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."

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.

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."

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.

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.

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
"

'via Blog this'

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.

"

'via Blog this'

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."

'via Blog this'

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."

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.

No certificate, no business with govt - PPADB

Mmegi: PPADB has said any bidder or contractor wishing to do business with the government will be required to have registered with the board and to present the registration certificate when tendering. The PPADB Act states that every contractor has to posses the registration certificate.

BoB holds interest rates steady again

Mmegi Online: "Low growth in domestic demand and the forecast modest external inflationary pressures contribute to the positive inflation outlook in the medium-term. However, in the short-term, inflation is expected to remain above the Bank's medium-term objective range of 3 - 6 percent due to the impact of transient factors."

Botswana Diamonds raises £1.51m

The Irish Times: “The strong support we have received for the placing is a further vote of confidence in Botswana Diamonds’ strategy," said chairman John Teeling. He increased his share in the company to 9.89 per cent, subscribing to 4,175,000 shares in the funding round.

Botswana Stock Market Commentary – Week Ending February 10, 2012 | Afribiz.info

The week closed on a bearish note with a depressed turnover of BWP 11.1m on a volume of 5.2m shares from the BWP 28.9m realized last week. The top trader this week was property stock Turnstar (+2.4%, BWP 1.28) on 2.7m shares worth BWP 3.5m (31.3% of turnover). Banking stock Barclays (+2.9%, BWP 7.10) emerged the top gainer whereas tourism stock Wilderness (-8.1%, BWP 3.40) topped the losers board. The domestic index closed 0.16% firmer at BWP 6984.37.

List of Companies in Botswana - Bloomberg

Bloomberg: Companies listed in Botswana

NAME	SYMBOL	TYPE	SUB-INDUSTRY
ABC Holdings Ltd/Botswana (ABCH)	ABCH:BG	Common Stock	Diversified Finan Serv
African Copper PLC (ACU)	ACU:BG	Common Stock	Metal-Copper
Barclays Bank of Botswana Ltd (BCBB)	BCBB:BG	Common Stock	Commer Banks Non-US
Blue Financial Services Ltd (BLUE)	BLUE:BG	Common Stock	Finance-Consumer Loans
Botswana Diamonds PLC (BOD)	BOD:BG	Common Stock	Diamonds/Precious Stones
Botswana Insurance Hldgs Ltd (BIHL)	BIHL:BG	Common Stock	Life/Health Insurance
Chobe Holdings Ltd (CHOBE)	CHOBE:BG	Common Stock	Leisure&Rec/Games
Choppies Enterprises Ltd (CHOPPIES)	CHOPPIES:BG	Common Stock	Food-Retail
Cresta Marakanelo Ltd (CML)	CML:BG	Common Stock	Hotels&Motels
Discovery Metals Ltd (DIME)	DIME:BG	Common Stock	Metal-Diversified
Engen (ENGN)	ENGN:BG	Common Stock	Oil Refining&Marketing
First National Bank of Botswana (FNBB)	FNBB:BG	Common Stock	Commer Banks Non-US
Furniture Mart (FURN)	FURN:BG	Common Stock	Home Furnishings
G4S Security Services Botswana Ltd (G4S)	G4S:BG	Common Stock	Electronic Secur Devices
Imara Holdings Ltd (IMARA)	IMARA:BG	Common Stock	Invest Mgmnt/Advis Serv
Letlole La Rona Ltd (LLR)	LLR:BG	Unit	Real Estate Oper/Develop
Letshego Holdings Ltd (LETSHEGO)	LETSHEGO:BG	Common Stock	Finance-Consumer Loans
Lucara Diamond Corp (LUC)	LUC:BG	Common Stock	Diamonds/Precious Stones
New Africa Properties Ltd (NAP)	NAP:BG	Common Stock	Real Estate Oper/Develop
Primetime Property Holdings Ltd (PRIMETIM)	PRIMETIM:BG	REIT	Real Estate Oper/Develop
Sechaba Breweries Ltd (SCHB)	SCHB:BG	Common Stock	Brewery
Sefalana Holding Co (SFLN)	SFLN:BG	Common Stock	Investment Companies
Standard Chartered Bank Botswana Ltd (SCBB)	SCBB:BG	Common Stock	Commer Banks Non-US
Turnstar (TURNSTAR)	TURNSTAR:BG	Common Stock	Real Estate Oper/Develop
Wilderness Holdings Ltd (WIL)	WIL:BG	Common Stock	Travel Services

LETSHEGO Income Statement - Letshego Holdings Ltd - Bloomberg

Income Statement for Letshego Holdings Ltd (LETSHEGO)

Letshego Holdings Ltd on Bloomberg

Interactive Stock Chart for Letshego Holdings Ltd (LETSHEGO)

Botswana Metals in rights issue to raise cash for exploration

Sunday Standard: “The funds will be used to continue exploration at BML’s three discovery areas at Airstrip Copper, Maibele North and Dibete,” Botswana Metals said.

“The funds will also be used to test additional new targets identified as VTEM anomalies to the East at Takane (PL54/98) and cash for general working capital requirements over the next 12 months,” it added.

BIHL CEO brings new opportunities and businesses to the group

Sunday Standard: “We must anticipate their needs quickly, provide exceptional service and ensure our products add value to the customers,” he says. Hassam says his plans of bringing the organization in order to sustain BIHL's contribution to the country's development at the highest level includes the growth of the BIHL Group by bringing new opportunities and businesses to the BIHL stable.

“My job is to provide leadership to the BIHL Group to ensure shareholder growth in value in a responsible and sustainable manner and be the steward to the BIHL assets and interest,” he explains.
According to Hassam, there will obviously be pressure for anyone in the CEO’s role.

“I, however, am comfortable in handling the pressure; this is due to the highly experienced and competent team we have at BIHL; support we have from our valued customers, of which am thankful and as a result of the supportive stakeholders,” he states.

African Copper secures additional funding from ZCI

Sunday Standard: “USD1 million will be invested in increasing the trucking of ore from the nearby Thakadu deposit to the Mowana facilities, USD2 million will be invested in a Larox Filter to be installed at Mowana to reduce moisture content in exported concentrate and USD2 million of the Facility will be used for general working capital purposes,” the company said.

Botswana exports record amount of diamonds in 2011

gabzfmnews: diamondsOfficial figures indicate that Botswana exported a record amount of diamonds, worth 4.34 billion dollars last year.

Firestone Diamonds down despite positive update on operations | 7 February 2012

Stock Market Wire: Shares in Firestone Diamonds (LON:FDI) fell despite a positive update on its operations in Lesotho and Botswana and the sale of all the goods on offer at its rough diamond tender.

Chief executive Tim Wilkes said: "We are very pleased with the performance of the plant at Liqhobong over the past two months.

"We are implementing a programme of continued improvement and enhancement to maximize the recovery of diamonds and we are confident that we will see positive results over the coming weeks.

"The performance of the mineral resource has been outstanding with respect to grade, mine call factor and diamond assortment.

"The recovery of three plus 100 carat diamonds, albeit broken, confirms Firestone's conviction that the resource has the ability to produce much higher value diamonds than recovered to date.

"These positive indicators bode well for Firestone as we shift our focus towards phase 2 of the project, being the development of a world class diamond mine and a purpose built plant facility."

Shares in Xstrata (LON:XTA) were also down after it agreed an all-shares merger with Glencore that would create a $90bn natural resources group.

Xstrata's operating businesses and Glencore's marketing functions will continue to operate under their existing brands.

It is proposed that the combined entity will be called Glencore Xstrata International, listed on the London and Hong Kong Stock Exchanges, with its headquarters in Switzerland and will continue as a company incorporated in Jersey.

Xstrata chief executive Mick Davis said: "A merger between Glencore and Xstrata offers a unique opportunity to create a new business model in our industry to respond to a changing environment.

"It is the logical next step for two complementary businesses, each with an outstanding track record of shareholder value creation, entrepreneurial management and a proven ability to spot valuable opportunities and capitalise on them."

Norilsk Boosts African, Australian Nickel to Cut Russia Reliance

Bloomberg: The company is preparing to start its Honeymoon Well project in Australia, with a designed capacity of 40,000 tons of nickel a year, and is working to expand resources at its Tati Nickel project in Botswana, according to the statement.

Downsizing will impoverish Batswan

The Botswana Gazette: Dr Keitseope Nthomang, senior lecturer at UB and social policy specialist concurred that downsizing is going to impoverish the poor. “They will fall back into the social safety net system which is currently not being sustained, and as such there will never be empowerment. The government is inefficient and cutting of jobs is not being productive,” said Nthomang. He pointed out that emphasis by the government should not be about money but efficiency, productivity and the impact.

Tourism earned P1 billion during festive season

The Botswana Gazette:

This year’s World Wetlands Day theme was, ‘Wetlands and Tourism a Great Experience - Responsible Tourism Supports Wetland and People’. Mokaila said the revenue earned through tourism last Christmas showed that the industry was a force to reckon with as the government tries to diversify the economy.

About 150,000 Batswana living around the Okavango Delta make a living from tourism and activities around the delta. “There has to be a balance between development and conservation because wetlands like the Okavango Delta and Chobe River bring life to the people near them. We need to draft a policy that ensures sustainable management of the local wetlands because of their good tourism,” he said.

CIC dismisses hostile takeover claims

BG reporter TSX and Botswana Stock Exchange (BSE)–listed CIC Energy has reaffirmed its commitment to Mmamabula Energy project with its president dismissing comments that the company was selling its crucial project to an Indian energy company. “There is this misconception that we were selling the project. We were contacted by JSW. We considered it and we agreed,” CIC Energy president, Gregory Kinross said Tuesday in Gaborone. In June 2011, Kinross bowed to intense political pressure and withdrew CIC Energy planned bid to engage in a US$418 million all-cash-offer from Indian power utility giant, JSW Energy. When government declined to sign crucial acquisition documents allowing a hostile takeover, the Bombay Stock Exchange-listed energy giant pulled out of the deal. On Tuesday, Kinross could not explain the decision to abandon an 8-month pursuit by JSW, but reiterated his commitment to the 300-mega watts (MW) coal-fired energy project in eastern Botswana. “The deal fell through,” he said on the sidelines of a one-day coal conference, which sought to update investors on the latest developments on coal mining and exploration in Botswana. Analysts say the decision to abandon the P10 billion Mmamabula coal-fired energy project was motivated by South Africa’s decision to opt out of energy import from Botswana. This forced CIC Energy to restrain its ambitions to export 1200 MW power to South Africa, following developments in May 2011 that a second Integrated Resource Plan in South Africa did not provide any opportunity to supply power to South Africa. This saw the company almost putting the ambitious Mmamabula Energy project on hold. In 2008 the Toronto-based energy giant completed a feasibility study on the proposed 1600 kilometre railway project to transport coal to a seaport. Coordinator of the Transport Hub, Thapelo Leareng, explained that the P60 billion coal transport project intends to involve the private sector in the development of both the railway and the port. With over 210 billion tonnes of coal reserves, government is keenly eyeing an opportunity to export 90 million tonnes of coal annually mostly to satisfy Asia’s insatiable appetite for energy. “During the first year, we want to transport 25 million tonnes, rising to 65 million in five years to make the project feasible,” he explained. Government expects to achieve its 90 million tonnes target in the next 10 years. Leareng explained challenges associated with transporting millions of tonnes of coal to a seaport. The government has an option of using the Trans-Kalahari railway route dubbed the Mmamabula-Gobabis-Walvis Bay route, which is estimated to cost over P67 billion (or US$11.16 billion). Leareng is aware of the many conservation and environmental challenges associated with constructing a 1600 km railway line. Government has also signed three Memoranda of Understanding with Mozambique and Zimbabwe regarding the proposed Porta Techobanine Project in Mozambique. To Kinross, the main point is about ensuring that coal reaches its intended destination. He explains that CIC Energy is prepared to assist government. “We don’t care which route, we are ready. We completed pre-feasibility study in 2008. We are very committed to the project.” Coal prices remain stable despite high demand from Asia, especially from China.

Lotsane Dam is complete

By Kgotsofalang Botsang PALAPYE - The country's sixth largest dam is complete. The Maunatlala-based Lotsane Dam, with a water holding capacity of 40 million cubic metres, is expected to benefit 22 Tswapong villages. The tender for the dam construction was awarded to Sinohydro Corporation in January 2009 at the cost of about P724 million. The project's resident engineer, Mr Moghes Mekonen said in an interview that the dam had started holding water, however he said since the catchment area had not experienced heavy rainfall, the water was not enough. "The dam is filling up but it has not reached a level where we could start supplying water to the 22 identified villages." Mr Mekonen said construction of the 1.4km dam and associated works such as the 180m wide spillway, an irrigation pipeline and a pump station were complete. "Each and every stage of the project was supervised and we applied quality control measures," he said. The dam was initially expected to be complete by October 2011 but the date was extended to December 2011. The dam is also expected to drive the promotion of economic diversification and uplift the socio-economic status of the local communities through the provision of irrigation water for a horticultural project covering 250 hectares. BOPA