PPPs can bolster economy – Botlhole
Many jobs will be created if imported cement is cut off
Public- Private Partnership ( PPP) models can be the solution for human capital capacitation, which will in turn contribute to economic growth.
PPC Botswana Head of Business Unit Tuelo Botlhole reiterated these sentiments this week saying PPPs can revive and create employment amidst current economic uncertainty and social challenges, most of which have been aggravated by the Covid19 pandemic.
“Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth”, Botlhole said. Botlhole suggested that policy makers could prioritise local entities for national projects and in return the private sector increases employment and net growth.
He pointed out that the rate of unemployment, which stands at close to 30 percent, has always been a cause of concern in Botswana, even before the onset of the COVID- 19 pandemic which has exacerbated the situation.
Botlhole said it is high time industry captains came together to map a way forward in resolving the unemployment issue which has been building up for years and now has heightened especially due to COVID- 19. “What we can do as the private sector is to come up with packages and insights that would enable the creation of employment across industries. “At the same time the government can create policies that will stop a number of imports and product dumping so that we produce various goods locally”, he said. Botlhole pointed out that indigenisation plays a critical role in creation and driving economic viability.
“The private sector players should make it a priority to work closely with local suppliers on every level of production as it will create downstream beneficiation”, he said.
Botlhole urged policymakers to be strict in regulating such initiatives because indigenisation plays a critical role in the development of the country’s economy. He gave an example of how PPC Botswana has engaged with the local truck association by giving transport and logistics jobs to members of the association.
A report by Botswana Institute for Development Policy Analysis ( BIDPA) has indicated that like many other world economies, Botswana has a challenge of infrastructure financing gap.
The report indicated that one of the innovative ways to fill this gap is through PPPs with the capital market that has excess liquidity. BIDPA said infrastructure PPPs are complex and capital- intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. In recent years, PPPs have emerged as a central vein of the government’s privatisation policy, in the area of infrastructure and service provision as stipulated in the National Development Plan 9.
Botlhole said PPC has piloted this initiative hence the confidence that the model could work.
“Over the years PPC Botswana has empowered a number of local community projects across the country, giving them a boost to be fully operational businesses that have created employment in their communities.
“In our industry local cement manufacturers are looking towards maximising local raw materials such as fly ash from Morupule, to improve value chain. If imported cement is cut off, we will see a huge increase of employment in our country”.