Connect with us
Advertisement

Seed Co lists on BSEL main board

Leading certified seed producer, Seed Co International last week Friday officially listed on the main board of Botswana Stock Exchange Limited (BSEL).

Information from BSEL reveals that the international seed breeder & distributor listed 379,331,127 ordinary shares of the company issued share capital as of Friday 5th October 2018 and started trading the same day. Seed Co is one of the leading certified seed companies authorized to market seed varieties developed by itself, government and other associated seed breeders in its markets. From years of intensive investment in Research & Development (R & D) the Company is involved in the breeding, multiplication and distribution of mainly hybrid seed varieties for maize, wheat, soya beans, sugar beans, vegetables amongst other crops.

Headquartered in Gaborone the company  boasts of seed products produced from long-term scientific breeding programs ,designed to add value to farming operations , bringing with them appropriate immunity, resistance or tolerance to diseases and reliable high yield performance. Seed Co International was incorporated on the 7th of July 2000 in Botswana under the International Financial Services Centre, a tax cut fiscal framework aimed at promoting setting up of global companies in Botswana.

The Company was a wholly-owned subsidiary of Seed Co Limited, a company incorporated and domiciled in Zimbabwe, until 9 August 2018 when the shareholders of Seed Co Limited approved the unbundling and separate listing of Seed Co International. Seed Co International was partially-unbundled through a dividend-in- specie of its shares to Seed Co Limited shareholders. Seed Co Limited retained a 26% shareholding in Seed Co International. Seed Co International now a holding company of seed businesses in various countries falling under the “Seed Co” brand in Africa, excluding Zimbabwe.

Now listed on the BSEL main board the company runs the largest single out-grower scheme in the seed business in Africa and has the most extensive network of farmers, infrastructure, resources, geographical reach and technical know-how operating in over 15 countries, including Rwanda, Nigeria and Ghana amongst others. The listing of Seed Co brings a total number of BSEL domestic listed companies to twenty four 24.

Thapelo Tsheole Chief Executive Officer of Botswana Stock Exchange Limited observes that, “the listing of Seed Co underscores his exchange company’s commitment to growing the capital market in Botswana by providing a platform where companies can list and trade their shares. “This reinforces the value of listing companies on the exchange as this listing reiterates that for companies that wish to raise capital or increase visibility in the market, the stock exchange is the right avenue for that, we are happy to welcome a company of Seed Co’s stature to the market.”

Botswana market has not been spared by the current sluggish performance wave of emerging global markets. As of beginning of 2018 to date 1.2 billion pula had been traded mirroring an average daily turnover of about 6.7 million pula, lower than the 11.5 million pula experienced last year.

To date  BSE domestic market capitalization with regard to listed companies is sitting at well over 39.3 billion pula while the total market capitalization including foreign companies as well as listed  bonds stood at P410 billion, with 44 bonds issued .Of the 44 bonds listed, government bonds account for P10.2 billion market capitalization while P4.2 billion is accounted  for by  corporate bonds signaling an improvement on the bonds to P1.3 billion  so far this year compared to P268 million at close of business last year.

Continue Reading

Business

Botswana on high red alert as AML joins Covid-19 to plague mankind

21st September 2020
Botswana-on-high-alert-as-AML-joins-Covid-19-to-plague-mankind-

This century is always looking at improving new super high speed technology to make life easier. On the other hand, beckoning as an emerging fierce reversal force to equally match or dominate this life enhancing super new tech, comes swift human adversaries which seem to have come to make living on earth even more difficult.

The recent discovery of a pandemic, Covid-19, which moves at a pace of unimaginable and unpredictable proportions; locking people inside homes and barring human interactions with its dreaded death threat, is currently being felt.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Finance Committee cautions Gov’t against imprudent raising of debt levels

21st September 2020
Finance Committe Chairman: Thapelo Letsholo

Member of Parliament for Kanye North, Thapelo Letsholo has cautioned Government against excessive borrowing and poorly managed debt levels.

He was speaking in  Parliament on Tuesday delivering  Parliament’s Finance Committee report after assessing a  motion that sought to raise Government Bond program ceiling to P30 billion, a big jump from the initial P15 Billion.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Gov’t Investment Account drying up fast!  

21st September 2020
Dr Matsheka

Government Investment Account (GIA) which forms part of the Pula fund has been significantly drawn down to finance Botswana’s budget deficits since 2008/09 Global financial crises.

The 2009 global economic recession triggered the collapse of financial markets in the United States, sending waves of shock across world economies, eroding business sentiment, and causing financiers of trade to excise heightened caution and hold onto their cash.

The ripple effects of this economic catastrophe were mostly felt by low to middle income resource based economies, amplifying their vulnerability to external shocks. The diamond industry which forms the gist of Botswana’s economic make up collapsed to zero trade levels across the entire value chain.

The Upstream, where Botswana gathers much of its diamond revenue was adversely impacted by muted demand in the Midstream. The situation was exacerbated by zero appetite of polished goods by jewelry manufacturers and retail outlets due to lowered tail end consumer demand.

This resulted in sharp decline of Government revenue, ballooned budget deficits and suspension of some developmental projects. To finance the deficit and some prioritized national development projects, government had to dip into cash balances, foreign reserves and borrow both externally and locally.

Much of drawing was from Government Investment Account as opposed to drawing from foreign reserve component of the Pula Fund; the latter was spared as a fiscal buffer for the worst rainy days.

Consequently this resulted in significant decline in funds held in the Government Investment Account (GIA). The account serves as Government’s main savings depository and fund for national policy objectives.

However as the world emerged from the 2009 recession government revenue graph picked up to pre recession levels before going down again around 2016/17 owing to challenges in the diamond industry.

Due to a number of budget surpluses from 2012/13 financial year the Government Investment Account started expanding back to P30 billion levels before a series of budget deficits in the National Development Plan 11 pushed it back to decline a decline wave.

When the National Development Plan 11 commenced three (3) financial years ago, government announced that the first half of the NDP would run at budget deficits.

This  as explained by Minister of Finance in 2017 would be occasioned by decline in diamond revenue mainly due to government forfeiting some of its dividend from Debswana to fund mine expansion projects.

Cumulatively since 2017/18 to 2019/20 financial year the budget deficit totaled to over P16 billion, of which was financed by both external and domestic borrowing and drawing down from government cash balances. Drawing down from government cash balances meant significant withdrawals from the Government Investment Account.

The Government Investment Account (GIA) was established in accordance with Section 35 of the Bank of Botswana Act Cap. 55:01. The Account represents Government’s share of the Botswana‘s foreign exchange reserves, its investment and management strategies are aligned to the Bank of Botswana’s foreign exchange reserves management and investment guidelines.

Government Investment Account, comprises of Pula denominated deposits at the Bank of Botswana and held in the Pula Fund, which is the long-term investment tranche of the foreign exchange reserves.

In June 2017 while answering a question from Bogolo Kenewendo, the then Minister of Finance & Economic Development Kenneth Mathambo told parliament that as of June 30, 2017, the total assets in the Pula Fund was P56.818 billion, of which the balance in the GIA was P30.832 billion.

Kenewendo was still a back bench specially elected Member of Parliament before ascending to cabinet post in 2018. Last week Minister of Finance & Economic Development, Dr Thapelo Matsheka, when presenting a motion to raise government local borrowing ceiling from P15 billion to P30 Billion told parliament that as of December 2019 Government Investment Account amounted to P18.3 billion.

Dr Matsheka further told parliament that prior to financial crisis of 2008/9 the account amounted to P30.5 billion (41 % of GDP) in December of 2008 while as at December 2019 it stood at P18.3 billion (only 9 % of GDP) mirroring a total decline by P11 billion in the entire 11 years.

Back in 2017 Parliament was also told that the Government Investment Account may be drawn-down or added to, in line with actuations in the Government’s expenditure and revenue outturns. “This is intended to provide the Government with appropriate funds to execute its functions and responsibilities effectively and efficiently” said Mathambo, then Minister of Finance.

Acknowledging the need to draw down from GIA no more, current Minister of Finance   Dr Matsheka said “It is under this background that it would be advisable to avoid excessive draw down from this account to preserve it as a financial buffer”

He further cautioned “The danger with substantially reduced financial buffers is that when an economic shock occurs or a disaster descends upon us and adversely affects our economy it becomes very difficult for the country to manage such a shock”

Continue Reading
Do NOT follow this link or you will be banned from the site!