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Speech by the MVA Fund Chief Executive Officer, Mr. Cross Kgosidiile on the impact of road crashes on the Economy at the Launch of the Month of Youth Against Road Accidents Gaborone Bus Terminal Tuesday, February 18, 2014 1|Page ……………………………………………………………………………… LIST OF GUESTS ………………………………………………………………………… GOOD MORNING TO YOU ALL. BAGAETSHO, it is a great pleasure for me to give the economic impact of road crashes on the economy on this occasion which marks the launch of the Month of Youth Against Road Accidents, an event spearheaded by Botswana National Youth Council and fully sponsored by the MVA Fund. With introductions and welcome remarks already made, I am delighted by the diversity of today’s audience. It clearly indicates the significance of this event. 2|Page In March 9, 2012, we witnessed the signing of a Memorandum of Understanding between the MVA Fund and Botswana National Youth Council thus initiating a partnership between the said entities. This partnership was necessitated by the fact that the youth are highly represented in road traffic crashes as drivers, passengers, riders, cyclists and pedestrians. In addition, the youth cause more casualties in road crashes than any other age group. To be precise, on average, 268 young people aged between 15 and 35 years are killed each year thus accounting for 55% of the fatalities. Further, 74 young drivers perish in road crashes each year while passengers and pedestrians account for 114 and 74 deaths respectively 3|Page Directors of Ceremonies, we have to bear in mind that the youth are the drivers of Botswana’s economy and their high prevalence in road crashes spells doom for our future. Furthermore, the Government of Botswana invests heavily in the young people by providing them with scholarships to develop them into future breadwinners. It is not uncommon for this effort to be frustrated by early termination of life or sustainance of disability injuries through road crashes. This results in the source of the entire investment in young people. As at 2012, Botswana’s Gross Domestic Product (GDP) stood at US$16.04 billion and it is estimated that road crashes cost low income and middle income economies 1-3% of the GDP. This translates into US$ 0.1604 – 0.4812 of the low and middle income economies. Therefore by rule of thumb 4|Page Botswana’s cost should be in the region of BWP1.3 – 3.8 billion. Regarding personal injuries, each year the Motor Vehicle Accident Fund pays in the region of BWP 100 million in medical costs, loss of support, loss of earnings, care-taker costs, and funeral costs. This clearly demonstrates the extent of resources which could have been used to address important national development agenda, but are diverted as a result of road crashes. This costs may easily double when we consider that the Fund only serves as a secondary insurer to road traffic victims. A significant part of medical expenses arising out of road crashes are paid for directly by the state through our public health care system. In the same vein, the socio-econmic impact of road crashes are also on the high side as road traffic crashes have a devastating emotional impact on the families and communities involved: every death 5|Page represents the loss of a father, wife, son, daughter, brother or sister. And there is an equally devastating economic impact: the sudden violence of a road death often robs a family of its only breadwinner. Road injuries can impose a life long cost of caring for severely disabled family members DIRECTOR OF CEREMONIES, we hope our partnership with BNYC will immensely improve Botswana’s traffic safety landscape and thus cushioning our economy. The statement of mutual benefit and interest of the MVA Fund / Botswana National Youth Council submit thus:The Botswana National Youth Council’s benefits from this MOU include collaboration with the MVA Fund to devise strategies aimed at reducing road crashes, identifying problem areas of mutual concern and to educate road users on matters pertaining to traffic safety. 6|Page The MVA Fund’s benefits will be contained in the “reduction in road crashes and claims lodged as a result thereof, while also resulting in speeding up the MVA Fund’s claims process.” Director Of Ceremonies, the statement on mutual benefit and interest further pronounces that:o in consultation with BNYC, identify the areas for educating the youth and members of the public on road safety in a bid to curb road crashes; o identify opportunities for co-operative work or mutually beneficial projects or activities whenever appropriate; o where appropriate, obtain input from BNYC on educational programmes or on the publication or distribution of any material regarding road crash and injury prevention or matters incidental thereto; and o assist in improving the level of awareness on traffic safety matters amongst the youth and to encourage safe and courteous road use, as well as responsible driving. 7|Page In our endeavors as a nation to bring about improvements in the traffic safety landscape, we must be aware that combating road crashes requires collective effort Therefore, our primary objective in the BNYC/MVA Fund relationship is to drastically reduce the road crashes and their result and effect in our society. A successful partnership enhances the impact and effectiveness of action through combined and more efficient use of resources; promotes innovation and is distinguished by strong commitment from each partner. As MVA Fund, we believe BNYC provides a great opportunity for us to tap from the innovative minds of the youth, thus developing road safety programmes that are more relevant to the current times. We have partnered with the youth we expect fresh ideas that will improve our current traffic safety situation. Their (young people) resourcefulness 8|Page and high levels of energy will accord us the opportunity to diversify our road safety strategies and hence improve our ability to reach out to this extended and diverse constituency. Through this partnership, our young people must develop the ability to work and participate in traffic safety activities as this will reduce their levels of prevalence in road crashes. The final results should be low prevalence of the youth in road crashes and an improved life expectancy for all. The youth will therefore play more meaningful role as further breadwinners and care-givers of the elderly. Thank you very much, everybody. God bless you. God bless Botswana. Thank you. Thank you. 9|Page