Govt dumps Sinohydro

The Minister of Infrastructure, Science and Technology (MIST) Johnnie Swartz announced yesterday that a 14-day notice of termination served to Sinohydro, expired on Wednesday. Initial completion date for the terminal expansion was scheduled for May 2010. Earlier this year, Sinohydro had pledged to complete the project by end of June 2012, Swartz said at a press conference yesterday. The contract was also terminated because the ministry was dissatisfied with the contractor's performance, according to Christopher Nyanga, principal public relations.

Stanbic, Barclays, FNBB win banking awards

Mmegi: ""With strong resolve, our winners have not merely looked to protect their interests but to secure a solid future for their institutions, investors and, importantly, their customers."The media house said with the global credit market quivering from debt crises in developed markets, the awards paid tribute to institutions that are tackling the tough times with innovative strategies."World Finance has observed how investment banks turn away from turbulent markets and look towards the untapped opportunities of Latin America and Asia to secure growth," the statement reads. "Commercial banks and groups too have been seen to be working diligently to ensure their loan books are healthy and their position in the market and with customers is strong.

Stanchart opens at Airport Junction Mall

Mmegi: He noted that wholesale banking is also a very significant part of Standard Chartered business. "We intend to expand our customer base in this platform, we will bring the right financing and risk management solutions as well as providing appropriate cash management and trade finance that suits their requirements," he said.Standard Chartered Bank is one of few institutions in Botswana offering competitive terms for invoice discounting and purchase order financing which allows customers greater flexibility in meeting their business obligations. "We understand the challenges of the SME sector and recognise the importance the segment plays in spurring economic activity and growth, and we will continue to find innovative ways to support our customers," said Lekaukau.

Stanbic gets Euromoney Award

Zambia Daily Mail: The award includes the financing of the US$80-million for African Rainbow Minerals’ Konkola North copper project in Zambia and more than US$180million for the Boseto Copper Project in Botswana.

Letshego faces growth challenges

Guardian:

Botswana’s gigantic unsecured lending outfit –Letshego must prepare itself for a decline on growth due to market saturation and intensifying competition, a report from Stockbrokers Botswana revealed this week. Historically, the local market has contributed a large chunk of the Botswana Stock Exchanges (BSE) listed company’s revenue. “We are of the view that the Botswana market, which has been the group’s significant market over the years, is now reaching maturity and we expect growth to slow down going forward,” Stockbrokers said in a statement but did not give specific figures on how much Letshego’s performance would be affected financially.  The company offers loans to formally employed clients, mainly government workers. However, the report added that the addition of a promising unsecured lender-Bayport Financial Services-would exacerbate the Pan-African company’s woes. Bayport, which just like Letshego operates in several countries, has grown from one branch in May 2010 to the current ten, with further expansion planned. Like many micro lenders operating in Botswana, Letshego has since started paying Non-Bank Financial Institution Regulatory Authority (NBFIRA) annual levies, which are meant to finance regulation activities. Already the company has parted with 0,5 percent of its loan book for the 2011/12 financial year. Despite challenges in the economy, Letshego’s loan book increased to a historic P3 billion in the year ending January 2012, up by 32 percent when compared to previous reporting period. Botswana, as always, led loan book as it contributed 60 percent of net advances. Meanwhile, in an apparent move to deal with a decline in growth, Letshego has announced plans to enter into the banking area, which will allow it to be able to take deposits. It is still unclear whether it will also offer other services that mainstream commercial banks provide. The bank’s finance director, Colm Patterson, told a local newspaper that they have acquired a new system that will allow for the introduction of retail banking services.  A Botswana Investment and Trade Centre (BITC)-accredited company Letshego has branches in seven African countries including Botswana, Swaziland, Tanzania, Uganda, Zambia, Namibia and Mozambique.  More acquisitions have already been planned by the cash rich company, with a market capitalisation of P2, 7 million at the local bourse. The company is in the process of acquiring Micro Limited Africa (MAL), a financial company with centres in Rwanda, South Sudan, and Uganda and an associated company in Tanzania. Stockbrokers said the acquisition would further boost the company’s growth in the short to long term. In a statement accompanying the company results to January 2012, the company’s Chief Executive Jan Classen said they would tread carefully in their lending approach, since government has announced she will cut workers in the next three years.

STANBIC PROMOTES AGRICULTURE

The Voice: “Stanbic Bank is fully committed to making every effort to cultivating Botswana’s agricultural potential to the greatest extent. Exhibitions such as this, the Pandamatenga Farmers Show, serve as an important tool or avenue through which we can achieve this objective.  We, as Stanbic Bank, are very excited to have been on board,” said Kenneth Makubate, Stanbic Bank Head of Agribusiness.