Economists in Botswana are advocating for a significant shift in how the government manages state-owned enterprises (SOEs). The core message emphasizes accountability and financial performance.
The Profitability Imperative
Local think tank Econsult Botswana has urged the government to enforce a strict mandate for SOEs: to operate efficiently and generate profits. This perspective underlines the idea that public enterprises, like their private counterparts, should contribute financially rather than rely on continuous subsidies.
The Privatization vs. Closure Debate
When SOEs consistently fail to meet profitability targets, Econsult Botswana suggests two main courses of action: privatization or closure. This applies notably to entities such as the Botswana Meat Commission (BMC) and Air Botswana. The argument posits that if these enterprises cannot stand on their own financially, their continued operation as state entities warrants re-evaluation.
Focusing on Key Examples
The economists have specifically highlighted the BMC and Air Botswana as examples of SOEs that could benefit from this renewed focus on financial viability. Both entities have faced ongoing discussions regarding their operational models and financial sustainability.
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