28 Aug 2024

The manufacturing sector has been identified as one of the key sectors that can assist in economic diversification and job creation.

Answering a question in Parliament on Monday, Assistant Minister of Trade and Industry, Honourable Beauty Manake said the ministry had measures in place to attract and support the growth of not only tobacco industries, but manufacturing industrials as a whole.

“There are incentives for manufacturing industries based on the geographical region where a company operates. As an example there are special dispensation for industries that set up in the Special

Economic Zones and the SPEDU Region,” Ms Manake said.

She added that manufacturers were required to adhere to quality standards in their production processes to ensure they were competitive and profitable both in the local and international markets.

“In order to ensure responsible manufacturing practices, before any business can be licensed, it is required to fulfil the health and environmental aspects. As the Ministry undertakes business inspections, should any anomaly be identified, it is reported to the relevant authorities for action,” she said.

Also, she said the retail liquor businesses were regulated under the Liquor Act, 2003 and its Regulations of 2008 while the Liquor Act, 2003 also established Liquor Control Authority for each district council.

She said the Liquor Control Authority met at least once a month and its functions include among others, issuance of liquor licences in accordance with the provisions of the Act, keeping a register of all licences issued and monitoring the operations of the licensed premises.

A control authority, she added had the power to suspend a licence in accordance with Section 22 of the Liquor Act, 2003, to allow licensee to take remedial action where they failed to conduct business in accordance with conditions attached to the licence or if the premises was in a state that posed a danger to public health.

Furthermore, she said, a control authority was empowered to revoke a licence, in accordance with Section 23 of the Liquor Act, 2003, where the licensee had failed to take remedial action, or for failure to produce proof of shareholding of 51 per cent citizens in joint ventures between citizens and non-citizens for the reserved activities.

“A person aggrieved by the liquor control authority’s decision may appeal in writing to the Regional Appeals Board within 30 days of notification of the decision of the Board, and may further appeal to the Minister of Trade and Industry if not satisfied by the decision of the Regional Appeals Board,” he said.

She also told Parliament that there were eight liquor licences under the Act which were renewed annually and included bar liquor, bottle store liquor, liquor depot, discotheque or night club, distributor liquor, club liquor, temporary liquor and wholesale liquor licence.

“Among these, four are reserved for citizens or companies wholly owned by citizens as a way of citizen economic empowerment and these are bar, bottle store, liquor depot and discotheque or night club,” she said.

Ms Manake said to obtain a liquor licence, businesses were required to submit, in line with Section 13, 14, 15 of the Liquor Act, 2003 read with Regulation 2, 6 and 7 of the Liquor

Regulations, 2008, proof of advertisement in the Botswana Government Gazette, DailyNews or any private newspaper to allow the public and relevant stakeholders to raise objections if necessary.

Businesses were also required to submit a completed application form with a non-refundable application fee of P100 save for the Liquor Depot which was P50, business or company registration documents, proof of availability of business premises, proof of zoning, environmental health report, valid identification document for directors or shareholders and licence fee, depending on the type of licence.

She further told Parliament that government developed National Alcohol Policy in 2010, which emphasised on a multi-sectoral approach to facilitate its implementation and collaborate towards the common goal of reducing alcohol related harm to society.

Notwithstanding, she said the ministry through the Liquor Act, 2003 came up with some regulatory measures to ensure responsible alcohol sales and consumption which comprised restriction on sale of liquor to persons under the age of 18 years, license not to permit drunkenness, right to exclude drunk person, limiting sale of alcohol through regulated times and prohibiting adulteration of alcoholic beverages.

Lastly, she said the ministry carried out regular business inspections to ensure compliance to the law and conducts regular workshops to educate the business communities and the general public about the Liquor Act, 2003 and its Regulations of 2008.

“Although the global tobacco industry is profitable, it also presents health risks to the society.

To this end, tobacco control law in Botswana has a committee that institutes a license to sell tobacco and any other tobacco products. The law prohibits smoking in public places, prohibits tobacco advertising promotion and sponsorship, mandates pictorial health warnings in tobacco product packaging and labelling,” she said.

Meanwhile, Assistant Minister Manake confirmed the existence of a tobacco company licensed in 2020 to manufacture cigarettes.

She said the company was operational and renewed its license annually.

“The current investment stands at P5 million with total employment of 26 being 20 citizens and six non-citizens,” she said.

She added that the licensed companies manufactured cigarettes and fragrance or flavours for cigarettes which they extracted from the natural plants such as fruits, coffee bean and tobacco leaf.

Prior to being licensed, she said companies were to adhere to some requirements so as not to compromise quality.

Such, she said included environmental health inspection for premises, indicating the technical know-how, both experience and professional or academic, and showing production process to indicate how each product would be produced in detail as well as storage of finished goods and disposal of waste.

Jwaneng/Mabutsane MP, Mr Mephato Reatile had asked the minister to state progress on the large-scale tobacco company licensed in October 2020, specifically regarding its projected investment of P10m and anticipated employment of 20 people.

Mr Reatile also asked the minister to state types of products or services produced by the two licensed tobacco companies in Gaborone and any relevant regulations or quality standards they must adhere to.

He also wanted to know measures or incentives in place to attract and support the growth of the tobacco and alcohol manufacturing industries in Botswana and how the ministry ensures responsible manufacturing practices including health and safety standards.

Again, he wanted to know the licensing process and requirements for retail liquor businesses including the different types of licenses and any specific criteria or regulations they must meet as well as measures or support the ministry provided to ensure responsible alcohol sales and consumption in Botswana especially with regard to public health and safety in light of the significant number of employees in the liquor retail businesses.

The MP also wanted to know the plans or initiatives to further develop and diversify the tobacco and alcohol manufacturing sectors in Botswana and how the ministry monitored the impact of such industries on the economy and society. ENDS