Growing private sector - Participation in the economy
PEEPA is also driving other initiatives such PPPs and Organizational rationalization
Background to Public Private Partnerships (PPPs)
The Privatization Master plan, approved by Government in March, 2005, sets out the implementation strategy for privatization. It also provides process guidelines for different methods of privatization; gives guidance for sequencing of work plans and clarifies institutional roles and responsibilities.
Privatization in Botswana is broadly defined to include introducing all forms of private sector participation (PSP). The 2000 Privatization Policy (para 46) considers PPP’s as a method of introducing PSP in the provision of infrastructure and services. In the National Development Plan 9 the Government of Botswana states its commitment to the implementation of infrastructure projects using PPP’s, as a procurement strategy. Further to this is Government’s commitment through the Presidential Directive (CAB 1/2004) to implement office accommodation projects through the PPP method.
PEEPA’s department for Privatization/Divestiture has been involved in facilitating Governments PPPs initiatives. Past role in this regard was to:
- Assisting in defining scope and procurement of transaction advisory services
- Providing support and advice during the implementation of PPP projects.
- Assisting Ministries in capacity building initiatives related to implementation of PPP projects.
Public Enterprises Rationalization
Rationalization involves interventions and initiatives designed to optimize the utilization of resources
Commercialization means managing the activities of Government departments and agencies in a businesslike manner
This may take the form of:
- A Complete merger
- An Umbrella organization
- A Collaboration and sharing common facilities and services
Given that the private sector in Botswana has now reached a more developed stage Government is focusing on the reform of the public enterprises sector using a two pronged approach:-
- Restructuring and divesting privatization of public enterprises that are commercial in nature and are both feasible and desirable to privatize;
- Rationalization and commercialization of those Parastatals and public entities that are neither feasible nor desirable to privatize.
Following the 2006 Rationalization Strategy prepared by PEEPA and reviewed in 2009, Government took a decision to rationalize certain parastatals that were considered to have related and/or overlapping mandates, competing client base and/or programmes. The primary goal of rationalization was to improve public sector service delivery through the synergies that would be derived from the rationalization. It also sought to reduce the cost to Government through better alignment of service delivery by ensuring a co-ordinated and harmonized use of resources and facilities. The following Public Enterprises were identified as candidates for rationalization.
- Merger of BOTEC and RIPCO
- Merger of BEDIA and IFSC (completed in March 2012).
- Merger of BSB and Botswana Post
It was also recommended that to align corresponding mandates CEDA, IFSC should be transferred from the Ministry of Finance and Development Planning to the Ministry of Trade and Industry where related and complimentary originations such as LEA are housed.
The sector Ministries are responsible for implementing the merger of the public enterprises, as indicated in the table below:
Responsible Sector Ministry
Merger of BOTEC and RIPCO
Ministry of Infrastructure Science and Technology (MIST)
Merger of BEDIA and IFSC
Ministry of Trade and Industry (MTI)
Merger of BSB and BP
Ministry of Transport and Communications (MTC)