Masisi speaks in favour of imports car regulation
President Mokgweetsi Masisi was among the attendees at the 24th Conference of Parties on Climate Change (COP24) held in Katowice Poland last week, where the rules for implementation of the Paris Agreement on climate change under the Paris Agreement work programme (PAWP) were finalised.
As the world engages on this serious conversation, to gather ideas and formulate policies and mitigation measures on how to collectively combat the globe’s greatest threat ever in centuries, Botswana has also joined the bandwagon. Botswana as a landlocked semi-arid country has been underscored as one of the African countries particularly in the Southern African region that could be adversely impacted by the catastrophic effects of this increasingly concerning pandemic.
World leaders amongst them Heads of States, researchers and key decision makers gathered at this high-level meeting to come up with practical measures against increasing global warming and depletion of ozone layer amongst others. President Masisi was accompanied by senior government officials. The largest human influence of global warming and undesirable climate change has been noted to emission of greenhouse gases such as carbon dioxide, methane, and nitrous oxide.
Botswana which is not yet an intensively industrial country, emissions are said to be by in large linked to Singapore and Japanese import vehicles which have been coming into Botswana in large number over the recent years. When addressing a press conference upon his arrival from Poland last Thursday, Masisi shared that his government would in the near future regulate the entry of the popular import cars.
He explained that government is currently in consultation with environmental experts, researchers and all stakeholders to assess the impacts of import car emissions into Botswana skies and its contribution to climate change. He said in turn “legislation would be put in place if deemed necessary to regulate with a view to contain and reduce the number these used imports entering Botswana Boarders.”
Still last week in Poland experts warned that global warming of 1.5 degrees Celsius and higher will mean even greater warming and damaging impacts for climate change ‘hotspots’ in the Southern Africa region underscoring Botswana and Namibia. The two countries are constantly noted as highly vulnerable to climate stresses with observers suggesting it was key for authorities in these respective countries to appreciate how surpassing the 1.5 degrees Celsius global limit will play out at the local level.
“For these hot, dry and water-stressed countries, local warming and drying will be greater than the global average. So, even a 1.5°C increase in global temperature will have severe local impacts, ushering in intensified and longer droughts and many more heat waves. Ironically, when rain does fall, it is expected to be much heavier, increasing the risk of heavy flooding within an overall drying climate,” said a renowned International Researchers Mark New and Brendon Bosworth in their recent report.
These researchers noted that with the prospect of worsening droughts, floods and other weather extremes on the horizon, the sooner southern African countries can prepare and implement adaptation strategies the better. Changes in rainfall are also projected to shift. At 1.5°C of global warming, experts say Botswana would receive 5 percent less annual rainfall, and Namibia 4 percent less. At 2.0°C global warming, annual rainfall in Botswana would drop by 9 percent, with annual rainfall in Namibia dropping by 7 percent.
Various analysts and commentators note that the impacts of higher global and local temperatures will be felt in various sectors key to the prosperity of people and economies in Botswana and Namibia. “Understanding when different levels of warming will occur, and what these mean for threats to vulnerable sectors like agriculture, health and water, is crucial for adaptation planning and thinking about what must be done, and by when,” says Brendon Bosworth an Environmentalist at the University of Cape Town.
In a hotter, drier future there will be less domestic water available. Runoff in Botswana’s Limpopo catchment is projected to decline by 26 percent at 1.5 degrees Celsius global warming, and by 36 percent at 2.0 degree Celsius. Agriculture is particularly vulnerable, with potential drops in crop yields and increased livestock losses. In Botswana, at 1.5 degrees Celsius global warming maize yields could drop by over 20 percent.
At 2.0 degrees Celsius warming, yields could slump by 35 percent. Rain-fed agriculture is already marginal across much of the country, and anticipated climate change may well make current agricultural practices unviable at 1.5 a degrees Celsius and above. “It is clearly evident that the greatest threat to economic prosperity and humankind as a whole is the adverse effect of climate change. It is, therefore, highly prudent that we are awakened to create a new era of global green growth. The time is now and not tomorrow,” said University of Botswana Vice Chancellor Professor Norris recently at a climate change workshop.
It has been underscored that Botswana urgently needs policies to facilitate climate change adaptation to protect the its tourist attraction sites amongst other the Okavango Delta, the country's most lucrative tourist. Tourism is Botswana’s second foreign income earner and contributor to GDP employing directly and indirectly over 25 000 people. The Okavango Delta which received UNESCO tag about 2 years ago is one of the country’s major tourist attraction landscapes with aesthetic sceneries watershed ecologies and breath-taking experience of leisure and relaxation.
Wame Hambira, from the Department of Environmental Science at the University of Botswana warned in the International Journal for Tourism Policy that that unless government policies take account of current and forecasted climate shifts, the tourism sector could be badly damaged, with serious implications for the wider economy.
"The declining precipitation and increasing temperatures have implications for the amount of inflow into the delta," she said adding that reduced inflow could result in swamps drying out and forests being replaced by grasslands, as a result, local animal species would either become extinct or move away, with catastrophic implications for tourism.
Business
LLR transforms from Company to Group reporting
Botswana Stock Exchange listed diversified real estate company, Letlole La Rona Limited (“LLR” or “the Company” or “the Group”), posted its first set of group financial statements which comprise the Company and Group consolidated accounts, which show strong financial performance for the six months ended 31 December 2023, with improvements across all key metrics.
The Company commenced the financial year with the appointment of a Deputy Chairperson, Mr Mooketsi Maphane, in order to bolster its governance and enhance leadership continuity through the development of a Board and Executive Management Succession Plan.
At operational level, LLR increased its shareholding in Railpark Mall from 32.79% to 57.79% and proudly took over the management of this prime asset.
The CEO of LLR, Ms Kamogelo Mowaneng commented “During the period under review, our portfolio continued to perform strongly, with improvements across all key metrics as a result of our ongoing focus on portfolio growth and optimisation.
“We are pleased to report a successful first half of the 2024 financial year, where we managed to not only grow the portfolio through strategic acquisitions and value accretive refurbishments but also recycled capital through the disposal of Moedi House as well as the ongoing sale of section titles at Red Square Apartments. The acquisition of an additional 25% stake in JTTM Properties significantly uplifted the value of our investment portfolio to P2.0 billion at a Group level. Our investment portfolio was further differentiated by the quality of our tenant base, as demonstrated by above market occupancy levels of 99.15% and strong collections of above 100% for the period”.
The growth in contractual revenue of 9% from the prior year’s P48.0 million to the current year P52.2 million, increased income from Railpark Mall, coupled with high collection rates, has enabled the company to declare a distribution of 9.11 thebe per linked unit, which is in line with the prior year.
In line with its strategic pillars of ‘Streamlined and Expanded Botswana Portfolio’ as well as ‘Quality African Assets’, the Group continuously monitors the performance of its investments to ensure that they meet the targeted returns.
“The Group continues to explore yield accretive opportunities for balance sheet growth and funding options that can be deployed to finance that growth” further commented the CEO of LLR Ms Kamogelo Mowaneng.
Ms Mowaneng further thanked the Group’s stakeholders for their continued support and stated that they look forward to unlocking further value in the Group.
Business
Botswana’s Electricity Generation Dips 26.4%
The Botswana Power Corporation (BPC) has reported a significant decrease in electricity generation for the fourth quarter of 2023, with output plummeting by 26.4%. This decline is primarily attributed to operational difficulties at the Morupule B power plant, as per the latest Botswana Index of Electricity Generation (IEG) released recently.
Local electricity production saw a drastic reduction, falling from 889,535 MWH in the third quarter of 2023 to 654,312 MWH in the period under review. This substantial decrease is largely due to the operational challenges at the Morupule B power plant. Consequently, the need for imported electricity surged by 35.6% (136,243 MWH) from 382,426 MWH in the third quarter to 518,669 MWH in the fourth quarter. This increase was necessitated by the need to compensate for the shortfall in locally generated electricity.
Zambia Electricity Supply Corporation Limited (ZESCO) was the principal supplier of imported electricity, accounting for 43.1% of total electricity imports during the fourth quarter of 2023. Eskom followed with 21.8%, while the remaining 12.1, 10.3, 8.6, and 4.2% were sourced from Electricidade de Mozambique (EDM), Southern African Power Pool (SAPP), Nampower, and Cross-border electricity markets, respectively. Cross-border electricity markets involve the supply of electricity to towns and villages along the border from neighboring countries such as Namibia and Zambia.
Distributed electricity exhibited a decrease of 7.8% (98,980 MWH), dropping from 1,271,961 MWH in the third quarter of 2023 to 1,172,981 MWH in the review quarter.
Electricity generated locally contributed 55.8% to the electricity distributed during the fourth quarter of 2023, a decrease from the 74.5% contribution in the same quarter of the previous year. This signifies a decrease of 18.7 percentage points. The quarter-on-quarter comparison shows that the contribution of locally generated electricity to the distributed electricity fell by 14.2 percentage points, from 69.9% in the third quarter of 2023 to 55.8% in the fourth quarter. The Morupule A and B power stations accounted for 90.4% of the electricity generated during the fourth quarter of 2023, while Matshelagabedi and Orapa emergency power plants contributed the remaining 5.9 and 3.7% respectively.
The year-on-year analysis reveals some improvement in local electricity generation. The year-on-year perspective shows that the amount of distributed electricity increased by 8.2% (88,781 MWH), from 1,084,200 MWH in the fourth quarter of 2022 to 1,172,981 MWH in the current quarter. The trend of the Index of Electricity Generation from the first quarter of 2013 to the fourth quarter of 2023 indicates an improvement in local electricity generation, despite fluctuations.
The year-on-year analysis also reveals a downward trend in the physical volume of imported electricity. The trend in the physical volume of imported electricity from the first quarter of 2013 to the fourth quarter of 2023 shows a downward trend, indicating the country’s continued effort to generate adequate electricity to meet domestic demand, has led to the decreased reliance on electricity imports.
In response to the need to increase local generation and reduce power imports, the government has initiated a new National Energy Policy. This policy is aimed at guiding the management and development of Botswana’s energy sector and encouraging investment in new and renewable energy. In the policy document, Minister of Mineral Resources, Green Technology and Energy Security Lefoko Moagi stated that the policy aims to transform Botswana from being a net energy importer to a self-sufficient nation with surplus energy for export into the region. Moagi expressed confidence that Botswana has the potential to achieve self-sufficiency in electric power supply, given the country’s readily available energy resources such as coal and renewable sources.
Business
MMG acquires Khoemacau in a transaction valued at P23Bn
MMG Limited, the Hong Kong-based mining company specializing in base metals, has successfully concluded the acquisition of Khoemacau Copper Mine, a state-of-the-art, world-class copper asset nestled in the northwest of Botswana.
On Monday, MMG announced that the acquisition of Khoemacau Mine in Botswana was finalized on 22nd March 2024. “This acquisition enriches the company’s portfolio with a top-tier, transformative growth project and signifies a monumental milestone in the Company’s journey,” MMG communicated in an official statement published on the Hong Kong Stock Exchange.
Upon completion of the acquisition, MMG remitted to the Sellers an Aggregate Consideration of approximately US$1,734,657,000 (over P23 billion), a sum subject to potential adjustments post-Completion.
In addition to the Aggregate Consideration, MMG, in accordance with the Agreement, advanced an aggregate amount of approximately US$348,580,000 (over P4.5 billion) as the Aggregate Debt Settlement Amount, to settle certain debt balances of the Target Group (Cuprous Capital/Khoemacau).
On November 21, 2023, Khoemacau announced that the shareholders of its parent company [Cuprous Capital] had agreed to sell 100% of their interests to MMG Limited.
MMG is a global resources company that mines, explores, and develops copper and other base metals projects on four continents. The company is headquartered in Melbourne, Australia, and has a significant shareholder, China Minmetals Corporation, which is China’s largest metals and minerals group owned by the Government of the People’s Republic of China.
On December 22, 2023, Khoemacau Copper Mining (Pty) Ltd received the approval from the Minister of Minerals and Energy of Botswana regarding the transfer of a controlling interest in the Project Licenses and Prospecting Licenses associated with the Khoemacau Copper Mine, a result of the Acquisition.
The Botswana Competition & Consumer Authority (CCA) on January 29, 2024, notified the market that it had given its approval for the takeover of Khoemacau Copper Mining by MMG Limited.
On January 29, 2024, the CCA issued a merger decision to the market, stating that after conducting all necessary assessments, it was ready to proceed.
The Competition Authority affirmed that the structure of the relevant market would not significantly change upon implementation of the proposed merger as the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service in the market of mining of copper and silver ores and the production, and sale or supply of copper concentrate in Botswana.
Furthermore, the CCA stated that the proposed merger would not have any negative impact on public interest matters in Botswana as per the provisions of section 52(2) of the Competition Act 2018.
Earlier this month, Minister of Minerals & Energy, Lefoko Maxwell Moagi, informed parliament that his Ministry was endorsing the Khoemacau acquisition by MMG Limited. He noted that not only was the company acquiring the existing operation but also committing to an expansion program that would cost over $700 million to double production, create more jobs for Batswana, and increase taxes and royalties paid to the Government.