confederation of of growth. Commerce, Industry and Manpower

9.76 The Ministry of Trade and Industry’s (BOCCIM), in consultation with its (MTI) mandate is to provide a conducive stakeholders, formulated a Private Sector environment for investment, business Development Strategy in 2008 (see also growth and economic diversification. This Chapter 5). This has been taken into account includes developing private sector capacity, during the planning process, with the expanding market access for locally required public sector activities that will produced goods and services, and facilitate private sector development strengthening fair trade and business included in the National Plan. practices in pursuit of “A Prosperous, Productive and Innovative Nation”. National Export Strategy Although Botswana has a relatively welcoming investment climate, external 9.79 The Draft National Export Strategy, surveys have identified a number of which has been developed in consultation constraints. Botswana's performance with with the private sector, proposes a number respect to international rankings and its of concrete actions and verifiable measures 149 that are aimed at strengthening Botswana’s on trade and trade-related areas. The DIT export base and diversifying the export serves as the Secretariat to NCTPN. The sector. objectives of the NCTPN and its technical committees are to provide advice on trade policy issues and national negotiating Export Development Programme positions developed by the DIT. Reference centres and National Enquiry points have

9.80 The Botswana Export Development been established. Reference Centres are and Investment Authority (BEDIA) have located at BEDIA, University of Botswana embarked on a programme that can be used and the DIT, while National Enquiry Points to boost export volumes and returns through are located at the Ministry of Agriculture, capacity building initiatives. This Botswana Bureau of Standards (BOBS), programme, known as the Export Registrar of Companies and the Ministry of Development Programme, targets Botswana Communications, Science and Technology. based manufacturing companies that have the capacity or potential to export. The programme aims to assist manufacturers to International Agreements compete in regional and international markets. It is expected that at least 15 9.83 The 2002 Southern African Customs companies will graduate from the Union (SACU) Agreement came into force programme annually. So far, 17 companies in July 2004, following ratification by its are enrolled. five members (Botswana, Lesotho, Namibia, South Africa and Swaziland). Implementation of this Agreement requires International Trade Relations the establishment of institutions to facilitate Capacity Building a more democratic decision making and management process in SACU. These

9.81 During NDP 9, one of the major institutions include National Bodies, a Tariff issues was to increase Botswana’s capacity Board and Tribunal and establishment of a for implementation of regional and Common Negotiating Mechanism. multilateral trade agreements, as well as to Botswana is in the process of establishing its enhance the country’s participation in National Body. There is a first Draft of the international trade negotiations. The ‘Directorate of International Trade Department of International Trade (DIT) Administration Bill, 2009’. The SACU was established in 2003, and has a staff Agreement also provides for the complement of 71 officers. The Department harmonisation of polices including continues to build the capacity to address industrial, agricultural and competition international trade issues, including trade policies. The work on harmonisation of negotiations and implementation of trade industrial policies, and cooperation on agreements, trade policy analysis and export competition policies, has commenced. development. In addition, a full time Chief SACU Member States have been requested Negotiator was appointed and commenced to submit position papers to the SACU work in January 2007. Secretariat outlining the objectives of these policies.

9.82 The National Committee on Trade Policy and Negotiations (NCTPN) was established in February 2004, and is 9.84 A preferential trade agreement supported by twelve technical committees between SACU and the Common Market of 150 the Southern Cone (MERCOSUR) was towards liberalisation of trade in services. signed in 2005. Negotiations on outstanding The mandate of the Ministers under the issues of Rules of Origin, Sanitary and SADC Protocol on Trade requires Member Phyto-Sanitary Measures and Customs States to adopt policies and implement Cooperation were concluded in April 2008, measures in accordance with their and the Agreement was signed in April obligations under the General Agreement on 2009. Implementation of the Agreement is Trade in Services. The process resumed in expected to commence in 2010 after September 2005, with the Draft Annex to completion of the ratification process. the SADC Trade Protocol on services trade Although Botswana continues to record a liberalisation upgraded to a stand alone negative trade balance with MERCOSUR protocol, to reflect the growing importance (P134.4 million in 2006, P171.3 million in of trade in services in the SADC region. The 2007), the statistics reflects growth in export Draft Protocol was approved by Ministers of trade. Exports from Botswana to the Trade and submitted to the Ministers of MERCOSUR region grew by 56 percent Justice for consideration and legal clearance from 2006 to 2007, and by 75 percent from at the end of July 2009. 2007 to 2008. This indicates that, with the implementation of the Agreement, there is 9.88 The negotiations for a Preferential potential for further growth in exports to Trade Agreement between SACU and India MERCOSUR. were launched in 2007. To date, three rounds of negotiations have been conducted, resulting in a Memorandum of

9.85 The negotiations for a Free Trade Understanding which was signed in Area between SACU and the European Free Trade Association (EFTA) have been November 2008 by the two parties. The concluded. Implementation of the Memorandum details the scope of the Agreement commenced on the 1st May ongoing Preferential Trade Agreement negotiations between the two parties. 2008, after completion of the ratification process by all the Member States. African Growth and Opportunity Act

9.86 The Southern African Development Community (SADC) Protocol on Trade was 9.89 In 2004, the African Growth and launched in 2000 and has brought about Opportunity Act (AGOA) of the United progressive liberalisation of trade States of America (USA) was extended to throughout NDP 9. It has led to the 2015. Likewise, the Least Developed establishment in August 2008 of a Free Country (LDC) provisions that allow Trade Area (FTA) in the region. The FTA is Botswana to utilise third country fabrics expected to pave the way for the formation were extended, but only to 2012. Botswana, of the SADC Customs Union in 2010, the together with other African beneficiary SADC Common Market in 2015 and the countries, has requested the USA to extend SADC Monetary Union in 2016, as this provision indefinitely. stipulated in the Regional Indicative Strategic Development Plan. 9.90 The extension of Least Developed Country (LDC) provisions to include

9.87 The process to liberalise trade in Botswana in 2002, resulted in an increase in services within SADC started in 2000 when Botswana exports to the USA between 2003 SADC Ministers of Trade mandated the and 2005 (Chart 9.4). However, due to a SADC Trade Negotiating Forum to work number of factors, including the end of the 151 Multi-Fibre Agreement in 2005, Botswana views on a number of issues. Consequently, experienced a decline when a major exporter the two parties agreed to negotiate a less to the USA discontinued production in early comprehensive Trade, Investment, 2006. Botswana exports under AGOA grew Development and Cooperation Agreement strongly in 2008. The total cumulative value (TIDCA), which will serve to enhance of exports from 2003 was approximately cooperation between the USA and the US$ 364.8 million. members of SACU. Negotiations for a free trade agreement will resume later. The

9.91 In June 2003, SACU and the USA TIDCA was signed in the second half of initiated negotiations for a Free Trade 2008 during the AGOA forum. Agreement. These stalled due to divergent Chart 9.4: Annual Exports under AGOA 120 Value of Exports in US $ (millions) 100 80 60 40 20 ‐ 2003 2004 2005 2006 2007 2008 2009 ( to July) Period Source: Botswana Unified Revenue Service Economic Partnership Agreements initialling of an Interim EPA (IEPA) late in 2007, marking the conclusion of a WTO

9.92 The Economic Partnership compatible trade in goods chapter. The IEPA Agreements (EPAs) negotiations between the was signed in mid 2009. This has enabled African, Caribbean and Pacific (ACP) trade between Botswana and Europe to countries and the European Community (EC) remain uninterrupted. The IEPA offers, were launched in September 2003 to replace among other things, duty free and quota free the trade chapter of the Cotonou Agreement. market access for all products, as well as Botswana participated in the EPA more flexible rules of origin. Negotiations negotiations as a member of the SADC EPA toward a full EPA have been ongoing since Group. The negotiations culminated in the 152 2008, covering investment and trade in China have been deferred pending services and investment. conclusion of the SACU-India negotiations.

9.93 The EPA negotiations have a Investment Policy and Related Issues development component through which assistance would be provided to Botswana Investment Attraction during the 10th European Development Fund (EDF 10). This fund covers the period 2008- 9.96 Since its inception in 1997, BEDIA 2013. Projects identified in the EPA has generated a total of P565 million worth negotiations are implementation focused, of investments (new investments and and include capacity building support for expansions of existing operations), which trade facilitation, standards, trade defence resulted in the creation of 9,314 jobs. P521 mechanisms, rules of origin and private million of investment was generated during sector support. the NDP 9 period, resulting in the creation of 6,744 jobs. In pursuit of a strategic shift World Trade Organisation which emphasises investor targeting, BEDIA undertook studies and investment

9.94 The development oriented Doha promotion missions on leather, glass, beef Round of negotiations at the World Trade and logistics. This has resulted in the Organisation (WTO) was launched in establishment of a tannery which has opened November 2001.The negotiations cover a opportunities for down-streaming value wide range of issues, including agriculture, addition in the leather sector. In addition, an non-agricultural market access, services, investment in float glass has been secured, intellectual property rights, trade, which will be set up as a joint venture facilitation, development and between foreign investors and the Botswana implementation issues. The negotiations Development Corporation (BDC). Both the have experienced significant delays due to tannery and glass projects have been funded divergent positions of the Member States. domestically by the BDC. Rigorous follow The negotiations focused on reaching up is continuing with other companies which agreement on modalities for agriculture and have expressed interest in investing in non-agricultural market access in the last Botswana. two years. Botswana seeks to ensure that the proposed modalities will support industrial Bilateral Investment Treaties development, protect sensitive industries and ensure food security through having 9.97 Bilateral Investment Treaties are common SACU positions on agriculture and important instruments for enhancing non-agricultural market access. investor confidence. They provide investors from each contracting party with guarantees Proposed Negotiations regarding equitable treatment, free transfer of funds subject to payment of taxes, dispute

9.95 The proposed negotiations between settlement mechanisms, and protection SACU and the East African Community against expropriation of investors’ assets by (EAC), as well as between SACU and host governments without due process of the China, have not yet been launched. law. Nine bilateral investment treaties on the Discussions are ongoing with the EAC to reciprocal promotion and protection of pave the way forward for a possible trade investments have been concluded, seven of agreement, while the negotiations with which have been signed with Belgium- Luxemburg, China, Germany, Ghana, 153 Switzerland, Malaysia and Mauritius. The fee. It also provides for decentralising two outstanding bilateral investment treaties the issuance of licences for are those with Egypt and Zimbabwe. manufacturing Small, Medium and Micro Enterprises (SMME) to Local The Regulatory Framework Authorities. Licensing of large scale and complex manufacturing enterprises has

9.98 As part of Government’s on-going remained under MTI. The Act also efforts to remove regulatory impediments to provides for joint venture arrangements investment attraction and business between wholly citizen-owned small and development, the following Acts were medium scale enterprises (SMEs) and processed: non-citizens, provided that the citizens • The new Companies Act, 2003, Act No. retain a minimum of 51 percent 32 of 2004, came into force in July 2007. shareholding. This new piece of legislation is an improvement on the old Act and has Botswana Brand introduced simplified company registration procedures. 9.99 MTI, assisted by BEDIA, has • The Copyright and Neighbouring developed a Botswana Brand, through which Rights Act was amended to protect the Botswana will be differentiated from other copyright of artists, including musicians, countries, and repositioned as a destination poets, writers and architects, against of choice to invest in, to visit and/or to live piracy and infringements. A security in. A Brand Management Organisation has device known as the hologram, which been established to manage the Brand. will be used to distinguish authentic While a Board of Directors has been works from pirated works, has been appointed, the recruitment of the Chief secured. Arrangements are on-going for Executive Officer is on-going and the officer the establishment of a levy that will be is expected to be in place by January 2010. imposed on all imported and locally manufactured blank sound and audio Development of Botswana’s Investment visual carriers, compact discs and any Strategy equipment capable of being used to copy protected works. The levy, which ranges 9.100 The Draft Investment Strategy is from 1-2 percent of cost price, will be being finalised for presentation to Cabinet in used to develop and compensate right late 2009. This will be presented in tandem holders. The Act also provides for the with the National Export Strategy, and these establishment of a Collecting Society will be implemented and monitored by responsible for collecting and BEDIA. distributing royalties to its members. • The review of the Industrial Amendment to the Industrial Property Development Act resulted in the repeal Act and re-enactment of the Industrial Development Act of 2006. The new Act 9.101 To amend the Industrial Property provides for service delivery Act, the Industrial Property (Amendment) improvement, by reducing the time taken Bill was submitted and approved by Cabinet to issue manufacturing licences from one in 2009. The Bill is scheduled for month to one week, and for the issue of presentation to the Parliamentary meeting of manufacturing licenses for an indefinite November 2009. The Act is currently being period, subject to payment of an annual 154 reviewed to ensure that it fully complies passed and 2,968 (31 percent) have failed. with the intellectual property international The majority (70 percent) of the treaties and conventions, including the Trade entrepreneurs, who have applied to LEA, are Related Intellectual Property Rights (TRIPS) yet to start a business; they are classified as agreement to which Botswana is party. pre-startups. A small proportion (13 percent) of current LEA clients operates a business Promotion of SMME and Rural which has existed for more than a year, Industrial Development while 17 percent operate a business that has been in existence for less than a year Establishment of local Enterprise (startups). Authority (LEA)

9.104 About 51 percent of the current

9.102 The Local Enterprise Authority clients are in the agricultural sector, (LEA) stated operating in 2007. Its mandate followed by manufacturing which accounts is to promote a culture of entrepreneurship for 22 percent, with the remaining quarter among Batswana and the sustainable growth shared between services (18 percent) and of the SMME sector. It gave further tourism (9 percent). impetus to the effort to streamline and improve service delivery to Batswana 9.105 LEA has developed 3,013 action entrepreneurs and small businesses. It plans for entrepreneurs currently receiving focuses on the development of SMMEs in LEA pre-start and post-start interventions. agriculture, manufacturing, tourism and These include business planning, monitoring services. and mentoring, credit and finance facilitation, market access and training. On

9.103 From April 2007 to March 2009, training, by March 2009, LEA has trained LEA has registered 9,718 applicants for its 3,387 entrepreneurs on the following products and services. All applicants were courses (Table 9.1). screened, of which, 6,750 (69 percent) have 155 Table 9.1: Number of Entrepreneurs Trained Business Management 468 Business Planning 962 Principles of Marketing 275 Principles of Leadership 92 Essentials of Management 158 Record Keeping 500 Pattern Making 8 Costing and Budgeting 46 Trade Show Readiness 8 Pork Production 13 Quality & Productivity Workshop 11 Feasibility Study 85 Poultry Production 36 Horticulture Techniques 69 Customer Care 78 Advanced Marketing 26 Small Stock 21 Basic Computing 15 Fodder Production 13 Value Added Tax 59 Entrepreneurship Botswana 22 Youth in Entrepreneurship 21 Aquaculture 12 Beef Cattle Production 12 Entrepreneurial Development Training 327 Business Management and Panning 20 External training of Technical courses 10 Financial Management 20 Total 3,387 Source: LEA, 2009 Training and Mentoring of SMMEs

9.106 Before LEA became operational, the countrywide. In addition, a total of 1,644 MTI was charged with the responsibility for employees of different co-operative societies the implementation of the SMME Policy. In were trained in accounting, management and the period between 2000 and 2006, MTI supervision, marketing and product trained and mentored 4,085 (1,571 men and development. 2,514 women) small scale entrepreneurs 156 Cluster Model Strategy

9.107 MTI has entered into partnership 9.110 Co-operative retail shops continued with the United Nations Development to fill the void in many remote settlements Programme (UNDP) with the objective of of Kgalagadi and Ghanzi Districts, where developing and implementing a new growth private investment is not attractive. Sales model for small scale industries. The turnover by co-operatives increased from garment cluster development model, piloted P104 million in 2002 to P163 million in in Thamaga and Molepolole, has assisted in 2008, an increase of 5 per cent in real terms. identifying the challenges and interventions that should be taken to develop integrated 9.111 The promotion of savings and credit micro enterprises with other elements of the co-operative societies to improve domestic industry sector. Currently, two pilot firms savings has resulted in savings increasing generate funds to meet their financial from P80 million in 2002 to P110 million in obligations and have employed young 2008. Credit extended to members increased women in the vicinity. It has upgraded some from P79 million to P95 million during the entrepreneurs from the informal sector to same period. However, these failed to keep graduate to the formal sector. To achieve the up with inflation, which meant that savings desired sustainable growth and integration decreased in real terms by 8 percent and of micro enterprises, the model should be credit by 20 percent. rolled out nationally, with training for improved garment production to achieve Improvement of Product Quality and essential delivery timelines and product Standards quality.

9.112 The Botswana Bureau of Standards Co-operative Development (BOBS) was established in 1997, and has grown rapidly. The number of technicians

9.108 The National Policy for Co-operative and scientists has grown from 13 in 1997 to Development was approved by Parliament 127 in March 2009. Over 500 national in August 2007. Its objective is to set out a standards have been developed, 33 road map and create an enabling companies have been awarded ISO environment for the development and 9001:2000 certificates for their compliance growth of various types of co-operative with the internationally recognised quality business. management system standard, 15 companies have been awarded 29 BOBS Standards

9.109 The co-operative subsector Mark for products compliance to the continued to grow during NDP 9, resulting Botswana standards, and 2,215 people have in an increase in the number of co-operative been trained in standards and the societies registered, increased sales turnover management system. Trade and Industrial and total domestic savings mobilised by Metrology Services offered have also members. Thirty six additional co-operative increased in number and type during NDP 9. societies were registered, of which twelve are non-traditional in nature, operating in 9.113 BOBS has strengthened its consumer areas such as horticulture, poultry, ostrich and environment protection activities farming and textiles. Diversification of through the implementation of the Standards products is critical with the advent of (Import Inspection) regulations (SIIR), 2008 competing and aggressive retail chain stores. 157 which has prescribed 19 products and their 9001:2000 certificates. BOBS and LEA applicable standards. The list covers Food, have signed a Memorandum of Milk and Milk products, Cattle and Chicken Understanding on collaboration on quality feeds, Electrical products, plastic bags and and export standards for SME development. labelling of pre-packaged goods. BOBS also continued the implementation of compulsory The Local Procurement Programme standards for liquefied petroleum gas (LPG) filling sites and drinking water quality. 9.116 From inception of the Local BOBS has contributed to the development of Procurement Programme in January 2005 to 28 harmonised standards for the SADC March 2009, a total of P11.7 billion worth of Cooperation in Standardisation locally produced goods and services have (SADCSTAN), under which it was been purchased. This amount comprises responsible for work relating to the P709.7 million purchases from local harmonisation of six standards in the manufacturers or producers, P5.4 billion masonry units (concrete and burnt clay) and from local service providers, P4.2 billion timbers standards fields. from local traders and P1.4 billion for associated inputs which need to be sourced

9.114 The Weights and Measures Act of from foreign based suppliers (Chart 9.5). It 1973 was reviewed, repealed and re-enacted is estimated that P5 billion (assuming traders as the Weights and Measures Act, 2006. The are importing products), or 42 percent of the associated regulations have been reviewed P11.7 billion, circulated within the local and are currently being implemented. The economy, thus contributing to employment purpose of the review was to align the new creation, poverty reduction, growth of local Act with current best practice and assign the companies, diversification of the economy administration of the Act to the Managing and wealth creation. Director of BOBS.

9.117 Implementation of the directive on

9.115 A joint project between BOBS, the Local Procurement Programme has BEDIA and the Centre for the Development faced challenges relating to product quality, of Enterprise, aimed at developing the high prices and non-delivery of goods and ability of Botswana SMEs to comply with services. Efforts continue to encourage the requirementsof internationally accepted suppliers registered with the programme to quality management standards, was embrace the concept of product and service completed successfully in February 2007. quality certification. Twenty SMEs were awarded their ISO 158 Chart 9.5: Value of Purchases under the Local Procurement Programme (2005/06- 2008/09) Local Procurement Programme 2,500 2,000 Value of Purchases (Pula Millions) 1,500 Manufacturers Service Providers Retailers 1,000 Direct Imports 500 ‐ 2005/06 2006/07 2007/08 2008/2009 Period Source: Department of Industrial Affairs Registrar of Companies

9.118 Following the recommendation of licensing procedures, to reduce time and the study on the reorganisation of MTI in cost of obtaining a licence. The Liquor Act 2001, the Registrar of Companies was provides for stringent regulation to reduce established as an autonomous agency. The the proliferation of outlets, and to reduce office of the Registrar deals with complex accessibility of liquor through liquor trading technical issues relating to company law and hours and objections to liquor applications. intellectual property rights, which require Since implementation of the Trade Act, highly skilled personnel that can administer 2003 and the Liquor Act, 2003 commenced legislation covering company incorporation, in April 2008, loopholes have been business names registration, industrial identified which have called for the review property rights and copyright administration. of the two Acts. The review process is on- going. A monitoring section will be Internal Trade established during the 2010/11 financial year to work hand in hand with the Local The Trade and Liquor Act Authorities, to ensure enforcement of the Acts.

9.119 The review of the Trade and Liquor Act called for the overhaul of the Act, The Gaming and Gambling Act resulting in two pieces of legislation, the Trade Act 2003 and the Liquor Act 2003. 9.120 In 2002, Parliament approved the The Trade Act provides for simpler Gaming and Gambling Policy, which 159 provides for a comprehensive review and been realised that the groups cannot register consolidation of the Casino Act and the with the Registrar of Societies because the Lotteries and Betting Act. These outdated Societies Act does not have a provision for Acts are no longer responsive to the them. The Consumer Protection Act is also prevailing challenges in the gaming and silent on the registration of consumer gambling sector. Once enacted, the Gaming groups. The Consumer Protection Act is and Gambling Act will provide a conducive currently being reviewed and amendments environment in which various types of will include, among others, the issue of gaming and gambling businesses can consumer groups. operate. The Gaming and Gambling Bill and its implementing regulations are currently Process Re-engineering being drafted by the Attorney General’s Chambers. 9.124 To improve efficiency, the processes for the registration of companies, business Consumer Protection names and copyright are being computerised. Assistance was sought from Micro-Lending Regulations the World Intellectual Property Organisation to computerise the registration of patents,

9.121 MTI developed Micro-Lending trademarks and industrial designs. The Regulations, which were intended to protect computerisation of company incorporation, borrowers from exploitation by micro- business names registration and patents, in lenders. However, the recently enacted the Trademarks Registry, was finalised in NBFIRA Act of 2006 has provisions for this March 2008. Computerisation provides for dispensation. Micro-lenders will, therefore, online registration of companies, business be regulated by the NBFIRA under this Act. names and trademarks. This will afford clients access online, removing the need to The Competition Authority travel to Gaborone, thereby reducing business start-up costs.

9.122 In 2005, Parliament approved the 9.125 Towards the end of NDP 9, the Competition Policy, which aims at turnaround time for the incorporation of enhancing competition in the market place companies and the registration of by reducing or eliminating anti-competitive businesses, upon receipt of an error-free and restrictive business practices. The Policy application, was reduced from three months provides for the formulation of the to an average of 5 working days. Further Competition Law, which will set out a computerisation in the Registrar of framework within which Government will Companies will improve this turnaround respond to anti-competitive challenges in the time. The major constraint faced by the market place. In this regard, a Competition office of the Registrar remained human Law, which will establish a Competition resource capacity and skills, and inadequate Authority, has been drafted. The office accommodation. Competition Bill was approved by Cabinet in April 2009, and it is scheduled to be STRATEGIES FOR NDP 10 presented to Parliament in late 2009.

9.126 NDP 10 comes at a time when Consumer Groups Botswana is adjusting to globalisation. This has been driven by worldwide product and

9.123 While MTI continues to encourage financial market liberalisation, consumers to form consumer groups, it has developments in information and 160 communication technology, the revolution 9.129 A strong, dynamic private sector is in road, rail and air transport, etc. However, crucial for the future long-term rapid the most important force for Botswana’s economic growth of Botswana. Bottlenecks globalisation would appear to come from her and constraints to private sector bilateral, regional and multilateral trade development must be identified, and agreements. Current (and future) trade appropriate strategies for removing them agreements will result in free trade areas in formulated. The ultimate objective is to which “substantially all trade” will be facilitate the development and growth of a liberalised by 2016. While acknowledging private sector that is dynamic, outward- this, Government will work alongside the looking, efficient and internationally private sector towards a common SACU competitive (see also Chapter 5). industrial policy that will be supportive of the country’s industrial development. 9.130 The specific sector objective is to improve the global competitiveness of the

9.127 NDP 10 represents a watershed in private sector. MTI will, during NDP 10, terms of transforming the Botswana facilitate medium and long-term strategic economy from a public sector-led economy interventions that foster economic growth to a private sector-led economy. NDP 10 and diversification, as well as promote will once again emphasise the prominent employment and social development. To role of the private sector in the provision of achieve this objective, a multi-pronged goods and services. The Plan calls for strategy will be pursued aimed at supporting manufacturing that is based on Botswana’s complementary efforts by Government and primary products, where comparative the private sector, as follows: advantage exists; hence, the call for beneficiation of as many raw materials as is Competitive Business Environment commercially viable, before export. Studies will be conducted during NDP 10 which will 9.131 The right enabling policy and identify imported products whose quantities regulatory environment is vital for the long- provide a basis for commercially viable term viability of business in any economy. domestic production, thereby creating The private sector, when properly regulated opportunities for FDI, joint ventures and and operating under competitive market SMMEs. conditions, will thrive, grow and diversify. The business environment will be improved

9.128 Botswana’s landlocked status, and by removing or minimising the negative the cost of importing and exporting physical effects of all the existing administrative, goods, dictate that Botswana must move bureaucratic and regulatory impediments to towards the export of services with minimal investment, business development, exports transport costs, particularly those in the and private sector development, in order to knowledge area. For this to happen, make Botswana a destination of choice for Botswana’s policies and regulations, and doing business (see also Chapter 5). trade promotion and trade facilitation capabilities, need to be reviewed. Their Local Enterprise Development ability to facilitate and foster the development of a knowledge-based 9.132 The intent is to increase local economy must be strengthened during enterprise participation in the economy and NDP 10 (see also Chapter 5). in the international market, by accessing upstream and downstream opportunities afforded by all major public and private 161 sector projects. The capacity, capabilities, need to focus on activities that will be of competitiveness and efficiencies of local priority to Government in order to attract enterprises, will be developed to take higher levels of FDI flows to Botswana. advantage of these opportunities, 9.137 Beneficiaries are local and foreign conforming to all international quality and investors. Investment, as measured by Gross environmental requirements. Fixed Capital Formation, declined in real terms in the first half of NDP 9. Far from

9.133 The macroeconomic policy moving towards the Vision 2016 target, that framework for NDP 10 clearly highlights it would reach 40 percent of GDP, its share that Botswana’s future prosperity will of GDP fell. It is critical that this trend be depend on the ability of the private sector to reversed, and the required FDI generated to generate economic growth through exports, achieve the desired GDP growth rate during a capability they can develop much easier by NDP 10 and beyond. The aim is to increase learning to compete, and building economies levels of FDI inflows, and to increase of scale in the domestic market. investment in expansion of existing business operations from P150 million to P800

9.134 Enhancing the capacity of local million by the end of NDP 10. enterprises and creating opportunities for developing local entrepreneurs will be Botswana Brand Implementation targeted. An external assessment of the competitiveness of local enterprises shows 9.138 Implementation of the national brand that the level of exported outputs is the is intended to increase local and global lowest in the region, with low total factor awareness of Botswana, to differentiate productivity and skill levels. Previous Botswana from her competitors, and to approaches have not succeeded in reposition her as a unique destination of developing local enterprises, as they have choice for doing business, living in, and/or created opportunities, but failed to change visiting. The rollout of the brand is expected mindsets and build capacity. to contribute to increased inflows of investors, tourists and people with scarce Investment Promotion skills.

9.135 Botswana aims to enhance its ability 9.139 In global terms, Botswana does not to attract increased and high levels of FDI ‘stand out’ as a well known and sought out flows during NDP 10. The intent is to investment and tourism destination. increase economic diversification and Consequently, most of the international encourage value addition to natural investors that Botswana is trying to attract, resources in agriculture, services, are uncertain of the available investment manufacturing, mining and tourism. opportunities and business prospects because they do not know enough about it.

9.136 Generally, increased regional political and macroeconomic stability means 9.140 Primary beneficiaries of national that Botswana can no longer rely on these branding will be local enterprises through traditional strengths to attract FDI. The establishment of strategic partnerships to country needs to be more proactive in enhance the marketability of their products developing new strategies and tactics for and services. Tourism will benefit as the attracting FDI. Given its relative size in the Botswana Brand will be able to market region, it will have to be very aggressive in Botswana effectively as a unique and adopting this approach. This highlights the attractive tourist destination. The increase in 162 FDI will contribute to employment creation, messages, thereby failing to complement transfer of skills and technology and tourism each other’s effort. The brand will development. communicate Botswana’s unique selling points to Batswana, local and international

9.141 Various stakeholders, who go around investors, as well as to visitors, in a well the world in an effort to promote Botswana, coordinated manner. convey uncoordinated and different Sector Performance Matrix 9.1: Trade and Industry Goal Key Performance Indicator Plan Baseline Plan Target 2015/16 2007/08 Private sector- Business Confidence Index To be 20% increase p.a. in led economic determined Business Confidence growth (BNPC) Index Ratio of import of goods and 38% 30% services to GDP Value of non-traditional 30% increase P6.4 billion merchandise exports Gross Fixed Capital 25.3% 40% Formation as a proportion of GDP % contribution of non-mining 6.6% At least 13%. exports to GDP Balance of Payments +P10.6 billion +P12.8 billion Source: Bank of Botswana Annual Report 2008 SUMMARY OF PROGRAMMES

9.142 A series of interlinked programmes negative effects of all the existing will be implemented to facilitate the administrative, bureaucratic and regulatory achievement of this KRA. impediments to investment, private sector development and exports. Competitive Business Environment Programme Local Enterprise Development Programme

9.143 The right enabling policy and regulatory environment is vital for the long- 9.144 The programme entails increasing term viability of business in any economy. local enterprise participation in the economy The private sector, when properly regulated and in the international market by accessing and operating under competitive market up-stream and down-stream opportunities, conditions, will thrive, grow and diversify. developing local enterprises’ capacity, The objective is to improve the business capabilities, competitiveness and efficiency climate by removing or minimising the to take advantage of these opportunities. The 163 national strategy for NDP 10 emphasises operations. Botswana is a landlocked that Botswana’s future prosperity will country with both the public and private depend on the ability of the private sector to sector totally dependent on efficient generate economic growth through exports, transport, associated services and logistics a capability they can develop much easier by management, for business travel, increasing learning to compete by building economies tourism, affordable imports and competitive of scale in the domestic market. This exports. Trade development, promotion and programme is aimed at enhancing the facilitation are critical to private sector capacity of local enterprises and creating competitiveness and public sector opportunities for developing local efficiency. entrepreneurs. Trade and Industry Support Programmes Investment Promotion Programme

9.147 The programme comprises four

9.145 The country needs to be much more components: computerisation, fleet proactive in developing strategies and tactics expansion, offices and residential properties, for attracting FDI. Given its relative size in and consultancies. The objective is to the region, it will have to be very aggressive improve MTI efficiency. The programme in adopting this proactive approach. will provide an efficient information Activities will include the development of management system to enable the MTI and an investment master plan, preparation of its parastatal organisations to facilitate investment demand studies and associated sustainable growth and diversification. The sector investment strategies, the programme also intends to improve its establishment of special economic zones, transport needs and project monitoring and after-care services for investors. activities. Research/consultancies will be undertaken for policy and legislation Trade Development and Promotion formulation and project planning. These consultancies are necessary for Botswana to

9.146 The trade development and enhance its competitiveness and promotion programme is aimed at attractiveness as an investment location of improving export production capacity and preferred choice, as well as a tourist diversification, removing supply side destination. Office and residential facilities constraints at firm level, simplifying, will be provided for extension staff in order harmonising, standardising and modernising to improve their morale and productivity, as trade procedures and cross-border well as to retain qualified staff. SECTOR: MINERALS INTRODUCTION

9.148 The main minerals mined in for minerals are diamonds, coal and base Botswana are diamonds (discovered in metals (copper and nickel). Since 1967), copper, nickel, coal, soda ash and Independence, the mining sector has been salt. Other mined minerals are gold, clay and the backbone of Botswana’s economy, with construction aggregate. The most explored diamonds being the main contributor to 164 exports, government revenue and GDP. shareholding has been mutually agreed with Diamond production has been based on low- the private investors. Government owns cost surface mining. During the next decade, Debswana Diamond Company 50/50 with however, diamond mining will experience De Beers, 15 percent of Tati Nickel Mining changes to its production, processing and Company, 50 percent of Botswana Ash, and marketing systems. Major milestones will be 33 percent of BCL. the introduction of waste recycling in 2012, the rapid depletion of the diamond pipes 9.152 During NDP 10, public policy will from 2018, and moving mining to higher- focus on supporting value addition and the cost underground production around 2020. development of new industries to support These will affect the economics of the Plan goals for growth and employment. The industry in fundamental ways, through Botswana Diamond Hub will provide a increased production costs and the diamond trade centre for rough and polished anticipated sharp downturn in revenue in diamonds, as well as establishing sustainable NDP 11 (Chart 5.1). downstream industries (cutting and polishing, and jewellery manufacturing).

9.149 To sustain the mineral sector’s Efforts will also be geared towards contribution to sustainable economic growth identification of additional mineral during NDP 10, several strategies will be resources, and the promotion of small and pursued. The strategies include promotion of medium scale mining. local beneficiation and value addition, investment promotion and diversification, 9.153 Beyond NDP 10, state mineral and promotion of citizen participation in the revenues are expected to decrease mineral sector. substantially due to depletion of diamond resources at the existing diamond mines.

9.150 The state body responsible for This will result in lower production and an developing and implementing the fiscal, increase in costs (capital and operating) of legal and policy framework for mineral mining as the ore is progressively mined at exploration and exploitation is the Ministry depth. Diamond revenues are projected to of Minerals, Energy and Water Resources peak around 2015, and to decline steeply (MMEWR). Exploration is administered after 2021 (see Chapter 5). The prospects for through the Department of Geological coal mining are promising, as there is an Survey, while mining and related activities abundance of the resource and it is in high are administered through the Department of demand worldwide. A Road Map for Coal Mines. MMEWR also administers various Development will be formulated during mineral agreements, undertakes promotion NDP 10. Local value addition through the of investments in minerals and liaises with diamond hub activities will help offset bilateral and multilateral development revenue reduction from primary diamond partners on mineral related matters. production.

9.151 While MMEWR exercises a REVIEW OF NDP 9 licensing, monitoring and facilitating role in mineral exploration and exploitation, 9.154 The overall mineral policy objective prospecting and mining activities are carried for NDP 9 was to maximise economic out by private companies. The Government benefits for the nation from the development of Botswana has significant shareholdings in of mineral resources, while allowing all the large mines, where the level of 165 investors to earn competitive returns. occurred through the provision of catering Mineral sector activities were guided by the services, building sub-contracting, security following policy objectives: services, and supply of protective clothing to • To encourage prospecting and new mine mention a few examples. developments; • To create opportunities for generating 9.159 Shortages of manpower with mining linkages with the rest of the economy skills have continued, especially for artisans, and increasing value addition; where there is a general shortage even at regional and international levels. The • To conserve and protect the shortage of engineering skills was further environment, and identify and develop accentuated by the 2010 FIFA World Cup appropriate strategies for dealing with related construction boom in South Africa. challenges facing the mineral sector. The opening of new mines, such as the Dukwe mine and the DiamonEx mine in

9.155 Rising commodity prices, driven by Lerala, as well as the growth of the Tati developments in China and India, triggered Nickel operation to the east of Francistown, a boom in exploration activities in Botswana also increased the demand for mining related over the NDP 9 period. While no new major skills in Botswana. The Faculty of finds were made, three new mines found Engineering and Technology at the earlier, a gold mine in the Francistown area, University of Botswana and the construction a diamond mine near Lerala, and a copper of the Botswana International University of mine in the Dukwe/Mosetse area, were Science and Technology (BIUST) are developed. expected to ameliorate the skills shortages during NDP 10.

9.156 An increase in exploration for diamonds, coal and coal bed methane, 9.160 Whereas in the past, efforts to construction aggregates and ornamental promote diamond downstream processing stones was recorded throughout the Plan were relatively unsuccessful, during NDP 9 period. The activities have added to the progress was made on this front. The existing mineral resource information, number of diamond cutting and polishing despite the lack of major new discoveries. factories increased from four in 2004, to sixteen in 2008. The Diamond Trading

9.157 Mining continued to be the highest Company Botswana (DTCB), a 50/50 joint contributor to GDP, government revenue venture between the Government and De and revenue from merchandise exports at Beers, was formed to take over the functions approximately 41, 44 and 82 percent, of the Botswana Diamond Valuing respectively in 2008. Company and some of the functions of the Diamond Trading Company International. Creating Linkages and Increasing Local

9.161 This has effectively transformed Value Added Botswana into a major world diamond sorting, valuing and marketing centre. By

9.158 Mining is typically enclave in nature 2010, USD550 million worth of rough and has limited linkages with the rest of the diamonds will be allocated by DTCB economy. Government policy during NDP 9 annually, with up to 80 percent of those has been to encourage linkages by diamonds polished in Botswana factories. promoting local procurement to the greatest This comprises about 4 percent of the global extent possible. This has successfully 166 rough diamond production value of USD13 principle in mineral sector development billion. By 2016, the proportion of locally policy. traded rough diamonds will increase to a level mutually agreed by the Government Encouraging Prospecting and New Mine and the suppliers. Developments

9.162 Further, the Diamond Hub has been Private Sector Exploration established to act as the Government’s diamond professional branch charged with handling the promotion of diamond 9.164 At the end of March 2009, there downstream processing in Botswana. This were 93 active exploration companies includes diamond cutting and polishing, operating in Botswana. Of these, 29 were promotion of both polished and rough exploring for precious stones, with the diamond trading, diamond jewellery balance of 64 companies exploring for manufacturing and retailing in Botswana. various other minerals. One thousand and forty-one licenses were issued, comprising

9.163 During NDP 10, local value addition 650 for various minerals (metals, industrial through direct beneficiation and creation of and energy minerals) and 391 for diamonds linkages with the other sectors of the (Chart 9.6). economy will continue to be the dominant Chart 9.6: Prospecting Licences Isued Source: Department of Geological Survey

9.165 The continuous boom in the global Economic Group). The rise in exploration minerals industry, which has contributed to activities contributed to unemployment the increase of global exploration alleviation and stimulated investment. expenditure, was also observed in Botswana. Although there were no new major mineral Global exploration expenditure for 2007 was discoveries during the NDP 9 Plan period, estimated at USD10.9 billion (Metals the favourable geological environment, as 167 evidenced by the existing mines for Meepong Resources (Pty) Ltd applied for a diamonds, base and precious metals, coal, mining license over part of the area. The etc., testifies to the possibility for more mine will provide coal resources for export mineral discoveries. Botswana is still markets and to an export power station considered to have strong potential for which will be constructed nearby. diamonds, coal and base metals.

9.170 African Copper had been

9.166 The North-eastern part of the country constructing a copper mine at Mowana. The is naturally rich in precious and base metals, copper deposits were previously mined in with copper and nickel offering good ancient times. The company stopped potential. Some deposits that were construction in 2008, due to the financial discovered prior to NDP 9 are now being crisis and the collapse of commodity developed for production. Anticipated markets. The suspension of operations was recovery of commodity prices in NDP 10 is accepted by Government at that time, while expected to render some previously the company attempted to secure further uneconomic deposits economic. funding.

9.167 NDP 9 saw the introduction of new 9.171 DiamonEx was granted a mining exploration technologies, such as the license over the Lerala diamond deposits Zeppelin, Falcon and Titan systems. after a period of evaluation under a Technology development is continuous; and prospecting license. The deposits were it is hoped that, as the technology improves, previously mined by De Beers Botswana new discoveries will be made. Proposals Prospecting (Pty) Ltd on a trial basis. have been made in this Plan to focus on the hitherto unexplored deep seated rocks 9.172 A copper/silver prospect known as underneath the Kalahari. This also opens the Ngwako Pan Deposit, which was avenues of mineral discoveries as most of previously explored in the late 1990s by US the previous exploration had concentrated Steel and Anglo American Corporation, is on the relatively easier areas. currently at an advanced exploitation feasibility stage under the auspices of

9.168 Coal in Botswana has a great Discovery Nickel Limited. potential for growth. The increasing demand for energy both nationally and regionally has increased the demand for energy minerals. Public Sector Exploration Initiatives Prospecting areas for coal and coal bed methane are now being heavily sought after 9.173 Interpretation of the Central Kalahari in the region and worldwide. Airborne Magnetic Survey data was successfully completed during NDP 9. As a

9.169 Exploration and mining companies result of the interpretation work, 39 quarter revisited a number of previously explored degree sheets in the Molopo Farms Complex areas during NDP 9. The Mmamabula area and Kalahari Series Block have been was previously explored in the late 80’s by produced. These sheets are important for BP Coal, CDF Botswana (Pty) Ltd and Shell fostering private sector investment, mainly Coal Botswana (Pty) Ltd. Significant coal in platinum group minerals for the Molopo reserves were established and verified in the Farms Complex and geological mapping of coalfield. Following the exploration, basement rocks and minerals in the Kalahari 168 Block. Following completion of the licenses, which goes with efficiency in interpretation work, there has been renewed processing the applications. Potential interest in exploration of the Molopo Farms investors and interested parties can access Complex, as evidenced by the number of prospecting and mining maps, as well as exploration licences covering the area, as geological maps through the internet. well as the number of requests for the interpretation results. Work to undertake 9.177 The construction of the Department geochemical sampling of the Molopo Farms of Geological Survey (DGS) headquarters Complex was hampered by staff shortages. phase I was completed, while the second The preliminary results indicate anomalous phase will be completed in NDP 10. The areas from the geochemical data that are still delay in completion of the buildings has had to be confirmed by other exploration a negative impact on service delivery, as methods. Soil geochemical sampling was some planned processes needed new also done on the Ramatlabama-Gaborone equipment, to be housed in the new office. and Sekoma-Phitshane Blocks. Geological Survey is in the process of procuring equipment for the extension of the Mineral Dressing Laboratory. In addition to

9.174 Various studies on industrial mineral providing office accommodation space, the deposits were also conducted between 2003 Department of Geological Survey and 2007. These included the assessment of headquarters building is also meant to house construction material resources (sand and laboratory equipment used to analyse coarse aggregates) in the Greater Gaborone samples from mineral exploration activities. Region, identification of potential granite Exploration activities result in the dimension stone deposits in the Moshupa- production of drill cores, which are then Thamaga-Manyana-Ranaka region, silica archived by the DGS in the core sheds for sands resource investigation in the upstream future use. It is for this reason that additional of Mmoni Fossil River, as well as the core sheds are needed to cater for the evaluation of the quality and quantity of the increased mineral exploration activities. Serule clay/mudstone deposit. Two core sheds were completed in Kang and Molapowabojang. Due to slow progress,

9.175 MMEWR embarked on a National two other core sheds, which were planned, Integrated Geoscience Information System could not be started. They will be (NIGIS) project, whose main objective was implemented in NDP 10. to acquire an integrated geoscience data management system. This would leverage Mineral Exploitation the business of the Ministry by facilitating easy sharing of information, easy access and

9.178 The major minerals mined in manipulation of the current datasets to Botswana are diamonds, copper, nickel, maximise data utilisation and improve coal, soda ash and salt. Table 9.2 shows efficiency. The project was implemented in mineral production figures for the period two phases: the Requirement Analysis and 2002 to 2008. Specification phase, and the Design phase. Implementation of both phases is complete.

9.179 While the production of diamonds and copper-nickel was constrained by

9.176 The benefits include instant public production capacity during NDP 9, soda ash, access to publicly available minerals, energy salt and coal production were constrained by and water information, on-line application the market. for both the prospecting and mining 169 NDP nine (quarter ending March 2009).

9.180 Diamond production was able to This accounts for the sharp drop in the share respond to increased demand, until the of mineral revenue in total government global economic crisis which started in revenue shown in Table 9.3. At the same 2008. This caused the main diamond mines time, copper-nickel production was stagnant. in Botswana to close for the last quarter of Table 9.2: Mineral Production Statistics YEAR DIAMOND COPPER-NICKEL- COAL SODA SALT GOLD S (000) MATTE ASH (Carats) Tonnes Tonnes Tonnes Tonnes Kg 2002 28,368 56,626 953,081 283,197 315,259 8.4 2003 30,412 51,983 822,780 234,520 229,432 9.0 2004 31,125 54,448 913,087 263,358 208,319 162.2 2005 31,890 68,637 984,876 279,085 243,945 2,708.8 2006 34,293 64,368 962,427 255,677 151,595 2,546.5 2007 33,639 53,947 828,164 279,625 165,710 2,722.0 2008 32,595 61,686 909,511 263,566 170,994 3,176.0 Source: Department of Mines

9.181 Table 9.3 illustrates the contribution of minerals to GDP and Government revenue. Chart 9.7 shows the composition of non-tax mineral revenues during 2008/9. Table 9.3: Contribution of Minerals to Gross Domestic Product and Government Revenue % Contribution of National Accounts Year Minerals to Gross Mineral Revenue as a % of Total (ending June) Domestic Product Government Revenue (a) 2003/04 39.7% 50.3% 2004/05 42.9% 48.3% 2005/06 41.1% 49.6% 2006/07 40.9% 47.9% 2007/08 38.2% 43.1% 2008/09 n.a. 30.8% Note: (a) fiscal years ending March Source: Ministry of Finance and Development Planning 170 Chart 9.7: Composition of Non-Tax Minerals Revenues (2008/09) Source: Department of Mines Diamonds

9.182 Botswana maintained its status as production of 34.29 million carats of the world leading diamond producer by diamonds was achieved in 2006. Chart value. For the first six years of NDP 9, 9.8 shows diamond price movements Debswana Diamond Company, which is from 2002. A fourth Debswana diamond owned in equal shares by the Botswana mine, Damtshaa, which was Government and DeBeers, consistently commissioned in 2002 at a production produced over 30 million carats per year capacity of about 250,000 carats per from its mines at Jwaneng, Orapa, annum, doubled plant capacity during Letlhakane and Damtshaa. A record 2006. Chart 9.8: Diamond Price Movement 2002-08 180 Index (2002=100) 160 140 120 100 80 2002 2003 2004 2005 2006 2007 2008 Year Source: Department of Mines 171

9.183 The Jwaneng Mining Licence, which expected life of the mine is 10 years at a expired in August 2004, was renewed for a production rate of 330,000 carats per annum. further 25 years in 2006. As part of the DiamonEx made its first sale in October agreement for the renewal of this mining 2008, but went into care and maintenance in licence, the Orapa, Letlhakane and Damtsha February 2009 due to the depressed diamond mining licences were extended to run market. The mine remained closed during concurrently with the Jwaneng mining 2009. licence. The agreement also included the setting up of the DTCB, to take over the Copper-Nickel activities undertaken by Botswana Diamond Valuing Company, as well as distribution of 9.186 Combined nickel and copper diamonds to local cutting factories. The production from Tati Nickel Mining DTCB building has been constructed and Company (TNMC) and BCL Limited during operations commenced in March 2008. NDP 9 fluctuated between 51 thousand Establishing DTCB will also benefit the tonnes in 2003 and 69 thousand tonnes of development of the financial sector, as huge matte in 2005. At the start of NDP 9, due to quantities of financial transactions will go then prevailing low metal prices, BCL was through Botswana. dependent on emergency funding provided by Government. Increased metal prices

9.184 Debswana will undertake technical improved BCL’s financial position to the investigations to look into the potential of point that it was able to repay the entire underground mining as its operations go emergency funding principal during 2006. beyond the current open-pit operations. It is From July to August 2007, the company anticipated that when both Orapa and undertook a major refurbishment of its Jwaneng mines finally move from open pit smelter. A number of capital projects are to underground mining, production will also being undertaken to place the company decrease significantly, negatively affecting on a strong footing to meet future revenues. challenges. Copper and nickel prices

9.185 DiamonEx Botswana was issued a increased to historic highs during the period mining licence to mine diamonds near up to 2007, before being affected by the Lerala in August 2006. Construction started collapse of primary commodity prices in during 2007 and commissioning occurred 2008/9. Chart 9.9 shows trends in copper during the second quarter of 2008, with and nickel prices to mid 2008. production in the third quarter of 2008. The 172 Chart 9.9: Copper and Nickel Prices 2002-08 20 15 USD/lb 10 5 0 2002 2003 2004 2005 2006 2007 2008 Copper Nickel Source: Department of Mines

9.187 After operating a Hydrometallurgical Coal Demonstration Plant successfully for two years at the Phoenix Mine, LionOre (now 9.189 Morupule Colliery remained Norislk Nickel) invested in the Activox Botswana’s only coal producer during hydrometallurgical refinery to be operated NDP 9. The colliery has capacity to produce by Botswana Metals Refinery (Pty) Ltd, a about a million tonnes per year. Production wholly owned subsidiary of TNMC. at this level is, however, constrained by Construction of the Actovix plant demand. The major customers are Morupule commenced in October 2007, but capital Power Station, BCL Limited and Botswana costs increased more than three-fold since Ash. Morupule started coal exports to the the completion of the project feasibility SADC region in 2003. The annual tonnage study, rendering the project non-viable. A has risen from some 14,000 tonnes in 2003 decision was made in late May 2008 to to over 70,000 tonnes in 2006, but this was suspend the project. not able to offset a decline in production for domestic use.

9.188 Messina Copper, a subsidiary of African Copper PLC, was issued a mining 9.190 The Department of Energy Affairs licence in December 2006 over the old undertook a coal beneficiation study, which Bushman Mine near Dukwi. Construction led to the construction of a coal wash plant commenced during 2007 and commissioning in 2007 by Morupule Colliery. The plant occurred during the second quarter of 2008, was commissioned during the first quarter of with concentrate production commencing 2008. It will enable the colliery to expand its during the last quarter of 2008. The customer base by supplying washed and production capacity of the mine is 300,000 improved quality coal. To prepare for the tonnes of copper concentrate per annum. future coal demand, Morupule Colliery undertook a study to expand its operations to meet the requirements of Morupule Power Station Expansion Project planned for commissioning in 2010. Morupule colliery 173 is planning to increase production capacity Conserving and Protecting the to between 3 and 4 million tonnes per Environment annum.

9.191 Meepong Resources, a subsidiary of 9.194 As part of its environmental CIC Energy Corp, applied for a mining protection efforts, the Department of Mines licence in December 2006 to mine coal as continued with identification and part of the combined mine and export power rehabilitation of old and abandoned mines. station under the Mmamabula Energy During the NDP 9 period, rehabilitation Project. The project proponents and the work focused in the Francistown and Government of Botswana are currently in Moshaneng areas. The dumps and shafts negotiations over licensing and other around the old Moshana asbestos mine were agreements required for the project. The rehabilitated. In Francistown, the project sponsors are also in negotiations rehabilitation work of the Monarch Mine with potential off-takers for the power, was completed during 2008/09 financial namely, BPC and Eskom of South Africa. year. In terms of total sites requiring rehabilitation nationally, 56 percent have Soda Ash and Salt been rehabilitated, with the major constraint being the availability of funds.

9.192 Soda ash and salt production at Sua 9.195 To assist further with the protection Pan continued during NDP 9 with the of the environment, guidelines have been highest annual production of 279,625 tonnes developed to assist small scale mining in 2007 for soda ash, and a corresponding (predominately involved in the extraction of figure of 243,945 tonnes in 2005 for salt. sand and gravel) with good mining practices South Africa continues to be main market and rehabilitation. Some improvements have for soda ash, while salt is mainly for export been made on the ground, but the major to countries to the north of Botswana challenge remains illegal extraction of sand (Zimbabwe, Malawi, etc). Excessive rainfall and gravel. An increase in manpower to deal during the NDP 9 period negatively affected with this issue has had limited success as the production of soda ash at Botswana Ash. illegal operators have resorted to operating around the clock and using sentries and Gold modern technology to evade detection.

9.193 Mupane Gold Mine was issued a Safety and Health mining licence in September 2003, after successful discovery of a gold deposit 9.196 Chart 9.10 shows the number of during NDP 8 in the North East District near accidents that occurred and the injury Francistown. Production started in the last severity rate (SR). SR is the number of shifts quarter of 2004. Production rose to 3,176 kg lost due to work related injury per 200,000 in 2008. In that year, exports of gold were man-hours worked. The decline in SR P382.4 million, which was 1.1 percent of during NDP 9 is mainly due to reduction in total merchandise exports in that year. severity of accidents that occurred in the mining industry, as the average employment in the industry and number of accidents did not vary much during the plan period. 174 Chart 9.10: Reportable Accidents 2000-08 60 55 53.9 51 50 48 46 43 40 40 39.4 40 37 37 30.2 31.4 30 22.3 22.8 21.55 20.3 20 17.13 10 6 6 6 5 3 3 2 2 3 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Reportable Accidents Fatal Accidents Injury Severity Rate Source: Department of Mines

9.197 Table 9.5 outlines environmental wildlife are made, funds will be secured to projects that were planned in NDP 9. The rehabilitate such sites. Currently, the projects were of two types; those for majority of the old mine workings which rehabilitating old and abandoned mines, and have been identified, have been rehabilitated those for better controlling the extraction of or are being planned to be rehabilitated in sand from the river systems to make it the coming Plan period. Bottlenecks environmentally friendly. Four out of the encountered during old mine rehabilitation five rehabilitation projects have been are funding limitations and knowledge of completed, with the exception of the best rehabilitation methods that can rehabilitation of the Monarch abandoned withstand the harsh environmental shafts and dumps. The rehabilitation of old conditions. Vandalism by the public has also mine shafts and dumps is a continuous been identified as one of the factors limiting exercise. Whenever discoveries of old mine the success of the rehabilitation efforts. sites that pose a danger to the public and 175 Table 9.4: Mining Environmental Projects Date & Project & Work Method Comments Duration Tender Number done 2004/05 EIA Study on 3 rivers Consultations The study resulted in the River-sand and 1 pit and site visits development of best sand mining mining sand practice and exclusion of certain TB portions of rivers from mining. 10/1/32/2001- 2002 BMC, Shashe 33 shafts Backfilled with No evidence of failure, but some 2004/05 Mine, Golf Club and rock and new openings have appeared due to 12 weeks openings rambles and caving. TB 10/4/9/2001- sealed with 2002 reinforced concrete slabs on top Moshana Old 25 shafts, Backfilled with No evidence of failure, but some Asbestos Mine 15 dumps rock and new openings have appeared due to 2005/06 and some rambles and caving. Vent pipes and dumps 4 months TB 10/4/9/2001- old sealed with exposed to vandalism and illegal 2002 buildings reinforced mining, respectively concrete slabs on top 2007/08 Erection of sign 270 sign Manufacturing This is a follow up project from the boards on illegal boards of the boards EIA study. mining Vandalism of the boards by scraping off the writings on them. Monarch 27 shafts Form slurry Small scale miners feel there is still 2007/08 Abandoned and 14 from the dumps, value in the dumps; hence it is a 9 months Shafts and dumps and pump it into challenge to the rehabilitation Dumps the shafts all the project to make the area safe. way to the PR 10/1/3 08(III) surface Source: Department of Mines Mining Industry Employment in 2004 during construction of the Mupane Gold Plant and Tati Nickel Mine expansion. But the average employment in the mining

9.198 Average employment in the mining industry was static until 2007 (Table 9.4). industry did not vary much between 2003/04 Construction at Messina Copper and and 2007/08 because mining is highly DiamonEx contributed to a 15 percent capital intensive. A slight increase of 6.8 increase in mining employment in that year. percent in mining employment was recorded 176 Table 9.5: Employment in the Minerals Industry Year Citizens Expatriates Total Expatriates as % of total 2002 12,520 803 13,323 6.0% 2003 12,378 858 13,236 6.5% 2004 13,104 1,028 14,132 7.3% 2005 12,958 849 13,807 6.2% 2006 13,678 896 14,574 6.2% 2007 15,524 820 16,830 4.9% 2008 15,908 796 16,704 4.8% Source: Department of Mines NDP 9 Challenges

9.199 An analysis of the challenges emerging from experience during NDP 9 has been carried out to inform strategies for NDP 10, and is presented below. Table 9.6: NDP 9 Challenges CHALLENGES CAUSES Reduction in projected revenue from Mining into deeper levels, increased operational costs and diamonds reduced production Lack of diversification in mineral types Historically low: away from diamonds • mineral commodity prices other than for diamonds and copper • demand and exploration activity for other minerals • interest in unattractive low grade ores for base metals and coal Quality of reported prospecting data • Lack of supervision and auditing of prospecting activities due to capacity constraints • Insufficient legislative provision Lack of citizen participation in the • Exploration and mining are high risk investments mining sector, including in small scale • Lack of education and exposure amongst citizens quarrying • Lack of deliberate legislative and financial incentives Speculative prospecting licence holding • Higher returns expected by applicant • Non-enforcement of legislation • Lack of enforcement capacity Lack of local beneficiation and value • Traditionally no investment into processing, beneficiation addition processes and value addition • Lack of enabling environment (financial and legislative) Import of equipment, raw materials by • Lack of local manufacturing and technology supply capacity the mining sector. Lack of capacity (high turnover of • Unfavourable retention policies experienced geologists & other • Competition with other private players in the mineral sector geoscientists and mining engineers). • Lack of deliberate skills training strategy to meet the current demand There is a lack of new economic mineral • Lack of regular quality review of exploration strategies deposits in the time leading up to the • Lack of regular quality geological modelling NDP 10 period and few new mine Lack of regular quality prospecting license reporting openings (2) in NDP 9 177 STRATEGIES FOR NDP 10 to induce interest and investment by the private sector, including participation by

9.200 The overall aim of the Mineral locals. This will be a further step forward, Development Policy is to maximise the beyond the previous activity level of national economic benefit from the conducting mainly baseline prospecting by development of mineral resources. The Government. specific objectives of the Mineral Policy are: • To maximise the economic benefits of 9.203 The strategy aimed at mineral mining, including opportunities for investment promotion and marketing will citizens to participate directly in mining, include advancing data availability and whether as contributors of capital, accessibility through the internet and other labour, goods or services; web portals. During NDP 9, the first step • To create a competitive environment that towards this comprised the development of will stimulate private sector investment the NIGIS database framework of operation. in minerals exploration and mining NDP 10 will witness it becoming operations; operational. The NIGIS will afford access to • To regulate the minerals industry in a all customers of old, new and reviewed geo- way that ensures the most efficient and scientific models of mineral prospects, as beneficial investigation and exploitation well as available prospecting ground. of mineral resources of the country, with Populating the NIGIS database will continue proper regard for the health, safety and in order to improve access and welfare of employees; dissemination of up-to-date quality geo- • To ensure efficient collection of fiscal science information to help promote mineral revenue due to the Government from commodity investment opportunities. mineral operations; • To ensure that appropriate safeguards 9.204 This strategy is driven primarily by against negative environmental and the need to address the challenge of the societal impacts are in place as a anticipated future decline in diamond condition for mining operations to take revenue. The decline will be due to rising place; production costs resulting from the switch • To collect and disseminate geological over from open pit to underground mining at and minerals related information to the major diamond mines. Over reliance on promote investment in the minerals rough diamonds sales has persisted for too sector. long. Diversification will be pursued within this strategy to invest in other mineral types

9.201 The strategies that will be used to and a concerted shift towards value addition achieve these policy objectives are: in diamonds and other minerals. Promotion of Citizen Participation in the Mineral Investment Promotion, Mineral Sector Marketing and Diversification

9.205 The mineral sector entails a high risk

9.202 Government, through MMEWR, will investment, which has not drawn adequate aggressively pursue the promotion of participation and attention from citizen mineral investment in Botswana. As part of investors, even on a small scale. In order to this, exploration and techno-economic promote private sector growth, and to studies funded by Government will be contribute towards attaining sustainable conducted into some mineral commodities rapid economic growth, a strategy will be 178 implemented to promote citizen facilitating investment and optimising participation in the mineral sector. Efforts national economic benefits, the Government will be made to address the challenge of will enter negotiations, for large projects in constraints in financing, and the high risks in particular and including non-diamonds exploration and development. These projects, where it is considered prudent to do constraints are exacerbated by the limited so. exposure of citizens to the minerals industry. Small scale industrial minerals resources 9.209 Local value addition to diamonds projects will be packaged to bankable will be pursued through the activities of the feasibility. Linkages with development and Diamond Hub. The volume of diamonds financial institutions, such as BDC, BEDIA, supplied to the local cutting and polishing LEA and CEDA, on these minerals factories will be increased to over $1 billion development projects, will be established. per annum. This will attract related support industries, such as diamond banking,

9.206 The beneficiation of industrial insurance and security to Botswana. It is minerals will be promoted to enhance import anticipated that, during the early part of substitution for construction materials and NDP 10, diamond aggregation by Diamond dimension stones. With optimal utilisation Trading Company International will also of appropriate technologies, the economic relocate from London to Gaborone. potential of these resources could be realised. Citizen participation in the minerals 9.210 Botswana has abundant coal sector can be further enhanced through resources, estimated at over 212 billion providing incentives in the mining code for tonnes. Recent developments in the energy joint ventures between citizen and foreign sector, such as escalating energy demand companies in an effort to promote the and shortages, have significantly increased transfer of capital and skills. the value of coal. During NDP 10, Botswana must position herself to fully take advantage Competitive Process for Awarding of this development. In this regard, a Coal Prospecting Licenses Road Map will be developed which will outline options for beneficiation of coal

9.207 One of the challenges experienced (coal to hydrocarbons, coal for export and during the previous NDPs is that of entities coal for power generation). acquiring mineral concessions without adequate resources (financial and technical) 9.211 The strategy will respond to previous to explore effectively the concessions area. NDP challenges, such as limited or no This challenge will be addressed during this investment in processing, beneficiation and Plan period through the introduction of value addition. Lack of enabling competitive bidding for prospecting licenses environments, especially with respect to in selected strategic areas. This will also financial and legislative conditions, will help prevent resource sterilisation. need to be addressed. Promote Local Beneficiation and Value Capacity Building Addition

9.212 Engineering, geoscientific and

9.208 The Botswana Mining Code artisan skills shortages are a serious prescribes negotiations between the challenge to the global mining industry. Government and an applicant for a mining Botswana is also adversely affected. In license for diamonds. In the interest of partnership with key stakeholders such as 179 the Botswana Chamber of Mines and Safety, Health and Environment training institutions, the Government will give mineral sector skills development a 9.215 In order to minimise the adverse priority. The mineral sector has already been impacts of mining on public health, safety identified as one of the priorities for the and the environment, the minerals sector Botswana International University of will continue to ensure that old mine sites Science and Technology (BIUST), which that were mined prior to the enactment of will provide higher level training in skills the Mines and Minerals Act will continue to that support sector growth. be identified, surveyed and rehabilitated.

9.213 Other initiatives, in support of the Exploration and exploitation in current and strategy, will include outsourcing of new mine developments will adhere to the expertise to assist in mineral exploration, provisions of the recently enacted development of bankable feasibility study environmental management and monitoring documents, and monitoring of mineral legislation and policies. exploration and exploitation (mine auditing) activities. 9.216 During NDP 9, no existing mining operation has set up funding for the closure Improved Strategic Grassroots Mineral of its operation. To ensure availability of Exploration funds for closure at end of the life of the mine, there is need to review and amend the

9.214 The Government will continue to relevant legislature on mine closure. play a leading role in primary mineral exploration of areas that have so far 9.217 Illegal mining of industrial minerals, attracted little private sector mineral such as sand and gravel, continues to cause exploration interest. This shall take the form environmental degradation in areas around of remote sensing, aeromagnetic surveys, rivers and areas where the construction regional soil geochemical surveys, and the industry is growing. Geochemical baseline search for industrial minerals (e.g., research data will be collected to monitor changes in on the suitability of some calcretes as the environment, brought about by cement grade limestone). industrialisation, indiscriminate dumping, and population growth.

9.218 Cleaner technologies and adherence to prescribed safety standards will be adhered to in order to make exploitation of minerals safe and competitive. 180 Sector Performance Matrix 9.2: Minerals Sector Goal: To exploit mineral resources sustainably (effectively, efficiently and ecologically) Mineral sector NDP 10 Performance Indicators Plan Baselines Plan Targets Goals 1. Mineral Resources, • Contribution to GDP by the 40% 50% Identification, Assessment, mineral sector and Exploitation • Number of employees in the 17,000 20,000 mineral sector • Contribution of non-diamond 1.2% 5% minerals to GDP (diversification) • Private sector growth (Botswana companies playing role in mineral 41 50 sector, especially industrial minerals) 2. Mineral Beneficiation • Number of downstream 1 6 industries created 3. Sustainable Management • Percentage of known 58% 75% of Natural Resources abandoned mines rehabilitated • Number of reportable mine 57 40 accidents • % of new development planning areas with 40% (DTRP to 100% geotechnical consideration assist) taken on board. • Percentage of mines with 0% 100% secured mine closure funding Source: Department of Mines SUMMARY OF PROGRAMMES MMEWR will collect and disseminate geological and mineral related information Programme 1: Mineral Resources through the National Geoscience Identification and Assessment Information Centre. Further initiatives on e- Governance, including the upgrading of a website for the Department of Mines, will be

9.219 Key issues being addressed under pursued to provide reliable and accurate this programme are encouraging exploration information in a timely manner. Skilled and and new mine developments, as well as motivated staff will be provided to meet the management of mineral resources and the environment. To achieve this, MMEWR future challenges of the minerals sector. Rehabilitation of old and abandoned mines provides comprehensive data and will continue during NDP 10 in line with information to explorers, as well as guidance for suitable mineral targets to explorers. protecting the public health and safety and 181 protection of the environment. Mining stop-shop for diamond cutting and polishing legislation relating to safety will be factories, a rough and polished diamond reviewed to bring the legislation in line with trading centre and construction of a national international best practice. This will be gemmological facility. Beneficiation from accompanied by the formulation of coal will be advanced through the guidelines and standards for mine closure. development of a coal road map, which will Equipment will be acquired during the plan guide coal projects. period by the Department of Mines for use in monitoring of environmental compliance Programme 3: Mine Rehabilitation and by the mining industry. Safety Programme 2: Mineral Beneficiation 9.221 The programme’s objectives are to identify and rehabilitate old and abandoned

9.220 The programme will promote local mines on an ongoing basis; and to review value addition in the mineral sector, as well mining statutes, standards and guidelines. as create linkages with the rest of the The planned activities are intended to economy, which was initiated in NDP 9. promote public safety and environmental The Botswana Diamond Hub was sustainability through elimination of the established at the end of NDP 9 to develop a hazards that old un-rehabilitated mines pose sustainable secondary diamond industry in to the public. Mining statutes, standards and Botswana. Consultancies and studies will be guidelines will be reviewed to take care of undertaken to determine the feasibility of the developments that happened in the establishing the Botswana Diamond Centre mining industry over the years. The and the conversion of coal to hydrocarbons. programme will promote standardised mine Studies and consultancies are expected to closure, which includes mine closure surety guide development of a secondary mineral and mine closure guidelines. industry in Botswana. Key activities include establishment of the diamond office, a one- SECTOR: AGRICULTURE INTRODUCTION livestock, 66 percent to water for domestic use, 39 percent to grain storage, 52 percent

9.222 The sector has two major to markets and 54 percent to sanitation. This components; livestock and arable has resulted in slow agro-industrial and production. Agricultural production is based supply chain development that is needed to on the traditional, subsistence-oriented drive the growth of associated subsectors, systems, with limited commercial activities such as food processing, transport and for both crops and livestock. Poor manufacturing. infrastructure, and difficult production and market conditions, hinders improvements 9.223 As a consequence of low and erratic that could lead to the growth of the sector. rainfall, and relatively poor soils, arable Only 45 percent of farmers have access to production is predominantly a high risk and roads, 17 percent to electricity, 22 percent to low input, rain-fed system of low telecommunication, 64 percent to water for productivity. The production of cereal grains 182 (mainly sorghum and maize) varies good opportunity for developing its use for considerably from season to season, irrigation, as a long term drought mitigation dependent almost entirely on rainfall, with strategy. an annual mean production of 46,000 tonnes, but fluctuating from 8,200 to 9.227 The main livestock species are cattle, 175,000 tonnes. Crop production continues small stock (goats and sheep) and poultry, to experience limits on its growth posed by with populations of about 2-2.5 million, 1.5 recurring drought, poor management, million and 31 million, respectively. inadequate arable land, ageing farm Livestock populations have fluctuated over population, inadequate market access and time due to high mortality caused by marketing facilities, and inadequate use of recurring drought, pests and diseases. improved technology.

9.228 Because of the constraints listed

9.224 About 70 percent of rural households above, agriculture is characterised by low derive part of their livelihoods from productivity and its output has exhibited agriculture. Crop production is mainly based little upward trend over the years. Despite on rain-fed farming. The crop industry is the challenges, there is potential for dominated by small traditional farms, with improvement to increase the sector’s an average size of five hectares. About contribution to GDP, to help alleviate 63,000 arable farms fit under this category, poverty, to create employment and improve while only 112 farms are larger than 150 food security at the household level. hectares. REVIEW OF NDP 9

9.225 There are signs that crop production and productivity have been declining, 9.229 At Independence, agriculture despite the growing population. Cereal contributed 40 percent of GDP and 27 productivity ranges from 300kg/ha for percent of formal sector employment. By small-scale subsistence farmers to 2,500 1988, the sector’s contribution to both GDP kg/ha for commercial farms. There is need and formal sector employment had declined to improve the performance of the arable to about 4 percent according to the National subsector to reduce the high levels of food Policy on Agricultural Development (1991). import, abandonment of arable agriculture, This was mainly due to the emergence of rural-urban migration and poverty, and to other sectors, notably, the mining sector, enhance its potential to create employment. from which the country realised around 80 The majority of small scale farmers lack the percent of its export earnings. Except for necessary inputs for improving production beef and poultry, Botswana is currently a net and timely execution of farm operations. It importer of most agricultural products. Beef is, therefore, important to assist them with provides 80 percent of the sector’s essential implements and inputs, such as contribution to GDP, which is currently at fertilisers and seed. 1.7 percent of total GDP, after continuing decline in the past ten years (Table 9.5).

9.226 The availability of treated waste water in major cities and villages provides a 183 Table 9.7: Agriculture Contribution to GDP (%) 1997/98 1999/00 2001/02 2003/04 2005/06 2006/07 2007/08 Agriculture 3.4 2.4 2.2 2.2 1.8 1.8 1.7 Source: CSO, National Accounts

9.230 Production of other non-cattle annual EU Cotonou Agreement quota that livestock contributes minimally to the offers preferential access to EU markets for national food requirements, with small stock Botswana beef of 18,916 tons/annum. The and pig production contributing 2 percent average fulfilment in the last ten years has and 20 percent respectively, while ostrich been 63 percent, the lowest being during production is almost nonexistent. Dairy 2006 (Table 9.8). This occurred despite production is in its infant stage with dairy efforts to improve herd quality by cross products (fresh milk, milk powder and other breeding that was promoted through products) contributing only 3 percent of the subsidised artificial insemination. The national requirements. decline in export figures since 2001 is

9.231 Although livestock, particularly beef attributed primarily to low prices, an issue cattle, have played a dominant role in the which was addressed by changes in the price formula in 2008. sector, beef exports have not reached the Table 9.8: Quantity of Beef Exports to the EU (Tonnes) 1997 2001 2003 2004 2005 2006 2007 Chilled 5,075 8,118 5,376 4,692 4,198 2,986 1,119 Meat Frozen Meat 8,432 8,110 3,825 5,433 3,375 3,140 5,336 Total 13,508 16,228 9,201 10,125 7,574 6,127 6,455 Exports Percentage Quota 71 86 49 54 40 32 34 Fulfilment Source: Botswana Meat Commission Reports

9.232 Over the years, Botswana has been 9.233 During NDP 9, arable production able to maintain access to lucrative remained predominantly subsistence in international beef markets, due to nature, mainly carried out by small-scale compliance with sanitary and phytosanitary farmers. The exception is a small number of requirements of the export markets. One of commercial farms in Pandamatenga that the major constraints to increased livestock contribute about 80 percent of the domestic production and access to these markets is the production of cereals. threat of trans-boundary and wildlife- 9.234 The key problem of inadequate transmittable animal diseases, such as Foot record keeping at farm level was addressed and Mouth Disease (FMD). Prevention and through capacity building of farmers and timely control of these diseases continues to extension staff on record management, with be a challenge for the sector. technical assistance from the UN Food and Agricultural Organisation (FAO) and the 184 Commonwealth Secretariat. On-farm record Livestock Production books for various enterprises and a brochure on ‘Importance of Record Keeping’ were 9.235 The productivity of cattle and small developed; and some farmers have started stock failed to reach the target levels set for using them. The Ministry has also been NDP 9, as measured by calving and involved in assisting farmers with the mortality levels, off-take and milk development of business plans and assessing production. However, some progress was agricultural business proposals for financial made in increasing calving percentages of assistance by CEDA. both traditional and commercial farms, and reducing mortality in traditional farms compared to NDP 8 (Table 9.9). Table 9.9: Livestock Performance Targets for NDP 9 Commodity Parameters NDP 8 NDP 9 (Target) NDP 9 (Actual) (Actual) Cattle Calving Percentages Traditional Farms 50% 70% 58% Commercial Farms 51% 70% 59% Off-Take Rates Traditional Farms 10% 15% 9.5% Commercial Farms 14% 20.9% 12.5% Mortality Traditional Farms 12% 5% 9% Commercial Farms 4.5% 4% 5% Smallstock Kidding Percentage 100% 150% 79% Off-Take Rate 8% 30% 8% Mortality Rate 36% 15% 22% Milk production(Litres /cow/lactation 2000 4000 2900 Poultry (meat and eggs as percentage 98% 100% 98% of national requirements) Source: Viability and Long Term Development Strategy for Livestock Subsector, March 2006, and Ministry of Agriculture 2009.

9.236 Progress was made in providing houses for the Kang Indigenous Chicken livestock marketing infrastructures, such as Project. the Botswana Ostrich Abattoir and its approval for exports, establishment of the Dibete Ostrich Multiplication Unit, 9.237 The implementation of the Livestock construction of loading ramps and livestock Identification and Trace Back System was marketing centres, expansion of the National started in 2000 as a requirement for export Animal Breeding Laboratory, construction to the European Union. Processing of of milk collection centres (one completed at livestock movement permits and other Pitsane), construction of the Lobu Small transactions, such as change of cattle Stock Field Station phase one, and staff ownership, logging of vaccinations and 185 livestock census at national level, were for small scale producers. continued. The revised Meat Industries Act Commercialisation of the livestock industry was passed in July 2007 to harmonise remains a challenge, with the majority of inspection regulations of meat products for farmers failing to adopt new technologies to slaughter facilities countrywide, and to support new initiatives, such as weaner transfer the regular meat inspection mandate production and stud breeding. to a single authority, the Department of Veterinary Services. Crop Production

9.238 Tsetse-fly was successfully 9.240 Domestic cereal production failed to eradicated from more than 25 000 km2 of the make an impact on national requirements. Okavango Delta using aerial spraying. The Horticultural production improved spraying was extended to some portions of substantially, showing an increase in Namibia, Angola and Zambia in order to productivity, and raising its contribution to minimise chances of re-invasion from national requirement from 24 percent in neighbouring countries. Privatisation of 2004 to an average of 40 percent over the some services provided by the Livestock rest of the Plan period (Table 9.10). The Advisory Centres (LACs) started in July improvement is attributed partly to the 2004, with Gaborone, Lobatse and establishment of farmers associations across Francistown LACs stopping the sale of the country who received effective training livestock feeds and veterinary equipment. and demonstration. The exercise was extended to twelve other LACs in major villages in December 2004.

9.241 The performance of arable farming is

9.239 As mentioned, livestock production still constrained by small farm size, was hampered by persistent outbreaks of inadequate water resources, recurring FMD and other trans-boundary diseases, drought, poor drainage in certain areas, poor such as Newcastle Disease. Recurring soil and crop management and non- drought also caused high livestock mortality. affordability of critical inputs, such as seed, Inadequate slaughter and packaging fertiliser, and pest and disease control facilities for poultry were a major constraint requisites. 186 Table 9.10: Production of Cereals and Horticulture during NDP 9 (Metric Tonnes) Year 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Cereals Cereals National Demand 148,000 196,000 190,000 191,000 177,672 200,133 Annual Production 41,000 24,000 34,000 27,000 43,000 33,841 (27.7%) (12.2%) (17.9%) (14.1%) (24.2%) (16.9%) (provisional) Deficit 107,000 172,000 156,000 164,000 134,672 166 292 Horticulture National Demand 67,000 69, 000 70,000 71,000 74,000 75,000 (Mt) Average 30 31 35 38 35 38 Production/ha Annual 16, 000 18,000 31,000 38,000 38, 000 39 000 Production (24%) (27%) (44%) (53%) (51%) (52%) Deficit 51, 000 51, 000 39, 000 33,000 36,000 36 000 Source: Department of Crop Production Annual Reports

9.242 The NAMPAADD focused on the fruit seedlings per annum, which will cover commercialisation of the agriculture sector the current demand of about 6,000 seedlings through technology transfer and application. per annum. The supply will be increased to It established three Production and Training 15,000 seedlings per annum when it is Farms (PTFs) at Glen Valley, Dikabeya and expected to meet the estimated demand of Ramatlabama to provide practical skills the NDP 10 Plan period. training in arable production to both extension staff and farmers. The PTFs also served to demonstrate the economic viability 9.245 Some agricultural land has been lost of recommended technologies in modern to other uses, mainly for town and urban farming. However, there was minimal village development. In 2000, Government impact from the demonstrations because of directed that all land with potential for the high cost of recommended technology. agriculture production be identified and gazetted in order to conserve it for current and future use. A total of 2.1 million Horticulture, Land and Water hectares (ha) of agricultural land was Development and Management gazetted during NDP 9. Out of this, 579 leasehold farms were demarcated, 343 were

9.243 Two major horticulture irrigation allocated and 154 developed. Of the 627,000 schemes were developed at Glen Valley and ha of arable land mapped during the period Dikabeya on 263 hectares of land. These under review, 407,000 ha are located on projects, in addition to many others owned suitable soils. The process of land gazetting individually by farmers, have increased land will continue during NDP 10. available to horticultural production nationwide to 3,000 hectares. Plant Protection

9.244 The Tonota Fruit Tree Nursery was established and started production of fruit tree seedlings in 2008/09. During the initial 9.246 Pests, diseases and weeds continued stage, the nursery will supply 7,000 assorted to be a major impediment to crop production. Two major outbreaks of corn 187 crickets were experienced during NDP 9, 1999 began during the period under review, resulting in substantial damage to crops. The and 394 agrochemicals were registered, the Integrated Pest Management approach was primary objective being to protect human employed to control various pests. Quelea health and the environment from the adverse birds were controlled using conventional effects of agrochemicals. control methods, such as chemical sprays. Honey Production

9.247 During NDP 9, the Plant Protection Act of 1959 was reviewed, paving the way 9.248 During NDP 9, domestic honey for the Plant Protection Act of 2007. The production increased from 1.2 metric tonnes Act was part of the plan to improve in 2004 to 5.9 metric tonnes in 2008. Yearly provision of phytosanitary services. fluctuations (Table 9.11) are due to poor Implementation of the Agrochemicals Act of forage in some years. Table 9.11: Honey Production (Metric Tonnes) Year 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Target 2.6 5 6.5 8 10 12 Production 1.2 5.9 5.3 8.4 5.9 n.a Source: Department of Crop Production Annual Reports Agricultural Business and Trade provides for market access to some horticultural products, canned fruits, animal

9.249 During NDP 9, Government breeds and equine meat. participated in negotiations for trade agreements at regional and multilateral levels that offered improved market access Cooperatives Development to Botswana producers. The European Free Trade Association (EFTA) offers products 9.250 During NDP 9, Government from the Southern African Customs Union participated in the development of the (SACU) duty and quota free access with National Cooperative Policy which seeks to flexible rules of origin. The SACU-US guide co-operatives on initiating Trade, Investment, Development and economically viable and sustainable Cooperation Agreement provide the enterprises. A study on Organisational framework for formal interaction between Development in Cooperatives and parties regarding investment and Agricultural Management Associations was development aspects. The SADC-European completed during the period and its Economic Partnership Agreement offers recommendations will be used to address the duty and quota free market access to all problems inherent in group-based products (agricultural and industrial goods). commercial activity. The economic and The SACU-Common Market of the financial viability of establishing a central Southern Cone (MERCUSOR), on the other market in Gaborone was conducted and hand, indicated that there was potential for positive outcomes. The market was established and is now operational. This market is intended to also use the non- 188 operational horticultural markets established arable production, are still based on in the early NDPs as satellites and assist in traditional communal and subsistence making them operational. Similarly, farming systems, with limited commercial livestock marketing facilities, developed activity. Poor levels of infrastructure and during NDP 9 with a view to increased off- agro-industrial development perpetuate the take, will also be made operational during low input, low management rain-fed systems NDP 10. typical of the sector. Consequently, agriculture is still characterised by low productivity and production. In view of this, current agricultural policy objectives address Agricultural Research and Technology food security, diversification of the Development production base, increased output and productivity, employment opportunities, provision of a secure and productive

9.251 During NDP 9, this programme environment and conservation of scarce released about 80 percent of the agricultural and land resources. technologies intended for development. These included varieties of cereal, fodder 9.253 The major constraints in the growth and grain legume, crop management and of the sector are farm fragmentation that chemical control methods for problem weed makes provision of infrastructure expensive, species (such as Cynadon and Datura), inadequate resources, recurring drought, stocking rates for some of the rangelands pests and diseases, non-affordability of and fabrication of some basic equipment for critical inputs and low adoption of improved use by small scale farmers, such as planters technologies. In the above context, the and ploughs. Collection of plant and animal sector goals, expected results and strategies genetic resources was undertaken, serving to during NDP 10 will be as follows: initiate animal species conservation. - Goal 1: To facilitate the growth and Improvements were made in the turn-around competitiveness of the agricultural sector time for laboratory analysis, and local seed in the economy; production continued to meet requirements even in years of drought. The completion of - Goal 2: Enhance farmers’ regional infrastructure allowed for the capability and willingness to use decentralisation of research activities to the resources in a sustainable manner and Western, Francistown and Ngamiland ensure prudent use and management of agricultural regions. rangeland resources; and - Goal 3: Provide requisite human resource needs in the agricultural and STRATEGIES FOR NDP 10 related sectors.

9.252 As mentioned, the agricultural sector contribution to GDP has declined over the Support to Household Food Security and years from 43 percent in 1966 to 1.7 percent Small, Micro and Medium Size in 2006/7. Though the sector only provides Enterprises 2.9 percent of formal private sector and parastatal employment, it still plays a 9.254 This strategy is aimed at enhancing significant role in rural livelihoods and in production levels and sustaining livelihoods informal employment. The two main for small scale farmers in rural areas. Small components of the sector, livestock and scale farming is important for rural 189 livelihoods, household food security and investigate the technical and economic poverty alleviation, and also for the viability of investment in technological development of SMME agricultural development, and in the areas of bio-fuel enterprises and cooperatives in both rural and bio-technology and value addition, will and urban areas. Small scale crop production be carried out. is mainly carried out by women, but has potential for the participation of youth and marginalised groups. The strategy focuses Pest and Disease Management Strategy on the provision of subsidised services, inputs, skills and the promotion of clustering 9.258 Around 40 percent of households through service centres to be distributed continue to own cattle. Herd size strategically across the country. distribution analysis from 2000 indicated that about 40 percent of smallholder farmers owned between 1-40 cattle. Unlike cattle, Commercialisation Based on Competitive small ruminants (sheep and goats) cope well Advantage during drought years and are critical for drought mitigation in a country prone to

9.255 This strategy seeks to promote drought like Botswana. The majority of commercialisation in areas of competitive small ruminants are kept by small farmers advantage, and recognises the potential key and their sales and home slaughter are role played by private investment in estimated at about 58 000 and 80 000 increasing agricultural production. Large annually, respectively. scale commercial cereal and oilseed production takes place in the southern 9.259 FMD and other animal diseases Pandamatenga area, with more labour continue to pose a threat to growth and intensive horticultural production taking profitability of the livestock subsector. This place around Kasane, in the Tuli Block and strategy aims to put in place measures that other locations with water availability. ensure that major diseases and pests are kept Attention during NDP 10 will focus on the at manageable levels to prevent loss of potential for irrigated production in the produce and ensure continued access to northern Pandamatenga area and in areas international markets. This will be attained bordering new dams, such as those at Thune through the establishment of buffer zones and Lotsane. along FMD high risk areas, as well as effective management and monitoring tools for disease control.

9.256 Government will strive to provide the conditions to attract private investment through provision of infrastructure such as 9.260 This strategy will seek to improve roads, electricity, water and the response to the outbreak of pests, such as telecommunications and technology the quelea bird, rodents and locusts largely necessary to enhance productivity and responsible for substantial crop yield losses, production. and to ensure environmentally friendly methods are used.

9.257 Government will facilitate access by farmers to credit, markets and insurance, and Institutional Capacity Building will continue to support genetic improvement through crossbreeding, and by hiving off services currently provided by 9.261 The extension system, which government to the private sector. Analysis to provides advice to farmers, is currently very 190 deficient. This strategy is aimed at building Conservation of Agricultural Resources institutional capacity. This will include skills development and technology transfer, and 9.262 Sustainability of agricultural strengthening farmer associations to enable resources, such as soil, range, genetic them to lobby for policy to ensure that resources, water, etc., depends on their good technology development is demand driven. management and conservation. The strategy Other initiatives will include seeks to sensitise and empower farming decentralisation of key services and communities to manage these resources manpower to the farming communities to efficiently and to undertake the ensure that there is readily available support. rehabilitation of degraded areas. The Efforts will also be made to focus on skill strategy will seek to indentify science based development for agricultural professionals understanding of indigenous knowledge according to the market demand. associated with the use of local genetic resources, and to harness the benefits of intellectual property and associated rights according to international agreements. 191 Sector Performance Matrix 9.3: Agriculture Sector Goal Key Baseline: NDP10 Period Targets Performance Indicator Year Achiev- Year 1 Year Year 3 Year 4 Year 5 Year 6 Year 7 ement (2009/10) 2 Goal: To facilitate the growth and competitiveness of the agricultural sector. KPI: Agriculture % 2008/09 1.7 1.7 1.7 1.8 1.9 2.0 2.1 2.2 contribution to GDP Goal: Enhance farmers’ capability and willingness to use resources in a sustainable manner 2008/09 8,600 2,000 4,000 6,000 8,000 1,000 1,200 1,400 KPI: Additions to rehabilitated area (ha) Goal: Provide human resource needs in agriculture and related sectors KPI: Level of skilled agric 2008/09 50 51.4 52.8 54.2 55.6 57.0 58.4 60 labour force - % of total Other Performance Targets Outcome: Increased 2008/09 40% of horticultural production domestic 80 KPI: % of domestic demand 45 50 55 60 65 70 (194,250 horticultural production to (30,000 tonnes) national demand tonnes) Outcome: Increased cereal, oil 15% of seeds and legumes production domestic KPI: % of domestic production 2008/09 demand 20 25 30 35 40 45 50 to national demand (38,000 (127,000 tonnes) tonnes) Outcome: Increased beef 2008/09 production 10% on 10.5 11 11.5 12 13 14 15 KPI: Off-take rate % age average Outcome: Increased small 2008/09 stock production 5% 5.8 6.7 7.5 8.3 9.1 9.9 10 KPI: Off-take rate %age Outcome: Increased poultry production KPI: tonnage of poultry 2008/09 65.0 66.0 67.2 68.2 69.2 70.3 71.4 71.5 products (000 tonnes) Outcome: Increased sale of agricultural products 2008/09 P575 5% 15 27 32 37 38 40 KPI: % growth in sales value million of selected products over base year Outcome: Availability of improved technologies and services 2008/09 48 2 4 3 4 3 2 3 KPI: Number of technologies released Outcome: Improved service delivery 2008/09 60% 63 66 69 72 75 78 80 KPI: Customer satisfaction % 192 SUMMARY OF PROGRAMMES and extension officers will improve the Arable Agriculture Development performance of the subsector. Programme Livestock farmers will be assisted with drilling and equipping of boreholes in areas

9.263 The availability of treated waste where finding water is a problem and water in major cities and villages provides a resource-poor farmers will be assisted good opportunity for its use in irrigation as a through the supply of start-up stock for long term drought mitigation strategy. The small-stock and poultry. majority of small scale farmers lack the necessary inputs for improving productivity Agricultural Business Development and timely execution of farm operations. It Programme is important to assist them with essential implements and inputs such as fertilisers and 9.265 It is important to develop the seed. The programme provides for the livestock industry supply chain through: development of horticultural production, • Increasing cattle off-take (throughput at irrigation schemes, use of waste water for processing plants) by removing supply production and rain-fed cereal and legume barriers posed by the requirements of production and support to farmers to veterinary and police permits and improve their productivity. Specifically, the transport logistics between the markets programme seeks to improve productivity and the production areas; under irrigated and rain-fed agriculture to • Improving product quality consistency commercial levels through technology (to better meet customer needs); and transfer and application. The Government • Reducing the seasonality of supply (to will establish Agricultural Service Centres, improve base load production levels). equipped to provide farm machinery, implements and input support to the farming 9.266 The programme develops strategies community and, where feasible, cluster for the growth of the agricultural industries fields will be provided with potable water. and monitors and evaluates the economic performance of the sector. The policy is to Livestock Development Programme liberalise beef markets and expand the export base of agricultural products. It is

9.264 The programme has components for also intended to build capacity to analyse, improving the quality and quantity of beef provide negotiating support on trade policy, and dairy cattle, small-stock, poultry and and to monitor its implementation. Capacity pigs. It will assist farmers to develop basic building in organisational, business infrastructure for farming and purchase management and technical skills for farmers some of the inputs. The programme also will be provided through this programme. seeks to support the development of the Facilitating market access through poultry (chicken and ostrich) supply chain infrastructure development in production through establishment of chicken abattoirs areas is one of the core programme and parent breeding stock facilities. On objectives. dairy, a nucleus herd to supply dairy farmers with breeding stock and strengthening of technical and management skills of farmers 193 National Plant and Animal Health negative impacts of the harsh environmental Regulatory Services Programme conditions. The provision of services, such as soil and plant analysis, seed production,

9.267 Botswana exports beef to markets conservation of animal and plant genetic that require products of a high standard, with resources under the programme, ensures premiums paid for high quality. Global trade sustainability of production resources. requires management of risks posed by the Research and development is useful for spread of plant and animal diseases, quality policy development, educational purposes control of agricultural products and food and agricultural industry development. safety. About 10 percent of animals that reach BMC have measles, reducing annual Support to Enhance Service Delivery export earnings by about P50 million. It is, Programme therefore, important to train beef cattle farmers on the public health risks and their 9.270 For effective extension service negative impact on revenues. The delivery, it is important to improve programme focuses on building employee capabilities and information flow infrastructure and capacity to manage risks on technologies generated by research. The associated with animal and plant pests and programme is meant to improve the work diseases, on ensuring food security and the place environment and equip extension safe use of genetically modified organisms. workers with cutting edge technology to In addition, measures will be put in place enhance information exchange. that will boost consumer confidence with regard to food of animal and plant origin. 9.271 The programme has four components, viz.: fleet expansion, Agricultural Research and Technology computerisation, office and residential Development Programme facilities and research support. Specifically, it entails development of information

9.268 Low adoption of production technology infrastructure to enable staff in enhancing technologies is also a challenge to outstations to access IT services. It will farmers as their applications are sometimes purchase vehicles for extension officers so expensive and require import of inputs, such that they can improve farm visitation and as seed and chemicals. Recently, farmers improve their work environment through have been demanding improved hybrid construction of integrated offices and cultivars, machinery to substitute for scarce residential facilities. The research support is agricultural labour, and other modern a technical development programme that technologies that can intensify agriculture supports arable and livestock production. and reduce the risks of adverse weather.

9.269 The programme will develop appropriate technologies to mitigate production constraints, in particular, the 194 SECTOR: TOURISM INTRODUCTION

9.275 The “high value-low volume”

9.272 Tourism is a major global socio- strategy avoids having an excessive number economic sector and one of the leading of tourists in a given tourist area by the components in international trade. The judicious use of price (through park entry World Travel and Tourism Council (WTTC) and camping fees and the high price of have estimated that the travel and tourism concessions) and the assurance of quality, industry accounts for 76.1 million jobs offering a unique nature experience, but worldwide and it is projected that by 2017 without compromising the integrity of the these will rise to 86.6 million. Globally, its resource. It has, however, been found to be total economic activity is expected to restrictive. The Tourism Master Plan of May contribute around US$7,060 billion 2000 recommended a modified “high annually. volume-mixed price” strategy. This strategy would enable potential tourists to choose

9.273 In Botswana, travel and tourism from a wider variety of affordable tourism provides 23,000 jobs. This refers to those products within the country. employed directly in tourism transport, accommodation, food and beverages, 9.276 The Tourism Policy will be reviewed recreation, entertainment and travel services. to set the scene for accelerated tourism It excludes the wider travel and tourism growth and a vibrant, globally recognised linked activities in agriculture and tourism industry. Product diversification manufacturing. In 2007, economic activity will help to broaden the tourism base and generated directly by travel and tourism was spread tourism to more geographical estimated at P 9.9 billion. This includes regions, thereby increasing citizen and local incomes and contributions to community participation, and, consequently, government revenues. employment creation and income.

9.274 In the decades after Independence, 9.277 Given the drive toward economic tourism in Botswana developed in a rather diversification, there is need for a systematic uncontrolled manner. To address this, approach towards the product and Government developed a Tourism Policy geographical diversification of Botswana (1990). As the sector grew, it became tourism. It needs to be championed at the evident that the traditional approach had highest level if its potential is to be fully become outmoded. The industry faced issues realised, with the country’s leaders taking of increased regional competition, citizen every opportunity to highlight its participation, etc. There was, therefore, a importance. This should be part of the need to review the policy. Botswana conscious campaign to publicise the accordingly adopted a “high value-low strategic role and benefits of tourism, not volume” model which has served the just to influence decision makers within country well in the past twenty years, both government, but also to stimulate a more in terms of generating tourist numbers, but positive perception across the wider public. especially in terms of preserving the product Tourism activities, which are largely private and ensuring it remained unspoiled. sector based, are affected by many government policies, e.g., for infrastructure, land allocation, immigration and education. 195

9.278 Key activities undertaken by Prior to licensing of enterprises, an Botswana’s Tourism Board and the inspection is carried out to ensure Department of Tourism (located in the compliance with tourism regulations. Ministry of Environment, Wildlife and • Tourism training levy – to upgrade skills Tourism) are: of frontline staff in the tourism industry. • Ecotourism – to develop the tourism A tourism training levy fund is managed product, and facilitate meaningful by a committee comprising members participation of local communities, while from the public and private sectors. ensuring environmental sustainability. • Marketing – promotion and marketing REVIEW OF NDP 9 initiatives have intensified to enhance the competitive advantage of Botswana 9.279 During NDP 9, 18 new sites for as a premier tourist destination. tourist lodges were identified. These sites International marketing representatives are at various locations within the National have been appointed in major source Parks and Forestry Reserves, including the markets such as Germany, UK and USA. Chobe Forest Reserve, Makgadikgadi and The Botswana Tourism Board Nxai Pans Park, Central Kalahari Game participates in major international Reserve and the Kgalagadi Transfrontier tourism promotional events and Park. promotes domestic tourism. • Quality Assurance – grading and 9.280 It is envisaged that more sites will be classification of tourist facilities and availed to investors, particularly in Wildlife development of grading standards for Management Areas. In addition, 39 existing other sectors, e.g., mobile safaris, camp sites throughout the National Parks conference facilities. and Game Reserves are set for privatisation, • Research and Statistics – the and some have been put to tender. While development of the Tourism Satellite privatisation may not add to the existing Account (TSA) quantifies all aspects of inventory of facilities, it is anticipated that travel and tourism demands, from private sector managed facilities would personal consumption to business improve the standard of facilities and purchases, capital investment, contribute to an increase in visitor arrivals. government spending and exports. It then translates this information into 9.281 Table 9.12 provides a breakdown of economic measures of production, such licensed facilities in the country. Since 2003, as GDP and employment. there has been strong growth of citizen • Licensing and Inspection – the owned establishments due to the reservation Department of Tourism continues to of certain establishments (e.g., guesthouses) inspect and license tourist enterprises. to 100 percent citizen owned companies. Table 9.12: Ownership Structure of Licensed Tourist Enterprises Ownership structure 2002 2003 2004 2005 2006 2007 2008 Citizen 178 202 225 223 254 290 296 Joint-Venture 116 135 138 129 129 132 135 Non-Citizen 14 168 179 170 177 177 177 Total 442 505 542 522 560 599 608 Source: Department of Tourism 196 As indicated in Table 9.13, there has owned companies. The bed and been particularly strong growth in the breakfast/guesthouses cater for both domestic and accommodation sector where there is regional markets, low budget international reservation of guesthouses/bed and tourists in transit to tourist attraction areas, and breakfast facilities to 100 percent citizen for conference attendees. Table 9.13: Category of Licensed Operations Category 2002 2003 2004 2005 2006 2007 2008 Accommodation 271 322 353 349 365 384 400 Mobile Operator_a/ 134 140 143 135 149 164 158 Travel Agency 37 43 46 38 46 51 50 Total 442 505 542 522 560 599 608 a/ A tourism enterprise or operation that offers facilities off site only, such as safari or tour operators, and any enterprise that receives and transports travellers and guests. Source: Department of Tourism

9.282 The development and marketing volumes could be targeted at medium to lower of two pristine destinations, namely the prices. Okavango Delta and the Chobe, has received the most concentration, with Tourism Statistics successful results. Kasane/Chobe could have yielded much better results were it 9.284 The WTO defines “Tourism” as not for air access limitations, which in activities of persons travelling and staying in recent years has given Livingstone, places outside their usual environment for not Zambia a competitive advantage. To more than one consecutive year for leisure, date, there are at least four direct flights business and other purposes. A “Tourist” refers per day between Johannesburg and to any person travelling to a place other than Livingstone. that of his or her usual environment for less than twelve consecutive months and whose main

9.283 Due to the eco-sensitivity of purpose of the trip is other than the exercise of these two prime locations, management an activity remunerated from within the place plans are in place to control carrying visited. It follows that direct tourism capacities for sustainable tourism. As a consumption refers to consumption of goods result, the marketing strategy for these and services linked with movement of tourists, two areas has focused on promoting e.g., tourism accommodation, travel ‘high value - low volume tourism’. The organisation services, etc. Botswana Tourism Master Plan highlighted that Botswana should adopt 9.285 The “Tourism Satellite Account (TSA)” multi-faceted strategies for other is a set of accounts and tables based on the geographic locations (modified high methodology of National Accounts, which volume/mixed price). For instance, in presents different tourism economic parameters areas that are not eco-sensitive, such as for a given reference date. These tables refer to cities, villages, some parts of the Central different variables, both for tourism supply and Kalahari Game Reserve, the Kgalagadi demand. A TSA for Botswana, which identifies Transfrontier National Park, etc., higher the value-added arising from tourism, was developed in a report published in September 197 2007. The report highlighted the uniqueness of the product offered and the fact situational analysis of travel and that the tourist areas are not congested. tourism’s current contribution to the Botswana economy. It also made policy Table 9.14: Tourist arrivals by Percent recommendations for Botswana’s Growth tourism to reach its full potential. The report also projected Botswana’s tourism Arrivals Botswana Sub Saharan World growth up to 2017. The following are the Africa highlights of the report. Average 13.7% 4.5% 4.3% Growth

9.286 The number of tourist arrivals in Source: World Travel and Tourism Council Botswana in 2005 was just under two billion, representing an average annual Table 9.15: Actual Tourist Arrivals in Botswana growth of 13.7 percent since 1995, compared to the World and Sub-Saharan Year 1995 1999 2005 Africa average growth of 4.3 percent and Arrivals 521,021 843,314 1,988,027 4.5 percent, respectively (Table 9.14). Source: Department of Tourism The vast majority of tourists visiting Botswana arrive by road. In 2005, more 9.287 In 2005, the average expenditure per than 95 percent of total arrivals were by foreign tourist was USD178 with expenditure road, with South Africa accounting for per day averaging US$54 (Table 9.16). The 39.5 percent followed by Zimbabwe at average length of stay in Botswana was 5.6 32.9 percent. The growth is due to the nights. Table 9.16: Average Expenditure per Foreign Tourist per Day Expenditure Business Tourist Leisure Tourist Visiting Friends & Relatives Average Per Day USD84.00 USD73.00 USD33.00 Source: World Travel and Tourism Council

9.288 The mode of transport usage in dependent on the realisation of projects such percentage growth per annum by 2005 was as as airports infrastructure, and deriving the follows: air (4.5 percent), road (95.4 percent), best economic value from FIFA World Cup and rail (0.2 percent). The role of air transport 2010, from the No. 1 Ladies Detective is quite small. The numbers arriving by air Agency movie book series, and tourism have actually decreased over the years due to diversification development projects. The air access constraints and excessive air fares. FIFA World Cup 2010 teams in Botswana will facilitate Botswana’s exposure in the international media, thus saving money that

9.289 According to the TSA, “Travel and would otherwise have been spent with Tourism” contribute 10.6 percent of total international advertising agencies. employment and 16 percent of non-mining GDP. Total travel and tourism demand is forecast to average 5 percent growth per annum over the Plan period, exceeding that for the Sub-Saharan Africa and the global average. Achievement of these forecasts is 198 SECTOR STRATEGIES 9.293 The promotion of citizen entrepreneurship in tourism, and the

9.290 The challenges that face the Botswana diversification of the tourism product from Tourism industry are: wildlife, will continue to be the main focus of the sector’s development efforts. There will Product development and geographical be more emphasis on community based diversification; tourism to widen the beneficiary groups. • Marketing intensification; There is also need to pursue tourism linkages • Infrastructure development; with industries such as mining and agriculture, through activities such as mine • Regional competition; tours and cattle ranch stays. • Citizen participation in tourism as investors;

9.294 As a way of diversifying the tourism • Improved service delivery; product, a cultural and heritage tourism development programme will be initiated to • Domestic tourism; expose visitors to local traditions, lifestyles • Enhancing the image of the country. and cultural resources. A National Eco- Tourism Strategy has been developed to support product diversification. The Strategy

9.291 In order to address the above will ensure that the planning, development challenges, Botswana’s tourism should adopt and management of tourism in Botswana by the following strategies. the Botswana Tourism Board is consistent with the concept of sustainability. Product Development and Diversification Strategy Capacity Building and Skills Development

9.292 While there is some evidence that 9.295 Tourism success depends heavily on product diversification is taking place, the personalised service and hospitality. An process of diversification is slow. For appropriately skilled and educated workforce Botswana to expand its market reach and is a key success factor for tourism. A share, there is need for further development, hospitality training school of international diversification and expansion of tourism standard will be established in partnership attractions and experiences. Substantial and with the private sector. sustainable development of tourism in

9.296 Citizen participation and involvement Botswana requires the expansion of tourism in the tourism industry will be encouraged products , either by increasing existing and incentives introduced to promote local capacities and/or adding new products. New tourism ownership and entrepreneurship. It is product segments will lead to the opening up proposed that tourism be introduced of new regions for tourism, thus reducing the throughout the schools programme, with a pressure on the northern part of the country. special focus on the value of nature, wildlife The identification of these regions will follow and their sustainable use. that of new products.

9.297 Through the Community Based Natural Resource Management policy, every 199 effort should be made to develop the capacity of local communities to plan, manage and Marketing and Promotion benefit from their resource base. Joint ventures between local and foreign tourism 9.302 International marketing and entrepreneurs will be strongly encouraged. promotion still present major challenges for the industry. Because of limited funds, Botswana’s cannot compete effectively in the Investment Promotion market lags behind its competitors.

9.298 Foreign investment in tourism is 9.303 International tourism competition is highly valued and should be encouraged in fierce. Competitor destinations are becoming synergy with efforts to promote local tourism increasingly equipped and skilled at ownership and entrepreneurship. In order to expanding their market shares. Botswana will increase tourism investment and business adopt an aggressive marketing approach to expansion, the tourism sector will collaborate maintain and expand its market share. The with existing financial institutions such as Botswana Tourism Board has appointed CEDA to establish financing and technical overseas marketing representatives and support for tourism enterprises. Currently, continues to participate in world tourism financial institutions do not support tourist events, including tourism fairs. Market related businesses strongly. research and intelligence will be improved for the country to remain in touch with global

9.299 Consideration will be given to the market trends. A tourism brand identity will establishment of a one stop point of entry for be developed and applied as an overarching prospective tourism entrepreneurs where they theme and visual identity to be used by all will be able to submit business proposals and tourism stakeholders. be directed to the relevant authorities.

9.304 The promotion of domestic tourism

9.300 Investment in tourism requires has not yet yielded the expected results. enhanced land use planning, for example, in Several factors are responsible for this, the Makgadikgadi Pans and the Kgalagadi including inadequate awareness among locals Transfrontier Park, highlighting land about tourism. The relatively high costs of the availability for tourism development. In industry make leisure travel unaffordable for collaboration with the Ministry of Lands and most citizens, and account for the apparent Housing, a tourism land bank will be lack of interest in promoting domestic considered to make suitable land available. tourism. This will offer convenience to prospective tourism investors as serviced land will be 9.305 Domestic marketing with special readily available to them. emphasis on short breaks and weekend packages will be increased to encourage Batswana to

9.301 There is need to diversify tourism explore their own country. Concessionary rates investment geographically to reduce for citizens (which already exist in entry fees to concentration on the fragile areas in the national parks) should be introduced and northern part of the country. This will benefit marketed to promote domestic tourism. Public other areas and increase participation and awareness and education campaigns should be involvement of local communities. intensified. Batswana should also be encouraged to visit other countries so that they become ambassadors of their country. 200 Planning and Regulation generations to do so, is fundamental in tourism development. Since pristine,

9.306 The regulatory framework will need authentic natural and cultural experiences are to be strengthened. Regulation of at the core of the tourism brand, Botswana environmental management processes and will strive to become a world leader in natural practices will be developed. Tourism and cultural resource management. development plans and guidelines for all key tourism districts will be formulated. Tourism 9.308 Therefore, responsible tourism licensing and grading systems will be practices will be promoted and businesses improved, streamlined and harmonised to that employ such practices will be recognised. avoid duplication and to focus on entry level Environmental scoping will be conducted requirements such as safety and hygiene. where land is allocated and promoted for tourism investment to ensure coverage of Environmental and Cultural Resource environmental sensitivities and reduce Management duplication of efforts by bidders. As mentioned, management plans are in place to

9.307 The concept of tourism sustainability control carrying capacities for sustainable enabling Batswana to benefit from their tourism in the Okavango and Chobe due to natural and cultural heritage, without their eco-sensitivity. compromising the ability of future Sector Performance Matrix 9.4: Tourism Sub sector Goal: To increase tourism contribution to the GDP from 5 percent to 12 percent. Sector Outcome/ KPI NDP10 Period Targets Output Achieve- Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 ment (2009/ NDP 10 2008/09 10) Target Tourism Share of GDP 5% 6% 7% 8% 9% 10% 11% 12% Contribution to GDP Outcome 1: % increase in 5% 6% 7% 8% 9% 10% 11% 12% Increased Tourism tourism Revenues revenues Output 1: No. of 5 6 6 6 7 8 9 10 Diversified tourism ecotourism products enterprises Output 2: % increase in 5.4% 6% 6.5% 7% 7.5% 8% 9% 10% Increased private private sector sector involvement involve-ment & FDI Output 3: No. of tourists 1.9 ml. 2.3 ml. 2.3 ml. 2.5 ml. 2.5 ml. 3.0 ml. 3.5 ml. 4 ml. Increased number of tourists Output 4: No. of jobs 23 000 26 000 29 000 32 000 35 000 38 000 41 000 30 000 Increased job created by opportunities tourism industry Source: Ministry of Environment, Wildlife and Tourism 201 SUMMARY OF PROGRAMMES encouraged to utilise natural resources in their Tourism Product Development and areas and to be fully involved in the Marketing Programme development and promotion of cultural tourism. The programme will benefit all types

9.309 Botswana has diverse tourism of tourists, i.e., domestic, regional and products that need to be developed and international. It will also benefit the local marketed to diversify the country’s communities through their direct involvement economy. The tourism industry is currently in the tourism industry, venturing into predominantly based on wildlife and tourism-related projects and by citizens being wilderness, whose concentration is in the employed by the tourism enterprises. This northern part of the country. This presents will enhance appreciation of tourism as a great potential for diversification into other concept and the conservation of natural products, such as cultural and heritage resources. However, there is need for a tourism. To expand cultural and heritage deliberate policy effort to intensify skills tourism, community based initiatives will be development for tourism industry personnel strongly supported so that local communities and build capacity of community-based become more involved in the travel and organisations that participate in tourism. tourism industry. Local communities will be SECTOR: LABOUR INTRODUCTION

9.310 The labour sector supports the compensation. The sector seeks to promote attainment of sustainable economic growth harmonious industrial relations, one of the through putting in place a set of laws, key elements necessary for creating a regulations and policies which fully embrace conducive business environment for foreign the principle of openness. Labour laws investors and professionals. ensure harmonious and peaceful industrial relations, resulting in enhanced productivity 9.312 In recent years, the sector has been and rapid socio-economic growth and characterised by growth of trade unions in development. both the public and private sectors. This process was facilitated by the changing of

9.311 The Ministry of Labour and Home labour legislation after the ratification of Affairs (MLHA) is responsible for labour international labour standards in 1998. This administration services, which include has resulted in major changes in domestic labour inspections, trade disputes law, especially since 2003. resolutions, social security protection, issue of residence and work permits, registration and placement of job seekers, promoting good industrial relations, occupational health and safety, and worker’s 202 REVIEW OF NDP 9 been implemented. Satellite labour offices have been established in those locations, Labour Laws except in Palapye where a District Labour Office has now been established.

9.313 Investors and other stakeholders have criticised Botswana’s labour laws for 9.316 Changes were proposed in being restrictive, thus making it difficult for legislation, including proposals to merge investors to invest in Botswana. There is a work and residence permits. As a result, concern that it is difficult to obtain work and work and residence permits will be issued residence permits in Botswana, and that this by one office, thus improving service makes the import of foreign professionals delivery. Proposals were submitted to the difficult. In response to these concerns, the Attorney General who has drafted the bill Government, in consultation with relevant which is being finalised at the MLHA. stakeholders, has reviewed relevant laws, Additional improvements are envisaged to regulations, procedures and processes. As a help to reduce further the turnaround time. result, the work permit processing period Labour Unionisation has been reduced from 6-12 months before December 2006, to 14 days. These measures 9.317 During NDP 9, there has been have helped to reduce the delivery time for significant growth in unionisation of the investors wishing to start businesses in public sector as a result of enabling Botswana, thus helping to create a more legislation, namely the Trade Disputes and favourable environment for foreign direct Trade Unions and Employers Organisations investment inflows and rapid socio- Act. This was meant to facilitate the right to economic growth. organise and engage in collective bargaining arising from ratification of relevant

9.314 With the adoption and international conventions. The Employment implementation of computerisation projects Act was also reviewed to protect workers’ and the establishment of a ‘One Stop claims in the event of the insolvency of the Investment Shop’ at BEDIA, it is envisaged employer. Before 2005, there were 29 that the work permit processing time will be unions, all in the private sector. Between further reduced. Government will continue 2005 and 2007, an additional 22 new unions to review its labour legislation to ensure that were formed. Currently there are 54 labour laws create a conducive climate for registered trade unions, one federation of business and entrepreneurial development. trade unions and one employers’ organisation. Of the 54 trade unions, 34 are

9.315 The computerisation of the functions public sector, and 20 are private sector. of the Department of Labour and Social Security has been initiated to address the The Minimum Wage processing of work and residence permits. Implementation will take place during 9.318 The Revised National Policy on NDP 10. The establishment of a second Incomes, Employment, Prices and Profits Immigrants Selection Board in Gaborone was amended in 2005 to introduce minimum has also contributed to the reduction in the wages for agricultural and domestic turnaround time for work permit processing. employees. The objectives of the revised The planned decentralisation of labour policy are to moderate wage growth as a administration services to sub-districts in means of enhancing international Bobonong, Palapye, Ramotswa, and Kanye, competitiveness, to spread the benefits of to bring services closer to the people, has development as widely as possible, and to 203 expand productive employment the Court to hear cases which could not be opportunities as a means of raising incomes mediated within 30 days exacerbated the and alleviating poverty, and minimising problem of a backlog of cases. The Court, unemployment. It is proposed to conduct a on average, registered 150 cases a month study on the impact of minimum wage rate against the disposal of 20 cases per month. adjustments on employment levels, which There was a shortage of court rooms, which will highlight the effects on both would be addressed by the new Industrial developmental and economic factors. Court building which is now complete. However, data switches are to be installed Labour Inspections before the building can be occupied. With the additional courtrooms, it is expected that

9.319 In the past, there has not been the backlog will be reduced. enough capacity to conduct a preventive programme of labour inspections, and there Child Labour was weak coordination of labour inspections. To address this lack of 9.322 The Labour Force Survey of 2005/06 coordination, a labour inspectorate division indicated that around 38,000 children (aged was established. Since a dedicated 7 to 17) were engaged in economic inspectorate for labour inspections is now in activities. Most of these were found to be in place, more inspections have been the agricultural sector. Child labour can be conducted, which has assisted in curbing harmful and often interferes with education and reducing trade disputes. of the children. A multi-sectoral approach to implement the Child Labour Action Plan has been adopted by the relevant Ministries. The Trade Disputes first phase of the Elimination of Child Labour Project started in 2004 and ended in

9.320 Improvements were made in the 2008. The second phase to deal with the trade dispute resolution system in order to Action Plan commenced in 2008. The action make it simple, prompt and more accessible. programme on the elimination of child Most importantly, the changes in the system labour has been adopted by relevant resulted in the establishment of a panel of stakeholders, and a new phase to the project mediators and arbitrators, and the was launched in October 2008 to implement introduction of arbitration as a method of the action programme. resolving trade disputes. Mediation steps have been reduced from two to one, with the STRATEGIES FOR NDP 10 requirements for lawful industrial action outlined. As a result of these changes, the 9.323 The sector goal for NDP 10 is to turnaround time for mediating trade disputes improve industrial relations and enhance has been reduced from six months to 30 social harmony. This is to be done through: days. • The strengthening of the labour inspection system;

9.321 The amendment of the Trade • Strengthening of social dialogue Disputes Act in 2004 provided for the structures (i.e., the forums that enable Industrial Court to have jurisdiction over employers, government and trade unions industrial disputes involving public officers. to discuss matters of common interest in This led to an increase in the number of relation to employment issues); cases that were received and to an increased • The planned establishment of an backlog. The expansion of the jurisdiction of independent dispute resolution service; 204 • The review of labour laws; for the Department of Labour and the • The implementation of an action Industrial Court. programme on the elimination of child labour; and • The development of an HIV/AIDS and employment policy. Labour Inspection

9.324 The proportion of national coverage 9.327 There are a limited number of labour in terms of labour inspections, trade disputes inspectors, usually two per district labour and turn-around time will be used as office, which results in their being unable to performance indicators. conduct labour inspections as frequently as required. Best practice in this area indicates Labour Administration a move to routine inspections, and other labour inspections at the request of

9.325 Computerisation of the labour employers or employees. At the moment, administration system is planned during inspection is done only on a request basis. NDP 10 to improve service delivery. As a result, inspections have been operated Although the provision of the Trade Dispute reactively since businesses are inspected Act requires that trade disputes should be where there are reports of transgression of settled within the legislated 30 day period, the law. To address this, the capacity of the Department of Labour continues to labour inspectors will be strengthened in explore alternative dispute resolution terms of quality and quantity to allow them mechanisms (mediation and arbitration) to to perform their duty effectively. Labour assist in reducing processing time of inspections will be planned and will be used disputes. as a preventative measure to help avoid possible industrial disputes.

9.326 Consideration will be given to making the dispute resolution function Decent Work Country Programme autonomous. This means establishing a dispute resolution system to replace what is 9.328 With the assistance of the currently done by Industrial Relations International Labour Organisation (ILO), Officers and part-time mediators and Botswana is working on a “Decent Work arbitrators from the private and parastatal Country Programme”. The Decent Work sectors. Government, in partnership with the Country Programme involves safeguarding private sector, plans to create a new workers rights, promoting social protection, institution to deal with such matters, but social dialogue and employment creation. outside government. This is imperative Effective social dialogue among workers, because public officers now have the right to employers and Government will be report their trade disputes in the existing established to address issues of common trade disputes resolution system. The current concern and resolve emerging issues arrangement, where public officers mediate amicably. This will necessitate the and arbitrate trade disputes emanating from strengthening of structures for social public officers, brings into focus issues of dialogue and determining the agenda for impartiality and fairness. The number of dialogue. The social protection system will trade dispute cases being registered is likely be reviewed to enhance social security to continue to rise with the unionisation of coverage through comprehensive social the civil service, which is a challenge both security policy and legislation. It is envisaged that the social security policy and 205 legislation will cover both the contributory social insurance fund and social safety nets. Trade Dispute Resolution All these are expected to contribute to harmonious industrial relations, resulting in 9.331 The timely resolution of disputes, enhanced productivity and a positive impact and the quality of the decisions rendered by on social harmony. the Industrial Court, should create an unequivocal landscape in the area of labour Legislative Review law, labour relations and employment law, and assure investors of certainty and value

9.329 Particular attention will be paid to for their investments. fine tuning the labour laws to the provisions 9.332 During NDP 10, the Industrial Court of the ILO Conventions ratified by will continue to discharge its mandate by Botswana. The Employment of Non- focusing on the following critical objectives: Citizens Act will be reviewed in order to case backlog reduction, building and address issues that hamper Botswana’s expansion of information sharing competitiveness, such as restrictive labour capabilities and improvement of existing regulations and the poor work ethic in the court infrastructure and houses to national labour force. An action programme accommodate judges. The expansion of the on child labour will be developed to ensure new court building, and the establishment of compliance with international obligations on a permanent court in the north of the the Minimum Age for Admission to country, will increase the accessibility of the Employment, and the Elimination of the Industrial Court. A permanent court in the Worst Forms of Child Labour Convention. north will ensure that cases are heard daily and this should increase the speed of

9.330 The Revised National Policy on disposal and reduce the turnaround time. Incomes, Employment, Prices and Profits The ICT projects will increase the capacity introduced a minimum wage in the to share information with the public, agricultural and domestic service sectors in including development of a website and order to further protect vulnerable workers labour law library, while the Computerised from financial exploitation. The Records Management System should implementation of the Manpower improve efficiency. Court forms and Development, Training and Localisation precedent, decided cases, legislation and aspect of the policy will ensure that there is other information will be availed to the a steady increase in the supply of skills in public on the website. Fleet expansion and order to mitigate the impact of shortages of the Judges’ residences will provide support skills in the labour market. to the main objectives and projects. 206 Sector Performance Matrix 9.5: Labour Sector KPI NDP10 Period Targets Outcome/ Achievement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Output 2008/09 (2009/10) NDP10 Target Outcome 1: Timely and quality service delivery Output: Turn- Trade Disputes 30 days 30 30 30 30 30 30 Informat-ion around = 30 days systems time Work Permits = Automated 14 Days 14 days 10 7 5 5 5 5 Business Worker’s Processes Compensation (Total) = 30 days 30 days 25 20 15 10 10 10 Outcome 2: Indust-rial Social Harmony action and trade disputes Output 1: Number of Trade Disputes 7,800 7,600 7,400 7,200 7,000 6,800 6,600 Improved trade = 8,000/annum industrial disputes relations Source: Ministry of Labour and Home Affairs PROGRAMME SUMMARIES Labour Administration System

9.333 Sustainable and rapid economic growth is dependent on private sector investment in the country. To attract more investors, there is need for good industrial relations, characterised by low industrial action, a good dispute resolution system, an effective labour inspection system, and speedy issue of work and residence permits. Major challenges are the poor work ethic in the national labour force and restrictive labour regulation. Measures to expand and strengthen infrastructure and capacity will be carried out to enhance service delivery from the labour administration system. 207 CHAPTER 10 INFRASTRUCTURE AND UTILITIES NDP 10 Goal and dispersed population and the scarcity of

10.1 The sectors presented in this Chapter water and appropriate conventional are linked to the Key Result Area (KRA) for construction materials, make the per capita Sustainable Economic Growth presented in cost of infrastructure provision and Chapter 9. They will support the National maintenance relatively high. For this reason, Development Goal aimed at providing a Botswana is faced with a difficult challenge well developed and reliable system of in devising appropriate strategies for infrastructure and utilities. improving provision and maintenance of

10.2 Critical areas to achieving this NDP infrastructure. goal are: Transport and Works, Water, Energy, Lands and Housing. This goal Goal Performance during NDP 9 significantly contributes to the growth of other sectors such as agriculture, tourism, 10.6 Project implementation for trade and industry, minerals, health, etc. infrastructure construction and commissioning is a major challenge.

10.3 This Goal looks at the development Between 60 and 80 percent of NDP 10 of infrastructure and utilities, their operation infrastructural projects is a carryover from and maintenance and the overall impact on NDP 9. This is a clear indicator of the service delivery. A well developed and implementation capacity challenges reliable system of infrastructure is vital for experienced during the course of NDP 9. sustainable development and economic Major difficulties were experienced in the growth. The World Bank has estimated that implementation of a number of projects, for a 1 percent increase in a country’s example: Serowe Stadium, Ntimbale Dam infrastructure stock is associated with a 1 and Goodhope Secondary School. percent increase in the level of GDP.

10.7 Consequences of implementation

10.4 As a land-locked country, problems include; low generation capacity Botswana’s physical infrastructure is an in the electricity sector (75 percent of integral part of its regional and international electricity is imported); a high water supply competitiveness. Productivity in virtually deficit in many regions in Botswana (up to every sector of the economy is affected by 35 percent water deficit); and a low the quality and performance of the country’s coverage of transport infrastructure (roads, transportation, water, power supply and rail, air, etc.). Serviced land for both other types of infrastructure. Access to and residential and commercial purposes was efficiency of infrastructures is therefore of also in short supply. paramount importance to Botswana’s competitiveness. Goal Strategy for NDP 10

10.5 However, the large size of the 10.8 Attainment of the NDP Goal for a country, coupled with the relatively small well developed infrastructure involves issues 208 of access, quality and efficiency. The for Botswana. These are already being infrastructure networks vary in relation to tackled through a combination of public and their progress in achieving satisfactory levels private investment. It will be vital to ensure in these aspects. Some infrastructure that tariff policy provides the basis for networks have reached clear watersheds in sustainable power supplies over the long terms of their evolution and policies. term. Institutional reforms for the provision and maintenance of the nation’s infrastructure 10.11 In the water sector, institutional during NDP 10 will relate to the relative roles reform to support continuing public of, and the relationships between, the public investment will be key to the development of and private sectors, with ever more emphasis the sector. Existing duplication and confusion being placed on increasing the role of the in relation to service delivery responsibilities latter. will be addressed through an institutional framework which is in line with best

10.9 Historically, substantial amounts of international practice. There will be public funds have been invested in fixed separation of resource management functions assets required to provide roads, power, water (policy making, implementation monitoring) and other basic services. In the case of roads, from service delivery activities to ensure that it is time to refocus public policy and funds organisations concentrate on and develop away from the creation of fixed assets, to the their core competencies. The regulatory effective maintenance of those assets, thereby regime will be strengthened. ensuring the quality and efficiency of transport infrastructure. Institutional change 10.12 Lands and housing are sectors where to increase the role of the private sector, the role of the private sector will be expanded through the expansion of practices such as through appropriate policies and measures. outsourcing in road maintenance, will be Increased involvement of the private sector in pursued during NDP 10. supplying serviced land for residential and commercial purposes, and in providing housing which is both publicly and privately

10.10 In the case of power supplies, global financed, will be vigorously pursued. and local demand for low-cost regional supplies from South Africa have created short and long term power access problems SECTOR: TRANSPORT AND WORKS INTRODUCTION volume of cargo will increase by 25 percent to 5 million tonnes during NDP 10. Public provision of transport and works infrastructure plays a key role in supporting 10.13 Botswana’s public sector transport major economic sectors such as tourism, programme entails the construction and trade and agriculture. Presently, about 4 effective maintenance of new roads, the million tonnes of cargo is carried annually rehabilitation/reconstruction of existing by Botswana’s transport infrastructure ones, construction of weighbridges, and the network, and it is extremely important for provision and rehabilitation of bridges. this to move easily and speedily through the Without physical access to resources and network system. It is planned that this markets, growth stagnates and poverty 209 reduction becomes difficult to sustain. In quality at ≤60 percent and buildings quality Botswana, roads play a particularly at ≤50 percent of their respective important role in view of the fact that their expectations). Infrastructure maintenance point-to-point connectivity is necessary to has been of serious concern over the complete the networks for other transport previous Plans. During NDP 10, there will modes. be strategic shifts in policy towards sustaining the quality of roads and other key infrastructure facilities through enhanced

10.14 There has been a phenomenal growth road maintenance programmes, carrying out in the length of the paved road network institutional reform and more involvement since Independence, when there were of the private sector, particularly in the virtually none roads. At present, the Public maintenance area. Highway Network (PHN) consists of some 18,327 km of road, which has been classified on a functional basis into four REVIEW OF NDP 9 categories, namely Primary, Secondary, Tertiary and Access roads. Central Government is responsible for Primary and Road Transport Secondary roads, which consist of about 9,000 km. Out of this total kilometrage, 10.16 The vehicle population in Botswana 6,500 km are paved and the remaining 2,500 continued to grow at an annual average rate km are unpaved. The total network under of 9 percent during NDP 9. Overall, the Local Authorities comprises 14,611 km of national fleet grew roads (this includes 9,327 km of PHN and internal roads), of which 1,165km of road is by more than 50 percent from 204,228 to track, 6,013km is earth, 5,500km are gravel 319,459 over the NDP 9 period. The profile and 1,934 is tar roads. of the vehicle fleet is as follows (Table 10.1):

10.15 The reliability of the infrastructure is presently at unacceptable levels (roads Table: 10.1: Vehicle Population Profile (percentage) End NDP 8 (%) End NDP 9 (%) Private passenger vehicle 38.5 45.9 Public service Passengers 4.1 4.4 Light commercial vehicle 41.3 33.7 Heavy commercial 5.7 6.2 Other commercial 7.6 7.1 Construction vehicle 2.8 2.7 Total 100 100 Source: Ministry of Works and Transport

10.17 Vehicle statistics indicate that there classes (other commercial and construction) was a significant drop in the proportion of experienced a slight drop too. Only private light commercial vehicles, while other passenger vehicles experienced a significant 210 increase. The share of heavy commercial services, i.e., in land use and transport vehicles and public service passenger planning, to incorporate the requirements of vehicles also grew slightly. This may be passenger transport, and non-motorised attributed to the importing of substantial traffic (pedestrians and cyclists). numbers of private passenger vehicles from East Asia during NDP 9. 10.22 Amendments to the Road Traffic Act, to strengthen the legal provisions to

10.18 Public service vehicles during penalise poor driving and driving under the NDP 9 have experienced a slight increase as influence of alcohol, have been under a proportion of the national vehicle consideration by Government. The population. However, the public transport amendments would introduce a system of modes remain the same, where the public cumulative penalty points on a person’s has a choice of midi-buses and buses for driving licence, and strengthen enforcement long distance and combis, midi-buses, taxis in respect of driving under the influence of and call cabs for local trips. The passenger alcohol and non-payment of fines. Provision public transport system remains largely would be made for use of traffic cameras. based on regulated competition. DRTS is also reviewing the Road Transport Permits Act with a view to updating the Act

10.19 During NDP 9, the focus of during NDP 10. government road transport activity was on facilitating movement of goods and people, 10.23 Following a study during NDP 8, the consumer protection and security, road planned introduction of metered taxis has safety and customer service satisfaction. not yet been implemented. DRTS plans to update the study with a view to introducing

10.20 However, many of these activities metered taxis during NDP 10. were affected by capacity constraints in the Department of Road Transport and Safety 10.24 The computerisation of transport (DRTS). Implementation has been affected permits and road worthiness certificates, by budgetary constraints, shortage of skills, together with the automation of driver poor performance by contractors, obsolete theory tests, were undertaken. The legislation, and shortage of office computerisation of Dibete weighbridge was accommodation. An institutional capacity also completed. These projects were review of the DRTS evaluated its operations intended to curb the rampant fraud and and structure with a view to improving its corruption associated with the issue of these performance. This review was conducted documents. Upgrades were initiated and under the auspices of MWT’s Organisation completed on the driving licence system and Methods Review, and was completed in (DLS) and public officers identity document 2008. (POID) systems, as well as the vehicle registration and licensing systems (VRL).

10.21 A major task for NDP 9 was the These upgrades were carried out to address preparation of an Integrated Transport emerging needs as well as to maintain Policy. This task, which was led by Ministry efficient and effective service delivery. of Works and Transport (MWT) headquarters, began in 2006 and was 10.25 The planned enhancements of the expected to be completed by the end of driving licence system (DLS) to October 2009. Efforts were made to enhance accommodate the demerit point system participation of local authorities in policy could not take off due to a lack of provisions and decision making with regard to transport in the Road Traffic Act. The Integration of 211 the Transport Management Information NDP 9 a national road safety strategy would System was deferred pending the be developed. This will be completed during computerisation of all the required business NDP 10. Other continuing road safety processes. activities focused on traffic law enforcement, road safety education,

10.26 Bilateral road transport agreements, improvement of driver training and initiated with Zimbabwe and Zambia during licensing, establishment of driver training NDP 8, were concluded during NDP 9. A facilities, and establishment of vehicle Southern African Customs Union (SACU) testing stations to facilitate the introduction agreement, with provisions relating to of mandatory roadworthiness testing for transport, was also initiated and concluded vehicles every three years. during NDP 9. Their purpose is harmonising and standardising procedures on road 10.28 Road traffic safety is still a serious operations and law enforcement. concern in the country, in spite of a marked improvement in the number of accidents per

10.27 Road accidents have continued to be 10,000 vehicles and number of casualties a major concern. It was intended that during per 100,000 population (Table 10.2). Table 10.2: Road Safety Trends (Botswana) Fatalities /10000 registered Fatalities / Crashes / Casualties / Reg. Vehicle Crashes / vehicles 10000 licensed YEAR Accident Casualty Fatalities / Fatal 1000 Vehics. 10000 Pop 1000 Vehicle drivers Est. Pop 100 000 Pop 2000 16313 7790 529 154000 1642339 105.9 99.3 50.6 34.4 32.2 34.4 2001 17125 7945 526 166405 1680863 102.9 101.9 47.7 31.6 31.3 31.6 2002 18610 8014 520 186865 1721204 99.6 108.1 42.9 27.8 30.2 27.8 2003 18329 7969 557 204228 1762512 89.7 104.0 39.0 27.3 31.6 27.3 2004 18136 7840 532 225182 1715355 80.5 105.7 34.8 23.6 31.0 23.6 2005 17522 7069 450 246681 1727372 71.0 101.4 28.7 18.2 26.1 18.2 2006 17035 6935 429 267117 1739556 63.8 97.9 26.0 16.1 24.7 16.1 2007 19487 7639 497 293755 1756650 66.3 110.9 26.0 16.9 28.3 16.9 Source: Ministry of Works and Transport

10.29 The current number of accidents is a Roads cause for concern. Botswana compares unfavourably with its neighbours, not to 10.30 In the roads sector, over 60 percent mention the world leaders in road safety. of the planned NDP 9 road and bridge The current number stand at 17 people killed projects are at various stages of per 10,000 vehicles and 28 per 100 000 implementation. Completed roads and population, compared with South Africa bridges include Mopipi–Rakops, which stands at 14 people killed per 10,000 Letlhakeng–Dutlwe, Nelson Mandela and vehicles and 26 people killed per 100,000 Lemmenyane Drive, Mahalapye–Kalamare, population. Sekoma–Kokotsha and Dibete–Mahalapye, Thamaga Bridge, Tlokweng Old Bridge, Moshupa Bridge and Lotlhakane Bridge. Ongoing roads include Dutlwe– 212 Morwamosu, Middlepits–Bokspits, 10.33 A review of the Public Roads Act is Tshabong–Middlepits, Gaborone-Tlokweng, underway, which is expected to lead to Francistown-Ramokgwebana and Gaborone- amendment of the Act during NDP 10. Metsimotlhabe. Factors contributing to delays in implementation include budgetary Public Building and Engineering Services constraints, non-availability of appropriate manpower to be able to manage the 10.34 One of the priorities for public implementation of projects, inadequate building provision during NDP 9 was to resources within the industry (contractors overcome fragmentation between the former and consultants) to effectively implement Department of Architectural and Buildings projects due to demand by major regional Services and the Department of Electrical projects such as the 2010 World Cup, long and Mechanical Services. These two procurement processes, capacity constraints departments were merged to create a single within the Roads Department and poor unified department called the Department of project management. Building and Engineering Services (DBES).

10.31 During NDP 9, the Roads 10.35 DBES achieved partial success in Department expanded the labour-based piloting the establishing of ministerial routine maintenance programme that had technical units or dedicated ministerial been piloted in NDP 8. The roads covered teams in six ministries that have a sizeable included Ramatlabama–Ramokgwebana, number of building projects. The full Lobatse–Jwaneng, Gaborone–Kanye, potential of the dedicated teams will only be Gaborone–Tlokweng Border Post, realised once a range of professional skills is Gaborone–Molepolole, Francistown– available in the units. Recruitment of Mathangwane, Serule–Sefhope, Kgagodi– professionals should be in place before the Sefhope; and Palapye–Seleka. end of 2009.

10.32 The Access Road Policy was revised 10.36 In NDP 9, all consultants engaged by during NDP 9 and cost recovery charges DBES to provide consultancy services were introduced for some activities, such as signed appropriate agreements and processing of wayleaves and sale of tender conditions of contract. With effect from 1st documents. Fuel taxes have continued to be July 2007, the form of contract entered into adjusted toward the approximate variable was in accordance with the Public road maintenance costs on paved roads in Procurement and Asset Disposal Board accordance with the recommendations of the (PPADB) prescribed standard conditions of Domestic Road User Charges Study of contract embodied in the standardised 1999; but total revenue from user charges bidding packages. still covers only about a third of the maintenance required. A Road Tolling 10.37 The process of devolving building Feasibility Study was also carried out during maintenance services to all ministries and NDP 9, and it was subsequently decided that independent departments started in earnest tolling was not feasible at current traffic during the NDP 9 plan period. The initial levels. Documentation of best practices in stage of the process, which entails defining the form of guidelines, such as the Road the appropriate policy and/or legislative Maintenance Manual, is continuing. framework, was completed during the NDP 9 plan period. Implementation of the framework will, however, spill over into NDP 10. Nonetheless, during NDP 9, minor 213 maintenance funds were devolved to 10.42 To promote more responsible vehicle ministries, which allowed them to undertake usage, CTO was expected to decentralise minor maintenance. financial responsibilities for vehicle usage to users. Discussions are underway to establish

10.38 In preparation for integrating the transport officer positions in the ministries extensive use of technology in the and departments, which will be followed by implementation of construction and decentralisation of financial responsibilities. maintenance projects, DBES completed the establishment of local and wide area 10.43 A recent diagnostic study has networks throughout the country. DBES also documented the extent of inefficiency at expects to establish an integrated project CTO, and compared the present set-up with monitoring system which will help it to plan, options such as establishing a parastatal and monitor and control the implementation of entering into a PPP. The Study government building projects. recommended the establishing of a PPP arrangement to be responsible for part of the

10.39 Some success was achieved in the CTO fleet on a pilot basis. The use of alternative procurement models. recommendation is under consideration by Government initiated two public private MWT. partnership (PPP) agreements for the provision of serviced office accommodation. 10.44 CTO commissioned a study of Important lessons have been learnt from the privatisation of its fuel operations. The study two PPP pilot projects. The experience should be completed during NDP 10. gained will inform the implementation of new projects on this model. Further Civil Aviation alternatives that were introduced on a pilot basis included the procurement of 10.45 Air passenger numbers increased consultancy services using the integrated from 491,889 in 2003 to 706,577 in 2007, (consortia) team model, and the design and while aircraft movements rose from 66,035 build model for the construction of some to 86,100 in the same period. This was government projects. equivalent to an average annual growth of 9.5 percent for passenger numbers and 6.9 Central Transport Organisation (CTO) percent for aircraft movements. The number of Botswana registered aircraft increased

10.40 CTO been able to increase vehicle from 102 in 2003 to 158 in 2008. availability from 85 percent to 90 percent of its active fleet during NDP 9. To address 10.46 NDP 9 emphasised the need to capacity limitations, CTO will build a new increase civil aviation capacity to cope with workshop at Mohembo inclusive of staff the growing scale of aviation in Botswana. accommodation. This was to include expansion of institutional capacity and development of

10.41 CTO subcontracted some of its additional infrastructure, notably at airports. accident repairs and maintenance work to Expansion was constrained because it was private garages. A private garage difficult to attract and retain qualified accreditation system was established and aviation professionals, especially in the 189 private garages had signed the Service engineering disciplines. Level Agreement by 2008.

10.47 Various civil aviation projects which had been shelved during NDP 8, were 214 revived during NDP 9. The additional construction will be carried out during workload exacerbated the problem of NDP 10. limited institutional capacity. Air Botswana

10.48 The major advance during NDP 9 was the passage of the Civil Aviation 10.52 During NDP 9, a number of Authority (CAA) Act in 2004. This unprofitable routes were removed from Air established the CAA to take over the Botswana’s schedule. These included the operation of airports and related facilities route from Cape Town to Maun, as well as from the Department of Civil Aviation Maun to Kasane. Air Botswana’s limited (DCA), and operate these along commercial resources were then put behind its primary lines. The CAA Board was established in routes. Emphasis was given to improving March 2007, and the transition from DCA to service punctuality and reliability. This CAA was completed in 2008/09. contributed to Air Botswana returning to profitability during 2007/08 after a number

10.49 Botswana adopted a gradual of years of losses. In 2007/08 it recorded a approach to implementing the net profit in the region of P12 million and an Yamoussoukro Decision to liberalise air operating profit in the region of P17 million. transport services in Africa. Botswana On-time departure for the year was in the approved an Air Transport Policy that region of 80 percent, after being well below supports the liberalisation of the domestic 60 percent three years previously. air transport market. A Memorandum of Understanding with South Africa, signed in 10.53 Major constraints on the growth and May 2007, introduced multiple designations development of the airline where the ageing of carriers for the first time, bilateral air aircraft fleet, and the costly BAe146 aircraft, services agreements and Memoranda of which gave rise to problems of unreliability Understanding were also signed between and high cost. By the second half of NDP 9 Botswana and Zambia, Qatar and the United the shortage of pilots, driven by high Arab Emirates. international demand for pilots, became a major constraint. A further constraint was

10.50 Studies are about to be initiated to the lack of commercial systems such as assess the feasibility of Botswana becoming loyalty programmes and revenue an air cargo and logistics hub for the optimisation systems. It is difficult for a Southern African Development Community small airline such as Air Botswana to afford (SADC). The recommendations of the the costs of implementing and maintaining studies should be implemented during such systems. A further constraint concerned NDP 10. limitations in airport and airfield infrastructure in Botswana that restrict the

10.51 Faced with an urgent need to expand use of appropriate and efficient aircraft. the capacity of Botswana’s airports, a series 10.54 The Air Botswana privatisation of aviation development projects were initiative reached a conclusion during initiated during NDP 9. These included the NDP 9. After two unsuccessful attempts to expansion of airports at Gaborone, Maun, attract a strategic equity investor, in 2006 Francistown and Kasane, and provision of potential investors were given freedom to reliable communication, navigation, propose other models of privatisation. This surveillance and aviation security systems at led to selection of a bid from a South several airports. Detailed designs have been African company which proposed the prepared for most of these projects and winding down of Air Botswana and the 215 establishing of a new joint venture. As a locomotives and wagons. BR is looking into condition, the Government would lift the using PPPs to build a wagon and locomotive exclusive route rights enjoyed by Air overhaul and assembly plant, and to expand Botswana, thereby opening up Botswana’s the existing workshops. Because of the domestic and international routes to deteriorating condition of its passenger competition. Ultimately, Government turned coaches, BR terminated the operations of the down the proposal as it was felt that it would passenger service until a profitable and more not adequately support tourism and other sustainable mode of operation is found. economic growth plans for Botswana.

10.58 New traffic from mining will create Railways opportunities to expand the railway network by developing links connecting Botswana to

10.55 As a result of the amendment of Namibia and Zambia, and additional links Botswana Railways Act in July 2004, with South Africa. This could, in turn, Botswana Railways (BR) formed a promote Botswana as a regional railway subsidiary company under the name BR hub. In this regard, Botswana Railways has Properties (Pty) Ltd in 2007. This decision submitted Terms of Reference to the World was taken to augment revenue generation, Bank for funding of the feasibility studies in since BR owns prime land in major towns, establishing the following railway lines: cities and villages. The company is based in • Mahalapye/Mmamabula- Gaborone. BR Properties’ mandate is to Ellisras/Lephalale (proposed coal export provide effective property management and corridor) development practices by unlocking the • Trans-Kalahari Railway line, connecting commercial potential in BR’s land, and thus Botswana to Namibia (to create an optimising revenue. alternative south-west logistics corridor mainly for coal export, but with the

10.56 Through the subsidiary, BR uses a possibility for other commodities) number of development options to engage • Rail extension from Mosetse to with interested parties ranging from Kazungula (to create an alternate north- individuals to companies, along commercial south corridor to Zambia, the lines. These include leasing properties to the Democratic Republic of the Congo private sector and property developers, as (DRC), etc.) well as entering into partnerships and joint ventures for development of the land. These 10.59 The commissioning of the new developments will be guided by the Signalling and Telecommunications (S&T) development plan which is drawn up in the system by BR took place during 2008. This context of existing and proposed urban and system will help reduce deaths and injuries rural development plans. This plan will due to train accidents. It will also improve cover BR land from Ramatlabama in the the running of trains in general. The system Southern region, to Ramokgwebana in the has boom gates, signs, bells and notices Northern region, and it will also cover land installed at all level crossings to greatly along the railway reserves bordering branch reduce the risks of accidents. The S&T lines of Sua-Pan and Selebi-Phikwe. system was handed over in August 2008. To take further advantage of the system, BR has

10.57 Botswana Railways lacks capacity to signed a Memorandum of Understanding overhaul its rolling stock in-house, and with ANSALDO for a feasibility study to outsourcing has proved to be very explore venturing into the communications expensive, especially the overhaul of business. The project will contribute to the 216 development of Botswana’s communication policy will pave the way for the formulation capacity, and that of the SADC region. of a Transport Master Plan. Local telecommunications companies, such as Mascom, BTC and Orange, have shown 10.64 An integrated transport policy would interest in renting any excess bandwidth. BR potentially provide for an independent will finalise a Joint Venture Agreement with Transport Regulator, who would look at ANSALDO for the maintenance of the issues of pricing of services vis-a vis costs installed S&T system during NDP 10. incurred and efficiencies. Government funding of road and rail would be

10.60 To ensure environmental streamlined. Currently roads enjoy a large sustainability and safety, BR has share of government funding. But if there is successfully obtained a three year safety to be inter-modality of transport services, permit to traverse the railway line between there should be a shift from this traditional Ramatlabama and Rakhuna, from the South funding. Rail transport has an important African Railway Safety Regulator. The potential role to play in the service and trade safety permit is given where a railway has industry. It reduces transport emissions and demonstrated that its operations are safe to alleviates road congestion. Levelling the employees, the community they operate in playing field between road and rail will and the environment. BR continues to carry mean fully internalising all road costs, out measures and projects to maintain this. including the externalities of pollution and congestion, so as to allow rail to compete on

10.61 To take advantage of growing the same economic basis as road transport, containerised traffic, BR has formed a joint which currently does not pay its full external venture company (Gabcon) with Transnet costs. Research has shown that road vehicles Freight Rail of RSA. Gabcon is a dry port only pay between one third and two thirds of container terminal in Gaborone and is the costs that they impose on society, which already registered as an independent entity. is why it is difficult for more sustainable The Francistown Dry Port (Francon) will be modes of transport to compete in this highly developed as a new stand alone entity. price sensitive market. The Integrated Transport Policy’s aim should be to address

10.62 Lack of an Integrated Transport the above and other issues which cause Policy still poses problems for BR’s disequilibrium between road and rail. business continuity, as the playing field between rail and road is not level. Enhancing the Role of the Private Sector STRATEGIES FOR NDP 10 10.65 Sector strategy for NDP 10 will give priority to institutional reform so as to Developing an Integrated Transport harness the potential of the private sector. Policy There will be a particular focus on reforming the roles of government and the

10.63 An Integrated Transport Policy study private sector to make more effective use of will develop proposals for a new national their different skills, and to reorient transport policy. The policy will be used to Government’s role to concentrate on being guide Government as it shifts its role the strategic manager, coordinator and towards strategic management, while the regulator of sector activities. private sector moves towards increased participation in sector implementation. The 10.66 Many of the sector ministry’s (i.e., MWT) existing activities and roles have not 217 changed greatly since Independence, when management of sector activities (e.g., “real there was minimal private sector capacity in time” monitoring and response systems). technical fields and Government had to And regulatory arrangements have remained carry out most roles in the transport sector. weak. This also reflects a need to change the During the subsequent decades, private staff mix within MWT in order to have more sector capacity has grown. In some revenue high calibre professional and technical earning activities, such as road transport, air expertise. transport services and railways, the private sector has the capacity or potential to 10.68 The Organisation and Methods operate services independently on a Review of MWT has proposed structural commercial basis. As a result of growth in and other changes to support the shift in cross-border ties within the Southern emphasis from project implementation and African region, together with the influence service operation to higher level strategic of globalisation, Botswana has more management. During NDP 10, MWT will opportunities to use commercial joint implement these changes, adjust its staffing ventures as a means of overcoming capacity mix and re-engineer its work processes limitations or of gaining access to regional accordingly. In addition, Government will markets, international expertise and carry out a number of consultancies to allow technology. for informed decision making to improve efficiency in service delivery. Restructuring Government Institutions to Undertake New Roles Private Sector Capacity to Undertake Outsourced Work for Public Buildings

10.67 Over the years, there have been many changes in the way that works and 10.69 Many government building projects transport activities have been conducted in are not delivered on time, within cost, and to the provision of transport and buildings. an acceptable quality level. This is partly However, these have mostly been modest due to fragmentation of the construction incremental adjustments that left the processes since Government continues to underlying institutional structures and appoint individual consultants and assignment of roles between MWT and the contractors in different disciplines. This can private sector relatively unchanged. The lead to inter-organisational conflicts, which scale of activities and level of spending has detract from overall project performance. increased enormously, which has exposed There is, therefore, a need to reduce some of the limitations of Government in fragmentation of the construction processes project implementation and running ongoing by organising building contractors to foster a transport and buildings operations. team approach. For example, project Bureaucratic processes and procedures have implementation could make more use of contributed to implementation delays and PPPs to achieve timely and cost effective cost escalation. As MWT has struggled to project implementation, as well as cope with the rising volume and complexity facilitation of project financing. of transport and building activities, there have been risks of corruption and other 10.70 In line with the Reservation Policy, governance problems. Since MWT has been all routine maintenance works, such as bush preoccupied with trying to deliver projects clearing, grass cutting, pothole patching, and service operations, it has not yet sign repairs/replacement, guardrail repairs, developed the range of tools and capacities drainage maintenance, and livestock control required for higher level strategic are reserved for citizen contractors. The 218 main challenge is establishing a mechanism Buildings and Engineering Services for ensuring that citizen contractors progress in scale from small to medium and large 10.73 In spite of the massive expansion in contractors, able to compete effectively the volume of public building works, the against foreign contractors. This requires present system of carrying out government acquisition and enhancement of skills, and construction projects remains highly ensuring that a steady supply of job centralised. DBES is accountable for timely opportunities are put to tender. Periodic and quality delivery of all projects. Client maintenance of roads, including resealing, Ministries are accountable for cost and fog spray and road marking, is also 100 utility aspects. This approach places percent reserved for citizen contractors. enormous demands on DBES, which suffers However, due to capacity constraints in the from fragmentation of responsibilities local construction industry, some of these between DBES and client ministries. There works have had to be carried out by locally is continuing concern that, due to this based foreign contractors registered with system, many government construction PPADB. During the NDP 10 Plan period, projects are not delivered on time, within local companies will be encouraged to form budget, or according to required standards joint ventures, partnerships, etc. A similar and specifications. Weaknesses of this approach will be followed in other areas of nature act as an impediment to delivery of the sector. In addition, PPADB grading and public goods and services. compliance procedures will be reviewed by all stakeholders to support this initiative. 10.74 During NDP 10 the Government will

10.71 Buildings and roads maintenance decentralise the implementation of contracts will be packaged (in terms of construction projects to Ministries and duration and quantity) to make it attractive independent departments. Each ministry will to contractors and financiers to provide be empowered to take complete funding for intial capital outlay where responsibility, control and accountability for required. The current, short term, one year the implementation of its construction contract for road maintenance, for instance, projects and programmes. does not provide this environment. Contractors will be rewarded for good 10.75 The planning of building performance by making them eligible for maintenance during the project life cycle has future work from Government. been severely neglected. Unless buildings are properly maintained, their original

10.72 Although the Engineers Registration justification may be undermined. There is an Act was promulgated some years ago, it is urgent need to give priority to maintenance still not operational on account of the lack of of government buildings so that they can an Engineers Registration Board to bring the retain their utility and value, and render the Act into force. Similarly, the Architects services for which they were intended. Registration Act and Quantity Surveyors Adequate provision for maintenance and Act are still to be enacted. Until these Acts planning will become a required part of any come into force, professionals in the construction project. construction industry will continue to render their services in an unregulated environment 10.76 In order to complete the devolution which tends to compromise the quality and of building maintenance operations to effectiveness. These acts will be made ministries during NDP 10, it will be operational during the early part of the necessary to establish a comprehensive NDP 10. maintenance policy and strategy to guide the 219 entire process. An inappropriate framework maintenance of existing roads during can be costly to Government in terms of NDP 10. impacts on asset values, maintenance budgets and the operations of public 10.79 There are clear indications that road institutions. Risks that would be mitigated assets have not been adequately maintained. by an appropriate maintenance policy and Road condition surveys conducted in 2005 strategy framework include building failures indicate that about 30 percent of the low and and productivity losses, high maintenance medium volume paved road network, and 22 costs, and ineffectively maintained building percent of the high volume paved network, assets leading to non-optimal use or are in poor or very poor condition. In future, wastage. new roads will be built to connect productive areas in the different sectors only Road Transport and Safety where it is demonstrated to be economically viable.

10.77 DRTS plays an important role in the regulation of public transport services, in Funding sources for maintenance licensing and testing vehicles and drivers, and in coordinating national road safety 10.80 As regards maintenance financing, activities. However, the rapid growth of significant changes are needed during motorisation has placed severe demands on NDP 10. Existing recurrent budget its limited staffing capacity. In particular, it allocations are only sufficient to finance has only been able to perform some of the about one third of the maintenance required roles of vehicle inspection, and monitoring to sustain the network. Studies have shown and enforcement of public transport in a that the cost of such under-budgeting is cursory manner. There have been periodic enormous. It is becoming common for controversies and disputes with public Botswana to have to rebuild roads after less service vehicle operators over the present than half of their expected economic life. system for regulating public transport. A With an existing road asset base of P10 further problem has concerned the internal billion, the additional cost to Government governance of DRTS, as has been apparent due to inadequate recurrent funding leading from the number of corruption cases to premature reconstruction may be between concerning issue of licences. Services P500 million and P1 billion per annum. related to road transport and safety, such as driver training, testing and licensing, will be 10.81 A further maintenance financing considered for outsourcing. issue concerns the way that funding is provided. For economic efficiency, there is a Roads and Emphasis on Maintenance strong case for charging users the full cost of maintenance through a system of user

10.78 The past four decades have charges comprising fuel taxes and vehicle witnessed a sustained drive to construct a license and permit fees. Increases in such national road network. This has enabled the charges should be phased in gradually with a economy to become more efficient and view to achieving full cost recovery by the competitive, and provided communities end of NDP 10. In order to provide the across the country with access to services Roads Department with a basis for multi- and economic opportunities. Since the year planning of maintenance, the revenues network is largely in place (and sources of from user charges should be “earmarked” to funding are declining), there must be a shift be used only for road maintenance, instead in priorities from new construction to 220 of being absorbed into general government the annual budget process, there will always revenues as is presently the case. be risks of maintenance being under-funded.

10.84 For these reasons, other countries Maintenance and Performance Based have chosen to establish autonomous road Contracts authorities funded from earmarked revenues. Some of these, particularly in Africa, were

10.82 As regards the execution of created as a result of pressure from donor maintenance, there has been a gradual shift agencies, and therefore their sustainability from use of departmental labour to use of beyond the initial period of donor contractors. Departmental labour is involvement may be questionable. However, notoriously difficult to manage efficiently. other countries, including China, India, During NDP 10, the use of departmental Japan and the US, have successfully used labour will be phased out. A further such arrangements to guarantee maintenance opportunity for improving execution financing for an extended period, and to involves the use of long term performance simplify lines of accountability, including in contracts. Instead of remunerating the some cases by making the road agency contractor for providing inputs, as is subject to independent oversight by presently the case, the contractor would be stakeholders. remunerated for providing outputs, based on a set of performance standards, within an 10.85 A further advantage of the road agreed budget. This commits the contractor authority approach is that it would allow to providing a given level of service over an greater flexibility over salaries. During extended period and to bearing the NDP 10, a means must be found for associated risks. It also provides a ensuring that salaries are sufficient to attract contractual means of committing and retain the high calibre professional and Government to financing maintenance, and technical staff required to manage road so can help to avoid the risk of maintenance sector activities. Training and human of the roads in question being under- resource development will be used to financed. The use of this approach will be prepare staff to make the change from direct piloted through the proposed Integrated labour operation to contract. This requires a Transport Project to be financed by the different set of competencies, such as World Bank, with a view to its wider project management, contract administration application in future. and PPP, in providing and maintaining roads. Institutional Arrangements Railways

10.83 Unless the above elements are in place, the result will be sub-optimal and the 10.86 In the railways sector, the challenge condition of road assets will deteriorate has long been how to continue to provide prematurely. The present departmental essential freight services, particularly to system of roads provision, which serve mineral export traffic, on a profitable emphasises compliance with bureaucratic and sustainable basis. This has been procedure rather than actual results in terms complicated by uncertainties over traffic, of road condition, leaves room for laxity in particularly transit traffic and traffic the planning and execution of maintenance. contingent on possible new mineral By making maintenance financing subject to developments. In practice, BR’s railway operations have not been profitable and it 221 has not accumulated reserves to finance development of the road network, such asset replacement. As a result, BR services have been replaced at no cost to periodically asks the Government to finance Government by long distance bus services. massive investments offering uncertain returns. Civil Aviation

10.87 During NDP 10, BR’s main priority 10.90 The central aviation strategy aims to will be to implement the Turnaround improve the air transport industry by Strategy and to attain the agreed key attracting more airlines and passengers. This milestones in order to be eligible for involves adoption of the Open Sky Policy, successive tranches of government or initially to attract international carriers to investment financing. There are seven use Gaborone as a base for direct flights to elements to this strategy covering: Gaborone, and then into the region (and • Internal business remodelling; possibly from Gaborone to South • Changing the business model from a America/USA, in competition with SAA for transit railway to a mineral export its USA route clients). However, the Open railway; Skies Policy should be approached with • Rehabilitation of existing locomotives, caution and must be applied on a case-by- rolling stock, and track infrastructure; case basis to safeguard Botswana’s interests. • Investment in additional wagons to This development will require revision of overcome capacity shortfalls; the Air Navigation Regulations which guide • Human capital development; operators and help them to do business in • Overhaul of BR’s information Botswana. technology;

10.91 The revitalisation of the air transport • Improving safety, health and the industry (and application of incentives) will environment. be achieved, if liberalisation of airspace is coupled with activities that generate

10.88 It is expected that, during NDP 10, passengers or cargo to transport well feasibility studies will be prepared for the packaged activities in sectors such as proposed Trans-Kalahari Railway project, agriculture and tourism. For example, and possibly for other links to connect the tourism would be developed such that the BR main line with the South African increase in the number of tourists justifies network at Ellisras, and to extend the direct flights to Botswana from Europe. railway north to Kazungula. These studies will consider options for private sector participation in construction and operation Central Transport Organisation of the proposed railway lines, with a view to

10.92 CTO has been the subject of relieving BR of the associated construction numerous reviews that identified problems and operating risks, and reducing of inefficiency and lack of accountability for Government’s role to coordination and vehicles. Nevertheless, not much has regulation. Depending on the findings of the changed over the years, and CTO still studies, detailed design and implementation remains a department of MWT with may be initiated during NDP 10. centralised responsibility for Government vehicles. The main change has been the

10.89 A further issue for NDP 10 concerns continued expansion of the fleet. This now whether to provide passenger services. In amounts to nearly 10,000 vehicles. Running the past, passenger services made a substantial loss. As a result of the 222 a fleet of this size presents a severe Depending on the model to be adopted, this challenge to management quality. could initially involve pilot testing on a limited scale, passage of legislation,

10.93 In line with the recommendations of downsizing of CTO’s staffing, the diagnostic study, a reform model for decentralising of direct financial CTO, taking into account the potential responsibility to user ministries, and benefits of the various options studied, strengthening of ministries’ traffic together with the risks, and the need to management functions. ensure service continuity, will be implemented. During NDP 10, the priority 10.94 A further initiative during NDP 10 is for CTO will be to implement agreed expected to involve the outsourcing of CTO reforms (commencing with a pilot study for fuel points around the country, based on the about 2,000 vehicles), to monitor their findings of the study conducted during performance and, based on this experience, NDP 9. Outsourcing of government bus decide whether to extend or refine the services will also be considered. reform model over the longer term. Sector Performance Matrix 10.1: Transport and Works Goal: Well Developed Infrastructure Sector: Transport and Works Baseline: NDP 10 Target NDP 10 Key Performance Indicator Year Result Capacity to export and import 2008/2009 4 million tonnes 5 million tonnes Condition index 2008/2009 <63% 85% Source: Ministry of Works and Transport PROGRAMME SUMMARIES Roads Infrastructure Programme roundabouts with traffic lights or higher capacity traffic interchanges, building

10.95 The Road Infrastructure programme bypasses, and introducing access-controlled will include the provision of new roads, road sections. In addition, consideration will reconstruction of the existing roads and be given to the feasibility of traffic construction of bridges. To control the management measures and possible overloading of vehicles and, therefore, congestion charging. In order to alleviate the maintain the lifespan of roads, existing accident risks posed by stray animals, weighbridges will be upgraded and new additional roads will be fenced. The labour- weighbridges constructed at strategic based livestock patrol programme will be locations. Several new challenges have extended to cover more of the road network. emerged as a result of traffic growth. These include congestion, particularly in urban areas, and increased road accident risks, especially where busy roads pass through Railway Infrastructure Programme villages and towns. During NDP 10, options will be developed, taking into account 10.96 Railway infrastructure is very engineering solutions such as providing effective for the transport of heavy and additional lanes, replacing congested bulky goods between demand and supply 223 centres. This programme, therefore, aims to timely issue of permits, licenses, etc., and by serve the productive and trade sectors in the providing an environment for efficient and transport of bulk commodity goods. It will cost effective transport services. The provide for the refurbishment of railway and programme will also concentrate on rolling stock to enable it to cope with improving road safety, a key policy issue. It increased demand for transport, especially will provide vehicle testing stations, children with the expected growth in coal output. traffic schools, driver testing grounds, New export routes will be considered, expanded and improved driver testing, and utilising existing capacity in ports such as enhanced analytical capabilities. Walvis Bay. The port in Namibia provides a shorter route to European markets. Buildings Programme Feasibility studies will be carried out in this regard. 10.100 This programme covers rehabilitation works for a number of public Air Transportation Infrastructure institutions. The aim of the programme is to Programme bring the buildings to the level required to provide the necessary service. The buildings

10.97 This programme entails upgrading are used by Government to service the existing airports and constructing new various sectors and are therefore necessary airfields that have been identified as for the implementation of NDP 10. To strategic to the growth of the economy. In provide more efficient maintenance of addition, Government plans to enhance air public buildings, maintenance will be transport safety and aviation security outsourced to the private sector. through the installation of improved communication, navigation, surveillance and 10.101 In the health sector, rehabilitation aviation security systems at airports and works comprise ongoing projects. The three other strategic locations along air routes. ongoing projects cover primary hospitals at The major beneficiaries of this programme Hukuntsi, Masunga and Sefhare. Four other are the tourism, mining, and trade and projects relate to the Institute of Health industry sectors. Services facilities at Molepolole, Gaborone, Francistown and Lobatse. Government Transport Programme Infrastructure - Buildings Programme

10.98 The aim of the programme is to (Ministry of Local Government) provide a cost effective and efficient transport service to Government. As 10.102 This programme provides for the Government has not been able to achieve construction and maintenance of public this, it is intended that the service be facilities for local government institutions, outsourced. Since the transition may take including supplies/storage and distribution some time, it will still be necessary to facilities, administration centres, customary upgrade some existing workshops and courts, and municipal, recreation, primary construct new ones where they are critically education and primary health facilities. required. Programme selection is based on the Local Authorities’ statutory mandate to provide Road Transport Services Programme basic infrastructure services. Local Government is also mandated to take

10.99 The programme aims at improving services to the people at the lowest level of services to the public and businesses by the settlement. 224 Local Government Land Servicing

10.103 Currently there are 24 storage Programme facilities country-wide, of which 21 were constructed over 40 years ago. They have 10.105 This programme addresses village reached the end of their lifespan, as infrastructure and urban land servicing. It evidenced by continuous malfunctioning of will continue to provide funds for major structural components. The storage development of bituminous roads, capacity can no longer cope with the current associated storm water drainage and street demand for food commodities, due to lights in residential, industrial and increased population. This requires commercial areas in villages. This should construction of additional facilities and improve the standard of living of the local rehabilitation of existing ones during populace and create a conducive NDP 10. environment for investment. The programme will provide funds for one-off Local Government Municipal and infrastructure upgrading in old SHHA areas Recreational Services Programme in Gaborone, Francistown, Lobatse and Kasane. It will rationalise the detailed layout

10.104 This programme caters for projects plan for old SHHA areas in Ghanzi to not funded under any other programme such facilitate the provision of infrastructure as market stalls, fire services, cemeteries, services, and upgrade water reticulation at abattoirs, bus and taxi ranks, supplies the Government Enclave in Gaborone. warehouses, construction of mayoral and council chairpersons’ houses and 10.106 Internal roads in villages are mainly mechanical workshops. The programme gravel requiring uneconomic, frequent covers both districts and urban areas, and regraveling and/or grading to make them several such areas will benefit from a variety passable. The dust generated from these of these projects, both as spill-overs from dusty roads poses a health hazard. Lack of NDP 9 and as new projects. Recreational good drainage is the main cause of floods. facilities include recreational parks, The standard of infrastructure in old SHHA development and equipping of open spaces areas is below that provided in other areas of and construction of multi-purpose halls, the urban centres. The old SHHA areas in community centres or recreational halls. Ghanzi require layout rationalisation to Provision of sports facilities in these enable the provision of standard recreational facilities will be made in line infrastructure services. Water pressure of 1.5 with the mandate of Government to make bars in the reticulation system in the provision for leisure and recreational Government Enclave is insufficient for fire facilities for communities. fighting in this classified high fire risk area. The selected bituminous road network will ensure better linkages of wards in the villages and provide access to public institutions. 225 SECTOR: WATER INTRODUCTION

10.107 The water sector continues to ensure infancy of the sector. Little attention has that water policies and strategies are clear been paid to demand side management and and focused in an endeavour to influence water resources stewardship. The current wealth creation and improve the wellbeing challenges facing the sector require a change of Batswana. The sector is governed by four of emphasis from supply side to demand key pieces of legislation; the Water Act of side management. 1968, the Borehole Act of 1956, the Waterworks Act of 1962 with its 10.111 Water resources management, which amendment Act of 1983, and the Water in this context includes all activities from Utilities Act of 1970, with the amendment of planning and development up to water 1978. Other important acts which influence delivery to the customer, has been the the sector are the Local Government District responsibility of a number of institutions. Act, Aquatic Weeds Control Act and Public These include the Department of Water Health Act. Affairs (DWA), the Water Utilities Corporation (WUC), the Department of

10.108 The provision of reticulated water Geological Survey (DGS), the Department supplies to villages since the 1970’s, has of Local Government and Development improved access to drinking water for the (DLGD), Local Authorities, the Ministry of majority of citizens. However, this initiative Agriculture (MoA), and the Department of has been hampered by inadequacy of Waste Water Management and Pollution developed sources, and in some instances, Control (DWWMPC). There have been pollution of existing sources. difficulties coordinating these institutions, which has led to lack of clarity and

10.109 The first National Water Master Plan misunderstanding about responsibilities, and (NWMP) was completed in 1991. The Plan to duplication of effort. The main causes provided guidance for water resource were an inappropriate institutional management, and came up with a number of framework, and poor coordination among major recommendations. According to the institutions engaged in the same sector. To National Water Master Plan Review of 2006 address this, there is need for institutional (NWMPR), substantial progress has been restructuring and capacity building, made on the implementation of the alongside water conservation and demand recommendations, with the exception of management, and monitoring and evaluation institutional and infrastructure development. of services. The institutional recommendations still outstanding include overall institutional 10.112 One of the recommendations of the arrangements for water resources NWMPR is to separate resource development and management. The main management from service delivery. This is infrastructure delay has been the late being implemented and will continue into commissioning of North South Carrier 2. the early part of NDP 10.

10.110 The NWMPR indicates that the water sector institutional framework has mainly been structured to meet residential and commercial needs, consistent with the 226 REVIEW OF NDP 9 Water Resources Investigation and Development

10.113 During NDP 9, the water sector contributed about 1 percent to GDP. The 10.115 Seven groundwater investigations NDP 9 water resources strategy aimed to (Maun, Kang-Phuduhudu, Bobonong, address several key issues: institutional Matsheng, Botlhapatlou, Boteti, and framework changes; change in the service Masama) and the construction of four delivery modality in major and rural surface water dams (Ntimbale, Dikgathong, villages; water resources investigation; Lotsane and Thune) were planned in NDP 9. setting water tariffs to align them with the A fifth dam (Mosetse) was added during the cost recovery policy; data management to Plan period. evaluate and monitor serviceability of infrastructure; water quality; protection and 10.116 Only one dam, Ntimbale dam in the conservation; implementation capacity North East District was completed during building; outsourcing services; irrigation and NDP 9, while the rest are at various stages water development; and improvement of of development. Construction of productivity. Dikgatlhong dam started in March 2008, with completion expected in February 2012.

10.114 Although there were no targets in the Lotsane dam construction started in April form of definite outcomes and outputs, the 2009 and will be completed in October overall aims were: 2011. Construction of the Thune dam is • To meet the water requirements of all expected to start in January 2010, with the population through provision of a expected completion in March 2013. The clean, reliable, affordable water supply completion of Dikgatlhong, Lotsane, Thune with sufficient quantity and adequate and Mosetse dams will increase the pressure to meet the customers’ combined volume of dams from 393 million requirements within agreed limits; cubic metres to 948 million cubic metres, • To meet the water requirements for while combined yield will increase from 68 industrial, mining, agricultural, wildlife, million to 147.9 million cubic metres per commercial and institutional users. annum (Table 10.3). Table 10.3: Dam Capacity and Yield Dam Capacity (MCM) Yield (MCM) Gaborone 144.2 9.5 Shashe 87.9 23.0 Letsibogo 104.0 24.0 Nnyane 2.3 Bokaa 18.5 4.9 Moshopa 0.7 Lotsane 42.3 6.5 Ntimbale 26.4 3.6 Dikgatlhong 400.0 62.0 Thune 90.0 6.5 Mosetse 31.7 7.9 Total 948.0 147.9 Note: MCM = million cubic metres Source: Department of Water Affairs 227

10.117 Groundwater investigations were in Table 10.4. All the investigations were undertaken in Maun, Kang, Phuduhudu, completed within the Plan period, with the Bobonong, Matsheng, Botlhapatlou, Boteti exception of Bothlhapatlou which will be and Masama areas. Water demand and completed in NDP 10. yields from these developed well fields are Table 10.4: Well fields Capacity and Yield Wellfield Demand (m3/day) Yield (m3/day) Yield (MCM/Year) Kang 3,525 7,860 2.87 Matsheng 1,680 9,637 3.52 Botlhapatlou 14,000 14,000 5.11 Bobonong 6,500 6,289 2.30 Masama 25,000 25,000 9.13 Maun 13,700 24,650 10.07 Total 64,405 87,436 33.00 Source: Department of Water Affairs

10.118 The development of these resources of tariff calculations thereafter. During was complemented by the review of urban NDP 9, tariffs were raised for both major water supply master plans for Francistown and rural villages. In general, rates were and Selebi-Phikwe. These entailed the increased annually by 14 percent for urban implementation of major capital works in centres, and by 18 percent for rural villages, the form of treatment works, pump stations, up to 2005. The major limitation was that pipelines, storage and elevated towers to the revision of the tariffs was not based on enable transfer of water from major centres any economic analysis. A water affordability to the surrounding villages. tariff study for seventeen major villages was carried out during 2008, and was completed Water Tariffs in March 2009. The proposals from the study await further work to be carried out in

10.119 Water Utilities Corporation supplies 2010 to accommodate water sector water to urban areas, charging tariffs which restructuring. are intended to cover costs and generate a target rate of return on capital invested. The Water Quality, Protection and Department of Water Affairs (DWA) Conservation supplies water to those areas not covered by Water Utilities Corporation, applying tariffs 10.121 Regular water quality monitoring which do not cover costs and therefore and testing for chemical, physical and involve a subsidy. microbiological constituents were undertaken by the sector to ensure

10.120 Water authorities are to increase compliance with the Botswana Standard for water tariffs annually over six years to Drinking Water Quality Specifications (BOS recover 70 percent of operating costs, and to 32:2000), and included water quality adopt long run marginal costing as the basis monitoring of dams and well fields. 228 However, the quality monitoring for the in water demand of around 10 percent rural villages water supply was not done on between 2002/03 to 2005/06. The a regular basis due to shortage of manpower restrictions included:- and logistical support. Once a water industry • Prohibition of watering playing fields, regulator is in place in NDP 10, it will take sports grounds and golf courses with over the responsibility for water quality potable water; monitoring. • Prohibition of washing pavements using potable water;

10.122 The sector implemented a water • Prohibition of watering Council parks conservation and demand management and recreational gardens with potable technology which included construction of a water; demonstration wetland system that treated • Prohibition of watering of residential waste water from Department of Water gardens with hoses held by hand. This Affairs (DWA) offices for reuse. This was subsequently lifted after the water wetland system reduced departmental water situation had improved. consumption by 30 percent. The project is now being replicated by a number of 10.125 A feasibility study was completed in institutions, such as the Botswana Police, 2008 on the proposed reclamation and poultry farms and individual households. treatment of the Gaborone wastewater for The development of the draft National potable use. The results of the study will be Water Conservation Policy of 2004 and the implemented during NDP 10 as a pilot National Water Supply Regulations were project that will use Gaborone waste water. also completed. Based on the outcome, it may be rolled out to other suitable areas.

10.123 As part of its water demand management strategies, DWA developed a Outsourcing of Services comprehensive water conservation programme. The following are some of the 10.126 To increase private sector activities that were implemented under the participation and to align government policy programme: with a shift towards a private sector driven • Installation of a pre-paid metering system economy, the implementation of all large to in 13 major villages; medium sized projects was outsourced to • Water loss measures, such as metering, privately owned companies. Other services, zoning and in-situ meter testing at such as billing of water connections, have Palapye and Molepolole; started to be outsourced, while outsourcing • Automatic flushing urinals at government of meter reading, and operation and institutions, such as schools, were maintenance will be looked into during the replaced by manually operated flushing NDP 10 plan period. urinals; • Pilot exercises on rain water harvesting at Human Resources Development (HRD) Shoshong Senior Secondary School, and HIV/AIDS Khawa village and Ledumang CJSS; • Extensive education and awareness 10.127 The sector continued to experience campaigns on efficient use of water. problems associated with retention of skilled manpower during NDP 9. The manpower

10.124 WUC was compelled to impose situation became worse due to the impact of water restrictions in the Gaborone and HIV/AIDS, and resignations by experienced Lobatse areas, which resulted in a decrease 229 professionals were a major constraint on is the delay in meeting the demand for water service delivery. supplies.

10.128 It was planned to ensure complete Unclear Responsibilities among Different awareness of HIV/AIDS to reduce the Water Authorities impact on sector business. This involved the establishment of a Wellness Programme. 10.132 The presence of many stakeholders The engagement of Wellness Officers and (MMEWR and Local Authorities) in the Safety, Health and Environment Officers, sector resulted in duplication and poor employed by the private sector on projects, coordination of service delivery which was ensured that the private sector, complied often unclear to the customers. This resulted with the HIV/AIDS strategy. in poor and delayed infrastructure development. Challenges and Lessons Inefficient Use of Water Resources

10.129 During the implementation of NDP 9, the sector faced numerous 10.133 Studies indicated that waste challenges in achieving goals and objectives. water/effluent constitutes 16 percent of all Significant impediments are briefly delivered water resources, of which only 20 described below. percent is reused. Despite efforts to promote conservation of scarce water, water losses Restrictive Policies and Outdated Acts and wastage continue unabated. The water losses occur widely in the water systems, at

10.130 The Water Policy Act of 1968 is public stand pipes, private connections, limited in its addressing of water efficiency schools etc. Technical losses were due to plans and water resource management poor performance and maintenance of issues. These issues are articulated in the infrastructure and non-technical losses NWMPR. They include lack of appropriate resulted from non–billing and illegal water legislative and institutional arrangements to connections. Reducing water losses should properly implement water resources be supported, inter alia, through planning, policy formulation, management strengthened legislation. and delivery. Water Quality, Protection and Poor Project Implementation Conservation

10.131 The sector did not implement all the 10.134 Providing water that meets Botswana planned projects, and some were not quality standards continued to be a challenge completed according to their original scope during NDP 9. This is due to salinity of and design. These weaknesses were due to water sources, pollution at the available insufficient skilled manpower, uncertainty good sources, high operation and of funds availability and lengthy maintenance costs of desalination plants, procurement processes. Lack of skilled and utilisation of inappropriate and complex manpower led to poor supervision of technology. There is a need for the consultancies and contractors, which establishment of wide baseline data on water manifested itself in project scope change, quality. and unsatisfactory service delivery from completed projects. The major impact of this 230 STRATEGIES FOR NDP 10 systems, but also the way economic and social systems affect demands placed on the

10.135 The NDP 10 goal for the water resource base. It also requires a more sector is ‘to supply adequate water participatory approach, emphasising the efficiently of the required quality for need for more stakeholder involvement in different purposes (domestic, agriculture, water development and management. mine, trade and industry)’. In this context, Consistent with the IWRM principles, the strategies to be pursued during NDP 10 were NWMPR emphasises demand-side developed on the basis of lessons learnt management, rather than the traditional during the implementation of NDP 9. supply-oriented approach. The report proposes an institutional structure that is Institutional Restructuring able to: • Efficiently implement the

10.136 Water resources in Botswana belong recommendations of the NWMPR; to, and are controlled by, the state. The state • Meet current and future water has the final responsibility for allocating challenges; water rights through the Water • Align planning operations with Apportionment Board (WAB), whose international practices. powers are drawn from the Water Act 1968. The Director of Water Affairs is the 10.137 The NWMPR recommendations will Secretary and Registrar of WAB. Integrated be implemented in NDP 10, and will thus Water Resources Management (IWRM) and guide strategies and initiatives for water the NWMP will provide a policy framework resources management. The institutional for the water sector during NDP 10. The reform which is recommended by the IWRM principles require a more holistic NWMPR is illustrated in Chart 10.1. approach to management, considering not only the interdependencies within natural Chart 10.1: Recommended Institutional Restructuring Minister of Water Resources Cabinet of Government Ministers DWA Water Rights & Water Resources Council Discharge Permits Price National Water Local Regulator (to Resources Manager Community be appointed) Organisations Sector Policies Secretariat to WRC (Advisory) and Regulation DWMP&C (Appropriate sections Sanitation of DWA & DGS) Service Providers in Water Supply & Other Holders of SanitationSector Water Rights Service and Discharge Delivery WUC & Others Local Authorities Permits (Towns & Major Villages) (As at present) Source: National Water Master Plan Review Report of 2006 231

10.138 In terms of institutional 186Mm3/annum by 2030, on a base case strengthening, the NWMPR recommends: scenario. • Separation of resource management

10.142 Botswana needs to develop robust functions (policy making, water infrastructure to enable effective implementation monitoring) from management of scarce water resources. service delivery activities; Major water infrastructure projects such as • Strengthening the regulatory regime by dams, strategic pipelines and wellfield divesting operator functions in a planned development, will continue during NDP 10. and thoughtful way; Infrastructure to facilitate strategic use of both surface and groundwater resources will • Setting minimum service quality be developed, as well as infrastructure for standards for consumer protection; artificial recharge in areas such as Maun and • Provision for an independent pricing Bobirwa, and waste water recycling in areas regulator. like Palapye – Serowe, Ghanzi and Gaborone.

10.139 The arrangement will address the challenge of duplication of responsibilities 10.143 The strategy for water infrastructure in the water sector and will ensure an will be coupled with the strategy for Water Institutional Framework which is in line Conservation and Demand Management. In with the best international practice. this regard, during NDP 10, Government will pursue initiatives to curb water wastage and will explore the utilisation of available

10.140 To support the new developments, technology to reduce high levels of all existing water legislations and evaporation in dams, which currently stand regulations will be reviewed. Other water at 65 percent. sector policies initiatives to be undertaken during NDP 10 include: Water Conservation and Demand • Approval and implementation of the Management water conservation policy; • Approval and implementation of the 10.144 It has been recognised in water National Water Supply Regulations; resources studies (NWMPR, Water Conservation and Demand Management • Development of a water tariff policy. Project 2004), that Water Demand Management (WDM) should be given Water Infrastructure Development primary consideration in water resources planning, because of its cost effectiveness compared to the development of new

10.141 Moderate population growth coupled resources. The NWMPR 2006 addressed the with robust economic activity, as is expected status of WDM in Botswana through in the future, puts pressure on water reviews of the draft National Water resources and water resources infrastructure. Conservation policy, and various demand During NDP 10, water resources will, management plans for mining and water therefore, be seen as a platform for utilities. economic growth and development and not just as a social responsibility. The current

10.145 The preliminary water balance national water demand level stands at 80 review highlighted the loss of more than 46 Mm3 /annum and is projected to reach 232 percent (57 MCM) of developed water Reduction in water loss would defer through various forms of losses and expensive capital works programmes, as inefficient water use. Another observation water demands could be reduced by up to 25 was that 32 MCM of water can realistically percent (Chart 10.2). be recovered through focused campaigns. Chart 10.2: Impact of Controlling System Losses and Water Demand Management Source: National Water Master Plan Review Report of 2006

10.146 Most water supply infrastructure conservation and demand management experiences high water losses as a result of action plans will be developed for all water high pressures, ageing pipe networks, and providers supplying villages and towns with poor maintenance. The following initiatives piped water supplies. These plans will be will be undertaken to address these developed by Government in cooperation problems: with major water users. Furthermore, it is • Rehabilitation and upgrading of water intended that WDM-focused institutions and supply schemes; techniques such as national resource • Optimisation of the existing network; accounting and a water conservation unit, be • Adoption of whole life costing and risk- established to monitor water audits and based asset management; water balances. • Implementation of Geographic Information Systems (GIS) and maintaining an up-to-date asset 10.148 In terms of utilisation of waste water inventory; and treated effluent, which constitute some • Capacity building in asset management. 16 percent of all water resources by volume, the priority is to use effluent water. The

10.147 The NWMPR comprehensively quality of treated effluent will be improved reviewed the draft National Water to a standard which will allow reuse and Conservation Policy (2004). A major development of standards and guidelines to deficiency noted was the lack of reference to ensure the public and environment are fully actual implementation of strategies. It is protected. imperative that these deficiencies be addressed during NDP 10. In addition, water 233 Assessment, Monitoring and Evaluation (timeliness, water quality, cost and water of Water Resources conservation); • establish water quality testing

10.149 These will be improved through laboratories. mandatory production of annual audits on the water systems managed by the suppliers Comprehensive Review of Water Supply (DWA, WUC and Councils). The Infrastructure production of quality audit reports with accurate information necessitates that 10.154 The review of the status of all water existing water monitoring systems be supply systems and national metering will improved. Therefore, the review of the be undertaken as part of the major villages existing water system monitoring will rehabilitation projects during NDP 10 to become a priority during NDP 10. determine the future investments required in

10.150 Effective assessment, monitoring and terms of capital expenditure and major evaluation of national water resources will maintenance stock. ensure that water is available for national priorities, that water is used productively Capacity Building and for the most beneficial use, that water is shared equitably, and that the value of water 10.155 The new dispensation envisaged by resources is maintained. the NWMPR requires new skills. The study identifies several knowledge gaps in the

10.151 During NDP 10, Government will water sector. Key skill areas identified are: ensure that: • Contract management; • information required for decision- • Environmental management; making on water resources is collected • Supervisory abilities; and analysed; • Systems development; • information acquired is fully utilised for • Applications development; strategic planning for the use, • Billing system support; development and protection of water • Data security. resources; • change in water use is dynamic enough 10.156 The move to a stewardship role for to cope with changing priorities and Government requires the development of conditions. skills and institutional arrangements for the assessment and protection of water

10.152 This requires a thorough resources. Thus, the following are required: understanding of the hydrological cycle, in • Knowledge and skills to perform a order to promote a systematic assessment of strong stewardship role; the quantity, quality and variability of water • Policies to educate and build awareness available for development. on the merits of effective water management;

10.153 In addition, during NDP 10, • Knowledge and skills for effective Government will: participation in the activities of regional • establish an independent quality river commissions. monitoring and evaluation division, under the Regulator, for monitoring and 10.157 Skilled personnel are needed, so that evaluation of services provided in the the sector can efficiently lead the water sector, both for project development and management of water implementation and service delivery 234 resources. During NDP 10, the following • Utilisation of Public Private Partnership will be carried out to build capacity in the (PPP) as a means of facilitating private water sector and facilitate effective project sector participation in the water sector; implementation: • Outsourcing of services delivery, such as • Establishment of training facilities for maintenance works, private connections, applied engineering in water sector meter reading and billing; organisations in collaboration with • Exploration of funding from multilateral relevant institutions (e.g., the Botswana sources (international financial Training Authority, University of institutions/investors); Botswana (UB), Botswana International • Application of the Engineering University of Science and Technology Procurement and Construction tendering (BIUST); model for most projects. Sector Performance Matrix 10.2: Water Sector Goals Indicators Baselines Targets 2008 2016 To efficiently % of demand met. 45% demand met 100% supply adequate % of population covered. 65% covered 100% water within the set % of unaccounted for water 46% unaccounted 10% quality standards for water % of water supplied 20% compliance 100% compliant to the set water quality standards. Source: Department of Water Affairs SUMMARY OF PROGRAMMES Water Supply Resources Development (including Treatment and Transmission) Institutional Framework Restructuring 10.159 Water demand far exceeds water Programme supply. To meet the deficit, unquantified water resources will be assessed and quantified water resources developed. These

10.158 This programme is aimed at include dams, wellfields (boreholes) and addressing challenges of limited water cross border resources (shared water resources and efficiency in service delivery resources - Orange/Senqu, Limpopo and due to institutional problems. It recognises Zambezi River Basins). the need to separate water resources management functions from that of service delivery. This programme is seen as the Water Supply and Distribution cornerstone for enhancing achievement of Programme other water sector programmes, namely, water resources development, water supply 10.160 This programme is aimed at and distribution and water quality, optimisation of the existing network, conservation and supply and service rehabilitation and extension of the network efficiency. to achieve 100 percent water supply 235 coverage. The improvement is intended to 10.161 This programme is aimed at enhance efficiency of the existing improving water quality in both rural and infrastructure and reduce water losses. major villages countrywide. This is done through regular water quality monitoring and tests of dams and wellfields to ensure compliance with various utilisation Water Quality, Conservation and Supply standards, such as drinking water quality and Service Efficiency Programme specifications. SECTOR: ENERGY INTRODUCTION • The Rural Industries Innovation Centre

10.162 The energy sector operates through a (RIIC), for developing, testing and combination of public and private sector dissemination of renewable energy activities. The Ministry of Minerals, Energy technologies; and Water Resources (MMEWR), through • The Botswana Technology Centre its Energy Affairs Division (EAD), is (BOTEC) undertakes research and responsible for formulation, direction and development and information coordination of the national energy policy. dissemination on solar energy. The Ministry shares the energy portfolio responsibility with other ministries, private 10.163 In recent years, policy emphasis has companies, parastatals and non- been on adequately and reliably supplying governmental organisations (NGOs) energy at least cost to the economy, as well including: as sustainably utilising energy resources. • Botswana Power Corporation (BPC), for Botswana’s Energy Master Plan was electricity generation, distribution and developed in 1985 and has guided the supply; country’s energy developments and • Multinational oil companies, for direct strategies over the years. The Plan was procurement, supply and distribution of reviewed in 1996 to take cognisance of petroleum products; regional and local challenges. A lot has • The Ministry of Environment, Wildlife evolved within the energy sector since 1996, and Tourism (MEWT), for forestry and which will need to be addressed by future environmental conservation, long term energy policy and NDP 10. In the past two research on fuel wood, productivity of decades, policy has centred on low cost natural woodlands and promotion and energy provision from RSA, which has implementation of fuel wood benefited from the low costs of hydro and programmes; coal fired energy, and from economies of • The Ministries of Local Government scale. Global and regional shortages of (MLG) and Education and Skills electrical energy mean that the policy has Development (MoESD), for off-grid run into difficulties. There is a need to shift power supply, and installation and energy policy and investment to more maintenance of solar energy equipment in sustainable, local, but inevitably higher cost government institutions in rural and sources of supply. urban areas; 236

10.164 The energy sector contribution to On its termination, BPC negotiated a new GDP increased from 1.4 per cent to 1.9 five year Power Purchase Agreement with percent during NDP 9. To increase its Eskom to provide 350 MW in the years contribution to economic growth, the 2008 and 2009, 250 MW in 2010, and 150 following goals will be pursued in NDP 10: MW in 2011 and 2012. To supplement the • To deliver an adequate supply of reliable reduced power imports from RSA, BPC has energy; secured additional imports totalling 90 MW • To exploit sustainable energy resources; from Mozambique. • To facilitate economic efficiency; • To improve access and affordability of energy services; 10.167 Morupule Power Station continued • To ensure security of supply and to operate as a base load station, with diversified supply sources. generation units operated or maintained above the 80 percent availability factor. A

10.165 These will contribute to the national feasibility study for generation expansion of goals of sustainable rapid economic growth the Morupule Power Station has been and a sustainable environment. There is a completed. The Morupule Power Station strong and positive correlation between expansion project preliminary works, such Gross National Product (GNP) per capita as environmental impact assessment, and modern energy use per capita. Access to groundwater investigations and drilling, energy services is a pre-requisite for socio- have been carried out. The final stages of the economic development, and for the construction tender evaluation are almost achievement of the Millennium complete. Upon completion of the first Development Goals (MDG’s). phase of the project, which is expected during the second quarter of 2011, the REVIEW OF NDP 9 station will provide 600 MW of new capacity, replacing all imported electrical Electricity Supply power. Feasibility studies for the second phase of Morupule expansion, which is

10.166 Botswana’s electricity self– intended to provide a further 600 MW, have sufficiency level remained very low during started. At completion of the second phase, NDP 9. Morupule Power Station contributed expected in 2013, the total capacity of only 24 percent (120 MW) of the national domestic generation will stand at 1,320 consumption of 500 Megawatt (MW). The MW. This level of domestic generation balance was imported, mainly from RSA. capacity provides the desired level of energy Southern Africa experienced a serious security for Botswana. In addition, regional power supply deficit during the feasibility studies of a project to tap into the latter part of NDP 9, and regional power vast hydropower resources of the utilities including BPC, are grappling with Democratic Republic of Congo (DRC), by this problem. An import supply agreement five SADC counties (Angola, Botswana, with Eskom of RSA, which came into force DRC, Namibia and South Africa), have been in January 2000, expired in December 2007. initiated. 237 Chart 10.3: Supply- Demand Outlook for Electricity Source: Botswana Power Corporation

10.168 To facilitate the implementation of divert more financial resources into the additional new energy supply projects, such funding of capital projects with social goals. as Mmamabula, the Mines and Minerals Act Amendment Bill and the Electricity Supply 10.170 The policy of maintaining a balance Act Amendment between local generation and imports of power to obtain a least cost mix was adopted Bill was passed by Parliament in December during NDP 9, and the expansion of local 2007. These provide for power supply generation was deferred to take advantage of liberalisation and the operation of the relatively cheap power in the region. The independent power producers in Botswana. policy enabled the BPC to meet the requirements of the economy in a cost

10.169 The Electricity Supply Amendment effective manner. However, the Corporation Bill ushered in a new era in the electricity was faced with the following challenges: supply industry. It supports the • Weakening of the Pula against the Rand Government’s quest to have the private as a result of currency devaluation in sector actively involved in the development February 2004; of the country’s infrastructure, in that • Increase in the price of coal; independent power producers will now be • Increasing difficulties in the sourcing of able to set up power stations in the country. inexpensive power, through bilateral This will, in turn, enable the Government to power import agreements and from the 238 Southern African Power Pool’s short 10.171 All the above mentioned factors, term energy market; coupled with an increase in operating costs • Delay in obtaining approval for tariff due to inflationary pressures, resulted in increases; below target returns on revalued fixed • Increase in the price of power/energy assets. The Corporation recorded imports; unprecedented growth rates of electricity • Prolonged outage of a generator at consumption and the number of consumers, Morupule Power Station; but had declining net profits during the • Shortage of materials for construction. period (Table 10.5). Table 10.5: BPC’s Performance Data 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 estimate Net Profit P’000 206,006 216,585 120,178 101,305 111,143 -219,123 Return on Fixed 5.3 4.1 -1.0 -1.9 1.81 -9.11 Assets (%) Demand MW 394 402 434 473 493 530 Energy sold 2,642.0 2,731.2 2,916.7 3,119.7 2,889 2,943 GWh Consumers (No. 122,625 136,216 151,800 166,651 196,755 196,726 of) Source: BPC Annual Reports

10.172 Several projects, which were aimed of the town, two new transformers were at enhancing system stability, security and commissioned at Woodhall; reliability of power supplies, were • To provide extra power to Tlokweng and completed during NDP 9. These included: the Gaborone Central Business District, • Construction of a transmission line from two new transformers were Morupule Power Station to the Thamaga commissioned, with additional Substation; switchgear and a new control building. • Switchgears installed at the Morupule Substation and Thamaga Substation as 10.173 To take advantage of the window of well as a shunt reactor at Thamaga opportunity brought about by supply Substation, to improve the operation of difficulties in the region, plans were initiated the Thamaga transmission line; to make fuller use of Botswana’s abundant • Two transformers were installed at the coal resources, estimated at 212 billion Morupule Power Station, to delink the tonnes, through the construction of a 2,400 power station auxiliary supplies from the MW Power Station at Mmamabula. The Corporation’s commercial supplies and Government took measures in 2006/7 to to increase supply to the Central District create an enabling environment for the and its environs; establishment of the Mmamabula Coal Fired • To reinforce the existing supplies to Power Station by: Lobatse as well as to the villages south 239 • Entering into an Inter-Governmental NDP 9. The remaining 70 villages will be Memorandum of Understanding with the electrified in NDP 10. In addition to the 100 Government of RSA for the possible villages, the Government has wholly funded development of an export power station electrification of 30 villages which are next in the Mmamabula area, with Eskom of to the power grid, and the project will be South Africa being the main off-taker of completed during NDP 10. Electricity the generated electricity; network extension was done in 64 villages • Facilitating BPC to enter into an Inter- as a way of covering the parts of villages Utility Memorandum of Understanding which have outgrown the existing with Eskom for the development of the infrastructure, and also to bring down the Mmamabula project; standard cost of connections. (Chart 10.4) • Entering into a Memorandum of Understanding with Coal Investment 10.175 Customers have not been paying the Corporation Energy (CIC Energy), an full cost of electricity connection. Loans Independent Power Producer who were offered at below market interest rates desired to develop the Mmamabula Coal and payment periods ranged from 18 to 180 Fired Power Station; months. At March 2008, there were 100,325 • Establishing the Mmamabula Project customers who have benefited from the Coordinating Unit which has been scheme, as compared to 51,669 by March operating since 2007; 2004. The average cost of connection was P30,608. Since the connection fee is P6,000, Rural Electrification there is a subsidy per connection of around P24,000. By April 2009, uptake remained

10.174 During NDP 9, 145 villages were low at 51 percent. Overall, there is no targeted for connection at a total cost of business case for electrification of rural P734 million. The first 15 villages were villages from the grid. Single or cluster electrified in 2004/05, after which work settlement supply from alternative sources stopped due to budget constraints. However, (solar, biomass, etc.) will be considered as in 2007 the Government secured external an option during NDP 10, emphasis will be funding in the form of a low interest loan of placed on the network extension of already USD 89 million (P550 million) from the existing villages. The Rural Electrification Swedish Investment Bank to electrify 100 Scheme is a revolving fund which will be villages. The electrification of the first 30 self funded during NDP 10. villages was completed by the end of 240 Chart 10.4: Access to Electricity in Rural Areas 60 50 40 %access 30 20 10 0 Apr‐04 Apr‐05 Apr‐06 Apr‐07 Apr‐08 Apr‐09 Source: Division of Energy Affairs Ghanzi Cross Border Supply Tariffs

10.176 In December 2004, the Ghanzi Cross 10.177 BPC is required to prescribe charges Border 132 kV line was commissioned, for electricity use that provide a reasonable thereby ending the operation of the local return on the value of its fixed assets, plus diesel power station. The cost of generating an allowance for working capital. In a unit of electricity at the station stood at determining what is a reasonable return, about P1.47 compared to the selling price of consideration must be given, amongst other P0.31. As a result, Government had to make things, to the provision of funds for future budgetary provision averaging P12 million expansion and the payment of dividends. annually for its operation. The commissioning of the new line provided 10.178 Tariffs have increased regularly capacity to supply other villages since 2005 (Chart 10.5), but by insufficient surrounding the Ghanzi Township. amounts to comply with financial targets. Chart 10.5: Average Electricity Selling Price per Unit 35 30 PriceThebe 25 20 15 10 5 0 2003 2004 2005 2006 2007 2008 Year Source: Division of Energy Affairs 241 Regulation and Governance supply and rural. The process was completed in July 2007.

10.179 In March 2003, Government completed the study on preliminary Oil and Gas investigations into electricity industry restructuring. The objective was to provide Supply and Demand for Petroleum the Government with options and Products recommendations on the future of the electricity industry and on improving its 10.181 Demand for diesel increased by operational efficiency. A set of six different nearly 5 percent annually over NDP 9, while drivers for reform were identified: petrol consumption was static (Chart 10.6). • Improving utility performance; The increase in the demand for diesel was • Introduction of competition; mainly due to substantial growth in the • Improving sector governance; mining sector. The demand for illuminating • Privatisation of existing assets; paraffin has been declining gradually, due to • Private financing of new investments; price increases and rural electrification. • Promoting access to electricity.

10.182 On the supply side, challenges

10.180 The reform strategy for public included lack of adequate commercial governance was adopted as an interim storage facilities for the local oil industry, measure. The study resulted in BPC and inequitable supply and distribution of restructuring its operations into Strategic the products to rural areas, which are Business Units for generation, transmission, considered to be less financially attractive corporate services, customer services, for investment by private companies. Chart 10.6: Petroleum Products Consumption 2000-08 500 Petrol Million Litres 400 300 Leaded 200 Unl eaded 100 Di esel ‐ Paraffi n 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Division of Energy Affairs

10.183 The Government maintains strategic petrol and diesel, while paraffin stood at 110 stocks of petrol, diesel and paraffin for use days based on 2008 consumption. Efforts to in case of major supply disruptions. By upgrade the strategic storage facilities to a December 2008, the strategic stockholding level of 90 days were negated by lack of capacity of the existing storage depots stood adequate funding for construction of a major at an equivalent of about 22 days for both unlined underground petroleum storage 242 facility. This has compelled the Government establishing alternative routes to reduce to embark on a more economically viable dependence on the current single supply alternative entailing the development of route through RSA. Currently, petroleum additional above ground storage facilities at products to Botswana are transported by rail three different sites. The plan is to reach a and road. These modes of transportation 90 days current consumption storage compromise security of supply. In addition, equivalent during NDP 10 (Chart 10.7). they are becoming congested, and road Problems with fuel supplies are expected to transport is the most unsafe method. increase during the 2010 World Cup in International best practice is to transport RSA. petroleum products by pipeline across borders and within countries. During

10.184 Government undertook preliminary NDP 10, Botswana will build a cross-border investigations of the economic viability of fuel supply pipeline, which will link the developing a cross border, fuel supply country with supplies from both pipeline. Different sources and fuel supply Mozambique and RSA. routes were investigated with a view to Chart 10.7: Strategic Petroleum Products Storage Source: Division of Energy Affairs

10.185 The prices of petrol, diesel and April 2009. The price of crude oil (Brent) paraffin, which are administratively almost doubled during 2007 and 2008, as the determined, increased from 249, 232 and price rose from US$65.16 to US$117.00 per 205 thebe per litre in April 2004 to 594, 682 barrel (Chart 10.8). It later fell back in 200 and 550 thebe per litre, respectively, by 243 Chart 10.8: Petrol, Diesel, Paraffin and Crude Oil Prices 2004-2008 7 120 6 100 A vg . p u m p p rices P u la/liter C ru d e O il U S $/B arrel 5 80 4 60 3 40 2 1 20 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Petrol P/l Diesel P/l Paraffin P/l Crude Oil Prices US$Barrel Source: Division of Energy Affairs

10.186 Botswana set up the National management of prices in the local market. Petroleum Fund in 1986, under the Finance During NDP 10, there will be significant and Audit Act. Its purpose is to institutional reforms (setting up of the Energy Regulator) which will affect the meet the engineering and construction costs management of the Petroleum Fund and of of the Government Reserve Storage (GRS) petroleum product prices. facilities, to purchase petroleum products for GRS, and to stabilise petroleum product 10.187 The quality of the products delivered pump prices and payment of insurance to the local market improved considerably, premiums for GRS. Due to the fast depletion with sales of lead-free overtaking leaded, of the National Petroleum Fund by heavy and sulphur content reduced from 3000ppm slate settlement (money paid to the oil to 500ppm in diesel in 2006. A number of industry as a result of pump prices being set citizen-owned petroleum trading companies at a lower price than the actual costs of were registered. However, only a few of product delivery) to cover the financial these have since become operational, deficits experienced by the oil companies, signalling concerns about the ability of such the frequency of the fuel price adjustment companies to participate in the local market. was increased from quarterly to monthly. Product prices were adjusted according to their individual monthly over/under Coal recovery rates to reflect the true cost of the products. The National Petroleum Fund levy 10.188 Although Botswana has abundant rate was reviewed in 2007 to ensure that the coal reserves, there is only one operating Fund collects enough money to assist in the coal mine, the Morupule Colliery, with an 244 annual production of about one million Botswana Defence Force (BDF), and the tonnes of low quality coal. To address the Botswana Prisons and Rehabilitation quality issue and the effects of the high ash Services) were directed to stop using content on the environment, a 40,000 tonnes fuel wood. As a result, the BDF and the per month coal washing plant was Botswana Prisons and Rehabilitation commissioned in March 2008. To address Services stopped using fuelwood in their the low uptake of coal in the domestic camps and prisons. However, 57 percent market, a financing mechanism for of primary schools were still utilising affordable and efficient coal fired household fuelwood. Government has undertaken equipment was proposed. The project could to install new coal and LPG stoves in all not take off due to unavailability of suitable Junior Secondary Schools; coal equipment locally. The Rural Industries • Investigation of community-based, fuel Innovation Centre (RIIC) was engaged to wood management practices investigate the possibility of developing a recommended incorporating fuel wood cheap, reliable and affordable domestic in community-based management of stove in August 2008; and a study was natural resources. However, pilot completed in February 2009. RIIC produced projects designed for Makomoto and an evaluation report and funds are being Tlhareseleele were not implemented due sourced to implement the project. to lack of funds.

10.189 To increase accessibility to 10.192 The Agricultural Resources Botswana coal, two more coal depots are Conservation (harvesting of veld products) being built at Ghanzi and Kang. After their Regulations of 2006 prohibits harvesting of completion, the depots will be leased to the veld products for any purpose other than for private sector for operation. Accessibility in domestic use unless written permission has the areas within the vicinity of a coal depot been obtained from the Environmental increased from 21 percent in NDP 8 to 24 Resources Board. Fuelwood has been percent in NDP 9. identified as one of the veld products. EAD in MMEWR and the Forestry and Range

10.190 Two parts of the solid fuel fired Resources Department in the Ministry of equipment standard, namely the coal Agriculture formed a taskforce whose terms burning appliances (reduced smoke emission of reference included implementation of the type) specifications and code of practice for regulation, along with policing and efforts to centralised hot water supply, were raise public awareness of the regulation. developed and approved. The standards cover both domestic and industrial 10.193 During NDP 9, household and equipment. commercial biogas digesters were installed in Lobatse, Pitsane and the Tuli Block areas Biomass for purposes of cooking and generating electricity. During NDP 10, biogas digesters

10.191 In order to achieve the NDP 9 will be installed in some schools and other biomass policy objectives of ensuring institutions of higher learning. In addition, sustainable use of fuelwood resources and farmers will be encouraged to utilise biogas taking inventory of as well as monitoring for electricity generation. woody biomass, the following efforts were made: 10.194 The long term trend of increasing • Government institutions (primary crude oil prices improves the potential schools, junior secondary schools, viability for biofuel production. In 245 Botswana, there is an abundance of marginal 10.195 The study recommended a 50 million land with potential for feedstock and biofuel litre plant for Botswana, with possible (jatropha, sweet sorghum, etc.) production. private sector participation. The plant would A feasibility study to assess the potential for cost between 100 and 150 million Pula, and production and use of biofuels in Botswana, would require 50,000 to 75,000 hectares of particularly ethanol, biodiesel and biogel, production land. was carried out. The results of this study indicated potential for local production and 10.196 Assuming a 50 million litre plant, use of biofuels, mainly ethanol and and projected diesel demand from 2012, biodiesel, with the latter showing greater calculations presented in Table 10.6 indicate potential (Table 10.6). high levels of savings on imported bio diesel. The first production of biodiesel is targeted for 2012. Table 10.6: Projected Savings on Imported Diesel through Biofuel Production Year Projected Diesel Demand Avoided Imports (‘000 litres) (‘000 BWP) 2012 468.32 369.5 2013 489.43 386.2 2014 511.36 403.5 2015 534.65 421.9 2016 559.38 441.4 2017 585.64 462.1 Source: Feasibility Study for production and use of Biofuel in Botswana, MMEWR Energy Efficiency and Conservation conservation practices through addressing District Council meetings,

10.197 Botswana and the Southern African workshops and seminars, the media etc.; region are facing severe power shortages • Carrying out energy audits in six public and high petroleum product prices due to institutions. Some of the increased demand and insufficient supply. It recommendations from the audits have makes ever more economic and been implemented during NDP 9; environmental sense to conserve and use • Development of guidelines for energy energy efficiently. Studies have shown that efficient building design in April 2008. it is possible to save about 10-15 percent of Based on these guidelines, the Building energy consumed through short term Regulation Board has now included a measures of improving energy efficiency. chapter on energy efficiency in the new Government has taken various initiatives for building regulations, which are due for demand-side management, such as implementation during NDP 10; replacement of incandescent lamps by • Development of an energy efficiency compact florescent lamps, and public curriculum and compendium for awareness campaigns. The following engineering courses at UB, and the initiatives have been taken with a view to Advanced Diploma courses of the saving energy: Department of Vocational Education and • Creating awareness among the general Training; public on energy efficiency and 246 • The Botswana Energy Champion Based Rural Electrification study. The competition 2008 was launched to recommendations of the study resulted in the encourage energy saving in Renewable Energy-Based Rural organisations through behavioural Electrification Programme and the formation change. of the Solar Industries Association of Botswana. New and Renewable Sources of Energy

10.198 Botswana has abundant solar energy Energy Planning and Management resources, receiving over 3,200 hours of sunshine per year, with an average isolation 10.200 In order to achieve the goal of on a horizontal surface of 21MJ/m2. This applying Integrated Energy Planning, EAD rate of isolation is one of the highest in the solicited technical assistance from the world. Solar energy is recognised as the International Atomic Energy Agency most promising renewable energy source in (IAEA) for strengthening the planning Botswana. Given Botswana’s power capabilities of energy officers. IAEA funded shortfall, all options for power generation a two year project on Energy Economics and must be exploited. Wind energy currently Electricity Expansion Planning (2007-2008). seems to have little potential. Currently, The project achieved the following: solar energy is used for solar water heating • Transfer of IAEA planning tools to the and small-scale electricity generation using Energy Affairs Division; photovoltaic (PV) technology. Its • Enhanced planning capabilities of contribution to the national energy supply is energy officers through the training insignificant. The NDP 9 energy policy provided. objectives for renewable energy were to: • Promote the use of solar energy for both STRATEGIES FOR NDP 10 power generation and water heating where economically feasible; 10.201 The sector goal is to supply adequate • Integrate grid and non-grid technologies and reliable supplies of energy at minimum for rural electrification; cost, and to utilise energy resources • Promote collaboration with international sustainably. The sector will promote the use organisations; of locally available sources of energy to • Promote research and development on reduce reliance on imported energy, and to new and renewable sources of energy. encourage energy conservation and saving in all sectors. Botswana has abundant coal

10.199 Despite the existence of financing reserves and solar energy, which ought to be mechanisms for PV electrification, uptake exploited. remained low, indicating that there were 10.202 To address sector goals, the barriers to the adoption and use of the following strategies will be pursued: technology. The barriers included, amongst • Infrastructure development for electricity other things, the high initial capital cost of generation and transmission; the solar systems, poor quality of the • Energy conservation and demand systems and lack of after-sales service. To management; address the problems, the Government and • Promotion of new and renewable energy UNDP/Global Environmental Fund invested sources; in identifying and removing barriers • Reduction of dependency on petroleum hindering the widespread use of solar energy product imports. in Botswana through the Renewable Energy- 247

10.203 The NDP 10 energy policy aims at • There is need to develop an overall providing a least cost mix of supply energy policy to address national energy reflecting total life cycle costs and challenges and improve efficiency in the externalities, such as environmental damage. sector. The policy also intends to integrate gender equality issues in development planning, 10.204 The policy objectives for NDP 10 project monitoring and evaluation as set out will continue to be: Economic Efficiency, in the Women in Development Programme Energy Security and Social Equity. Energy and the National Gender Programme services should be supplied at least cost to Framework. The following factors were the economy. This implies that the energy taken into consideration: industry should supply efficiently, energy • Currently, Botswana imports 76 percent should be used efficiently and the energy of its electricity from neighbouring supply industry should be financially countries, particularly RSA. This has sustainable. All energy users should have serious implications for supply security; secure supply. Adequate and affordable hence the need to reduce the risk of energy services to households and exposure to excessive electricity imports communities should be provided where by developing adequate capacity for economically feasible. The environmental local production; impacts of energy extraction, production, • Botswana imports almost all its transport and use will be minimised through petroleum requirements from RSA and the implementation of sustainable energy small quantities from Namibia. usage initiatives. Activities which promote Therefore, there is a need to diversify sustainable development through the routes and sources of supply to reduce integration of women and gender issues into the risk of supply disruptions, in addition all facets of the energy provision process to the Government’s strategic storage will be implemented. programme; • Botswana is a price taker for most of the Electricity non-renewable energy supplies. However, the country is also endowed 10.205 The medium to long term with abundant coal and solar energy demand/supply outlook is presented in Chart resources that can be used to offer 10.3 above. Given the power supply alternative energy supply solutions. shortfalls within the region, national Exploitation of these resources should generation capacity must be increased. Since reflect the associated environmental the BPC Act requires the Corporation to costs; conduct its affairs on a sound commercial • In order to reduce the impact of basis, tariffs will need to be reviewed extraction of fossil fuels on the periodically to reflect the cost of providing environment and of high crude oil energy. NDP 10 strategies to address the prices, the contribution of biodiesel challenges for the electricity sector are set consumption to the total low sulphur out below. diesel consumption should be 5 percent by 2016. Therefore, there is a need to Infrastructure Development develop biofuels; • To reduce scarcity of fuel wood around 10.206 In the past 10 years, the Government populated areas, all government followed a policy of getting the cheapest institutions using fuel wood should power from the region. This has resulted in switch to alternative sources of energy; the country facing power shortages due to 248 regional power supply/demand imbalances. government subsidy. The strategy for In NDP 10, Government has decided to NDP 10 is to explore alternative, more pursue a strategy of self sufficiency and economic technologies. Government will facilitating generation of power for export continue to electrify other villages. by the private sector. In this regard, the Government has already amended the Electricity Supply Act to cater for the Operating Tariffs participation of independent power producers. During NDP 10, the Government 10.209 The BPC will be expected to will develop infrastructure to address the prescribe charges for electricity such that its current mismatch between supply and revenues are sufficient for a reasonable and demand. In addition, Government will sustained commercial return. Tariff develop transmission infrastructure to increases during NDP 9 were not effected support independent power producers in regularly, and mostly were at less than the distributing power from generating stations. recommended levels. To improve the viability of the Corporation, there will be Optimum Utilisation of Alternative regular and cost reflective tariff adjustments. Energy Sources A tariff study will be conducted to support this.

10.207 Past projects to promote use of alternative resources have not been Energy Conservation and Demand successful, mainly due to inappropriate Management technologies, lack of social acceptance, and high capital costs. During the second half of 10.210 Energy efficiency and conservation NDP 9, the Government concentrated on issues have gained importance due to global improving and setting up standard climate change and supply security specifications for solar equipment. During concerns, high energy costs and regional NDP 10, the Government will work on the electricity supply shortages. It is more integration of different energy resources into economical to save energy than to produce electricity generation. These will include it. In NDP 10, the strategy will target solar energy, biogas, biodiesel and coal bed efficient utilisation of energy in buildings, methane. Sectors operating in remote areas, transport and industry, promotion of energy such as agriculture, will be encouraged to efficient equipment, and the development of utilise alternative technologies to improve policy and legislation for demand-side production. management including price as a regulator of demand. Infrastructure Development for Rural Electricity Supply Oil and Gas

10.208 During NDP 9, despite progress with 10.211 The oil industry will continue to play rural electrification providing a way of a major role in petroleum products promoting economic activity and uplifting procurement and distribution. The oil living standards in the rural areas, the uptake industry will also continue to improve and of electricity was very low at only 51 extend its distribution network to cover the percent as of March 2009. The main reason remote parts of the country. Strategies to for the low uptake is the high costs of address the challenges in the petroleum connection, despite the substantial sector are as follows: 249 Diversifying Sources of Petroleum Products

10.212 Botswana imports almost all address the issue of accessibility, more petroleum products from RSA. This has infrastructure development will be increased supply risk associated with supply undertaken, including construction of coal disruptions experienced by RSA. distribution centres. With clean coal now Botswana’s economy is highly dependent on available, ways of increasing uptake, industrial activities that are fuel intensive, especially in government institutions, which such as mining, agriculture and tourism. have been buying clean coal from RSA, will During NDP 10, Government will pursue a be explored. strategy of diversifying the sources and routes of fuel supplies into the country. In 10.215 Coal is one of the most damaging addition, alternative sources of fuel sources of environmental pollution. Clean production, such as coal-to-liquids and coal technologies will be explored to renewable energy technologies, will be enhance both the efficiency and pursued to reduce dependency on foreign environmental acceptability of coal. The supplies. socio-economic and environmental implications of adopting clean coal Development of Petroleum Infrastructure technologies, such as coal gasification, exploitation of coal bed methane and the use

10.213 Government policy is to maintain a of the resulting products in power contingency fuel supply programme of 90 generation, transport, industrial and days local consumption equivalent. domestic sectors, need to be studied. Currently, strategic stocks of petrol and Alternative uses of coal could offer diesel provided only 22 days. In addition, alternative energy supply solutions that can the rail and road transport capacity is not improve energy security, while addressing able to cope with increased demand. life cycle externalities and the development Government will focus on developing fuel of new industries. supply capacity by constructing additional storage capacity, as well as a cross border Improved Energy Planning fuel supply pipeline into the country. A 10.216 In NDP 9, Government tried to central point of coordination for achieve integrated energy planning, procurement and management of the storage facilitated through training as a way of and supply infrastructure will be developed building capacity. The strategy will be to ensure efficient utilisation of these continued in NDP 10, to improve effective resources. An energy Regulator will be energy planning and forecasting for the introduced to cater for efficient management country’s energy sector. A comprehensive of the energy sector. and up to date database, as well as the capacity for energy forecasting, will be Coal developed. Research into energy and social/economic impacts will be carried out,

10.214 In NDP 10, Government will together with capacity building. concentrate on increasing use of local coal. To fully utilise abundant coal resources, Renewable Energy more investors need to be attracted to the sector. A conducive environment is required 10.217 During NDP 10, Government will to promote private sector participation in the concentrate on increasing the use of mining and distribution of local coal. To renewable energy as a way of augmenting 250 existing energy sources and improving undertaken to achieve this. A comprehensive security of supply for other fuels. The communication strategy is needed so as to possibility of a solar thermal power station reduce chances of non-acceptance by the will be explored, private sector involvement general public. in renewable energy will be encouraged, and renewable energy use will be enforced in Regional Cooperation government institutions. Regulations for solar and biofuels will be developed to guide 10.218 In NDP 10, existing bilateral and production and use of renewables. There is a regional cooperation agreements of value need to develop and build capacity for these will be continued, and new ones (regional technologies, and training will be and international) will be identified. Sector Performance Matrix 10.3: Energy Energy Sector Indicators Baselines Targets NDP 10 Goals 2008 2016 Outcome: Adequate and reliable % Demand met 20% 100% supply of electricity (self- sufficiency) Outcome: National access to % Connected to grid electricity 50% 80% electricity % National access 24% 30% Outcome: Improved access to coal Outcome: Improved security of Strategic stock holding capacity in days 23 days 90 days fuel supply Protected environment % utilisation of environmental friendly 0.3% 25% energy technologies (CBM, coal to liquids, coal gasification) Source: Division of Energy Affairs SUMMARY OF PROGRAMMES Electricity Supply Programme Energy Conservation and Demand-Side Management Programme

10.219 The programme is geared towards generation, distribution and supply of electricity nationwide. This entails expansion 10.220 The programme aims at and construction of power stations, building implementing various energy efficiency of transmission network infrastructure and measures to improve reliability of supply and extension of the national grid to areas of to protect the environment. It aims at limiting need, exploring other sources of electricity in energy consumption growth to 5-6% per an effort to increase access to electricity, and annum, with the emphasis on demand ensuring security of supply, diversified management through the price mechanism. supply and environmental sustainability. 251 Adequate Supply of Coal and Petroleum providing infrastructure. The programme Products Programme includes maintenance of strategic stocks of petrol, diesel and paraffin equivalent to 90

10.221 To promote the accessibility and use days of consumption to guard against of coal as an energy source, the Government international supply disruptions. will continue developing coal depots by SECTOR: LAND INTRODUCTION

10.222 Botswana’s total land area is 10.224 Sectoral policies for land focus approximately 582,000 km2, comprising mainly on economic and sustainable three land categories, viz., customary (71 utilisation of land resources and on natural percent), state (25 percent) and freehold land resource conservation. These policies are (4 percent). The main uses of land are for aimed at supporting agriculture, tourism, agricultural, residential, commercial, mining, environmental conservation and industrial, civic, community and recreational human settlement, as well as related socio- activities. The main policy concern in this economic developments. The major concern sector is the limited availability of land is competition for scarce resources, which ready for development, despite an often manifests itself in the form of resource apparently abundant land resource. Another degradation and land use conflicts. It is concern is that where land is made available, critical that land be optimally utilised and it lacks basic services to facilitate speedy conserved through proper land planning and development. For development to take development. This depends, in turn, on the place, land must be made available in a timely availability of reliable information to manner that makes it easy for it to be put to guide informed decision making. productive use. The major challenge for the sector, therefore, is to avail and allocate land REVIEW OF NDP 9 in a timely fashion to meet current and future demand. 10.225 Whilst the objectives for the land sector were not clearly spelt out in NDP 9,

10.223 Historically, prior to the the strategic focus was to optimise establishment of Land Boards in 1968 and utilisation of land resources, and to ensure their start of operation in 1970, customary effective and efficient land administration. land was administered by Chiefs. When the This guided the programmes and projects country was colonised and became the which were implemented during the Plan Bechuanaland Protectorate, two additional period. In addition, some of the existing land tenure categories were added, freehold policies and legislation were reviewed. and crown land. Crown lands were Together, these initiatives were meant to administered by District Commissioners. achieve improved access to land. Following Independence, crown land was converted to state land, and its Land Acquisition administration was handed over to the then Ministry of Local Government and Lands. 10.226 During NDP 9, Government set out to acquire land through various means, in 252 order to augment existing land resources for allocated, 195,583 plots were on customary urban and village development. The land whilst 7,171 were on state land. Government acquired 54,329 ha of land Freehold land acquired by Government is comprising 25,602 ha of freehold farms for allocated through the customary and state North East District, South East District, land systems. Gaborone and Lobatse, and 28,790 ha of customary land for village expansion. 10.228 The Tables below show the breakdown of allocations for various uses. Land Allocation Assessment of the developmental impact of the plots allocated is limited because of poor

10.227 During the Plan period, a total of information availability. The private sector 202,754 plots were allocated against the has also contributed by availing plots for target of 125,000 plots. Of the plots various uses. Table 10.7: Total Number of Plots Allocated by Use on Tribal Land RESIDENTIAL ARABLE COMMERCIAL; Total Water INDUSTRIAL; CIVIC Points & COMMUNITY PLOTS 2003/04 29 272 6 145 4 273 39690 584 2004/05 4 218 33624 605 24 245 5161 2005/06 2 449 25415 668 18 359 4607 2006/07 1539 28791 227 22 882 4 370 2007/08 863 15907 78 10 047 4997 2008/09 3353 52156 768 39 608 9195 Total 144 413 34475 16 695 195583 2 930 Note * In addition to the plots allocated, 2930 water points were allocated for livestock watering in communal grazing areas, and these have no correlation to the plots allocated. A water point is a site allocated for development of a borehole, well or dam. Source: Land Boards –Ministry of Lands and Housing 253 Table 10.8: Total Number of Plots Allocated by Use on State land Residential Urban Commercial, Industrial, Total Agriculture Civic & Community Plots 2003/04 550 - 58 608 2004/05 13 2195 2,183 - 2005/06 143 1079 917 19 2006/07 7 641 634 - 2007/08 92 991 887 12 2008/09 1,535 2 119 1,656 Total 6,706 33 432 7,171 Source: Department of Lands, Ministry of Lands and Housing Regional and Land Use Planning community-based natural resource management (CBNRM). During NDP 9, the Government

10.229 A total of ten land use plans were committed to continuing its partnership with the prepared for various districts: Central, tourism sector to ensure that communities Kweneng, Southern, Ngamiland and realise economic benefits from management of Kgatleng Integrated Land Use Plans; local wildlife resources. Efforts were made to Ghanzi and Kgalagadi Communal Areas get WMAs gazetted. Gazettement allows for Management Plans; Okavango River compliance with the designated land use zone. Panhandle Management Plan and the However, gazettement proved difficult because Ngamiland Waterpoint Survey. In of other competing land uses, especially addition, 26 settlement development livestock farming. This competition necessitated plans were also prepared for Gaborone, the review of the National Land Use Map to Francistown, Selebi-Phikwe, Lobatse, address the issue of continuing land use Maun, Ramotswa, Mogoditshane, conflicts. Tlokweng, Kasane-Kazungula, Hukuntsi, Tutume, Tshabong, Jwaneng, Land Servicing Thamaga, Moshupa, Tonota, Gumare, Letlhakeng, Kumakwane, Mmankgodi, 10.231 Land servicing is a function which is Gabane, Goodhope, Mmadinare, carried out in urban areas. During NDP 9, only Maitengwe, Masunga and Shoshong. To 4,526 plots comprising 4,311 residential, 183 address the socio-economic imbalances industrial and 32 commercial plots were within the country, two out of four serviced out of the targeted 18,574. The failure regional master plans were prepared. in meeting the target was due to funding These are the Western and South Eastern constraints and shortage of land for urban Regional Master Plans. expansion. Servicing was the responsibility of the Ministry of Local Government (MLG) until

10.230 Wildlife Management Areas April 2006, when a decision was made to (WMAs) are an integral part of Tourism transfer servicing of virgin land to MLH. Land Policy implementation. WMAs facilitate servicing by MLG concentrated on upgrading of implementation of the wildlife-oriented already built up areas, whilst virgin land was 254 allocated without services. This information. It entails the computerisation of contributed to the large backlog of land manually stored data, analogue systems and which has to be serviced during the processes as well as the introduction of, and NDP 10 plan period. The private sector training on, new technologies. To complement has also provided serviced land for IGIS, the Remote Sensing project is being various uses in Gaborone (Phakalane, undertaken to acquire, process and disseminate Gaborone North), South East District satellite imagery necessary for national (Mmokolodi and Kgale) and mapping. The development of the Cadastral Francistown. Information System, Geodetic and Topographic Databases has been completed. Inputting of data

10.232 In line with the National Policy is ongoing and the systems will be enhanced on Agricultural Development, 344 during NDP 10. ranches were allocated. Of these ranches, only 120 were developed, thus 10.235 The implementation of land information limiting the desired impact. The rate of systems has experienced a number of problems. ranch development has been very slow, These include: so that the anticipated socio-economic • Inadequate cooperation and collaboration benefits from the reservation of land for between and amongst stakeholders, which ranching are not being realised. led to inefficiency and duplication of effort; • High cost of development of the different Information Systems systems because of lack of integration between different government departments;

10.233 During NDP 9, Government • Failure to keep pace with rapid developed various Land Information technological change; and Systems to enhance decision making in • Inadequate skilled human resources. the development processes. These include the Integrated Geographic Policies and Legislative Review Information System (IGIS), the Physical Planning Portal, State Land Integrated 10.236 To increase and speed up access to land, Management Systems (SLIMS) and the various policies and legislation were reviewed Tribal Land Integrated Management to guide future land administration. This was to System (TLIMS). They are intended to make the regulatory framework harmonious and facilitate the development of a responsive to requirements. The review of the comprehensive land resource database. Tribal Land Act, Town and Country Planning The process entails computerisation of Act, Land Survey Act, State Land Act and the all land records and land management Deeds Registry Act is ongoing and is expected processes at the Land Boards, to be completed during 2009/10. Department of Lands, Deeds Registry and at the SHHA offices in the urban 10.237 One of the challenges for ensuring councils. Both SLIMS and TLIMS are in speedy access to land has been improvement of the early stages of operation, having the land allocation process in the tribal areas. experienced delays in the design and Land Tribunals were set up to handle appeals testing of the software, and in data made in respect of Land Boards’ decisions. The capture. first Land Tribunal was established in Gaborone in 1997. During the Plan period, the second

10.234 The IGIS project is intended to Land Tribunal was established in Palapye in improve access to all geospatial, April 2005 and, subsequently, two ad hoc Land cadastral, geodetic and topographic Tribunals were set up in January 2008, one in 255 Gaborone and the other in Palapye, to STRATEGIES FOR NDP 10 deal with the increasing backlog of appeal cases. Since the establishment of 10.240 The Sector will employ the following the Tribunal, a total of 2,999 cases were strategies to make land readily available for registered; of this number, 1,826 cases development. were completed. Land Banking

10.238 Projects which were not achieved are the conversion of tenure from state 10.241 The Government will continue to land to communal land (tribalisation of acquire freehold farms, where available, to rural state land). This was because of the create a land bank to make land readily complexities in resolving conflicts available for future development. Structures for between land for wildlife and agriculture monitoring compliance with existing laws, uses in the target areas. Land banking, regulations and procedures will be established. i.e., acquisition and reservation of land for future use, was limited. The Land Policing problems associated with land acquisition included shortage of offers, 10.242 Land policing is the process of or owners unwilling to sell the targeted monitoring activities on land, to check land to Government, or offering land at compliance with development covenants and the exhorbitant prices. authenticity of land allocation. This will be effected to avert illegal occupation and

10.239 The process of making land development of land. Structures for monitoring available for different uses has compliance with existing laws, regulations and experienced many difficulties. These procedures will be established. include: • Limited private sector involvement Private Sector Participation in Land Delivery in land delivery because of the absence of primary infrastructure; 10.243 In line with the NDP 10 strategic thrust • Shortage of serviced land because of of encouraging private sector growth, unavailability of land to be serviced, Government will facilitate the delivery of and shortage of funds to service serviced land by continuing to encourage and available land; expand private sector participation in land • Substantial increase in the cost of servicing and delivery. Land servicing development over the years; guidelines will be reviewed to facilitate land • Encroachment of other uses into servicing and extend the programme to rural agricultural land; centres. There are a number of ways in which • Lengthy acquisition processes for the private sector will be engaged in land freehold land; delivery during NDP 10. These are through: • Speculation and illicit sale of land, • 100 percent private funding: in this model, making it difficult to acquire and private companies are provided, through develop; tendering, with an area of virgin land where • Lack of monitoring of the the demand for plots is high (e.g., Gaborone development and use of land; and Francistown). Distribution of 60 percent • Illegal land occupation; and, to citizens and citizen owned companies and • Unavailability of land. 40 percent to others will be targeted. Under this option, Government will only contribute land and will not take part in the allocation 256 of plots. Guidelines will be drafted to Land Use Planning steer this process. • Partial funding: Government will 10.246 Land use planning entails balancing provide virgin land to consortia in socio-economic and environmental towns, such as Jwaneng and Lobatse, considerations for optimal utilisation of land. for them to carry out design and This will be achieved through preparation of construction, and fund part of the integrated land use plans and settlement project. This is currently the second development plans. This is in tandem with both most common form of service Vision 2016 and the Millennium Development delivery. Goal of ensuring environmental sustainability • 100 percent private sector initiative and natural resource conservation. and funding: private companies avail both land and funds for servicing. Computerisation They will also be responsible for sale of plots. 10.247 This refers to the automation and • 100 percent government funding: integration of all land records and land this is the most usual method used management processes. Government will for land servicing where Government continue to develop and integrate Land provides funding for the entire Information Systems to enhance decision servicing. This is usually used for making in the development process. The low cost housing. Then plots are systems will provide integrity, security and allocated at Government rates. The accessibility to such information by both the model will only apply where funds customers and land administration. are available. Information dissemination Legislative and Policy Review

10.248 Information dissemination is the process

10.244 Government will harmonise land of providing information to customers and related Acts to close gaps and to create stakeholders in the housing sector. Quality an enabling environment for land use information is important in decision making and and development, and synergies with Government will put in place mechanisms that other sectors. will enhance information sharing. This will allow feedback and interchange of ideas Reservation of Land to User amongst stakeholders, which is critical for Ministries continuous improvement in housing delivery.

10.245 The strategy is to set aside Monitoring and Evaluation identified pieces of land for specific uses by the Ministries concerned. They will 10.249 Periodic monitoring and identify potential developers and evaluation of land management strategies, recommend formal allocation of programmes and projects will be carried out to identified plots of land to the land ensure compliance with the stipulated authorities. This process is intended to objectives, and achieve the desired impact. eliminate lengthy allocation processes for potential investors and to ensure best Capacity Building in Land Administration use of land.

10.250 This entails developing skills and competencies, supportive structures and 257 motivating employees through staff will be made available to support policy welfare programmes to perform initiatives in the land sector. effectively on their mandate. Resources Sector Goal Baseline NDP 10 Period Targets Key Year Achieve- Year 1 Year Year Year Year Year Year 7 Performance ment 2009/10 2 3 4 5 6 NDP10 Indicator 2008/09 Target Sector Goal 1: To make land readily available for development (for all eligible applicants for state and customary land with demonstrated ability to develop available land within specified timeframes) Level of 2008/09 60% 70% 75% 80% 83% 85% 88% 90% access to land Sector Goal 2: To facilitate sustainable management of land resources measured by level of adherence to plans and level of access to land information Level of 2008/09 92% 92% 93% 95% 95% 100% 100 100% adherence % Level of 2008/09 60% 65% 70% 80% 85% 85% 90% 90% access to land information Access rate 2008/09 50% 60% 65% 70% 80% 85% 90% 90% to land information PROGRAMME SUMMARIES Land Acquisition and Allocation Programme

10.251 The programme entails acquisition of centres to urban standards, it is intended to freehold farms to create a land bank to make attract investors, and to decongest urban land readily available for development. It centres, and to create employment includes acquisition of land for village opportunities in rural areas. expansion and to augment small districts. In acquiring such land, care will be exercised not to take away land suitable for Land Information Management agricultural production. Under the Programme programme, virgin land will be zoned for residential, commercial and industrial 10.252 This programme involves purposes. The programme is intended to development of information systems to service urban areas by putting in place enhance decision making. The systems roads, street lights, storm water drainage, include the Physical Planning Portal, State sewer connections, power, potable water and Land Integrated Management Systems telecommunications. It is Government’s (SLIMS) and the Tribal Land Integrated intention to service major rural centres to Management System (TLIMS) to develop a urban standards by putting in place similar comprehensive land resource database. infrastructure and facilities to those planned These involve computerisation of all land for urban centres. By upgrading major rural records and land management processes at 258 the Land Boards, Department of Lands interactively connected in order to enable Deeds Registry, and the SHHA offices in the usage of information in an efficient and urban councils. flexible way.

10.253 The main objective of the Physical Planning Portal is to manage Town and Land Management Programme Country Planning Board records and related appeals. To complement IGIS, the Remote 10.255 This programme entails the Sensing project will acquire process and preparation of land use and spatial disseminate satellite imagery necessary for development plans. It will facilitate the National Mapping. preparation of 29 settlement development plans by local authorities. One regional master plan and one district settlement Spatial Information Management strategy will be prepared, and two planning Programme studies will be conducted. Management and dissemination of planning information will

10.254 This programme entails the be enhanced through the Physical Planning development of information management Portal and a web-based physical planning systems that will deliver spatial data to the atlas. Other projects include the demarcation Government and the public. It comprises the of boundaries between state and customary densification of the Botswana National land, and delineation of districts and Reference Frame to provide a base for national boundaries. Studies will be surveying of residential, commercial and undertaken to determine economic rentals industrial plots; a National Mapping for tourism areas to ensure that the Programme, to produce maps at various Government and the private sector derive scales for the entire country and individual optimum benefits from the use of natural villages; National Atlas Revision, which will resources. A study on the improvement of provide reference material on Botswana; and capacity building, and systems integration National Spatial Data Infrastructure to for land administration procedures and provide a forum for exchange of information processes will be undertaken. with the geographic information community. The infrastructure will provide a framework of spatial data, metadata and tools that are SECTOR: HOUSING AND GOVERNMENT OFFICES INTRODUCTION

10.256 This sector is responsible for through construction, purchase and rental of coordinating the provision of office private houses in the open market. accommodation for Government departments, and housing accommodation REVIEW OF NDP 9 for public officers. Office accommodation is provided through the construction of 10.257 To improve the efficiency of the civil Government office blocks, the purchase of service, Government continued to provide private buildings and rental of office space. suitable office accommodation. A total of 25 Housing for public officers is provided Land Board offices have been constructed in NDP 9 against the planned 18. Some main 259 Land Boards and some sub-Land Boards 10.261 Government maintains three still have inadequate office accommodation categories of housing to accommodate and will either need new buildings or public officers. These are District, expansion and/or refurbishment. Institutional and Pool Housing. Currently, there are 24,645 housing units in all

10.258 Two office blocks (Jwaneng categories. The Government rents an Integrated and Ministry of Health office additional 700 housing units from the blocks) were completed for Central private market for qualifying public servants Government, and additional office space at subsidised rates. Government currently was sourced from the private sector. The relies on the Botswana Housing Corporation problem of inadequate office (BHC) for the implementation of the District accommodation persists because of Housing Programme. The undertaking was implementation capacity constraints within concluded during the 2007/2008 financial Government, as well as in the private sector, year, in line with part of BHC’s mandate, which was also unable to meet Government which is to provide for the housing, office demand for office space. To address the and other building needs of Government and problem, Government has piloted the Public local authorities. Private Partnership (PPP) concept as a way of fast tracking provision of office 10.262 BHC have planned to deliver 3,400 accommodation. houses by the end of NDP 9 but only delivered 3,373. The Corporation has

10.259 Construction of several office blocks promoted homeownership by selling a total was suspended since an alternative of 2,744 houses to Batswana over the Plan procurement method (PPP) was to be piloted period. with Block 1 for MLH/MEWT and Lot 21 for the Land Tribunal/Ombudsman. There 10.263 The implementation of this was selective acquisition of existing programme has experienced the following buildings to accommodate the Department problems: of Wildlife and National Parks, Police, • Limited capacity to oversee construction Auditor General, MTI, IEC and MWT. An projects by Government officers because amount of 112,472 square metres (m2) of the officer/project ratio is too low; office space was acquired as against a target • Excessive cost of PPP to Government; of 86,500 m2. • Inadequate maintenance, refurbishment and full utilisation of existing structures

10.260 With regard to public officers’ due to poor monitoring and inadequate housing, the Government augments the capacity; existing stock by renting housing units from • Inadequate supply of office space and the private market, which are sublet to housing units in the market; public servants through a policy of rent • High cost of construction; support. A number of parastatals and private • Weak institutional mechanisms to sector companies also enable access to monitor and evaluate the impact of the housing for their staff. These include programmes and projects; BOTEC, WUC, BOB, BTC, BPC, and Air • No legislative framework to support Botswana. Commercial financial institutions private sector, NGO and CBO play a role in making housing finance participation; accessible without Government • Government’s over-reliance on BHC, to involvement. the possible detriment of private sector involvement; 260 • Uncoordinated involvement of the Indigenous Building Materials various stakeholders in housing delivery; and, 10.267 The sector, through the Department • Shortage of serviced land, especially in of Housing in collaboration with the private urban areas. sector, will ensure adequate research on available indigenous building materials with STRATEGIES FOR NDP 10 a view to encouraging their use. Efforts will be made to ensure that such materials are Private Sector Participation in Housing improved through treatment to ensure Delivery durability, fire and weather resistance. The existence of appropriate building technology

10.264 Whilst the National Policy on and raw materials such as laterite, clay, fly Housing provides for active participation by ash and lime which are available in the the private sector in housing delivery, there country, provide an opportunity for is currently no legal framework to direct sustainable production of local building such participation. The same applies to the materials. involvement of NGOs and Civil Society. Legislative and Policy Review

10.265 In view of the above, a strategy will be developed for private sector participation 10.268 Government will continue to foster a in housing delivery. This will follow various conducive policy implementation methods from full PPPs to total government environment. This will involve the funding. The various methods of delivery of development of administrative, institutional land for housing are described at paragraph and legislative frameworks. The realisation 10.246 above. of an effective policy environment during NDP 10 will be through the formulation of Innovative Building Technologies various pieces of legislation, mainly the Housing Act. Continuous legislative and

10.266 In order to fast track housing policy review will harmonise all related delivery and reduce construction costs, instruments to close the gaps and to create innovative methods of construction will be an appropriate environment for public researched, adapted to the local environment officers’ housing and office provision. The and implemented. Innovative technologies process will also include creating synergies refer to the use of non-conventional building with other sectors, such as financiers, methods which make construction faster and developers and construction companies. cheaper to the end users. All stakeholders, including government, property developers, Fostering of Partnerships financiers and suppliers of building materials, will be involved in identification, 10.269 Fostering partnership is the process promotion and adoption of these of identifying and bringing together all technologies because ownership is critical in stakeholders with a common interest in ensuring sustainability, acceptability and housing delivery. This takes into countrywide coverage. This process is consideration the comparative advantage of facilitated by the Building Standards Board different players in different areas of under MWT. housing. Government will foster partnerships with donor agencies, NGOs, the private sector and financial institutions. A major aspect of this is developing funding 261 mechanisms which will suit different stakeholders in the housing sector. income groups. Government will put in place mechanisms that will enhance information sharing Home Ownership including computerisation of housing records. This will allow feedback and

10.270 The strategy of home ownership interchange of ideas amongst stakeholders encourages citizens to build and own houses which is critical for continuous as opposed to living in rented improvement in housing delivery. The accommodation. Government will create an systems will provide integrity, security and enabling environment for institutions and accessibility to such information by both the other organisations to encourage their customers, developers and financiers. employees to own homes. Government will develop schemes to facilitate first time home Monitoring and Evaluation ownership and protect principal homes.

10.272 Periodic monitoring and evaluation Computerisation and Information of the housing strategies, programmes and Dissemination projects will be carried out to ensure compliance with the stipulated objectives.

10.271 Information computerisation and Remedial measures will be put in place as dissemination avails information to and when necessary. Sector Performance Matrix 10.5: Government Housing Sector Goal Baseline NDP 10 Period Targets Key Year Achieve- Year 1 Year Year Year Year Year Year 7 Performance ment 2009/10 2 3 4 5 6 NDP 10 Indicator Target Sector Goal: To facilitate development through provision of adequate office and residential accommodation for government officers % of 2008/09 80% 85% 90% 95% 100 100 100 100% government % % % officers adequately accommodate d in offices % of 2008/09 40% 50% 60% 70% 80% 90% 100 100% government % officers adequately housed 262 PROGRAMME SUMMARIES Infrastructure Development Programme

10.273 This programme entails provision of Land Board Office blocks. Construction, Public Officer Housing, Ministerial Houses upgrading and purchase of houses for and Government and District Councils, Land Purchase and construction of houses for staff Boards, District Administration and Tribal based in towns will continue. This Administration staff based in the districts Programme includes the provision of will be continued during NDP 10. relevant office supplies and equipment. 263 SECTION V: ENVIRONMENT, COMPASSIONATE JUST AND CARING NATION 264 CHAPTER 11 SUSTAINABLE ENVIRONMENT KEY RESULT AREA: SUSTAINABLE ENVIRONMENT Key Result Area Description

11.1 Botswana boasts a pristine emphasis on using renewable resources at a environment comprising an interdependent rate that is in balance with regeneration combination of clear skies, sunshine, fresh capacity. Non-renewable resources, such as air, forests, grass, wildlife, water, land and minerals, should be exploited in an minerals. The concept of sustainable environmentally friendly manner. environment can be defined as a condition that is able to preserve these assets and at 11.4 In addition to sustainable utilisation the same time be able to meet the needs of of natural resources, the fragile resource- current generations without compromising base needs to be protected from over- the ability of the future generations to meet exploitation and, where necessary, restored their own needs. This includes the utilisation to avoid long-term and sometimes of both fauna and flora. irreversible degradation. Human actions affect the environment in terms of pollution,

11.2 The Key Result Area (KRA) covers and changes in land-use, forest cover, environmental conservation and protection, animal and fish populations and water environmental policy and management, quality, which in turn affect the well-being meteorological services, wildlife and of the local people. Development forestry. Sustainable environment is a cross interventions by the Government, civic cutting issue which has strong linkages with organisations, the private sector and a large number of other sectors. Botswana’s individuals should, therefore, aim to prevent, productive economy is fundamentally reduce and repair the impact of human dependent on its natural resource base via activities ("pressures") on the environment. mineral and water exploitation, energy, tourism and agriculture. Many people, 11.5 Over a third of the country’s total particularly in rural areas, are dependent on land area is under some form of natural resources for their livelihoods. conservation, with 17 percent as national Hence, sustainable environment is a parks and game reserves, 20 percent as cornerstone of national development wildlife management areas (WMAs), and planning, requiring coordinated approaches. one percent as forest reserves. WMAs are an integral part of Tourism Policy implementation. They facilitate the

11.3 Vision 2016 reaffirms the participation of communities in natural importance of sustainable development and resource conservation, management and the protection of the environment. It places a development through the Community-Based particular focus on the development of the Natural Resources Management (CBNRM) rural economy. Against this background, programme. conservation and sustainable management of natural resources should be fully integrated in the development planning process, with 265 NDP 10 Goal

11.6 The NDP 10 goal arising from the developed in 2004 and in 2008, respectively. Vision 2016 pillar of a Prosperous, The review of the following Acts and Productive and Innovative Nation is: Policies was initiated during NDP 9: The • The sustainable management of Waste Management Act of 1998 and natural resources. Atmospheric Pollution Prevention Act (APPA) of 1978, Forest Act of 1968,

11.7 The associated Millennium Herbage Preservation Act of 1977, Development Goal (MDG) is: Agricultural Resources Conservation Act • To ensure environmental (ARCA) of 1974, Wildlife Conservation and sustainability by 2015 (MDG 7). National Parks Act (WCNPA) of 1992 and

11.8 Sectors contributing directly to this Wildlife Conservation Policy of 1986. The goal are Agriculture, Environment, Mining, development of Wetlands, Forest and Fire Energy, Safe and Secure Nation, Education Management Policies was also initiated. and Skills Development, Trade and Industry Environmental strategies and plans, such as and Local Government. There is a need for a the National Action Plan under the United coordinated and collaborative relationship Nations Convention to Combat between these stakeholders for the Desertification (UNCCD), Biodiversity achievement of a sustainable environment. Strategy and Action Plan, under the The stakeholders in the Environment sector Convention on Biological Diversity, will, in pursuing this goal, undertake Designation of the Okavango Delta as a programmes and projects aimed at ensuring Ramsar site, and the Okavango Delta a high level of environmental sustainability. Management Plan (ODMP) and the Multi- For this reason, strategies will be embarked lateral Environmental Agreement (MEA) upon in areas of Environmental Protection, implementation strategy, were developed. Environmental Conservation, and Environmental Policy Management. These 11.10 The National Policy on Museums will include development of action plans Development was passed by that will ensure the reduction of Parliament in April 2004. The policy environmental pollution and intensive recommended the establishment of the monitoring of environmental resources to Botswana Museum and Monument Service curb degradation and over-exploitation of (BMMS), a government funded public body natural resources. to oversee the sound management of all cultural and natural heritage and resources in Goal Performance during NDP 9 Botswana. This will be enabled by the repealing of the National Museum and Art

11.9 The Ministry of Environment, Gallery Act of 1967. Wildlife and Tourism (MEWT) was established in September 2002 to coordinate 11.11 In spite of these achievements, a all issues relating to environmental number of problems were experienced conservation and protection. During NDP 9, during the implementation of NDP 9. These the Environmental Impact Assessment Act will partly inform the programme for (EIA) of 2005 and the Community Based NDP 10. Some of the problems identified Natural Resources Management (CBNRM) include the following: Policy of 2007 were approved. The • Meteorological forecasting was Regulations under Agricultural Resources constrained by low observational Conservation and Fisheries Acts were network coverage due to the limited 266 number of stations and shortage of attained through implementation of the adequately trained observers. The latter following strategies: reduced operational hours from twenty • The mainstreaming of environment and four to eight. As a result, valuable climate change into development weather information, useful for socio- processes. economic development, was lost; • Numerical weather predictions will be • The implementation of waste enhanced to overcome constraints on management projects was adversely meteorological forecasting experienced affected by inadequate technical during NDP 9. This will improve capacity, resulting in delayed completion meteorological observations and of planned projects. A notable increase accuracy of information. in the generation of various types of • New strategies in the waste management clinical waste, such as condoms, sector, including separation of waste at disposable nappies, hospital and source, development of waste veterinary waste, was observed, posing management infrastructure and the challenge of how to dispose of them improved management and collection of in an environmentally acceptable waste will be pursued. These strategies manner; will facilitate public buy-in of the • Over-exploitation of forest and range implementation waste management resources was attributed mainly to hierarchy (i.e., Reduce, Reuse and commercialisation of the resources. The Recycle). FAO report (2000) cited a -0.1 percent • Carrying out a forest resources inventory annual denudation of forest resources. at ecosystem level. This will inform The situation was exacerbated by the decision making for forest resource expansion of agricultural activities, wild management. land fires/bush fires and urbanisation; • Improvement of wildlife management • The growth in the elephant population practices to retain animals within the has resulted in increased human-wildlife protected areas. This will limit contact conflict as they move into new areas and with humans and thereby reduce human- the human population continues to grow. wildlife conflicts. As the population of elephants increases, • Implementation of the Community they damage vegetation, which affects Based Natural Resource Management other species such as the rare Chobe Policy. This will enhance conservation bushbuck. of the resources through empowerment of local communities. Goal Strategy for NDP 10

11.12 The NDP 10 goal of sustainable management of natural resources will be SECTOR: SUSTAINABLE ENVIRONMENT INTRODUCTION wetlands and two perennial rivers in the

11.13 The country consists of the Kalahari north. The principal land cover is natural Desert (two-thirds of the land area), the grassland, shrub land and woodland, a sixth 267 of which is conserved in national parks and planning and implementation process. These reserves. These natural resources need to be institutions are the NCS Board and the NCS protected and conserved for the future. (Coordinating) Agency.

11.14 Historically, environmental 11.17 The Government of Botswana has conservation and protection were done committed itself to a number of Multilateral through traditional practices, including Environmental Agreements (MEAs), which rotational harvesting of wood resources, provide a framework for environmental hunting and letsema (taboos related to use of protection and conservation of natural plants and animals). Controlled areas were resources. These agreements relate to waste introduced in the 1960s as a way of and chemicals management, biodiversity regulating mining and industrial activities. conservation, management of wildlife Several key long term pieces of legislation resources, wetlands, climate change, were developed early after Independence, endangered species (both flora and fauna), including the Forest Act (1968), Water Act pollution and a number of protocols on (1968), Atmospheric Pollution Prevention shared water sources. In order to realise the Act (1972), Public Health Act (1971), objectives of the MEAs, a number of Agricultural Resources Conservation Act national action plans are being implemented. (1976). More recently, the Wildlife These include the National Biodiversity Conservation and National Parks Act Strategy and Action Plan, the National (1992), the Waste Management Act (1998), Action Plan on Desertification, the and the Environmental Impact Assessment Okavango Delta Management Plan and the Act (2005) have been passed. National Action Plan on Persistent Organic Pollutants.

11.15 At the international level, the Stockholm Convention on Human 11.18 The Ministry of Environment, Environment (1972) was regarded as an Wildlife and Tourism was established to important milestone in the recognition of the consolidate environmentally related interdependence of environment and functions. Following the creation of the development. The 1980 World Conservation Ministry, several initiatives were introduced, Strategy emphasised conservation as including (see paragraph 11.9), inter alia, a including both protection and the rational National Capacity Self Assessment, a use of natural resources. The Brundtland National Communication Policy, Commission (1987) popularised the concept development of natural resource accounts of sustainable development as given in (water, livestock and minerals), paragraph 11.1. implementation of the National Waste Water and Sanitation Master Plan, Botswana’s

11.16 In recognition of the concerns for initial national communication to the United sustainable development reflected in the Nations Framework Convention on Climate above, the Government of Botswana Change, the construction of landfills, the adopted the National Conservation Strategy establishment of a national environmental (Government White Paper No. 1 of 1990). laboratory, the establishment of the The White Paper provided for the Designated National Authority for Clean establishment of institutions with prime Development Mechanisms and 21 air quality responsibility for coordinating and monitoring stations. implementing the National Conservation Strategy (NCS), and for maintaining close 11.19 In the past decade, NGOs, links with the national development community based organisations and the 268 private sector have become active in to inform the integration of environment into working with Government in promoting the national and district development sustainable development. During this period, planning processes. To enhance the government funding and technical support integration of these concepts into of NGOs’ activities and programmes has development planning, sectoral officers, increased rapidly, resulting in the formation including planners, were trained on of community trusts and direct funding of environmental-economic principles and NGOs, and in heightened awareness of methodologies. environmental issues in the population at large. Funding of environmental initiatives 11.23 Botswana has developed policies, and technical assistance was made possible strategies and plans that support the through international and regional implementation of MEAs. All ratified MEAs partnerships. are currently mainstreamed in national legislative framework and policies. SECTOR PERFORMANCE IN NDP 9

11.24 The State of the Environment Report Natural Resource Management (SOER) was published in 2002 and addressed six key areas of biodiversity, land

11.20 Botswana’s reliance on her natural and land resources, waste and chemical resource base requires that the integrity of management, water resources, socio- the environment is maintained. However, economic issues and atmosphere and climate the environment is threatened by climate change. In 2005, a district State of the change, pollution and degradation of natural Environment (SOE) reporting system was resources. developed to ensure that the SOE reporting is used to inform national and district

11.21 During NDP 9, the natural resource development planning processes. base has been observed to be declining due to inadequate coordination, enforcement, 11.25 The Environmental Impact and management of natural resources. Assessment (EIA) legislation was enacted in Improper management of natural resources March 2005, and the law came into force in and waste disposal has resulted in increased May 2005. The objective of the EIA Act is pollution of the environment, increasing to provide for the establishment and desertification, habitat loss which has led to strengthening of EIA in decision-making increased human/wildlife conflicts and processes, and to ensure that the declines of some wildlife species, loss of environmental implications of policies, forests due to excessive and indiscriminate programmes, plans and projects are harvesting for firewood, fencing poles and evaluated before their implementation. It is veldt products. mandatory that all proponents of development projects subject their

11.22 During NDP 9, the Environmental developments to the EIA process, through Economics and Natural Resources which they commit themselves to the Accounting programme was established. Its prevention and mitigation of negative aim was to assess the value of natural impacts on the environment by producing resources and mainstream environmental- detailed environmental management plans. economic instruments into the planning process. Three natural resource accounts 11.26 Environmental education and were constructed for livestock, minerals and awareness is key in engaging the public in water. The data from the accounts were used sustainable management of natural resources 269 and prevention of environmental 11.29 Efforts to improve access to degradation. Since its inception, sanitation facilities were hampered by lack environmental education and awareness has of capacity, with most projects being carried focused on raising awareness through over to NDP 10. Only about 40 percent of workshops, commemoration of the population is estimated to have access to environmental days and national fairs, adequate sanitation facilities. Inadequate seminars, infusing environmental education sanitation infrastructure and equipment for in school curricula, and developing waste disposal, environmental deterioration, strategies for integration into development and contamination of ground and surface planning. The level of awareness has, water sources, mean that urgent action is however, not been measured. required. In December 2007, Cabinet directed that sanitation programmes should Waste Management and Pollution be delivered by the Ministry of Local Control Government, with the exception of the construction of landfills and sewerage

11.27 A deliberate move was made during infrastructure. NDP 9 to intensify the underground water monitoring programme. In response to the Meteorological Services underground water pollution in Ramotswa, pit latrines were replaced by a nation-wide 11.30 The environment sector continued to roll out of the ventilated improved pit (VIP) provide meteorological data and information latrines, which are more environmentally for use by all sectors of the economy. In friendly. On the waste management side, an pursuit of the aforesaid, 16 synoptic stations increase in generation of waste, pollution and 500 rainfall stations were established to and land degradation has been experienced. improve coverage of the country. A bill to During the Plan period, out of eight planned establish the Department of Meteorological landfills, five were completed, while Services and a Designated National construction of two is ongoing. There was a Authority was also initiated. realisation of the need to use treated waste water to support irrigated agriculture, as was Forestry and Range Resources the case in the Glen Valley area. Other initiatives that were introduced to improve 11.31 Fuelwood as an energy source is enforcement of the Waste Management and used by most of the population in the rural Atmospheric Pollution Prevention Acts areas. It was estimated that 57 percent of included the employment of temporary primary schools were still utilising personnel (the Green Scorpions) to increase fuelwood, together with other government visibility of policing. institutions. Bio-fuels have contributed to pollution; and their use was characterised by

11.28 Implementation of waste high prices during the latter part of NDP 9. management projects was adversely affected by inadequate resources within the sub- 11.32 The forestry sub-sector has put in sector. Furthermore, industry and the public place a policy and an improved legal have not been cooperative in managing framework to comply with international waste. Toward the end of NDP 9, there was obligations and to monitor use of vegetation a noticeable increase in pollution of resources. In addition, regulations were underground water and air. passed to monitor harvesting of veldt products. Problems identified included over- exploitation of forest and range resources, 270 mainly due to commercialisation. The photographic tourism. The revenues rose to expansion of agricultural activities, P22.8 million in 2007 for wildlife-based urbanisation and wild land fires/bush fires community-based trusts alone. Cultural aggravated the problems. The maintenance tourism, including veldt products marketing, of fire breaks has been privatised to improve craft production and others, accounted for fire management in the country. Insufficient the rest. In 2007, the Community-Based baseline data on national vegetation Natural Resources Management Policy was resources has also contributed to the lack of passed by Parliament to guide the a clearly defined policy direction. implementation of the CBNRM programme. Wildlife and National Parks 11.36 A number of implementation problems and challenges were experienced

11.33 The overall wildlife biomass in by government during the implementation of Botswana has increased substantially over NDP 9, and those problems will help inform the past 10 years. The bulk of the increase the programme for NDP 10. These include: has resulted from the doubling of the inadequate technical skills in specialised elephant population between 1994 and 2006. areas, weak capacity, lack of integrated As a result, human-elephant conflict is on planning in environmental management, and the rise outside the protected areas. On the inadequate institutional structures to monitor other hand, there has been a decline in the implementation of MEAs. populations of springbok, hartebeest, reedbuck, tsessebe and wildebeest. Some of National Museum and Monuments the decreases might be attributed to increased human activities in the south- 11.37 In an effort to protect national western ecosystem whose integrity is under heritage, one hundred heritage sites were serious threat. gazetted as Monuments in 2006, the Three Dikgosi Monument was erected in Gaborone

11.34 The 14th Conference of Parties to the Central Business District, a 28km long Convention on International Trade in buffer fence around the Tsodilo World Endangered Species (CITES) in June 2007 Heritage Site Core Zone was constructed as approved Botswana’s proposal to trade in part of its development plan and the elephant by products, such as hides, leather National Botanical Garden was established. products, hair and ivory. With the advent of an infrastructural development boom in Botswana, developers

11.35 As a measure to involve and consultants were sensitised to ensure communities in the management of wildlife adherence to the Monuments and Relics Act resources, communities were introduced and of 2001. Development of the Mogonye, mobilised to engage in projects under the Majojo and Gcwihaba Monuments’ concept of Community-Based Natural management plans were completed. Designs Resources Management (CBNRM). These for Galleries at the National Museum and community-based organisations (CBOs) the Natural History Centre were also cover 150 villages in 10 districts of completed. Botswana, involving more than 135,000 people. The various CBNRM activities created 8080 jobs and generated P16.3 million in revenue by 2006. Most of the revenue was generated by wildlife-based CBOs, particularly trophy hunting and 271 STRATEGIES FOR NDP 10 Mainstreaming Environment and Climate Change into Development Processes

11.38 More attention will be paid to informed by real cases, and grounded in making development more sensitive to the solid science. impacts that climate (and global) change will have on land and water resources in Natural Resource Management particular, and on how disaster risk management will be integrated into 11.42 There is a threat to the environment development planning. Without proper as a result of current practices on the planning, the lack of adaptation to climate utilisation of natural resources and the change may impact heavily on the country’s effects of global warming. Climate change long-term development. projections also suggest that the rainfall season will be shorter or less reliable in the

11.39 Improved understanding of existing future. Hence, there is a need for careful climate-society-environment interaction will management of natural resources, provide insights into the country’s biodiversity and ecosystems. vulnerability to and adaptive capacity to deal with future climate change. The concepts of 11.43 The generation of waste, pollution resilience, vulnerability and adaptation are and land degradation is aggravated by critical to understanding the human growth in industries and other sectors. This dimensions of climate change. These cross- can have adverse effects on the environment cutting issues need to be understood and the and impact negatively on livelihoods if linkages strengthened. corrective measures are not put in place.

11.40 Given the importance of natural 11.44 Given the drive towards economic resources to rural livelihoods, more attention diversification, there will be a need for a will be paid to the issue of equity, systematic approach towards the integration differential outcomes and changing of resource management and development, vulnerabilities. Most vulnerable are the poor cutting across economic sectors, and in semi-arid areas, as they are dependant on recognising the linkages between natural climate-sensitive natural resources and are resources. Environmental legislation is less able to cope with the impacts. Long critical in the regulation and use of natural term proactive adaptation policies that resources. It provides a management tool for reflect local realities and concerns will be environmental planning and control of pursued. Risks need to be assessed and development. vulnerabilities need to be taken into account. Improved disaster risk reduction plans and 11.45 The national goal will be attained the capacity to respond to extreme events through the following outcomes: improved need to be reflected. sanitation, weather-climate services and products, clean and safe environment,

11.41 It will be important to carry out conservation of natural resources, improved environmental sector plans (energy, water, livelihoods and poverty reduction, wildlife etc.). This will involve undertaking management, reduced human-wildlife quantification of costs and of scenario conflict, maintained ecosystem integrity, planning. Environmental change improved access to information, informed assessments will be ‘ground truthed’, i.e., 272 decision making, improved environmental which will cater for increasing waste governance and customer satisfaction. generated in major population centres.

11.46 There is a need for a coordinated and Meteorological Services collaborative relationship between key role players and stakeholders in the 11.49 Improved weather forecasts and environmental sector in order to achieve warnings will be achieved through the sustainable development. The environment implementation of the numerical weather sector will, in pursuing this objective, prediction function (weather modelling), the undertake programmes and projects aimed at expansion and upgrading of the ensuring a high level of environmental meteorological network, monitoring of sustainability. To meet this objective, ozone depleting substances (ODS), and the strategies will be embarked upon in natural implementation of clean development resources utilisation, climate change and mechanisms. The accreditation of the environmental pollution control, as well as National Environmental and the measures to address land degradation. Meteorological Calibration Laboratories will enhance the quality and accuracy of Waste Management and Pollution information. Control Forestry and Range Resources

11.47 The waste management sub-sector would address challenges experienced 11.50 During NDP 10, the main thrust for during NDP 9 through the following the forestry sub-sector will be the fostering strategies: provision of waste and sanitation of conservation, sustainable management infrastructure, development of waste and utilisation of forest resources to ensure a management plans, intensification of the continuous flow of products and services environmental pollution monitoring from the forests without irreversibly programme and managing quality of the damaging their capacity to recover. Forest environment to allow recovery of natural inventories will be conducted nation-wide to resources such as water, air and soils. The provide the base for resources information. strategies will also include implementation The sub-sector aims to promote indigenous of the constituency-based clean-up tree planting and intensify education and campaigns. In addition to the above, the awareness of the communities. Utilisation of environmental protection programme will be forest resources will be approached delivered through the provision of holistically, taking into consideration all Ventilated Improved Pit ventilated improved production, protection, and socio-economic pit (VIP) latrines, waste management functions. The Community Based Natural equipment, machinery and increasing Resource Management (CBNRM) numbers of drop-off centres. programme will be implemented as a rural

11.48 Measures will be made to step up the development and conservation strategy to privatisation of certain aspects of waste promote the sustainability of resources. management. This will contribute towards enhanced waste management operations, Wildlife and National Parks employment creation, and the Vision Pillar of ensuring a clean and safe environment. In 11.51 To address challenges encountered addition, Government will support the during NDP 9, the sub-sector aims to construction of sewerage infrastructure increase wildlife and fish populations as bedrock for tourism. Aerial and ground 273 counts will be carried out to determine will be undertaken to inform best practices species diversity and populations to provide and heritage management. credible information for wildlife management. Various strategies, such as Sector Performance Matrix – promoting non-consumptive use of wildlife Environment resources (e.g., photographic activities) and provision of water within protected areas, 11.53 Achievement of the sector goal will promote the growth of wildlife “sustainable management of the natural populations. In terms of governance, there resources” will be assessed by the following will be formulation of new policies and indicators: legislation and review of existing ones to • Access to sanitation facilities by the enable smooth implementation of the above population will be improved from 40 strategies. The sector will also promote percent to 55 percent through stakeholder participation, including the implementation of the rural sanitation CBNRM programme, in coordinated and programme and increasing connectivity transparent environmental governance. to the sewerage system; • Reduction in ozone depleting substances National Museum and Monuments (ODS) by prohibiting import of such substances at ports of entry;

11.52 The main focus will be on • Improved biomass management through development and management of spreading of trans-frontier conservation monuments and heritage sites. Botswana’s areas (TFCAs); monuments are not fully appreciated • Species diversity will be increased because of lack of exposure and hence their through re-introduction of indigenous economic value has not been realised. There species, promotion of the non- is therefore need to develop these sites consumptive utilisation programme and extensively to enhance their appreciation protection of endangered and rare and recognition. This will benefit local species; communities and contribute to the • Forest cover will be improved through diversification of the tourism product. There intensification of planting of indigenous will be improved heritage management trees and improvement of fire through research, documentation and management strategies. partnerships. Exchange programmes, benchmarking and consultative workshops Matrix 11.1: Environment Sector Performance Matrix GOAL NDP 10 Key Performance Indicator Baseline: NDP 10 Period Targets Sustainable Management % of population with access to 39% (2003) 55% of the Natural Resources sanitation facilities % reduction in ODS 6.8 tonnes 0% Biomass Species Index 1.32 LSU/Km2 1 LSU/Km2 2.69 (2004/05) 2.55 % of forest cover 80% 85% Note: LSU = Livestock Unit 274 PROGRAMME SUMMARIES Environmental Protection Programme

11.54 Going forward, this programme strategies to promote sustainable management will focus on mainstreaming climate of natural resources. There will be analysis of change both in relation to mitigating the the progress made with CBNRM and effects of emissions, and to developing identification of key areas to be addressed (such adaptation strategies for economic as to scale up and diversify CBNRM diversification, agriculture, malaria operations). Interventions, such as more eradication, etc. It will identify the most decentralised and participatory management of vulnerable sectors, as well as critical designated protected areas, may need to be areas for promoting early adaptation. promoted. Initiatives for sustained land Carbon trading represents a significant management may need to be expanded. Trans- opportunity in terms of both technology boundary ecosystems and protected areas will transfer and mobilisation of funding for also be given attention. development. Institutional, legislative and regulatory aspects will be addressed. Environmental Information Management The programme will continue to enhance Programme the protection of the environment through proper management and safe 11.56 The ICT Current Situation Assessment disposal of waste, stakeholder report for MEWT identified the following participation to reduce pollution of the shortcomings: disintegrated information environment, public education and systems, lack of clear guidelines and awareness. It will also encompass architecture for presenting information, provision of weather and climate inadequate access by stakeholders, existence of information for informed decision stand alone systems, and existence of making and addressing climate change information in physical files which are not issues. easily accessible and prone to misplacement and loss. The programme seeks to enhance information management through the Natural Resources Management development of an overarching information Programme management strategy and system. Within this system, a range of subsystems will be integrated

11.55 This programme deals with the and strengthened. These include the Integrated planning and sustainable management of Pollution and Waste Management Information land, forest, rangelands, wildlife and fish System; the Environmental Information System; resources. Management of these the Management of Tourism Satellite Account; resources is critical to the agriculture and the Integrated Vegetation Information tourism sectors in particular. Public Management System; the Integrated Wildlife awareness is also key to engaging the Management System (Tshwaragano); an public in sustainable management of integrated Geographic Information System; and natural resources and prevention of the Integrated Meteorological System. environmental degradation. In the future, Programme development will entail the the impact of awareness initiatives will adoption of common methodologies, protocols be monitored and evaluated. This and standards, as well as the implementation of programme will put in place policies and 275 a web-enabled integrated information through the creation of a conducive working system that culminates in a single data environment for public agencies in the sector. warehouse. The provision of office and residential accommodation facilities and equipment, as Environmental Governance well as skills development, will improve Programme welfare, morale and performance of employees, resulting in improved service delivery and

11.57 Environmental governance customer satisfaction. relates to the way in which the country formulates and promulgates policies and Waste Management and Pollution Control laws and establishes institutions. These Programme should provide for the full participation of stakeholders (public, private sector 11.59 Increased waste is an outcome of and civil society) in environmental economic development and improved living decision making and implementation, standards. Waste management and pollution and the domestication of regional and control are essential contributions to both global international environmental agreements. and national obligations. Waste itself must be Environmental governance plays an minimised and, where it is inevitable, must be important role in achieving the sector properly managed. This programme ensures goal of sustainable management and protection of the environment through utilisation of natural resources. This education, awareness and enforcement. programme will address challenges Sensitisation to good practice, and the which require concerted efforts in the enforcement of key legislation, such as the development of skills, capacity and Waste Management Act of 1998 and the institutional arrangements. Both training Atmospheric Pollution Prevention Act of 1971, and skills development are important to must be strengthened. NGOs, the Department of support the implementation of strategies Waste Management and Pollution Control, the for successful environmental Police and district authorities will all play a role governance. In this regard, stakeholders in carrying out this programme. need to participate in providing Rural and Urban Sanitation (Solid Waste financial, institutional and technical Management) Programme support. There is also the need for stakeholders to integrate activities of 11.60 The programme strives to increase MEA action plans into their strategies. access to basic sanitation and services such as regular waste collection, and to come up with Support and Enhancement of Service initiatives geared towards community Delivery Programme participation in the protection of their environment through proper management of

11.58 For effective fulfilment of the waste. The programme focuses on procurement environment sector mandate of realising for local authorities of waste management and coordinating all issues pertaining to equipment and machinery (compactor trucks, environmental conservation and vacuum tankers, skip loaders and clinical waste protection, efficient service delivery vehicles), onsite sanitation facilities (skips and remains one of the core principles. The waste receptacles), and the implementation of programme is intended to improve waste management programmes in the districts. technical and administrative services to It also facilitates the construction of ventilated meet customer needs and expectations. It improved pit (VIPs) latrines and dumping sites. supports improved service delivery 276 Monument Development Programme monuments, namely: Moremi, Lepokole, Manyana, Matsieng, Majojo and Gcwihaba,

11.61 This programme deals with the Mamuno, Kasane, Domboshaba, Dimawe, development and management of Phikwe Ruins, Kolobeng/Livingstone, Old monuments and other heritage sites for Palapye, Baines and Chapman Baobab, public access and benefit. This will be Pelotshetlha, Mogonye, Nxazini, Baratani Hill achieved through the provision of public and Magagarape, have been earmarked for reception and presentation facilities development, as well as to improve their (access roads, site museums, site offices management. This programme will also ensure a and staff accommodation, seating areas deliberate and concerted effort to involve and ablutions) and their proper communities in the management of heritage maintenance at selected sites to ensure sites and monuments. customer satisfaction. Twenty 277 CHAPTER 12 A COMPASSIONATE, JUST AND CARING NATION KEY RESULT AREA (KRA) 8: ENHANCED WELLBEING AND SOCIAL RESPONSIBILITY Thematic Area Description

12.1 During NDP 10, the Government exposure to risks and enhancing their will endeavour to facilitate development of capacity to protect themselves against complete individuals psychologically, psycho-social and economic hazards and the spiritually, morally, socially and loss of income. During NDP 10, Botswana economically, irrespective of their ethnicity, will focus on strengthening the family unit religion, gender and origin. The aim is to as an institution of socialisation. build resilient individuals and communities who will drive their own development. The 12.4 Health: The state of one’s health is a objective of this thematic area is to identify function of an individual’s self worth and and develop strategies to tackle current the quality of health services available. All psychological and socio-economic issues macro and micro health systems will and challenges facing Batswana. therefore acknowledge this cardinal principle as a premise in dealing with

12.2 There are four fundamental areas individuals and communities in their various that would enable Botswana to attain health programmes. universal “social wellbeing for all” by year 12.5 Housing: Inadequacy of basic 2016. These are: Poverty Alleviation, shelter is one of the major problems faced including support systems and housing for by many Batswana today. Consequently, the poor members of the community; Access there are enormous challenges in the to Good Quality Health Facilities, Housing sector to develop initiatives to including primary and curative services address the problems associated with poor within reasonable travelling distance; Good living conditions. Quality Sanitation and an Adequate Supply of Safe Water; management of NDP 10 Goals HIV/AIDS to prevent and minimise the spread of new infections. To achieve social 12.6 Four NDP 10 Goals have been wellbeing, this sector will focus on social identified to achieve this KRA; protection, health and housing. The fourth • Goal 1: Eradication of Absolute Poverty area of Good Quality Sanitation and an • Goal 2: Adequate Social Protection adequate supply of safe water, is covered by • Goal 3: Affordable and Quality Health the Water sector in Chapter 10 and the Care Services Sustainable Environment sector in Chapter • Goal 4: Prevent New HIV Infections and 11. Mitigate Impact

12.3 Social Protection: Social protection 12.7 The Ministries of Local Government refers to a set of policies, programmes and and Lands and Housing are accountable for strategies designed to reduce poverty and the first two goals; the Ministry of Health is vulnerability by promoting employment accountable for the third and fourth goals. opportunities, diminishing people’s 278 Goal 1 Strategies NDP 10, Goal 1: Eradication of absolute poverty 12.10 The multi-sectoral poverty reduction strategy requires identifying the groups and Description and Background: areas which are vulnerable to poverty. This approach is expected to achieve better

12.8 Since Independence, Botswana has outcomes in terms of economic been implementing social protection and empowerment, sustainable livelihoods, empowerment programmes aimed at improved social functioning and access to reducing poverty. Some of these quality shelter. In order to deliver on the programmes are in agriculture [Arable ambitious targets, integrated approaches will Lands Development Programme (ALDEP), be strengthened and the investments made housing [Self Help Housing Agency focused on outcomes. Administration will be (SHHA); Destitutes Housing; and the strengthened through greater co-ordination Integrated Poverty Alleviation and Housing within Government at national and local Scheme] and social protection [destitute levels. This will include regular monitoring persons, orphans and vulnerable children, and evaluation of progress and consultation Old Age Pension (OAP), WWII Veterans with stakeholders on performance. Key Pension, Community Home-Based Care strategies include: (CHBC) and the Remote Area Development • Creation of sustainable jobs in the Programme (RADP)]. The multi-policy economy, particularly in rural areas approach adopted by Government involves where the incidence of poverty is contributions from several stakeholders, highest; including civil society and the private and • Development of human resources so that public sectors. This approach is becoming the poor are enabled to utilise the job progressively more coordinated and opportunities in their localities; and integrated at national, district and • Provision of social protection to community levels. vulnerable groups, training, counselling and other support services. PERFORMANCE DURING NDP 9

12.11 A number of other important targets

12.9 Despite the achievements made, 22 and actions have been developed by key percent of Botswana households were sectors dealing with poverty alleviation and estimated to have incomes below the are given in the appropriate sections of this poverty datum line in 2003 (see paragraphs Plan. 4.62 to 4.70 and Table 4.12 for more details on the poverty statistics). Central Statistics NDP 10, Goal 2: Adequate Social Office (CSO) estimates that the incidence of Protection poverty in rural areas is higher than that in urban areas. The incidence of poverty for Description and Background people living in remote settlements and in 12.12 Social protection is diversified and disadvantaged geographical regions is also consists of the following: family support, significantly higher than the national income, consumption, input and asset average. Among the other causes of poverty transfers to the poor, protecting the are low levels of education, which is vulnerable against livelihood risks and strongly linked to poor labour market enhancing their social status. Despite the opportunities and unemployment. significant achievements made in social protection, there are shortfalls in terms of 279 capacity and accessibility at the level of December 2003 to 48,839 by the end of July individual services, which mainly affect 2009. Ninety-eight percent of these children people living in remote settlements. Many of received welfare support in the form of a the social protection programmes are not monthly food basket from Government, means tested and, therefore, are channelled while the remaining two percent are to all, rather than to those in critical need. supported by their relatives and other Nevertheless, universal coverage has proved sources. Non-Governmental, Faith-Based to be an effective way of reaching the and Community-Based Organisations majority of the poor. (CBOs) also play a pivotal role in the care and support of orphans and vulnerable Performance during NDP 9 children.

12.15 When the Revised National Policy

12.13 During NDP 9, the performance of on Destitute Persons was introduced in April social protection systems was affected by 2002, there were 23,313 registered destitute the HIV/AIDS scourge, which resulted in an persons. The number has since increased to increase in the number of beneficiaries in 42,565 by the end of July 2009. Support was the different programmes. Chart 12.1 also provided to other groups, including the presents the trends in the distribution of elderly (Old Age Pensioners), World War II beneficiaries of social protection veterans, Community Home-Based Care programmes between 2003/04 and 2008/09. (CHBC) patients, needy children and Remote Area Dwellers (RADS).

12.14 The number of registered orphans increased from 41,592 at the end of Chart 12.1: Beneficiaries of Social Protection Programmes during NDP 9 120,000 100,000 80,000 60,000 40,000 Orpha ns De s titute s 20,000 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Source: Department of Social Services (2009), Annual Reports Compilation on Social Protection Programmes (2003-2009) 280 Goal Strategies vulnerable groups with no other means of support;

12.16 The country has a strong social • Social Cohesion Strategy that ensures the long-term prerequisites protection system in place and this has for socio-economic participation for helped reduce the impact of shocks on everyone and creates and leaves its population. As a result, risks such as open paths of mobility for the drought and disease epidemics have not individual; had devastating effects on the nation. • Employment Creation to enable Nevertheless, social protection schemes people struggling with disadvantages should be planned on the basis of a to participate in the labour market; • Child Protection to ensure the thorough assessment of needs across the healthy and productive development entire range and the costs of meeting of the child; them in the short, medium and long term • Community and Area-Based in a sustainable manner. The strategies Schemes to address vulnerability at included in the social protection sector in the community level. Botswana include: • Social Assistance and Welfare Service Strategies for the most 281 Goal Indicators, Baselines, Targets Table 12.1: Goal Indicators, Baselines, Targets Programme Key Performance Baseline NDP 10 Period Targets Outcome/Outpu Indicator Year Achieve- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr Yr t ment 6 7 Outcome 1: Poverty Rate (%) 2003 30 28 27 24 21 18 15 13 Improved social functioning Human Poverty 2005 31.4 28 25 22 19 16 15 13 Index Human 2005 .654 0.70 0.75 0.80 0.85 0.90 0.92 0.94 Development Index Output 1: % of vulnerable 2008/09 92 94 95 67 97 98 100 100 Comprehensive persons supported social protection Output 2: 1 No. of domestic Family Cohesion violence cases 2008/09 2121 1697 1358 1086 869 695 556 250 2. No. of abuse 64 51 41 20 12 7 7 80 cases Outcome 2: Enrolment rate on 2008/09 92 94 96 98 100 100 100 100 Economically social safety nets empowered (%) individuals and communities Output 1: % Rate of 2008/09 2 5 10 15 25 35 45 50 Rehabilitated graduation from and self reliant welfare people: programmes Outcome 3: % of households 2008/09 61 66 71 76 81 86 91 100 Access to quality with access to shelter quality basic shelter Output 1: Number of 2008/09 232 170 165 100 100 75 25 635 provision of destitute houses (2003 – total adequate constructed 2008) destitute housing Source: CSO report (2003) and United Nations Development Programme (UNDP) report on Human Development 2007/08 SECTOR: LOCAL GOVERNMENT INTRODUCTION

12.17 Local Government in Botswana and Village/Ward Development Committees refers to the system of governance below the (VDCs/WDCs). national level and covers all institutions and 12.18 At the national level, functions of arrangements under the authority of the these institutions are coordinated by the geographical area within which it is located. Ministry of Local Government, which It consists of Local Authorities (Councils), provides policy direction to local institutions Tribal Administration (TA), District on local governance, community Administration (DA), District/Urban development, social services, primary Development Committees (DDCs/UDCs) infrastructure provision, district development planning, coordination, policy 282 formulation and legislative reviews and as poverty reduction in line with the development. The Ministry mobilises National Strategy for Poverty Reduction resources and transfers them to the Local (2003), rural development in line with Authorities. the Revised National Policy for Rural

12.19 The mandate of Local Government is Development (2002), environment to provide basic social services to both rural protection and conservation, human and urban areas. The Ministry of Local resource development and integration of Government serves as the Central HIV/AIDS into Local Government’s Government’s arm for local government development strategy; matters and is the focal point for policy and • Community mobilisation in the rural operational matters at the local level. Its areas to promote participation in rural objective is to be a competitive, customer- development; focused centre of excellence in social • Local economic development by service delivery, development coordination, identifying and harnessing resources and community mobilisation and capacity opportunities to stimulate sustainable building. At the local level, there are 16 economic activities; Local Authorities (LAs). They are all under • Implementation of the National management of the Council Chief Executive Settlement Policy; and, Officer or Council Secretary\Town Clerk. • Provision of physical and social The District Administration office, whose infrastructure to improve the welfare of head is the District Commissioner, acts as the rural and urban population. the head of Central Government Departments at the local level. The Ministry Achievements of Local Government implements other Ministries’ policies and programmes 12.21 Labour Intensive and Drought through the District Commissioner. Another Programmes: During NDP 9, three drought area well represented in districts is Tribal years were declared in 03/04, 05/06, 06/07, Administration, whose primary role is to giving rise to a cumulative drought relief enforce local order and customary law. programme employment figure of 317,571 for 3,681 infrastructure projects. These projects consist of the construction of REVIEW OF NDP 9 Government staff houses, primary school facilities, customary courts and kgotla

12.20 The KRAs for NDP 9 had the shelters, health posts, de-silting and lining of following specific objectives: storm water drainage, which were completed • To introduce Public Sector Reforms throughout the country. spearheaded by the Performance Management System (PMS) and the 12.22 Community Resilience recommendations of the Second Local Programme: The Ministry of Local Government Structure Commission Government has piloted a Community (LGSC II); Resilience Programme, up to the • To decentralise and build capacity of the development of Community Action Plans, in Local Authorities to ensure that LAs and communities have effective control over Hukuntsi and Lehututu in the Kgalagadi their own affairs and could be held District, Chobokwane and Karakubis in accountable for their actions and Ghanzi District, Lerala and Maunatlala in operations; the Central District and Old Naledi in • To address national critical issues, such Gaborone. 283

12.23 Social Protection: Local support to patients, cash allowances to Government provides social services to beneficiaries of social safety net people living in poverty. This scheme programmes, including old age pensioners, includes provision of a food basket, care and World War II veterans and the destitute. Table 12.2: Detail of Social Protection Programmes and Beneficiaries, NDP 9 Social Area of NDP 9 Beneficiaries Comments protection coverage Targeted covered beneficiaries June 2009 Care and Registered 10,299 3,647 92% of the patients are provided with care and support to Patients support patients Social Safety Old Age 85,000 90,236 Old age pensioners received P220 per month Net Pensioners Programmes World War II 4,700 3,093 WWII veterans received P359 per month Veterans Destitutes 34,014 42,014 A supplementary cash of P81 per month in addition to food distribution. Beneficiaries exceed targets. Orphan Care Orphans and 47,725 47,604 NGOs, CBOs and private sector play a key role Programmes Vulnerable in supporting orphans Children Source: Department of Social Services – 2009 capacity building and training in skills such

12.24 Remote Area Development as entrepreneurship, welding, tannery, Programme (RADP): Remote Area sewing, bakery and carpentry. The RADP Dwellers (RADs) are assisted to participate supported the remote area dwellers with in income generating projects, such as livestock during NDP 9 as shown in Table 2 livestock rearing and ownership. They are below. The programme benefited 234 also provided with RADs. Table 12.3: Remote Area Development Programme (RADP) Livestock Distribution Programme 2003/04 2004/05 2005/06 2006/07 2007/08 2009/10 Beneficiaries RADP( Livestock) 297 439 250 179 116 136 Source: Department of Social Services - 2009 Challenges challenge for RADP is livestock bidders who do not fulfil their commitments. The

12.25 The following summarises the key Ministry of Local Government is facing the challenges confronted by the Ministry with problem of accumulation of arrears, mainly regards to provision of social protection. caused by the beneficiaries of social Though social safety nets were provided to protection. Beneficiaries miss collection of the beneficiaries, the creation of a their benefits. Cost of collection has been dependency syndrome in some programmes reported to be high, reducing value of the was observed, and RADP is still bedevilled benefit/package received. The challenges by issues of sustainability. Another faced in implementing the Labour-Intensive 284 Public Works Programme (LIPWP) and cohesion, employment creation, child drought programmes are primarily protection, and community- and area-based managerial, such as late delivery of building schemes. materials by suppliers, leading to delays in subsequent handing over of projects. The 12.28 Government pursues Social Labour Intensive Public Works Programme Assistance and Welfare Service Strategies progressed from simple to complex projects, for the most vulnerable groups with no other raising issues of management and quality means of adequate support. Social assistance control. The lack of adequate permanent initiatives have been designed primarily to staff for the LIPWP at the district level enhance social welfare by reducing poverty directly. These include provision of (i) hindered implementation. Every drought welfare and social services to highly year comes with its new crew of contracted, vulnerable sections of the population, such as well as seconded staff, who are engaged as the physically or mentally disabled, to serve for a period of one year. At the end orphans and substance abusers; (ii) cash or of the programme, experience gained during in-kind transfers, such as food coupons, implementation is lost as contracts come to livestock assistance and allowances to an end, the seconded staff reverts to their vulnerable groups, Old Age Pensioners, original duties, and new recruitment is World War II Veterans, destitute persons, undertaken the following year. orphans and Community Home-Based Care patients; provision of some of these services

12.26 Local Economic Development: will be outsourced to the private sector Little progress has been achieved. Only a providers to improve efficiency in their Local Economic Development framework management; (iii) safeguards focus on has been developed. A comprehensive possible short-term negative impacts of policy and implementation guidelines are policy reforms, for example where prices being prepared. Capacity in the form of rise, or there is a loss of entitlements to the human resources, guiding frameworks and poor, mitigation measures such as the enabling legislation is still limited. The LIPWP will be restructured to include on- provision of social support, without the-job life-skills training for LIPWP complementary programmes for recipients workers; and (iv) subsidies, such as the to graduate to a sustainable livelihood, is provision of shelter in times of crisis. likely to breed dependence on government support. Social safety nets should be 12.29 The Social Cohesion Strategy designed with sustainable means of survival involves ensuring the long-term and eventual graduation from government prerequisites are in place for socio-economic support where that is feasible. participation by everyone; and leaving open paths for mobility for each individual. In STRATEGIES FOR NDP 10 order to implement the social cohesion strategy, special attention will be given to

12.27 With a view towards the realisation the enforcement of the principle of equal of the Vision 2016 pillar of a opportunities and the requirement of equal Compassionate, Just and Caring Nation, the treatment. During NDP 10, targeted sector will focus on the strategies which measures will be implemented in order to contribute to the Key Result Area (KRA) of generally enforce gender equality. The Enhanced Wellbeing and Social activities will include information, education Responsibility. These strategies cover social and communication on family issues, such assistance, social welfare services, social 285 as parenting skills, foster care and abuse, and the adversities faced by the girl counselling. child, street children and children with disabilities. The current high levels of child

12.30 The Employment Creation sub- and adult dependency ratios indicate the sector during NDP 10 will involve measures need for a strategy to provide social aimed at creating sustainable jobs, both in protection for the young. These strategies the rural and urban areas. This will entail the may focus on issues such as school feeding implementation of the Local Economic programmes, school fee waivers, clothing, Development initiatives, as well as the street children initiatives, child rights Community Resilience Programme, advocacy/awareness programmes against all development of an information, education forms of abuse, youth programmes to avoid and communication strategy and social problems among teenagers, strengthening of local development criminality, sexually transmitted diseases, structures. The Local Economic such as HIV/AIDS, early pregnancies, Development programme aims to transform substance abuse, and early child cities, towns and rural areas into viable development to ensure the preventive health economic entities through identifying and and educational programmes. harnessing resources and opportunities needed for stimulation of sustainable 12.32 The Community- and Area-Based economic development. The sub-sector will Schemes address vulnerability at the finalise a national policy framework and an community level. The strategies are aimed at implementation strategy as well as district empowering communities with life skills level strategies for the promotion of Local that enable them to exploit resources within Economic Development. The Community their localities, in a sustainable manner. Resilience Programme emphasises These include the Community Resilience economic empowerment and the training of Programme cited above, as well as the communities in management of income Remote Area Development Programme generating projects. (RADP), which will continue to provide basic social services and promote

12.31 Child Protection strategies seek to sustainable economic livelihoods. RADP ensure the healthy and productive targets mainly the poorest of the remote area development of the child. As defined in the dwellers, and facilitates the graduation of United Nations Convention on the Rights of beneficiaries from the programme. The the Child, society, through good governance, initiative provides beneficiaries with basic must provide measures to ensure that the social services such as shelter and initial child is protected from all forms of abuse start-up resources, such as livestock assets. and exploitation, such as child labour, emotional, physical and psychological 286 SECTOR: HOUSING (SOCIAL) Description

12.33 Human beings have a right to basic creation and income generation with shelter needs that enable them to live a decent life. provision. The Botswana Building Society One of the major problems faced by many Mortgage Guarantee Scheme is available to people in the world today is inadequacy of all citizens to purchase or to develop basic shelter. This has placed enormous residential properties. For GEMVAS, challenges on the Housing sector to come up Government guarantees 25 percent of the with initiatives intended to address the value of the loans granted by Botswana problems associated with undignified living Building Society (BBS). Government also conditions of people lacking basic quality extends housing loans to its employees shelter. The Millennium Development Goals through the GEMVAS. Through this and Vision 2016 have both placed major scheme, Government employees can emphasis on reduction of poverty and purchase or develop their residential plots. provision of basic quality shelter. The loans granted under this scheme are guaranteed by Government up to 80 percent.

12.34 Provision of shelter in Botswana is guided by the National Policy on Housing of REVIEW OF NDP 9 2000. The thrust of the Policy is to facilitate home provision in partnership with Government has continued to be the sole stakeholders; channel more Government provider for development funding for resources to low and middle lower income housing through District Housing, Destitute housing; promote housing as an instrument Housing (through Councils), the Self Help for economic empowerment and poverty Housing Agency (SHHA), the Integrated alleviation; and to foster a partnership with Poverty Alleviation and Housing Scheme the Private Sector and all major employers and Government Employees Motor Vehicle in home development. and Residential Property Advance Scheme (GEMVAS). The Housing Policy Advisory

12.35 Various financial schemes are Council was inaugurated in 2005 to provide available for this particular purpose, guidance and drive the implementation of including the Self Help Housing Agency the Housing Policy. However, the Council (SHHA) scheme, the Integrated Poverty remained dormant because of lack of clarity Alleviation and Housing Scheme, the of roles and responsibilities between Botswana Building Society Mortgage authorities. The Housing Policy Advisory Guarantee Scheme and the Government Council’s responsibilities were seen to be Employee Motor Vehicle and Residential duplicating those of already existing housing Property Advance Scheme (GEMVAS). authorities; and the Council has failed to Under the SHHA scheme, households are identify a niche role in the sector. This given plots and loans fro building materials problem will be addressed through the for constructing their own homes. After the policy and legislative review process pilot project’s success during NDP 8, the envisaged during NDP 10. Integrated Poverty Alleviation and Housing Scheme projects were rolled out to Kanye, 12.36 Government availed a budget of Maun and Tshabong. These projects P150 million for SHHA, to be utilised by at integrate skills acquisition, employment least 7500 beneficiaries during NDP 9 at a 287 maximum loan of P20,000 per beneficiary. beneficiaries were trained in basic material The allocated budget for this programme production, construction and business skills. was exceeded because of the high demand Out of this number, 184 beneficiaries are for the facility. A total of P158 million was currently engaged in production. disbursed for 8,266 beneficiaries, of which Beneficiaries are getting an allowance of P31 million assisted 1621 beneficiaries in P418 to P2, 532.60 per month that puts them urban areas and P127 million assisted 6,645 above the SHHA minimum qualifying beneficiaries in rural areas during NDP 9. income of P366.66 per month. Ten beneficiaries have completed their houses

12.37 The SHHA programme was through the SHHA programme. Other reviewed in 2006/07. The purpose of the beneficiaries have left the programme for review was to determine whether the gainful employment elsewhere. A total of 94 programme was meeting its objectives of houses, including those financed through providing efficient and equitable housing for SHHA, have been completed since low income households. One of the findings inception, and 12 are still under of the review was the inadequacy of the construction. maximum loan amount of P20, 000 to complete a basic quality unit. In an effort to address the problem of occupation of 12.39 The implementation of the incomplete and unsightly structures, Government’s housing programme has faced Government initiated the Turnkey Project in the following challenges: 2002. The project is a Design-Build housing • High cost of construction, which has development method through which the escalated at a rate of about 30 percent Government seeks to speed housing per annum over the years; projects’ delivery, reduce costs, and • Weak institutional mechanisms to introduce technological innovations in the monitor and evaluate the impact of the housing sector. The Pilot Turnkey project in programmes and projects, especially in Francistown managed to deliver only 29 light of the dual responsibilities between houses. These houses, together with the the Ministries of Lands and Housing and incomplete structures, were allocated by the Local Government; City Council to the SHHA loan applicants • No legislative framework to engage the on the waiting list. private sector, NGOs, CBOs, in participation;

12.38 Construction of production • Government’s over-reliance on BHC for infrastructure for the Integrated Poverty delivery of housing; and Alleviation and Housing Scheme has been • An inadequate supply of housing units in completed in the Kgatleng and North East the market. Districts. Trial production will soon commence in Selebi-Phikwe. 456 288 Sector Goals, Indicators, Baselines and Targets Matrix 12.1: Housing Sector Performance Matrix Sub-Sector Goal Key Baseline: NDP 10 Period Targets Performance Year Achieve- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Indicator ment % of households with 2008/0 61 70 75 80 85 90 95 100 basic shelter 9 STRATEGIES FOR NDP 10

12.40 The sector will employ the following Use of Indigenous Building Materials strategies in delivering the Housing Programme. 12.43 The Housing Sector will ensure adequate research is carried out on available Legislative and Policy Review indigenous building materials with a view to encourage their use. Efforts will be made to

12.41 Government will continue to foster ensure that, where possible, locally available the creation of a conducive policy materials will be improved through implementation environment to address treatment to ensure durability, fire and issues of affordability, delivery and weather resistance. The existence of coverage of different social groups targeted appropriate building technology and raw by the programme. This will involve the materials, such as laterite, clay, fly ash and development of administrative, institutional lime which are available in the country, and legislative frameworks to harmonise provide an opportunity for sustainable different pieces of legislation that impact on production of local building materials. housing delivery. The process will include creating synergies with other stakeholders, Consolidation of Public Sector Housing such as financiers, developers and Delivery construction companies.

12.44 Housing delivery is currently spread Use of Innovative Building Technologies among many authorities and organisations, including the public sector, parastatals, civil

12.42 In an effort to fast track housing society and private sector organisations. The delivery and reduce construction costs, Ministry of Lands and Housing is innovative methods of construction will be responsible for policy formulation and the researched, adapted to the local environment sourcing of funding for low income housing, and implemented. Innovative technologies while the Ministry of Local Government is refer to the use of non-conventional building responsible for implementation of SHHA methods and Destitute Housing through Councils. which make construction of houses faster Parastatal and private sector companies also and cheaper to the end users. Private sector provide institutional and private houses to companies will be encouraged to their employees, as well as for sale. There is continuously explore better methods of no proper coordination mechanism among housing delivery and make contributions as all these various organisations and there is part of their social responsibility. no over-arching policy framework for 289 developing standards for the types of houses acquisition of homes by people residing in to be provided in various parts of the high density areas. country. Goal 3: Affordable and Quality Health

12.45 It is, therefore, intended to put in Care Services place proper mechanisms for coordinating housing delivery in the country. This will be Introduction through defining an authority for the formulation of housing policy, which is 12.48 The Government of Botswana divorced from implementation. Similarly, assumed responsibility for the provision of Government will consider setting up a single health care services at Independence in housing authority which will be responsible 1966. Health care provision at Independence for implementation of all public sector was essentially hospital based with a very housing programmes, whilst the private rudimentary primary health care system. sector will continue to deliver houses in There were only 5 government hospitals and accordance with the standards set by the 5 mission hospitals. policy authority.

12.46 In the short to medium term, the Goal 3 Performance during NDP 9 Botswana Housing Corporation will continue to commercialise its operations in 12.49 In an endeavour to provide preparation for its eventual privatisation, as accessible and affordable health care, health has been espoused by Government in the service provision in Botswana is currently at Privatisation Policy. Prior to the Corporation a nominal fee and more than 84 percent of becoming a private entity, it will concentrate the population is within a 5 kilometre radius mainly on the delivery of upper low income from the nearest health facility. to middle income category housing. The Botswana Housing Corporation will, 12.50 During NDP 9, significant strides however, assist in the delivery of low were made in the prevention and control of income and district housing on an agency communicable diseases, such as TB, basis as and when it is required to do so. Malaria, and HIV, and childhood diseases, such as Polio, Tetanus and Measles. Despite Home Ownership these efforts, there have been major challenges in the health care system, such as

12.47 Government will create opportunities a growing disease burden, especially of non- for the promotion of home ownership. This communicable diseases, and human resource will include inducing the private sector to capacity constraints. participate in the delivery of housing through incentive packages, such as 12.51 It is evident that the health care concessionary tax rates to housing system has not been successful in financiers. In order to consolidate home empowering individuals to take major ownership, mechanisms will be put in place responsibility for their health. During NDP to protect homeowners from the loss of the 10, the involvement and participation of principal home to financiers. There will also individuals and communities will be be a review of relevant legislation to allow strengthened with a view to create a self- for application of sectional title scheme to driven health care system. tribal land. This is intended to facilitate 290 NDP 10 Goal 3: Indicators, Baselines and 12.53 The goal will be achieved in Targets collaboration with the private sector, international cooperating partners and civil

12.52 The focus of NDP 10 is to continue society. The data necessary for addressing to provide affordable and quality health the goal, outcomes, outputs and other care, through the prevention of relevant indicators will be collected through communicable and non-communicable routine health service reporting, diseases, reduction in new HIV/AIDS surveillance, special surveys and the infection and the promotion of healthy population census. lifestyles. It is envisaged that there will be an improvement in indicators such as morbidity, mortality and life expectancy. Matrix 12.2: Goal 3: Indicators, Baselines and Targets NDP 10 Key Performance Baseline NDP 10 Period Targets Goal Indicator Year Achieve Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr Year 7 -ment (2009/10 6 NDP 10 ) Target Affordable Infant Mortality 2006 51 46 41 36 31 26 21 16 and Rate (per 1,000 Quality live births) Health Under Five 2006 76 69 62 55 48 41 34 27 Care Mortality (per Services 1,000) Maternal Mortality 2007 193 172 151 138 109 88 69 46 Rate (per 100,000) Morbidity Rate 2006 511 500 490 476 453 436 416 400 (TB Notification Rate) Elimination of 2007 10 10 9 8 5 3 2 <1 Malaria (per 1000 pop.) Life expectancy 2006 54 years 65 years Source : Botswana Demographic Survey - 2006, Stats Briefs 2005-2007, CSO,Botswana National TB programme-2006 and Botswana Malaria Programme-2007 NDP 10, Goal 3 Strategies much they value themselves as

12.54 NDP 10 strategies will include individuals. Therefore, efforts will be the promotion of social dialogue to made during NDP 10 to encourage create awareness for self determination individuals improve their perceptions on social wellness and aligning health regarding their self-worth. programmes to individual, family and community needs. The ability for 12.55 Evidence-based programming in individuals to take greater responsibility disease prevention, treatment and care for their own health depends on how will be implemented. Health systems 291 strengthening in areas of research and development, information management,

12.56 Policies and legislation will be infrastructure enhancement and human reviewed to promote efficiency and capital development will be intensified. sustainability of the health care systems. Innovative approaches to the provision A conducive environment will be and financing of health, through private created to strengthen strategic sector involvement and participation in partnerships in the enhancement of the diversifying the contribution of the nation’s wellbeing and social health sector to the economy, will be responsibility. aggressively pursued. SECTOR: HEALTH INTRODUCTION

12.57 Health care delivery in Botswana is number of malaria cases from 72,000 in anchored on the Primary Health Care 2000 to below 20,000 during 2007 was Strategy, as articulated in the Alma-Ata reported. Since the advent of the HIV Declaration of 1978, the Vision 2016 Pillars pandemic, TB morbidity and mortality and associated Millennium Development increased as a result of the HIV/TB co- Goals (MDGs). Throughout the different infection. The TB notification rate was 594 National Development Plans (NDPs) there per 100 000 populations in 2003. But has been continuous investment in health through different measures, such as the care infrastructure and services, based on the Isoniazid Preventative Therapy and the Strategy. Botswana has successfully created benefits of widespread Anti-Retroviral a solid foundation of health care provision. Therapy (ART) to contain the escalation in To optimise health care provision, the health TB disease, the rate has been reduced to 579 sector has over the years collaborated with cases per 100 000 population in 2007. various sectors and partners in different capacities to ensure a multi-sectoral 12.59 Regarding childhood vaccine approach. Health service delivery in preventable diseases, the immunisation Botswana is provided through a hierarchy of coverage was 94 percent in 2008. Six cases primary, secondary and tertiary care levels. of measles were recorded in 2005; but transmission of these cases was successfully REVIEW OF NDP 9 interrupted. Botswana has not reported any indigenous cases of poliomyelitis since Goal: Reduce Morbidity and Mortality 1989. There was one imported case of wild due to Communicable and Non- polio virus in 2004. Botswana has met polio- Communicable Diseases and Conditions free certification criteria since 2004. According to the 2006 Botswana

12.58 Progress was made in preventing and Demographic Survey, the infant mortality controlling communicable diseases such as rate was 51 per 1000 in 2006, a slight Tuberculosis (TB), Malaria, HIV and reduction from the 56 per 1000 recorded in childhood diseases like Polio, Tetanus and 2000. Measles during NDP 9. A decline in the 292

12.60 The World Health Organisation some of which will spill over into NDP 10. (WHO) Stepwise Survey for Major Non- These include: Rapid HIV Testing Policy, Communicable Diseases Risk Factors was Radiography Standard Operating conducted during NDP 9. The results of this Procedures, National Blood Transfusion Survey will provide data for evidence-based Policy and its guidelines, Traditional Health prevention and control interventions during Practice Bill, Control of Smoking Act, NDP 10. The Botswana National Cancer Public Health Bill, Regulations on Registry was also established in 2003 to Marketing of Foods for Infants and Young determine the disease burden attributable to Children, National Mental Health Policy, cancer. To this end, the Ministry of Health Private Practice and Licensing Regulations, will step up cancer screening and related Revision of the National Health Policy and programmes during NDP 10. the Human Health Research Bill.

12.61 In 2007, the National Disability 12.65 In order to improve quality, Strategy was developed concurrently with availability and timeliness of information, the development of disability legislation. initiatives for effective communication and The 1996 National Policy on Care for information flow through the use of People with Disabilities will be amended Information and Communications and followed by enactment of the Technology (ICT) were undertaken. These legislation. include the Integrated Patient Management System at four sites (Princess Marina,

12.62 The health system has been Nyangabgwe Referral, Sekgoma Memorial strengthened during NDP 9 resulting in and Maun General hospitals); the improved health service delivery. This has Warehouse Management System at Central been realised through upgrading and Medical Stores (CMS) to manage the establishing of health facilities resulting in procurement and distribution of drugs 84 percent of the population accessing supply; and Telemedicine between facilities within five kilometre radius and Nyangabgwe hospital and India, and tele- 2.4 beds per 1000 population. Human radiology between Ghanzi Primary and resource development has resulted in an Princess Marina Hospitals which will improvement in the ratios of doctors and facilitate online services to low level nurses to population from 1:4 070 and 1:411 facilities. In addition, the new International in 2003, to 1:3 813 and 1:318, in 2007, Classification of Disease 10 (ICD10) was respectively. Furthermore, health care in adopted. Botswana continues to be provided almost free of charge to citizens. 12.66 The NDP 9 period witnessed an increase in the number of health research

12.63 The involvement and participation of studies undertaken in this country, some of the private sector and civil society has which were complex HIV/AIDS studies. resulted in improved health service delivery. Compared to previous Plans, some of these In addition, increased resource mobilisation studies had citizens as either principal or co- from development partners and donors has principal investigators. To regulate the contributed to improved health care conduct of research in this country, the financing. Ministry of Health initiated the drafting of the Human Health Research Bill. The Bill,

12.64 The Ministry of Health embarked on amongst other issues, calls for the the development of several policies, establishment of a national statutory body regulations and legislation during NDP 9, responsible for overseeing the ethical and 293 scientific conduct of health research in the 12.71 The availability of medicines and country. medical supplies posed a great challenge during NDP 9. One of the factors

12.67 Since 2003, a total training output of compounding the problem is the weak 2,319 pre-service and 1,037 in-service regulatory system. As a consequence, a huge personnel from the local and external health backlog of applications for registration of training institutions has been achieved, medicines has accumulated. against a target of 1997 for pre-service and 1380 for in-service trainees. The Ministry of 12.72 The Health Sector continues to Health continued to receive support on experience a shortage of an appropriately training from collaborating partners. qualified health work force, resulting in a high staff/patient workload. This is

12.68 In order to facilitate the attainment of attributed to unattractive working conditions the MDG of combating the HIV/AIDS and an inadequate supply of health pandemic in the country, a review and professionals, both locally and update of curricula for seven health training internationally. The coordination, programmes has been carried out in the implementation and monitoring of health health training institutions. programmes at primary health care level has also been a challenge during NDP 9, largely Challenges due to inadequate capacity.

12.69 During NDP 9, a number of 12.73 The absence of a formal health challenges impacted negatively on the research regulatory framework and research efficient delivery of health care services. agenda made it difficult to ensure that health These included a growing disease burden, research conducted in Botswana is in line especially in non-communicable diseases, with the needs and priorities of the country. and human resource constraints. In addition, lack of an effective health information management system has Goal: Reduce Morbidity and Mortality impacted negatively on the monitoring and due to Communicable and Non- evaluation of health programmes and Communicable Diseases and Conditions projects, resulting in poor planning, management and decision making.

12.70 The high rate of TB patients co- infected with HIV (60-86 percent of all TB 12.74 The increasing demand for health cases), increasing numbers of Multi-Drug- care services, coupled with complex disease Resistant Tuberculosis patients and the management, has over-stretched the existing identification of Extensively Drug Resistant health care delivery system. This resulted in Tuberculosis in the country pose a long waiting times and congestion in health substantial threat to public health. In facilities, as well as costly external referrals. addition, for malaria control, Insecticide The continued dependence on government Treated Nets/Long Lasting Insecticidal funding for health care has also proved to be Treated Nets coverage is 9.4 percent (MIS a problem. 2007), while that of Indoor Residual Spraying is 72 percent (MIS 2007), both of which are below the WHO set targets of achieving coverage of 80 percent. 294 Goal: Reduce Infant and Maternal to improve access to health care services Mortality and reduce morbidity and mortality. The strategy will be realised through

12.75 The main challenges for NDP 9 have strengthening the provision of primary, been persistent high infant and under-five secondary, tertiary, and quaternary levels morbidity and mortality rates due to diseases of care. Specialist services will be such as HIV/AIDS, TB, malaria, diarrhoea introduced at all district and selected and vaccine preventable diseases (see primary hospitals. Strategic facilities Table 1.2 and Chart 2.6). The 2006 management and outsourcing of non- Botswana Demographic Health Survey core services will be pursued in order to showed the infant mortality rate and under- ensure optimal utilisation and care of the five mortality rate at 51 and 76 per 1000 live expanded infrastructure. births, respectively. • Improvement of operational efficiency through the implementation of

12.76 The maternal mortality rate has also innovative result oriented performance remained high during the Plan period due to initiatives, such as Performance complications of pregnancy and inadequate Management Systems, in order to maternal health care services. improve productivity in the public health Documentation and reporting has also been system. a challenge. Due to this, there is incomplete • Improvement of health information reporting of national maternal mortality. management by installing ICT infrastructure to enhance service STRATEGIES FOR NDP 10 delivery. Monitoring and evaluation frameworks will be developed so as to

12.77 During NDP 10 the utilisation of strengthen continuous monitoring of the existing health infrastructure and national impact of health programmes and human resources will be optimised by projects and further guide new promoting partnerships with the private interventions. sector. The development of human resources • Building and management of strategic will be accelerated to meet the service partnerships in order to improve health challenges and enhance their productivity. care delivery. This entails strengthening Programme coordination and of existing and creating new partnerships implementation at primary health care level to expand the resource base. During will be strengthened in order to reverse the NDP 10, the Ministry will lease out losses in quality of service and for space in public hospitals to private achievement of the Vision 2016 health care practitioners, identify and establish more targets. partnerships with private sector to strengthen access to advanced

12.78 Alternative health financing specialised health care services in order strategies will also be developed and to derive maximal, timely and efficient implemented in order to reduce government quality of care for patients, as well as expenditure on health, thus promoting an reduce costs for services referred outside affordable and sustainable quality health the country. care service. • Promoting healthy lifestyles through multiple approaches, such as public

12.79 Key strategies will include: education to prevent communicable and • Provision of comprehensive customer non-communicable diseases. Promoting focused quality health services in order environmental health in order to prevent 295 diseases due to environmental factors implementation of the National Road (such as water, air and food-borne Map to the Reduction of Maternal and diseases) and occupational factors Newborn Morbidity and Mortality. (wellness programme, occupational • Standardisation of service delivery by diseases, health and safety management). ensuring that health facilities are Basic • Prevention and control of diseases Emergency Obstetric Care and through establishment of port health Comprehensive Emergency Obstetric services at selected ports of entry. Care compliant and aligned to WHO • Improving rehabilitation services guidelines. through the development of relevant • The Accelerated Child Survival and policies and legislation, as well as Development strategy, which is aimed at improvement to infrastructure and reducing child mortality by 63 percent, development of human resources to will be implemented. Elements of this increase access to services. The Ministry strategy include strengthening of Health will ensure that persons with immunisation services, nutrition disabilities attain and sustain their interventions and the Integrated optimal level of independence and Management of Childhood Illness and functioning. This will cover services supplementary feeding programmes. such as physical, mental and vocational • Strengthening activities to reduce the rehabilitation, as well as provision of burden of TB through intensified TB assistive devices which provide and/or case finding, treatment and information restore function, or compensate for such management, as well as strengthening a loss, or absence that causes disability. the mechanisms for coordination and • Promoting mental health in order to collaboration of TB activities through prevent mental health problems, mental the existing national TB /HIV Advisory disorders and substance abuse. The Committee. Ministry of Health will enhance • Strengthening activities to reduce the governance, regulation, programming, burden of TB in HIV infected persons by surveillance of the magnitude of mental screening for TB at all HIV service illness, development of practice points, such as the ART sites, PMTCT, standards for community mental health Tebelopele Centres and paediatric and monitoring and evaluation of mental centres and wards. health and substance abuse prevention. • Ensuring an effective quality assured • Scaling-up of malaria control drug supply and management system to interventions in order to achieve the prevent drug stock outs and expiry. elimination of malaria. These interventions will include mass distribution of free Long Lasting Goal 4: Prevent New HIV Infections and Insecticidal Nets in all Malaria districts, Mitigate Impact intensifying Indoor Residual Spraying campaigns, advocacy and Goal Description and Background communication messages. In addition, there will be provision of effective 12.80 Botswana has been engaged in a chemo-prophylaxis to the populations at protracted struggle against HIV and AIDS risk and anti-malarial treatment to all since the first AIDS patient was diagnosed malaria patients. in 1985. Shortly after that, Government • Improvement of maternal and newborn responded and set up the National AIDS care shall be enhanced through the Control Programme with subsequent 296 development of short, medium and several developmental problem in Botswana, with long term plans outlining the country’s 17.6 percent of the total population being programme framework in prevention of infected in 2008. Furthermore, 33.7 percent HIV, treatment, care and support of those of pregnant women aged 15-49 years were infected and affected. The Government took infected in 2007 (see paragraph 12.89). additional measures to address the epidemic by developing the National HIV Policy in 12.84 During NDP 9, HIV prevalence 1993, which was reviewed during NDP 9. among all age groups continued to be high HIV was further declared a national due to continuing practices of unsafe emergency as a way of mobilising the multiple sexual partner behaviour. To date, government, non-governmental prevention efforts have not adequately organisations and the private sector to addressed the underlying determinants of collaborate and rise to the challenge posed vulnerability to infection or the specific by HIV and AIDS. drivers of the epidemic. Prevention interventions are largely small scale and

12.81 The multi-sector national response, without strategic and structural thrust. as articulated in the National Strategic Furthermore, the legal environment for the Framework (2003-2009), is in conformity response to HIV and AIDS is weak and has with the UNAIDS principle of the "Three therefore contributed to stigma and Ones". This highlights the importance of discrimination. countries to have one agreed AIDS action framework that provides the basis for 12.85 The potential of the private sector coordinating the work of all partners; one has not been fully exploited to address national AIDS coordinating body with a implementation capacity issues. The broad-based multi-sector mandate (National capacity of communities, NGOs and People AIDS Council); and one agreed country- Living with HIV/AIDS (PLWHA) support level monitoring and evaluation system, as groups is weak and cannot therefore support currently in place in Botswana. In addition, and complement the provision of the response is in line with the Vision 2016 comprehensive and effective services. Weak goal of reduction of new HIV infections. coordination structures and capacity at Performance during NDP 9 national, district and community levels contribute further to inadequate guidance

12.82 Government of Botswana, alongside and response. other governments, has endorsed major continental and global initiatives. Consistent Goals, Indicators, Baseline and Targets with the National Strategic Framework, these historic initiatives also focus on key 12.86 The Health Sector goal will be intervention areas and issues in the fight achieved in collaboration with the private against HIV and AIDS, such as leadership, sector, international cooperating partners prevention, care, treatment and support for and civil society. The data needed to people living with and affected by HIV and adequately address the goal, outcomes, AIDS and mitigating the impact of the outputs and other relevant indicators will be pandemic. collected through routine health service reporting, surveillance, special surveys and

12.83 Despite all these efforts, HIV the population census. continues to be a major public health and 297 Matrix 12.3: Health Sector Goals, Indicators, Baseline and Targets NDP 10 Key Performance Baseline NDP 10 Period Targets Goal Indicator Year Achieve- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 ment (2009/10) Prevent new Reduction of 2008 8.0% 7% 6% 5% 4% 3% 2% 1% HIV HIV/AIDS among infections 15-24 years and mitigate 2004 Not the impact of New HIV 0% available HIV/AIDS infections 5-year survival of 2007 86% 86.5% 87% 87.5% 88% 89% 89.5% 90% patients on Highly Active Anti- Retroviral Therapy (HAART) 2007 BL: 92% 92 93 94 95 97 98 100 Percentage of % CHB patients receiving care and support Source : National Strategic Framework on HIV/AIDS 2003-2009

12.87 Although zero new infections are Goal Strategies for NDP 10 still targeted, this will only be possible if a preventive vaccine and curative 12.88 A multi-sectoral response for prevention therapy were to be developed during of new HIV infections; and treatment, care and NDP 10. However, given the present support to those infected and affected in order to available best practice interventions and reduce the impact of HIV will be employed in Botswana’s well recognised national NDP 10. However, priority will be on HIV response, it is possible to reduce the prevention in order to address sustainable “new” infection rate significantly. solutions to control the epidemic. SECTOR: HEALTH – HIV/AIDS REVIEW OF NDP 9 declining from 12.6 percent in 2004 to 8

12.89 The prevention and control of the percent in 2008. The declining HIV epidemic, as well as mitigating its impact prevalence trends have also been observed through the multi-sectoral response, was the among the younger age group of pregnant major focus during NDP 9. The success of women aged 15-19, with the prevalence rate the national response to HIV and AIDS for that group declining from 28.6 percent in pandemic was evidenced by the stabilisation 1998 to 17.2 percent in 2007. This reduction of HIV prevalence, albeit at high rates, in in new infections has also been supported the general population in 2008 at 17.6 through incidence studies done in pregnant percent compared to 17.1 percent in 2004. women aged 15-49 years using BED The reduction of HIV infection was laboratory methodology. The stabilisation in observed in the younger age groups, with the prevalence observed among those 15-49 prevalence rate of those 15-24 years years (i.e., the adult prevalence rate), which 298 went from 25.3 percent in 2004 to 25.0 Ulcer Disease cases by 50 percent from 16 percent in 2008, and similarly in pregnant 766 in 2004 to 8 541 in 2007. women aged 15-49 years, which went from 33.5 percent in 2005 to 33.7 percent in 2007, 12.92 Treatment, care and support of those is partly due to the balance between infected are crucial in mitigating the impact reduction in the rate of new infections and of HIV, since those infected are of increased survival of AIDS patients on anti- reproductive age and productive members of retrovirals (ARVs). It is important to note the society. Since the beginning of NDP 9, that these rates remain unacceptably high, as more than 93 percent of patients estimated shown by prevalence of HIV in the general to be in need of HAART (based on the population in all the districts being above 10 McKinsey Estimate of 2001) are on anti- percent in 2008. retroviral therapy nation-wide.

12.90 The Prevention of Mother to Child 12.93 Since the introduction of the Transmission (PMTCT) of HIV Programme Community Home-Based Care Programme increased in coverage. In 2007, 89 percent (CHBC) in 1995, more than 300 of HIV positive pregnant women took CBOs/NGOs have been registered. As a prophylaxis to reduce transmission to the result of the successful implementation of unborn child compared to 37 percent in the ART and CHBC programmes, the 2003, resulting in an estimated reduction in number of patients on CHBC has declined mother to child transmission rate to 4 from about 12 000 in 2002 to 3 666 in 2009. percent in 2008. Routine HIV Testing was introduced in 2004 to increase access to HIV Challenges testing. Comparatively, the number of people tested through the Tebelopele 12.94 A large proportion of Batswana still Voluntary Counselling and Testing (VCT) do not know their HIV status, leading to centres rose from 73 551 in 2004 to 642 824 missed opportunities for behaviour change. in 2008, while those who tested in health Inadequate ownership and responsibility by facilities through routine HIV testing rose Batswana for their own health and well- from 60 846 in 2004 to 626 441 in 2008. being, limited knowledge on aspects of the The Know Your Status Campaign pandemic, such as transmission of the spearheaded by the Voluntary Counselling disease, the vital necessity of adherence to and Testing strategy offered by non- treatment and the importance of consistent governmental organisations has also use of condoms and reducing multiple contributed significantly to the above concurrent relationships, have challenged achievements, resulting in the proportion of this programme. population that has ever tested increasing from 25.4 percent in 2004 to 56.4 percent in 12.95 Other challenges are related to 2008. limited access to HAART by all eligible patients, male involvement and

12.91 There has been a significant decrease participation, cultural practices and beliefs, in HIV prevalence in donated blood and increase in prevalence of Viral STIs, blood products from 9 percent in 2001 to 2.1 specifically Herpes Simplex Virus 2, limited percent in 2007. There has also been a health services for youth and children, and significant reduction of STI prevalence, as inadequate counselling services. Low indicated by the reduction of syphilis capacity for implementation remains a prevalence from 4 percent in 2002 to 2.5 constraint and must be addressed during percent in 2007 and the reduction in Genital NDP 10. 299 STRATEGIES FOR NDP 10

12.96 Botswana has, over time, developed will be upgraded to provide ARVs as an effective public health system. The part of the ARV roll out plan. Technical advent of HIV/AIDS has increased the efficiency, such as resistance and burden on and demand for health care adherence issues of the programme, will services. Management of supplies, facilities be addressed. In addition, an AIDS maintenance and service delivery were research and expertise centre will be compromised as resources and attention built to capitalise on Botswana’s were diverted to the immediate pressing expertise and experience in HIV/AIDS needs arising from the impact of HIV/AIDS. management. • Addressing efficiencies of care and

12.97 The key strategies for NDP 10 support to HIV/AIDS programmes, such include: as CHBC and orphan care, by reviewing • Ensure sustainability of the HIV and them (including supply chain AIDS response by prioritising its management), and instituting good prevention through behaviour change project monitoring mechanisms, and communication strategies and other strengthened psychosocial support and HIV prevention strategies, including the impact mitigation services. introduction of new ones, such as safe • Integrating existing systems to develop a male circumcision strategies. All comprehensive surveillance, research, segments of the population will be monitoring and evaluation framework targeted. The national prevention and the upgrade and effective use of ICT programme in all 27 health districts will to improve programme implementation, be scaled up. This entails implementing including patient monitoring. New a minimum package with the following technologies for HIV disease components: behaviour change monitoring, such as new infections, interventions and communication, resistance, patient tracking systems and prevention of sexual transmission, HIV vaccine research, will be developed. counselling and testing, PMTCT, • A scaled-up capacity building prevention of blood-borne transmission, programme to strengthen national voluntary male circumcision, workplace response systems and structures, with programmes and community provision of financial support to mobilisation. facilitate outsourcing, public private • Elimination of Paediatric AIDS partnerships and civil society (reducing MTCT rates below 1 percent) participation. through provision of HAART to all pregnant HIV positive women and continued strengthening of the PMTCT SUMMARY OF PROGRAMME programme, including early infant HIV diagnosis. 12.98 The Programme will focus on • Increased survival of HIV infected providing high impact targeted responses to persons through strengthening of the vulnerable segments of the population, such ARV treatment, including early as infants, orphans, youth, women, people screening and initiation of treatment at a living with disabilities and/or HIV/AIDS, so higher CD4 count and increased patient as to ensure universal access to services. The adherence and monitoring. All clinics main focus will primarily be on, amongst 300 others, activities such as scaling-up testing beneficiaries at community level. In and counselling services, scaling up safe addition, survival of patients on treatment male circumcision and intensified targeted will be enhanced through wide availability Behaviour Change and Communication of free ARVs, expansion of treatment to Intervention, whereby all sectors have to use clinics, outsourcing of ARV services and their comparative advantage to target strengthening palliative care. 301 SECTION VI: GOVERNANCE AND SECURITY 302 CHAPTER 13 SAFE, SECURE AND PEACEFUL NATION Vision 2016 Pillar National Development Goal 1: Public

13.1 This chapter addresses the Vision Safety and Protection 2016 pillar of a Safe and Secure Nation. The pillar identifies three security issues that are 13.3 This goal encompasses a number of to be addressed during NDP 10. These are components which collectively influence the public security, territorial integrity and country’s Public Safety and Protection. national defence. Botswana recognises the These include crime, road safety, disasters, serious consequences associated with nuclear radiation, occupational health and breaches of safety and security and safety, offender rehabilitation, border appreciates that it can not be the control, civil and national registration, responsibility of the law enforcement immigration, waste and pollution control agencies only, but rather of the nation as a and information. whole. Safety and security in the context of this Plan touches on issues of road safety, 13.4 Public safety and a sense of security defence, safety and security from nuclear are necessary foundations for the well being and other radioactive material, disaster and economic prosperity of the citizenry. In management, waste and pollution particular, crime must be seen as a violation management, foreign relations, occupational of basic human rights and the motivation to health and safety, civil and national commit it should be reduced through registration and information security. All programmes such as poverty alleviation, these issues are dealt with under two broad creating employment opportunities and goals, Public Safety and Protection, and creation of recreational facilities for the Territorial Integrity and Sovereignty. youth. All forms of crime should be minimised, and penalties should be made

13.2 The desired outcomes of this result high enough to deter these. Public education, area include effective law and order, information and a culture of social substantial reduction of crime, especially responsibility should be strengthened to violent and intrusive crime, improved road reduce human loss, injury, ill-health, transport safety, reduced incidence of environmental degradation and damage to pollution, enhanced security of the country, property, including road accidents. and improved workplace health and safety Botswana has remained relatively well conditions. prepared for all types of disasters as an integral part of ensuring national safety, security and prosperity. This has resulted in continued peace and stability. 303 SECTOR: CRIME REDUCTION INTRODUCTION

13.5 Peace, safety and security are deaths and serious injuries on the roads, and essential elements to ensure the continued introduce air support in the Botswana Police prosperity of the country and its citizens as Service. articulated in Vision 2016. Serious and violent crimes are a source of concern, with 13.9 During the Plan period, there was an a high concentration in urban and peri-urban increase in the number of cases of armed areas. robbery, burglary, home invasions, incidents of vandalism of public infrastructure, theft

13.6 The crime situation in Botswana has of motor vehicles, stock theft and passion remained a source of serious concern even motivated killings. This situation has though there has been a downward trend in reduced public confidence in law the crime rate from 12.59 crimes per 1000 enforcement agencies and the public population in 2003 to 10.80 crimes per 1000 protective services. population in 2007. The fear of crime that has developed is evidenced by the levels of 13.10 The crime scenario is attributed security features that Batswana have added mainly to: to their homes and businesses. Capacity to • Inadequate police visibility; detain offenders was inadequate, leading to • Porous borders and inadequate screening prison overcrowding, incidents of prisoner at entry/exit ports; escapes and high levels of re-offending. This • Inadequate crime intelligence capacity; situation has contributed to increased fear of • Involvement of illegal immigrants in crime in the country. crime; • Growing social problems REVIEW OF NDP 9 • Lack of adequate preventive mechanisms;

13.7 The level of crime reported to the • Slow disposal of cases through the Police continued to be high during NDP 9. justice system which brings about re- In absolute terms, there was a gradual offending; annual increase. However, as noted above, • A high unemployment rate among the crimes per 1,000 population decreased. This youth; and statistic is based on the number of violent • Inadequate security at home and and intrusive crimes consisting of break-ins commercial premises. and robberies.

13.11 The following strategic initiatives

13.8 During NDP 9, the Botswana Police were implemented during NDP 9 to reduce Service planned to achieve the following violent and intrusive crimes by 5 percent per Public Safety and Security strategic annum: objectives: reduce crime and make communities safer, eliminate physical • Strategic road blocks; violations of individuals, improve • Intelligence-led and focused patrols; communication through extensive use of • Use of specialised investigation teams; information technology and an increased transport support, reduce the number of 304 • Improved collaboration with strategic • Robust communication strategy for partners locally, regionally and effective information dissemination in internationally; order to influence behaviour change, as • Rigorous public education on crime well as enhance public reassurance prevention; and programmes; • intensive clean-up operations targeting • Human capital development to enhance illegal immigrants, scrap metal dealers, accountability levels by taking advantage butcheries, etc. of assessment and development centres to inform the human resource STRATEGIES FOR NDP 10 development agenda; • Take advantage of the labour market to

13.12 It is becoming increasingly apparent staff the support to disciplined forces that the interrogation of underlying with civilian workers in line with the economic circumstances under which people civilianisation programmes; find themselves must be addressed if • Community mobilisation in the rural intervention is to have a significant impact. areas to promote support for crime The following are strategies to be employed prevention initiatives; during NDP 10: • Building strategic partnerships in order • Strengthening of law enforcement to create a platform for beneficial agencies to deal effectively with crime, consultation and cooperation through a rigorous proactive strategy endeavours. using intelligence-led decision-making; • Taking advantage of advances in technology to improve the effectiveness of service delivery procedures; Sector Performance Matrix Matrix 13.1: Goal, KPIs, Baselines and Targets Sector Key Baseline NDP 10 Period Targets Goal Performance Base- Indicators Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 line Crime Rate(a) 2007 10.80 10.26 9.75 9.26 8.80 8.36 7.94 7.54 Reduce Customer Crime Satisfaction 2005/06 13 22 31 40 48 57 66 75 (%) Note: (a) crimes per 1000 population 305 SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS increased capacity to detect crime are

13.13 Crime Reduction Programme: The essential prerequisites. National stability and Crime Reduction programme is intended to improved quality of life for citizens and mitigate the fear and incidence of crime residents will be the eventual benefit. The through education, community participation following activities have been identified to and law enforcement. A reduction in crime drive the programme: strengthen crime will benefit Batswana, the tourism industry intelligence capability, provide improved and the business community by providing an controls along the border, conduct regular environment conducive for investment. The checks for illegal immigrants in major outcomes associated with this collaboration with other stakeholders, programme are the creation of conditions mobilisation of support for crime prevention necessary for communities to be safer, and initiatives by all stakeholders and increased public confidence in the law establishment of specialised dedicated enforcement institutions. Improvement of teams. access to law enforcement services and SECTOR: TRANSPORT SAFETY INTRODUCTION the National Transport and Communications

13.14 Road transport is the most common Division. The programme is three-pronged. form of transport in Botswana. Vision 2016 It focuses on road safety education (handled identifies road safety as one of the priority by the Department of Road Transport and areas in the quest to build a safe and secure Safety), road safety engineering (handled by nation. It identifies effective enforcement of the Roads Department) and road safety law traffic law, road safety education, better enforcement (handled by the Botswana training and licensing of drivers and Traffic Police). Road accidents result in loss elimination of drunken driving as priority of productivity, increased insurance areas for policy intervention. Road safety premiums, social costs, damage to property requires increased police enforcement, and increased mortality. Although the cost through identification and treatment of of road accidents has not yet been calculated hazardous spots, improved road design and due to lack of readily available data, the vehicle maintenance, and improved safety number of fatalities and injuries paint a education, driver training and publicity. gloomy picture. It is on the basis of the Botswana has a bad driving culture relatively high number of fatalities that this characterised by irresponsible use of road safety programme was instituted. vehicles and disregard for driving codes. 13.16 The road traffic accident statistics in Road accidents are personal tragedies for Botswana reveal that most accidents are those involved, while injuries and death of attributable to human factors (behaviour). In productive citizens have a heavy economic fact, it is generally believed that more than cost. 90 percent of road accidents worldwide are attributable to human error; and this statistic

13.15 A road safety programme was put in is also believed to be applicable to place in Botswana in 1989 as an off-shoot of Botswana. It is also believed that only 306 around 2.7 percent of accidents are The absolute figures are of great concern, attributable to the vehicle malfunction, while even though the ratio of accidents to the around 6.3 percent is attributable to road number of vehicles on the road fell over this conditions. period from 9.0 percent to 6.2 percent. It is also positive that there has been gradual REVIEW OF NDP 9 decline in the numbers of road traffic accident deaths. As shown at Table 13.1 and

13.17 The number of vehicles in Botswana Chart 13.1, the number of deaths per has increased from 204,228 in 2003 to 100,000 people went down from 32.1 to 328,770 in 2008. Over the same period, 24.2 between 2003 and 2008. accidents increased from 18,329 to 20,415. Table 13.1: Number of Accidents and Fatalities 2003-2008 2003 2004 2005 2006 2007 2008 Number of Accidents 18,329 18,136 17,522 17,035 19,487 20,415 Number of Fatalities 557 532 450 429 497 455 Number of Vehicles 204,228 225,182 246,681 267,117 293,755 328,770 Population 1,734,190 1,761,937 1,790,128 1,818,770 1,847,870 1,877,436 Accidents/Vehicles 0.090 0.081 0.071 0.064 0.066 0.062 Fatalities/10,000 Vehicles 27.27 23.63 18.24 16.06 16.92 13.84 Fatalities/100,000 Population 32.1 30.2 25.1 23.6 26.9 24.2 Source: Annual Accidents Reports 2003 – 2008 Chart 13.1: Fatalities per 100,000 Population 2003-2008 34 32 Fatalities per 100,000 Population 30 28 26 24 22 20 2003 2004 2005 2006 2007 2008 Source: Annual Accidents Reports 2003 – 2008

13.18 A problem for traffic law laws is not a ‘real’ crime. There seems to be an enforcement officers and those studying impression of invulnerability, making it difficult Traffic Safety is the perception, held by to dissuade drivers from dangerous driving. The motorists that the violation of traffic underlying premise is that road safety could be 307 attained through a change of road user 13.20 Addressing road safety requires a multi- attitudes and behaviour. This should sectoral approach; hence, the strategies listed include educating road users to below: recognise the risks associated with the • Strengthening the legal framework through consequences of road accidents, revision of legislation: especially their effect on other people. • Strengthening the policy framework by formulating a road traffic safety

13.19 The review of the Road Traffic management policy; Act was not completed during NDP 9. • Promoting private sector participation in This stalled progress on the detection of road violations through implementation of the traffic partnerships and collaborative arrangements; management systems. The review was • Establishing partnerships with stakeholders, also expected to raise fines for offending such as law enforcement institutions, the motorists in order to enhance the Motor Vehicle Accident Fund, the education deterrence effect of road traffic law. The sector, the health sector and local, regional new law was envisaged to assist in and international organisations; dealing with bad driving attitude, which • Improvement of the quality of road safety are particularly rampant among the education for all levels of the population, youth. Nevertheless, the sector engaged including learner drivers and vulnerable the public in education programmes and road users such as pedestrians, children and road traffic law enforcement initiatives. young drivers; To this end, it is increasingly becoming • Strengthening of law enforcement evident that road safety is a complex mechanisms to address issues such as endeavour requiring a multi-sectoral drunken driving and violation of speed approach. limits; and • Improvement of road engineering and road STRATEGIES FOR NDP 10 maintenance. Sector Performance Matrix Matrix 13.2: Goal, KPIs, Baselines and Targets Sub- Sub-Sector Goal Baseline NDP 10 Period Targets sector Key Year Year Year Year Year Year Year Goal Performance Baseli Indicator Year ne 1 2 3 4 5 6 7 To Accident rate improve (accidents per 2008 62.1 59.0 56.0 53.2 50.6 48.0 45.6 43.4 safety on 1,000 registered the roads vehicles) Fatality rate (deaths per 2008 24.2 21.6 20.4 19.2 18.1 16.9 15.7 14.6 100,000 population) Source: Department of Road Transport and Safety Road Traffic Accident Report (2006), Botswana Police Annual Report of the Commissioner of Police, (2008), Gaborone, Public Relations Unit 308 . SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS Areas management programme has one outcome

13.21 Road Traffic Safety and and five main outputs. The outcome is safer Management: This programme seeks to roads, while the outputs are: behaviour make travelling on Botswana roads safer for change, roadworthy vehicles, level of all road users. This will be achieved through awareness, quality of interventions and thorough public education, effective law quality road environment. enforcement and well engineered and maintained roads. The road safety SECTOR: CIVIL AND NATIONAL REGISTRATION, IMMIGRATION AND CITIZENSHIP CONTROL INTRODUCTION incidence of forgery related to travel

13.22 This sub-sector is responsible for the documents issued in Botswana. It is, registration of births, deaths, marriages, therefore, important to introduce new travel societies, trade unions and employers’ documents with improved security features federations, the facilitation of the movement to ensure compliance with the Regional and of persons across boundaries, and the issue International standards, i.e., the Southern of citizenship and residence permits, African Development Community (SADC) passports, visas and visitors permits. The and International Civil Aviation relevant legislation includes the Immigration Organisation (ICAO) standards. Act, Citizenship Act and the National Registration Act of 1986. There were incidents of fraudulent acquisition of REVIEW OF NDP 9 passports, residence permits, visas and citizenship certificates. In order to address 13.24 During NDP 9, preparations this problem, a computerisation programme commenced on the computerisation of was initiated to improve the security features critical functions, such as visas, residence of these documents. The target turn around permits, passports and citizenship and the time for producing these documents was creation of databases for illegal immigrants, realised due to the re-engineering of to improve service delivery and security of processes that was undertaken. There is an documentation. The project will be increase in the fraudulent and illegal issue of completed during NDP 10. In recent years, registration documents relating to births, Botswana has been experiencing an increase deaths, marriages, societies, national identity in the number of foreign nationals who and change of name. This has reduced the come as visitors, investors, tourists and credibility of Botswana's official documents. employees. Problems arising include the Improved security and integrity of these need to reduce delays at the border posts and documents is therefore essential. district offices, and to ensure that only genuine travellers are allowed into the

13.23 On issues of immigration and country. citizenship control, there is increasing 309

13.25 In an effort to improve service • Service Delivery Improvement: Turn- delivery, some business processes were re- around-time in service delivery will be engineered. This reduced the average turn- improved through Business Process Re- around-time for the issue of work and engineering, new and standardised residence permits from 42 to 15 days, and guidelines and requirements for the the issue of passports from 14 to 5 days. The processing of visa, work and residence improvements on work and residence permits and citizenship will be permits were assisted by the establishment developed. This will make it easier for of a second Regional Immigrants Selection investors to acquire the needed skilled Board in Gaborone. manpower, including those investing in the various hubs set up to spearhead

13.26 During NDP 9, the National development projects; Identification System and the Births and • Make Use of State of the Art Deaths Registration System were Technology to improve effectiveness computerised, interfaced and networked to and efficiency of service delivery the outer stations. This resulted in improved procedures consistent with Government storage and retrieval of archived information business process reengineering for processing of national identity cards and programmes; registration of births and deaths. This • Anti-Corruption Measures will improved the delivery of services to address perceived corrupt practices in customers and the availability of statistics the sector, including installation of for planning and development purposes. CCTV cameras, improved internal intelligence and inspectorate capacity;

13.27 The review of the Change of Name, • Computerisation of All Critical Societies and National Registration Acts is Functions: the issue of visas, residence ongoing. The Marriage Act is at draft Bill permit, citizenship, and repatriation of stage. The National Identity System review foreign nationals, border control and process was started during the same period passports will be computerised. The to establish the feasibility of automating the computerisation will improve data entire registration process and decentralising management, integrity of documents, the production of the national identity card enhance efficiency in service delivery to district offices. and improve security of documents by minimising forgery and fraudulent means of acquiring them; STRATEGIES FOR NDP 10 • Development of a Strategy for the Management of Illegal Immigrants;

13.28 Below are strategies for NDP 10: • Enhancement of Security Features in • Development of Migration and All Registration Documents to Passport Policies: The policies will effectively and efficiently deal with guide the review and amendment of fraud and corruption through a rigorous existing legislation to address current proactive strategy to facilitate and emerging challenges; intelligence-led decision-making; • Decentralisation of Provision of • Skills Training and Development to Services: New border posts and district enhance accountability levels by taking offices in different parts of the country advantage of assessment and will be opened during NDP 10; new development centres to inform the Regional Immigrants Selection Boards human resource development agenda; will be established; 310 • Implementation of the National NGO Policy to enhance cooperation and collaboration; • Development of a Master Plan for Registration of Civil Societies, including a review of the Societies Act. Sector Performance Matrix Matrix 13.3: Goals, KPIs, Baselines and Targets Sector Goal Sub-Sector Baseline NDP 10 Period Targets Goal Key Achieve Yr Yr Yr Yr Yr Yr Performance Year Yr 1 -ment 2 3 4 5 6 7 Indicator To reduce Fraud Rate No fraud and (Fraud per 2007 Official 10.0 8.0 7.5 6.0 4.5 3.0 2.0 corruption 1,000 statistics applications) Customer 2005 22 45 50 55 60 65 70 75 Satisfaction (%) /6 SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS

13.29 Immigration and Citizenship Organisation (ICAO). The programme Control: This programme is aimed at includes computerisation of the system to improving security features of all travel and improve service delivery and public safety registration documents issued in Botswana. and security through the issue of secure and This initiative stems from the current safe travel documents. The new system situation of increasing incidents of should enhance the screening of people at document forgery. The programme will the borders and those who want to reside in entail the introduction of new travel the country. Although a reengineering documents with improved security features programme achieved some improvements, to ensure compliance with regional and further reform is required. The beneficiaries international standards, i.e., those of the of the programme are Batswana, tourists, Southern African Development Community travellers and investors. (SADC) and International Civil Aviation SECTOR: PRISONS AND REHABILITATION INTRODUCTION

13.30 The Botswana Prison Services is serving prison sentences. The Government will responsible for the safe custody, care, employ strategies that are individual prisoner- training and rehabilitation of people centred and will promote behavioural change 311 and impart skills to enhance offender address the problem of overcrowding in reintegration into the community. prisons; Population pressure in prisons made it • Intensifying use of high security equipment; necessary to build new prisons, improve • Expand and improve/modify existing existing structures and explore prisons and build new ones in an effort to alternatives to prison sentences as a way reduce incidents of escape and also reduce of reducing overcrowding. the problems of overcrowding in prisons; • Introduction of a rapid response team and REVIEW OF NDP 9 intelligence services to enhance security; • Strengthen partnership with the community,

13.31 During NDP 9, there was volunteers and other stakeholders in order to immense pressure to deal with the provide coordinated supervision of prisoners problem of overcrowding in our prisons. for successful reintegration into society; Cell accommodation was increased by • Introduction of Offender Case Management 5.5 percent. There was increase in to determine prisoners’ needs. This will help enrolment, training and testing of the sector to accord each prisoner the right prisoners in programmes offered to therapy geared towards correcting his offenders in prisons. Despite the efforts offending behaviour; undertaken, the number of repeat • Development of strategic linkages with offenders grew during NDP 9. relevant academic and vocational institutions for training and testing of STRATEGIES FOR NDP 10 inmates; • Improvement of efficiency through

13.32 Achievement of an efficient computerisation of sub-sector systems; Prison Service is a process that will • Improved training and development of staff. extend beyond NDP 9. However, the strategy that will be employed during NDP 10 will place emphasis on the achievement of Vision 2016. The following sector strategies will be employed: • Infrastructure development, upgrading and maintenance to Sector Performance Matrix Matrix 13.4: Goal, KPIs, Baselines and Targets Sector Goal Baseline NDP 10 Period Targets Sub-Sector Goal Key Base- Yr Yr Yr Yr Yr Yr Performance Indicator Year Yr 1 line 2 3 4 5 6 7 To improve prison safety Percentage of Escapes 2007 7.5 7.0 6.0 4.5 3.5 2.5 1.5 1.0 and % re-offending within rehabilitation the first three years of 2007 10.2 10.0 9.5 8.5 7.0 6.0 5.5 5.0 release 312 SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS economic, social, educational and vocational

13.33 Improved Prison Security: The aim skills to operate effectively in the society. of this programme is to protect the public The ultimate goal is to reduce recidivism from offenders who constitute a threat to and successfully re-integrate offenders into their safety, provide safety to inmates and to society as law abiding citizens, capable of ensure that those incarcerated remain in leading productive lives after imprisonment. prisons until they are lawfully released. Rehabilitation of offenders requires that Based on prison incidents, such as escapes, prisoners incarcerated must be reformed and assaults and affray, the safety of inmates and empowered to enable them to lead law the society are compromised; hence, the abiding lives, while at the same time need to improve prison security. The desired achieving the responsibility of protecting the outcome is improved safety in communities. society. Activities will include: The building programme will improve the strengthening of community correction quality of life of prisoners for the increasing systems, introduction of prison case prison population. management, restructuring of the Department of Prisons and Rehabilitation

13.34 Offender Rehabilitation: To reduce Services to separate security and re-offending/recidivism, needs-oriented rehabilitation functions, and collaboration correctional treatment programmes will be with stakeholders in both security and adopted, balancing the causal factors with rehabilitation functions. the unique profile of the individual offender. This should develop the offender's SECTOR : PUBLIC SAFETY (NUCLEAR TECHNOLOGY) INTRODUCTION standards and the Waste Management Act.

13.35 The phenomenon of radiation safety Regulatory control in the safe use of nuclear has caught up with Botswana. Incidents of technology to ensure radiation protection, illegal dumping and unsafe use of safety and security through the Radiation radioactive materials has occurred. This Protection Act, 2006 and Radiation prompted a regulatory framework to ensure Protection Regulations by enforcement, that the nation is protected against the inspections and authorisations, are essential unsafe use of nuclear technology. Similarly, to curb illicit and malicious acts involving the Waste Management Act of 1998, the nuclear material. Atmospheric Pollution Prevention Act of 1971, and the adoption of the Basel REVIEW OF NDP 9 Convention on trans-boundary movement of hazardous waste, are in place. It is necessary 13.36 The legislative framework and to ensure compliance with international regulatory infrastructure for the peaceful use agreements and national policy relating to of nuclear technology and ionizing radiation nuclear security and ionizing radiation safety (Radiation Protection Act 2006, safety, occupational health, health and safety Radiation Protection Regulations 2008, 313 Department of Radiation Protection and effects of radiation exposure. Effective state Radiation Protection Board) are in place and systems for accounting and control can functional. facilitate implementation of the IAEA safeguards and deter terrorist activities and

13.37 During NDP 9, Botswana signed the provide for their early detection. Training of Nuclear Non-Proliferation Treaty Additional law enforcement agencies in identification Protocols and Safeguards Agreement and of nuclear devices will increase security and the Revised Supplementary Agreement with curb divergence of nuclear material to illicit the International Atomic Energy Agency activities, hence contributing to a safe and (IAEA) to prevent the production of nuclear secure nation. weapons of mass destruction. Botswana is also party to the Revised Supplementary 13.39 The desired results of the nuclear Agreement with the IAEA, which ensures technology strategy are peaceful use of that all technical expertise, research material nuclear technology and atomic energy. The and specialised equipment donated by the promotion of nuclear technology to advance IAEA is used specifically for the benefit of peace and sustainable development, the nation and not individual or private technology promotion through technical entities. cooperation, verification of peaceful uses and safety and security aspects are essential STRATEGIES FOR NDP 10 and interrelated. This comprehensive approach addresses: prevention (first line of

13.38 The nuclear regulatory role of defence); detection (second line of defence) Government addresses nuclear safety, and response (third line of defence). The radiological protection of workers and the strategies developed in line with this population, environmental protection, export approach will facilitate execution of the controls, and accounting for, and physical following: protection of nuclear material and/or • Development of adequate border radioactive sources, to ensure that it is not controls on the import and export of stolen by individuals or malevolent groups. nuclear material; In order to protect society and the • Promotion of nuclear safety and security environment from intentional diversion of in users of nuclear technology; use of nuclear sources for illicit intentions, • Provision of personnel and appropriate measures need to be in place to environmental radiation monitoring ensure that the sources are safely managed services. and securely protected to minimise adverse 314 Sector Performance Matrix Matrix 13.5: Goal, KPIs, Baselines and Targets Baseline NDP 10 Period Targets Key Performance Base- Sector Goal Indicator Year line Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 To ensure Accession of safe use of international nuclear agreements- technology conventions with and atomic IAEA 2008 2 3 - 4 - 5 - 5 energy Radiological emergency preparedness and response plans by facilities in place 2008 3 4 5 6 7 8 9 10 Enhanced nuclear security See See at ports of entry 2008 0 3 6 8 note See note note 8+ Monitoring of occupationally exposed workers and the environment 2008 119 125 135 150 175 200 250 300+ Note: This applies mainly to major gazetted ports of entry, including international airports. The number will increase as more entry points are gazetted. SUMMARY OF PROGRAMMES AND PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS inadequate trained staff; and, lack of

13.40 Enhancement of Nuclear Safety national response plans or measures. The and Security: This programme will major outcome associated with this facilitate compliance with international programme is the enhancement of nuclear agreements and national legislative safety and security, with the aim of instruments relating to nuclear security and providing protection from adverse effects of ionizing radiation safety. It will also address radiation exposure. Compliance with the gaps in the existing the legislative international nuclear treaties and agreements framework and regulatory infrastructure for and legislative instruments will result in the peaceful use of nuclear technology and increased accountability of nuclear sources ionizing radiation safety: inadequate security by users and ability to detect illicit of nuclear material and other radioactive trafficking thereof. materials; insufficient technical capability; 315 SECTOR: DISASTERS INTRODUCTION

13.41 Although Botswana has never been management at the national level; and "ravaged" by natural disasters, and has been implementation is done at sector and district able to cope with recurring drought, it is level. There are inter-sectoral disaster prone to a number of disasters, of which the management committees at policy and most important is drought. Others include technical level. At policy level, there is the floods, fires and outbreaks of diseases. Poor National Committee on Disaster people tend to suffer disproportionately Management. At the technical level, there is from disasters. New problems include the National Disaster Management Severe Acute Respiratory Syndrome Technical Committee. At the district level, (SARS) and Avian Flu. The country has put there is the District Disaster Management in place an institutional and policy Committee. These Committees facilitate framework to deal with the impacts of these. strong linkages with other stakeholders, inter alia, all government departments, non- REVIEW OF NDP 9 governmental organisations and the private sector. A number of complementary

13.42 During the Plan period, the programmes are underway or planned to Government addressed disaster risk commence in NDP 10. Multi-sectoral reduction through prevention, mitigation and collaboration calls for integration of disaster preparedness. Botswana was one of the 168 risk reduction (prevention and mitigation), countries that adopted the Hyogo response management and disaster recovery Framework for Action (2005-2015). The into sectoral development planning Framework called on governments to build processes. The National Disaster the resilience of communities through Management Office engaged a consultancy ensuring that disaster risk reduction is a to carry out an assessment to find areas that national and local priority with a strong are vulnerable to disasters in order to inform institutional basis for implementation. decisions on reducing disaster impacts. Government must deveop the capacity for identifying, assessing and monitoring 13.44 In addition to drought, disasters that disaster risks and enhancing early warning; were highly prevalent were veld-fires and using knowledge, innovation and education floods. Most floods that occurred were to build a culture of safety and resilience at localised. These disasters did not overwhelm all levels. This requires measures for the national and local institutions. Other reducing underlying disaster risks and emerging potential disasters included SARS strengthening disaster preparedness for and avian flu. Projects to improve the effective response at all levels. management of disasters included completion of the Statement of User

13.43 During NDP 9, disaster management Requirements (SOUR). This defined the initiatives remained high on Government’s constituents of the system and will agenda because of the recurrence of natural computerise disaster management operations disasters. The institutional framework was and improve the response to disaster. strengthened during NDP 9 at the national Notable progress during NDP 9 on disaster and district level to mitigate the impact of management was made in terms of raising disasters. The National Disaster the nation’s preparedness levels through the Management Office coordinates disaster hazard identification, risk and vulnerability 316 assessment study and the development of a 13.46 The goal is to improve the planning, National Disaster Management System. implementation and coordination of disaster management. There is need to reduce risks,

13.45 These successes notwithstanding, the rather than only responding to disasters following are the challenges experienced when they occur, by embracing a more during the period under review: proactive approach in the planning for, and • There is no Disaster Management Plan management of, disasters. The strategy to to guide the operations of the National address the aforementioned challenges Disaster Management Office; involves implementation of the Hygo • The National Disaster Relief Fund Framework of Actions. This aims to ensure Order, which assists with life sustaining that sectors integrate disaster risk reduction needs during disaster, is centrally into development planning by making administered at the National Disaster disaster risk reduction a priority, improving Management Office. Some emergencies risk information and early warning, building need to be attended to quickly to save a culture of safety and resilience, reducing lives; hence, the need to decentralise the risks in key sectors and strengthening some money from the Relief Order Vote preparedness for response. This will be to the Districts; achieved by addressing the following: • There is need to increase capacity in • Formulation and implementation of a terms of manpower to help set up national disaster management plan; District Disaster Management • Development of disaster management Committees in places where they are not legislation; in existence and resuscitate those that are • Strengthening disaster management dormant; platforms; • There is general lack of understanding of • Review of the National Disaster Relief disaster management among sectors and Fund Order; communities. This is attributable to • Strengthening the National Disaster minimal public awareness campaigns; Management Office (human resource • A number of stakeholders have not capacity); and integrated disaster management in their • Strengthening public education and development planning processes. awareness through campaigns. STRATEGIES FOR NDP 10 SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS sector programmes and planning, thereby

13.47 Disaster Management Framework: promoting the nation's preparedness for This programme is based on a three pronged disasters. The major outcomes associated approach that entails the essential with this programme are the reduction of dimensions of risk reduction, business impacts of disasters, response and recovery continuity and recovery. The programme is in the event a disaster occurs. Activities in line with the Disaster Management Plan include: which espouses integration of disaster • The integration of National Sector management into development planning. Specific Disaster Risk Mitigation Plans The programme is designed to ensure that into national development initiatives; disaster risk reduction is integrated into 317 • Development of a National Multi- peace with itself and its neighbours. Since Hazard Early Warning System; Independence, Botswana has provided • Development of the monitoring and security for its citizens. The country has a evaluation mechanism for the national good standing in the international policy on disaster management; community, resulting from the country’s • Facilitating the development of sector participation in causes of common good, specific contingency plans; such as election observance in the region, • Development of an emergency and participation in United Nations and operations centre; African Union peace support initiatives. • Implementing a national disaster During NDP 9, the country increased its management information system; and international presence by opening missions • Developing a national disaster recovery abroad, establishing diplomatic relations on plan. a non-residential basis with more African, European, Latin America and Caribbean National Development Goal 2: Territorial countries. However, there has never been a Integrity and Sovereignty deliberate effort to review the national security strategy, even though the concept of

13.48 This goal is about the creation of a security has evolved over the years. sense of national identity and common destiny. Botswana’s territorial integrity and sovereignty have been enhanced by being at SECTOR: NATIONAL DEFENCE INTRODUCTION

13.49 The Botswana Defence Force (BDF) vehicles and infrastructure, especially was established by an act of Parliament of accommodation for serving “members”. A 1977 and “charged with the defence of marked performance improvement was, Botswana and with such other duties as may however, noticeable in areas of human from time to time be determined by the resource development, anti-poaching, crime President”. The BDF has, since inception, prevention and multinational military performed its mandate both locally and exercises. There was only modest internationally, earning national and improvement in physical infrastructure and international trust. The Defence Force has equipment modernisation. also been increasingly tasked with duties in aid to civil authority, contributing towards a peaceful environment for economic STRATEGIES FOR NDP 10 investment and national stability.

13.51 The goal is to provide a strategically REVIEW OF NDP 9 responsive and decisive force for the protection of the country. Botswana’s

13.50 The BDF entered NDP 9 with large stability should not reduce the readiness and deficiencies in all types of equipment, efficiency of the BDF, since the transition 318 from peace to conflict takes a very short coordination in order to transform key period of time. The BDF entered NDP 9 management processes; with large deficiencies in all types of • To opt for turnkey projects; defence assets. These deficiencies remain • To outsource project implementation and and hinder the operational readiness of the management to augment capacity; Force. During NDP 9, it was intended that • To engage in Public Private Partnership the BDF should acquire a level of capability, programmes; equipment modernisation, mobility and • To recruit and retain professionals in force readiness capable of promptly order to facilitate the implementation of responding to a wide range of internal and projects; external challenges. • To ensure proper storage and disposal of defence material for the conservation of

13.52 Since the inception of the BDF, the environment; infrastructure development has lagged, • To continue efforts to educate the creating unattractive conditions of service military community about health for both uniformed and non-uniformed matters, impact of HIV and AIDS and personnel. The lack of accommodation other diseases; results in military personnel being • To promote planning guided by proper accommodated on privately owned research and development; infrastructure, thereby compromising • To lobby for devolution of military security and operational readiness. procurement from the current PPADB procedures; and

13.53 Strategies planned for NDP 10 are: • To ensure strategic disposition in order • Establishing a Strategy Management to assure timely and decisive response. Office to provide central guidance and SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS construction rate of this infrastructure.

13.54 Acquisition of Defence Assets: This Infrastructural development will improve programme is motivated by the capability provision of office and residential gap resulting from technological accommodation, to bring about improved advancements, high maintenance costs and conditions of service and commitment to the aging equipment. The acquisition of Defence Force. An attractive working transport assets and defence equipment will environment in the BDF is likely to attract result in improved operational capability and retain high quality human resources. which assures military security. The The performance indicators for this output performance indicators for success of the are retention rates (service length) and programme are improved mobilisation time percentage of professionals inducted. and customer satisfaction level. Motivated defence personnel will exhibit diligence, discipline and demonstrated

13.55 Infrastructure Development: The devotion to serving the country. The existing office accommodation and training national outcome is assured military security facilities have either been overtaken by which will be measured by customer Defence Force growth or are structurally satisfaction levels. defective. During NDP 10, implementation of new strategies is intended to improve the 319 SECTOR: INTERNATIONAL RELATIONS INTRODUCTION countries on a residential and non-residential

13.56 This sector goal is about managing basis, ratifying all international instruments relations with the international community. that Botswana is party to, and improving the It entails the promotion and protection of follow-up mechanism for their Botswana’s interests abroad, with a view to implementation. It is in the country’s contributing to national development and interest to broaden its scope to offer it making Botswana an effective and a competitive advantage in the face of respected player in international affairs. It changing political landscape, globalisation, also involves the implementation of and increasing complexity of international international agreements to which Botswana issues. The success of the programme will is a party. International agreements form the offer Ministries and departments leverage to basis for international cooperation on issues engage in bilateral and multilateral of global interest. cooperation agreements, which will result in technical assistance, exchange programmes, REVIEW OF NDP 9 information sharing, development assistance, grants, as well as trade and

13.57 During NDP 9, the country increased investment opportunities. The general public its presence by establishing diplomatic stands to benefit from people-to-people relations on a non-residential basis with 15 interaction. African countries, 8 European countries, 4 Latin American countries and 6 Caribbean 13.60 The strategies to be pursued during countries. This has further enhanced our NDP 10 are: cooperation and interaction with the • Formulate a National Security Strategy; international community and increased • Develop and implement a opportunities for the country. communication strategy; • Adherence and compliance with STRATEGIES FOR NDP 10 international agreements.

13.58 The goal of Botswana’s international SUMMARY OF relations is to promote international PROGRAMMES/PROJECTS LINKED goodwill and cooperation. Goodwill is the TO DIFFERENT STRATEGY FOCUS willingness of other countries to cooperate AREAS with Botswana in various spheres. The intention is to enhance the security of the 13.61 Forge and Maintain Relations: The country both politically and programme has an intended outcome to socioeconomically. enhance the security of the country. There are various activities that have been

13.59 The strategy is intended to forge new identified to drive the programme. These relations in strategic locations and enhance entail: open new missions, establish the existing ones for mutual benefit. This diplomatic relations, contribute to causes of involves establishing relations with other common good, promotion of exchange 320 visits, and facilitate adherence to and The Ministry of Foreign Affairs and compliance with international agreements International Cooperation is responsible for and coordination of foreign policy priorities. the programme and review sessions to be The performance of the programme will be carried out according to the public service tracked through the identified key review structures. performance indicator: incidence of threat. 321 CHAPTER 14 OPEN, DEMOCRATIC AND ACCOUNTABLE NATION KEY RESULT AREA: GOVERNANCE

14.1 This Chapter deals with the Vision pronounces on the rights of litigants in a 2016 Pillar of an Open, Democratic and speedy way, settling disputes and acts as a Accountable Nation. The pillar addresses the guarantor of the freedoms and rights of the concept of “governance”. Governance refers population. to the way a society sets and manages its development and policy processes. Good 14.4 Participatory democracy has governance should enable a country to characterised Botswana since Independence. implement the most appropriate policies to There have been deliberate and sustained achieve sustainable development. This is efforts to involve stakeholders in achieved through mobilising, using and development decisions and initiatives that coordinating all available resources in the affect their livelihoods. Civil society public, private and civil society sectors, organisations are mature and operate freely domestically and internationally, in the most in Botswana. effective and efficient way. In this Plan, three National Development Goals, 14.5 Transparency, accountability and the Transparency and Accountability in All rule of law should be sustained in all public Public and Private Institutions, Rule of Law, and private institutions. In this connection, and Enhanced and Sustained Participatory the overarching strategies for this thematic Democracy are addressed. These goals are area are: strengthening the capacity (human the responsibility of three sectors, Public capital development, process reengineering, Administration, Justice and Legislature. and systems) of all governance institutions; enhancing skills and knowledge of the

14.2 An open and transparent government general populace; improving the continues to form the basis for, and remains environment necessary for the public to hold vital to the sustenance of Botswana’s both the public and private sectors, civil tradition of democratic governance, and society and leaders accountable; and thereby the achievement of national strengthening the legislative and policy aspirations and priorities. Openness and frameworks in order to minimise transparency, as key elements of sound opportunities for corruption and to improve public sector management, promote the enforcement mechanisms for accountability. accountability and transparency.

14.3 The rule of law remains vital for 14.6 During the NDP 10 plan period, the development. The judicial system continues Public Administration, Justice and the to function without interference from the Legislature sectors will focus on the executive branch of government in following sector goals, Government dispensing justice. It provides checks and Efficiency and Effectiveness; Effective balances to the work of other organs of the Oversight; Accessible Justice; and State, ensuring that it is conducted according Enhanced and Sustained Participatory to the provisions and requirements of the Democracy. constitution and other laws of the country. It 322

14.7 The first two sector goals respond to democratic governance. Transparency is problems experienced during NDP 9. These about accessibility to the general public of include limited capacity to coordinate and clear information about government, private implement national programmes and sector and civil society activities, in order to projects, parallel rather than integrated increase citizen participation and enjoyment structures and systems, poor service delivery of the services provided. Accountability for in the public sector, the need for improved development results rests on the monitoring of project implementation and establishment of criteria for evaluating the the need to reduce corruption. performance of public, private sector and civil society institutions so that they can be

14.8 Under the goal of accessible justice, held responsible for their actions or problems include inaccessibility of justice inactions. due to inadequate court structures across the country, and complex and cumbersome 14.12 At the highest level, the Constitution court rules and procedures, all leading to a of Botswana provides a number of internal high cost of justice, a backlog of cases and a accountability mechanisms in the operations shortage of human resources. of the three branches of government; the Executive, the Legislature and the Judiciary.

14.9 The goal of enhanced and sustained In this connection, Botswana takes pride in a participatory democracy responds to culture of strong political, administrative problems of voter apathy, limited citizen and financial management accountability participation in development and democratic mechanisms. processes, and shortage of capacity in decentralised entities to contribute 14.13 In a number of surveys and effectively to policy formulation and assessments conducted by various regional implementation. and international bodies on good governance during NDP 9, in Africa and globally,

14.10 The expected outcomes from Botswana’s performance in the areas of interventions during NDP 10 are transparency and accountability was improvements in the following: delivery of consistently impressive. For example, in public services, prevention of corruption, 2007, Transparency International (TI) accountability and transparency, ranked Botswana in the top 25 of countries accessibility to justice, respect for human assessed globally, and Botswana has always rights, public confidence in the justice been ranked the least corrupt country in system, lawful government decisions and Africa. The 2004 United Nations Economic quality legal services. Commission for Africa (UNECA) Governance Survey of African countries National Development Goal: Transparency placed Botswana in the first position in and Accountability in All Public and Respect for the Rule of Law, and Corruption Private Institutions Control; and second in Investment Policies, Institutional Effectiveness and

14.11 Transparency and accountability are Accountability, and Civil Service closely linked as key dimensions of Transparency and Accountability. 323 Table 14.1: Botswana Governance Performance (2003 – 2009) Percentile Rank (0-100) Governance Indicator 2003 2004 2005 2006 Voice and Accountability 74.5 77.4 70.2 66.8 Political Stability 82.2 77.9 82.7 93.3 Government Effectiveness 75.8 77.7 75.4 73.9 Rule of Law 67.6 69 68.1 67.1 Regulatory Quality 74.6 69.8 69.3 65.4 Control of Corruption 84.5 81.6 82.5 78.2 Customer Satisfaction - - 25% - Source: Kaufman et al, 2007: Governance Matters VI – Governance Indicators for 1996- 2006 and Government of Botswana (2005)

14.14 Despite these achievements, and policies are understood by the Botswana should sustain and deepen past population”. Botswana will therefore achievements in the area of transparency and continue to strive to improve service accountability. As the national vision delivery, develop better monitoring systems document states, “it is important that and implement programmes and projects Botswana continue its tradition of open more efficiently during NDP 10. government, and encourage a degree of transparency so that the reasons for decisions SECTOR: PUBLIC ADMINISTRATION INTRODUCTION

14.15 Public administration refers to the Corruption and Economic Crime (DCEC), management of the public sector, funded by the Attorney General’s Chambers, and public resources and approved by independent bodies such as the Independent Parliament. It deals, therefore, with Electoral Commission (IEC) and the Vision government effectiveness. It addresses the Council Secretariat. Also included are quality of public services, the quality of the specialised advisory institutions such as the civil service, the quality of policy Public Enterprises Evaluation and formulation and implementation and the Privatisation Agency (PEEPA). credibility of the government’s commitment to such policies. It includes oversight of the 14.17 There remains scope for improved independent departments. performance. Comprehensive public administration reform covers business

14.16 Institutions established in the forty process reengineering, organisational two years since Independence in 1966 structures, decentralisation, personnel include government ministries, local management, public finance, results-based authorities and oversight institutions, such as management, and regulatory reforms. These the Office of the Auditor General, the Office issues will be addressed during NDP 10. of the Ombudsman, the Directorate on Bureaucratic red tape, employee 324 productivity and work ethics, project governing Acts, the Office of the Auditor implementation capacity, and monitoring General is responsible for auditing the and evaluation, quality of service delivery accounts of all Ministries and Extra- and growing perceptions of corruption are Ministerial Departments, of all local some of the challenges that will be authorities and land boards and selected addressed during NDP 10. public corporations. In terms of the Finance and Audit Act, notwithstanding the REVIEW OF NDP 9 provision of any other written law for the audit, the Auditor General is empowered to Public Sector Reforms carry out investigations into the financial affairs of any public corporation, where

14.18 Public sector reforms have been he/she considers it to be in the public introduced over the last two decades to interest to do so. In addition, the Auditor address the challenges highlighted above. General has the power under the same Act, The reforms include decentralisation to examine the economy, efficiency or (services and authority), creation of effectiveness with which any officer or oversight institutions such as the Office of institution of Government has used public the Ombudsman, Directorate on Corruption moneys or public supplies, and reports the and Economic Crime (DCEC) and the results thereof to the Minister of Finance. Public Enterprises Evaluation and Such audits are known as performance Privatisation Agency (PEEPA). The audits or value-for-money audits. Government Implementation Coordination Performance audits embrace: Office (GICO) has been formed under the Office of the President to improve the • Audit of administrative activities in implementation of projects. At the micro- accordance with sound administrative level, there have been other initiatives such principles and practices, and as Organisation and Methods (O&M) management policies; Reviews, Job Evaluation, Work • Audit of the efficiency of the utilisation Improvement Teams (WITS) and the of human, financial and other resources, Performance Management Systems (PMS). including examination of information One of the major concerns is the slow pace systems, performance measures and of privatisation (see Chapter 4). The monitoring arrangements, and Government desires to reduce the size of the procedures followed by audited entities public service, and thereby to increase the for remedying identified deficiencies; role of the private sector as the engine of and, economic growth. • Audit of the effectiveness of performance in relation to the Office of Auditor General (OAG) achievement of the objectives of the audited entity, and audit of the actual

14.19 The Office of the Auditor General impact of activities compared with the promotes accountability by auditing the intended impact. public sector, to assure the nation that public resources are applied for purposes intended. 14.20 During NDP 9, the Office of the There is increasing public pressure on the Auditor General (OAG) undertook projects Office of the Auditor General to lead on aimed at strengthening its capacity by issues of accountability and good computerising the audit process and governance. In terms of Section 124 of the enhancing audit methodology. The ICT Constitution of Botswana and other relevant audit capability was enhanced through 325 recruitment and training of staff. This Private Partnerships. This was meant to resulted in a more effective audit approach. enable the Office to provide better service But further improvements to the ICT from premises which are not only modern, infrastructure are needed to optimise its but also centrally located for easier access. usage.

14.24 During NDP 9, the Office of the

14.21 Under the capacity strengthening Ombudsman experienced a number of initiatives of the audit methodology, the challenges. First, public awareness about the Office of the Auditor General reviewed and functions and the role of the Ombudsman updated the audit manuals and trained staff remains low. Secondly, the institution is on the use of these manuals. The scope of relatively new in Botswana and therefore the performance audit function was still to be understood by the people. Thirdly, expanded to include local authorities and the turnaround time to resolve investigation parastatal organisations in order to address of complaints is long: between one and three the rising demand for value-for-money in years. Fourthly, the Office of the the delivery of services. Implementation of Ombudsman operates from only two offices, the performance audit initiatives will be namely, the Gaborone headquarters and a expedited during the NDP 10 plan period. branch office in Francistown, which was set The Finance and Audit Act has proven up towards the end of 2001. As a result, the inadequate in facilitating the Office to majority of the public are unable to access discharge fully its oversight functions; the services offered by the Office. Fifthly, hence, the intention is to promulgate a new since inception, the Office of the Audit Act which is in line with best Ombudsman has been operating with very practices. limited manpower resources. The impact of these shortages has been felt particularly in Ombudsman the core business of complaint investigation. Strategies and Programmes devised to

14.22 The Botswana Ombudsman was overcome these challenges during NDP 10 created by an Act of Parliament in 1995. include Public Education and Awareness, The primary mandate is to investigate Human Capital Development, Improved maladministration in public institutions. It Access and Review of the Ombudsman Act, provides an objective review of citizens’ 1995. complaints and assists Government Directorate on Corruption and Economic departments and agencies to comply with Crime (DCEC) established standards, rules and regulations of public service management. This 14.25 The DCEC was established in 1994 facilitates and stimulates reforms in public under the Corruption and Economic Crime administration. Since its inception, the Act to prevent and investigate suspected Office has been investigating and resolving cases of corruption and economic crime. It complaints of maladministration, has three main functions: (i) investigation particularly where they impact negatively on and prosecution of offenders, under good governance. delegated authority from the Attorney General; (ii) educating the public about the

14.23 During NDP 9, the Office undertook evils of corruption and enlisting their to improve accessibility to services provided support in the fight against corruption; and by the Office of the Ombudsman. One of the (iii) preventing corruption and economic major development projects undertaken was crime. Botswana's continued zero tolerance the provision of office space through Public- of corruption has led to its high ranking in 326 the international arena. However, 60 percent Prevention and Public Education. In keeping of the population believe that corruption is with the aspirations of Vision 2016, during rampant. NDP 10, the Directorate will focus on capacity building in the area of proactive

14.26 During the period under review, the intelligence, data collection and analysis and Directorate continued to handle allegations training in various fields. Offices will be of corruption, and suspicious activity reports established at strategic locations to facilitate arising from financial institutions. Reports easy access to DCEC facilities. A review of handled by the Directorate have remained anti-corruption strategies is expected to constant over the years at an average of develop additional strategies to enable the 2000 per annum. Cumulatively, between Directorate to continue with “making 2003 and 2006, the Directorate received and corruption a high risk and low return processed a total of 7,549 reports, 2,349 of undertaking”. which were relevant to the mandate of the DCEC. The remainder, 69 percent, were 14.30 Key issues for consideration are as either referred to other government follows: departments or advice was given to the • Implementation of a National Anti- complainants. This is an indicator of the Corruption Strategy; need for intensive public education. • Development of an Information Management Plan to improve on

14.27 With regard to prevention strategies, proactive intelligence; a critical analysis of the different • Establishment of further Anti-Corruption organisational processes continues to be Committees; carried out through studies of systems and • Establishment of offices at strategic processes. These studies culminate in areas; recommendations for implementation by the • Expansion of ICT; respective institutions. However, the slow • Implementation of the Codes of Conduct rate of implementation of recommendations for public and private sectors, as well as reduced the effectiveness of the prevention politicians holding office; strategies. There is, therefore, need to • Increased Interactive Dialogue and review the operational strategy of the Collaborative Partnerships; Corruption Prevention Unit. • Development of a Chapter on Business Ethics

14.28 Anti-Corruption Committees within • Facilitation of Declaration of Assets; the different Ministries and departments were introduced, in order to reduce • Conducting management oriented corruption to an absolute minimum by workshops; and breeding public servants who are equipped • Provision of advisory services. to respond satisfactorily to the corruption challenges they face in the workplace. A International Instruments pilot project of anti-corruption committees was set up in two departments, namely the 14.31 During NDP 9, the Ministry of Department of Road Transport and Safety Foreign Affairs and International (DRTS), and the Central Transport Cooperation (MOFAIC) established an Organisation (CTO). Inter-Ministerial Committee on Treaties and Conventions. The Committee is mandated

14.29 DCEC will continue with the three with advising Government on ratification pronged strategy of Investigation, and accession to international treaties. The 327 Committee is also monitoring the quality service from public institutions, as implementation of international treaties, well as the right of recourse where there is Botswana’s reporting obligation and the non-compliance with established service domestication of international treaties. standards. Botswana participated in the international fora on issues related to good governance, 14.34 Privatisation: As a way of national elections in the region and peace modernising the public sector, the role of the building missions. private sector will be enhanced through outsourcing support services and public STRATEGIES FOR NDP 10 private partnerships for public service delivery.

14.32 Establishment of Partnerships: This entails forming and improving 14.35 Capacity Enhancement: Human networks for sharing and learning best capital development - this strategy includes practices in public administration with local initiatives for systematic and objective and international organisations and management and monitoring of strengthening consultative fora with various performance; and skills and competency stakeholders. In addition, initiatives to development (leadership, supervisory, improve outreach programmes for citizens, advocacy, change management, coaching ministries, private sector, civil society, and skills, etc.). In addition, strategic recruitment international organisations will be developed and retention strategies will be explored and implemented in order to facilitate during the implementation of NDP 10. awareness and knowledge of the public Infrastructure development will include administration machinery. Robust measures for improved accessibility of partnerships with civil society can play an services provided to the public, such as the important watchdog role over policy use of mobile services, fleet expansion and formulation and implementation, thereby office accommodation. Capacity contributing towards an effective and development at the societal level is required efficient public administration. to support the paradigm of a more interactive public administration that equally

14.33 E-Governance: This strategy aims learns from its actions and from the at making services and products more feedback it receives from the population. accessible to the public, ensuring that new technology does not create a digital divide 14.36 Strengthen Legislative and Policy between those with ready access to Frameworks for Improved Performance electronic media and those without, as well and Service Delivery: This entails as ensuring efficient use of information strengthening the capacity of oversight through ICT. Through this strategy, research institutions (including reporting lines and and development, innovation, knowledge operational autonomy, etc.), reviewing and generation and management, information enactment of laws (Audit Act, Ombudsman management capacity and development, and Act, DCEC, Whistle Blowing, Freedom of implementation of effective communication Information), regulations (General Orders), strategies will be strengthened. Business processes (Performance Standards) and processes will be re-engineered and/or policies (National Reforms Policy) that automated to increase accessibility and inhibit effective national development efficiency of services. Availability and easy programmes. access to information empowers citizens with knowledge of their right to receive 328

14.37 Anti-corruption: A corruption free 14.38 Strategies will be reinforced to stamp environment is vital for economic growth out acts of corruption in both public and and sustainable development. Corruption private sectors. Financial and performance distorts human values, exacerbates market audits of all public sector institutions will be inefficiencies and undermines democracy, scaled up. Acts of maladministration and the rule of law and social development. abuse of power will continue to be Corruption also engenders citizens’ investigated and corrective measures frustration with both elected and appointed enforced. officials. It seriously erodes confidence in the process of governance, and it is 14.39 Public education: Campaigns will detrimental to the effective delivery of be increased to promote good governance. goods and services to those most in need. Private sector and civil society organisations will be encouraged to abide by corporate governance principles. Sector Performance Matrix Matrix 14.1: NDP 10 Goal, Key Performance Indicators (KPIs), Baselines and Annual Targets NDP 10 Goal NDP 10 Key Baseline NDP 10 Period Targets Performance Year Base- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Indicator line Transparency Corruption and Account- Perception Index 2007 5.4 5.4 5.8 6.0 6.2 6.4 6.6 6.8 ability in All Government Public, Private Effectiveness 2006 73.9% 73.9 74.6 74.9 75.2 75.6 75.8 80% and Civic Customer Institutions Satisfaction Index 2005 25% 45 55 65 75 75 75 75% Voice and Accountability 2006 66.8% 66.8 67 68 70 72 74 75% Source for baselines: Kaufman et al, 2007: Governance Matters VI – Governance Indicators for 1996-2006 and Government of Botswana (2005) SUMMARY OF leadership, coordination of national policies PROGRAMMES/PROJECTS LINKED and programmes, good governance and TO DIFFERENT STRATEGY FOCUS timely dissemination of information to all AREAS stakeholders. In addition, the programme will utilise public private partnerships to improve public service productivity and

14.40 The Public Sector Modernisation service delivery. The Programme outcome is Programme is aimed at improving the an efficient and effective public service. Key quality of public goods and services and performance indicators for this outcome are making public organisations more Government Effectiveness and Customer responsive to private sector involvement. It satisfaction. Baseline Government addresses the Vision 2016 goal of an effectiveness is measured at 73.9 percent, efficient, responsive, transparent and while the customer satisfaction survey accountable public sector. The programme is baseline is at 25 percent. For the Plan designed to foster a customer-oriented ethic period, the target for government and transform the public sector into a world effectiveness is 80 percent and 75 percent class service centre. The strategy is to use for customer satisfaction. information technology to strengthen institutional capacity to provide visionary 329

14.41 Strengthening the Public and expected to foster accountability by Private Sector Governance Programme is promoting ethical conduct in service aimed at ensuring the effective and efficient delivery, promoting moral uprightness, management of the country’s resources, as addressing the existing gap between the key well as ensuring that administrative affairs stakeholders in the fight against corruption. are conducted in a transparent, accountable, Programme outcomes are reduced acts of equitable and responsive manner. The corruption and enhanced accountability and objectives of the programme are to ensure transparency. Key performance indicators value for money in the utilisation of public are the corruption perception index, which is resources, that acts of abuse of resources are measured at 5.4, with a target 6.8 for the reported and dealt with, that public Plan period. expenditure is legal and accounting procedures comply with agreed standards, National Development Goal: Rule of Law that maladministration and violations of human rights in the public sector are 14.43 Rule of Law denotes the extent to investigated and that appropriate which agents have confidence in and abide recommendations for corrective action are by the rules of society, including the quality implemented. The programme provides of contract enforcement, property rights, the feedback to the public on the utilisation of police, and the courts, as well as the public resources, addresses complaints of likelihood of crime and violence. Since maladministration, holds office bearers Independence, Botswana has had an accountable for their decisions or actions impressive record of the observance of and provides effective regulatory systems in human rights and the rule of law. Its citizens the private and public sectors. The have generally enjoyed the rights and programme outcomes are enhanced freedoms guaranteed by the constitution accountability and transparency in public (Long Term Vision for Botswana: Towards and private institutions and organisational Prosperity for All). effectiveness. The key performance indicator for this outcome is Government 14.44 The judicial system of Botswana is Effectiveness. The outcome on based on the Roman Dutch Law, and co- Organisational Effectiveness will be exists with customary law. The Judiciary is measured by customer satisfaction levels of established under Section 95 of the the institutions concerned. Baseline data for Constitution of the Republic of Botswana as some of the key performance indicators an independent arm of Government, with the associated with these outcomes and outputs responsibility to administer justice in are not available. Efforts will be made to accordance with the Constitution and other determine the baselines and targets during laws of the country. It hears and determines the first year of Plan implementation. both civil and criminal cases, as well as any other disputes thereto. The judiciary

14.42 National Anti-Corruption comprises three layers of courts in Programme: This National Anti-Corruption descending order of rank and authority: the Programme is geared towards a Court of Appeal being the highest court in comprehensive prevention and reduction of the land, with appellate power, the High all forms of corruption in all spheres of the Court, with unlimited jurisdiction, and the society by involving all key stakeholders. It Magistrates Courts, which handle the bulk is further geared at enhancing accountability of the cases. These courts are also linked to and transparency in the state and non-state other courts and tribunals created under actors. The programme is, therefore, other statues through the appeals process, 330 such as the Industrial Court, Court Martial, Botswana Police Service, Botswana Prisons the Land Tribunal and the Customary and DCEC. Courts.

14.46 The three arms of government

14.45 The judiciary operates independently continue to thrive and operate independently of other arms of the state, has a good from one another. The legislature enjoys the reputation and confidence from the public. independence of law making, while the The co-existence of the arms of the state and judiciary focuses on the interpretation of their ability to operate smoothly has these laws. These arms are independent of strengthened the rule of law and democracy the executive function and the executive has and earned Botswana respect and goodwill complied, and will continue to comply, with from the international community. The all decisions of the courts. It is necessary to respect accorded the judiciary by the other maintain this Independence. In so far as the arms of government, and their willingness to executive is concerned, the Attorney enforce court rulings, have created a healthy General continues to be the principal legal and conducive environment for the advisor, the cornerstone of such legal advice performance of the judicial function. The being adherence to the constitution and other ability of the judiciary to discharge its laws. In a thriving democracy, the Attorney functions efficiently also depends on the General plays a critical role in the promotion support it receives from other institutions of the rule of law. linked to the Administration of Justice, such as the Attorney General’s Chambers, SECTOR: JUSTICE INTRODUCTION REVIEW OF NDP 9

14.47 This sector relates to the Administration of Justice and the Attorney Administration of Justice General’s Chambers, whose primary responsibilities are the settlement of disputes 14.48 During the last Plan period, the and provision of legal services to the entire Administration of Justice introduced reforms Government machinery. It also deals with in response to demands for improvements in issues related to the mandate of the the services provided by the courts. The Industrial Court and Customary Courts, as public demanded capacity building of the well as the role played by civil society on overall personnel of the courts to enable issues of justice. The major responsibilities more cases to be dealt with, as well as of the Judicial system are to dispense justice, improvement of processes and facilities to provide checks and balances to the work of take justice closer to the people. Several other organs of the State, to ensure that such reforms were introduced: Judicial Case work is conducted according to the Management, Business Process Re- provisions and requirements of the engineering, as well as the Case Records constitution and other laws of the country, Management System. The High Court Rules pronounce on the rights of the were reviewed to reduce delays. Additional litigants/people in a speedy way, and settle Judges and Magistrates, as well as support disputes. staff, were recruited. Eight magistrates’ courts and one division of the High Court 331 were built during the Plan period. The High the Industrial Court to have jurisdiction over Court continued to operate Circuit Courts, industrial disputes involving public officers. thereby taking justice to the people. This, coupled with the requirement to hear cases which could not be mediated within

14.49 The processes, particularly the 30 day legal requirement, led to a computerisation, modernised the registries backlog of cases. Further, office and improved the management of case accommodation for the Industrial Court records significantly. Registries, therefore, proved to be inadequate. moved from manual to digital handling of case records. Judicial Case Management Customary Courts empowered Judges to control the pace of cases, thus taking this away from the control 14.53 Customary Courts are responsible for of lawyers/litigants, which slowed the the administration of justice under the system down, as well as the pace of case system of customary law. There is a network disposal, and led to the build up of cases. of customary courts, which handle the majority of criminal and civil cases within

14.50 The Judiciary also took part in the their jurisdiction. There is also a Customary Delimitation Commission, Presidential Court of Appeal. These courts are presided Commissions and the IEC. The membership over by Dikgosi in villages and Court of the Judicial Service Commission was Presidents in urban centres. Customary expanded from 3 to 7, and the retirement age courts handle about 80 percent of cases in of Judges was increased from 65 to 70 years. the country, largely because of their physical The Judges’ Pension Act was passed by accessibility, simple court procedures and Parliament. lower cost.

14.51 Nevertheless, problems remained: 14.54 A major challenge is that most physical inaccessibility of justice due to Dikgosi and Court Presidents have no inadequate court structures across the background training in modern law. This country, increased cost of justice because of does not augur well for the justice system complex court procedures, shortage of and has resulted in complaints of professional and support staff. There was a miscarriage of justice. However, during backlog of cases due to increasing volumes NDP 9, a total of 160 Dikgosi were trained of registered cases and appeals, inadequate in the delivery of justice under the implementation capacity, delayed Government of Botswana/ United Nations acquisition of land and expansion of other Development Programme (UNDP) justice institutions at the expense of Governance Programme. Furthermore, the Administration of Justice. Department of Tribal Administration was restructured and the administration cadre re- Industrial Court graded in order to improve organisational effectiveness.

14.52 The Industrial Court was established by the Trade Disputes Act of 1992 to settle Attorney General’s Chambers trade disputes and to maintain good industrial relations. The court has 14.55 The Attorney General is the jurisdiction in every matter brought before Government’s principal legal advisor. it. The Industrial Court was constructed During the Plan period the Attorney during the Plan period. During NDP 9, the General’s Chambers (AGC) was Trade Disputes Act was amended to enable restructured. Amendment of the constitution 332 gave all prosecutorial functions to the updating of the Laws of Botswana, which is Director of Public Prosecutions and nearly complete; development of the transferred the Lands and Deeds Registry Guidelines for Drafting Instructions and the functions to the Ministry of Lands and Drafting Manual; accelerated training of Housing. The post of Parliamentary Counsel Legislative Drafters; development of a was created and the Attorney General Contractor Drafters Database; development removed from Parliament. During NDP 9, of a Government Legislative Programme; the quality of service delivery within the servicing of the NDP 9 legislative agenda; AGC continued to improve, although establishment of a Statute Law Revision problems remained. The number of pending Unit and e-laws; and elimination of the law cases and the backlog that results from reporting backlog. The Laws of Botswana delays in the disposal of cases remain a and Botswana Law Reports are available for concern. Below is a summary of the sale on CD-ROM with search control. initiatives and strategies undertaken during NDP 9. 14.59 Increased Litigation: As a result of economic growth there has been a

14.56 Decentralisation of the AGC considerable increase in litigation, both Civil Functions: legal services were decentralised and Criminal. This led to extreme pressure to Ministries and to other parts of the on the available human resources, with an country. A number of State Counsel posts unacceptably high workload ratio among were created and seconded to various litigating lawyers and delays in the disposal Ministries and Departments. The main of cases. problem has been attracting appropriately qualified and skilled lawyers to these posts. 14.60 Increased Demand for The offices of the Directorate of Public Commercial Agreements: Generally, Prosecutions (DPP) in Francistown and NDP 9 saw the emergence of a vibrant Gaborone were expanded, while new offices economy and a robust national development in Maun and Palapye were established. Once agenda. Government embarked on major again, the main challenge has been infrastructural developments and improved recruitment of staff for these facilities. service delivery. Government business continued to generate a large demand for

14.57 Human Resources Capacity commercial agreements. Commercial Building: During NDP 9, concerted efforts agreements are an integral part of were made to improve the human resources government business. The Attorney General capacity within the AGC. The AGC played a leading role in drafting these continues to lose experienced lawyers to the commercial agreements and ensuring that private sector. As a result, most lawyers are the position of government is protected. at junior level, having recently joined the AGC after graduating from universities. 14.61 The Law Society of Botswana: The Several strategies were introduced in an Law Society continued to ensure that attempt to retain experienced lawyers and professionalism is promoted, and that the these are beginning to bear fruit. Amongst integrity of practitioners is upheld. The others, it is hoped that the introduction of Society continued to address cases of the scarce skill allowance will go a long way indiscipline among lawyers. As a result, towards attracting and retaining lawyers. some lawyers were struck off and disbarred from practising.

14.58 Legislation and Law Reporting initiatives during NDP 9 included the 333

14.62 Some of the major concerns that the Corruption and Economic Crime. A AGC faced during NDP 9 included delays in framework for instituting legal aid and an the drafting of legislation and conclusion of Alternative Dispute Resolution mechanism, cases. To this end, the AGC, its key clients in order to promote justice for the socially and stakeholders, such as Government and economically disadvantaged and reduce Ministries and the Administration of Justice, pressure on the courts, will be established. will work towards shortening their turn- around times. 14.68 Decentralisation: In order to bring services closer to Ministries and STRATEGIES FOR NDP 10 departments, legal units will be set up in those institutions. The AGC will also

14.63 Capacity Building and Human decentralise services to other parts of the Resource Development: It is imperative country. that capacity is built by developing the human resources base within the justice 14.69 Quality Legislation and system, as it is one area that has lagged Agreements: The AGC plans to develop behind over the years. This will also include and implement a cross-cutting quality capacity building for Dikgosi and management system in collaboration with Customary Court Presidents. the Botswana Bureau of Standards, as well as service level agreements with AGC

14.64 Information and Communications clients. The major activities that will be Technology (ICT): In order to improve undertaken during NDP 10 include: the efficiency, it is important to develop and strengthening of the Statute Law Revision implement ICT systems. This will enable Unit; a comprehensive revision and both the Government and the public at large consolidation of the Laws of Botswana; to access services speedily. establishment of a training and quality assurance structure in the Legislative

14.65 Partnership with Key Drafting Division; establishment of a Law Stakeholders and Development Partners: Reform Commission; transfer of the law This is critical for the attainment of an reporting function to the Administration of efficient and effective justice system. As Justice; the provision of public access to such, there is need to strengthen relations legislation; and the roll out of the e-laws with stakeholders and development partners, application. Compliance with superior court as well as to improve coordination and decisions is an area that has presented some collaboration. challenges during NDP 9. The AGC will ensure that legislation is continuously

14.66 Privatisation: Privatisation should amended in accordance with court decisions. be given a wider meaning to include outsourcing of services, including, where 14.70 Customer Satisfaction: In order to necessary, core services. In this way, the improve customer satisfaction, there is need benefits of improved speed and service to undertake the following initiatives: (i) delivery will accrue. streamline turn-around time targets with those of key stakeholders, such as the

14.67 Quality Prosecution and Civil Administration of Justice, Botswana Police Litigation: The quality of prosecution will Service and Directorate on Corruption and be enhanced by the take-over of all Economic Crime; (ii) increase capacity and, prosecutorial functions from the Botswana where possible, employ paralegals to Police Service and Directorate on undertake non-complex legal functions, such 334 as debt collection, taxation of bills of costs (iv) provision of focused and skills oriented and enforcement of court orders in favour of training, including the establishment of Government; (iii) implementation of an dedicated in-house training systems. integrated case management system; and Sector Performance Matrix Matrix 14.2: NDP 10 Goal, KPIs, Baselines and Annual Targets Goal NDP 10 Key Baseline NDP 10 Period Targets Performance Year Achieve- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Indicator ment (NDP 10 Target) Rule Governance 2006 67.1 67.1 68 70 72 74 76% 76 of Indicator (Rule Law of Law) NB: This sector will also use the turn around time of cases and the reduction of the backlog of cases as other key performance indicators. Data for these are not yet available, but will be collected during the first year of implementation. SUMMARY OF PROGRAMMES/PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS

14.71 Strengthening of Judicial localisation of the Court of Appeal and Administration Programme: The purpose decentralisation of the Master’s Office, with of the programme is to strengthen the a view to facilitating speedy and effective administration of justice through the courts conclusion of cases. The programme is of law and other stakeholders by ensuring aimed at streamlining the contribution of the speedy disposal of cases and quality judicial various stakeholders in the justice system. decisions in all cases under the jurisdiction This will reduce slow disposal of cases, of the Court of Appeal, the High Court, the which results in a backlog of cases, and Industrial Court, the Magistrate Courts and facilitate the speedy and expeditious the Customary Courts. This will necessitate delivery of justice. The programme will recruiting suitably qualified personnel, benefit the entire public and other providing training to staff within the stakeholders in that the effective conclusion judiciary, and also providing sufficient and of cases would promote social harmony and purpose built courts and residential houses thereby contribute positively to conflict for staff in various places close to the resolution and the fight against crime. communities. This will enhance access to judicial services. The programme will also 14.72 Government Legal Services entail interfacing of the Court Records Programme: The programme aims at Management System with other providing comprehensive legal services to stakeholders, rolling out the Judicial Case the Government and ensuring that the Management System to the Magistrates’ Government receives quality legal advice Courts, the introduction of Court Annexed that is based on the Constitution and the law. Mediation, Specialised Courts, e.g., As principal legal advisor to the Commercial Courts, Small Claims Courts, Government, the Attorney General will be 335 the primary driver of this programme. social, economic, political, entrepreneurial, Services provided by the AGC include the spiritual and cultural development by all undertaking of criminal and civil litigation, citizens that is informed by a culture of the drafting of international and commercial transparency, accountability and agreements, as well as legislation. The consultation are essential for sustainable programme will assist the AGC to development in Botswana.” effectively discharge its function of providing quality legal services. The AGC 14.74 The Constitutional and legal will improve its staff recruitment and frameworks encourage the freedoms of retention strategies. Emphasis will be placed speech and association that enable various on addressing the high staff turn-over rate types of non-state organisations to operate. and developing the necessary knowledge There are a number of institutions and fora and skills required to deliver quality legal for the involvement of stakeholders in services. The decentralisation of legal consultative and participatory governance. services to Government Ministries will also These include the traditional Kgotla or be intensified, with a view to providing first village assembly, Village and District line legal advice. In addition, the AGC will Development Committees, Local expose Government Ministries to basic legal Authorities, the High Level Consultative procedures and principles, by preparing Council, the National Employment, guidelines and conducting workshops. Other Manpower and Incomes Council, the Rural activities geared at ensuring the delivery of Development Council and the National quality legal services will include the District Development Conference and the establishment of a Quality Management biannual National Business Conference System Unit at the Chambers, and (NBC). In 2004, the Government issued a facilitating the establishment of a law reform policy framework for Government-non- agency and a legal aid scheme. governmental organisation (NGO) relations. This framework incorporated a Code of National Development Goal: Enhanced Conduct for operations of NGOs. and Sustained Participatory Democracy

14.75 The overall strategy is to strengthen

14.73 The goal of Enhanced and and sustain participatory democracy in Sustained Participatory Democracy Botswana during NDP 10. This will be requires that various stakeholders influence achieved by: and share control over development • Increasing the effectiveness of initiatives, decisions and resources that representational bodies through building affect their livelihoods. This entails the capacity of representatives such as establishing channels of voice, Parliament and Local Authorities; representation and accountability at all • Informing and involving citizens in the levels. Achievement of this goal requires a activities of institutions which deal with sustained effort to build viable institutions issues of participatory democracy, the capable of involving citizens in governance aim being to increase citizen processes affecting them, mobilising all appreciation and participation in stakeholders to articulate their needs and democratic and electoral processes; aspirations clearly, and designing • The Kgotla will continue to provide a programmes which respond to such needs platform for the participation and effectively and sustainably. The Botswana involvement of communities. National Vision 2016 states that “…full involvement and meaningful contribution to 336 SECTOR: LEGISLATURE INTRODUCTION

14.76 Botswana’s democratic governance 14.78 As part of its strategy to promote is characterised by, among other things, its participatory governance, the Government participatory, transparent and accountable initiated the process of decentralisation since nature. Legislatures are the people’s branch Independence. There are 28 local of government, the institution where citizen authorities, consisting of 6 town councils, 10 interests and preferences are expressed and district councils and 12 land boards. The transformed into policy, and the point at sixteen Councils have 596 Councillors. which, at least potentially, people most closely engage their national government. In 14.79 The objective of Botswana’s the context of Botswana, they have decentralisation process is to promote functioned effectively to strengthen our popular participation and facilitate democracy as channels of voices of those sustainable rural development and efficient most affected by government policies. The service delivery. Councils provide basic National Assembly, Ntlo ya Dikgosi (House facilities, such as potable water, health, and of Chiefs) and Local Councils have, since educational facilities. A major boost for Independence, contributed to the processes decentralisation for local development and of representation, legislation and oversight, capacity building was the establishment in thereby shaping and directing the 1970 of the District Development Committees development of this country. (DDCs) and Village Development Committees (VDCs), through which

14.77 Since Independence, elections for the decentralised development planning is done. National Assembly and Councils have been The different functions of Local Authorities conducted every five years under a system are administered by the administrative wing of universal adult suffrage. Elections are an reporting to, and being monitored by their important way through which citizens respective committees, headed and made up participate in decisions that affect their lives of elected representatives. and hold their representatives accountable for development results. The National 14.80 Ntlo ya Dikgosi, representing Assembly, being a constitutional different tribal groups, plays an advisory establishment, fulfils a number of important role on tribal, cultural and land matters, and functions in Botswana’s democracy. It can discuss any other matter of national represents people, reflecting and bringing importance. This is an indigenous their needs, aspirations, problems, concerns, governance institution that contributes and priorities to the policy-making and immensely to social cohesion and national policy-amending process. It makes laws, the stability. Botswana’s constitution recognises rules that govern the nation. It practices the role of traditional authorities and oversight, assuring that laws and requires their full participation in all programmes are carried out legally, development agendas including formulation effectively and according to legislative of laws. Bogosi (institution of tribal leaders) intent. and the Kgotla system have provided the bedrock for nation building. They are also valued for their maintenance of traditional 337 cultural values and law and order, in the participation rate was considered low at addition to the primary role of providing a 42% of eligible voters. forum for consultation with communities.

14.83 The legal framework governing the

14.81 In addition to these institutions, there conduct of elections was reviewed with the is an Independent Electoral Commission view to enhance its clarity. The IEC (IEC), which was established in 1997. The strengthened its operational linkages with main functions of the IEC are to conduct and key stakeholders through the establishment supervise elections for the National of Party Liaison Committees and constant Assembly and Local Authorities; conduct dialogue with Local Authorities, such as referendums; ensure efficient, proper, free District, Town and City Councils, and civic and fair elections; giving instructions and organisations and the media. directives to the Secretary of the Commission with regard to the exercise of 14.84 During NDP 9, the IEC undertook an his functions under the Constitution and increased Civic and Voter Education Electoral laws generally; and perform such Campaign aimed at addressing voter apathy. other functions as Parliament may by law An agreement was reached with the Ministry prescribe. of Education and Skills Development to include Civic Education in the schools social

14.82 The Constitution and legal studies curriculum to sensitise the youth on framework of Botswana allow and the value of elections in a democratic encourage freedom of association. Civil society. There remains a need for the IEC to society organisations, including NGOs, explore other outreach and education community organisations, employers’ strategies that will address voter apathy. The organisations, trade unions and public electoral and administrative processes could officers’ staff associations all operate in be further improved through greater use of Botswana. The NGO sector is growing and ICT, infrastructure development and fleet becoming increasingly diverse and continues expansion. to provide Batswana with additional channels of voice and broad citizen 14.85 Currently there are about 900,000 participation in national development. eligible voters in the country. The IEC has set itself a target to have registered at least REVIEW OF NDP 9 600,000 voters before the next elections in 2009. In addition to having a continuous Performance of the IEC registration process, which up to now has not yielded satisfactory results, the IEC has Since Independence, the electoral process in employed various strategies, such as Botswana has been functional, free and fair. facilitating workshops for various groups of Established in 1997, the IEC is perceived to the community, including the youth and be independent in both the selection of people with hearing and visual impairment. electoral commissioners and in the conduct The IEC is in the process of opening new of the electoral process. Voter registration is polling stations. Supplementary voter open, free, and subject to scrutiny by the registration exercises will be conducted public. Mechanisms exist for checking and prior to the next general elections. A greater validating, appealing and resolving electoral percentage of Batswana are still disputes. The 2004 general and local disinterested in the primary democratic elections (the second overseen by the IEC) process of voting for their representatives. were successful, credible and fair, though Hence, there is still a greater need for IEC to 338 explore other outreach and education included outreach programmes by strategies that will address voter apathy. Parliamentary leadership and staff, whereby they visit and address the youth about Performance of Parliament Parliament and visitors’ programmes at the Parliamentary precincts.

14.86 Following the 2004 general elections, there are 57 elected Members of 14.89 Great strides were made in Parliament (MPs) and four specially elected improving support services, including the members, representing an increase of 17 provision of offices for Members of elected members following the last Parliament, the establishment of 17 new delimitation exercise undertaken during the constituency offices, computerisation and NDP 8 Plan period. The legislature enjoys related training, structural improvements in the Independence of law making and the Ntlo Ya Dikgosi Chamber and training overseeing the executive branch without programmes. interference.

14.90 Some problems remain. Inadequate

14.87 Based on the quality of contributions manpower resources adversely affected the through amendments to bills and motions, production of Parliamentary records, debates and questions, there is no doubt that research services, and the servicing of Parliament’s capacity to process legislation Committees. Ntlo Ya Dikgosi, Parliamentary and related matters has improved. Part of buildings and Parliamentary flats require this improvement can be attributed to the refurbishment. There is a shortage of office exposure Members are afforded through and residential accommodation for Members training workshops, benchmarking and of Ntlo Ya Dikgosi. interaction with sister bodies internationally, and to improved support services. Some Performance of Local Authorities notable contributions were made during the processing of the Intelligence and Security 14.91 During NDP 9, progress was Act, whereby Parliamentarians sought to recorded in line with the Government Paper ensure that the bill left no room for No.1 of 2004 on the Second Presidential indiscretions. In addition, Parliament passed Commission on Local Government the first private members’ bill in its history, Structure. The Ministry of Local namely, the Domestic Violence Bill. Government established one fully operational district and two sub-districts,

14.88 Oversight activities continued to namely Chobe district, and the Moshupa and expand beyond the traditional public Tonota sub-districts. Efforts are continually accounts scrutiny. Through various being made to establish administrative Parliamentary Committees, Government was authorities and service centres at district called to account for its performance. Some level. The new Local Authority Procurement of the notable issues that the Committees and Asset Disposal Act addresses delays in dealt with, which attracted public interest, project implementation which were were in the areas of Health, HIV/AIDS, attributed to inadequate capacity and the Labour and the Privatisation of Public absence of an appropriate legal framework. Assets. Parliamentary Committees have also The new legislation will improve contributed to the initiative of “Taking governance at district level. Parliament to the People”, in order to cultivate greater public interest in the 14.92 One of the six key result areas which activities of Parliament. Other activities were identified by Local Government was 339 Enhanced Local Governance. The primary Administration, IEC and Councils plan to focus was on the recommendations of the improve the quality of institutional support Second Local Government Structure services: improving capacity to implement Commission. One of the approved projects, development of human capital, recommendations of the Commission was infrastructure development and the adoption of the Decentralisation policy, maintenance; re-engineering processes; which is key to enhancing local governance. reviewing relevant legislation and The Policy is still being developed. mobilising resources for democratic Initiatives introduced during NDP 9 were to processes. improve local governance, emphasise good governance with greater transparency, 14.96 Improve Information on the accountability and customer focused service Legislature and Election Processes: delivery. Gaps were identified in all spheres strengthening consultative fora with other of society in the understanding of policy and stakeholders, increasing civic participation legislation governing Local Authorities. (for citizens, ministries, the private sector, Local governance awareness workshops civil society and international were conducted for councillors, by training organisations), televising Parliamentary them on their roles, the role of debates and engaging in other forms of administrators, and the roles and functions information dissemination and knowledge of the Ministry of Local Government. management. STRATEGIES FOR NDP 10 14.97 Strengthen Administration of Electoral Processes: enhance the credibility

14.93 Development of E–Governance: of the voter registration processes, improve the effectiveness of the legislative continuous registration of eligible voters, processes through data capture, recording, ensuring free and fair elections, and storage and production equipment; ICT improving adherence to international capacity building, accelerating election standards. computerisation to improve communication and information management systems. 14.98 Consolidate Democracy: Parliament, IEC and Councils will strive to

14.94 Strengthened Legislative Capacity: increase the level of awareness of the forming networks for sharing and learning, democratic processes, addressing voter forming and improving partnerships with apathy, and increasing the role played by local, regional and international institutions civil society, particularly the media, in the and implementing capacity building democratic processes. initiatives. There will be workshops on international instruments, and policy 14.99 Increasing Public Participation in formulation and assessment for Local Democratic Processes: This strategy is to Authorities (Councils). further involve stakeholders and communities in the processes and activities

14.95 Improve Organisational Efficiency of representational bodies. and Effectiveness. Parliament 340 Sector Performance Matrix Matrix 14.3: NDP 10 Goal, KPIs, Baselines and Annual Targets NDP Goal NDP 10 Key Baseline NDP 10 Period Targets Performance Year Base- Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Indicator line Level of 2004 42% 50% 54% 54% 56% 60% 60% 60% Enhanced and participation in the sustained electoral process participatory Adherence to 2004 80% 90% 90% 90% 90% 95% 95% 95% democracy Constitution of Botswana, SADC and other international standards Increased 2004 19.6% 30% 40% 40% 45% 50% 50% 50% women’s representation Voice and 2006 66.8% 67% 69% 71% 73% 75% 75% 75% Accountability Source: IEC and Kaufman et al, 2007: Governance Matters VI – Governance Indicators for 1996-2006 SUMMARY OF support services; the rate of public PROGRAMMES/PROJECTS LINKED participation in legislative activities; and the TO DIFFERENT STRATEGY FOCUS number of public hearings by Parliamentary AREAS Committees. Benchmarks and statistics for some of these indicators will have to be developed in the first year of the Plan.

14.100 Enhance Legislative Capacity and Oversight of Parliament: This programme aims at strengthening the capacity of 14.101 Strengthening Public Involvement in Civic Duties: The main purpose of this Parliament to perform its legislative and programme is to increase citizen oversight functions more effectively, participation in the democratic and through provision of technical knowledge development processes. Participation and skills. Parliament’s administration will contributes towards development which support Members to oversee the activities of reflects the needs, aspirations and priorities the Executive for efficiency, probity, and of citizens. The extensive consultation and fidelity, and to become more responsive and participation of Batswana in the transparent. The programme has three development of the Long Term Vision for outcomes, namely, increased effectiveness Botswana, “Towards Prosperity for All”, of Parliament; an informed and involved provides a living and real example that citizenry; and enhanced Parliamentary continues to guide the development agenda support services. Key performance of the country. The programme focuses on indicators for this include the level of public the following: increased public awareness of confidence in the Legislature; voice and the democratic processes; empowerment of accountability; the number of public women, youth and people with disabilities in submissions to Parliamentary committees; the electoral processes; increased citizen the level of satisfaction of members in participation in the electoral process; 341 increased awareness of development identified in the electoral process. The processes at District and community level; programme’s desired outcome is increased ensuring credible free and fair elections; and citizen participation in the democratic and stakeholder consensus on the need for legal development processes. and administrative responses to challenges 342 CHAPTER 15 A UNITED, PROUD, MORAL AND TOLERANT NATION KEY RESULT AREA: NATIONAL UNITY, PRIDE, MORALITY AND TOLERANCE

15.1 This Chapter deals with issues of important role in maintaining cultural values, national unity, pride, morality and tolerance. law and order. Botswana has much to be proud of, including the long tradition of internal peace, 15.3 On issues of morality and tolerance, democracy and the socio-economic progress Batswana will continue to espouse social that has been achieved since Independence. values that engender cohesion and embrace The country is comparatively free of diversity, and increase transparency to destructive tribal and cultural divisions. Its remove practices that facilitate corruption. social structure, though affected by Strong family values will be inculcated to challenges associated with globalisation, create a culture of cohesion and morality. rests upon a history of set traditions The family will continue to be a central governing the behaviour and obligations of institution for support and development of people towards each other and the society as the people and for transmission of social and a whole. These are assets in themselves and moral values. Young people will be are a necessary platform for any sustainable supported to grow into responsible, self- process of national development. Batswana reliant citizens, with the life skills necessary are, therefore, a society with confidence in for full participation in the economy and in themselves, pride in their achievements and a society. The ethnic groups that make up sense of shared destiny. Botswana will exist in harmony and have a voice and make contributions to the cultural

15.2 Botswana’s culture and heritage play capital and heritage for all. There will be a pivotal role in achieving national pride and respect for human rights and no negative unity in diversity. The country is “well stereotypes associated with gender, age, endowed with a rich variety of cultures and religion, colour, national or ethnic origin, languages that emanate from its different language or political opinions, as espoused in peoples and geography”. It is the intention the Constitution. Religious institutions will that during NDP 10, the people of Botswana be recognised for their role in the will further enhance the sharing of common transmission of moral and ethical standards. goals based on a common heritage, a sense of national pride and a desire for stability and National Development Goal 1: Strong peaceful co-existence. This will be National Unity and Identity demonstrated in many ways, including the increased use of national symbols that 15.4 National identity and unity are signify social harmony, the Botswana important ingredients for the survival of any national brand, and through many unifying people in the rapidly changing and activities, such as sport, recreation and globalising world. All avenues with a cultural activities. Bogosi (traditional potential to create national cohesion and leadership) and the Kgotla system, which unity must be vigorously pursued. Sport and have provided the bedrock for nation culture have demonstrated their potential to building, will continue to play their unify the nation and promote a sense of unity and national pride. However, the country has 343 limited expertise, knowledge and purpose- social problems affecting Botswana today. built facilities to exploit its diverse culture, The family, as the primary social unit, is heritage and potential in sporting activities. being threatened by the pace of change, To this end, Government has undertaken to urbanisation, the high degree of migrant create an enabling environment for private labour and unfriendly family policies (e.g., sector investment in the development of Government transfer policy which separates sport, youth empowerment, and the spouses and restriction on maternity leave to promotion and preservation of culture and women). The youth are the most affected by heritage. all these social problems and their situation could be worsened by the lack of youth

15.5 Globalisation has negatively friendly facilities and services. impacted on the positive aspects of Botswana’s cultural and moral values, as well as family traditions. Domestic violence, rape, child abuse, youth indiscipline, alcohol and substance abuse, etc., are some of the SECTOR: CULTURE INTRODUCTION

15.6 The National Policy on Culture 15.7 The long-term goal for the defines culture as “… the whole complex of development of culture is to preserve, distinctive, spiritual, material, intellectual present, promote and sustain its appreciation and emotional features that characterises the of the country’s diverse cultures, languages society or social group. It includes not only and traditions. These are irreplaceable the arts and letters, but also modes of life, the treasures of values, traditions and forms of fundamental rights of the human being, value expression. Botswana’s traditional value systems, traditions and beliefs…” Botswana system has the potential to resolve some of has a wealth of diverse oral and written the social ills being experienced today. traditions that determines the behaviour and Culture and sport must assume an important attitudes of its people. Family traditions and role in education, politics, socio-economic the strength of the family unit have, in the development, science and technology and past, been maintained and cultural and must embrace the interest of all stakeholders. spiritual values respected. Designed to promote social harmony (kagisano) and set 15.8 Botswana’s cultural and heritage the broader context for the nation’s resources have the potential to diversify the objectives, the national principles of economy with spill-over effects to other democracy, development, self-reliance, unity sectors. There is, therefore, a need to harness and botho (which is engrained in Botswana the potential value of cultural industries and culture, and refers to a state of being heritage resources. This can be achieved by humane, courteous and highly disciplined) establishing and consolidating new markets are derived from Botswana’s cultural for cultural products and services, enhancing heritage. The arts, national archaeological arts and culture practitioner’s skills and and heritage sites and other national strengthening communication networks. monuments add to the cultural wealth. All Research and documentation on Botswana’s these must be promoted and preserved. cultural heritage is not developed to the required standard. There is need to formulate 344 a national research policy and establish avenues for diversification of the national structures to engage in extensive research economy are rigorously explored. and documentation for the use of best Botswana’s multi-cultural society will thus practices. This will enhance the knowledge, be enriched and harmonised. It will serve as understanding, appreciation and value of the national focal point for policy, cultural heritage. operational direction and coordination for all international, national, district and local cultural programmes. It should also provide, REVIEW OF NDP 9 professional guidance on matters relating to policy, human resources training and

15.9 During NDP 9, the Government, infrastructural development in the area of therefore, commissioned a Joint Advisory arts and culture development. Committee of Ntlo ya Dikgosi and Botswana Council of Churches to consult with the 15.11 During NDP 9, a draft National public on social ills afflicting the nation. Its Action Plan on Culture (NAPC) was mandate was to recommend possible developed to rationalise the culture sector strategies for addressing such ills. Its and to clarify the roles of the various assignment was to determine the causes of contributors. It is currently under social ills that afflict communities, determine consideration by Government. This is the roles that can be played by traditional expected to improve coordination in the leaders and other community leaders in re- sector and attract private sector investment. instilling the social values, and recommend The NAPC is intended to enhance the to Government possible strategies for implementation of the National Policy on addressing such ills. The report and accepted Culture. Its goals are to re-awaken in the recommendations of the Commission are people of Botswana an appreciation of, and expected to guide interventions in this area respect for their own culture. This is during NDP 10. However, other expected to reinforce a sense of national interventions, such as the national strategy unity and pride, and to stimulate and foster against corruption, were implemented during creativity in all spheres of national life. NDP 9 because of the correlation between Batswana can thus continue to improve the morality and tolerance in promoting good quality of their own life, whilst making their governance at all levels and inculcating the original contribution towards the vast store highest ethical standards in all practices. of human civilization. This should strengthen their sense of identity and sensitise them to

15.10 Botswana took important steps during the need to assimilate innovation within the NDP 9 in realising the potential of the arts, context of their own culture. national culture and heritage in fostering national pride and unity, and in contributing 15.12 The implementation of the National to the economy. The creation of a separate Policy on Culture involves different role Ministry of Youth, Sport and Culture in 2007 players, such as government agencies, non- demonstrated the Government's commitment governmental organisations, local authorities, to issues of national pride and unity. In the Dikgosi, the private sector, artists, culture new Ministry of Youth, Sport and Culture is experts and the media. In this context, Arts the Department of Arts and Culture. Its and Culture organisations and groups were mandate is socio-economic development, and financially assisted to undertake income the creation of a vibrant democracy and a generating projects and capacity building rich human environment. This should ensure programmes. For example, the Government that culture is indeed developed, and that assisted the Botswana Society for the Arts 345 with P10 million for the design of the School heritage in order to increase unity and the of Arts. Some cultural groups visited sense of national identity. countries with which Botswana has cultural agreements to showcase Botswana’s culture 15.15 Other strategies include: and benchmark on best practices. Arts • Implementation of the accepted Associations were resuscitated and recommendations of the Social Values secretariats created, which are annually Commission: This is the first time the assisted in terms of their operating costs. Government has addressed issues of Government assistance notwithstanding, morality in this fashion. National collaboration with and participation of the consultations provide the bedrock for private sector increased. The private sector whatever initiatives will be developed to sponsored several cultural events, such as the address these issues. The Orange Botswerere Botswana Artists recommendations of the Commission Awards, Botswana Musicians Union Awards will, therefore, be very key during and the Thapong Artist of the Year Award. NDP 10; • Advocacy for the Embodiment of

15.13 A National Cultural Village and State National Principles (Botho, unity, Theatre were to be established during democracy, development, self reliance, NDP 9. These projects were to address the including dignity and discipline, as lack of purpose-built facilities for the espoused in the President’s roadmap): All promotion and preservation of Botswana’s stakeholders are expected to play an arts and culture. Due to limited resources, the active role in advocacy initiatives. Of State Theatre Project was deferred, while the particular interest are messages and National Cultural Village pre-design phase activities that will change the mindset of was commenced. National Culture Day was the youth, who are affected by the current commemorated and Heritage Month was wave of change that has been leading to a inaugurated for the first time in 2008 to loss of morality; celebrate Botswana’s culture and heritage. • Inter-generational Dialogue and a sense of civic duty will permeate all national strategies and policies; STRATEGIES FOR NDP 10 • Strong Family Values will enhance character development and inculcate a

15.14 Ideally, all aspects of culture should culture of social cohesion and morality; be explored and their full potential harnessed • Review of Policies, Practices and the through the provision of sufficient resources. Education System will stress the value The immediate strategy is to continue with of the family unit, multicultural society, existing programmes carried over from and respect for human rights, tolerance NDP 9. In all programmes, economic and eradication of negative social opportunities will be created, wherever attitudes; possible, for the earning of cash income by • Social Policies will be Harmonised to individuals and communities. This should strengthen the moral and social values of also increase the attractions of Botswana as society and promote a sense of civic duty, an investment and tourism destination. There volunteerism and self-reliance to will be improved heritage management, eliminate a culture of dependency research, documentation and partnerships. amongst Batswana; Batswana will be assisted to preserve and • Infrastructure Development: Multi- sustainably harness their diverse cultures and purpose youth centres will be built across the country to equip youth with life skills; 346 • Faith-based Institutions will play a arts and culture practitioners, to earn a living pivotal role in the maintenance and from their products and services. Botswana’s transmission of moral and ethical cultural and heritage products are not fully standards; appreciated because of lack of exposure, so • Partnerships will be created with full co- that their economic value has not been operation from all stakeholders: the realised. There is, therefore, a need to market private sector, government, parastatals, these products extensively to enhance their political entities, faith-based appreciation and recognition, and ultimately organisations, non-governmental to benefit the local communities and organisations and youth groups. contribute to the diversification of the economy. Sector Performance Indicators 15.18 Research and Documentation on Cultural Heritage: This will enhance

15.16 During NDP 10, Government will knowledge, understanding, appreciation and investigate the feasibility of a range of value of cultural heritage. Since Batswana indicators, taking into account the kinds of have been an oral society, the programme indicators that have been developed in other will further help to instil a culture of reading countries. amongst Batswana. The programme is intended to create a research hub on the SUMMARY OF cultural heritage of Botswana. Cultural PROGRAMMES/PROJECTS LINKED TO heritage is diverse and complex since it DIFFERENT STRATEGY FOCUS AREAS includes spiritual, material, intellectual and emotional features that characterise

15.17 Development of Cultural Industries Botswana society. Researchers will be and Safeguarding of Heritage: This afforded the opportunity to undertake studies programme is intended to preserve, promote on different aspects of culture and and present Botswana’s culture and heritage practitioners will use the research findings to by enhancing their appreciation and value. enrich their knowledge and skills. The Botswana has lost some of its national programme will assist policy makers and the heritage and national cultural assets due to general public in making informed decisions vandalism, pillaging and erosion in the face and this will encourage private sector of a growing population and influx of participation and investment in cultural tourists. This necessitates a concerted effort research. The importance of creating a to involve communities in the safeguarding research hub on Botswana’s cultural heritage measures of heritage resources. The is to enhance national pride and unity in programme will ensure the upholding of fulfilment of the National Policy on Culture, social harmony and encourage national unity the National Policy on Museums and pride. It will also create employment and Development in Botswana, the Community income for rural communities through the Based Natural Resources Management provision of support structures and services Strategy, Botswana’s Tourism Policy, the on the sustainable utilisation of cultural and Monuments and Relics Act, the heritage resources in their localities. The Environmental Impact Assessment Act, the programme should help to create a National Library Act, the National Archives knowledge society, which will enhance life Amendment Act and the Vision 2016 Pillars long learning, through the distribution of of a United and Proud Nation and an literary materials. The programme will also Educated and Informed Nation. empower women in rural areas, as well as 347

15.19 Improvement of Policy and policies and Acts of Parliament, and the Legislative Framework on Heritage: Vision, as noted above. Botswana is facing emerging challenges that have an impact on the development of 15.20 Attitude and Behavioural Change: cultural heritage which emanate from the fact Botswana is losing its social fabric, as that, since Independence, the sector has not evidenced by the escalating prevalence of been regarded as a priority. Consequently, its social ills in the country. There is, therefore, potential contribution to national an acute need to cultivate and preserve development has not been fully explored. A national moral and cultural values that will pragmatic approach is needed to give promote Botho in the face of rapid social direction to the development of cultural change. Moral rectitude will thus benefit the heritage. This will involve the review and country in that it will result in increased improvement of cultural heritage policies and national pride, identity and social cohesion. legislation. A friendly environment, with The programme aims at changing mindsets appropriate systems and structures in place, and attitudes of Batswana, to instil positive will create an outward looking approach that moral and spiritual values at all levels. It will will attract private sector participation and also promote positive role modelling by resource mobilisation. This calls for leaders and parents in order to empower alignment of bilateral agreements and youth to be responsible and self reliant international conventions to national policies individuals with sound morals/boikarabelo. to make the country competitive in the global It is selected on the basis that it will promote village. The programme will benefit cultural social harmony. It is in line with the National heritage practitioners, researchers, public and Policy on Culture, National Youth Policy and private sectors by creating a friendly and National Action Plan for Youth, Gender in well coordinated environment for cultural Development Policy, Corruption and heritage development. It will allow for role Economic Crime Act, Vision 2016 Pillars clarity, creation of facilities and enhance the and National Policy on HIV and AIDS. The better presentation, promotion and programme will provide youth with life skills preservation of heritage. The programme will that will inculcate strong moral, cultural further create an enabling environment for values and strong family values. It will also structured research to assist policy makers promote social cohesion and tolerance and the general public to make informed among Batswana. decisions. The programme is in line with the SECTOR: YOUTH INTRODUCTION valuable and a positive resource to the

15.21 Many young people require social, community, and live fulfilling lives. These economic and political support to realise objectives will be achieved through the their full potential, as they move from implementation of the National Youth Policy childhood to adulthood. Youth are faced with and other strategies, such as apprenticeship, a number of challenges, such as participation of young people in decision unemployment, HIV/AIDS, and poverty. To making at all levels and other economic this end, the youth of Botswana need to be empowerment programmes. guided to grow into responsible and self- reliant individuals such that they become a REVIEW OF NDP 9 348 the Botswana National Youth Council,

15.22 The mandate of the Department of exchange programmes were undertaken, Youth in MYSC is the promotion of the International Youth Day commemorated and status of the youth of Botswana and creation the Botswana National Youth Service of an environment conducive to their Awards ceremony, National Youth participation in the economic, social and Exposition and Youth Fora were held. political life of their society. The Department serves as a national focal point for youth STRATEGIES FOR NDP 10 policy, as well as for the coordination of all international, national, district and local 15.26 The youth will be provided with youth programmes. It also provides opportunities to reach their full potential as professional guidance on matters relating to individuals and active citizens, which should youth policy, human resources development help to reverse the culture of entitlement and and infrastructural provision. dependency that is widely believed to affect the younger generation. This will be

15.23 Botswana is faced with the challenge achieved through the implementation of the to increase economic opportunities for the National Youth Policy and other strategies, youth. To this end, during NDP 10, youth such as apprenticeship, participation of skills will be developed, including young people in decision making at all levels entrepreneurship skills, vulnerable youth and other economic empowerment mainstreamed in society, information and programmes. Globalisation and rapid change communications technology (ICT) harnessed do not need to be seen as a threat, but as a to facilitate information and research, inter- challenge to young people to empower generational transfer of knowledge, skills themselves by becoming self-confident, self- and values promoted. These support reliant and globally competitive. structures and services will result in youth becoming more self-reliant and productive. 15.27 Holistic programmes will be developed, together with the Botswana

15.24 The continued lack of opportunities National Youth Council, to provide youth for youth poses a serious challenge to the with life, employment and entrepreneurial nation, as it increases unemployment and skills training. Resources will be mobilised dependency on government assistance to increase economic opportunities for youth. programmes. This led to Government Purpose-built facilities will also be provided introducing income generating programmes to offer youth friendly programmes, to assist the youth to become self-reliant and including counselling and rehabilitation economically productive. Funding for the services to mainstream vulnerable youth into Out-of-School Youth Programme was also society. Policies and legislation will be increased, resulting in an increase in the reviewed and developed to empower youth number of income generation projects for and facilitate their participation in decision youth. To improve service delivery and making processes. mainstream youth issues, youth officers have been posted in all Ministries and independent 15.28 The private sector is expected to play departments. a meaningful role by providing financial and technical support to youth initiatives. The

15.25 The National Action Plan on Youth private sector will also be expected to create and the National Youth Policy are still under a market for youth products and services. review, in order to respond to emerging During NDP 10, research on issues affecting issues relating to youth. In collaboration with the youth will be undertaken to inform 349 decision-making and youth empowerment. developed in other countries and, therefore, This will also assist in exposing young might be relevant in Botswana. people to the latest technological developments in the area of ICT. SUMMARY OF PROGRAMMES / PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS

15.30 Youth Entrepreneurship Development: The programme is intended to Sector Performance Indicators empower youth to become self-reliant and economically productive by engaging in

15.29 During NDP 10, Government will sustainable enterprises. It is also intended to investigate the feasibility of a range of eliminate barriers that impede the indicators for this sector, taking into account participation of vulnerable youth in national the kinds of indicators that have been development. SECTOR: SPORTS INTRODUCTION

15.31 The National Sport and Recreation industry. Currently, the contribution made Policy for Botswana defines sport and by sport to national development is not recreation as ‘a highly formalised and noticeable, although it has the potential to organised physical activity of high intensity, diversify the economy, improve national regulated by accepted rules and regulations wellness and productivity. The other which require maximum physical input objective is to encourage private sector and/or a guided process, or voluntary investment to increase the country’s participation in any activity which competitiveness and the commercialisation contributes to the improvement of the of sport. general health, wellbeing and skills of the individual’. Organised sport and recreation can contribute to initiatives meant to address REVIEW OF NDP 9 the problems faced by young people, in improving health, and, at the national level, 15.33 During NDP 9, the following critical in creating a sense of unity and pride. factors were identified as constraints to sport Opportunities to develop sport industries and recreation development: low level of through sport tourism activities and the sports culture, limited funding, inadequacy creation of sport products and services exist. of trained sport personnel, inadequate Private sector participation is essential in sporting facilities, poor coordination developing a sustainable model for sport, between stakeholders, and low participation recreation and leisure. National fitness of people with disabilities, the marginalised programmes will be established, and will be and females. inclusive of all groups, including people with disabilities. 15.34 Despite these constraints, phenomenal growth has been achieved in the

15.32 The goal is to increase mass area of sport. For the first time in the history participation and to develop sport as an of Botswana, the sector was mentioned in 350 the State of the Nation Address, as well as in sport. As part of the MDGs, the Women during the Budget session in March 2007. in Sport Programme was established to Also, the Government increased its support encourage women to participate in sport. of the Botswana National Sports Council Other programmes initiated during the Plan (BNSC) annually during NDP 9. This period include District sport festivals, contributed to the further development of revival of traditional games, health and sport and recreation facilities. During wellness programmes. NDP 9, good performance at international competitions led to increased recognition of 15.36 Construction of integrated sport Botswana athletes, which resulted in some facilities at Lobatse and Francistown were athletes turning professional and being started in January 2007 and are due for recruited outside the country. During the completion in January 2010. Several sport two All Africa Games, held during NDP 9, and recreational facilities were renovated to Botswana athletes won a total of twenty-five encourage mass participation in sport and medals, of which 12 were gold medals, 4 recreation, with a view to improve the silver medals and 9 bronze medals. The country’s national wellness. There is still number of professional athletes has need to improve existing facilities, as well as increased from 26 in 2003 to 69 in 2007, to build new ones. while the three ranked athletes improved their world ranking. Improved athletes’ STRATEGIES FOR NDP 10 performance has also led to increased private sector sponsorship. Over the years, 15.37 Organised sport and recreation can private sector participation in the play a major part in coping with the development of sport has increased. In 2003, problems faced by young people, in private sector sponsorship totalled P1.7 improving health, and, at the national level, million, and almost doubled to P3.2 million in creating a sense of unity and pride. There in 2007. is also some scope for professional and commercial sport and recreation, which

15.35 Implementation of bilateral could give a small number of young people agreements has led to the transfer of an opportunity to earn a living from sport. knowledge, skills and technical expertise to Opportunities to develop sport industries local coaches and sport administrators. Sport through sport tourism activities and the exchange programmes with Cuba, China, creation of sport products and services exist. Australia, South Africa and the United Botswana will seek to attract international Kingdom were undertaken. Sport and regional sporting events and pay development programmes, such as “Re ba particular attention to potential economic bona ha”, have led to increased participation benefits in the development of purpose-built in sport. In 2007, a total of 4,005 children sport, recreation and leisure facilities. There had enrolled in the programme compared to is a need for private sector participation in the 671 who enrolled in 2003 (football, developing sustainable sport, recreation and volleyball and athletics codes). This has leisure programmes. National fitness been matched with successful popularisation programmes should be established, and of national team brand “Zebras”. The should be inclusive of all groups, including popularity of the football national team led people with disabilities. to the “Zebras for Life, Test for Life” programme initiated by the US Embassy in 15.38 Botswana sports strategy will be Botswana. The programme is aimed at based on the philosophy of “Sport for All”, mainstreaming awareness of HIV and AIDS that is inclusive and encourages equal access 351 and opportunities to participate in organised range of indicators for this sector, based sport. This will be achieved by introducing upon the experience of other countries, and adaptive sport, community recreation and decide which possible indicators should be wellness programmes, improving and given priority. constructing purpose-built facilities that support professional sport, recreation and SUMMARY OF PROGRAMMES / wellness. PROJECTS LINKED TO DIFFERENT STRATEGY FOCUS AREAS

15.39 Public awareness campaigns will be undertaken to promote and raise the value 15.43 Promotion of National Fitness, and profile of sport and recreation in Wellness and Competitiveness in Sport: The Botswana. The National Sport and programme aims at encouraging Batswana Recreation Policy for Botswana of 2002 will to participate in sport, and active leisure be reviewed to facilitate the review of the activities. This will contribute to the Sport and Recreation Act. This is to promotion of qualities essential for physical, rationalise sport structures, encourage mental and moral wellbeing. It is also professionalism, national wellness and intended to promote access and participation private sector investment. The in professional sport by providing recommendations of Government White opportunities for persons with talent to excel Paper No.4 of 2002 on Investigation on in different sport disciplines. The National Poor Performance of the National Sport Sport and Recreation Policy for Botswana of Teams will be implemented. 2001 has identified priorities aimed at establishing an integrated structure for

15.40 During NDP 10, the private sector planning, co-ordination and delivery of sport and institutions of higher learning will and recreation at all levels. Sport and provide financial and technical support to recreation have many tangible benefits and a enable research and documentation in the significant impact on fitness, wellness and areas of indigenous and professional sport. productivity. It will afford professional This will inform best practices, collaboration athletes the opportunity to use their talent to among stakeholders, promotion of a spirit of earn a living, encourage the development of volunteerism and establishment of integrated sports industries to diversify the economy. sport structures. Sport and recreation will also help to curb idleness, which results in alcohol and

15.41 A self regulatory sport and recreation substance abuse and general undesirable agency will be established to oversee behaviour, as well as the spread of HIV and commercialisation and development of sport AIDS. The programme has four outcomes, tourism industries. This will help to increase namely: physically active communities; private sector investment and reduce quality community recreation; increased government expenditure. competitiveness in sport; and a developed sport industry driven by the following Sector Performance Indicators outputs: removal of barriers to participation; active community clubs; the Sport and

15.42 During NDP 10, Government will Recreation Act; professionalism in sport; investigate the feasibility of developing a and an increase in private sector investment. 352 SECTION VII: MONITORING AND EVALUATION (M&E) 353 CHAPTER 16 MONITORING AND EVALUATION (M&E) INTRODUCTION

16.1 A major development in public convey whether beneficiaries have been affected administration world-wide in recent in the manner intended in the policies and years has been the increased focus on programmes. There is, therefore, need to Monitoring and Evaluation (M&E) and undertake monitoring and evaluation throughout Results-based Management (RBM) as a all the levels covering inputs, activities, outputs, basis for public sector management. outcomes and impacts of policies, programmes Proponents of the RBM approach have and projects. argued that it can help to improve public-sector quality and efficiency, as 16.5 In Botswana, the need for the monitoring well as enhance improvement of services of policies and projects has long been and accountability. acknowledged as evidenced by the following interventions:

16.2 RBM entails clearly defining • Establishment of a Standing Committee on expected results to be achieved through Project Implementation (SCOPI), composed implementation of projects, programmes of selected Permanent Secretaries, to and policies; continuously monitoring monitor implementation of policies and their performance; and making projects; adjustments to improve both their • Establishment of a Project Monitoring Unit efficiency and effectiveness. The tools of in 2001 in the Ministry of Finance and M&E provide the needed capability. Development Planning (MFDP); and, • The development of a Project Monitoring

16.3 This Chapter is intended to provide System by MFDP in 2004. a holistic M&E framework and processes that will be used to efficiently 16.6 Preliminary investigations into why and effectively aid implementation of policies and projects monitoring interventions policies, programmes and projects did not achieve their objectives revealed that during NDP 10. they (interventions) were not as holistic as under the RBM approach. Some of the shortcomings BACKGROUND identified in these interventions are: • Lack of clear performance indicators and

16.4 Historically, governments have targets for some policies, programmes and focused their attention on resource projects; inputs (what they spend), activities (what • Lack of data on performance of some they do and outputs (what they produce). policies, programmes and projects; Accurate information at these levels is • Policies have conflicting objectives; important, but insufficient to determine • Monitoring and Evaluation systems do not the success of policies and programmes. communicate with each other; and, It does not • Inadequate structures primarily dedicated to monitoring and evaluation. 354 projects, as well as dealing with the

16.7 To effectively address the above mobilisation of required resources; mentioned challenges, in May 2007, • Provide advice to Cabinet and individual Government established the Government Ministries concerning projects being put Implementation Coordination Office forward; (GICO). • Assist Ministries with projects from conceptualisation to completion, in

16.8 The establishment of GICO is one conjunction with MFDP, which deals with of the key recommendations of the the financial dimension; Business and Economic Advisory • Monitor project implementation and quality, Council (BEAC). BEAC was established utilising state of the art computer systems in 2005 to assist the Government to for project management and coordination; realise the objectives of accelerated • Guide and coordinate a review of existing economic diversification in order to policies, laws and regulations for achieve sustainable economic growth. In compliance with the philosophies and its investigations, the Council noted that approaches of the new policy principles “one of the major shortcomings in arising from the approved BEAC Action Botswana is that many projects, large or Plan; small, invariably fall behind schedule, • Review, on an on-going basis, all issues are poorly conceived and carried out, related to the international competitiveness come in over cost or fall below of Botswana and its attractiveness as an acceptable standards. The shortcomings investment destination and recommend in project management and execution remedial intervention where required; derive from a lack of high level project • Drive and guide the management and implementation rationalisation/privatisation of parastatals in capabilities.” terms of the Privatisation Policy and the Privatisation Master Plan, in cooperation

16.9 As a solution, the Council proposed with Public Enterprises Evaluation and the creation of an overarching Privatisation Agency (PEEPA) and other Implementation Coordination Unit relevant Ministries; within the Office of the President, to • Act as a bridge to the private business sector achieve effective policy and project and international business, in conjunction implementation through overseeing and with Botswana Export Development and driving forward Government’s new Investment Authority (BEDIA); and, diversification growth strategy, as well • Review the entire tender process in as coordinating function for all major collaboration with the Public Procurement government projects. The goal is to and Asset Disposal Board (PPADB) to improve focus, speed, quality and cost streamline, simplify and speed up projects. effectiveness of project implementation – Botswana’s greatest current MONITORING AND EVALUATION shortcoming. STRATEGIES

16.10 The mandate of GICO is as

16.11 The following are strategies for follows: Monitoring and Evaluation: • Co-ordinate all major government • Development of a comprehensive projects with other initiatives and Monitoring and Evaluation System; 355 • Development of Policy Formulation 16.13 The national MDRF serves as the basis and Review guidelines; for identifying relevant national-level indicators • Capacity Building: Capacity (outcome and impact) for performance M&E. It development will be critical for links broad national goals (Vision 2016 goals) effective monitoring and evaluation. with the key national strategies of NDP 10 and To that end, Project Management will be used for measuring and reporting on Offices will be established within progress that the country is achieving in meeting each Ministry to plan and manage these national goals. periodic evaluation studies and provide credible and objective M&E Roles and Responsibilities information to their respective Ministries; 16.14 At the national level, M&E will be the • Harmonisation of Policies and responsibility of Vision 2016 Council and Strategies; and, MFDP. The Vision 2016 Council will primarily • Information Dissemination: The monitor and evaluate progress at the macro Vision Council has initiated steps to level. MFDP’s emphasis will be on financial measure progress towards the Vision management. Goals by using the “Botswana Performance” report. This will be an 16.15 At the Sector/Ministry level, M&E will annual report intended to provide primarily be the responsibility of GICO, information on where Botswana is in working with the Public Sector Reform Unit terms of each of the seven Vision (PSRU) and Ministries/departments. GICO will Pillars. serve as a central agency to support the development and maintenance of an effective Monitoring and Evaluation and sustainable M&E capability across Framework and Processes Government. It would be an M&E centre within Government and will develop and manage the

16.12 A comprehensive Macro M&E system. PSRU will be responsible for Development Results Framework public service performance. (MDRF) (see Table 3.1 in Chapter 3) has been developed for M&E purposes at the 16.16 The detailed roles and responsibilities of national level. The MDRF spells out the GICO in M&E are as follows: Macro priorities for the country for NDP • Development and management of the 10. The Framework will be application of a structured M&E System; supplemented by other types of • Provision of guidance and support to monitoring and evaluation approaches, Ministries/departments in the effective such as the Logical Framework, Theory- utilisation of evaluation as a management Based Evaluation, formal surveys, Rapid tool; Appraisal Methods, Public Expenditure • Promotion of the use of evaluation findings Tracking surveys, Impact Evaluation, by Ministries/departments to improve etc., which will be used to monitor and quality of policies, programmes or projects; evaluate performance of projects, • Undertaking and coordinating programmes and policies, where thematic/sector evaluations that cover cross- appropriate. cutting themes or issues; and, • Advising on alignment of projects to policies and strategies. 356

16.17 Roles and responsibilities of Reporting Requirements MFDP are as follows: • Undertaking and coordinating 16.19 The M&E information should be thematic/sectoral evaluations of reported as follows: macroeconomic (fiscal and • Submission of quarterly progress reports by monetary) and socio-economic sectors to GICO; variables that include cross cutting • Analysis of quarterly progress reports by issues relating to economic growth GICO; and development; • Presentation of the analysed quarterly • Coordinating thematic, sectoral progress reports to Committees, e.g., a programme and project budget Committee of Permanent Secretaries; development, management and • Submission of a Cabinet Information Note implementation evaluations; on progress on a quarterly basis; • Provision of guidance and technical • Sectors should use client satisfaction support to Ministries/departments in surveys and other self assessment tools on the effective utilisation of financial an annual basis; resources made available to them; • Conduct comprehensive policy/programme • Alignment of projects/programmes evaluation every 3-5 years. In case of a pilot to monetary and fiscal policies and programmes with a life span of less than 3 strategic sectoral thrusts; and, years, conduct rapid appraisal towards the • Exploring financing options end of the programme, or an ex-post study (external loans, Public-Private after completion. Partnerships (PPPs), own funds, etc.) for development programmes and CONCLUSION projects, and mobilise such funds accordingly. 16.20 In this Chapter, issues of the monitoring and evaluation framework, reporting

16.18 The roles and responsibilities of requirements and reporting structures, among Ministries/departments in M&E are as others, have been discussed. M&E, as an follows: integral part of the National Development Plan • Ensure that resources deployed for 10, will empower the planners and programmes and projects are implementers with requisite skills to be able to effectively and efficiently utilised; execute the Plan easily within stipulated time • Set up internal mechanisms to scales. Further, the monitoring and evaluation facilitate continuous monitoring of mechanisms will provide an ongoing review and policies and programmes and assessment of issues. projects for which they are responsible; 16.21 Finally, plans which are contemplated • Carry out evaluations on current and without an inbuilt monitoring and evaluation completed programmes under their mechanism are bound to fail. The programme purview; and approach will enable implementing entities to • Provide resources in their annual pursue national programmes in a coherent, budgets for the establishment or coordinated, participatory and sustainable strengthening of internal M&E manner. capacity. 357