The first barrier is the “no vacancy” poster at the gate. Then they have to try and go past managers who have no time for anyone with a CV that has no entry under the “job experience” column. In some cases, they find themselves up against private sector employers who simply turn up their noses at any job application with a Botswana O’ Mang identity card reference.
A series of “regret” letters later some finally land low paying jobs. Most Batswana young women, however, never make it that far and, in a good number of cases, neither do their male counterparts. In an 88 page report Tsa Badiri Consultants details the gauntlet that most young citizen university graduates run when trying to get a job or start a business in Botswana.
“There is anecdotal evidence that the unemployment rate among graduates is growing at an exponential rate, particularly among students who have been sponsored outside the country who have not been able to develop potential job opportunities while still at university”, observes the report.
The enterprising few who, immediately after graduating, think of trying their hand in business do not find it an easier. “Although CEDA has recently launched a scheme aimed at young people, this is restricted to the agricultural sector. By and large the entrepreneurial assistance schemes have tended to focus on older participants because young people do not have a track record of work or marketable skill which could be levered in business. This was certainly the case under FAP, where less than 10 percent of recipients under the scheme were less than 30 years. Unfortunately, with the notable exception of Junior Achievers, few organizations set out to promote entrepreneurship and assist business start ups targeting young people. Moreover, the standard educational curriculum does not offer sufficient opportunities for the development of business related skills and competencies.”
The consultancy on the development of a comprehensive citizen empowerment strategy points out that “the need to provide opportunities for young Batswana to enjoy income generating activities must be an urgent priority of any citizen empowerment strategy.”
Those who are lucky enough to land jobs or start businesses find themselves held back by their Botswana nationality in an economy that is biased against citizens. Most earn about 30 percent less than their expatriate counterparts doing the same job. However it is the women folks who are having the worst of it. “The unemployment rate for women – especially young women ÔÇô is much higher than men. Moreover, if women do manage to get work, it is likely that they will be paid less than men- particularly in the private sector where most of the growth in jobs is taking place. Most will end up in the sea of long faces who are always complaining about unqualified expatriates who are holding senior positions with no Batswana understudying them. A survey of local companies and corporations showed that 53 percent of the top level- General Manager, CEO Managing Director positions ÔÇô are held by non-citizens. The study further turned up information that the average basic pay of expatriates holding top management positions is 82 percent higher than that of Batswana holding similar positions.
Although the figures are shocking, they disguise worse differentials and are influenced by the facts that in the parastatal sector Batswana hold most management posts. This is not the case in other sectors: In tourism, less than 14 percent of the top management posts are held by Batswana. “A similar picture emerges in the construction sector where two thirds of the top level positions are held by non-citizens. Even at the second level of management non-citizens hold the majority of managerial positions,” the report stated.
A pattern emerges as you go to other sectors, like manufacturing, where “close to 60 of the top positions are held by non-citizens.”
“In addition to the dominant position within the managerial ranks, there are indicators that non-citizens continue to predominate in the professional category.” Out of the 67 fully qualified professional accountants registered with the Botswana Institute of Accountants the overwhelming majority (561) are non citizens. At the Fellow level, the differences are even more evident with only 29 of the registered Fellows being Batswana. The institute also registered 46 accountants as being partners ÔÇô of which only six are Batswana.
The bias for foreigners is also reflected in the country’s salary differentials: “On average, non-citizen employees earn almost three times more than Batswana. The average basic monthly pay accruing to non-citizens in March 2005 was P7163 while the average monthly basic pay of Batswana was P2, 508. The disparity is highest in the parastatal sector where, on average, a non-citizen earned P21 738 compared to a citizen at P6 708 (less than a third).
In the private sector, the average rate of pay for citizens is around a quarter of that paid to non-citizens. In March 2005, the average basic for citizens was P1, 765 compared to non citizens at 6,544. In central government the difference in pay between non-citizens and citizens is not so pronounced, but non-citizens are still paid, on average, just over double the rate for citizens.
Female non-citizens, on average, earn over 100 percent more than their citizen counterparts, the highest differential being in the private sector where a female non-citizen employee earns almost four times their citizen counterpart, followed by the parastatal sector at two and half times.
The report further states that, “it is doubtful that these very large differentials which vary across sectors can be wholly accounted for by the argument that most of the non-citizens will comprise professionals while the majority of citizen employees would be low skill workers. This argument also does not explain the large range of differentials between the various sectors particularly between the average earnings of citizen women employees and their non-citizen counterparts. The statistics, therefore, seem to confirm the widely held view that when it comes to pay, non citizens are substantially more favoured than citizens.”
The enterprising few who are lucky to start their own businesses find they have to scramble for crumbs while foreigners take home the real dough.
Although the report states that through its procurement strategies, government has the capacity to influence as much as 80 percent of economic activity, an analysis of companies awarded tenders by government through the PPADB shows that citizen owned companies got only 17 percent of the P1, 085 billion worth of government business between 2004 an 2006.
The consultancy points out that Citizen Economic Empowerment (CEE) strategies can address various objectives including the distribution of wealth. However, CEE is better served by accelerating wealth creation and economic growth through releasing the potential of citizens, and unlocking stranded assets that are currently being underutilized.
At macro economic level, the wealth of Botswana and significant economic activities are primarily in the hands of government and within the assets and activities of public entities. In addition, the 16. 6 percent government share of GDP, government directly, or indirectly dominates the utility sector, and is in transport and communications through Botswana Telecommunications Corporation, BotswanaPost, Botswana Railways and Air Botswana. It is also in mining as a major shareholder in Debswana and other mining ventures, and in manufacturing through BMC and the Botswana Development Corporation, as well as in tourism. Government is also involved in financial services through the NDB, CEDA, IFSC, BSE, BSB and Motor Vehicle Accident Fund among others. In effect, therefore, the share of government contribution in GDP is in excess of 50 percent.
The consultancy further points out that the concentration of government in the economy makes government the single largest source of economic disempowerment of Batswana.
Government is an unfair competitor with the private sector in that it uses public revenue to crowd out private sector participation.
The underperformance of public institutions, including the low return on assets in public enterprises, represents an underutilization of capital and human resources, and the failure to optimize resource allocation. The cumulative effect of these institutional inefficiencies, underperforming assets and sub optima resource allocation decisions are having a negative impact upon the economy and its ability to compete globally.
