While some African countries are seen to be developing faster, jobs and inequality have become critical challenges for Africa. According to World Bank, growth in Sub-Saharan Africa slowed markedly in 2016 to 1.5 percent and it is projected to recover in 2017 to 2.6 percent and will continue to strengthen in 2018. 

However, African policy experts have projected that economic growth in Africa will likely continue to occur alongside limited decent job opportunities and stark inequalities in income, wealth and access to social services. Speaking during African Policy Circle Workshop last week, Botswana Association of Local Authorities (BALA) President, Mpho Moruakgomo said in many countries, the current growth pattern has actually increased the dependence on the export of primary commodities and minerals and often led to premature deindustrialisation and stagnation of agricultural productivity. 

“The growth therefore has often translated in increased import of food and manufactured products and the virtual export of African jobs and human capabilities. Now in Botswana we import about 90 percent of our food,” said Moruakgomo.

He explained that trends of decreasing African ownership of its assets as well as shrinking retention of the benefits of its growth are of great concern and are the core issues of the global inequality problem. Moruakgomo said that it is critical that African economies transform in a way that puts inclusive growth at the centre to address enduring inequalities. 

“Importantly, a move to diversify economies, and add-value in specific sectors, should not rely on an assumed positive relationship with equality. An Africa with a larger share of global GDP, diverse imports and a larger tax-base is not necessarily a more equal continent in which prosperity is shared,” he said.

It is important, he said, to craft a vision of structural transformation that has inclusive growth as its most central rationale. In her presentation, Agency for Cooperation and Research in Development (ACORD) Head of Advocacy and Policy Development, Salina Sanou said African countries need to expand their domestic resource mobilisation capacities and enhance prospects for alternative development financing in order to implement the Millennium Development Goals (MDGs).

She explained that in an attempt to attract foreign direct investment, many African countries have sometimes encouraged unhealthy tax competition whilst granting undue tax incentives such as the tax holidays allowed to multinational companies. 

“These practices result in loss of government revenues and are unlikely to provide a stable base for the accumulation of public finance on the scale needed to realise the Special Development Goals across all of Africa’s fifty-five countries,” she said.Sanou also explained that African countries need to create an international tax body at the United Nations level that will police and punish countries and individuals that practice illicit financial flows.

Engen Botswana, the country’s only-listed oil company, is delighted that government has established an energy regulatory authority, BERA, to level the playing field. The Act to establish the Botswana Energy Regulatory Authority (BERA) was passed by parliament last year. The Authority could not begin operations in the same year due to non-availability of funds. 

BERA is among others tasked with ensuring fair competition within the industry. “Engen Botswana welcomes the recently established Botswana Energy Regulatory Authority (BERA), hoping that this body will stabilise the local  petroleum product market, and ensure that technical and economic standards are followed,”  Chairman, Dr Shabani Ndzinge  wrote in the group’s latest annual report. 

He said his company is looking forward to seeing how this BERA unfolds in  2017, ‘especially as the proliferation of  retail petrol stations continues to grow’ Meanwhile, Freddie Motlhatlhedi an energy advisor, in the department of energy has told government’s Daily News that, BERA is expected to start operations this month (June). 

Over the years, players in the energy sector, especially in the industry have complained that government’ setting of prices for their petroleum products in most cases works against them, resulting in limited profit margins. According to Ndzinge, the growth in the energy sector provides challenges, which comes with new and varied competition. Engen, which has a market capitalisation of P1, 5 billion will not sit down and let players overtake it. 

“It (competition) also allows Engen Botswana Limited to showcase its industry-leading distribution logistics capability, retail excellence and innovation – factors that we believe will continue to differentiate us from the competition,” wrote Ndzinge who is also Vice Chancellor (finance) for Botswana International University of Science and Technology (BUIST). 

Engen’s Managing Director, Chimweta Monga wrote in the 2016 annual report that more and more retail filling stations for well-known brands and independent entities are mushrooming, thereby keeping them on their toes.  The closure of some mines, such as BCL and Tati Nickel mines has affected commercial sales at the company. “Retail sales were also affected in these areas due to a decline in purchasing power by local residents as a result of the difficulties encountered by the mines,” said Monga.  

In the past year, Engen piloted the 1Card system to a number of selected customers. The system, which will be launched countrywide this year, will enable individuals and companies to load credit on to a ‘swipe card’, and use it to pay for fuel and related services at any service station in the Engen retail network.

The company remains strong despite the fragile economic recovery which has dampened consumers’ confidence. For the year under review, Engen recorded a profit after taxation of P132million up , by 21 percent year on year. ‘

Government has spent over P27 million to pay for the services of BCL provisional liquidator, Nigel Dixon-Warren, Acting Permanent Secretary in the Ministry of Mineral Resources, Green Technology and Energy Security, Dr Obolokile Obakeng has confirmed.

Dixon-Warren has been at the helm of the cash strapped mine since it was placed under provisional liquidation last year. Dr Obakeng told members of PAC that, “although the liquidator has not charged government any specific amount because they charge as per the specific milestone and achievements, they have so far paid the liquidators up to P27 412 408,95.” 

He added that government has spent over P980 million into the care and maintenance of BCL while under provisional liquidation. Obakeng also revealed that at the moment Dixon-Warren is working with the Mineral Development Company Botswana (MDCB) to find a solution and decide on the fate of the BCL mine.

Dixon-Warren is expected to present a report next week at Gaborone High Court before Judge Gaolatelwe Ketlogetswe. This comes after Ketlogetswe granted an extension in order to assess the credibility and viability of an offer to buy the BCL mine. 

The deal between government and the royal Sheiks of the United Arab Emirates (AUE) has fallen off. It is said that the new investor, the South African billionaire, Patrice Motsepe, will take over the mine.  

Dr Obakeng also revealed that the Mineral Development Company Botswana has parted ways with its CEO, Paul Smith. Smith has been replaced by Sebetlela Sebetlela as Acting CEO.

He said that the Ministry decided to part ways with Smith because of his ‘problematic undertaking of his job’. “He no longer consulted the board nor created the necessary conversation in decision making in relation to the board,” he said.

Botswana Insurance Holdings Limited’s subsidiaries Legal Guard and Botswana Life Insurance Limited are undergoing operational challenges, with a possibility of retrenchments. 

Although it is not yet clear how many employees may find themselves on the streets after the process, close sources have indicated that all is not well at the Fairgrounds Office Park block A.  

Those close to the two companies indicate that the disheartening news from the BLIL side, were delivered at meetings held last month (April 3,4,5th 2017); during which staff  members was advised that the Botswana Life Board of Directors, had instructed the Executive Committee to review the company’s operating model to ensure the long term sustainability and success of the business. This is a result of BLIL’s performance not reaching the levels that were targeted, which subsequently resulted in growth expectations not being met. 

At the same time the Legal Guard, a company acquired from Letshego some years ago is also reviewing costs and process efficiencies in a desperate bid aimed at improving financial performance and sustainability of the business. In consequence, it may become necessary to make structural changes to Legal Guard as part of the above exercise.  

Botswana Life staff members were given notice of possible intention to terminate contracts of employment for operational reasons in terms of the section 25 of the Employment Act, sent on the 12th April 2017. The letter notes that, “pursuant to the said meetings (April 3,4,5th) we now formally give you written notice that it may become necessary to make structural changes to BLIL as part of our above strategic implementation. 

In this event, we anticipate that all or some of our employees may be affected in a variety of ways, including but not limited to their positions becoming redundant.”

The notice further noted that, while the precise details regarding the departments that may be affected, the number of positions that may become redundant and the associated number of employees likely to be impacted are yet to be firmed up, the companies nonetheless considered it imperative to give the statutory notice of a possibility of a redundancy and/or retrenchment situation.  

This week, on Tuesday 23rd May 2017, BIHL Group CEO, Cathrine Lesetedi-Letegele released a notice to BIHL Staff, regarding the developments at Legal Guard, stating that, “the business anticipates that all or some of the Legal Guard employees may be affected in a variety of ways, including but not limited to their positions becoming redundant.” 

According to close sources the BLIL process is anticipated to be completed by July whilst at Legal Guard is next month (June), which the sources allege that at Legal Guard they only learnt about this development a week ago. 

The sources have alleged that the group company is spending much money on management salaries, who at the same time many of them, are on the same portfolios. Sources also claim that the company strategies are not delivering to the expected level. 

After bringing to close the Sekgantshwane 2014 strategy in December 2014; a three year strategy which was aimed at positioning the company amongst the best life insurers globally, BLIL in July 2015 unveiled a new corporate strategy for the horizon 2015-2020. 

The new BIHL CEO, Letegele who took over the reigns from Gaffar Hassam, is working round the clock on strategies to improve the group’s footprints operations for a well diversified insurance outfit within the SADC region. Currently BLIL dominates with an estimated market share of over 75 percent and the group intends to improve and grow its existing offerings. 

The group is also pinning its hope on this strategy to turn around the fortunes of the ailing Legal Guard. The company executives attribute this poor performance to additional legal claims and increased operational costs.  

In a response to Botswana Guardian inquiry late Wednesday, Letegele said:  “I confirm that Botswana Life Insurance Limited (BLIL) and Legal Guard are undergoing a cost efficiency exercise, which may result in some positions becoming redundant. 

Discussing confidential matters is not a practice we make a habit of and this decision has certainly not been taken lightly but was necessary to ensure operational efficiencies”. 

All staff members have been engaged and management is doing its utmost to ensure the process is managed according to the highest standards of regulatory, labour and HR practice, said Letegele who was out of the country on Wednesday.


She said Botswana Life Insurance Limited continues to be the country’s  leading life insurance services provider, with more than 41 years of heritage, while Legal Guard remains the legal expenses business of choice .

“ We remain focused on delivering on our strategy of growing our people, driving excellent service for our customers, growth and returns to our shareholders and making a sustainable impact in communities we operate in. We remain steadfast in our commitment to our customers and indeed all of our people,” she added.  

Botswana, a mineral resources-based country has an opportunity to create more jobs within the mining sector, which is capital-intensive by nature, Bank of Botswana’s director for Research and Financial Stability, Dr. Tshokologo Kganetsano has told the press.

He made the observation when presenting a theme topic for the central bank’s annual report titled ‘Botswana’s trade patterns, international investment and regional economic-integration: Opportunities for industrial development and inclusive growth’ recently. 

Downstream beneficiation within the mineral sector is perhaps the major route for Botswana to take if it is to benefit from the multi-billion Pula sector, especially in the diamond sub- sector which contributes in majority to the country’s exports. 

“The relocation of the De Beers aggregation in 2012 and sales activities from the UK (United Kingdom) to Botswana and further development of polishing and manufacturing offer the potential for higher employment and greater positive spillovers,” said the report which was launched last week.  

According to a recent report from Statistics Botswana, the mining and quarrying industries employed 12, 447 workers up to March 2016. However, this was before thousands of jobs were shed after BCL ceased operations months after the report was published. 

More than three years ago, De Beers moved its aggregation and sales activities to Botswana following the signing of a ten year sales, sorting and valuation of Debswana-produced diamonds in 2011. The aggregation of diamonds to the 50-year old country was to have benefits to other sectors of the economy such as property, hospitality and financial services. 

However, the domestic economy is yet to fully benefit from such development, except for the coming in of diamond imports from De Beers diamond mines and the subsequent export of such parcel to outside markets.  Kganetsano, who is new in the post, pointed out that, ‘the success of the diamond polishing sector would depend on proper alignment on labour productivity and relative wages’. 

Recently, some diamond polishing and cutting companies have closed and retrenched workers citing ‘higher costs’ of production when compared to other players in developed markets such as India. The report, which is contained in the main 2016 BoB annual report, further states that Botswana has coal resources in abundance, but its potential to create industries and subsequently employment is yet to be fully exploited. 

“There is potential for coal to support economic activity (including employment opportunities) through direct export, use in generation of surplus electricity for export and production of gas, petroleum and associated chemicals,” said the report presented by Kganetsano. 

Botswana Oil, a government company, plans to create hundreds of jobs through its coal-to-liquids projects. The project is however at an infancy stage, Chief Executive, Willie Mokgatlhe has previously disclosed. 

The BoB report which suggests that Botswana can create more jobs especially in the downstream stage comes at a time when BCL is currently under provisional liquidation after it became apparent that it was no longer economically-viable to continue with its operations. 

Before mining was halted at the copper mine, the company’s executives were in the process of developing value-added production from copper under the much-hyped Polaris 2 strategy. 

As a result of BCL closure, more than 5000 workers have been ejected from the mining pits in Selebi Phikwe. 

Botswana is striving to become one of the top ten mining destinations of choice in the world, Mineral Resources, Green Technology and Energy Security minister Sadique Kebonang has said. 

Officially opening the 14th Botswana Resource conference held under theme, Deepening investment and diversifying focus in Botswana’s Resource Sector, Sadique said this goal would realised through private sector investment, boosting of investor confidence and will see Botswana emerge as a mining centre of excellence.

Kebonang said they also want to become a net energy exporter within the region as well as to ensure affordable, accessible and sustainable supply of energy to Botswana through multiple sources. He said his ministry will continue to make necessary reviews to legislation and policies to ensure that they are conducive to sustainable mineral exploration, mining and energy development.

“Significant developments have been made that we believe have put us on track to be a mining centre of excellence and to see business thriving in the mineral sector,” he said adding that they have proposed changes in the Mines and Minerals Act, Precious and Semi-Precious Stones Act and Diamond Cutting Act, which will be discussed in the next sitting of parliament. 

He said the amendments to these acts were done to achieve the setting up of mine closure funds for rehabilitation, pursue citizen economic empowerment initiatives, ensure safe use of explosives and prevent their use in criminal activities. The amendments also seek to remove trade barriers and increase penalties to deter illegal trade in the diamond sector. The minister said 2017 has started on a good note for the mining sector as the country has seen an encouraging appetite demonstrated by Diamantaires to buy rough diamonds. “There is, however, a rising concern that strong demand and prices were getting ahead of the polished, and this had a potential to compromise the sustainability of the demand manufacturing industry,” said the minister.

He said although performance of the mineral sector has still not recovered from the decline of the mineral commodity prices, the world is  beginning to see a wake of activity, as the prices start to rebound.  “I have been made aware that Mowana Copper Mine has commenced operations in the second quarter of this year. It is our hope that BCL and Tati Nickel Mines also, being the largest employers in the sector will soon find investors and commence operations,” said Kebonang.

He stated that the copper belt in North-West Botswana is an area that the government wishes to encourage investment in as it could provide another opportunity of diversification away from diamonds. He said the ministry is working hard to complete the development of a 400 kilovolts transmission line from Morupule to Maun and is hoping the transmission will support potential mining and business by providing a cheaper and more stable source of power.

Barclays Bank Botswana and Liberty Life Botswana have joined hands to launch new insurance products that provide customers with financial assistance during their first diagnosis of chronic illnesses. Named Bosele Life Plan, the scheme gives customers the opportunity to access up to P15 million of life cover with attractive optional benefits such as physical impairment and permanent disability.

Launching the product, Barclays Retail Director, Brighton Banda said the life insurance policy ensures that if a policy holder were to pass away or become unable to provide for loved ones due to illness or disability, their families will receive a lump sum to help them through such a difficult time in life.  

“We are proud to have been providing Batswana with relevant, affordable and reliable financial services; we tirelessly endeavour to become this nation’s bank of choice. With over six decades in Botswana, we continue to diversify our portfolio, offering a one stop shop for banking services, ranging from savings and investments, transactional, lending and insurance services - both short and long term,” said Banda.

Barclays’ focus is on being Botswana’s partner for growth. “While we grow our business. We are equally passionate about sharing that growth with our communities, using our expertise, coverage, infrastructure and affiliations,” he said.  

Another product, which was launched also is the Tshireletso Plan, which provides customers with finance to assist with the living and treatment expenses on first diagnosis of a chronic illness.

 These chronic illnesses include, heart attack, heart failure and cancer up to a limit of P250,000 without need for medical tests. For her part, Liberty Life Managing Director, Lulu Rasebotsa said Bosele Life Plan provides life cover with limited medical underwriting.

“There is no waiting period in the sense that, once client has been fully accepted after having gone through medical underwriting, covers starts immediately. Further to that, it is a whole of life cover,” said Rasebotsa. She also explained that Bosele life plan has optional benefits being, permanent disability, physical impairment, critical Illness, and immediate expense benefits. “A claim from optional benefits will not reduce the main core benefit, which is the life cover,” said Rasebotsa.

Tlou Energy has spent about $50 million in the Lesedi Coal Bed Methane (CBM) project as the company targets to provide power to the national grid by 2019, a senior official has disclosed. 

The company’s Executive Director, Gabaake Gabaake, said the CBM project is progressing in earnest. He said they are starting by drilling small quantities which will be increased with time.“Our plan is to start with a small pilot project delivering power to Serowe and we hope to supply 50 or 100 megawatts depending on what the government would have approved.

We hope to get the first power into the grid during the second half of 2019 and we think that is possible,” said Gabaake. The former Permannet Secretary in the minerals ministry was speaking at the resources conference this week.

Tlou Energy is an AIM and ASX listed company focused on delivering power in Botswana through the development of coal bed methane projects. The country’s first gas company has over 8300 square metres of exploration land in the Karoo Kalahari Basin, south-eastern Botswana some of which they intend to convert to a mining lease.

Gabaake said the Lesedi CBM Project has proved to be commercially viable and is set to add power to Botswana which has been battling with a severe energy shortage and is currently relying on expensive imported power and diesel generation to deliver its requirements. 

He added that numerous exploration and appraisal work programmes have shown that the project is going to be sustainable and since last year, gas has been flowing at the site.

“We are sitting fairly on a substantially, independently certified gas reserves   and there has been gas flowing since last year,” he said.  He stated they will be submitting a business proposal to the government next month on the 12 of July. Gaabake added that the government has been supportive in the development of CBM as they see it as the catalyst that can further grow the mining industry in the country.

Botswana’s power demand is to increase by 37 percent to 1,017MW by 2025 and analysts say there is a need to invest in power production. The cost of producing gas is half what is needed to produce the same megawatts when using coal. “We are able to deliver energy to the grid at the price that is reasonable,” said the official. 

According to a study, the baseline capital cost per KW of gas is half that of coal and the fixed operation and maintenance costs of gas are also half those of coal.

Financiers are increasingly having an appetite to fund renewable projects than coal powered ones, an official has revealed.

Fieldstone Africa Managing Director Jonathan Berman said there are emerging changes in the energy industry where investment in the renewable energy has been fast in the last couple of years. 

Berman said the energy industry is moving away from the large centralised traditional coal and hydropower utility model towards renewable energy. Berman said funding for coal projects have also gone down as funders are shifting towards funding renewable energy industry.

“It is increasingly hard to secure funding for coal projects and the volume of funding available for coal projects is low these days and that’s the reality,” said Berman. He said there is plenty of solar resource in Botswana and urged players to tap into this opportunity.

“There is a huge opportunity for Botswana to utilise the solar resource to generate energy and the equipment is getting cheaper and that’s why tariffs are falling in Southern Africa,” he said. 

He added that cost effective storage system and conventional energy storage techniques were also emerging to ensure that renewable energy could be stored efficiently. 

Botswana has abundant solar energy resources, receiving over 3,200 hours of sunshine per year with an average insulation on a horizontal surface of 21MJ/m2, one of the highest rates of insulation in the world. 

Installing solar equipment may be expensive but once installed, will guarantee power to the owner for a long time for almost free as long as the system is sized accordingly. 

Despite the emerging trend in the industry, Berman said they still work in coal projects but they recognise the direction that the industry is taking.

Mining companies have been urged to reduce operational costs and remain afloat during the current situation characterised by low commodity prices on the international market, an official has said.

VIVO Energy Botswana managing director, Wayne Kingwill said due to global challenges facing the mining industry, a number of companies have shut down while others were put under provisional liquidation.

Last year, BCL and Tati Nickel Mining Company (TNMC) and related entities were put under provisional liquidation by the government after facing viability challenges leaving about 5000 workers stranded.

“We have seen companies reducing production in Botswana even when they are not under care and maintenance and where we are coming in as Vivo Energy is on cost improvement. What we are trying to do is partner with companies and try helping them to take costs out in a sustainable way,” said Kingwill. 

He added that many companies are under pressure from the low commodity prices on the international market hence it is important for costs improvement by eliminating all forms of wastages. Kingwill, whose company supplies fuel and lubricants, says they visit companies and analyse their production and propose solutions on how to improve their operations and reduce costs. 

“Companies should use the real lubricant for the real equipment,” said Kingwill. Vivo Energy is one of Botswana’s leading marketers of gasoline, diesel, illuminating paraffin and lubricants, supplying a wide range of these products to various sectors of the economy, and fuelling the country’s efforts to achieve its significant potential.

Kingwill said the company is also investing in the communities and one of them being the conservation of the environment and empowering of indigenous citizens in Botswana. The company’s retail business in Botswana has been operating for more than 100 years under the Shell brand. It was the first marketer of petroleum products in the country. 

Currently, it is the country’s market leader, has more service stations than any other energy company and leads the way in customer service.

Subdued demand for rough diamonds in the country since last year is derailing government vision to grow the cutting and polishing industry, Diamond Hub Deputy Director, Business Office, Diana Moabe, has said.

Moabe said despite a promising start in 2014 when the De Beers Global Sightholders relocated from London to Gaborone, price fluctuations on the international market are affecting the diamond industry. 

“Since 2015 there is a low utilisation of rough diamonds in the market and that compromises the beneficiation objectives of the government and in terms of generation of employment as you have seen some of the factories closing,” said Moabe last week in Gaborone while addressing players and stakeholders in the mining industry. 

But she bemoaned lack of meaningful citizen participation in the local diamond industry. Moabe said the majority of players are from outside and this becomes naturally uncomfortable and the sustainability of the business will remain questionable. 

“We would want to see a meaningful participation of locals in the industry,” she said and added that there is need for the government to stimulate citizen participation. She stated that the country is not naive to the fact that citizens will not be able to play to the same level with the foreign investors but can form partnerships with them. 

Moabe said there are still many diamond fields that have not been fully exploited in the country. “There are so many Kimberlites that have not been exploited and there are still opportunities available. We still have the cutting and polishing and I believe we can advance it forward,” said the Diamond Hub official.

She said the local industry performed well in 2014 with the country managing to supply the local market with goods worth around US$900 million. “Although in 2015, we did not sell much due to the unfavourable business conditions and failed to exceed the US$800 million in 2016, the industry managed to supply more than US$800 million,” said Moabe.

Due to a low demand locally, Moabe said the country has seen some of the rough diamonds being shipped, affecting the transfer of skills. Moabe was however quick to point that the country should not worry as the country is determined to forge ahead and grow the industry.hat there would be specialists in place to lead such platforms. 

Citizen Entrepreneurial Development Agency (CEDA) has funded 1200 youth enterprises for a total of P600 million to date, says Chief Executive Officer, Thabo Thamane.

Briefing the media on Tuesday, Thamane said out of the money disbursed, P326 million has funded Agribusiness projects, P187 million funded services projects while only P71 million funded property and manufacturing projects. 

He said over the years the agency has promoted entrepreneurship, job creation and youth empowerment through provision of funding, business advisory as well as training and mentoring services for new entrepreneurs. 

“We strongly believe that young people are not only key drivers of future prosperity but also vital untapped human resource,” said Thamane explaining further that since 2014, CEDA has provided training to 277 young entrepreneurs, out of which 188 were trained on procurement and business management, while 77 were trained on piggery production.

Thamane said the agency is concerned with project mismanagement especially the youth projects under Young Farmers’ Fund. He said about 20 percent of youth have abandoned their projects. “When we visit these projects we always realise that the parents have now taken over the projects and the youth are no longer involved in them. This might be an indication that parents use the youth to access funding, but we are dealing with the problem,” he said.

He said through its new Mabogo-Dinku product the agency has disbursed P4.5 million creating over 5000 jobs, mostly for women. The product offers loans to individuals who belong to self-help groups that support them in saving and loan repayment accountability and through surety at application stage. 

The loans range from P500 to P150 000 per person and are payable in a period of three to 12 months with repayment frequency ranging from weekly. CEDA has reserved P20 million for the product during 2017/18 financial year.

Thamane also highlighted that the agency has been able to generate income to support its operations. The agency receives government subvention each year to fund businesses. It also generates income in the form of interest and collection on loans already financed to augment government subvention. 

“Government has given CEDA grants amounting to P934.7 million over the last three years and the agency disbursed P1.19 billion in the same period,” said Thamane. CEDA has achieved a collection rate of 105 percent in the last financial year ending March 2017.  The set target for collection was P330 million and the actual collection amounted to P346 million.

Minister of Investment, Trade and Industry, Vincent Seretse has urged Swedish business community to increase trade flows between Botswana and Sweden.

Despite the longstanding bilateral relations between Botswana and Sweden trade between the two countries has remained negligible with the balance of trade in favour of Sweden.

Seretse is currently in Sweden on a state visit with the President Lt. Gen. Dr Seretse Khama Ian Khama. Speaking during the Sweden-Botswana Business Networking lunch on Tuesday, Seretse highlighted that Sweden exports to Botswana increased from US$3.7 million in 2015 to US$5.2million in 2016 with the exports products mainly being telephones. 

“There is an opportunity to increase trade flows between Botswana and Sweden, especially through the recently signed SADC-EU Economic Partnership Agreement. My government is keen to explore the Open Trade Gate Sweden to assist Botswana companies with market entry information and strategies to effectively export to Sweden,” said Seretse.

Swedish companies have over the years invested a total of US$57.3 million in Botswana with corresponding employment levels of 269 people. Seretse was encouraged by the increasing level of interest by Swedish companies to invest in Botswana. “I would like to take a moment to openly invite other Swedish businesses to consider utilising Botswana as an effective launch-pad for your investment interests in Africa,” 

He said the Double Taxation Avoidance Treaty between Botswana and Sweden, which came into effect in 1993, should have facilitated more investment by Swedish companies into Botswana than currently recorded. 

“The low investment levels may be a sign that we did not effectively expose each other to the abundant investment opportunities that exist between our two countries,” said Seretse. He also highlighted that the ministry is currently in the process of drafting a business facilitation law that will cause consequential amendments to many of the current laws that impact the ease of doing business in Botswana. 

Botswana has also been working with the World Bank Group to formulate a Doing Business Reforms Roadmap, which brings compelling administrative reforms to ensure quality service standards and quick turnaround times in facilitating investors.

Bank of Botswana this week reiterated its earlier response that it supports the creation of indigenous commercial banks in Botswana.

This comes hot on the heels of Barclays plc transaction which cemented South Africa’s vice-like grip control of the multi-billion Pula banking industry in the region. 

The country currently has ten commercial banks and three statutory banks being Botswana Savings Bank (BSB), National Development Bank (NDB) and Botswana Buildings Society (BBS). 

All the ten commercial banks are in the hands of foreign investors, with the most value attributed to South African-owned banks. “Like everyone else, we (BoB) welcome an indigenous bank. However, it is important to note that, we are tasked with ensuring the banking industry is safe and sound,” the central bank Governor, Moses Pelaelo old the press on Tuesday.  

He was responding to questions from business reporters after Barclays plc disposed part of its shareholding to Barclays Africa, in a transaction which was exclusive to South African investors. Barclays Africa owns Barclays Bank of Botswana. This effectively means Africa’s most advanced economy is the biggest investor in the lucrative banking sector. 

Pelaelo stated that, even though there are no citizen-owned banks, it must be appreciated that some of the commercial banks operating here have listed part of their shares at Botswana Stock Exchange (BSE). This platform has given locals a chance to own shares in the different banks which are listed such as First National Bank Botswana and Standard Chartered Bank Botswana. 

Over the years, some local investors have tried, but in vain to gain entry into the multibillion Pula sector which is half of the country’s Gross Domestic Product (GDP), after the central bank rejected their applications. Letshego Holdings Limited is one such unfortunate applicant whose application was put on ice for undisclosed reasons. 

According to the central bank Governor, ‘two or three’ companies have applied to be licensed as commercial banks in the past few years. Pelaelo made it clear that, most of the applications were turned down on the aspect of ‘strategy versus resources’ and not necessarily financial. 

P5 million (less than $1 million) is needed to start a bank in the landlocked-country where banks are competing to service a population of more than two million. The banking sector’s profitability over the years has increased despite rising competition and weak economic performance. 

The BoB annual report for 2016 shows that overall balance sheet of commercial banks climbed by 5, 2 percent from P76, 7billion in 2015.  Loans and advances for the same year (2016) also jumped by 5, 7 percent to close the period under review at P49, 7billion. 

Pelaelo added that not all profits from these banks are moved out of the country as there has been notable investment by local banks in the domestic economy. On a related matter, BoB has kept the lending rate at 5, 5 percent, for the third time this year.  The decision was taken by the bank’s Monetary Policy Committee (MPC) this Tuesday.

Standard Chartered Bank Botswana, the country’s oldest bank, is optimistic of the year ahead despite fears that the economy will not grow by earlier forecast levels. 

The commercial bank, which is among the top four in the country, like others, depends on consumer confidence which itself is dependent on economic performance. 

Writing in the group’s 2016 annual report, Chairman Professor Bojosi Otlhogile said the ‘outlook for 2017 is positive, the balance sheet is strong and the business segments have a good pipeline for conversion in 2017’. 

‘We believe, in line with the bullish forecast for economic growth of 4, 2 percent, our strategy will deliver sustainable growth which will deliver strong returns to shareholders and enhance the profile of the franchise.’

His positive views are also shared by the bank’s former Chief Executive, Moatlhodi Lekaukau, who stated that, while the external trading environment is challenging, investing in people and technology will ensure they rise above. 

“We expect that conduct, monitoring and control to be the top agenda for 2017 to ensure containment of loan impairment whilst returning higher profitability,” said Moatlhodi who is now an entrepreneur. The bank’s balance sheet is fit for growth. “We remain confident on our ability to realise long term sustainable gains and build strong balance sheet,” said the former Standard Chartered boss, who has been replaced by Mpho Masupe on an acting capacity.  

This week, Bank of Botswana (BoB) Governor, Moses Pelaelo declined to answer a Botswana Guardian question relating to the appointment of a substantive CEO of the country’s oldest bank. The central bank vets potential candidates in all senior management of commercial banks.

Meanwhile, Bojosi has told shareholders that  the bank will continue to provide ground breaking and tailor-made banking solutions to its customers. “During the year under review, value was added to our clients by launching a number of new exciting products,” added Bojosi. 

According to Head of Retail Banking, Pedzani Tafa, the bank will also provide digitalised services for their various products. “The bank will continue to work hard to improve on customer banking experience. Most importantly, we will continue with our digital by design initiative,” said Tafa. 

A new state of the art branch was opened at Sir Seretse Khama International Airport, marking the 20th branch for the bank, which is a unit of Standard Chartered plc. The bank celebrates its 120 years in Botswana this year. 

Head of Commercial banking, Kesego Mokgetse is also bullish on the year ahead. His department provides services to commercial clients. “We have run a challenging race in 2016 and we are well equipped in terms of systems, lessons learnt and human resources to push the unit into the next level in 2017,” said the Old Dominion University alumni, Mokgetse. 

For the year under review, the bank’s total income grew by 3 percent. Net interest income was up by 13 percent despite the low rate regime.

Stanbic Bank Botswana continues to strengthen its position as the leading bank in the corporate and investment banking space in Botswana, with the capability and capacity to drive great influence and impact in the segment.

Standard Bank Group Regional Head of Corporation and Investment Banking, Chris Clarkson told this publication this week that the Group has pioneered a number of projects in Botswana that continue to earn it great acclaim. He said for any business to succeed, it is critical to have a sound strategy that is flexible, effective and promotes progress. “Stanbic Bank Botswana continues to drive strong performance in line with the Group’s strategy and has continued to yield growth with each financial year. In addition, Stanbic Bank Botswana is one of the leading performers across the regional footprint, with a remarkably well performing Corporate and Investment Banking (CIB) division,” said Clarkson.

Stanbic Bank Botswana prides itself with the remarkable capabilities and achievements in the CIB space. According to Clarkson, the CIB division of the business has proven experience in the sectors such as Non-Banking Financial Institutions, oil and gas, fast moving consumer goods, mining and metals, telecoms and media, power and infrastructure, power and real estate.

Head of CIB in Botswana, Shepherd Aisam also said key to making these capabilities even more powerful and effective for stakeholders, the bank shared, is collaboration and engagement. “We continue to position ourselves as leading operation in the market by placing an emphasis driving value for customers, the group and communities we operate in. 

“An important aspect here is working with our valued partners, collaborating as a means towards making progress real, engaging and communication with our key stakeholders along that journey,” said Asiam.Stanbic bank is a member of the Standard Bank Group, the largest bank in Africa by assets. The bank is one of the largest commercial banks in Botswana and is committed to ensuring a progressive and meaningful banking experience for each and every one of the Bank’s clients and stakeholders.Stanbic Bank provides the full spectrum of financial services and operates within the two divisions namely the Corporate and Investment Banking (CIB) and Personal and Business Banking (PBB). In Botswana, the bank employs over 600 workers and has a national footprint of 10 branches.

Stanbic Bank Botswana has no immediate plans to list on the Botswana Stock Exchange, bank Chief Executive, Leina Gabaraane, has revealed.

Gabaraane told this publication that they don’t have an appetite to list on the local bourse as the current situation does not attract them to do so.

“As we stand now there is no immediate plan to list. There are many factors that we need to consider before listing and none of them has met our requirements. One of them is to raise capital and we don’t need to raise capital,” said Gabaraane. 

He said the bank was performing well on the local financial service market and will continue to do so without listing. “We believe that our contribution to the financial services sector in Botswana continues to be in existence and will continue and we don’t need to do it through listing,” he explained. He said listing on the stock exchange is important and this is why their bonds are listed on the BSE. 

Listing on the stock exchange is said to be the best platform for citizens to participate in the businesses operating in the country through buying shares. There has been calls by some analysts for the bank to float its shares on the BSE, with emphasis placed on its market share. Even the central bank has also made similar calls. 

“Unlike its peers, Stanbic is not listed on the Botswana Stock Exchange. The non-existence of the bank on the domestic bourse could be misinterpreted to mean lack of long-term commitment and willingness to have the Botswana public participate in the ownership of the bank,” said Bank of Botswana Governor, Moses Pelaelo.

 He was speaking at the bank event to market its 25 years of existence in Botswana some few months ago. Ben Kruger, the co-Chief Executive of parent company, Standard Bank has told Botswana Guardian before that the time is not ripe for the bank to go public. 

Stanbic bank is a member of the Standard Bank Group, the largest bank in Africa by assets. The bank is one of the largest and best performing commercial banks in Botswana. In its annual report for 2016, the financial institution recorded a profit after tax of up to 48 percent at P195 million. 

The CEO said despite the closure of businesses, threats of closure and the challenges in the agriculture sector in the country, the bank still performed well. They recorded above budget profit and double digit year-on-year growth.

Stanbic Bank provides the full spectrum of financial services and operates within the two divisions namely the Corporate and Investment Banking (CIB) and Personal and Business Banking (PBB).

In Botswana, the bank employs over 600 workers and has a national footprint of 10 branches. Last year the bank successfully launched a new three year ‘Road To Excellence’ strategy aimed at enabling and positioning the bank as the market leader.

First National Bank Botswana is the ‘best bank in Botswana’. They were bestowed the award at the recently-held Euromoney Awards for Excellence’ in London recently. 

According to a press statement, the Euromoney Awards for excellence have been running for more than 25 years. “Only those institutions that bring highest levels of service, innovation and expertise to their customers are honoured,” said the statement.

All banks in Botswana are eligible to enter the awards. Steven Bogatsu, the Chief Executive of FNBB is over the moon. “We are pleased to have been recognised as a leading player in the banking sector in Botswana,” he said. According to the CEO, the bank is driven by the need to provide best banking services to its clientele. “Our eBucks Rewards programme also scored us points,” he added.

The bank is better known for being the first to introduce cell phone banking, online banking, FNB APP, eWallet among others. Bogatsu has expressed gratitude to clients for their loyalty to the bank which turns 26 this year. Meanwhile, the bank has announced to shareholders that they will publish full year results on or about the 30th of August 2017. The bank, which is a subsidiary of FNB South Africa, has since declared a closed period. “During this period members of the board and staff of the company are prohibited from dealing directly or indirectly in the listed securities of the company,” said company Chief Finance Officer, Makgau Dibakwane. 

Bank Gaborone, the unlisted bank has opened its latest branch in the tourism town of Maun to service the Ngamiland area, Botswana Guardian has learnt.

The opening of the Maun branch comes a year after the Palapye branch was officially opened. Bank Gaborone Marketing and Corporate Communications Manager, Sandra Mokobi however says the bank is not new to Maun as it has been offering clients unsecured loans through its BG Finance division.

“In pursuing its purpose to be a connector of positive change the bank saw it fit to give the people of Maun a wider range of financial services which would help give them greater access,” said  Mokobi.

Mokobi said as a destination for both tourists and budding entrepreneurs within the tourism sector, Maun was selected by Bank Gaborone to increase its retail prospects and to service both the town as well as those in surrounding areas. 

“BG Finance will however continue to operate from its existing office offering unsecured loans,” said Mokobi. She said the Maun branch offers a suite of products and services ranging from transactional accounts, savings accounts, investment accounts, business banking and SME banking.

The branch also offers treasury services including foreign exchange services, property finance, vehicle finance, and electronic channels including E-pula Internet Banking and Tobetsa mobile banking which provides for convenient banking. 

To show further commitment to servicing their clients with the best products, Mokobi said the bank has launched its new E-pula internet banking to individual customers. She said business clients will be migrated to the new system over the next few months. 

“The new E-pula comes with more security and is more user friendly with a refreshed look and feel,” said Mokobi in a statement. She said Bank Gaborone commits to being an active participant in the Botswana economy by being a catalyst of sustainable opportunity and will continue to explore ways in which it can connect Batswana with a meaningful banking experience. 

The bank was awarded a banking license by Bank of Botswana in February 2006 and has been providing banking services since September 2006 across a network of nine retail branches, 12 BG Finance unsecured lending offices and 17 ATMs spread around the country. 

The Botswana government is revving up efforts to ensure that citizen entrepreneurs venture into the lucrative oil and energy business.

This week, the Botswana Oil, which is one of the institutions mandated to ensure that more citizens get involved into the sector, brought aspiring businesses and Small to Medium Enterprises (SMEs) from across the country to Gaborone to discuss how they can get involved into the sector.  

It is estimated that over 90 percent of the oil companies are owned by giant multinational companies with limited participation by Batswana. In an interview, BOL, Chief Executive Officer, Willie Mokgatlhe, bemoaned that the level of participation of citizens in the petroleum oil and gas industry in the country is very low.

He said currently the sector is restricted to the filling stations but the petroleum sector is bigger than that and this presents big opportunities for aspiring businesses to venture into. 

“In the petroleum space, opportunities are in a number of areas and when you look at the supply value chain there is procurement of products for the country, transportation and distribution,” said  Mokgatlhe whose company is 100 percent government owned and formed to ensure security and efficiency of supply of petroleum products in Botswana. 

“As Botswana Oil we are there to show the local citizens on where the opportunities are so that they can then start getting into the business,” said Mokgatlhe. He said the government insists that the sector should be controlled by Batswana. Mokgatlhe however said the oil and gas industry is not an easy industry and has its own challenges and hurdles which need every stakeholder’ input to resolve.

“We are also looking at some of the hurdles and jointly working with government on how to manage and support the companies and start making a meaningful contribution into the petroleum sector,” said Mokgatlhe. The BOL CEO said his company has storage facilities and local companies and players don’t necessarily have to build new facilities. 

“We are able to supply products to local companies at the same price as multinational companies so that you are able to complete equally with those multinationals,” said Mokgatlhe. Since the oil and petroleum industry is a fairly new industry, Mokgatlhe said they intend to train and educate locals about the industry. He added that they have come up with policies and programmes to ensure that citizen companies grow.

“As Botswana Oil we are starting to reserve about 30 percent of our works for citizen companies and this intended to make sure that we support them to grow in that space,” said Mokgatlhe. The official also said they are starting to develop smaller facilities that can also be used in the smaller villages to provide fuel. 

The Botswana government has also come up with a policy that intends to empower local companies with keen interest to venture first into procurement and retail of petroleum products.