World Bank, UNDP implore a shift to private sector led economy
Government has been implored to allow the private sector to play a large role in economic activities of the country, for rapid growth and development.
The country’s development partners - United Nations Development Programme (UNDP) and World Bank (WB) shared the same sentiments at the 2nd Botswana Annual ESG and Sustainable Finance Conference held in the capital Gaborone, this week. The two development partners were speaking to the topic Collaborative Partnerships for Sustainable Development in Botswana, exploring the pivotal role of collaboration in addressing sustainability challenges in Botswana.
The panelists focused on common goals, innovative partnership models, technology utilisation, overcoming barriers, stakeholder engagement, and scaling successful initiatives through fostering dialogue and collaboration aimed to drive collective action towards a more sustainable future where economic prosperity, environmental conservation, and social equity are interconnected priorities for Botswana's development. UNDP representative, Balazs Horvath said government authorities need to ensure there is a balance between social and corporate objectives, citing that regulations and policies should be crafted to ensure the private sector pursue profit model without trampling on social needs.
' A very large state-owned enterprises portfolio is very costly, keeping the companies afloat,” said Horvath urging for allowing of private sector to play a leading role in economic activities. Sharing the same sentiments, World Bank Country Representative, Liang Wang said the country needs to shift from the public to private sector led economy, with ESG being at the centre of the transition. “There is need for the government not to create more state owned enterprises but allow the private sector to take the lead,” said Wang suggesting that the private sector need to create value while government guards against uncompetitive practices. He also highlighted that employment creation will be the mandate of the private sector.
Stating that the GDP’s growth has slowed down over the years, from annual growth of 10 percent since the 1960s through the 1990s and sliding to five percent and three percent eventually, Wang indicated that the country needs to change its economic model, as growth has slowed down. “The growth model is losing steam, for Botswana to make growth to continue, something has to be done differently. The new growth model has to be inclusive and more productive driven.” Meanwhile, Regional Director: SADC – International Tourism Investment Corporation (ITIC), Gobusamang Keebine said creating a new model for the country’s economic growth also calls for embracing ESG. “ESG is not CSI or CSR, in Botswana there is slow traction. The world is far ahead of us on ESG compliance,” said Keebine highlighting that the local economy can only attract foreign direct investment (FDI) if enterprises are ESG compliant. “FDI now calls for ESG,” said Keebine, adding that financers are now keen on ESG compliance. Horvath also added that ESG is now an instrument for businesses to receive a solid license to operate. He further said ESG creates value by reducing adjustment value in the future. “Put ESG at the centre of your business,” said Horvath.