Privatization of state owned enterprises in Botswana : a case of Air Botswana

Abstract

This study assesses the level of knowledge about and attitudes towards privatization among stakeholders in the privatization of Air Botswana. Utilizing self-administered questionnaires, data were collected from a sample of 50 respondents drawn from Air Botswana, the Botswana National Productivity Centre and the Ministry of Works and Transport. Those interviewed for the study were selected utilizing snowball sampling, a non-probability sampling method. Supplementary data were also collected through informal interviews with four key informants. The data were analyzed utilizing the SPSS-PC quantitative data analysis software. The data presentation relied heavily on descriptive statistics; that is, frequency distributions, percentages and means. The results showed that those interviewed for the study were characterized by high levels of knowledge and understanding about privatization and displayed a positive attitude towards the process. They supported the process as a whole as well as its application to Botswana in general and to Air Botswana in particular. According to them, privatization was necessary ' to improve service delivery', ' to reduce government involvement in industry and commerce', and 'to make economies more competitive' . Nevertheless, the interviewees were concerned that privatization could lead to loss of jobs. Concerning the privatization of Air Botswana, the results revealed that factors such the withdrawal of Com Air as a potential buyer, lack of adequate strategic partners, and lack of management and government commitment, were responsible for the failed privatization of the airline. However, there was strong support for and commitment to the revival of the privatization of corporation from the government and other stakeholders. It was concluded that there exists a high level of knowledge about and understanding of privatization and that Batswana have a positive attitude towards the process. Concerning Air Botswana in particular, it was concluded that conditions are ripe for the revival and

successful conclusion of the airline's privatization. All stakeholders had a positive attitude towards, overwhelmingly endorsed, and were very committed to the privatization of the company. In addition, it was felt that Air Botswana should remain sensitive to emerging challenges that are facing the aviation industry in general including the 'open sky' policy and increases in fuel prices. The study recommended that, given the current good will among stakeholders, the revived privatization of Air Botswana should be fast track and expedited the without further delays.