Established in 2001, the Public Enterprise Evaluation and Privatisation Agency (PEEPA) has drafted a ‘Privatisation Master Plan’ and is conducting extensive diagnostic reviews of the performance of public enterprises. Efforts to secure the part-privatisation of the national airline Air Botswana – which presently operates regional hub and domestic flights – through a strategic partnership with another airline are currently underway.The government is keen for Botswana-based financial institutions, particularly the country’s commercial banks and insurance companies, to play a full role in the privatisation process by facilitating its implementation through lending and project financing.
The PEEPA Master Plan is a blueprint for divestment in some 30 state-owned enterprises or parastatals, based on full commercialisation, public-private partnerships (PPPs) and contracting out. The Master Plan is due to be formally approved by parliament and the cabinet during 2004 and will provide the basis for implementation of the different privatisation strategies. The use of the PPP approach is viewed as an important component, as it provides a means of sharing risks and enabling the public sector to harness the commercial dynamism, innovation and expertise of the private sector. It is anticipated that this concept will be applied to a wide and diverse range of public sector activities. In rural areas, the government is committed to the small-scale privatisation and outsourcing of activities and services that can be carried out more effectively by the private sector.
