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Check FAQAbout Mbongeni
Mbongeni Mguni is a journalist with 16 years experience in business, economy and financial reporting, with 14 years of these spent at the level of senior reporter and above. I have worked and been published in Zambia, Zimbabwe, South Africa and Botswana with the last having been my home since 2004. I won the Botswana Business Reporter of the Year Award in 2010, 2011 and 2012 and specialise in capital and debt markets, macro-economy and its various sub-sectors, mining, energy and tourism, medium and micro enterprises as well as rural economy, trade, agriculture and climate change. My emerging interests is in data journalism which is shape reportage of these and other issues, such as climate change, in my part of the world. My reportage carries a bias towards research, analysis and long-form, although I regularly do short-form hard news and public relations copy. I am based in Gaborone, Botswana and am able to travel throughout the region at short notice.
Portfolio
Trade deficit persists in Jan
The trade deficit for January continues a negative trend for Botswana's economy, primarily due to underperforming diamond exports. De Beers and other diamond producers are looking to recover in 2023 after a challenging year marked by global economic weaknesses and reputational concerns from the Russia-Ukraine conflict. January saw a drop in diamond exports to P3.3 billion and an increase in imports to P7.6 billion, driven by higher imports of diamonds and vehicles. The annual trade balance for last year slumped to P9.9 billion, compared to a surplus of P2.6 billion in 2022.
Gov’t cuts off BERA funding
From September 1 last year, the Botswana Energy Regulatory Authority (BERA) introduced regulatory fees for fuel, electricity, and Liquefied Petroleum Gas (LPG) to cover its costs. Officials acknowledge these fees are ultimately borne by consumers but claim there has been no impact on final prices since their introduction.
Botala Energy plans solar manufacturing
Botala Energy has secured a Special Economic Zone licence for its Leupane Energy Hub and Industrial Park in Serowe, which provides significant taxation and tariff benefits. The company is focused on identifying partners and customers to grow its solar and energy business. The plant will include a solar panel manufacturing facility, a 700MW solar/gas hybrid plant, LNG facilities, and a mineral beneficiation plant. Botala Energy is listed on the Australian Securities Exchange and Botswana Stock Exchange and holds seven exploration licences in the Serowe area.
Wilderness confirms P1m deals at inaugural Suppliers’ Expo
At least 110 local suppliers gathered at Wilderness' offices in Maun for the inaugural Suppliers' Expo, which included participation from government departments, parastatals, and banks. OWS chair Kabelo Binns announced that contracts worth P1 million were arranged during the event, indicating its potential to unlock greater value for suppliers and their value chains.
Top economic events to watch for in 2024
The trade deficits for September and October last year, as reported by Statistics Botswana, show a collective shortfall of P10.1 billion, primarily due to a significant drop in diamond exports. The economy's main commodity faced challenges in 2023, impacting various fiscal metrics, but there are other promising economic events to watch in 2024.
BOCRA speaks on festive season Internet woes
BOCRA has not received any formal complaints about the quality of data services during the festive season. Consumers are advised to direct their complaints to their respective service providers first, and only unresolved issues should be escalated to BOCRA.
Pula’s downward crawl maintained at 1.51%
Botswana's Finance Ministry has decided to maintain the Pula's exchange rate policy, keeping the weighting at 55 percent Special Drawing Rights currencies and 45 percent South African rand. The Pula will continue to undergo a small, daily downward adjustment totaling 1.51% in 2024. This rate of crawl is intended to preserve the competitiveness of Botswana's producers against inflationary pressures, which are expected to exceed those of trading partner countries. The policy affects both exports and imports, influencing aggregate demand and the pricing of key commodities such as fuel, electricity, and diamonds.
In pursuit of the diamond deal
The article discusses the significant diamond deal between De Beers and the Government of Botswana, highlighting the importance of the story in the country's economy. Journalists have been closely following this development for years, emphasizing its historic nature.
Gov’t doubles Mmadinare solar contract to 120MW
The government has doubled the capacity of the Mmadinare solar power project from 60MW to 120MW. The project, located between Selebi-Phikwe and Mmadinare, is set to be completed by June 2024. A 25-year Power Purchase Agreement was signed in August 2022 between the government and Scatec, which will finance, develop, and operate the solar power station. The Botswana Power Corporation will purchase the generated power.
CoA brings sanity to DIS/DCEC long-standing feud
The Court of Appeal (CoA) has resolved a long-standing feud between the Directorate of Intelligence and Security (DIS) and the Directorate on Corruption and Economic Crime (DCEC). The decision follows a raid by DIS operatives on the office of former DCEC Director General Tymon Katlholo in early 2022. The CoA clarified that the DIS does not have the authority to supervise other security organs, providing a significant lesson to the DIS.
The missing links in regional electricity supply
Regional electricity connections in Southern Africa have slowed in recent years compared to the mid-20th century when significant interconnectivity was achieved. Historical records from the Southern African Power Pool highlight key milestones, including connections between the Democratic Republic of Congo and Zambia in the 1950s, and subsequent linkages involving Zimbabwe, Mozambique, South Africa, Botswana, eSwatini, and Namibia. These developments laid the groundwork for socio-economic growth in the region.
Govt’s big plans for a railway revolution
The Ministry of Transport and Communications in Botswana is advancing its railway projects to complement existing road infrastructure, aiming to boost economic growth both within the country and the region. This initiative marks the second stage of a broader infrastructure development plan, following the completion of major road networks. Molale highlights the strategic importance of these railways in supporting rapid economic development.
Ngwaketse West least electrified area
Ngwaketse West is the least electrified area in Botswana, with only 626 households connected to electricity and 3,739 using alternative methods for heating and lighting. In contrast, Orapa and Sowa boast 100% electricity connection rates, while Gaborone, Jwaneng, and the North East district have high rates of 94.3%, 91.2%, and 88.6%, respectively. Overall, 73.9% of households in Botswana are connected to electricity. Ngwaketse West is also among the country's poorest regions, with a 2015 study by Statistics Botswana finding that in the settlement of Kutuku, 100 out of 166 residents were classified as poor.
Africa’s needs overlooked at COP28
The recent climate talks in Dubai concluded with a deal on 'phasing down' unabated fossil fuels, a result that fell short of the 'phase out' goal advocated by African negotiators and climate activists. The push for more urgent climate action was strongly supported by protesters and campaigners, gaining significant momentum at the Expo City 2020 venue.
BoB expects lower bond yields as PFR 2 inflows strengthen
Under the revised Retirement Funds Act, local pension funds in Botswana must invest at least 50% of their assets domestically by December 2027, leading to P16.3 billion being repatriated from offshore as of August. This change, known as Pension Fund Rule 2 (PFR 2), previously required a 30% domestic investment. Lesego Moseki, director of BoB’s financial markets department, indicated that this repatriation would increase local market liquidity and help reduce the yields paid by the central bank on its capital market activities.
MDCB targets $1bn investment portfolio by 2028
MDCB aims to expand its investment portfolio to $1 billion by 2028, currently holding a P7 billion portfolio. The firm plans to acquire more assets to become Botswana's largest investor and a significant contributor to the government, with transactions ranging from one to two billion pula across various commodities and development stages.
Geingob ropes Masisi into SACU stand-off
Namibian President Hage Geingob has highlighted the issue of industrial imbalance within the Southern African Customs Union (SACU), pointing fingers at South Africa during a media briefing. This move brings Botswana's President Mokgweetsi Masisi into the ongoing regional economic discussions. Geingob, known for his blunt remarks, is set to retire in just over a year.
Chobe’s rebound exceeds pre-COVID levels
Chobe Holdings Limited, established 40 years ago, operates renowned safari brands Desert & Delta Safaris and Ker & Downey Botswana, along with The Booking Company and Safari Air. The group manages iconic lodges and camps in northwest Botswana, including Chobe Game Lodge and Savute Safari Lodge. In 2019, Chobe acquired Sedia Riverside Hotel in Maun, currently under renovation for a three-star rating. The group also diversifies northern Botswana's rural economy through Chobe Farms and Chobe Bream.
The long road to parastatal reforms
Botswana's economic direction is aligned with the advice and recommendations of entities like the World Bank, IMF, Bank of Botswana, and the Botswana Institute of Development Policy Analysis. The focus is on private-sector led growth and structural reforms to transition from a diamond-dependent economy and overcome the middle-income trap.
Lerala’s fate to be clear by Christmas
Lerala Mine in the Tswapong area, closed since May 2017 due to financial difficulties faced by its Australian owner Kimberly Diamonds, was acquired by Maroon Capital in 2020. The mine's future remains uncertain as production has not yet resumed under the new ownership led by Israeli investor Gilad Shabtai.
Yields fall as gov't raises P1.4bn debt
The central bank's recent auction on November 24 successfully raised P1.4 billion in government debt, marking the fourth consecutive successful auction. This contrasts with the previous period of under-allotment following the government's decision to double its domestic debt program in September 2020. Yields on treasury bills and bonds fell significantly, driven by increased market liquidity and changes in pension fund rules. Central bank officials noted a substantial rise in market liquidity, which has boosted demand for government bonds. Financial analysts from Kgori Capital highlighted that the decline in yields aligns with the increased demand, although they expect liquidity to stabilize as pension funds meet their local asset targets.
The trust deficit facing COP28
The upcoming COP28 in Dubai is expected to focus heavily on financing climate change adaptation and mitigation, with developing countries urging developed nations to fulfill their financial commitments. Despite contributing the least to climate change, poorer countries, especially in Africa, are suffering the most from its impacts.
Africa Lighthouse aims P500m kitty at renewables
Africa Lighthouse, an 11-year-old firm, secured a P500 million private equity mandate from the Botswana Public Officers Pension Fund (BPOPF) in 2018, investing half the capital in local entities such as the Funeral Services Group and the Minet Group. Private equity plays a crucial role in financing the economy and promoting economic diversification, especially given the limited representation of private enterprises on the Botswana Stock Exchange.
Grit lost P47m in Letlole exit
Grit sold its 70.3 million shares, representing 25.1% equity in Letlole la Rona, in four open market transactions on the Botswana Stock Exchange between January and June. Each transaction led to a decrease in LLR’s share price, from P3.48 to P2.50. Over the year to October, Letlole la Rona was the worst performer on the BSE’s Domestic Companies Index, shedding 25% in its share price.
Deep impact in the wilderness
The homegrown group Wilderness celebrated its 40th anniversary, emphasizing its sustainable impact on the community and country. The pioneers saw potential in the remote savannah, leading to significant achievements through non-extractive activities.
Infrastructure tops Masisi’s SONA promises
Botswana's Transitional National Development Plan includes P64 billion in spending plans up to March 2025 for strategic infrastructure, including three new interchanges in the capital city. President Masisi, in his State of the Nation Address, outlined substantial investments in transport infrastructure to connect communities and production areas, and link Botswana with regional countries. The new interchanges will be implemented under the Development Manager model, with over P13 billion to be spent in the next two years on at least 140 projects. Road projects for the financial year include Francistown-Nata, Nata-Pandamatenga, and others, with plans to approach the private sector for the dualisation of the A1 Highway. The government prioritizes investment in 'growth-enhancing' infrastructure and clearing the public projects backlog to support economic activity and boost social inclusion.
Debswana Sales Slow Down
Debswana's third-quarter sales of P8.4 billion are the lowest for that period since 2015, excluding 2020. Year-on-year sales dropped by 31%, according to the Bank of Botswana. The decline is attributed to a market glut from record sales last year and a shaky global economic outlook. The U.S., which makes up 54% of the diamond jewelry market, has seen demand pressures, exacerbated by the growth of synthetic diamonds. De Beers and the Okavango Diamond Company are adjusting their sales strategies to mitigate the oversupply and stabilize the market for the following year.
Moroka steps down as Absa chair
Moroka, who is also the CEO of De Beers Botswana, will step down as the chair of Absa Botswana and as an independent non-executive director on October 31. He joined the Absa Botswana board in July 2021 and will be succeeded by Cosmas Moapare, another independent non-executive director.
Trade deficit widens to P5.6bn
Figures from Statistics Botswana reveal a widening trade deficit, reaching P5.6 billion in October, with a significant revision of the September deficit to P4.5 billion. The deficits, the first recorded in 2023, are attributed to a sharp decline in diamond exports, which have dropped from P7.3 billion in March to P1.3 billion in October. The decline is linked to global economic weaknesses, a slower-than-expected recovery in China, and reputational concerns due to the Russia/Ukraine conflict. The trade balance, which was at a surplus of P1.6 billion at the end of the third quarter, has now sunk to a deficit of P4.1 billion for the year. Prolonged trade deficits are associated with the depletion of foreign reserves, currency weakening, and increased need for external debt.
Zambian firm to list $500m debt note on BSE
Botswana Stock Exchange (BSE) CEO Thapelo Tsheole announced at the Botswana Bond Market Association's roundtable that there is growing interest from neighboring countries, including Zambia, to raise capital in Botswana. This development is attributed to the successful market advancements made by the BSE.
End of an era for a reformist
Moses Pelaelo concluded his seven-year tenure as the governor of the Bank of Botswana with the economy experiencing benign inflation levels, a key indicator of his administration's focus on inflation control. His term was also characterized by a desire for reform, marking a departure from the 17-year governorship of his predecessor, Linah Mohohlo.
Bank of Botswana’s New Governor Extends Pause in First Meeting
Botswana's central bank, under new Governor Cornelius Dekop, maintained its key interest rate at 2.65% for the seventh consecutive time, citing expectations that inflation will stay within the target range of 3% to 6% in the medium term. Inflation rose to 3.2% in September due to higher fuel costs and is projected to reach 3.4% in October. The economy is forecasted to grow by 3.8% in 2023 and 4.4% in 2024, with potential inflation risks from international commodity prices, global supply constraints, and local price increases.
Botswana Oil makes its weight felt
Botswana Oil (BOL) has been granted the exclusive right to import 90% of Botswana's fuel starting April 1 next year. This policy will allow BOL to import nearly all of the 1.2 billion litres of fuel consumed annually in the country and resell it to retailers such as Engen, Total, Puma, and Caltex.
Banks slapped with fines for dirty money loopholes
Last year's fines imposed by the Bank of Botswana (BoB) on commercial banks for non-compliance were more than six times higher than those in 2021. The central bank's Banking Supervision Report for 2022 revealed that five out of nine commercial banks in the country violated various sections of the Banking Act and the Financial Intelligence Act. Violations included falling below the daily liquid asset ratio, providing incorrect information on credit facilities to directors, and granting unsecured loans to staff members exceeding their annual remuneration.
Airlink muscles further into local market
Airlink is prioritizing Botswana in its regional expansion, offering up to 50 return flights a week to key destinations like Gaborone, Maun, and Kasane. This move presents a significant challenge to Air Botswana, which has been struggling with operational issues. Airlink's CEO, Rodger Foster, highlighted the strong post-pandemic recovery in air travel demand to and from Botswana, which has already surpassed pre-COVID levels. The airline has also opened a dedicated office in Gaborone to enhance customer service.
Cream and the crop: The dairy question
Dr Wame Boitumelo, a veteran in the dairy sector and a well-published scholar, reminisces about a time before Botswana's Independence when the country was a net exporter of milk products, particularly cream.
The heavy cost of maintaining the 95-95-95
The UNAIDS' 95-95-95 targets, aimed at ending the AIDS epidemic by 2030, involve significant costs. These targets include ensuring that by 2025, 95% of people living with HIV know their status, 95% of diagnosed individuals are on antiretroviral therapy (ARVs), and 95% of those on ARVs achieve viral load suppression.
Gov’t bond issuance ceiling raised to P55bn
The government of Botswana has raised the ceiling for its domestic note issuance programme to P55 billion, up from P30 billion, to address budget deficits and support capital market development. The previous limit was reached in February, prompting the increase. Finance Minister Peggy Serame announced the change, highlighting the programme's role in raising debt through treasury bills and bonds.
Serame named Africa’s Finance Minister of the Year
The Banker magazine has named Serame as Africa’s Finance Minister of the Year, recognizing her efforts in stimulating growth and stabilizing Botswana's economy. Despite a dip in 2023, Botswana's economic growth is expected to rebound in 2024. Serame highlighted the importance of legislative and administrative reforms, export-led growth, foreign direct investment, and private sector support. Other finance ministers from Costa Rica, Vietnam, Switzerland, and Jordan were also awarded.
BMWU appeals Khoemacau judgement
The BMWU is appealing a court ruling that upheld Khoemacau's formula for calculating overtime, which includes an unpaid rest week. BMWU president Joseph Tsimako argues that this decision has significant negative implications for miners, who would be forced into long shifts without overtime pay. The Union plans to challenge the growing trend of 12-hour shifts in the mining industry, which they believe do not meet legal requirements for exceptional circumstances. Tsimako also suspects collusion between mining companies and the government in granting exemptions for these shifts.
Greedy contractors inundated ministry’s headquarters – Molale
Transport and Public Works Minister Eric Molale revealed that while evaluators were secluded to ensure an unbiased evaluation process, contractors persistently visited the ministry's headquarters in Gaborone attempting to locate them. Molale questioned the motives behind these attempts, suggesting potential interference in the evaluation process.
Absa lists BSE’s first green bond programme
Absa Bank Botswana has listed the first green bond programme on the Botswana Stock Exchange (BSE), which is seen as a triumph for the BSE. The BSE has been promoting sustainability issuances and offered a discount on listing fees for such issuers last year. Absa can now issue bonds up to P2 billion for financing environmental or social impact projects.
Crumbling South African Rail Prompts Botswana to Forge New Route
Botswana is considering investor bids to build a 1,500-kilometer rail line to a Namibian port, bypassing South Africa's deteriorating logistics network. The Trans-Kalahari Railway project aims to mitigate the impact of South Africa's struggling Transnet SOC Ltd., which has caused significant delays and economic contraction. The new route could benefit companies in South Africa and support Botswana's exports, particularly from the Kalahari Copperbelt. The project, initially agreed upon in 2010, is gaining momentum with construction expected to start in January 2025.
Govt formalises deal with De Beers
The Botswana government and De Beers have formalized a deal that transitions from an agreement in principle to heads of terms, marking a significant milestone in their partnership. The deal allows Botswana's Okavango Diamond Company to purchase and market 30% of Debswana's output, increasing to 50% over ten years. A multi-billion pula Diamonds for Development Fund will be established, with De Beers contributing up to P10 billion over the next decade. The agreement also includes the creation of a Talent Council for downstream diamond skills and extends De Beers' sales arrangement and mining leases in Botswana.
Court awards botched surgery patient P800K
A court awarded P800,000 to a patient who suffered harm due to a botched surgery performed by Dr. Anthony Sibiya at Gaborone Private Hospital. Justice Michael Leburu ruled that Sibiya's wrongful and negligent conduct was responsible for the patient's suffering.
Lucara exit throws HB, gov’t deal in limbo
Lucara terminated its deal with HB Antwerp due to a material breach of financial commitments by HB. This development comes amid internal disputes among HB's founding shareholders. Botswana's government, which had announced plans to purchase a 24% stake in HB to gain a foothold in the diamond value chain, has adopted a non-committal stance following the termination.
Serame tests appetite for hard currency bond
Governments issue foreign currency bonds to raise debt from global investors, offering protection against inflation and potentially lower borrowing costs for countries with high sovereign credit ratings like Botswana. The Finance ministry announced that Serame and her team would conduct an investor roadshow during the International Monetary Fund and World Bank annual meetings in Morocco.
Gov't engages banks to help citizens enter mining, energy
The government of Botswana is engaging banks to help citizen entrepreneurs enter the mining and energy sectors by addressing risk-sharing issues. Minister Moagi announced that the government is prepared to offer letters of support to banks instead of sovereign guarantees, promoting a partnership approach. He also encouraged entrepreneurs to research opportunities in these sectors. The revised Mines and Minerals Act, expected to be presented to Parliament, is anticipated to enhance citizen participation in mining and energy.
BTCL ropes in Pheko
Pheko, a former CEO of the Botswana Communications Regulatory Authority (BOCRA) and its predecessor, the Botswana Telecommunications Authority (BTA), has been appointed interim chair of BTCL, replacing Boakgomo-Ntakhwana. Pheko has been a non-executive director at BTCL since 2018. Additionally, Maclean Letshwiti, a prominent businessman, has left the BTCL board after serving as a non-executive director for seven years.
Lucara execs leave, HB founder returns
Lucara's new CEO, William Lamb, announced the termination of a 10-year agreement with HB Antwerp, which involved the Belgian firm buying, polishing, and selling Lucara's rough diamonds. HB Antwerp has reconciled with co-director Oded Mansori, who was ousted last month. De Beers has signed a firm deal with the Botswana government for 25-year mining leases and a 10-year agreement to sell diamonds from the Debswana mines.
Budget in Q1 surplus but FY deficit still looms
The Ministry of Finance reports a P5.2 billion surplus in the first quarter of the 2023-24 financial year, driven by Southern African Customs Union receipts and mineral revenues. This compares favorably to previous years' figures. Revenues reached P24.4 billion, with taxes contributing P16.3 billion, while expenditures were P19.2 billion, primarily on public service wages and grants. Despite the surplus, a fiscal year deficit is anticipated due to increased spending under the Transitional National Development Plan and a projected decline in mineral revenues.
Diamond slump causes P3 billion trade deficit
Diamond exports in Botswana fell sharply to P2.4 billion in September from P6.2 billion in August, leading to a P2.6 billion trade deficit for the third quarter. The decline is attributed to global economic weaknesses, a slower-than-expected recovery in China, and reputational concerns due to the Russia/Ukraine conflict. Despite the downturn in diamonds, copper exports have performed well, reaching P4.8 billion by the third quarter, bolstered by increased production at Khoemacau and the commissioning of Sandfire’s Motheo Mine.
De Beers stores diamonds due to low prices
De Beers plans to retain a stockpile of unsold diamonds in response to plummeting prices, allowing buyers to refuse contractual purchases. CEO Al Cook expressed confidence in future price increases and demand growth. The diamond industry, which thrived during the pandemic, now faces declining demand and excess inventory. The U.S. market is under inflationary pressure, while China's real estate crisis has dampened consumer confidence. Additionally, lab-grown diamonds are gaining market share. De Beers' decision follows similar moves by Alrosa PJSC and the Indian market to halt sales and imports, respectively.
BoB hands Christmas gift to borrowers
The central bank of Botswana reduced interest rates by 25 basis points from 2.65 to 2.4 percent, benefiting borrowers with variable rate loans and new loan applicants. This decision follows an updated inflation forecast predicting lower prices, allowing for reduced borrowing costs and support for economic activity.
Diamond crunch raises new, scary questions
Rough diamond sales, prices, and revenues have significantly declined this year, prompting the Finance Ministry to consider revising the growth forecast and increasing the expected budget deficit. The crisis, affecting rough producers like Botswana, is attributed to high inventory levels of polished diamonds in the midstream sector, which includes cutters and polishers.
Diamonds enter make or break period for 2023
The diamond industry is entering a crucial sales period from Thanksgiving to the Chinese New Year, with a strong demand for diamond jewellery and stones in key markets like the US being particularly important this year. This is due to the crisis faced by rough producers such as Botswana, which is partly attributed to high inventory levels of polished diamonds in the midstream.
ODC debuts diamond sales to citizens
ODC conducts 10 auctions of rough diamonds annually, attracting global buyers who bid on various sizes and types of stones. The company sources its diamonds from a 25% allocation of Debswana’s production, expected to increase to 30% with a new government and De Beers deal. ODC sells its stones through competitive spot auctions.
Forecast budget deficit trimmed, but risks grow
The forecasted budget deficit for Botswana has been reduced, but rising risks from Russia's ongoing war in Ukraine and global uncertainties are putting pressure on the projected 3.8% economic growth for the 2023-24 year. These forecasts are detailed in the draft Budget Strategy Paper prepared by the Finance Ministry.
HB, govt deal inches forward despite Antwerp boardroom brawl
Oded Mansori, a co-founder of HB Antwerp, has criticized his partners for removing him from management duties and has taken the matter to court. A Belgian court is expected to rule on the dispute on September 22, with Mansori alleging that his removal was improper.
Mohembo Bridge award sweetens Okavango allure
Kobamelo Kgoboko received an Award of Merit from the International Federation of Consulting Engineers for the design of Mohembo Bridge in Singapore. The bridge is noted for its aesthetic that complements the Okavango Delta and its environmentally friendly, fully solar-powered operations.
Oiling the wheels of trade
Petroleum industry veteran and Kwa Nokeng Oil CEO, Mahube Mpugwa, expresses the company's ambition to position Botswana as the region's preferred trade and logistics route. In a competitive environment where governments are investing in infrastructure to attract trade and investment, private investors like Kwa Nokeng Oil are crucial. The article highlights the strategic importance of becoming a logistics hub for regional growth and investment.
Banks set for mega-profit earnings season
Listed and unlisted banks are expected to report elevated profits in their upcoming annual and interim financials. Data from the Bank of Botswana indicates that cumulative after-tax commercial bank profits for the first half of the year reached P1.5 billion, up from P1.2 billion in the same period last year, suggesting the sector may break historic profit records by year-end.
Hot and dry: Tough rain season beckons
The Meteorological Services Department of Botswana has confirmed the building of El Nino in the skies above the country, which is expected to reach its full strength by the end of the year and affect the entire rain season. The last significant impact of El Nino in Botswana was in 2015/16, causing a water crisis in the capital and record high temperatures.
A PFR2 tsunami and the market’s sink-or-swim moment
Local investment professionals counter criticism of being overly conservative amidst ongoing debates over changes to Pension Fund Rule 2 (PFR 2). The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) previously mandated that pension funds invest at least 30% of their assets locally, amounting to P38.2 billion by May. The discussions have seen exchanges between regulators and investment managers handling significant pension fund assets.
BTCL to go “copper-free”
BTCL reported a 23% drop in pretax profits for the year ending March 2023, attributing the decline to costs associated with replacing stolen copper cables and one-time restructuring expenses. The total impact of copper cable theft was P56 million, while restructuring costs amounted to P55 million. The company plans to significantly increase its investment in fiber rollouts to replace legacy copper networks as part of its revised strategy.
Botswana to Weaken Currency by 1.51% in 2024 Due to Inflation
Botswana will devalue its currency, the pula, by 1.51% against a basket of currencies in 2024 to address higher local inflation compared to its trading partners. This adjustment, similar to the previous year's rate, will be achieved through incremental daily changes. The decision reflects Botswana's weak production capacity and productivity, which impacts price competitiveness. The pula's value is determined by a crawling peg system, which has been in place since 2005, and is pegged to a basket that includes the South African rand and IMF special drawing rights.
De Beers Will Stockpile Unsold Diamonds After Prices Tumble
De Beers, the world's largest diamond producer, is stockpiling unsold diamonds in response to falling prices and will allow buyers to refuse purchases they're contracted to buy. CEO Al Cook remains confident that diamond prices will recover, meeting future demand. The diamond industry, which thrived during the pandemic, now faces a slump due to reduced demand in the US and China, inflation, a real estate crisis, and competition from lab-grown diamonds. De Beers's rival, Alrosa PJSC, paused sales for two months, and India's market stopped imports. Despite challenges, De Beers maintains a production target of up to 33 million carats for 2023.
MMG wraps up Khoemacau deal
MMG has completed the acquisition of Khoemacau from Cuprous Capital Ltd, effective March 2022. The deal, which includes a $348.6 million debt settlement, is seen as a significant milestone for MMG, adding a high-quality growth project to its portfolio. MMG, formed in 2009, operates in Australia, the Democratic Republic of Congo, and Peru, with China Minmetals as its largest shareholder.
How to move out of SA�s shadow
The article discusses the impact of Foreign Direct Investment (FDI) and industrialisation in Botswana, particularly highlighting a significant event that took place on January 12, 2000. On this day, the Hyundai assembly plant in Broadhurst closed down, resulting in the loss of 900 jobs. This event was notable as the plant was a source of national pride for Botswana, representing a key industrial achievement. Despite previous statements indicating that the plant would continue operations, the closure came as a shock and had a substantial impact on the local economy and employment.
Botswana calm as scramble for El Nino funds heats up
Ambassador Macharia Kamau, the United Nations Special Envoy on El Niño & Climate, visited the region to raise awareness about the impact of climate change and the El Niño weather phenomenon. He expressed concern over the consecutive El Niño-affected seasons that have led to reduced agricultural output. Kamau warned that by December 2016/January 2017, the crisis would peak in terms of food security, as both government and household food reserves would be depleted before the new season's crops are harvested.
The plan to outfox Lesedi la Rona �saboteurs�
William Lamb, the CEO and director of Lucara, has stated that the company will not return to auction for the sale of the Lesedi la Rona diamond after a failed attempt in June. Instead, Lucara is considering a private sale but has a blacklist of certain entities that will not be considered for the purchase. The company is currently strategizing on how to maximize the value from the sale of this historic stone.
The search for the next Jwaneng
The article discusses the importance of protective leg armour for individuals venturing into the desert region 25 kilometres south-west of Tsabong. This safety equipment is essential due to the presence of numerous venomous snakes in the area, which are not accustomed to human presence and may attack. The leg armour described is a military-style gear that covers the leg from the ankle to the knee and is also waterproof, providing critical protection in this hazardous environment.
The dying moments of Lesotho�s former commander
The article recounts the events of June 25, 2015, when former Lesotho Defence Force commander, Maaparankoe Mahao, was ambushed by three double cab vehicles while driving near his farm in Ha Lekete, near Maseru, Lesotho. Two of the vehicles had military plates, and one was unmarked. They strategically positioned themselves to barricade Mahao's van, indicating a planned and possibly military-involved incident. The presence of Mahao's two young nephews during this confrontation is also noted, adding a personal dimension to the story.
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