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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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BDP decides Balopi’s fate

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The Botswana Democratic Party (BDP) Central Committee (CC) meeting, chaired by President Dr Mokgweetsi Masisi late last month, resolved that the party’s next Secretary-General (SG) should be a full-time employee based at Tsholetsa House and not active in politics.

The resolution by the CC, which Masisi proposed, is viewed as a ploy to deflate the incumbent, Mpho Balopi’s political ambitions and send him into political obscurity. The two have not been on good terms since the 2019 elections, and the fallout has been widening despite attempts to reconcile them. In essence, the BDP says that Balopi, who is currently a Member of Parliament, Minister of Employment, Labour Productivity and Skills Development, and a businessman, is overwhelmed by the role.

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BDF-Namibians shootings autopsy report revealed

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The Botswana Defence Force (BDF)-Namibians fatal shooting tragedy Inquest has revealed through autopsy report that the BDF carried over 800 bullets for the mission, 32 of which were discharged towards the targets, and 19 of which hit the targets.

This would mean that 13 bullets missed the targets-in what would be a 60 percent precision rate for the BDF operation target shooting. The Autopsy report shows that Martin Nchindo was shot with five (4) bullets, Ernst Nchindo five (5) bullets, Tommy Nchindo five (5) bullets and Sinvula Munyeme five (5) bullets. From the seven (7) BDF soldiers that left the BDF camp in two boats, four (4) fired the shots that killed the Namibians.

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Gov’t confused over Moitoi’s UN job application

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The former Minister of Foreign Affairs and International Cooperation, Pelonomi Venson-Moitoi’s decision to apply for the positions of United Nations Special Representative of the Secretary-General (SRSG) and their deputies (DSRSG), has left the government confused over whether to lend her support or not, WeekendPost has established.

Moitoi’s application follows the Secretary-General’s launch of the third edition of the Global Call for Heads and Deputy Heads of United Nations Field Missions, which aims to expand the pool of candidates for the positions of SRSG) and their deputies to advance gender parity and geographical diversity at the most senior leadership level in the field. These mission leadership positions are graded at the Under-Secretary-General and Assistant Secretary-General levels.

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