Total Botswana’s newly appointed Managing Director, Diego Mtshali has announced the company’s plan to increase presence in Botswana, after playing second fiddle for some time to other competitors in the petroleum industry.
As the new MD of Total Botswana, Mtshali is responsible for all Total business activities in Botswana which include fuel and lubricants importation, storage, dispatch to retail and commercial customers, safety in their operations and overall profitability of Total Botswana.
Mtshali took over the reign in January this year, with a clear mandate to turn around the fortunes of the company in Botswana.
“It is an anomaly [in Botswana]. If you look at other countries, we have dominant market share, but here, I would say, we have been shy,” Mtshali told BusinessPost this week. While Total’s market share in Botswana is in single digits, the giant petroleum company controls 30 percent of the market in Zambia, 20% in Mozambique, over 35% in Zimbabwe and 13% in Namibia. Mtshali said this is an indication that they are dominant in the region.
“Botswana comes out as pain and we are trying to resolve the damage done over the years. We are trying to be more visible and make our presence felt.” The new MD has admitted that the company has not leveraged on its partnerships with various entities or its international stature in improving its visibility in the country.
Total is a sponsor of CAF Champions League, something which the new MD believes the company should have used to leverage on, following the historic performance by Township Rollers in the tournament. Mtshali hinted that as part of making amends in Botswana, the Total Southern Africa group took a decision to unbundle the group and give each country autonomy, including in decision making. Botswana was treated as one together with Lesotho, Swaziland, and Namibia. After the unbundling Botswana remains a ‘pain’ to the group and Mtshali has been brought in to provide the ‘medicine’.
Total, which is the continent’s leading [16 percent market share] and fourth world leading Petroleum Company, is currently ranked fifth in Botswana, something which the new MD considers not good enough for the company. Total has been in in Botswana since 1967 and currently operates 12 service stations out of the 220 service stations countrywide. “We operate in the retail space. We import and store fuel and dispatch to the market. We also import lubricants and sell to the market,” Mtshali explained Total’s business model.
“Our plan is to have at least three more by first quarter (Q1) of 2019,” revealed Mtshali. “We already have one under construction in Kanye, and we looking forward to add two more.” Mtshali admitted that it will not be easy to fix a problem that last over 30 years in just 5 years, “but we are working hard to address the anomaly.” Total has 4500 service stations in Africa while the number 2 company has only 2300, “this demonstrates our dominance in the petroleum space hence Botswana is an anomaly,” he stressed.
Total is also an indomitable in the lubricants space as well as gas. Mtshali underscores that, with the number of import car entering the country, demand for fuel has been rising consistently over the years. It is against this reason that, the new Total Botswana boss wants his company to tap onto this growth. “Botswana’s petroleum industry is growing on average by 2.5 percent. We want to ride on that in our growth strategy,” he said. Mtshali said Total aims to increase its market share without necessarily eating into the share of other competitors.
Botswana imports and uses 100 million litres of fuel on annual basis. With complaints persistent about the rising price of fuel, Mtshali indicated that, such development is influenced by demand and supply in the international market; to be precise, the Singapore, Arabian hubs as well as the Mediterranean region.
In rise in demand in these regions, caused by different factors such as natural disasters, lead to a rise in prices in Africa. The US market however does not have any bearing on the petroleum industry in Botswana, according to Mtshali. Mtshali, with a BSc in Chemical Engineering from University of Kwa-Zulu Natal and MBA in Business Management from University of Cape Town has dedicated all years of his work in the petroleum industry.
His work experience is based in the Oil and Gas industry where he has worked in Process Engineering; Crude, Production and Supply Planning. Prior to join Total Botswana has MD, he served served as Production Planning Manage, under the same company. Total is a French multinational integrated oil and gas company and one of the seven " Supermajor" oil companies in the world.
Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large scale chemicals manufacturer and a major player in low-carbon energies.
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.
African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.
The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.
The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.
To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”
Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.
The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.
“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.
“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.
The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.
About the World Economic Forum Annual Meeting 2023
The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,
Electricity generation in Botswana during the third quarter of 2022 declined by 15.8%, following operational challenges at Botswana Power Corporation’ Morupule B power plant, according to Statistics Botswana Index of Electricity Generation (IEG) released last week.
The index shows that local electricity generation decreased by 148,243 MWH from 937,597 MWH during the second quarter of 2022 to 789,354 MWH during the third of quarter of 2022.
This decrease, according to the index, was mainly attributed to a decline in power supply realized at Morupule B power station. The index shows that as a result of low power supply from the plant, imported electricity during the third quarter of 2022 increased by 76.3 percent (123,831 MWH), from 162,340 MWH during the second quarter of 2022 to 286,171 MWH during the current quarter and Statistics Botswana added that the increase was necessitated by the need to augment the shortfall in generated electricity.
In the index Statistics Botswana stated that Eskom was the main source of imported electricity at 42.0 percent of total electricity imports. “The Southern African Power Pool (SAPP) accounted for 38.4 percent, while the remaining 10.1, 9.1 and 0.5 percent were sourced from Electricidade de Mozambique (EDM), Cross-border electricity markets and the Zambia Electricity Supply Corporation Limited (ZESCO), respectively. Cross-border electricity markets are arrangements whereby towns and villages along the border are supplied with electricity from neighbouring countries such as Namibia and Zambia.”
The government owned statistics entity stated that distributed electricity decreased by 2.2 percent (24,412 MWH), from 1,099,937 MWH during the second quarter of 2022 to 1,075,525 MWH during the third quarter of 2022. The entity noted that electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 85.2 percent during the third quarter in 2022 and added that this gives a decline of 11.8 percentage points. “The quarter-on-quarter comparison shows that the contribution of electricity generated to electricity distributed decreased by 11.8 percentage points compared to the 85.2 percent contribution during the second quarter of 2022.”
Statistics Botswana meanwhile stated that the year-on-year analysis shows some improvement in local electricity generation. Recent figures from entity show that the physical volume of electricity generated increased by 36.3 percent (210,319 MWH), from 579, 036 MWH during the third quarter of 2021 to 789,354 MWH during the current quarter. According to Statistics Botswana electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 57.7 percent during the same quarter in 2021. This gives an increase of 15.7 percentage points.
The entity noted that trends also show an increase in physical volume of electricity distributed from 2013 to the third quarter of 2022, thereby indicating that there are ongoing efforts to meet the domestic demand for power. “There has been a gradual increase of distributed electricity from the first quarter of 2013 to the third quarter of 2022, even though there are fluctuations. The year-on-year perspective shows that the amount of distributed electricity increased by 7.2 percent (71,787 MHW), from 1,003,738 MWH during the third quarter of 2021 to 1,075,525 MWH during the current quarter.”
The statistics entity noted that year-on-year analysis show that during the third quarter of 2022, the physical volume of imported electricity decreased by 32.6 percent (138,532 MWH), from 424,703 MWH during the third quarter of 2021 to 286,171 MWH during the third quarter of 2022. “There is a downward trend in the physical volume of imported electricity from the first quarter of 2013 to the third quarter of 2022. The downward trend indicates the country’s continued effort to generate adequate electricity to meet domestic demand, hence the decreased reliance on electricity imports.”