Africa-Press – Botswana. Minister of Trade and Industry, Mr Tiroyaone Ntsima, has reiterated the government’s commitment to building a private-sector-led economy, citing this strategy as the primary reason for rejecting a motion to make Corporate Social Responsibility (CSR) a statutory requirement.
Speaking in response to the motion tabled by Tswapong South MP, Dr Kesetegile Gobotswang, Minister Ntsima explained that while government valued the role of CSR, it opposed making it a legal obligation.
He emphasised that government’s role was to create an enabling environment for businesses to thrive, rather than imposing further regulatory hurdles. “Let us not craft policies that will impact the very Motswana we are trying to empower,” the minister stated.
He argued that CSR should complement government efforts rather than replace them, noting that many companies had already successfully integrated social obligations into their business models voluntarily.
The minister, supported by some MPs, outlined why a statutory mandate would be detrimental to Botswana’s economic health. Minister Ntsima argued that mandatory CSR was essentially a hidden tax, adding that companies were already significant contributors through corporate tax, withholding tax and Pay As You Earn (PAYE) deducted from employees, alongside various licensing fees.
He added that within the Southern African Development Community (SADC) region, mandatory CSR was not a standard practice.
He warned that introducing it would make Botswana less attractive to Foreign Direct Investment compared to its neighbours.
He further indicated that because business profits were never guaranteed, a forced CSR mandate could cause local companies to struggle or fail during difficult financial periods. “Government believes that voluntary CSR encourages genuine innovation and additional investment, whereas a mandate might reduce these efforts to a mere compliance exercise,” Mr Ntsima said. Mmadinare MP, Mr Ketlhalefile Motshegwa and Mogoditshane West MP Galenawabo Lekau echoed the minister’s concerns.
Mr Motshegwa suggested that tax rebates and incentives, similar to those currently offered for sports sponsorship, were far more effective tools than over-regulation. Mr Lekau added that the motion was risky, particularly at a time when government was already considering an increase in corporate tax.
Supporters of the motion argued that a law was necessary to ensure equitable wealth distribution. MP Mabuse Pule of Kgatleng East argued that CSR was a matter of human rights.
MP for Maun East, Mr Goretetse Kekgonegile proposed that a statutory model would allow royalties to be paid directly to local communities.
He targeted large multinationals, arguing that some had reaped significant profits without ploughing back into the country. Similarly, Shashe West MP Jeremiah Frenzel argued that a law would ensure more equitable distribution, citing Lucara Diamond as an example of a company outperforming established giants like Debswana in community engagement despite fewer years in the country.
