No country in Africa is rated before Botswana when it comes to encouraging investment in exploration and its jurisdiction is seen to provide attractive mining policies, according to Fraser Institute’s 2018 annual survey of mining and exploration companies.
The study was done by carrying out survey on approximately 2,600 individuals in exploration, development, and other mining-related companies around the world. The survey has the Investment Attractiveness Index which measure the attractiveness of a jurisdiction based on policy factors such as onerous regulations, taxation levels, the quality of infrastructure. The other main index is the Policy Perception Index which looks at the attractiveness of mining policies in a jurisdiction, and can serve as a report card to governments on how attractive their policies are from the point of view of an exploration manager.
Through the survey Fraser Institute assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. Carried out across the world’s leading mining jurisdiction zooming into prospecting, exploring and mineral extracting companies the study also takes into account issues of safety, occupational health and environment as far as mining operations are concerned.
Since dominating for the last couple of years Botswana is again the highest ranked jurisdiction in Africa on policy, ranking 12th (of 83) in 2018, after ranking 21st (of 91) in 2017. According to the survey Botswana’s high scores this year and an improvement in past few years’ means mining and exploration investors can come home for mining projects since the is less or no concern over uncertainty concerning protected areas like: (-24 points), trade barriers (-20 points), and political stability (-18 points).
“The tax regime in Botswana continues to be exemplary when compared to other African jurisdictions and encourages investment in exploration,” says an exploration company vice-president interviewed for the survey according to the latest report by the Fraser Institute.
The survey which was circulated electronically to approximately 2,600 individuals between 21 August and 9 November 2018 helps investors to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment.
The “Best Practices Mineral Potential” index ranks the jurisdictions based on which region’s geology “encourages exploration investment” or is “not a deterrent to investment” and Botswana is still among the top performers in this index.
New ventures in Botswana
Recently there has been fresh news of opening of the mining that was formerly called Boseto by Khoemacau with a P5.6 billion investment. These news together with Botswana’s healthy diamond relationship with De Beer or/and Anglo America, may have contributed to Botswana’s high rankings in the mining survey. De Beers and Botswana talks are expected to reach a climax in June this year and both parties have promised an amicable deal to the media.
A company with foreign investors like Botswana Diamonds continues to hold exploration rights in Botswana soils and promises to keep them without any complain. Canadian diamond giant Lucara boasts of its Botswana’s Karowe diamonds which were recently making headlines synonymous with production of huge rough diamonds-this must provide a positive outlook for the Fraser Institution survey.
Saskatchewan displaced Ireland from the top spot this year, and had the highest PPI score of 100. Saskatchewan was followed by Nevada in second, which moved up from 5th in the previous year. Along with Saskatchewan and Nevada the top 10 ranked jurisdictions are Finland, Ireland, Western Australia, Northern Ireland, Sweden, Utah, New Brunswick, and Quebec.
The 10 least attractive jurisdictions for investment based on the PPI rankings are starting with the worst Venezuela, Democratic Republic of Congo (DRC), Neuquén, Chubut, Philippines, Guatemala, La Rioja, Zimbabwe, Bolivia, and China. Venezuela, Democratic Republic of Congo, Chubut, Philippines, Guatemala, Zimbabwe, Bolivia, and China were all in the bottom 10 jurisdictions last year.
Botswana which is home to the richest diamond mine by value is noted as one the leading mining countries in the world with investment friendly policies and factors. The country’s mining policies has birthed one the most celebrated public –private partnerships in the world between Botswana Government and global diamond giant De Beers Group .
Botswana accounts for more than 70 % of the De Beers diamond rough diamond produce. The 53 year old Southern African republic is the leading diamond-producing country in terms of value, and the second largest in terms of volume. This is the home base of De Beers, and the source of most of its production today. In 2013, Botswana produced 23.2 million carats with a stated value of $3.63 billion.The country is also home to one of the most abundant coal deposits in the world sitting at over 200 billion tones with other minerals explored being copper , zinc , silver and nickel.
But there are lowlights
The country has been unfortunate in seeing the abrupt closure of the BCL mine which was seen to be done in political expediency by close observers. The mine which is said to be one of the biggest copper mines is failing to garner investors since its closure and subsequent liquidation of 2016. Some believe the mine might end as a great white elephant as its care and maintenance continues to botch.
Another failed copper project which is unable to get a white knight investor is the Mowana mine which was closed last year December due to inability to live up to operation costs. Lerala mine is one of the worst in terms of attracting investors as it has even gone down in value-more than 50 percent its initial value. It was nearly auctioned for P80 million but its investors failed to raise capital according to the mine liquidator. Lerala mine still hangs on the hopes of the people of Lerala village as it is still looking for a knight investor.
The nightmare in the fall of the promising Pula Steel was recently reignited as its former owner Deepak Verma blames government for leading the mine into collapse. The mine was closed and liquidated after operational failure. For the 2018 report released this week, survey responses have been tallied to rank provinces, states, and countries according to the extent that public policy factors encourage or discourage mining investment.
The Fraser Institute received a total of 291 responses for the survey, providing sufficient data to evaluate 83 jurisdictions. By way of comparison, 91 jurisdictions were evaluated in 2017, 104 in 2016, 109 in 2015, and 122 in 2014.The number of jurisdictions that can be included in the study tends to wax and wane as the mining sector grows or shrinks due to commodity prices and sectoral factors. This year’s survey includes an analysis of permit times, which was previously evaluated in a separate publication.
Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.
Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.
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Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.
A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.
Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.
As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
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Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.
The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.
Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.
“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.
He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.
Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.
“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.
He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.
He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc
“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran
Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.
“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.
Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.
“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.
He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.
“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams
He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .
Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.
“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.