11/12/2025
๐๐ข๐ง๐ฆ๐ช๐๐ก๐ ๐ก๐๐ง๐๐ข๐ก๐๐ ๐๐ฆ๐ฆ๐๐ ๐๐๐ฌ
๐ข๐ฅ๐๐๐ฅ ๐ฃ๐๐ฃ๐๐ฅ (๐ง๐๐จ๐ฅ๐ฆ๐๐๐ฌ ๐ญ๐ญ๐ง๐ ๐๐๐๐๐ ๐๐๐ฅ, ๐ฎ๐ฌ๐ฎ๐ฑ)
๐ค๐จ๐๐ฆ๐ง๐๐ข๐ก & ๐๐ก๐ฆ๐ช๐๐ฅ
๐ค๐๐ฒ๐๐๐ถ๐ผ๐ป ๐ก๐ผ:(๐ฑ๐ฑ) ๐ฏ
๐๐๐ธ๐ฒ๐ฑ ๐ผ๐ป ๐๐: ๐ ๐ฅ. ๐. ๐ฆ๐๐๐ข๐ ๐๐ข, ๐ ๐ฃ. (๐ง๐ข๐ก๐ข๐ง๐):To ask the Minister of Local Government and Traditional Affairs to update this Honourable House on the smart switch company tender which feeds beneficiaries in the department of Social and Community Development; and to further state:
(๐ถ) when the tender was awarded and the reason for extension of the tender over the years;
(๐ถ๐ถ) if there is no other company or companies that qualifies for the same, if so, why they are not being engaged;
(๐ถ๐ถ๐ถ) the amount spent on smart switch company since inception of the tender; and
(๐ถ๐) his Ministryโs plan regarding this tender.
๐๐ก๐ฆ๐ช๐๐ฅ:
๐ ๐ฟ. ๐ฆ๐ฝ๐ฒ๐ฎ๐ธ๐ฒ๐ฟ, let me thank the Honourable Member for his question. I wish to provide the following update to this Honourable House regarding the SmartSwitch Botswana tender administered under the Department of Social and Community Development.
(๐ถ) The SmartSwitch Botswana tender was awarded and signed on ๐ฎ๐ด๐๐ต ๐๐๐ด๐๐๐, ๐ฎ๐ฌ๐ฌ๐ด (as a 3 year-contract) amounting to ๐ฃ๐ญ๐ฐ,๐ด๐ฑ๐ด,๐ด๐ฐ๐ฐ, following an open and competitive procurement process in accordance with the Public Procurement and Disposal of Public Assets regulations. The tender was extended multiple times primarily to ensure uninterrupted payments to vulnerable beneficiaries who rely on monthly assistance for their livelihoods. The Ministry made these extensions to largely because other companies were not competitive; the bidders quoted significantly higher charges compared to SmartSwitch Botswana who quoted a lower charge.
(๐ถ๐ถ) The Ministry acknowledges that other companies could offer similar services, but past procurement evaluations exposed major shortcomings. In 2014, an open tender was advertised and three bidders submitted. Unfortunately, some failed to meet essential technical requirements, their quotes were significantly higher, and lacked the nationwide coverage needed to reliably reach beneficiaries in remote areas.
(๐ถ๐ถ๐ถ) Since the inception of the contract in ๐๐๐ด๐๐๐ ๐ฎ๐ฌ๐ฌ๐ด, the Ministry has spent a total of approximately ๐ฃ๐ณ๐ฑ, ๐ฏ๐ณ๐ฌ, ๐ฏ๐ฏ๐ด.๐ฏ๐ฒ on services provided by SmartSwitch Botswana. The payment supports the end-to-end enablement of the smart card ecosystem, including beneficiary onboarding, transaction infrastructure deployment, and capacity building for retail partners to ensure seamless and secure benefit delivery.
(๐ถ๐) The Ministry extended the contract to the end of the financial year 2025/26 to avoid service disruptions for vulnerable groups. Next year, the Ministry plans to decentralise social protection procurement while upholding transparency and competition. The Ministry is reviewing the payment system as part of broader efforts to modernise social protection through technology, including a proposed shift from in-kind support to cash-based transfers to improve efficiency, dignity, and impact. This human-rights-based transition will increase beneficiary choice and ensure a smooth, uninterrupted handover to any new service provider.
๐ ๐ฟ. ๐ฆ๐ฝ๐ฒ๐ฎ๐ธ๐ฒ๐ฟ, let me reaffirm the Ministry's commitment to prudent use of public funds and to strengthening systems that serve our communities effectively and transparently.
I thank you ๐ ๐ฟ. ๐ฆ๐ฝ๐ฒ๐ฎ๐ธ๐ฒ๐ฟ.
