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Strive to offer Batswana 20% of Mascom

Strive Masiyiwa, the chairman of Econet Wireless Zimbabwe, a subsidiary of pan African telecommunications giant wants to list 20 percent of Mascom shares on the Botswana Stock Exchange Limited (BSEL) as soon as the deal to purchase 53 percent of MTN shares in telecom entity is completed.

Africa’s newest billionaire, Masiyiwa will increase his company’s stake in Botswana’s leading mobile network service provider, Mascom Wireless from 7 percent to 60 percent. Executives at Econet Group confirmed to this publication that their chairman wants to push for a more expanded Botswana ciotizen involvement in the company.

“He wants the listing to be done before July this year. The intention is to lobby the Botswana Public Officers’ Pension Fund (BPOPF) to release 10 percent of their shares to the stock exchange and we do the same on the Econet side,” said an Econet executive in a brief interview.  The executive further shared that they are only left with regulatory issues and requirements to satisfy but the sale deal is almost done. Econet representatives in Botswana have already met the Botswana Communications Regulatory Authority (BOCRA) to start the process of dealing with regulatory matters.

Econet was favoured by the Mascom shareholding setup, through the Mobile Botswana Limited (MBL), a vehicle that is made of MTN at 53% and Econet at 7%. The MBL gives Econet pre-emptive rights to buy from MTN ahead of BPOPF. South African conceived  MTN Group , now Africa’s leading telecommunication conglomerate announced last week that it will exit Mascom boardroom, selling off its stake for P3 billion.

MTN announced it will be selling its entire stake to Econet, making the Zimbabwean conceived company a major shareholder in Botswana leading mobile network services brand. MTN  has agreed to sell its 53 percent stake in Botswana’s Mascom to Econet Wireless Zimbabwe for $300 million (P3 billion) “We are simplifying the group, we are reducing risk, and improving returns,"  says  MTN CEO Rob Shuter . “That will generate some returns that will be helpful for our gearing and other priorities."

Currently as things stand before the transaction MTN is Mascom’s largest shareholder while the Botswana Public Officers Pension Fund (BPOPF) owns 40 percent, and the remaining 7 percent is held by Econet. WeekendPost understands that BPOPF as the second biggest shareholder had the first right of refusal, but decided not to exercise its right to purchase shares on offer. As a result, the minor shareholder, Econet, will now become a major shareholder with 60 percent, while BPOPF remains with 40 percent. Econet is a major mobile network operator in Zimbabwe, founded by Strive Masiyiwa, the Zimbabwe born billionaire who was one of the founders of Mascom.

MTN first became a shareholder in Mascom in 2005, scooping about 44 percent of Mascom for $128 million, which was about P704 million at the time, with Mascom valued at P1.7 billion. Mascom is currently valued at P5.6 billion, which means MTN’s 53 percent shares in Mascom are worth P3 billion.MTN says it is disposing the shares held in Mascom due to “lack of control position and MTN branding which meant that the group is not able to execute on its BRIGHT strategy.”

The lack of control MTN alludes to stems from Mascom’s complex shareholding structure. While MTN is the major shareholder of Mascom, the South African telecommunication giant does not have management control over Mascom. In 1998, when Mascom became one of the country’s first wireless carrier, it was owned by Deci Holdings at 36 percent, Portuguese Telecommunications (25 percent), Strive Masiyiwa (14 percent), Debswana Pension Fund (15 percent), International Finance Corporation (5 percent) and Southern African Enterprises Development Fund (5 percent).

By 2004, Mascom’s shareholding had drastically changed: Portuguese Telecoms was now the majority shareholder with a 50.1 percent stake, followed by Deci (30 percent) and Strive Masiyiwa (19.99percent). Still in 2004, Mascom became a majority citizen owned company after Portuguese Telecoms decided to sell its entire shares in Mascom.

The shares were acquired by DECI and Masiyiwa, with DECI owning 60 percent and Masiyiwa had 40 percent. DECI at the time was owned by BPOPF and Botswana Insurance Fund Management (BIFM), placing Mascom in the hands of citizen shareholders. However, there was a catch to Portugal Telecoms offloading its shares: on top of money paid for its shares, the Portugal Company was given a lucrative management contract for Mascom running for 10 years. The deal expired in 2014, and it was extended by another 10 years. The management contract is the reason why Mascom has never had a citizen CEO.

When MTN became a 44 percent shareholder in Mascom back in 2005, the management contract deal was already in place. Although MTN later raised its stake from 44 percent to 60 percent in 2007, the complex holding structure still prevented it from taking over management of Mascom. MTN later reduced its stake to the current 53 percent.

WeekendPost further understands that the management contract continues to rub off MTN the wrong way as the South African company says it cannot implement some of its strategies. The BRIGHT strategy which MTN is pursuing is focused on growth of its financial services, digital, wholesale and enterprise businesses. It became clear last year that MTN was ready to divest from Mascom, after the South African mobile operator and Orange Group announced a joint venture, on Mowali project a mobile wallet interoperability wave.

MTN and Orange Group partnered to enable interoperable payments across the continent. Mowali makes it possible to send money between mobile money accounts issued by any mobile money provider, in real time and at low cost. Orange Group happens to be a major shareholder in Orange Botswana, a main competitor to Mascom.

The decision by MTN to dispose its entire shares in Mascom to a Econet comes less than six months after Econet, tried last year to sell the remaining shares for $50 million (P500 million) but the deal faced stiff resistance, with other shareholders indicating it was way too much. Econet had put the value of Mascom at P7 billion, while BPOPF argued Botswana’s top carrier was worth between P4.8 billion and P5.2 billion.

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Fighting vulture poisoning in KAZA region.

3rd February 2023
As a response to avert vulture poisoning currently going on in Botswana and KAZA region, Birdlife Botswana has collaborated with three other partners (BirdWatch Zambia, BirdLife International & Birdlife Zimbabwe) to tackle wildlife poisoning which by extension negatively affect vulture populations.

The Director of Birdlife Botswana, Motshereganyi Virat Kootshositse has revealed in an interview that the project which is funded by European Union’s main goal is to reduce poisoning related vultures’ death and consequently other wildlife species death within the KAZA region.

He highlighted that Chobe district in Botswana has been selected as a pilot site as it has experienced rampant incidents of vulture poisoning for the past few months. In August this year at least 50 endangered white backed vultures were reported dead at Chobe National Park, Botswana after feeding on a buffalo carcass laced with poison.  In November this year again 43 white backed vultures were found dead and two alive after feeding on a zebra suspected to have poisoned.  Other selected pilots’ sites are Kafue in Zambia and Hwange in Zimbabwe.

Kootshositse further explained they have established a national and regional Wildlife Poisoning Committee. He added that as for the national committee they have engaged various departments such as Crop Productions, Agro Chemicals, Department of Veterinary Services, Department of Wildlife and National Parks and other NGOs such as Raptors Botswana to come together and find a long-lasting solution to address wildlife poisoning in Botswana. ‘Let’s have a strategy or a plan together to tackle wildlife poisoning,’ he stated

He also decried that there is gap in the availability of data about vulture poisoning or wildlife in general. ‘If we have a central point for data, it will help in terms of reporting and advocacy’, he stated

He added that the regional committee comprises of law enforcement officers such as BDF and Botswana police, village leadership such as Village Development Committee and Kgosi. ‘We need to join hand together and protect the wildlife we have as this will increase our profile for conservation and this alone enhances our visitation and boost our local economy,’ he noted

Kootshositse noted that Birdlife together with DWNP also addressed series of meeting in some villages in the Chobe region recently. The purpose of kgotla meetings was to raise awareness on the conservation and protection of vultures in Chobe West communities.

‘After realizing that vulture poisoning in the Chobe areas become frequent, we realise that we need to do something about it.  ‘We did a public awareness by addressing several kgotla meetings in some villages in the Chobe west,’ he stated

He noted that next year they are going to have another round of consultations around the Chobe areas and the approach is to engage the community into planning process. ‘Residents should be part of the plan of actions and we are working with farmers committee in the areas to address vulture poisoning in the area, ‘he added

He added that they have found out that some common reasons for poisoning wildlife are farmers targeting predators such as lions in retaliation to killing of their livestock. Another common incident cross border poaching in the Chobe area as poachers will kills an elephant and poison its carcass targeting vultures because of their aerial circling alerting authorities about poaching activities.

Kootshositse noted that in the last cases it was disheartening the incidents occurred three months apart. He added that for the first time they found that some of the body parts of some vultures were missing. He added harvesting of body parts of vultures is not a common practice in Botswana, although it is used in some parts of Africa. ‘We suspect that someone took advantage of the availability of carcasses and started harvesting their body parts,’

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Giant in the making: Everton Mlalazi

3rd February 2023

The music industry is at a point where artists are jostling for space because there are so many aspirants trying to get their big break, thus creating stiff competition.

In the music business it’s about talent and positioning. You need to be at the right place at the right time with the right people around you to propel you forward.
Against all odds, Everton Mlalazi has managed to takeover the gospel scene effortlessly.
To him, it’s more than just a breakthrough to stardom, but a passion as well as mission directly appointed by the Lord.

Within a short space of 2 years after having decided to persue a solo career, Mlalazi has already made it into international music scene, with his music receiving considerable play on several gospel television and radio stations in Botswana including other regional stations like Trace Africa, One Gospel, Metro FM in South Africa, Hope FM in Kenya and literally all broadcast stations in Zimbabwe.

It doesn’t only stop there, as the musician has already been nominated 2 times and 2 awards which are Bulawayo Arts Awards (BAA) best Male artists 2022, StarFM listerners Choice Award, Best Newcomer 2021 and ZIMA Best Contemporary Gospel 2022, MLA awards Best Male artist & Best Gospel Artist 2022.

Everton’s inspiration stems from his ultimate passion and desire to lead people into Godly ways and it seems it’s only getting started.
The man is a gospel artist to put on your radar.

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African countries call on WHO to increase funding

2nd February 2023

Minister of Health Dr Edwin Dikoloti says Africa member states call on World Health Organization (WHO) to ensure equitable resource allocation for 2024-2025. Dr Dikoloti was speaking this week at the WHO Executive Board Meeting in Geneva, Switzerland.

He said countries agreed that there is need to address the budget and funding imbalances by increasing the programme budget share of countries and regions to 75% for the next year.

“The proposed budget for 2024-2025 marks an important milestone as it is the first in Programme Budget in which country offices will be allocated more than half of the total budget for the biennium. We highly welcome this approach which will enable the organization to deliver on its mandate while fulfilling the expectations for transparency, efficiency and accountability.”

The Botswana Health Minister commended member states on the extension of the General Programme of Work (GPD 13) and the Secretariat work to monitor the progress towards the triple billion targets, and the health-related SDGs.

“We welcome the Director’s general proposed five priorities which have crystalized into the “five Ps” that are aligned with the GPW 13 extension. Impact can only be achieved through close coordination with, and support to national health authorities. As such, the strengthening of country offices is instrumental, with particular focus on strengthening national health systems and on promoting more equitable access to health services.”

According to Dr Dikoloti, the majority of countries with UHC index that is below the global median are in the WHO Africa region. “For that, we call on the WHO to enhance capacity at the regional and national levels in order to accelerate progress. Currently, the regional office needs both technical and financial support in order to effectively address and support country needs.”

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