Segokgo: ‘PAY UNEMPLOYMENT ALLOWANCE

 A near stampede at Molepolole Sports Complex on Wednesday morning, where thousands of job seekers had spent the night, has brought into sharp focus the gravity of unemployment and the desperation among many job seekers in Botswana. Responding to a job advertisement for six (6) waste collectors by the Kweneng District Council (KDC), a capacity crowd filled the 15000- seater stadium painting a glaring picture of the masses roaming the streets in search of jobs. 

An ongoing Kweneng District full Council meeting had to be abandoned midway to enable Councilors to rush to the stadium to manage a chaotic situation that was gradually deteriorating into a life-threatening situation.

“We learnt that the selection will take the form of raffle or a toss where applicants queue to pick a yes or no from a box. So, we have been here since around 0400hrs to be at the front of the line to try our luck,” said a young man named Thabo Ntimane, who claims to have graduated with an associate degree from Limkokwing University four years ago but has never found employment. Although law enforcement officers eventually managed to bring the situation under control, abandoning the selection of applicants for the menial jobs, many young people Ntimane’s age were still milling around the stadium late in the afternoon hoping lady luck could smile their way, but it was not to be! 

As fate would have it, on the same day – some 50 kilometres away in Parliament Tlokweng MP Phenyo Segokgo was presenting a compelling case pleading with the Umbrella for Democratic Change (UDC) government to adopt paying an unemployment allowance to help boost the economy. 

Responding to the budget speech, Segokgo asked the Minister of Finance, Ndaba Gaolathe to consider introducing an unemployment stipend for the unemployed youth to empower many people with some purchasing power. 

Segokgo’s proposal comes soon after the UDC administration has presented its maiden budget, with the youth hoping for a turnaround in their fortunes. The proposal has sparked mixed reactions from experts over its possible impact on the already struggling economy. 

According to the World Bank, Botswana’s youth unemployment rate stood at 27.6% in Q1 2024, a staggering figure that exacerbates poverty and inequality, with households in serious economic turmoil. 

Productivity 

Responding to the proposal, an independent economist, and financial markets researcher Dr. Mosimane Rammika said government may not see the need to over burden itself with a transaction that doesn’t come with productivity. He said as it is with social responsibility, government is working on full employment through diversification of industries and expanding revenue streams. 

Dr Rammika said new social interventions such as sanitary pads, maternity allowance, old age pension etc. are already straining government coffers. “This calls for speedy implementation of economic revitalization as said by them president and VP. Government may opt for other stipend-based projects rather than direct unemployment allowance, But an allowance may be implemented in the road to full employment when economic recovery improves. The issue may also cause a lot of problems on the eligibility side. Currently, the P4 000 living wage is not viable as its implications are challenging, such as raising minimum qualifications for job applicants,” said Dr Rammika. 

Stimulating demand 

Another economist, Dr Lovemore Taonezvi – economics lecturer at BA ISAGO University – believes an unemployment allowance could provide some short-term relief by increasing household spending and stimulating demand. 

However, he said the bigger question is whether Botswana can afford it without worsening an already concerning budget deficit of P22.12 billion (7.56% of GDP) as stated in the recent Budget Speech. Dr Taonezvi said the fact that even the P4, 000 living wage is proving difficult to implement suggests that financing such a policy would be a serious challenge. “While direct cash transfers can boost economic activity, I see a greater risk in long-term fiscal sustainability if we don’t have a clear funding strategy. Personally, I think a more effective approach would be investing in job creation programmes, skills development, and stronger public-private partnerships to address the real issue — structural unemployment,” he said. 

He added: “Instead of state dependency, we should be expanding our tax base, improving revenue collection, and driving economic diversification to create sustainable, productive employment. That, to me, is a better long-term solution.” 

POLITICAL PARTIES 

BNFYL 

Meanwhile, Secretary General of Botswana National Front (BNF) Youth League, Tumelo Legase said they agree with the proposal by Segokgo, saying it is a necessity that if funds permit, the unemployed and job seeking Batswana particularly young people may be given a stipend. 

Legase said the support is importance because even the exercise of seeking employment demands money i.e. to travel, to prepare for interviews and so many other things entailed in that journey. “In our view, the introduction of unemployment allowance is not to say government has given up on job creation but as we gradually create jobs and absorb our people into those jobs, we must make sure that they are all supported,” said Legase. 

BDP NYEC 

Chairperson of Botswana Democratic Party (BDP) National Youth Executive Committee (NYEC), Bokamoso Modibedi firmly believes that such a proposal is not the solution that Botswana youth need. She said relying solely on unemployment allowances to stimulate the economy and support the youth is short-sighted and could lead to increased dependency on the government. 

“It is evident that the UDC has no concrete plans in place to effectively reduce unemployment or create sustainable job opportunities for the youth. Instead of focusing on temporary solutions like unemployment allowances, we should prioritize initiatives that foster skills development, entrepreneurship, and economic growth. By empowering our youth with the necessary tools and resources to create their own opportunities, we can build a more robust and self-reliant economy,” she said. 

In addition, Modibedi urged the government and all stakeholders to invest in long-term strategies that promote job creation, innovation and economic diversity. 

This, she said, could be achieved by encouraging a culture of entrepreneurship, investing in education and skills training and creating a conducive business environment, it can help the youth thrive and contribute positively to the economy.