GABORONE - Batswana have been reassured that government's policy of privatising some of the public institutions will not place the country's economy in jeopardy. In an interview, the chief executive officer of the Public Enterprises Evaluation and Privatisation Agency (PEEPA), Mr Kgotla Ramaphane said the government is committed to diversifying the economy away from mining. Mr Ramaphane stated that the government is not a business entity and that it has to ensure that it relinquishes some of the services to the private sector to guarantee the sector's growth.

PEEPA's mandate includes the implementation of privatisation and ensuring a single point of accountability for delivery of privatisation transactions. In the 2011/12 budget speech, it is stated that "efficiency and effectiveness of some of the parastatals have been a subject of discussion for some time. This has prompted government to initiate privatisation processes targeting some parastatals." Mr Ramaphane said the government has decided to centralise the responsibility for the implementation of the privatisation programme to PEEPA though the organisation will only implement recommended transactions approved by the legislature.

He explained that government has approved the privatisation of BTC by committing to sell up to 49 per cent of its shares to Batswana, as an initial public offering on the Botswana Stock Exchange (BSE), while retaining the remaining 51 per cent. He said the process of implementing the decision is ongoing, and PEEPA will ensure that BTC transactions benefit ordinary Batswana. Mr Ramaphane said the organisation will not entertain people who will front for big organisations or foreign interests since BTC shares are strictly geared for the benefit of Batswana.

Mr Ramaphane said they are grateful that government has approved some "of our recommendations concerning improvement of efficiency and effectiveness of parastatals" and has also approved a strategy for rationalisation of certain public enterprises such as Botswana Postal Services, the Botswana Savings Bank, the Botswana Technology Centre and the Rural Industries Promotions Company as well as the Botswana Export Development and Investment Authority and the International Financial Services Centre.

Mr Ramaphane said it takes time to privatise institutions because the government has to consider the pros and cons of such efforts as well as to how the economy will benefit or lose out in the process. He added that the government wants to ensure Batswana are not manipulated hence they have to set up rules and regulations of how privatised institutions will be configured. He stated that government also wants to ensure that there is citizen ownership of the national assets. (Source BOPA)