Rail Park Mall has successfully maintained its position as Botswana’s favourite destination mall for over five years now. It’s fifth anniversary is a landmark achievement driven by the loyalty of its patrons, according Chief Executive Officer of Khumo Properties Outule Bale when giving a review of how the mall has been performing for the past years.

He said the mall is strategically located next to Gaborone Bus Rank and Station. He pointed out that Rail Park Mall continues to be a model attraction to pedestrians and the commuting public who augment the shopping mall’s 800 000-foot traffic per month. 

“On average the mall has over the past five years maintained tenant retention ratio of 96 percent although those tenants who left were replaced almost immediately, also due to its position as a link between the main transport hub and the rest of the city on the other side of the railway line; the mall has had to cope with high foot traffic volumes which impacted on services such as public toilets and escalators.” said Bale

The tenant mix, he said, also needed enhancements in order to strengthen the quality of cash flows and value of the mall as an asset. The foot traffic is still very high, which is good for trade but enhancements are being pursued by management to upgrade the escalators as well as the introduction of paid public toilets for the mall to keep up with the volumes. He said the tenant mix has gradually been improved from 2012 with the introduction of new tenants with stronger covenants.

Bale added that as one of the largest three malls in Gaborone, the quality of the tenants at Rail Park Mall compares very well with that of its peers and the design of the building is one of the best in town. The mall has turned what used to be a decrepit piece of land next to the railway line into an area of significant economic activity in Gaborone.It has over the years continued to participate in corporate social responsibility activities in recognising and giving back to needy causes. 

These include the Kamogelo Day Care, Monwane Primary School Project, Cancer Association of Botswana (Stiletto Walk) as well as Blood Donation campaigns. He said they have also been hosting comedy shows which have facilitated for the exposure of local artists and comedians.

Botswana Power Corporation has joined hands with an international telecommunications company to establish a new telecoms network provider. Liquid Telecom group, which has operations in selected African countries, is the firm that BPC has partnered with to form Liquid Telecom Botswana.

The company is expected to compete with players such as Botswana Fibre Network (BOFINET) in the highly competitive telecoms network industry. The historic deal was penned by outgoing Chief Executive, Jacob Raleru and his Liquid Telecom counterpart, Nic Rudnick in Gaborone.

According to a press statement, the joint venture will operate under the name Liquid Telecom Botswana. The partnership will enable the state-owned company to make more effective use of existing assets, while allowing its Liquid Telecom to better service the needs of wholesale enterprises.

BPC, the power utility owns and operates optical fibre cable network that is embedded in some of its voltage transmission lines. The new BPC partner was selected after a competitive bidding exercise, said the company. The Mauritius-based company will be the majority shareholder. It will run the day to day activities of the company, Liquid Telecom Botswana.

“The use of BPC’s optic fibre cable network will be granted to Liquid Telecom Botswana under the Indefeasible Right of Use Agreement (IRUA). Rather than taking any rental payments, the capital value of the IRUA will be used to purchase BPC’s equity stake, which is 42, 5 percent,” said BPC.

The power utility is excited about the deal, indicating that it will diversify its revenue base away from electricity sales to both retail and institutional customers. The state-owned power utility has been making perennial losses due to rising operational costs and the non-completion of Morupule B power station.

Diversified retail group, Sefalana has entered Lesotho market through a brownfield model, a development which has kept its regional push alive. Late yesterday (Thursday), the company announced  that it has purchased a large cash and carry going concern which will trade under the banner, TFS Sefalana.

Group finance director, Mohamed Osman told shareholders that the said entity will traded under TFS Sefalana for up to one year after which Sefalana will become the only name, the brand will come to be known in the mountainous country. Osman is excited that the latest development has allowed the group to continue with its expansion within the region.  Sefalana, which is quoted in the domestic stock exchange, is already trading in Namibia. It bought an existing group of supermarkets, Metro Cash and Carry Namibia after raising cash worth P255 million.

This time around the company also plans to raise P351 million to fund the latest acquisition. The funds will be raised through a Rights Offer. Osman has cautioned shareholders to exercise caution when dealing with its securities until further notice. The company, together with arch-rival, Choppies Enterprise Limited are the only known retail brands that are flying the country’s flag high in foreign lands.  Sefalana, which has also assets in property, manufacturing and milling has announced ambitious plans to claim its retail top spot from Choppies, another listed retail goliath.

In Botswana, the company has also rolled out a number of stores, made some acquisitions and also made available in-house brands. In Lesotho, the company will battle for the same market with South African retail giants such as Shoprite and Pick n Pay. Sefalana also competes with them in Botswana.

Furniture group, Furnmart this week notified shareholders that year-end results will be delayed as the company has just begun winding up one of its non-Botswana operations.

The said subsidiary is in Zambia, said deputy Chairman, Tobias Mynhardt. The results of the BSE-listed company were expected to have been out on or before the last day of October 2016. Now the company, which has a market capitalisation of P630millionsays the results will be publicised not later than 28th November 2016.

Efforts to get a comment from Furnmarttop executives on why the company is closing its operations in the copper-rich country proved futile yesterday (Thursday). However, the company’s 2015 annual report had intimated that the Zambian unit was not performing satisfactorily. The weaker Zambian Kwacha has been blamed for the poor profits in the Furnmart subsidiary.

“Management will proceed with caution in Zambia,” said the annual report. Last week, the Daily Nation reported that 350 jobs will be lost at HomeCorp and Furnmart Zambia when the company finally exits the country.  Meanwhile, the company which owns HomeCorp and Furnmart stores has already notified shareholders in a notice that results for the year to be reported will be 10 percent lower when compared to the same period last year(H2:2015).

Standard Chartered plc, a leading global bank is seeking three Islamic banking licences in Africa, including Botswana, international media has reported.

According to reports, the London Stock Exchange listed could debuts its Islamic banking products and services, named Saadig, as early as 2017. The targeted markets are Botswana, Nigeria and Zambia, the bank’s head of Islamic banking for retail clients, Mohammad Ali Allawalla has told Reuters. “Nigeria is an interesting market in terms of size we are exploring and other markets like Botswana and Zambia, which are not big markets in terms of sheer size but in terms of pockets of customers they present a good opportunity,” Allawalla is quoted as saying by the news agency.

The bank already has presence in the above-mentioned markets. In Botswana, the global banks owns Standard Chartered Botswana, a leading listed bank which has been in Botswana for more than 100 years.  “Its not just a matter of what we would like to do, it’s also a matter of how mature the regulations are, what do the regulations allow you to do, what is the cost of setting up vis-à-vis the products you can roll out in the market,” said Allawalla.

Standard Chartered Saadiq’s core markets are Pakistan, Malaysia, Bahrain, United Arab Emirates, Indonesia and Bangladesh and in 2014 it entered the Kenyan market, its first move into Africa. As well as talking to regulators in the three African countries, Standard Chartered Saadiq is also in discussions about gaining an Islamic banking licence in Brunei in South East Asia and working with the regulator there on guidelines for Islamic wealth management.

Government will continue to provide a conducive environment for local companies to thrive and eventually become internationally competitive, the country’s Vice President has said. Mokgweetsi Masisi was speaking at the launch of a 100 percent citizen company Almaz which has set up a plant to assemble and distribute gadgets for domestic and external markets.

A business environment, which includes incentives is what local companies need to thrive and become profitable, said Masisi. New companies, such as Almaz are at liberty to seek incentives from government given that their growth is important to the country’s desperate crusade for employment and high economic growth rates.

The company, owned by ICT entrepreneur, Monametsi Kalayamotho and Thabiso Malgas has set up a P20million plant which will create 500 jobs for locals once production is in motion. The Vice President urged retailers and distributors to support local firms.
 “I will also call upon retailers and wholesalers to take a positive attitude towards these locally produced gadgets. As much as carrying international brands has been the norm, I urge you to reconsider your procurement processes and make space for locally produced goods,” said Masisi. 

Almaz has partnered with Microsoft and Intel for quality assurance purposes. Chairman of the company, Kalayamotho is thrilled that the company is about to kick off. The journey thus far has not been easy. “We are excited to be launching a new brand into the market. Our aim is to have Almaz produce gadgets with competitive quality and price for the local market.As a tech company, it is important to affiliate with global tech suppliers in order to provide the best possible service,” added Kalayamotho.

The company is expected to also contribute to the growth of ICT content and research development in the country. Trade and Industry minister, Vincent Seretse said the new company will help cut the high import bill in the field.

The amount of time the average First National Bank customer spends in a branch will fall to 86 minutes in 2016, from 100 minutes in 2015, a decline of 14percent year on year, FNB Business chief information officer Peter Alkema said on Tuesday.

The improvement, he said, means that FNB customers will spend a total of 8 760 fewer days in bank branches during 2016 compared to last year. “That’s a quarter of a century back in their lives [overall].”The reduction in branch use by customers is part of the bank’s strategy to drive users to digital channels, including online banking and the company’s smartphone app.

Although many people still regard physical branch infrastructure as a way into “financial inclusion”, it’s not a “point of dependency” but rather a place of first contact, Alkema said. “We quickly move them onto our digital platforms [after becoming customers].”He said FNB has seen a “dramatic” increase in the use of its app and its mobile banking services in the past year. Total internet, mobile and app transaction volumes have risen by 15percent over 2015. The number of customers using the FNB banking app rose by 85percent  in the same period.  The bank’s eWallet is also proving popular. FNB expects R1.5 billion to be sent via its mobile money service by the end of the year.

Alkema said fewer customers are using branches to deposit cash, with four times as much cash being deposited at automated terminals than in branches. However, despite the growing move to digital channels and payment methods, the use of cash in South Africa continues to increase at a rate of about 10percent /year.Meanwhile, Alkema has warned that telecommunications operators, which are keen to expand into financial services, may be underestimating what is required of them to build a serious retail presence.MTN Group, in particular, has aggressively hired new top executives with extensive experience in the financial services sector.

They include incoming CEO Rob Shuter (ex-Nedbank), incoming chief financial officer Ralph Mupita (ex-Old Mutual) and vice-president of strategy and mergers & acquisitions Stephen van Coller (ex-Absa), signalling that financial services is a key future focus area for the company.“Those companies must go the Discovery route of putting down big money and building a big team to build a retail bank,” said Alkema. “It’s not an overnight thing. [Discovery CEO] Adrian Gore understands this. When you see the telcos putting serious cash reserves aside, then [we’ll know they’re serious].”

Still, the telcos are well positioned to enter financial services, Alkema said.“Airtime has become a geographically independent store of value. In Africa, people buy airtime for people in other countries — it’s become a cross-border remittance. So, telcos already have a pseudo digital currency. They are already sitting on a digital store of value, which is that data and voice capability. When they can figure out new and innovative business models around that, it will be hugely interesting.”Alkema said telecoms operators need to find innovative business models that are not simply an add-on to their telco capabilities but a full banking offering.

“They need to get out there and say there are building a retail bank, exactly like Discovery has done.”The problem is the market is already competitive, in an economy that is depressed, making it difficult for new players to break in.“The only market share available is the market share you can take away from existing banks,” said Alkema. And that will be a tall order given that local banks have a “strong foothold” and are “innovative”. Also, the regulatory environment is “tough”, making it difficult for new players to enter the market successfully. 

Techcentral

Lucara Diamond has decreased operating cash costs in its Karowe mine due to high power costs and an increase in tonnes processed. In its third quarter report, Lucara Diamond indicated that Karowe’s operating cash costs guidance was being decreased for the year from between $29 to $31 per tonne of ore processed to $25 to 28 $per tonne of ore processed.

“Karowe’s operating cost is $25 per tonne compared to $29 per tonne last year. The reduction in cost guidance is due to power and general cost savings and an increase in tonnes processed. Costs remain well controlled,” stated the report. The mine has recorded 700 000 tonnes of ore and 3.1 million tonnes of waste. The report states that the process plant has performed well during the quarter with tonnes processed being 19.5 percent ahead of forecast for the quarter. The company also recorded revenue of 38 .1 million compared to 90.9 million in the same period last year.

Lucara has recorded a net loss of 3.8 million in the third quarter compared to net income of $44.2 million in the prior year. “This is due to the company having two sales in the prior year including an exceptional stone tender compared to a single sale in the current year. The company has also reported a foreign exchange loss compared to a foreign exchange gain on translation of its US dollar cash in the prior year,”

Lucara Diamond President and Chief Executive Officer, William Lamb said they are pleased with the third quarter revenue and now look forward to the fourth quarter with high quality production for their second exceptional tender of the year. “Cost discipline during the third quarter remained strong and we continued to advance our capital projects for large diamond recovery as well as our exploration and drilling programmes to expand our resource base,” said Lamb.

Lamb said the company continues to forecast between $15million to $18 million for the modifications to the existing large diamond recovery circuit and the installation of a Mega Diamond recovery circuit.In the last quarter, the company approved the a sub-middles XRT project which targets the recovery of diamonds sized between 4mm and 8 mm using XRT technology.

The 30 million Dollar project is expected to address processing of the very dense high quality or at depth and will also result in the most efficient and cost effective processing methodology for processing this ore. Lucara has two prospecting licences in Botswana  located within a distance of 15km and 30km from the Karowe Diamond Mine. The two precious stones prospecting licenses are to be known to host kimberlites, BK02, AK11 and AK12, AK13 and AK14.

The vision of hospitality business, Travel Lodge, is to have a footprint in parts of the country that tourists and business travellers will want to visit, the company’s Director, Gaurang Mooney said at the launch of their conference facility on Tuesday.

Mooney said that Kasane Travel lodge will be open for business in December while construction of Travel Lodge Gantsi will commence in the first quarter of 2017 and Palapye branch is currently on the drawing boards. These developments are a demonstration of the group‘s commitment to promote economic activity and provide a range of employment opportunities for locals in their communities. He said it is common knowledge that the backbone of the travel industry is customer service and its success depends on listening to customers and providing thoughtful treatment and value for money.

In March 2012, they were the first to provide WIFI for their guests, a practice that has since become a norm in the industry.“We believe that hospitality is the relationship between the guest and the host, it is also the practice of being hospitable, these values are not foreign impositions but part of Botswana traditions, for us it’s not an optional extra but rather a standard feature” said Mooney

ravel Lodge General Manager Cameron Thompson said that the business landscape in Botswana has very high demand for conference facilities and they believe that they will not only fill the gap in the market but will help strengthen Gaborone as an established conference destination. Thompson said that they understand the longevity and sustainability of business travel and that the new conference centre and the refurbished hotel is generating interest. They are also experiencing significant number of inquiries and bookings on a daily basis.

Ba Isago, a leading private tertiary institution in the country, is upbeat at prospects of offloading half of its issued shares to a South African education group, saying it will help the company expands its student base and presence in Botswana and beyond the borders.

This week, it emerged that, Ba Isago has invited Curro Holdings as a 50 percent shareholder and strategic partner, marking the first biggest trans-boundary acquisition in the education industry to date. The Gaborone-headquartered university said the deal will ‘offer additional expansion opportunities’.

The growth will also be visible in the enrollment base at the 13-year old institution. With Curro on board, the university will be in a better position to increase its current enrollment from 3100 to 8800 in the next five years. Like other local private universities and colleges, the institution has been hard hit by government’s decision to cut spending on tertiary students this year.

The two companies have not disclosed any financial figures to the deal. “The deal is yet to be completed and we are not at liberty to disclose any financial information,” Ba Isago Business Development officer Anamika Singh told BG Business on Wednesday. A press conference to clarify any ‘burning issues’ regarding the deal will be held today (Friday), announced Singh. The founder of the school, Odirile Gabasiane is confident that the historic deal will come in handy for the company and indeed for the country’s broader objective of becoming a knowledge economy.

The Ba Isago boss has thanked the education ministry’s support over the years. Ba Isago offers various courses, starting with certificates to degrees. Fields of study include among others, finance, education, real estate and built environment. On the other side, Curro is a Johannesburg Stock Exchange company which runs more than 100 schools in South Africa, the region’s biggest economy. The company plans to have 200 schools including those in Botswana by 2020. The deal to acquire part of Ba Isago will be done through Curro subsidiary, Embury Institute for Higher Education.

Sechaba board of directors has resolved to change the company’s financial year end from March 31st to 31st December, the company disclosed on Wednesday. 

The company, which is a parent to Kgalagadi Breweries Limited (KBL) has advised stakeholders that the current financial year will end on the 31st of December 2016. The BSE listed company will publish its current financial year results in March 2017, added a statement. The board has not disclosed reasons for the change in reporting period. On another matter, Sechaba’s parent company, SABMiller has bought Belgium-based brewer, AB InBev in a marathon bid that took months to complete. AB InBev’s reporting period runs from January to December every year.

The change in reporting period comes weeks after Sechaba reported a drop in profits for the interim results to September 2016. Profits for the first six months of its financial year declined by over 40percent as the domestic regulations continue to bear heavily on its operations.

According to the company, profits plummeted by 40, 7 percent as volumes declined by 0, 1 percent. Through its subsidiary, KBL Sechaba produces clear and opaque beers for the domestic market. Directors made it clear that industry regulations have hit them hard and the company is trying all available avenues to spring back to life. “The decline in the financial performance of the company is mainly attributable to the current regulatory environment in which the company operates,” said the BSE-listed outfit.
The regulations in question are the Alcohol Levy which is currently at 55 percent.

The Levy affects clear beer sales. There are also the traditional beer regulations which have negatively impacted opaque beer which is popular among the low-income earners in townships and villages. For the period under review, clear beer volumes managed to grow marginally by 6 percent, suggesting consumers spent more time in bars and bottle stores between April and September this year. Meanwhile, fruit beverages, sparkling soft drinks and traditional beer volumes declined in the period under review.

Despite the massive fall in profits, the company shareholders will smile all the way to the bank. The board chaired by Thabo Matthews has declared a dividend of 30 thebe per share.

Shumba Energy, the forthcoming energy developer is upbeat that the international coal market will bounce back, led by biggest consumers such as China and East Asia. The company is currently at various stages of developing its coal assets in Botswana, both for the domestic and export markets.  At the beginning of the year, prices were going under $55 per tonne briefly, but the picture has since changed.

This is with the benchmark Australian export price coming within touching distance of USD 70 per tonne and they are now making reduced losses around +USD 15 to USD 20 per tonne after further cost reductions, cancelling expansion plans and capital projects. Writing in the latest company annual report, Shumba Chairman,  Alan Clegg, Shumba indicated the market is still heading for a significant deficit within 3 to 5 years which will force prices upward to potentially unseen levels and highs.

On a related matter concerning the cola market, heavy rainfalls have hit Indonesian supplies also and with the Chinese Government shutting down mines at home on safety and environmental concerns these are all boosters for the price with some analysts predicting prices back at levels of USD 90 per tonne by 2018. As for Botswana’s Shumba, sentiments remain the same with those of the analysts and still believe the markets are correcting. Market analysis places South East Asia for significant growth with strong correction by end of 2017 and into 2018 based on the known energy demand which on latest 2016 estimates require an additional 40Mt to 45Mt of coal supply per annum. 

“As I highlighted last year the Southern African power pool continues to hold a major net deficit of over 30GWe that is still growing as older power plants are closed down and/or need replacement. This urgency to cover this deficit and make industry in the SADC region competitive and sustainable has been highlighted in the reporting period with much inter-governmental activity on cross border power supply arrangements and agreements which, are all in Shumba’s favour.” He further indicates that, some 3750Mw has been approved and called for by the South African government under these arrangements and recent parliamentary presentations by Botswana’s Minister of Energy again highlighted the urgency for these quotas to be filled by independent power producers.

Shumba continues to focus on tactical execution for early cash flow. “In line with this, low cost coal production for local supply to the spot market and established energy producers directly through offtake agreements, like Botswana Power Company at Morupule, is a point of focus. And further our IPP projects are also in the short term another priority, particularly at Mabesekwa.”  Potentially in the future Shumba may yet export onto world spot markets into the sweet spot of the upturn medium term, giving significantly higher than normal returns.

Botswana Food Science Technology Association has called for a regulatory body to monitor foods sold in the market since some of them are not fit for human consumption.

The association’s President Dr Minah Mosele said: “We need to regulate chemical fertilisers and pesticides in our food products. Right now, we have found products in our supermarkets that have high levels of pesticide residues and prohibited chemicals fertilisers,” Dr Mosele told delegates at the Global Expo in Gaborone recently.

Under normal circumstances, any condemned food should be destroyed. “Those products are supposed to be destroyed but the problem that we have in our country is we don’t have policing bodies to make sure that those products do not actually enter the market.”
Dr. Mosele who is also Head of Food Technology Department at National Food Technology Research Centre (NFTRC), stated that there is need to revamp the local agriculture system as most of the food is imported.

“We need to support our agriculture system so that we can feed ourselves because right now Botswana is actually importing 80 percent of the food commodities,” she said adding that there is need to come up with supply chains that are more oriented and responsive.

She challenged relevant stakeholders to put the entire necessary infrastructure and ensure that it is doing well. Dr. Mosele said that Botswana’s vast tracts of land can be turned into a green belt and feed the nation if utilised.“The great minds are there in Botswana and the science and technology and innovation is there and what we need now is to implement our policies,” said Dr. Mosele.

The country still imports virtually everything to satisfy the local market resulting in the import bill standing at a whooping P73 billion for last year.The government is currently encouraging local consumers to local products and reduce the import bill.

PrimeTime Property Holdings is working with government to secure licences for South African shops at the new Pilane Mall, managing director, Alexander Kelly has revealed.

Kelly said their long-term view remains positive due to strong local demand. “The need for high quality dedicated retail facility in the Pilane/Mochudi area has been known of for many years. We will continue to work hard with investors and the government,” he said.The 8934 sqm mall was opened in September with 30 percent of South African National retailers denied trading licences by the government. Current tenants include, Choppies, Barclays, First National Bank, Liquorama, OK Furniture, Knock Out, Cash Build, FSG and Café Pie Time. Kelly said they are expecting to see the international shops opening at the mall in the next coming months as the government is currently engaging with the retailers.

“The minister of Investment Trade and Industry has reported his engagement with the retailers and we are hopeful we will see international retail brands opening at Pilane Crossing mall in the coming months,” he said.Kelly said around one third of the space leased at the mall is yet to be occupied as the government and international retailers search for a solution to the granting of licenses in the citizen reserved business spaces. “This has created a challenging environment for the local retailers who have opened at the centre without the draw of the major chains who were expected to be operational, even the anchor tenant is struggling,” he said.

In its year ended August 2016, PrimeTime has recorded 25 percent increase in profits to P81.5 million. Its total portfolio value stood at P837 million by August 2016. Kelly said they are continuing their strategy to grow and diversify their asset base. In June, the company listed a bond to the value of P105 million.

“This has enabled us to complete the Pilane Crossing development and to look for the next acquisitions,” he said adding that these will include the development of industrial units on land already secured at Setlhoa and the retail investment in Zambia. Prime Time has recently acquired 7500 sqm retail space in Lusaka at the cost of 17.1 million US Dollar with a 9.25 percent net rental guarantee.

“Our long-expressed intention of expanding our footprint in Zambia is now taking shape with significant investment planned over the next few years,” he said.Kelly also stated that they are seeking further investment into the industrial property sector and have secured two plots at Setlhoa properties and are now in planning stages.

Botswana Housing Corporation has sprung back to profitability for the six-months results to September 2016 as a result of cost cutting measures and impressive performance from income received from joint ventures.

The state-owned BHC posted a marginal surplus of P2, 7 million during the period under review, a major improvement when compared to a loss of P7, 4 million. The above profit represents a growth of 137 percent when compared to the same period last month. The Reginald Motswaiso-led Corporation has not mentioned the joint venture properties or projects which boosted their bottom line.

The BHC Act allows the company to partner with local companies to develop new properties in whatever arrangements the parties deem fit.  Meanwhile, the corporation has started the construction of more than 300 houses in Gaborone, Palapye, Jwaneng, and Phakalane. “These are areas where effective demand has been established and the houses are expected to attract huge interest from the market,” said BHC in a statement accompanying its financial results.

A decision has been taken to build and sell more houses instead of renting out. This is expected to prop-up BHC’s balance sheet which has assets of well over P3 billion. The parastatal has not adjusted its rates in the past ten years. Its application for rental increases has been rejected several times by the ministry responsible for housing. The company improving balance sheet and reduction in long term debt gives it an opportunity to borrow from the market to deliver more houses.

On other matters, BHC is currently restructuring its operations to align its staff needs to the new strategy. According to media reports, more than 100 jobs are on the line at the Gaborone based company, which has properties all over the country. Chief Executive of the company, Motswaiso has also written to the staff to inform them about the looming job losses. “The assessment process has resulted with some employees being redundant because they did not satisfy the assessment criteria and / or their jobs/ positions are redundant hence no longer in the establishment,” Motswaiso reportedly told employees in a memo last week.

Africa has tremendous untapped potential to not only pioneer its own creative solutions for its unique contexts but to also create solutions that the rest of the world can adopt for their own contexts.

Yasaman Hadjibashi, who leads the innovation agenda at Barclays Africa, said that the applications for Barclays Accelerator programme by Techstars is open for financial technology (Fintech) start-up companies in Africa. The programme is aimed at uncovering new technologies to banking, Barclays Africa and Techstars offers an opportunity to ten qualifying Fintech start-ups, which will take part in a 13-week programme beginning in May next year, based at the Rise Fintech innovation hub in Woodstock, Cape Town.

Interested Fintech companies from Africa can apply on their website before February 5th2017.The Barclays Accelerator first came to Africa at the beginning of 2016 and Barclays Africa signed collaboration agreements with seven,of the 10 start-ups that were part of the programme. Selected start-ups will be given the opportunity to enter or expand their presence in the African marketplace via Barclays Africa Group’s customer, product and technology teams.

The selected start-ups will also have the chance to scale globally through Rise sites in London, New York, Mumbai, Tel Aviv and Vilnius. The Accelerator offers companies an advantage by providing a recognised curriculum and lifelong access to the Techstars global network of mentors, investors and venture capitalists.“I truly believe that being part of Techstars gives companies such an advantage when it comes to scaling globally, the Accelerator pushes for one year’s worth of traction in three months at the end one’s company won’t come out the same, regardless of stage” said Managing Director of Techstars Yossi Hasson

Two of the country’s biggest lenders- Standard Chartered Bank Botswana and First National Bank Botswana - are expected to report dampened financials because of BCL closure.

The commercial banks, which have a combined market value of more than P10 billion have already raised red flags ahead of their full and interim results respectively. The oldest bank in the country, Standard Chartered, has told its shareholders that ‘the full impact of the liquidation of BCL group on the 2016 financial performance of the Bank is still being determined’.

The bank, which is headed by Moatlhodi Lekaukau, is expected to report full year results in the coming months. It has warned shareholders to exercise caution until the results are announced. Botswana Guardian could not establish the full exposure of the BSE quoted-company as they are in closed periods which limit comments on operations for the period (2016).

BCL has been put under liquidation due to pressures from inside and outside their sphere of control such as weak commodity prices in the global market. Government appointed liquidator of BCL mine, Nigel Dixon-Warren told the press on Tuesday that the mine cannot be saved. It can only be stripped and sold in parts or wholly as early as July this year.

Suitors have already lined in to get assets of the decades-old copper mine. The mining group owes creditors  more than P1 billion. Meanwhile, Standard Chartered’s peer, FNBB has also told its investors that they have determined the full impact of the closure of BCL mines. A cautionary statement signed by acting Chairman, John Macaskill and Chief Executive, Steven Bogatsu, says the full details of the impact will be made public when the bank releases its interim results to December next month(February).

The bank, which is a unit of South African banking group, FNB has also told shareholders to tread carefully when dealing with its shares at Botswana Stock Exchange (BSE). Meanwhile, Barclays Bank Botswana appears to be the only creditor that is smiling all the way to the bank. In March 2016, the listed bank which traces its origins from Britain bailed out BCL to the tune of $100million (about P1 billion). 

The loan fortunately was guaranteed by the government who is the sole shareholder of the BCL mine. Botswana Guardian reported last week that government has since paid back the loan, citing various sources close to the deal. Secretary for Development Budget in the (Ministry of Finance and Economic Development), Cornelius Dekop confirmed that indeed government in its capacity as the mine owner and guarantor has paid the facility that the bank advanced to the BCL mine.

“We settled the principal amount in full at the end of December 2016. Originally, we have been contractually obligated to pay interest as BCL failed to do so before they were put in provisional liquidation,” Dekop was quoted saying.

Liberty Life Botswana and Orange Botswana this week launched a strategic partnership; where Liberty clients will be able to pay their policies through Orange Botswana’s mobile money payment platform - Orange Money.

Liberty policyholders, particularly the unbanked will not have to travel to Liberty Life service points to make premium payments, but will do so from the convenience of their phones wherever they are. Speaking at the launch, Liberty Life Botswana Managing Director Lulu Rasebotsa said the partnership between Liberty and Orange will enhance the current offerings that Liberty has for its clients.

Among the key reasons Liberty has partnered with Orange is that it saw it as its responsibility to empower its clients, individuals, small businesses and large corporate institutions in offering the best suitable solutions. Rasebotsa indicated that, “When we interacted with our clients outside Gaborone we noticed that there was a gap in the market for the unbanked members of society.

There were clients who wanted some of our funeral policies such as Boago, Critical Illness Plan and others, but lived far from banks and sometimes developments and from that we thought it necessary to create a solution that would ensure that our clients get convenience and have easy access to pay their policies.”

Rasebotsa also highlighted that when looking for solutions they immediately thought of Orange Botswana whose main aim is also to give excellent customer experience and fortunately the mobile network company was receptive to the idea of working together.
“The Orange mobile network covers nearly the entire population of Botswana, including 53 for 3G services. In the past year Orange has had growth in mobile data usages and content and continued excellence in the customer experience so we have no doubt that we have partnered with the right mobile network,” she said.

She hoped that users of Orange Money will benefit from the partnership as they will have an opportunity to access a diverse mix of Liberty Life products to better manage their future and leave a lasting legacy for their families and dependents, while mitigating against the everyday risk of Life. Orange Botswana CEO, Dr Patrick Benon said the Insurance sector is one such a stakeholder, “because it contributes to give our customers a better quality of life. We recognise the zeal in the insurance space as they continue to make their mark.”

Standard Chartered Chief Executive Officer Moatlhodi Lekaukau has resigned, ending a five-year stay at the high office of the listed lender. The company board, which is chaired by Prof Bojosi Otlhogile broke the news to the market on Wednesday. He is expected to leave the bank which has a market value of P2, 3 billion, at the end of March 2017.

“The board acknowledges and thanks Mr Lekaukau for his dedication and contribution as Chief Executive Officer since joining the company in February 2012,” said the company. “Mr Lekaukau has successfully guided the company through the difficult business environment of recent years, maintaining a strong balance sheet and ensuring a balance between investment and returns to shareholders” The challenges the board was referring include the two-year moratorium on non-interest related products within the banking sector, which was effected on the 1st of January 2014.

There was also the liquidity squeeze which nearly brought the whole industry, half the size of the country’s Gross Domestic Product (GDP), to its knees. The central bank was forced to release P2, 3 billion to bailout the industry which is tightly controlled by British and South African banks. 

However, Lekaukau managed to keep the bank stable despite external challenges which affected profitability. It was under his leadership that the bank launched 100 percent mortgage funding, a first for the Botswana market. The bank also expanded its branches and ATMs network to cement its top four position in the sector. At an impromptu press conference on Wednesday afternoon, Otlhogile told inquisitive business journalists that, the outgoing CEO also managed to ensure the company reaches an operating income of P1billion, a first for the bank which is a unit of Standard Chartered plc. 

Bojosi also added that, the soft-spoken Lekaukau has also strived to ensure the local executive committee was localized. Late last year, the bank opened a branch at Sir Seretse Khama’s International Airport, another first for the country’s oldest bank. The bank also has considerable exposure in the country’s mining sector. This include BCL, government owned copper producer which has since been placed under voluntary liquidation.

This week the company announced it has considerable exposure to BCL mine and its liquidation ‘could adversely impact the 2016 performance’.The company made a profit of P47 million during the 12 months to December 2015, down from P319 million made the year before. At the close of markets on Wednesday, shares of the company remained unchanged at 760thebe.

The board is not wasting time to look for Lekaukau’s replacement. “The process of identifying an appropriate replacement for Mr Lekaukau is underway and an announcement shall be made in due course,” said the board in a statement. “The person (to replace Lekaukau) must be fit and proper,” stressed Otlhogile, who is a veteran law Professor at the University of Botswana.

Recently, a local newspaper, Gazette has been writing articles to the effect that, Standard Chartered breached rules when dealing with one of its clients, OSEG group, a local company. Is Lekaukau jumping ship?  “He is not stepping down because of OSEG accusations,” said the Chairman. It was speculated this week that the University of Cape Town alumni is leaving to concentrate on his personal and family businesses. At the same conference, he told the media that he is taking a sabbatical leave.

“I don’t have any major plans at this point,” he stated. Lekaukau, who has worked for Deloitte in South Africa said he is leaving an industry which is mature. “There are a lot of opportunities in the high end market as well as in the lower market,” he added. The SMMEs is also fast developing, calling for more innovative products and services from players. 

Cashbuild is on the lookout for more acquisitions. New stores and acquisitions have boosted profits for the six months to end December.

In its latest results, Cashbuild, southern Africa’s largest retailer of quality building materials and associated products said the 44 P&L Hardware outlets, together with its nine new Cashbuild stores, helped the company to report a 15 percent increase in revenue to R5.2 billion for the period.Shane Thoresson, operations director at Cashbuild, said P&L Hardware was responsible for 11 percent of the revenue and 4 percent was the contribution from Cashbuild’s new stores. “We would be looking for a similar performance from the new stores and acquisitions in the future,” said Thoresson.

The group said its existing 229 stores, prior to July 1, 2015, remained at similar revenue levels. It said it wanted to consolidate in its stores, but would look at possible acquisitions to add to the group’s profitability. “We're looking for two stores as possible acquisitions in Port Elizabeth. But for us the focus is to get our established businesses performing at their best, with the right prices in the market and cut down on costs.

"In that way we can remain competitive in this tough business,” Thoresson added. The group’s operating expenses were up by 18 percent to R949 million. Operating profit was up by 36 percent to R362 million as compared with the same period in 2015. The group reported an operating profit margin of 7 percent. Damon Buss, an equity analyst at Electus Fund Managers, said the new stores and P&L Hardware delivered all the revenue growth in this period, which indicated the pressure Cashbuild’s existing stores were under (for example, they didn’t grow revenue in half year 2017).

“This 0 percent revenue growth for existing stores and the stated 3 percent inflation implies like-for-like volumes were down 3 percent,” said Buss.The board declared an interim dividend of 540cents a share, an increase of 5 percent on 513c a share as compared to 2015.Cashbuild shares rose 0.82 percent to close at R370.01.

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