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The private sector has called on government to continue investing in development projects, which add value to small, micro and medium enterprises (SMME).In a statement released ahead of the 2010/11 budget speech, which will be presented in Parliament today, Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) says SMMEs, save for the stimulus package handed to the textile industry, are faced with uncertainties emanating from the economic environment they operate in. The umbrella body of the private sector says SMMEs are faced with numerous challenges among them limited access to finance.Financial institutions have hardly responded to SMME needs during the economic turmoil, BOCCIM says, calling for the government to introduce more stimulus packages to assist them. BOCCIM says CEDA and NDB must take the lead in providing more flexible and affordable loans to SMMEs instead of taking a business as usual approach while SMMEs are continuously faced with multiple challenges.

Reduction in interest rates has not really boosted SMMEs and consumer demand, because banks have remained resolute in risk management and are even more cautious on how they extend their credit, BOCCIM says.It says if CEDA and NDB take the lead in creating flexible longer payment options and reducing interest rates, the spill over effect may occur in other financial institutions. The delays of payments by government have a negative effect on SMMEs as it obscures operational processes and BOCCIM says it can halt business activities.BOCCIM called on government to continue with ongoing projects and carefully select new projects Private sector also has a role to lay by exercising strict cost and quality controls in executing projects to ensure delivery on time and on budgets. BOCCIM expects government to reduce public expenditure on luxury items and improve service delivery standards, reads the statement.This could be done if the government provides a blueprint for all projects planned for National Development Plan 10 as it would allow long term planning and proactive approach by the private sector, hence avoiding the inconvenience of impulsively responding to an annual basis to projects released during the financial year. BOCCIM says it expects government to accelerate privatization as it will help reduce the burden on the public sector.

Botswana is currently faced with high rates of unemployment especially among the youths and BOCCIM expects government to continue with internship and training programme, which has strengthened skills and encouraged youths to be more career competitive.BOCCIM has also called for the government to inject more funds into road safety measures as road accidents continue to be problematic.Commenting on information and communications technology, the organisation says it recognises and appreciates that e-governance plans are under way, such as the implementation of e-passports.However, it says a lot of work still needs to be done to meet international standards and ensure that the system does not only meet the needs of businesses but also of the general public. Substantial investment is required for the systems to support such an initiative such as hardware and innovative solutions. It is without doubt that sectors such as health, agriculture and finance, will benefit immensely with information technology integration, says BOCCIM.

BOCCIM expects education to continue to be a high priority for the public sector and with diversification in mind, expects the government to focus greatly on agriculture. It says it expects government to boost existing initiatives and introduce innovative strategies to commercialise the sector to ensure long term food security.It also called for increased funding for security forces saying it was especially crucial given the excitement emanating from the World Cup to be played in South Africa in June.Notwithstanding, issues such as health, HIV/AIDS, poverty alleviation, sanitation projects, water planning and development projects, should continue to remain high priority items on the budget for improved livelihoods, overall development and maintaining a progressive nation, says BOCCIM