Botswana Telecommunication Corporation Limited (BTCL) Head of Stakeholder Relations, Thato Sedirwa has said contrary to the perception in the market space that BTCL stock and figures are on a non-redeemable fall, the company share structure remains relatively the same since IPO, indicating BTCL shareholders still have confidence in the company’s transformation journey.
“There is a narrative that institutional investors are dumping BTCL, that is not true because shares held by institutional investors are significantly of large volume,” she said. “This means if an institution dispose its BTCL shares, only an institution can purchase because of the monetary requirement attached to the shares, this then results in little or no change in our investment structure because when one institution is selling another is buying,” she said.
Sedirwa added that institutional investors sell their shares because of various reasons such as change in mandate, fluctuating investment philosophy and profile. “Some institutions actually sell because they want to balance their books, and there is always another institution to uptake that stock, so it is actually misleading to conclude that investment institutions are dumping BTCL,” she explained. At the 2016 April IPO which was significantly over subscribed, BTCL shareholders were sitting at just over 50 300.
Of this, 82 percent were shareholders holding 5000 shares and less, adding into only 9.3 percent of the total company stake. Two years later , as of march 2018 , the structure had only slightly changed , still depicting thinly held stocks with holders of 5000 and less shares accounting for 80 percent of the total shareholders, adding into just over 7.1 percent of the total BTCL shareholding.
BTCL investment profile comprises of three segments; the 5000 shares and less basket is predominantly formed by middle income earners and by in large ordinary citizens , while the investment institutions bracket is dominated by pension funds stakes with Botswana Public Officers Pension Fund(BPOPF) in the lead. The high investor pot boils by in large with wealthy select few individuals. Botswana government still holds a significant stake of 51 percent.
Sedirwa reiterated that the share price performance is influenced by various other factors that do not necessarily emanate from the company’s performance. “We still hold a record as one of the highest dividend yields on the local bourse, an investor who bought shares at IPO two years ago and has never sold their shares has so far made 33 percent return on investment, long term investors are usually unmoved by the short term volatility,” she said.
According to Sedirwa, most of share offloads are within the 5000 and less shares holding basket which is dominated by people who are generally not familiar with stock market trends. “These are usually retail investors who are by in large ordinary Batswana who sell because they are seeking a short term remedy to an immediate financial situation, some sell because they completely lack appreciation of the stock market trends and what bearing selling actually has,” she observed.
She said usually when BTCL shares are not doing well people would dispose their stakes, doing what they call exiting a “failed investment”. “This are usually retail investors who are under pressure to meet their liquidity requisites. Under these instances we would see investment institutions and wealthy individuals because of their better understanding and long term vision, buy these shares at these low prices then later enjoy handsome returns when the stock price recovers,” she noted.
The BTCL stakeholder liaison further added that some retail investors can dispose-off their shares just before the dividend pay-out, which results in new buyers being major beneficiaries. “If you sell before last day of registration then the buyer registers that transaction into their increased holding, which means during dividend pay-out the returns go to the new holder,” she said. “Not all retail investors actual understands this and they only realize after losses this an uninformed trading.”
BTCL, which made history in April 2016 by becoming Botswana’s first state owned enterprise to be privatized and the country’s first and only telecommunication company to be listed on the stock exchange, remains a profitable company with formidable asset base and positively progressing commercialisation process . The man at the helm of Megaleng House, Anthony Masunga said in several stakeholder engagements that his company is still on a transition and transformation period from being a government owned entity to fully commercialised entity.
“We continue with our journey to transform the operations of BTCL to enable sustainable growth of stakeholder value. Although BTCL transitioned from a parastatal when it converted to a public company limited by shares in 2012, the real work of transforming the operations of the business began post listing,” Masunga said at the recent results announcement. “As our shareholders expect a return on their investment, we want to deliver a solid performance focused on our two-prong strategy of both transformation and growth. The goal is to deliver to our shareholders, a fully transformed, agile and profitable company by 2020,” said Masunga.
Following a compressed 2017/18 financial year, depicted by 2 percent and 8 percent decline in revenues and profit before tax respectively, BTCL , the country’s only listed telecom outfit did not have it easy during the first half of 2018/19 financial year. The group reported another set of contracted figures in revenues and consequently shrunk profits for the six month period ended September 2018 when compared to first half of 2017.
The 12 percent decline in half year revenue attributable to a fall in mobile revenue figures and challenges with the new billing system amongst others is likely to dispatch into in overall low figures for the entire financial year which ends in March this year. However BTCL says it is a company in transition to an agile and fully commercial approach with sustainable growth patterns by 2020.
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.
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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.