BMC liberalisation study nears completion
Isaac Pinielo | Wednesday September 20, 2017 12:39
The Botswana Meat Commission (BMC) has been the only entity in the country authorised to run an abattoir that exports beef to other countries. Apart from the study, Cabinet is also yet to conclude on the proposals of privatising BMC.
According to the permanent secretary in the Ministry of Agriculture, Boipolelo Khumomatlhare liberalisation is to focus on reforming the entire beef sector, whereas privatising BMC mainly focuses on the company itself and how it can be restructured.
“The two can be merged or even not, hence the wait in making sure that the study is concluded before decisions can be forged,” he said.
Khumomatlhare stated that the study, which is conducted by global audit firm, KPMG, commenced early this year and is expected to be completed in October.
The findings of the study are expected to inform government decision on whether or not the monopoly on the export of beef products, live cattle, should or should not be removed. It also seeks to allow other players in the beef industry to participate in the international beef market.
When addressing the Cabinet in March this year, assistant agric minister, Kgotla Autlwetse stated that BMC remains the only beef export state entity established according to an Act of Parliament, adding that any review of the BMC Act and by extent of the beef sector, should address itself to a thorough legal review process. “In view of the aforesaid, it is evident that the decision to abolish or maintain the legal framework is not a decision of the minister alone,” he said. He, however, said the minister can sanction on application, any private business to export only if they meet national regulatory standards and requirements.
Until recently, the government has been resisting calls by farmers to liberalise the beef industry.
Earlier on, the Botswana National Beef Producers Union (BNBPU) endorsed its support of privatisation of the BMC.
BNBPU president, Madongo Direng had indicated that the move was ideal only to the extent that ownership of the commercial abattoirs is placed in the hands of the producers.
“This should be through a national cooperative, in partnership with a private sector, to run the national abattoir on commercial lines,” Direng said. He stated that the equity partner should bring the requisite capital, technology and industry expertise, adding that any policy reform on the future of the industry and the BMC must be informed by the outcome of a liberalisation study and the regulatory reforms that are being undertaken by the ministry and BNBPU.