The Public Procurement Act of 2021, enacted in April 2022, introduced e-procurement to clean up debris left behind by its predecessor, the Public Procurement & Asset Disposal Act, under which accusations of cronyism marred the tender process. A transparent tendering process promotes Foreign Direct Investment, especially for infrastructure projects. The World Bank’s US$ 88 million Renewable Energy Support and US$ 145.5 million Water Security projects loved the clarity1, but centralization of power poisoned the well.
The new Public Procurement Act promised transparency, oversight, efficiency and value for money. It aligns with the United Nations Commission on International Trade Law Model Law (UNCITRAL Law) on public procurement. Interestingly, the Corruption Perceptions Index shows that from 2022 (about the time that the Public Procurement Act came into effect in 2022), there was a lowered perception of corruption in Botswana. There is a likelihood that the legal framework and the implementation of the Act could have contributed to that result.
The Act also solidifies the policy position on Citizen Empowerment. The Global Entrepreneurship Monitor has consistently shown that Small and Medium Enterprises (SME) significantly contribute to the economy. Globally, SMEs contribute over 99% to the economy. Most Botswana citizens own SMEs and thus a policy position enacted to empower citizens is likely to facilitate business and boost the economy if done right.
Theoretically, it appears that the legal framework facilitates the business and entrepreneurship in Botswana. Only time will tell if it will be properly implemented with appropriate oversight to deliver on what it intended.
[1] World Bank (2023). Botswana Renewable Energy Support & Water Security Projects.
