Saturday 25 February 2012
Bedia, BOBS make businesses more export ready
The Monitor: Their clients would access the international market without having to face tariffs related to standardisation, Nthekela noted. "We had a problem of our investors being charged at the border and they were often limited by tariffs related to standardisation," he said. "By this MoU, our clients will have easy access to international markets without being limited by international standards requirements."
Govt starts repaying loans on unfinished aviation projects
Mmegi: Analysts said the start of repayments on unfinished projects was a double blow for public finances, being a preventable leak of resources that could be deployed elsewhere."The repayments are done from the same treasury from where funds will be sourced for the cost overruns," said one public finance analyst who requested anonymity.
"The net effect is the duplication of expenditure on a single project, which is an example of inefficiency in public finance management."
The analyst added that when the loans were awarded, the return on the projects was supposed to have aided repayment.
"But at the moment, even before returns can be made on the project, we are already paying and this is because of poor project implementation," said the analyst.
"This situation is worse when you take into account the fact that government is prioritising net return projects. In addition, the fact that the cost overruns are drawn from the development fund mean less funds for more deserving infrastructural projects."
"The net effect is the duplication of expenditure on a single project, which is an example of inefficiency in public finance management."
The analyst added that when the loans were awarded, the return on the projects was supposed to have aided repayment.
"But at the moment, even before returns can be made on the project, we are already paying and this is because of poor project implementation," said the analyst.
"This situation is worse when you take into account the fact that government is prioritising net return projects. In addition, the fact that the cost overruns are drawn from the development fund mean less funds for more deserving infrastructural projects."
FNB's Non-Interest Income Up 31%
The Monitor: "We have appointed a fulltime head of ATMs and the division has performed very well," she said. "Our ATM transactions volumes has risen and the uptime has also increased from 92 percent to 97 percent and this, along with other new products, has significantly contributed to our non-interest income." The rise in the number of ATMs is not only expected to reduce the amount of time that customers spend queuing up in branches but also provide wider banking service access across the country.
Botswana gets P42m agric loan
Mmegi: "With the low level of productivity, agricultural production in Botswana is highly subsidised by the government," the statement noted.
"The project will contribute to improved food security and livelihoods in rural communities and decrease reliance on subsidies to promote farming as a viable business." The signing of this project marks a renewed collaboration between IFAD and the government of Botswana, which is providing approximately $19 million, after a 16-year hiatus.
"The project will contribute to improved food security and livelihoods in rural communities and decrease reliance on subsidies to promote farming as a viable business." The signing of this project marks a renewed collaboration between IFAD and the government of Botswana, which is providing approximately $19 million, after a 16-year hiatus.
BoB offers lifeline to commercial banks
Mmegi: "We expected the fall in yields and we knew we would take follow-up steps to stabilise the yield," he said in response to BusinessWeek questions.
"Under the reverse repurchase agreement, banks that have liquidity after the auction come back and we are able to give them BOBCs for that. By doing so, we therefore support the lower part of the range of yields."
He decried the over-reliance on BOBC interest income by banks. "We have said the BOBCs should never have been seen as an investment and this (deposit rate slide) is emblematic of that position," he said.
"They see this as an investment instrument where they can put money and pay for the interest on deposits. The problem is that to the extent that this instrument was set up for a particular purpose, it can be changed.
"In November, we said our decision was meant to encourage banks to look for other opportunities to earn good rates on investment opportunities and pay deposit interest rates. It therefore must not follow that they have to slash deposit rates."
"Under the reverse repurchase agreement, banks that have liquidity after the auction come back and we are able to give them BOBCs for that. By doing so, we therefore support the lower part of the range of yields."
He decried the over-reliance on BOBC interest income by banks. "We have said the BOBCs should never have been seen as an investment and this (deposit rate slide) is emblematic of that position," he said.
"They see this as an investment instrument where they can put money and pay for the interest on deposits. The problem is that to the extent that this instrument was set up for a particular purpose, it can be changed.
"In November, we said our decision was meant to encourage banks to look for other opportunities to earn good rates on investment opportunities and pay deposit interest rates. It therefore must not follow that they have to slash deposit rates."
Tati Nickel battles for longer lifespan
The Monitor: “As part of an intensive exploration programme, drilling was performed in the northern flanks of Phoenix deposit and models of Phoenix and Selkirk ore bodies were actualised,” he said at a recently ended Mining Indaba in Cape Town.According to Panov, proven reserves at Phoenix amount to 245,600 tonnes of nickel, which would extend TNMC’s lifespan further. In addition, progress has been made on resurrecting Selkirk Mine, with production from there expected to take Tati Nickel to 2023.
Wednesday 22 February 2012
Turnstar deal in Tanzania drives BB Botswana’s boldest move into Africa yet
Sunday Standard:
“Two years ago, a decision was taken at Barclays to enhance internal expertise. There are many new people inside the bank who are easily the top talent on the local market. This latest transaction is proof that Barclays has become thought leaders on corporate transactions.”
He said the size of the transaction also went a long way to demonstrate that Barclays Bank Botswana was well capitalized.
Because of exposure to currency fluctuations and cross border uncertainties, a decision has also been made to hedge the transaction to the United States Dollar.
When it is complete, the Mlimani City will boast High end residential houses, a world class conference facility, a shopping mall as well as office space. The City will be built adjacent to a university campus.
The transaction execution date is tomorrow (Monday).
“It is important to point out that this was an open bid. It is not like Barclays Bank Botswana got any preferential treatment,” said Mogami.
The bank was appointed through the independent advice tendered by Investec South Africa.
“It is a pretty bold move to go with a deal of this quantum with a client who is not even your traditional customer. It goes to also show our faith in the fundamentals underlying Turnstar Holdings as a business. Any deal of this magnitude is ideally syndicated, but we were confident of the promoters behind Turnstar Holdings,” said Mogami.
He continued that the fact that the Bank of Botswana has approved the deal also went a long way to show that Barclays Bank Botswana had got its fundamentals right.
“The regulator also approved the deal thereby attaching a seal of confidence on our ability to handle this deal alone,” he said.
“Two years ago, a decision was taken at Barclays to enhance internal expertise. There are many new people inside the bank who are easily the top talent on the local market. This latest transaction is proof that Barclays has become thought leaders on corporate transactions.”
He said the size of the transaction also went a long way to demonstrate that Barclays Bank Botswana was well capitalized.
Because of exposure to currency fluctuations and cross border uncertainties, a decision has also been made to hedge the transaction to the United States Dollar.
When it is complete, the Mlimani City will boast High end residential houses, a world class conference facility, a shopping mall as well as office space. The City will be built adjacent to a university campus.
The transaction execution date is tomorrow (Monday).
“It is important to point out that this was an open bid. It is not like Barclays Bank Botswana got any preferential treatment,” said Mogami.
The bank was appointed through the independent advice tendered by Investec South Africa.
“It is a pretty bold move to go with a deal of this quantum with a client who is not even your traditional customer. It goes to also show our faith in the fundamentals underlying Turnstar Holdings as a business. Any deal of this magnitude is ideally syndicated, but we were confident of the promoters behind Turnstar Holdings,” said Mogami.
He continued that the fact that the Bank of Botswana has approved the deal also went a long way to show that Barclays Bank Botswana had got its fundamentals right.
“The regulator also approved the deal thereby attaching a seal of confidence on our ability to handle this deal alone,” he said.
For his part, the Managing Director of Turnstar Holdings, Jacob Motlhabane, said the directors of Turnstar look forward to the conclusion of the transaction and the amalgamation of Mlimani into the Turnstar Holdings Group.
“We are grateful for the support from our existing and new shareholders, who have enabled us to accomplish such an extraordinary milestone in the history of Turnstar. The Board and management are excited about the acquisition of Mlimani, as it represents a tremendous opportunity, not only to strategically enhance shareholder value and strengthen our competitive market position but also represent a catalyst for the transformation of Turnstar into a Pan-African property champion. We are thrilled to expand our presence into one of the strongest growing markets in Africa with a truly unique asset that is the premier retail destination in Tanzania. With the innovation and leadership of the Turnstar Board and the dedication and hard work of our employees, we are confident that the acquisition will be seamlessly integrated into our business,” said Motlhabane
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StanChart camps out at the securitisation BISTRO – Part 1
FT Alphaville: "The transaction is called “synthetic securitisation”. The bank buys protection on the credit risk of part of its own loan portfolio, sold by outside investors. They transfer the risk but the loans themselves physically remain on Barclays’ balance sheet.
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BOB maintains lending rate
Weekend Post: "“The current state of the economy and the inflation forecast, suggest that maintaining the prevailing level of interest rates is consistent with the achievement of the Bank’s 3 - 6 percent inflation objective in the medium term,” the bank said in a statement.
“Going forward it is expected that the non mining Gross Domestic Product (GDP) will be below potential in the medium term and will therefore moderate inflationary pressures”, further reads the statement.
Domestic output is estimated to have increased at an annual rate of 4.1 percent in the year to September, 2011, reflecting an increase of 6.8 percent for non mining sectors while mining output fell by 1.7 percent."
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“Going forward it is expected that the non mining Gross Domestic Product (GDP) will be below potential in the medium term and will therefore moderate inflationary pressures”, further reads the statement.
Domestic output is estimated to have increased at an annual rate of 4.1 percent in the year to September, 2011, reflecting an increase of 6.8 percent for non mining sectors while mining output fell by 1.7 percent."
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RPC Data forecasts return to profit
Weekend Post: "“Elimination of intercompany deficiencies, improved debt collection techniques and improvement of treasury management initiatives have resulted in maintenance of a strong balance sheet position”, a statement accompanying the half year results reads.
The company’s newly appointed managing director Robert Pool also announced that the group is finalising the closure of its subsidiaries in Zambia, Uganda and India as it looks to the second half of the year for improved results.
“Statutory requirements are being undertaken to finalise the closure of these branches in the respective countries,” a joint statement signed by the acting chairman, Emeldah Mathe and managing director Robert Pool reads."
The company’s newly appointed managing director Robert Pool also announced that the group is finalising the closure of its subsidiaries in Zambia, Uganda and India as it looks to the second half of the year for improved results.
“Statutory requirements are being undertaken to finalise the closure of these branches in the respective countries,” a joint statement signed by the acting chairman, Emeldah Mathe and managing director Robert Pool reads."
Sunday 19 February 2012
Rand gets its second facelift at age of 51
Business LIVE
"The process of redesigning banknotes normally takes between 12 and 24 months," said the bank's head of strategy and communications Hlengani Mathebula.
"The governor of the Reserve Bank appoints a committee to manage the development of the new note series.
"Members of the committee are selected from different functional departments in the bank. The development processes are done in different stages with the involvement of external and internal stakeholders," said Mathebula.
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