Saturday, 19 December 2009
Friday, 18 December 2009
Botswana Central Bank Reduces Benchmark Interest Rate (Update1) - Bloomberg.com
Botswana Central Bank Reduces Benchmark Interest Rate
The central bank cut its benchmark interest rate for the first time since August as inflationary pressures eased. “Prospects for the level of inflation being sustained within the 3 to 6% objective range during 2010 remain good,” according to the Gaborone-based Bank of Botswana. “Accordingly, the bank has reduced the bank rate by 1% to 10% with immediate effect.”
The central bank cut its benchmark interest rate for the first time since August as inflationary pressures eased. “Prospects for the level of inflation being sustained within the 3 to 6% objective range during 2010 remain good,” according to the Gaborone-based Bank of Botswana. “Accordingly, the bank has reduced the bank rate by 1% to 10% with immediate effect.”
Botswana’s inflation rate dropped to 5% last month from 6.9% in October, the Central Statistics Office said on December 16th 2009. Further price increases should be contained by excess industrial capacity, lower commodity prices and weak labor market conditions, the central bank said.
Botswana is the world’s largest diamond producer. Demand for the gems has slumped amid the global economic recession, and the International Monetary Fund expects the southern African nation’s economy to contract 10.3% this year.
“There is an improvement in economic prospects as the world economy recovers from the recent deep recession,” the central bank said. “The sustainability of the global economic recovery depends on normalization of the global financial system, as well as a smooth and coordinated exit from the policy stimulus packages that the advanced countries undertook to support economic activity.”
The central bank last cut its benchmark interest rate on Aug. 25, lowering it by half a percentage point.
Botswana backs African Diamonds deal
Lucara has completed the buy-out of De Beers from the AK6 diamond discovery in Botswana following the approval of the Botswana government, which was brokered by African Diamonds, which is headed by John Teeling.
Lucara, a part of Lundin Group, takes over De Beers' 70.3% stake in AK6. African Diamonds currently holds a 29% stake and Lucara intends to take up an option to increase its interest to 40% in early 2010. African Diamonds says construction of the diamond mine is expected to begin in mid-2010, with a start-up date in late 2011.
Lucara, a part of Lundin Group, takes over De Beers' 70.3% stake in AK6. African Diamonds currently holds a 29% stake and Lucara intends to take up an option to increase its interest to 40% in early 2010. African Diamonds says construction of the diamond mine is expected to begin in mid-2010, with a start-up date in late 2011.
Thursday, 17 December 2009
Olympia Capital unveils new business strategy for SA
Olympia Capital Holdings Limited announced the acquisition of the Yokota brand name and the manufacturing plant belonging to Natural Wooden Products Limited from the liquidators of Plush Products in South Africa.
The deal is part of Olympia’s new business as it seeks to increase its presence in the South African market. Olympia Capital Holdings Chief Executive Michael Matu said the company had already acquired a 74% stake in Plush Products as part of the regional expansion strategy in 2006.
Olympia Capital Holdings owns 100% in Dunlop Industries Limited (Kenya), a 49% in Avon Rubber Limited (Kenya), 13% of Heri Limited (Kenya), and 53% in Olympia Capital Corporation. Olympia Capital Corporation holds 100% in Kalahari Floor Tiles (Botswana), which owns Gaborone Enterprises Limited.
Wednesday, 16 December 2009
ABN AMRO launches banking system in Botswana
ABN AMRO launches banking system in Botswana
To strengthen its presence in Africa, ABN AMRO ID & JG launched its OLYMPIC Banking System in Botswana a few days after the bank obtained its license. The International Diamond and Jewellery Group's business unit for the financing of the diamond industry, ABN AMRO, opted to deploy the OLYMPIC Banking System with a multi-entity configuration to support its activities in various countries including Botswana.
To strengthen its presence in Africa, ABN AMRO ID & JG launched its OLYMPIC Banking System in Botswana a few days after the bank obtained its license. The International Diamond and Jewellery Group's business unit for the financing of the diamond industry, ABN AMRO, opted to deploy the OLYMPIC Banking System with a multi-entity configuration to support its activities in various countries including Botswana.
BSE shines as Letshego stages surprise share price surge (Prof Malema 02.12.2009 9:28:13)
"“This was a clear case of profit takings,” Garry Juma, an analyst at Motswedi Securities, said Monday as BIHL, Chobe Holdings were snarled in a fog of profit taking� as the year approaches festive season.
“We are likely to see (this sort of) mix trading� in the four weeks to the end of the year,” he added."
“We are likely to see (this sort of) mix trading� in the four weeks to the end of the year,” he added."
Tuesday, 15 December 2009
Monday, 14 December 2009
Indices: RDCP is highest climber - The Botswana Gazette
RDCP (Property developer) was the highest climber at the end of last week, pushing on 2.4% to reach a new all time high of P0.42 on increased buying. Investors are currently excited about the Masa Centre, which RDCP is currently developing. The Masa Centre will be a jewel in the group’s property portfolio and the first mixed use development in Botswana.
Engen bounced to winning ways, pushing on 1.4% to P0.365 since some investors view the current lower price as a favorable entry point.
Sefcash pulled on 1.1% to P0.01425, while IAMGOLD added 0.9% to P0.098 thebe, buoyed by relatively firmer gold prices on the international market.
On the downside, Olympia tumbled by 15.4% to P0.55, followed by African Copper which lost 11% to P0.65 and FNBB which ended the week 5.7% weaker at P2.50 as investors continue to take in profits. Other losses were in Discovery Metals down 3.4% to P2.85, Letshego which has been on an upward trend for the past three weeks finally succumbed to profit taking, losing 3.1% to P15.50. Insurance giant BIHL lost another 2.6% to P11.40 also on profit taking, while Sechaba finished 0.2% softer to close at a new 52-week low of P12.98 thebe after the company released a tepid set of interim results.
Engen bounced to winning ways, pushing on 1.4% to P0.365 since some investors view the current lower price as a favorable entry point.
Sefcash pulled on 1.1% to P0.01425, while IAMGOLD added 0.9% to P0.098 thebe, buoyed by relatively firmer gold prices on the international market.
On the downside, Olympia tumbled by 15.4% to P0.55, followed by African Copper which lost 11% to P0.65 and FNBB which ended the week 5.7% weaker at P2.50 as investors continue to take in profits. Other losses were in Discovery Metals down 3.4% to P2.85, Letshego which has been on an upward trend for the past three weeks finally succumbed to profit taking, losing 3.1% to P15.50. Insurance giant BIHL lost another 2.6% to P11.40 also on profit taking, while Sechaba finished 0.2% softer to close at a new 52-week low of P12.98 thebe after the company released a tepid set of interim results.
Gadifele Shashane is the Standard Chartered Millionaire! - Lifestyle - Sunday Standard
One second you could almost hear a pin drop as the attendants lapsed into silence. And then seconds later, they would all burst into uncontrollable chatter and nervous laughter. The finalists had been whittled down to 10 from an initial 538 contestants, who had all entered the Standard Chartered Bank million maker draw launched on the 3rd of October. Customers were required to simply maintain a minimum average balance of P1,000.00 per quarter and earn a chance to win P1,000,000.00. The winner, who resides from Palapye, said she had invested more than P375, 000 in her account. This calls to why she grabbed the whole P1 million. She was overwhelmed, and she ran short of words. All she said was, “God never disappoints.”
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Business Place receives cash injection as it becomes envy of SADC - Business - Sunday Standard
The original sponsors of The Business Places this week showered the organisation with a series of cheques that amounted to approximately two million Pula. Owner of Motor Centre and board Chairman of The Business Place, Satar Dada pledged P500,000.00. Citizen Entrepreneurial Development Agency (CEDA) also pledged P500,000.00 for the next three years while also offering training and mentorship to the clientele of the business place. Kgalagadi Breweries Limited, (KBL) contributed P400,000.00 to the development of young local entrepreneurs. Barloworld and Investec, both pledged P300,000.00 a piece. The University of Botswana revealed that the university is able to provide human resource assistance and full commitment to The Business Place from the chancellor.
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World Bank takes active interest in Botswana ::
After more than two decades of inactivity, the World Bank is resuscitating Botswana’s borrowing from the international lender with vigour. In its bid to opening up its lending to Botswana, the bank in June 2009 approved Botswana Country Partnership Strategy (CPS) for 2009/13 entailing a 100% cost sharing limit which the bank may finance. While continuing to emphasise borrower commitment and ownership of individual projects, the bank would retain the option of financing up to 100% of project costs. However, specific arrangements would be determined for individual projects, taking into account project specific considerations. In practice, the bank’s financing share in many projects is expected to be less than 100% given government contribution and other donor participation,” states the CPS.
Botswana is in need of a more competitive and dynamic private sector that can generate more employment and to make this a reality, skills development must be more responsive to the needs of the labour market. Given Botswana’s scenario, the World Bank will support the government’s efforts to enhance public sector management, to fight HIV/AIDS and improve education outcomes, to increase competitiveness by investing in critical infrastructure and to improve the effectiveness of environmental programmes.
Botswana is in need of a more competitive and dynamic private sector that can generate more employment and to make this a reality, skills development must be more responsive to the needs of the labour market. Given Botswana’s scenario, the World Bank will support the government’s efforts to enhance public sector management, to fight HIV/AIDS and improve education outcomes, to increase competitiveness by investing in critical infrastructure and to improve the effectiveness of environmental programmes.
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