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Greater Gaborone property market weak

There is a low demand for residential property and office space in Greater Gaborone despite the supply being higher, according to then last Monetary Policy Report of 2018 which was released end of October.  

The Monetary Policy Report is the main medium through which the Bank informs the public about the formulation and implementation of monetary policy. According to Bank of Botswana, the Report provides a comprehensive, forward-looking framework for policy formulation by the Monetary Policy Committee and serves as a basis for policy decisions.  It is produced three times a year; in April, August and October.

According to the Monetary Policy Report of October on the state of property sector in Botswana, the market for the lower and medium cost residential property is reported to be relatively strong compared to the weaker higher-end segment. “Residential property sales in areas adjacent to Gaborone, such as Mogoditshane, Gabane, Oodi and Modipane, were concluded at prices 10 – 20 percent lower than the valuations, signaling weaker demand for housing in those areas.

Overall, the average price for residential property sold in the first quarter of 2018 decreased by 2.5 percent to P765 000 compared to the previous quarter due to weaker demand,” said the Monetary Policy Report of October. The Report further states that the market for office space remains weak due to increasing supply from completed construction developments at the plush area of Central Business District (CBD) and slow take-up of office space is highly evident.

The October Monetary Report further states: “The supply for office space is likely to increase further going forward, given the ongoing construction projects at the CBD. Meanwhile, the demand for retail space remains fair across all market segments, with proposed major shopping centers in the CBD, Gaborone Block 10 and Mogoditshane.” According to the October Report from Bank of Botswana, there is a good demand for retail spaces in Palapye, Maun, Francistown and Mahalapye.

With regard to industrial property, the supply of vacant bigger warehouse space has decreased, while the demand has improved, said the Monetary Policy Report. According to the Report which provides a comprehensive, forward-looking framework for policy formulation by the Monetary Policy Committee, when looking ahead, the demand for prime location industrial space is expected to improve further.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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