Business

National Lottery to bolster economy

Trade and Industry minister, Mmusi Kgafela
 
Trade and Industry minister, Mmusi Kgafela

Botswana stands to diversify its economy through the National Lottery, if it ticks all its boxes, those with intimate knowledge of the industry told Botswana Guardian this week. Seven years ago, the Gambling Authority, flighted Request for Application (RFA), seeking bidders to participate in the country’s First National Lottery. In 2020, Grow Mine was selected as the preferred bidder. However, during the negotiations, Gambling Authority formed the view that, Grow Mine did not possess level of funding required to roll out the National Lottery.

Subsequently, Gambling Authority terminated Grow Mine’s Preferred Status. “The Board of the Authority wishes to inform the nation that the Negotiations with Grow Mine were unsuccessful and consequently the status of Grow Mine as the Preferred Applicant has been revoked,” said Gambling Authority back then. 'As a consequence of this revocation, the Board has resolved to invite the Reserve Applicant to negotiate the License to operate the Botswana National Lottery.” However, 7 years later, the Gambling Authority is yet to issue Botswana’s First National Lottery.

This has led to a series of litigations by interested parties. This week those with working knowledge of the lottery and its economic benefit, explained that there is need to overcome litigation delays and start the process of unlocking development and prosperity. “Litigation tactics hinder progress and development. A national lottery would generate jobs, revenue, economic activity, social funding, entrepreneurship, and infrastructure development for Botswana’s growth,” said a person familiar with lottery operations.

Botswana, a landlocked country is currently struggling with rising unemployment levels which hovers around 25 percent. The establishment of a national lottery is expected to create direct and indirect employment opportunities. “It would require a dedicated workforce to manage and operate the lottery, including administrative staff, marketing professionals, customer service representatives, and technical personnel. Additionally, the lottery would generate demand for goods and services, leading to job creation in sectors such as retail, hospitality, transportation, and manufacturing,” said a gambling expert. Once the national lottery is up and running, Botswana stands to benefit from an industry which is perhaps the fastest growing globally. According to available information, global lotteries market size is expected to grow from $211.77 billion in 2022 to $298.29 billion in 2023 at a compound annual growth rate (CAGR) of 40.9%. “A national lottery can serve as a significant revenue generator for the government.

The proceeds from lottery ticket sales can be allocated to fund various development projects, infrastructure initiatives, and social welfare programs. This additional revenue stream would reduce dependence on traditional tax sources and contribute to economic growth by enabling investments in critical sectors,” said sources who spoke to Botswana Guardian, refusing to be named for victimisation. The introduction of a national lottery would stimulate economic activity. It is expected to attract both local and international visitors, resulting in increased tourism, hospitality, and retail spending. This will be a boost to tourism in Botswana, which is among the biggest revenue contributors to the economy. The revenue generated from the lottery can be directed towards social initiatives, such as education, healthcare, and community development programs. These investments would improve the quality of public services and contribute to social welfare, ultimately enhancing the well-being of citizens and promoting inclusive growth.

Studies show national lotteries, have contributed immensely to the sustenance of small businesses and entrepreneurship. The lottery ecosystem also foster collaborations with local suppliers, advertising agencies, and other service providers, benefiting the local business ecosystem.

The previous CEO of Gambling Authority, Thuli Johnson has in the past said: “Lottery raises money for good causes. Through the National Lottery Distribution Fund, it helps disburse money for good causes, mainly sports, charities, the arts, and others,” he said. Botswana, a developing economy, spends a sizeable amount of funds towards public infrastructure projects. For example, government, according to Finance minister, Peggy Serame, will spend as much as P12 billion in the 2023/24 to develop new infrastructure.

The lottery, which is expected to generate billions of Pula annually, will come in handy to bolster the country’s budget, which continue to run into deficits. “The funds generated from the lottery can be channeled into the development of public infrastructure projects. This can include the construction or renovation of educational facilities, healthcare centres, sports stadiums, cultural centres, and transportation infrastructure. The improved infrastructure would not only enhance the quality of life for citizens but also attract further investments and promote economic development,” said players within Botswana’s gambling sector. While Botswana is yet to have a National Lottery, Gambling Authority will host the International Association of Gaming Regulators (IAGR) conference in Gaborone in October.

The conference convenes gambling regulators from around the world to engage and network with industry peers through events, workshops, research, information sharing and the development of best practices. IAGR members also benefit from advocacy, support, and exclusive access to content, services and opportunities. On average, the conference attracts Two Hundred and Fifty (250) delegates from across the globe.