Africa-Press – Botswana. Minister of Entrepreneurship, Karabo Socraat Ntsima, has raised concerns over the growing practice of fronting in Botswana’s business sector, stating that it is stripping local enterprise of its authenticity and economic value. Speaking at the Botswana Exporters and Manufacturers Association (BEMA) High-Level Session held in Francistown, Ntsima said the issue has contributed to unfair market dominance and is undermining the spirit of true citizen empowerment.
“Fronting takes the flavor from the business,” Ntsima said. “The people we often complain about for dominating the market in Francistown are using Batswana trading licenses to operate businesses that are, in reality, not owned or run by citizens.”
The Minister’s remarks were met with strong reactions from attendees, many of whom have witnessed the challenges created by fronting. The practice typically involves foreign nationals using local citizens as figureheads to obtain trading licenses and operate businesses reserved for Batswana. While appearing compliant on paper, these businesses are often managed and controlled by non-citizens, allowing them to bypass regulations and gain an unfair competitive edge.
Ntsima emphasized that the government is committed to rooting out this practice, which he described as a serious threat to Botswana’s citizen empowerment initiatives. “We are reviewing policies and tightening enforcement to ensure that trading licenses are not just legal documents, but tools that truly empower Batswana,” he stated.
Francistown, as one of Botswana’s major commercial hubs, has been highlighted as a hotspot for market dominance by businesses engaged in fronting. Many local entrepreneurs have long voiced frustration over the difficulty of competing with businesses that appear to have better resources but operate under a veil of false compliance.
The Minister urged Batswana to play an active role in reporting cases of fronting and ensuring that the country’s economic growth benefits local communities. “We cannot build a sustainable economy if we allow fronting to erode the foundation of local enterprise,” he added.
BEMA’s High-Level Session brought together policymakers, manufacturers, exporters, and business leaders to discuss key issues affecting Botswana’s economic growth. Fronting, which has increasingly become a barrier for citizen-owned businesses, dominated discussions around fairness in trade and the need for stricter regulatory enforcement.
As Botswana intensifies its efforts to promote economic inclusion and sustainable growth, Ntsima’s call to action signals a tougher stance against business malpractice and a renewed focus on protecting genuine local entrepreneurs.
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