The macroeconomic outlook remains positive onto 2019 underpinned by the anticipation of sustained growth in the mining sector, particularly diamonds, as the global economic recovery ensues. At the same time, the non-mining sector is expected to drive growth, largely from the services sectors. The projected accommodative monetary conditions, expansionary fiscal policy, stable water and electricity supply, should all serve to add impetus to economic growth.
The country is set to go to the polls this year with the general elections marked for October. Notwithstanding increased factionalism within the ruling Botswana Democratic Party (BDP) we anticipate the party will retain power come elections. The new political administration’s approval of key legislation aimed at improving the business environment could serve to attract much needed Foreign Direct Investment (FDI) into Botswana.
The Bank of Botswana September 2018 Business Expectations Survey also highlights the positive prospects of 2019. Businesses have indicated positive expectations about 2019 business conditions, which they expect to improve further, with the main drivers being increased demand for consumer products and sustained growth in global demand for mining output.
Over the surveys of recent years, constrained domestic demand has consistently been cited as one of the biggest challenges facing businesses. It is particularly encouraging to note that increased demand for consumer products is now expected to be a key driver of growth. Furthermore, firms expect wages to increase in the first half of 2019, likely premised on the anticipated public service salary increment.
From a global viewpoint, the year has begun with much uncertainty. Key events, including Brexit, the US-China trade war, China’s economic slowdown and the Italy debt crisis, will likely result in investors shying away from equities and parking their money in safe haven assets. The outcome of these events will be pivotal in determining the direction equity markets will take and could influence whether liquidity from foreign investors will return to our local stock market. However, considering the positive domestic macroeconomic outlook, improved fundamentals and attractive valuations on the DCI, investors should see our local stock market as a good buying opportunity.
The Banking Sector
The performance of the banking sector is largely tied to the health of the economy. With ensuing growth anticipated for 2019, demand for credit should remain strong. 2018 saw a recovery in credit growth from the lows seen in 2017 in line with improved economic performance. We anticipate 2019 will be another year of solid credit growth, with businesses acting as the primary driver.
The aforementioned Business Expectations Survey indicates local firms expect a rise in domestic borrowing this year. Meanwhile, consumers are currently under pressure from constrained disposable incomes and there is the general perception of household debt being at high levels. However, the anticipated increase in wages should serve to provide some relief to households and increase their borrowing capacity, albeit to a limited extent.
With the economy only recently beginning to pick up steam and the subdued inflationary environment, we expect the Central Bank will maintain an accommodative monetary policy stance throughout the year. We therefore see the bank rate maintained at 5% in 2019. The monetary policy environment substantiates our expectations of decent credit growth.
Non-interest income growth remains a key focus for the banks. Increased development and enhancement of digital banking channels are driving transactional income growth, with self-service banking increasingly being utilized by customers due to its convenience of 24 hour access and mobility. On the brick and mortar front, banks appear to be adopting a model of leaner branches, with increased self-service access points.
FNBB, the largest bank and market leader in innovation, is well poised to continue driving solid non-interest income growth underpinned by aggressive rollout of digital platforms and initiatives aimed at increasing penetration of clients’ use of the bank’s products. FNBB has targeted particular business sectors for credit extension, while it intends to lend cautiously to households.
Barclays is set to experience a change in leadership with Managing Director, Reinette Van Der Merwe’s tenor coming to an end in the current financial year. The bank’s strategy of growing its fee income will result in ensuing investment in digital solutions in line with increased use of these channels by its clients. Barclays has made it clear it intends to grow its advances market share, with a strong focus on growing its book via client penetration and acquisition. The cost impact of the separation from Barclays PLC however, does bring some uncertainty.
Following the de-risking of its balance sheet, Stanchart should be positioned to drive growth that doesn’t compromise on asset quality. Given its elevated cost/income ratio of 95% as at June 2018, the bank finds itself under immense pressure to bring this metric down and grow its income lines. Newly listed BancABC will largely be focused on the rollout of new and enhanced product offerings and extensive marketing to drive its envisioned transactional banking proposition. The bank significantly lags its more established peers with regards to non-interest income contribution, currently at 16.4% of total income. This indicates the scope that ABC has to grow and diversify its revenue streams.
The Financial Services Sector
Blue chip financial services giant BIHL is set to launch a new strategy this year following the end of its 5 year twin strategy of growth and profitability in 2018. The group’s segmentation approach under the life business has made good in-roads and we believe this will remain a key part of the new strategy with innovation likely to play an ever increasing important role amidst the competitive environment. We anticipate that the affluent segment will continue to be a key driver of growth in value of new business given its low penetration and higher average size premiums.
Asset management arm, BIFM, faces an increasingly challenging landscape. Ex-BPOPF pension funds have followed suit in adopting the measure of splitting mandates amongst asset managers. This development makes it more difficult to grow assets under management. Further, the entry of new asset managers will over time intensify competition for assets as these firms build track records and acquire mandates. On a group level, business development initiatives aimed at marketing BIHL as a “one stop financial services shop” should serve to further harness synergies between the underlying subsidiaries and associate businesses.
Letshego’s broad geographical footprint across Sub-Saharan Africa (SSA) has the group well positioned to scale its operations further. According to IMF statistics, GDP growth for SSA is expected to improve to 3.5% (2018: 2.9%) and 3.6% in 2020. Letshego appointed Smit Crouse as the new group Managing Director late in Q3 2018. Mr. Crouse has extensive experience in finance, commerce, and law, including advising on and managing African banking investments.
Access is the focal point for the firm in driving its strategic agenda of becoming the continent’s leading inclusive finance group. Letshego’s agency network, mobile digital banking solutions, strategic partnerships, new products and cross selling initiatives have substantially increased access and driven customer acquisition. We expect the continued rollout and promotion of these initiatives to drive further growth momentum going forth. With increased diversification into MSE lending, Letshego would do well to monitor the composition of its loan book in order to simultaneously drive growth and keep loan loss rates in check. 5
The Property Sector
The listed property companies are increasingly diversifying across our local borders. The Botswana property market has seen varied dynamics. Demand for retail space has been strong and is still rising with further mall developments and expansions having been recently completed and some underway. This sector is enjoying good occupancy rates and escalations. The industrial sector is seeing solid demand, especially in Gaborone. Developments have reportedly been low; however, demand for prime location space is expected to improve further.
The office market’s state of oversupply has put downward pressure on rentals. Considering the number of new developments and ongoing construction (particularly in Gaborone Central Business District) coupled with subdued employment creation, this sector is likely to remain under pressure. The residential sector has seen improved conditions for the low to middle income segment of the market, while the high end remains weak.
NAP, which has bucked the trend of diversification with an unchanged property portfolio, has nonetheless been a consistently solid performer. The retail property giant should see sustained top line growth from escalations. The weak economic conditions in Selebi Phikwe however will likely remain a drag, with the area currently accounting for 43% of vacancies across the portfolio.
The evolved dynamics of the hospitality sector have forced Letlole management to dispose of its hotel portfolio (which contributes 30% to rental revenues and 28% to the consolidated property portfolio) to related party and incumbent tenant Cresta, subject to unitholders approval. The BWP235 million to be raised from the transaction (a 10% discount to book value) is intended to be reinvested in new acquisitions. Given the length of time acquisitions normally take, investors will likely suffer the opportunity cost of the difference in rental yield and return on cash until the proceeds are utilized.
RDCP has been a significant benefactor of regional diversification on the back of its investments in South African based Capitalgro. South Africa is to be of increasing importance to the company as management has emphasized the number of opportunities being evaluated by Capitalgro. The Xai Xai shopping centre will give RDCP a foothold in Mozambique, while further developments there and in Namibia are still in early stages.
Turnstar has been experiencing prolonged tepid demand, and rightfully so given its challenges in Tanzania. Vacancies at the Mlimani office park have been a major drag on revenues, and pose a significant downside risk to performance. Locally, the expanded area of Gamecity is now largely occupied and should boost retail revenues.
Primetime’s regional and sectoral diversification has been bearing fruit. Three retail developments, Chirundu mall and Munali Mall (Zambia), and Design Quarter (Botswana) were completed late in the previous fiscal year. The revenue impact from these developments will largely be reflected in the current financial year, with management focusing on tenancies in Chirundu and Munali. A further 1,100 sqm extension of Pilane Crossing is currently underway, scheduled for completion in Q2 2019.
Brewery behemoth, Sechaba, has been under the torment of a harsh regulatory environment which saw its profitability decline over the years. The company’s fate has taken a turn for the better with the new political administration’s decision to reduce the alcohol levy from 50/55% to 35% late in 2018, a development which we expect will prove earnings accretive for the beverages giant. A further regulatory change was the extension of liquor trading hours, which should be positive for Sechaba’s volumes.
Shareholders approved of the related party transaction between Sechaba and AB InBev Africa BV which resulted in Sechaba shareholders (excluding AB InBev Africa BV) effectively retaining their financial interest in the sparkling soft drinks business. This segment accounts for roughly 30% of volumes and is thus a paramount part of the business. However, it remains to be seen what the implications of the restructuring of KBL will be following this transaction.
Ecotourism counters Chobe and Wilderness delivered excellent numbers for their interim reporting periods, which include peak season. This should translate to a solid full year performance for their respective reporting periods ended February 2019. The outlook for the Southern African tourism industry is robust and is anticipated to remain so over the medium term.
Locally, the government’s recent policy decision to simplify VISA applications is anticipated to expedite turnaround times and potentially result in increased tourist arrivals into Botswana, particularly from the Far East. We do have some reservations on the sector however, considering the uncertainty around several global events which could dampen consumer confidence in some key markets. The IMF has projected that global output will slow to 3.5% (2018: 3.7%). Risks to this outlook are largely tilted to the downside which could result in an even sharper slowdown in growth if outcomes to several events prove unfavorable.
The Retail Sector
With Choppies yet to release results and Sefalana being the only other listed counter in the retail sector, we have limited indication of developments in this space. Following a period of continued pressures on its local FMCG margins, Sefalana has posted positive performance under its Sefalana Cash and Carry Botswana unit. The improved performance has been attributed to a gradual uptick in consumer spending and confidence. Given the optimism amongst businesses with regard to consumer product demand going forth, we are cautiously optimistic that these improved dynamics will ensue.
Sefalana’s focus going forth will largely be on its core FMCG and supporting businesses. The group plans to open 3 further stores in Botswana this year and to continue its efforts to provide its customer base with a wider product and service offering. The group is also looking to expand its manufacturing business into bottled water and fruit juice manufacturing over the next 12 – 18 months.
The high level of dependence on government tenders remains a key risk for the manufacturing arm, as well as for the smaller Commercial Motors subsidiary. There is however, a general anticipation of a boost in government spending over this election year, which could act as a boon for these segments.
Choppies remains in limbo, yet to release its full year financial results, while its Dec interim results are due for release soon as well. Amidst this debacle, the group appointed a new Finance Director, Heinrich Mathiam Stander effective 15 December 2018. Shareholders recently found some relief following Choppies statement announcing that the Zimbabwe litigation issue has been resolved. The Mphokos, former minority shareholders, have disinvested from the subsidiary and have no further interests in Choppies. Given this was a legal matter; it is likely it was the largest impeding factor with regards to release of Choppies financials.
As the largest retailer in Botswana, Choppies is well positioned to benefit from a recovery in consumer spending. Meanwhile, the civil unrest in neighboring Zimbabwe has exacerbated the difficulties of conducting business, the country battling with foreign exchange shortages and exorbitant inflationary pressures. For now, the market waits with angst for release of the group’s financials to get an indication of the current standings of the business and management’s outlook. (Adopted from SBB Market Outlook for 2019)
Robust demand for diamonds in early 2022 which was a spillover from late 2021, has catapulted Botswana into a surplus for the month of January 2022.
According to latest figures from Statistics Botswana, the country recorded a trade surplus of P661.8 million in the first month of the year, against a trade deficit of P270.2 million in December as per revised data.
The Statistics Botswana’s International Trade Merchandise Trade Statistics (ITMS) for January has attributed the trade surplus to a splendid performance of the diamond commodity which anchored the country’s export figures to a growth of 5.7 percent (P411.8 million), from the revised December 2021 figure of P7,182.8 million to P7, 594.6 million in January.
The Diamonds group accounted for 90.9 percent (P6, 904.3 million), followed by Copper, with 2.5 percent (P189.0 million). Diamond exports rose by 5.2 percent (P339.2 million) from the revised December 2021 value of P6, 565.1 million to P6, 904.3 million. An upsurge in Copper exports by 17.2 percent (P27.8 million) from P161.3 million to P189.0 million was also observed during the current month.
On the other hand during the same month of January 2022, imports were valued at P6, 932.8 million, representing a decline of 7.0 percent (P520.3 million) from the December 2021 revised figure of P7, 453.1 million. The decrease was mainly attributed to the decline in all commodity groups except for Diamonds and Chemicals & Rubber Product.
Botswana imports diamonds from South Africa, Namibia and Canada, coming into the country for aggregation at De Beers Global Sightholder Sales. Diamonds contributed 30.1 percent (P2, 087.1 million) to total imports. Fuel; Chemicals & Rubber Products and Food, Beverages & Tobacco followed with contributions of 15.7 percent (P1, 085.8 million), 14.9 percent (P1, 031.2 million) and 12.5 percent (P869.0 million) respectively. Machinery & Electrical Equipment contributed 10.3 percent (P716.0 million).
During the month SACU region accounted for the largest imports contributing 53.2 percent (P3, 690.3 million) to the total. The top most imported commodity groups from the customs union were Fuel and Food, Beverages & Tobacco, with contributions of 26.4 percent (P973.1million) and 22.1 percent (P815.8 million) to imports from the region, respectively.
South Africa is Botswana’s top supplier of imports at 50.3 percent (P3, 490.3 million) of total imports during the current month. Fuel and Food, Beverages & Tobacco contributed 24.5 percent (P855.5million), and 23.0 percent (P801.1 million) to total imports from that country, respectively. Chemicals & Rubber Products and Machinery & Electrical Equipment, followed by 13.5 percent (P471.3 million) and 13.1 percent (P458.8 million) respectively.
Namibia supplied 2.3 percent (P157.1 million) of total imports during the period, mainly comprising of fuel at 74.9 percent of total imports from the country. Botswana received imports worth P1, 738.2 million from the EU, accounting for 25.1 percent of total imports during the reference period.
The major commodity group imported from the EU was Diamonds, at 80.8 percent (P1, 404.9 million) of all imports from the union. Belgium was the major source of imports from the EU, with a contribution of 21.7 percent (P1, 506.9 million) of total imports during the month under review.
In January 2022, imports from Asia were valued at P657.6 million, representing 9.5 percent of total imports. The major commodity groups imported from the regional block were Diamonds and Machinery & Electrical Equipment with contributions of 41.5 percent (P272.7 million) and 21.6 percent (P141.8 million) of total imports respectively.
Canada supplied 4.2 percent (P290.5 million) of total imports during the current period. Imports from Canada consisted mainly of Diamonds at 98.5 percent (P286.0 million). In terms of Exports Asia was the top destination for Botswana exports, having received 67.7 percent (P5, 141.9 million) of total exports in January 2022.
These exports were mainly destined for India and the UAE, receiving 25.6 percent (P1, 944.0 million) and 23.1 percent (P1, 753.1 million) of total exports, respectively. Diamonds and Copper were the major commodity groups exported to Asia during the month.
In January 2022, exports destined to the EU amounted to P1, 297.4 million, accounting for 17.1 percent of total exports. Belgium received almost all the exports destined to the regional union, acquiring 16.9 percent (P1, 280.5 million) of total exports.
The Diamonds group was the main commodity group exported to the EU, at 98.6 percent (P1, 279.9 million)
During the reference period, the SACU region received exports valued at P900.6 million, accounting for 11.9 percent of total exports. Diamonds and Live Cattle accounted for 55.0 percent (P322.5 million) and 10.1 percent (P76.8 million) of total exports to the customs union.
South Africa and Namibia received 9.6 percent (P727.4 million) and 2.3 percent (P172.8 million) of total exports respectively during the month under review. Goods exported by Air during the month under review were valued at P6, 990.3 million, accounting for 92.0 percent of total exports. Those transported by Road and Rail accounted for 7.8 percent (P589.3 million) and 0.2 percent (P14.9 million) respectively.
During January 2022, 52.3 percent (P3, 625.3 million) of total imports were transported into the country by Road. Transportation of imports by Rail and Air accounted for 35.4 percent (P2, 456.5 million) and 12.3 percent (P850.4 million) respectively.
1. Europe once branded coal ‘dirty’ but their demand for it has skyrocketed once again. What do we learn about coal from what’s happening now in Ukraine?
There are over 80 countries in the world who still rely on coal as a form of energy. These are countries that are fighting to have basic necessities like electricity, which research shows increases their quality of life substantially. Energy poverty is real in Africa, India and Asia.
The Western approach to coal cannot be universal. We must remember that developed economies relied heavily on coal during their development. Challenges being faced by developing nations are unique. Demand for coal in Europe right now is driven by sanctions on Russian gas and coal and show that Europe might well be over-exposed to “green” with no back-up at times when there is no wind, running water, endless sunshine or faced with supply shortages. Coal is back in play in Europe because of the war, and despite massive adoption of clean energy in the US not all of the US uses clean energy.
In Germany and Italy, coal-fired power plants that were once decommissioned are now being considered for a second life. In South Africa, more coal-laden ships are embarking on what’s typically a quiet route around the Cape of Good Hope toward Europe. Coal burning in the US is in the midst of its biggest revival in a decade, while China is reopening shuttered mines and planning new ones Coal remains and will remain an essential element in the energy mix. We need to make use of cleaner coal in such mix.
2. How much has been the projected demand of coal in the in the last couple of months?
Our key land export markets consist of 80-90% bound for South Africa and Namibia. In the last three months however, sea bound exports increased significantly with international traders buying to export to Europe and the West. We do not have specific numbers because the final destination overseas is determined by the international traders who buy coal from us. We remain hopeful that this demand continues.
3. How has the demand influenced Minergy exports to South Africa, Namibia and overseas?
Minergy remains committed to its local markets and continues to supply into these. A massive increase in demand from international markets, stemming from the Ukraine war and sanctions on Russia has come as a blessing to Minergy as lucrative pricing has made once uneconomical logistics feasible. This allowed Minergy to place additional product in new markets, markets historically uneconomical… We continue to look for alternative markets and supply to Namibia is one such market as well as the ability to use their ports as export routes for seaborne thermal coal.
4. Comment on the Minergy market access dynamics.
Refer to answer for question 2 and 3.
5. What would it take to fully explore the billions of tons of coal in Botswana?
Greater local and even foreign direct investment. Simplifying regulatory processes and promoting ease of doing business needs to be top agenda items. Coal has unfairly been de-campaigned in the West as a ‘dirty’ mineral which has swayed investors to look elsewhere for investment portfolios. With enough funders and investments in coal the huge deposits can change our power fortunes and energy independence. Given Botswana’s massive reserves, we are of the opinion that coal should be another diversified revenue stream for the Botswana Government. At Minergy we remain thankful for the support from Government as well as from internal development organizations that have supported our strategy and were instrumental in getting the mine to the phase that it is in at the moment. Partnership with government and open minds to managing coal is key.
6. What future do you project for Minergy in the medium and long term given what we see now in Europe?
We cannot predict how long the situation in Europe will last and we pray that it will be resolved as the loss of lives and destruction of the Ukraine is a human catastrophe. Our model is premised on fully optimizing our deposits for the benefit of Botswana and Batswana..
7. Open cast for coal is a new concept in Botswana. How has Minergy enhanced the skills base?
Opencast coal mining and the associated beneficiation of sized coal is a specialized industry. Currently there is no other similar operation in Botswana to recruit from.
The South African coal industry is well experienced with this plant operation and the requisite skill is found there. It is necessary for our operations to make use of such skills to operate the plant as we cannot find all the skill in Botswana. The skill for operating such a plant is different than diamond, tin, copper etc. processing. As such certain positions require expatriate recruitment, but all these positions are supported with understudy programmes
It is Minergy’s hope as part of its legacy, to promote and install fully qualified local opencast mining and coal beneficiation skills, currently not available in Botswana.
8. What are the projected human capital skills of the future in coal mining.
See response to question number 7.
9. Share experiences from the recent Mining Indaba. What is the future of coal?
Africa needs to be energy efficient and independent. We remain encouraged at the responsible strategy that the Botswana government has put into place to support this.
10. Kindly share in detail, infrastructural developments which were brought in place by Minergy in those communities.
We have an electronic brochure that showcases all the value add that we have contributed not to just the Medie village but Botswana as a whole. This is available at our office or electronically on our website www.minergycoal.com. Highlights include
Minergy paid for the electrification of the mine and the local Medie village benefited from the connection, allowing 500 people access to electricity through a self-funded prepaid system. As an extended part of Minergy’s social investment drive the Kgotla and the clinic have also been electrified, making day-to-day running of these essential services much easier and efficient. This is ahead of the Governments intended electrification programme, which was only planned for2024.
The quality of the road between Lentsweletau and Medie has been significantly upgraded compared to the state the road was in before mining operations commenced. Continuous road rehabilitation and dust suppression is undertaken in and around the villages to maintain road integrity. ( This is a public road, but the Group takes care of the road as it benefits the community in which the mine operates)
The dilapidated community hall has been refurbished including access to solar power and will be handed over to the community.
11. A development as huge as Masama Coal mine would usually result in the mushrooming of several other businesses to benefit from its value chain. In the case of Masama, kindly share businesses which have been created as a result of the growing value chain.
Readers are again referred to electronic brochure that showcases all the value add that we have contributed.
This phenomenon is indeed correct and there are a number of entrepreneurial businesses that have flourished including laundry services, bed & breakfast for suppliers visiting the mine or the area, housing built for rental accommodation, spaza shops and food stalls, first supermarket in Lentsweletau and additional building supply outlets established
We also make use of 12 locally owned and operated transporters, who are used by the mine to transport product, where applicable.
The partnership between Debswana and Botswana Oil Limited (BOL) which was announced a fortnight ago will create under 100 direct jobs, and scores of job opportunities for citizens in the value chain activities.
In a major milestone, Debswana and BOL jointly announced that the fuel supply to Debswana, which was in the past serviced by foreign companies, will now be reserved for citizen companies. The total value of the project is P8 billion, spanning a period of five years.
“About 88 direct jobs will be created through the partnership. These include some jobs which will be transferred from the current supplier to the new partnership,” Matida Mmipi, Head of Stakeholder Relations at Botswana Oil, told BusinessPost.
“We believe this partnership will become a blueprint for other citizen initiatives, even in other sectors of the economy. Furthermore, this partnership has succeeded in unlocking opportunities that never existed for ordinary citizens who aspire to grow and do business with big companies like Debswana.”
Mmipi said through this partnership, BOL and Debswana intend to impact citizen owned companies in the fuel supply value chain that include transportation, supply, facilities maintenance, engineering, customs clearance, trucks stops and its support activities such as workshop / maintenance, tyre services, truck wash bays among others.
“The number of companies to be on-boarded will be determined by the economics at the time of engagement,” she said. BOL will play a facilitatory role of handholding and assisting emerging citizen-owned fuel supply and fuel transportation companies to supply Debswana’s Jwaneng and Orapa Letlhakane Damtshaa (OLDM) mines with diesel and petrol for their operations.
“BOL expects to increase citizen companies’ market share in the fuel supply and transportation industries, which have over the years been dominated by foreign-owned suppliers. Consequently, the agreement will also ensure security of supply for Debswana operations, which are a mainstay of the Botswana economy,” Mmipi said.
“Furthermore, BOL will, under this agreement, transfer skills to citizen suppliers and transporters during the contract period and ensure delivery of competent and skilled citizen suppliers and transport companies upon completion of the agreement.”
Mmipi said the capacitating by BOL is limited to providing citizen companies oil industry technical capability and capacity to deliver on the requirements of the contract, when asked on helping citizen companies to access funding.
“BOL’s mandate does not include financing citizen empowerment initiatives. Securing funding will remain the responsibility of the beneficiaries. This could be through government financing entities including CEDA or through commercial banks. Further to this, there are financial institutions that have already signed up to support the Debswana Citizen Economic Empowerment Programme (CEEP),” Mmipi indicated.
While BOL is established by government as company limited by guarantee, it will not benefit financially from the partnership with Debswana, as citizen empowerment in the petroleum value chain is core to BOL’s mandate.
“BOL does not pursue citizen facilitation for financial benefit, but rather we engage in citizen facilitation as a social aspect of our mandate. Citizen facilitation comes at a cost, but it is the right thing to do for the country to develop the oil and gas industry,” she said.
Mmipi said supplying fuel to Debswana comes with commercial benefits such as supply margins. These have traditionally been made outside the country when supply was done by multi-nationals for a period spanning over 50 years. With BOL anchoring supply for Debswana, this benefit will accrue locally, and BOL will be able to pay taxes and dividends to the shareholders in Botswana.