4th May 2020
Sello Motseta
Despite a substantial war chest of over P2billion to curb hardship caused by a Government lockdown to help mitigate adverse effects of COVID-19 together with donations from private sector companies and individual Batswana the Permanent Secretaries of the Ministry of Investment, Trade and Industry, Transport and Communications as well as that of the Ministry of Finance and Economic Development have confessed that there are no specific plans to help those employed in the informal sector.
It rubbished earlier suggestions by Trade Minister Peggy Onkutlwile Serame that plans to address their plight was underway. Although Government has passed regulations making it illegal to evict tenants in arrears and improve access to soft loans as well as payment holidays these measures do not address fundamental issues like inadequate access to finance and unique challenges sector faces.
Keganele Malikongwa Permanent Secretary Ministry of Investment, Trade and Industry, acknowledged today in a press brief with the local media, “There are no plans for people in the informal sector.”
This follows calls by Civil Society Organisations(CSO) on Labour Day for protection of informal workers in Government COVID-19 strategies. They indicated that this constituency whose daily work and income keep households across from the country from falling into extreme poverty.
The introduction of the 28 day lockdown(2-30 April 2020) has left their families vulnerable to hunger and unemployment. The extension of the lockdown 1-7 May 2020 under the same conditions as the first, risks serious exacerbation of an already difficult situation for many.
Informal sector workers including domestic workers, farm workers, taxi drivers, hairdressers, artists, street vendors, car washers, piece job workers, , car park attendants, are not eligible for subsides from BURS and COVID-19 limited to those earning P1million in revenue a year.
They are not registered under any of the government social protection schemes(such as supplementary feeding for vulnerable groups, destitute programme, labour based drought relief and remain invisible to authorities despite various attempts to lobby their case with government officials.
Dimpho Motlhabi, an informal trader who has a small travel and tours company with a small team of 4 employees with 1 administrator and 3 drivers including himself is one of the roughly 170,000 informal traders completely forgotten by Government in their planning processes.
“Since mid March my business has not been operational. My drivers stopped coming to work at the end of March 2020. I therefore have had no revenue streams. I have received no food handouts and I am owing 2 months rental,” said Motlhabi who appears to be a frustrated and abandoned figure.
He said, “My landlord advised me on the 24/4/2020 he has already collected money from prospective client and has advised me to vacate his house.”
Motlhabi who lives in a 1 bedroom apartment in Tlokweng, Lesunyaneng ward near Mafitlhakgosi clinic subsequently approached Office of the President(OP) for guidance and was referred to the Tlokweng District Commissioners office. There he was advised that he could not be evicted because he does not have the appropriate permit to move around during lockdown period.
A survey by the Local Enterprise Authority(LEA) of 382 enterprises at end of March 2020 revealed 63% off businesses had suspended operations with a average reduction of monthly revenue of 47%. The 382 enterprises have 2669 employees with a total wage bill of P59 million.
The tourism sector which accounts for 27% of the jobs in the survey bore the brunt of the impact with a 72% revenue loss in March 2020 which put 729 jobs at risk.
37% of enterprises in operations had challenges of importing raw materials, reduced revenue due to COVID-19 related restrictions and inability to pay fixed costs like salaries, rentals, loans etc.
Professor Brothers Malema. Associate Professor at University of Botswana(UB) said, “Informal sector are often unregistered. They are adversely affected by COVID-19 and contribute significantly to employment in the economy. The key issue is logistical. You need to be able to identify them.”
He said, “Moving beyond COVID-19 Government needs to do much more to improve its databases and build an understanding of the nature of their businesses.”
Although Botswana is a diamond dependent economy mining only accounts for 5% of its workforce. To make matters worse the 2003-2013 country strategy shows poverty at 21% and unemployment for job seeking young people at 18%. These figures are likely to be much higher now.
To further compound matters 77% of informal traders are home based and continue to endure very stiff competition from South African based multinationals like OK Food, Pick N Pay, Shoprite, Payless, Spar, Score and Botswana based retail outlet Choppies in the food processing sector.
The bigger retail shops are able to charge lower prices because of greater economies of scale and access to better technology. In spite of these obvious advantages the Botswana Government saw fit to support them with soft loans and tax breaks whilst informal traders who are predominantly black indigenous Batswana are left to fend for themselves despite devastation visited on them by COVID-19.
