Botswana: Subsidies and loans for textile sector
Description
In response to greater import competition from East Asia and the global economic downturn in general, the Government of Botswana decided in January 2010 to introduce an employment-related subsidy and special loans for eligibile textile companies. From the government budget, half of the salary of each employee will be paid. Moreover, loans may be applied from the Citizen Entrepreneurial Development Agency (CEDA).
It was reported at the time that local textile manufacturers wanted a scheme of export-related credits, that could in turn be used to import textiles and yarn, to be continued. The fate of this scheme was not clear at the time of the 28 January 2010 announcement.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Don't know |
| Is there any evidence that alternatives to the proposed measure were considered? | Don't Know |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | Don't Know |
| Was such evidence identified? | Don't Know |
| Is such evidence publicly available? | Don't Know |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered: 10/06/2010
Implemented: Yes
Date of inception: 28 Jan 2010
Duration: 24 months
GTA Evaluation: Red
Source:
"Government strict on textile industry relief programme," Ministry of Trade and Industry, http://www.mti.gov.bw/index.php?view=article&catid=59:latest-news&id=239...
Further information about this package can be found in the following annoucement "Motowane advises businesses to use Special Support Fund package" on the same website (29 April 2010).
Government Response:
- 799 reads
