Debswana’s flagship initiative, Citizen Economic Empowerment Programme (CEEP) meant to empower citizen entrepreneurs to contribute and participate in the diversification of the economy is threatened by citizen owned companies fronting for non-citizen entities.
This was revealed by the mining giant’s Managing Director Andrew Motsomi at the just ended National Business Conference which was held in Francistown.
“Instances of potential fronting by citizen entities, which includes seeding and delegating contracts without Debswana’s consent have come to light quite recently and generally a noticeable and predominant phenomenon across the economy. Batswana tend to pursue rich seeking instead of long term investment as entrepreneurs. Debswana is confronting the same challenge.”
Another challenge Motsomi pointed out is the over reliance on Debswana by local companies. He called for the private sector to invest in value chain development, to ensure sustainable businesses.
“Despite the success of CEEP, we acknowledge emerging challenges we face with respect to this programme. Such as sustainability of Debswana’s suppliers primarily their over reliance on Debswana as a sole customer. This calls for private sector to invest in value chain development to ensure sustainable businesses and potentially greater value addition,” he highlighted.
The local enterprises which have grown alongside Debswana over the years range from mining services, logistics and catering. Apart from flourishing, the citizen owned companies have only created jobs and contributed to the resilience and diversification of the economy.
Motsomi emphasised the importance of local business entities as vital links in the value chain, and their growth strengthened Botswana’s position in the regional market. He further said Debswana is not only a vital partner in the country’s development but has contributed to Botswana’s transformation, and will continue to drive progress in the coming years.
“I had an opportunity recently to meet with the President of the Botswana Mine workers Union (BMWU) and he did bring up the point that some our suppliers are not abiding by the rules and regulations stipulated in the labour laws and also in our contracts with them,” continued Motsomi.
“These are clearly key concerns, which we should acknowledge and confront these companies to ensure that what is a great programme should be able to deliver good results overall and holistically.”
Concerning the future and to sustainable economic growth Debswana firmly believes in the development of value chains to enhance the company’s export capabilities.
“We are all aware Botswana is richly endowed in mineral resources. But to truly harness and extract the potential of these resources, we must focus on value addition. At Debswana we have long understood the importance of moving beyond resource extraction. Our commitment to diamond beneficiation process exemplifies how value chain can be added within our borders,” highlighted Motsomi.
