Africa-Press – Botswana. Public Enterprises Evaluation and Privatisation Agency (PEEPA) is in the process of developing a state-owned enterprises policy for government.
Minister of Entrepreneurship, Mr Karabo Gare, answering on behalf of Minister of Finance, said the policy intended to put measures in place that would articulate shareholder’s expectations on the role of state- owned enterprises in the development of the country as well as ensure active ownership of the enterprises by government.
He said the agency had made notable achievements since its establishment and that it had contributed to the establishment of regulatory bodies for different sectors, including the liberalisation of the telecommunications industry, which birthed Botswana Telecommunications Authority, now Botswana Communications Regulatory Authority.
He highlighted that PEEPA had been instrumental in crafting the rationalisation strategy I and its successful implementation through the rationalisation of entities and creating a merger between Botswana Technology Centre and the Rural Industries Promotions Company to become Botswana Institute for Technology Research and Innovation.
Mr Gare also noted the merging of Botswana Export Development and Investment Authority and the International Financial Services Centre to form Botswana Investment and Trade Centre.
In addition, he said PEEPA was coordinating the implementation of the rationalisation strategy II which was launched in March 2022.
He said the strategy was aimed at privatisation, streamlining, merging or terminating activities of various entities due to inefficiencies and duplication of work as well as to privatise some.
On other successes, he said PEEPA delivered the BTCL divestiture which held the biggest divestiture in Botswana with an over subscription of 60 per cent.
He added that the track record had seen sectors such as telecommunications and ICT grow many folds after liberalisation starting with the introduction of Vista, which was now Orange and Mascom Wireless. He said service industries such as cleaning and security had also grown significantly since government outsourced the services to the private sector.
Minister Gare emphasised that PEEPA continued to implement the privatisation policy to increase private sector participation in the economy as well as to put measures in place to improve the corporate governance of parastatals, adding that the agency had managed to improve service delivery through outsourcing processes.
To date, he said it had developed strategies for enhancing private sector participation such as the public services outsourcing programme; outsourcing strategy for ministry of health; integrated facilities management strategy for managing the upkeep of all government buildings by contracting the private sector, and a waste management outsourcing strategy for collection of refuse.
Mr Gare added that through direct involvement of PEEPA, government successfully outsourced cleaning services, security services and gardening services.
Furthermore, he said PEEPA had also been instrumental in the corporate governance landscape of parastatals through the development and implementation of the corporate governance framework.
The framework, he said, comprised a transparent merit-based board selection process, board charter, evaluation of board of director’s performance, shareholder compact and performance monitoring of parastatals.
He emphasised that the agency had made a positive contribution to the advancement of Botswana’s economy, and that they still had a key role in the growth and participation of the private sector in economic growth and that it was still playing the role well.
Minister Gare also noted that PEEPA was a company established through the privatisation policy whose primary objective was to advise government on privatisation strategies as well as facilitate implementation of privatisation which included commercialisation, restructuring, outsourcing and divestiture interventions for the effectiveness and efficiency of public enterprises and ministries.
The agency, he said, was also responsible for the promotion of good corporate governance in public enterprises with respect to offering advice on privatisation and developing strategies and implementation plans for cabinet’s approval.
He also added that it was mandated to implement cabinet decisions on the privatisation of entities or services, manage roll-out of government’s outsourcing programme, undertake sector reform studies linked to privatisation, assist government in setting performance targets and advise government on the appointment of directors to serve on boards and monitor their performance.
Serowe South MP, Mr Leepetswe Lesedi had asked the Minister of Finance the role of PEEPA and why it was established as well as its achievements since it was established.
He also wanted to know which state enterprises had been successfully privatised through the agency as well as their contribution to economic and fiscal intercessions.
For More News And Analysis About Botswana Follow Africa-Press
