Regulatory systems frustrate Business Botswana members

President of Business Botswana, Neo Ngwako praised the government for its efforts in consolidating and anchoring the National Transformation Strategy (NTS).

However, he noted that the NTS could be further refined to better address key economic drivers. Speaking at this week’s National Business Conference (NBC), which attracted over 500 delegates from both local and international arenas, Ngwako urged the government to continue supporting Business Botswana in its mission to grow and facilitate businesses beyond the country’s borders.

Ngwako emphasised the importance of ensuring that public-private policy dialogue consultative structures are functional and that economic policies and strategies are coherent. He reiterated that while the NTS is a step in the right direction, it can be improved to better capture critical economic drivers.

'Time is not on our side,' he warned, urging for swift action from the government. He highlighted several pressing issues facing the country, including unemployment, poverty and inequality, slow economic diversification, and climate change. He stated that feedback from Business Botswana members indicate growing frustration with the regulatory systems they encounter.

These frustrations stem from issues such as over-regulation of business activities, the lack of adherence to Regulatory Impact Assessments (RIA), increasing and unrealistic compliance costs related to land leases and concessions, and the absence of an efficient regulatory framework, particularly in the transport sector, which lacks a Transport Act.

This regulatory gap has not only harmed the industry but also limited government revenue opportunities. Ngwako emphasised that with these challenges, 'we cannot effectively address the pressing issues facing our country.'

He called for coordinated, collaborative, and unified action between the private sector and the government. He acknowledged the longstanding collaborative relationship between Business Botswana and the government, which has yielded significant outcomes over the years, such as the establishment of the Competition Authority, the creation of the Botswana Bureau of Standards (BOBS), the formulation of long-term national development plans, and the establishment of a Privatisation Agency to enhance private sector participation in national development.

However, he expressed concern over the slow momentum toward a private sector-led economy, stressing the urgent need to accelerate progress in this area.

This acceleration would help address the slow implementation of many initiatives, inefficiencies in expenditures, rising perceptions of corruption, and the need for improvement in the business environment—factors that hinder economic growth, diversification, and the goal of becoming a high-income economy.

To this end, Business Botswana remains committed and ready to serve as a key advisor to the government, urging the operationalisation and strengthening of agreed-upon public-private dialogue consultative structures, particularly the High-Level Consultative Council (HLCC) and the Special Economic Zones Authority (SEZA).

Ngwako acknowledged that challenges also arise from the private sector, such as initiatives being delivered beyond agreed timelines, exceeding budgets, or being of subpar quality. He emphasised that the private sector is committed to reorganising itself internally to ensure greater effectiveness, efficiency, and higher quality in its work.

Speaking on this year’s theme, 'Invigorating Economic Transformation Through the Private Sector,' Ngwako noted that it underscores their dedication to harnessing the untapped potential of the vibrant and dynamic private sector, while also prioritising environmental sustainability.

He stressed the importance of recognising that in the pursuit of wealth and social progress, they must not overlook the responsibility to support the private sector, which is currently suffering from a costly business environment.

The objective, therefore, is to foster business ideas that are both sustainable and beneficial to their shared future. He expressed anticipation in hearing from government about the innovations and sustainable solutions it plans to implement to support private sector growth.

Ngwako highlighted that the National Business Conference (NBC) is a testament to their progress toward realising this vision. Attendees engaged in several oral presentations and witnessed a series of roundtable discussions.

Topics included, leadership, digitalisation, export-led growth and value chain development, privatisation, innovative public procurement, the African Continental Free Trade Agreement (AfCFTA), and specialised sessions on health and education. Ngwako expressed confidence that the selected topics would provide a wealth of information and numerous opportunities for fruitful discussions.

Ngwako emphasised to his audience the importance of reassessing Botswana’s business environment to make the country a better place for everyone who works, lives, and does business.

He highlighted the need for smarter regulatory systems, improved processes, and well-designed regulations that reduce business costs, unlock economic growth, and enhance public health and safety outcomes. He particularly stressed the importance of rigorously enforcing Regulatory Impact Assessments (RIA).

Ngwako also pointed out that the AfCFTA presents an opportunity for Botswana to gain enhanced market access. He acknowledged the challenge of increasing productivity so that Botswana’s businesses can be competitive, and assured that Business Botswana is prepared to collaborate closely with the government in advancing this policy agenda.

At the core of the conference, Ngwako noted, is the question of what is needed to achieve a private sector-led and export-led economy. While the call for such an economy has grown louder, he observed that several factors have been holding it back.

He urged participants to engage in honest, robust, and potentially uncomfortable discussions at the National Business Conference (NBC) to uncover these issues and identify actionable opportunities to realise a private sector-led economy through value chain development and export growth.

Ngwako expressed confidence in the partnership between the private sector and the government, given the presence of numerous senior government officials, distinguished speakers, and hundreds of delegates from various sectors and regions.

He acknowledged that while the policy dialogue is active and operational, there is still work to be done in strengthening it by modernising it to better meet current needs.

'At Business Botswana, our vision is to cultivate a diverse, vibrant, and resilient private sector. The National Business Conference (NBC) offers a platform for dynamic engagements and interactions among businesses, particularly Small, Medium, and Micro Enterprises (SMMEs), to connect, network, collaborate on business improvements, and seize unique opportunities in today’s globalized economy.'

Ngwako further emphasised that to demonstrate Business Botswana's commitment as the unifying voice of business and to support the government's focus on empowering citizen-owned SMMEs, deliberate efforts were made to ensure the participation of SMMEs, youth, and women-owned businesses across various sectors, particularly from the Francistown area, at this year's NBC.

He further highlighted that Business Botswana recognises the importance of nurturing new talent. In line with this, young future leaders from various sectors and disciplines have been welcomed to the conference to challenge conventional thinking, share ideas, and inspire the next generation of entrepreneurs to lead the country's transformational agenda.

Ngwako proudly announced that, with government support, the target to support 100 SMMEs at this year's NBC has been met, with almost 100 small businesses, informal sector participants, and young leaders in attendance. He also introduced new developments for the 17th NBC, including enhanced monitoring of NBC resolutions.

The private sector is committed to doing things differently, addressing challenges in implementation that have significant implications for business.

Ngwako acknowledged the heavy opportunity costs of these failures, noting that the inability to implement resolutions has hindered job creation and economic growth in Botswana. He promised to share the status of past NBC resolutions with all attendees.

Business Botswana is taking ownership of NBC actions and resolutions by implementing a digital platform that will be public and monitored every six months, ensuring an open and transparent process for accelerated implementation. Ngwako announced that they have already partnered with the United States Embassy to develop the monitoring system or tool.

He emphasised that these new developments will continue to make the NBC more impactful and appealing to all stakeholders. Additionally, Ngwako informed the audience that Business Botswana has completed the development of its new five-year strategic plan.

This plan is designed to create an inward-looking, stakeholder-centric organisation that will drive economic growth in Botswana, with a strong focus on evidence-based policy research, technology adoption, cohesion.

'With our newly crafted vision and mission statements, we are committed to advocating for a private sector that not only leads but also makes a substantial contribution to the country’s GDP by generating opportunities that drive economic growth and job creation. Your support for the NBC, through sponsorship and diverse exhibitions at events like this, reinforces our shared goal of achieving a private sector-led economy.

“Our promise to our members is that we are in business for your business. This commitment reflects our dedication to helping Botswana reach its goal of becoming a high-income country by 2036.'

Further that, 'Ultimately, a thriving business environment hinges on how we engage with the government. As policymakers, they look to us, the private sector, for guidance on the kind of business environment we envisioned partnerships, and robust value-added services.' He noted that the initial review of this plan has already shown positive change.