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BTC inks deal projected at reducing digital divide

Botswana Telecommunications Corporation Limited BTC has once again inked collaboration with Spacecom to double its capacity on Amos-7 communication satellite KU-beams. With this new capacity, BTC is adding cellular backhaul and various long-distance communication services to enhance rural areas connectivity.

AMOS-7’s KU band and beams enable mobility by providing high data rates for communications-on-the-movie irrespective of location in the country. Thus, BTC is able to offer e-learning, e-health, e-commerce and other e-government services to residents countrywide wherever they are, even when they are travelling.

According to a communiqué from the group, the capacity also allows BTC to provide improved broadband service to industries operating outside major towns, such as tourism, agriculture, construction, banking and offer community WI-FI hotspots, safer cities, smart farming and business continuity services throughout the country. Spacecom’s vertical solution division is working closely with the company to assist in implementation of infrastructure for the new services.

BTC Managing Director, Anthony Masunga said: ‘’once again we are working with Spacecom to bolster our business offerings. BTC is adding new and exciting services that will go far to reduce our country’s digital divide and offer citizens in previously underserved areas more options to communicate throughout Botswana and beyond.

Satellite communication via AMOS-7 is facilitating our growth and fulfilling our purpose, which is to provide superior communication solutions to Botswana anywhere and everywhere to enable them to live connected’’ For his part, Spacecom Chief Executive Officer David Pollack stated that by the end of 2019, his company will have three satellites servicing Africa: AMOS-7, AMOS 4 as well as AMOS-17. He noted that the on-going cooperation with BTC signifies the success of their strategy marrying their satellite’s communications capabilities to the proficiency of their vertical solution division’s to deliver superior turn-key solutions with their partners.

Meanwhile, BTC signed a partnership with Ngwana Enterprise on a mission to empower and develop digital start-ups. Ngwana Enterprises is a local digital entity that focuses on digital and ICT talent development, and mostyly on e-learning. The enterprise’s main focus is mentoring students and teachers on coding, digital literacy and education. BTC’s infrastructure is acting as a backbone in digital transformation projects that the enterprise is working on.

In partnership with Ngwana enterprise, BTC recently hosted Live Digital Session-Botswana on Industry 4.0 with European businessman Henrik Von Scheel which was intended to endow start-ups, business owners and students in Gaborone and Selibe Phikwe. At the event, Masunga said that BTC’s main interest is to empower start-up businesses in different industries through the digital abilities and services.

He added that BTC acts as a vehicle to transformation by collaborating with different institutions as an interface and vehicle of development with the goal of growing the business, noting that they will be at the centre of digital transformation in the country through collaborations with start-ups in the digital industry. Botswana Telecommunications Cooperation Limited is a converged telecommunications operator offering fixed, mobile and broadband services to consumers, enterprises and other licensed service providers.

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Botswana on high red alert as AML joins Covid-19 to plague mankind

21st September 2020

This century is always looking at improving new super high speed technology to make life easier. On the other hand, beckoning as an emerging fierce reversal force to equally match or dominate this life enhancing super new tech, comes swift human adversaries which seem to have come to make living on earth even more difficult.

The recent discovery of a pandemic, Covid-19, which moves at a pace of unimaginable and unpredictable proportions; locking people inside homes and barring human interactions with its dreaded death threat, is currently being felt.

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Finance Committee cautions Gov’t against imprudent raising of debt levels

21st September 2020
Finance Committe Chairman: Thapelo Letsholo

Member of Parliament for Kanye North, Thapelo Letsholo has cautioned Government against excessive borrowing and poorly managed debt levels.

He was speaking in  Parliament on Tuesday delivering  Parliament’s Finance Committee report after assessing a  motion that sought to raise Government Bond program ceiling to P30 billion, a big jump from the initial P15 Billion.

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Gov’t Investment Account drying up fast!  

21st September 2020
Dr Matsheka

Government Investment Account (GIA) which forms part of the Pula fund has been significantly drawn down to finance Botswana’s budget deficits since 2008/09 Global financial crises.

The 2009 global economic recession triggered the collapse of financial markets in the United States, sending waves of shock across world economies, eroding business sentiment, and causing financiers of trade to excise heightened caution and hold onto their cash.

The ripple effects of this economic catastrophe were mostly felt by low to middle income resource based economies, amplifying their vulnerability to external shocks. The diamond industry which forms the gist of Botswana’s economic make up collapsed to zero trade levels across the entire value chain.

The Upstream, where Botswana gathers much of its diamond revenue was adversely impacted by muted demand in the Midstream. The situation was exacerbated by zero appetite of polished goods by jewelry manufacturers and retail outlets due to lowered tail end consumer demand.

This resulted in sharp decline of Government revenue, ballooned budget deficits and suspension of some developmental projects. To finance the deficit and some prioritized national development projects, government had to dip into cash balances, foreign reserves and borrow both externally and locally.

Much of drawing was from Government Investment Account as opposed to drawing from foreign reserve component of the Pula Fund; the latter was spared as a fiscal buffer for the worst rainy days.

Consequently this resulted in significant decline in funds held in the Government Investment Account (GIA). The account serves as Government’s main savings depository and fund for national policy objectives.

However as the world emerged from the 2009 recession government revenue graph picked up to pre recession levels before going down again around 2016/17 owing to challenges in the diamond industry.

Due to a number of budget surpluses from 2012/13 financial year the Government Investment Account started expanding back to P30 billion levels before a series of budget deficits in the National Development Plan 11 pushed it back to decline a decline wave.

When the National Development Plan 11 commenced three (3) financial years ago, government announced that the first half of the NDP would run at budget deficits.

This  as explained by Minister of Finance in 2017 would be occasioned by decline in diamond revenue mainly due to government forfeiting some of its dividend from Debswana to fund mine expansion projects.

Cumulatively since 2017/18 to 2019/20 financial year the budget deficit totaled to over P16 billion, of which was financed by both external and domestic borrowing and drawing down from government cash balances. Drawing down from government cash balances meant significant withdrawals from the Government Investment Account.

The Government Investment Account (GIA) was established in accordance with Section 35 of the Bank of Botswana Act Cap. 55:01. The Account represents Government’s share of the Botswana‘s foreign exchange reserves, its investment and management strategies are aligned to the Bank of Botswana’s foreign exchange reserves management and investment guidelines.

Government Investment Account, comprises of Pula denominated deposits at the Bank of Botswana and held in the Pula Fund, which is the long-term investment tranche of the foreign exchange reserves.

In June 2017 while answering a question from Bogolo Kenewendo, the then Minister of Finance & Economic Development Kenneth Mathambo told parliament that as of June 30, 2017, the total assets in the Pula Fund was P56.818 billion, of which the balance in the GIA was P30.832 billion.

Kenewendo was still a back bench specially elected Member of Parliament before ascending to cabinet post in 2018. Last week Minister of Finance & Economic Development, Dr Thapelo Matsheka, when presenting a motion to raise government local borrowing ceiling from P15 billion to P30 Billion told parliament that as of December 2019 Government Investment Account amounted to P18.3 billion.

Dr Matsheka further told parliament that prior to financial crisis of 2008/9 the account amounted to P30.5 billion (41 % of GDP) in December of 2008 while as at December 2019 it stood at P18.3 billion (only 9 % of GDP) mirroring a total decline by P11 billion in the entire 11 years.

Back in 2017 Parliament was also told that the Government Investment Account may be drawn-down or added to, in line with actuations in the Government’s expenditure and revenue outturns. “This is intended to provide the Government with appropriate funds to execute its functions and responsibilities effectively and efficiently” said Mathambo, then Minister of Finance.

Acknowledging the need to draw down from GIA no more, current Minister of Finance   Dr Matsheka said “It is under this background that it would be advisable to avoid excessive draw down from this account to preserve it as a financial buffer”

He further cautioned “The danger with substantially reduced financial buffers is that when an economic shock occurs or a disaster descends upon us and adversely affects our economy it becomes very difficult for the country to manage such a shock”

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