Botswana’s President Mokgweetsi Masisi is under pressure to unlock growth, investment and create jobs ahead of general elections slated for October this year.
When ascending to the highest office in the land in April 2018, Masisi promised to prioritize creation of jobs, especially for the youth.
But the President has been accused of “more talk and less action” on delivering his promises.
Masisi became the president when there was a strong call for inclusive economic growth.
Unlocking small and medium enterprises (SMEs)’ potential remains one of the best opportunities to achieve all of that, observers say.
In a move that will make it easier for Batswana to venture into domestic entrepreneurship as a way of beating unemployment in the country, Masisi’s administration has ensured that the last session of Parliament, before heading to the polls in October, passed a Bill that allows citizens to run some business from the comfort of their homes without licenses.
The move is also aimed at improving the ease of doing business.
“I want to share with you that among the Bills passed by the 11th Parliament is a Bill that allows you to run your small business from home without requiring a license. Soon I will sign this Bill into law,” Masisi announced last week.
Botswana is ranked 86th out of 190 economies in terms of its ease of doing business conditions, according to the latest World Bank annual ratings.
The country ranks sixth in Africa.
According to Masisi: “It is our serious intent to reduce excessive and unnecessary regulation of the economy to allow you to prosper. This is part of our improving the ease of doing business for Batswana.”
The country’s unemployment rate stood at 18.1 percent in 2017, a figure Masisi’s administration hopes to reduce.
It is understood that obtaining a business license has been one of stumbling blocks to the youth and small traders.
According to the Botswana Trade and Investment Centre, requirements for obtaining a license include the completion of forms and an accompanying covering letter outlining the proposed business operations in detail.
Trading licences vary in fees and duration and an annual payment of 25 percent of the licence fee is required.
Annual proof of compliance with health regulations and filing of annual returns are also required.
While the move has been viewed by others as electioneering, it has been welcomed with enthusiasm by the youth.
Gaborone resident Ogaufi Mohumanegi commended Masisi’s administration for the initiative.
“Botswana has too many laws which stifle the economy. For a country with our high rate of unemployment, we should have long done away with most of this excessive bureaucracy; hopefully the move will spur the growth of the economy through artisanal and backyard manufacturing,” she said.
Another Gaborone young person, Moakodi Obuseng added: “I thank you so much Mr President for the move to free Batswana on investing on their own ideas without a problem.”
According to Obuseng, there are a lot of opportunities, including those involving the allocation of agricultural and industrial land.
“Law amendments are necessary for these industries for Batswana to venture into these business sectors.”
KO/jn/APA