Botswana calls for IPPs to add 600 MW

7 May 2013 - The government of Botswana has issued a call for Independent Power Producers (IPPs) to submit expressions of interest, as the country plans to add a further 600 MW to its electricity generation capacity

Half of this future 600 MW is to come through the addition of a further two units to the four unit 600 MW Morupule B power station, which is still being completed. The other 300 MW is for an open ended greenfields development anywhere in Botswana. Though Botswana has significant coal resources, and it makes this option an obvious choice, the greenfields 300 MW baseload power station theoretically could be supplied from other energy sources.

The Botswana government says factors such as technical and financial capability, work experience and qualification of top personnel and proposed capital and operating costs, will be key in deciding the winners of the two 300 MW tenders.

Firestone Diamonds plc: 14,673 carats of diamond sold by tender in Botswana, for gross proceeds of approximately $1.6 million

Philip Kenny, CEO of Firestone Diamonds, commented: “The successful completion of our first tender is a major milestone for Firestone and marks the completion of our transition into one of only three listed junior kimberlite producers worldwide. We are very pleased that the prices achieved for both Liqhobong and BK11 production were higher than expected, and we believe that further price increases will be achieved for production from both of these mines in 2011.”

I can fix BMC, says Tombale

Not only are his leadership skills and experience at his advantage, half of the board members who were believed to be at the heart of the problems at the state abattoir have been shown the door, after it was established that they were doing business with BMC, engaging in serious cases of conflict of interest.

Speaking in an exclusive interview yesterday, Tombale outlined his mission and expectations. "I can say half of the old board members are no longer there.

With my leadership skills, I should be able to manage the board, because I know what is expected of a board. As CEO you manage both the employees and the board," he said.

Careful not to ruffle feathers unnecessarily during the hour-long interview, Tombale however accused the media of blowing the situation out of proportion in that the recent reports have alarmed the customers both at home and abroad.

He said the media reports had also instilled a sense of uncertainty among BMC employees and local farmers, but things are beginning to stabilise.

"You guys should know that your reports are not local anymore as they are read across the world. So they really put pressure on us," he said.

No job losses from shell pull out-CA

"On completion these two companies will become part of Vivo Energy, joining the eleven companies that have previously transferred. The final countries that are included in this transaction will transfer to Vivo Energy later in 2012, subject to local regulatory and legal approvals," said Vivo.On final completion of the complete transaction Vivo Energy will operate more than 1300 retail stations across Africa under the Shell brand and will have access to around 1.2 million cubic metres of storage.

MVA Fund crowned best company to work for

Deloitte recognised both FNBB and MVA Fund for achieving a mean-score in excess of the standard of excellence threshold.
In an overall statement, Deloitte said despite the threat of a double dip recession, many organisations were unaware of the gap between "the attitudes and desires of their employees and the talent strategies and practices they have adopted".
"The reality is that rising levels of workforce disengagement combined with increasing turnover intentions, which have built up slowly but steadily during the recession, may in fact impact companies across the very business units that they are relying on to drive growth and innovation," the global financial advisory firm said.
The statement continued: "To compound this situation even further, the general sentiment amongst employees we have surveyed suggests that their employers are not doing a good job at implementing their talent strategies."
Project director, David Conradie said the survey had become an "empirically validated measure of employee experience," adding that many long term participants had incorporated its results into the human capital strategies.
"From an initial benchmarking exercise, now companies get very rich, valuable and granular level detail about their employees and how they view them as employers," he told the Deloitte SA blog.
"At first companies came in interested in how they compared against the market but there has been a shift over the years and many have found this survey to be a successful inclusion in their broader human capital initiatives."
Representatives of this year's survey winners will meet at the annual conference to be held on November 15 at Monte Casino in Sandton, Johannesburg.

Personal Banking - Bancassurance - Tshidiso Funeral Plan - Standard Chartered Bank Botswana

Tshidiso Funeral Plan

Coverage

This is a stand-alone policy

• There is no investment portion.
• Provides life cover for the immediate and extended family.
• It covers the following persons:
  1. Main Life Assured
  2. Spouse
  3. Max of 6 children
  4. Max of 4 parents
  5. Max of 15 extended family members

Features

• Minimum Total premium of P80.00
• Flexible levels of cover
• Equal number of units per group
• Minimum Cover of P10 000.00 for main life
• Covers up to 27 family members
• Transferable to a covered adult member (not Child)
• Automatic premium update of 5% OR optional 10% update.
• Benefits update at 60% of premium update.
• In-built premium waiver on death or disability of main life
• 10% cash back benefit every 5 years
• No medical underwriting

Limitations

• 6 months waiting period on natural deaths.
• No waiting period on accidental death.
• 24 months waiting period on waiver of premium on natural death and disability benefit
• Policy ceases at age 65 if not transferred
• No loans or encashment.
• The waiver of premium on death and disability benefit applies to the main life only
• Waived benefits are payable to the date at which the main life assured would have reached the age of 65.

Waiting Periods

From the date of joining and this applies to the main life assured and any COP that may be added to the policy.

• Increases in cover.
• Reinstatements.

Cash Back Benefits

• Payable every 5 years if policy is in force at the time and W.O.P is not in effect.
• Equals 10% of the premiums paid over the 5 year period (excluding policy fee).

Waiting Periods

• After age 50 before age 65
• Can choose any adult member of the policy
• No changes to the benefits or premium.
  1. Failure to transfer, the policy ceases at age 65 of the main life assured.

Former Botswana Prez Festus Mogae Praises Rawlings

Mr. Mogae said he was convinced that the forthcoming Presidential and Parliamentary elections in Ghana would be peaceful, stating that he had no sense of ‘trepidation’ about the conduct of the process.

“We must agree to disagree in peace,” he stated in a meeting with President Rawlings at his Ridge office on Monday.

The former Botswana leader commended President Rawlings for helping to institute the Fourth Republican constitution, submitting to it twice and handing over after his mandate had expired.

President Mogae who was leader of Botswana from 1998 to 2008 is in Ghana to deliver a lecture on Credible Elections and Governance in Africa under the auspices of the Center for Democratic Development (CDD) on Tuesday, October 9.

Botswana fuel under security escort

While government is leaning on oil companies to increase their rail imports, a snap survey last week suggested a continuing reliance on road transport. "At the moment, the situation is more or less the same because oil companies are receiving fuel by road, road tankers continue to load from the depots in Republic of South Africa under escort," the EAD statement read.

"We will be able to have a complete picture of the levels of use of road and rail by the end of the month, as new diverted rail deliveries are only just beginning to arrive."

The department said by April, 4.3 percent of the country's annual fuel imports were coming via alternative routes through Mozambique and Namibia. "The goal is to have this amount increased to at least double. Efforts to procure fuel from alternative routes by the oil companies are well underway," the statement said.

Meanwhile, weekend media reports from South Africa painted an increasingly dark picture of the strike by South African drivers. Business Day quoted trade union leaders as saying they intended to intensify their actions to force a concession from employers.

"We are talking to our members in the ports and rail sectors to join in a secondary strike. Import and export at ports will be shut down," South Africa Transport and Allied Workers' Union secretary-general Zenzo Mahlangu was quoted as saying.

Australian Copper Producer With Mines in Botswana Eyed by China

Australian copper producer Discovery Metals Ltd., which has mines in Botswana, is being eyed for acquisition by Chinese private equity firm Cathay Fortune Corp. for A$830 million ($848 million).

The Chinese firm, which currently controls 13.7 per cent of the ordinary shares of Discovery Metals, offered A$1.70 a share in cash for the remaining stock that it does not own yet in Discovery. The bid, which is 17 per cent higher than Discovery's closing price on Oct. 3, would mean that Cathay Fortune would take up 75 per cent of the copper producer, while the China-Africa Development Fund the remaining 25 per cent.

Sub-Saharan Africa Seeks Affordable, High-Quality Mining and Oilfield Water Treatment Chemicals, Says Frost & Sullivan

"Direct linkages between suppliers of water and wastewater treatment chemical suppliers and end users, without relying on middle-men, can reduce the likely bottlenecks which could result from delays in the supply chain," said Zingoni. "The direct link with suppliers enables end users to obtain treatment chemicals which are customised to be able to treat the water and wastewater used and discharged by the mines and oil wells."

Linkages between local producers and distributors with international corporations will, moreover, enable access to well-developed technologies. Proximity to end users will also be important in order to provide effective support services.

"Price and quality will be the key considerations for end users in the SSA markets," concluded Zingoni. "The provision of high-quality products and services at affordable prices will also help companies establish brand loyalty and capture market share."

Africa needs China's positive investment, says Botswanian expert

"I don't agree that China's investment in Africa is something to do with 'new colonialism' or 'pillage of natural resources.' It is more economic rather than political," Jefferis said.
It is a natural response of capital to the chances of market, he said.
Recent years saw rapidly growing economic activities between China and Africa, and statistics show trade volume between China and Africa stood at 166.3 billion U.S. dollars in 2011, up 83 percent from 2009.
And in 2011 China's direct investment in Africa jumped 60 percent to 14.7 billion dollars from 2009.
Jefferis said African countries need investment to improve their infrastructure and markets for their natural resources.
"China's demand for commodities has reversed the long-term decline in global commodity prices -- to Africa's enormous benefit. Export volumes are up -- but export values are up even more," he said.
Jefferis said Africa has benefited from Chinese-led commodity "super-cycle" by exporting expensive commodities and importing cheap goods.

Ormil Energy expands Botswana petroleum portfolio

Ormil Energy (ASX: OMX) continues to expand its Botswana petroleum acreage with the award of a new exploration licence covering 23,700 square kilometres in the Ngamiland and Central districts.

Botswana's Uranium Prospect

"We are privileged to have a team that includes some of the best metallurgists in the world working on optimizing our metallurgical processing and this result is a credit to them," he added.

Iron ore find rekindles railway need

In July this year Dr Michiel de Wit, president of Tsodilo Resources, a junior miner listed on the Toronto Stock Exchange in Canada, got up at the Capital Resources annual meeting on the mining sector in Gaborone and said that his company had found "more than a billion tonnes of high-grade iron ore" in northern Ngamiland, not far from Shakawe in northwest Botswana.

DEF Presents $75K Check to Botswana Top Achievers Program

The funds were the result of a ''Salute to Botswana, Diamonds Empower Africa'' event held in Washington, D.C., this past June co-hosted by DEF and the Embassy of the Republic of Botswana. Phyllis Bergman, DEF board president, reaffirmed the importance of the event.

''Botswana is a shining example of the positive impact diamonds have on communities when good governance is coupled with wise management of natural resources. Not only does Botswana manage is natural resources well, it also embraces its most important natural resource, its youth, through the Top Achiever Program. This mirrors the mission of DEF and we are thrilled to contribute to this amazing program,'' Bergman said.

Sandvik appoints Pilot Crushtec exclusive territory distributor

“These are territories we can practically reach at this moment. If there are opportunities further north in Africa, we would look into Kenya, Rwanda, Burundi, but that is only in the future,” Pilot Crushtec CEO Sandro Scherf said.

Pilot Crushtec would take over the regional distribution of Sandvik’s full range of mobile crushing and screening products, facilitating the company’s entry into valuable new markets.

Scherf said that this was “without doubt an onwards and upwards decision”. “Some of our customers are looking for a larger range of equipment, including increased crushing capacities, and we are giving them exactly that.”

By sizing up its range in terms of products and increased output capacities, the new agreement meant that the 20-year Pilot Crushtec and Terex Finlay strategic alliance has now been ended.

“It would be functionally impossible for the company to carry both ranges, but strategies are already in place to cater for current users of Terex Finlay products,” Scherf noted.

Swaziland Consults With Botswana On Diamond Laws

"We consulted with Botswana because we know that this country is one that is moving and developing its mining in a way unlike the rest of Africa where resources are simply shipped out," he said.  "Botswana helped in the drafting of the legislation and policies for diamond mining. We invited Botswana as one of the stakeholders we consulted with in the process of updating our policy framework."

Ntshalintshali explained that until 1997, Swaziland used to have an open cast diamond mine, which closed when its operator found the costs of going underground unviable. The regulatory framework and KPCS membership are designed to pave way for the revival of diamond mining activities, said the report.

"We had laws but they became outdated and did not take the prevailing environment and international trends into account," explained the engineer. "We thus had to review these, starting with consultations with the various stakeholders from the public to the industry and others. Botswana came in during these consultations."

Botswana Stock Market Commentary – Week Ending October 5, 2012

Turnover came in at BWP 40.9m in the three day trading week owing to the independence holidays on Monday and Tuesday. Trading was boosted by a block trade of 26m Letshego (flat, BWP 1.40) shares yesterday. Letshego generated 90% of market turnover. Choppies (+1.7%, BWP 1.83) was the lead gainer and New African Properties (-2.3%, BWP 2.10) the lead decliner. The domestic index closed 0.4% firmer at 7,415.

The shortage of fuel surfaced in Gaborone this week as the on-going strike by majority of unionized truck drivers in South Africa hit distribution lines to Botswana. A snap survey of filling stations in the city revealed that most did not have petrol products whilst diesel was also running out. Fuel shortages are reported to have started last Friday. Botswana sources nearly all of its petrol from South Africa with 60% entering the country via and the balance through rail. A report by the ministry of minerals energy and water resources released last week however shows that fuel retailers are increasingly switching to rail.

SPGC hosts Stanbic Bank golf tourney

Banks do not often go to areas where the economy is troubled. It (bank's move) goes to show that there is still hope for the economy of Selebi-Phikwe," said Moitlhobogi, a golfer of note. A golfing teenage sensation Leroy Pearmain, who appears set to dominate the golfing scene for sometime after managing to win an overall gross at the recent Phakalane Independence tournament, will be in the thick of things once again.

Recently, Stanbic Bank sponsored two golf tournaments - the Botswana Investment and Trade Centre (BITC) and Botswana Golf Union (BGU) prizes amounting to P50, 000 and P40, 000 respectively.

AB flights to infuse tswana culture

Guest speaker President Ian Khama summed it like this: "It is not just  just about Tourism ... it is more about the country and its diverse economic landscape; its culture and heritage; governance structures; exports and more importantly its people...it is about the citizens of that country, incorporating the civil society, the private sector, rural and urban based institutes in varying sections... it  is not just about the logo and tag-line: it is about who we are and what we stand for... A brand is a promise and we should all live up to the promise and fulfil it".

Botswana's consumer inflation slowed to 6.6% year-on-year in August

Reuters reports that Botswana's consumer inflation slowed to 6.6 percent year-on-year in August, its lowest in more than two years, compared with 7.3 percent in July, the Central Statistics Office said.

Stanchart profits dip on higher expenses

"The increase in operating expenses is attributed to our accelerated investment as the bank spends on service delivery training and customer channels. During the period, the bank opened a new branch at Airport Junction Mall. We also opened a 24-hour full service call centre - the only one in the market," said the bank in a statement that accompanied the results.

Driven by a healthy 11 percent rise in interest income as the loan book grew by 8 percent to P4.5 billion, Standard Chartered's operating income rose from P419 million to P433 million.  Loans and advances to other banks rose significantly from P129 million to P920 million.

In an attempt to manage liquidity, in a market that has to deal with an extra P5 billion due to the central bank's open market operations interventions, Standard Chartered Bank say they have taken a strategic decision to cut down on deposits.

The Bank of Botswana late last year moved to constrain Bank of Botswana Certificates (BoBCS) to P10 billion from as high as P15 billion in 2010,stressing their cost and the need for banks to innovate "alternative bankable projects."

"Deposits from non-bank customers reduced by 19 percent to P7.3 billion, as a result a strategic action to manage excess liquidity and reduced margins. On the other hand corporate and institutional deposits in the first half of the year recorded a 31 percent decrease. The intervention of the central bank late last year resulted in excess liquidity and up to a 200 basis points reduction in rates," read the statement.

AFR tests coal export route with 1,000 tons

The export arrangement with Botswana Railways also illuminated the way for other players in the local 212 billion tonne coal sector to the lucrative Indian and Chinese markets. In a webcast last week, AFR managing director, Frazier Tabeart said the company was evaluating a 1, 000 ton trial shipment in order to "study the optimisation of current rail and port capacity". "We believe that currently, there's a real opportunity for Botswana to become an exporter of coal in the short term," he said.

"We did a successful trial shipment of coal to Maputo and we are looking at how that route can be improved from an operating efficiency point of view." AFR and other advanced coal sector players view Mozambique as the gateway to lucrative Chinese and Indian exports, the two economies being the world's most voracious consumers of the energy mineral.

By ramping up its trial shipment from 25 to 1,000 tonnes, AFR hopes to gradually test the logistics and infrastructure in place for expanding its exports through Mozambique, ahead of the commencement of commercial mining operations at Sese.

Besides the coal export project, Tabeart said tenders for advanced studies on a 1.5 million ton per annum (Mtpa) coal mine had been awarded, with final delivery of the Bankable Feasibility Study due by the end of March next year. The 1.5 Mtpa coal mine is part of the Sese Integrated Power Project, and will fire the initial 300-megawatt power station, for which AFR recently signed a non-binding Memorandum of Understanding with a regional power offtaker.

Bank of Botswana : Inflation falls to 6.6 percent in August

In August, headline inflation, as measured by the Consumer Price Index (CPI), fell to 6.6 percent from 7.3 percent in July. Inflation decreased in several commodity groups, including: food (from 8.0 percent to 7.8 percent); housing water, electricity, gas and other fuels (from 7.4 percent to 6.8 percent); furnishing, household equipment and routine maintenance (from 7.4 percent to 7.1 percent); transport (from 11.1 percent to 7.6 percent, where a fuel price increase in August 2011 fell out of the calculation); and miscellaneous goods and services (from 1.5 percent to 1.1 percent). However, this was partially offset by higher inflation for: clothing and footwear (from 6.1 percent to 6.6 percent); recreation and culture (from 5.1 percent to 5.7 percent); and restaurants and hotels (from 6.5 percent to 6.8 percent). Inflation remained unchanged for alcoholic beverages and tobacco (7.1 percent), health (6.4 percent), communication (0.6 percent) and education (6.4 percent).

NOCAL Warned Oil Expert Wants Botswana’s Steps Followed

The director of the International Growth Center (IGC), Paul Collier has admonished the Government of Liberia through the National Oil Company (NOCAL) to follow the positive examples of the Southern African state of Botswana in order to succeed from oil deposits.

Mr. Collier, who is currently in the country at the invitation of NOCAL, told a cross-section of entrepreneurs and business executives yesterday that it is important to institute necessary policies that Botswana used in driving her economy to a better standard other than following others that currently face crisis in handling their natural resources.

He stated that in order for Liberia to be successful in the equitable distribution of its oil wealth to all its citizens, NOCAL needs to prioritize the building of private sector capacity, instituting better rules governing the oil sector and continued engagement with local business by developing them.

“Oil is a signal for attracting investment to the country and if you manage its deposits well, you will attract investments from all around the world.”

“You have to put in place the best policies that will govern the sector and implement those policies,” said Mr. Collier.

Implications of exporting to SA

According to the South African Chamber of Mines, "Assuming growth rates of between three and five per cent, the coal used by 2030 - when estimates suggest electricity demand is likely to peak at 75 000 megawatts - together with coal dedicated to future use by power stations either operating or under construction in 40 years' time, amounts to a staggering 30 billion tons, about half of the country's reserves". Even with the growth of the new coal fields in the Waterberg, one can well understand why South Africa would want a supply agreement with Botswana. For many years, President Khama and his predecessor President Festus Mogae, had tried to convince the South African government to allow Botswana to export electricity. CIC Energy, the owner of Mmambula coal deposit until it was sold to Jindahl Steel last week, had long had a business model where it would generate electricity to a power hungry South Africa. Initially, the plan was for a 3,000MW power station which was not going to be acceptable to Eskom.

Shortage of milk looms in Botswana

"The government has found a market for Zone Seven cattle in South Africa. The cattle will be slaughtered at the Francistown Botswana Meat Commission (BMC) abattoir. Before proceeding to the abattoir, the cattle will be quarantined at Sefophe Artificial Insemination (AI) camp," said Molebatsi. The Assistant Minister said the restocking exercise in Zone Seven is still suspended due to drought and it is expected to commence when the conditions improve later in the year. Furthermore, Molebatsi advised farmers to plough more sorghum and beans in the coming ploughing season. He noted that maize is not a good choice because it is not heat resistant.  The Assistant Minister also informed residents that government has increased the price of beans to P700 per 50 kilograms.  He said that it is high time Botswana became independent in food supply. Molebatsi encouraged residents to utilize the government programme of cluster fencing like other villages in Kgatleng. He explained that farmers will be assisted with a fence and a borehole. He pointed out that Batswana must be aware that such programmes only run for a certain amount of time and they must take advantage of them while they still exist.

Botswana, Nigeria oil deal gathers pace

On Wednesday, executives from Spring Well Trade and Investment challenged Trade and Industry Minister, Dorcas Makgato-Malesu to fast-track the proposed P70 million dry port at Walvis Bay in Namibia, as well as lay the necessary policy framework. “We have done the due diligence and we have put together MoUs with oil majors from Nigeria which we have presented to our ministers, but are still struggling to get answers,” the firm’s CEO, Brian Rengasamy told a meeting of Botswana and Nigerian businesspeople. “We urge the minister to look at this because the trade is available but the logistics are not conducive. “We were quite restive with (Botswana ambassador to Nigeria, Clifford Maribe). The concession for the dry port has not been developed and the Trans Kalahari highway, which is the best, is not being fully utilised.”

Rengasamy and company chair, Jackson Nyamambi told Business Week that their due diligence indicated that seaborne oil products from Lagos to Walvis Bay could take nine days, compared to the 21 days and above to Durban, through which nearly all of Botswana’s fuel enters.

“As business, we can do all the business side and create a supply chain, but government must do its responsibility which is infrastructure development and corridors so that there’s a platform for business to trade and invest,” Rengasamy said.