BITC new CEO reveals five-year strategy
Botswana Investment & Trade Center (BITC) newly appointed Chief Executive Officer (CEO), Keletsositse Olebile this week delivered a new strategic path for the investment wooing and trade facilitation agency.
Olebile who has been with BITC since inception fully ascended to the helm beginning of August this year after the organization went for more than a year without a substantive Chief Executive. This came about after both founding Chief Executive Sejoe Letsebe and Meshack Tshekedi’s resignations. The latter was Acting CEO after the former resigned early 2017.
Mandated with facilitation of both Foreign and Domestic Investment, employment creation and export earnings value amongst others BITC was established in 2012 by an act of parliament as a merger between Botswana Export Development and Investment Authority (BEDIA) and the Botswana International Financial Services (IFSC) to become an integrated Investment and Trade Promotion Authority (ITPA).
Olebile revealed that since its inception in 2012 Botswana Investment Trade Centre has delivered annual corporate performance of around 80 percent on average with the least being 73.8 percent in the 2016/17 financial year. “Overall performance as evaluated against strategic focus areas over the past five year as been above our 80 percent target on average at 83.95 percent, “he said.
Olebile explained that since its establishment BITC has delivered a total of over 12 billion pula in capital investment with Actual foreign Direct Investment accounting for 6.162 billion pula and Domestic Investment accounting for over 5.8 billion pula. “From all this a total of 11 881 jobs were created, this is measured from business facilitated and accredited by BITC only, we have taken a deliberate decision to gauge our performance within the investments we facilitated only, on the national economic space as per the Central Bank statistics and Statistics Botswana figures the number obviously in tens of volumes of billions more than this” he said.
Transiting from the lapsing strategy which took-off in 2013 ending this year, Olebile shared that the strategic direction was based on two themes, notably, ‘Effectiveness’ and ‘Growth’. He deliberated that the effectiveness theme focused on improvement of service effectiveness through effective coordination, technology optimization, service quality, process optimization and partner performance.
On the part of ‘Growth’ the just ended strategy premised on expanding and growing the market through targeted promotion, service differentiation, focused value proposition, sector prioritization and optimization of funding opportunities. Going forward, after five years of formative years, setting-up of operational structures and creating cordial relationships with local economic growth stakeholders as well external investment promotion authorities, BITC now seeks to take investment promotion to the next level with a new 5 year strategy that will run from this year until 2023.
The new captain explained that his organization borrowed a number of lessons from the past strategy such as a compelling need to continuously raise the level of attractiveness of the country’s value offering to investors, the need for effective stakeholder alignment in facilitating opportunities for investors. “We also took home the need to engage more in strategic advocacy agenda with various stakeholders,” he said.
Further deliberating on the new strategy Olebile echoed that the new path will be anchored around and aligned to Botswana‘s macro economics goals as outlined in the National Vision 2036; National Development Plan 11 and the Ministry of Investment, Trade & Industry (MITI) strategic plan. “We seek to archive alignment to national plans and strategic objectives , for instance the National Vision 2036 already dictates to us the key sectors we have to promote , they are well defined in the document as Botswana ‘s national priorities,” he said.
With the new strategy national investment wooing vehicle also intends to align to global trends and best practice in a bid to keep the agency at par if not ahead of other competitors. “We have crafted the strategy in such a way that it provides a window of continued updating and aligning of our deliverables to keep base and with times of evolving global economic & investment trends,“ noted Olebile.
The CEO also echoed that the main strategic drive behind BITC’s support to the macro-economic landscape was anchored on positioning Botswana as a destination of choice for investment, to accelerate local and foreign investment and equally facilitate export development and promote the Nation’s Brand.
“With this new strategic blueprint we seek to transform BITC into a leading Investment and Trade Promotion Agency, and by extension, propel Botswana into a renowned and globally acclaimed trade and investment destination,” he said. Another key goal in the Botswana Investment & Trade Centre new paths is the ambition to expand revenue generated in-house.
Currently BITC‘s budget is 85 percent resourced by government subvention which is in the region of 95 million pula annually while 15 percent of the budget is self generated from in-house revenue sources such as 47 000 hectors of industrial factory shells rented to BITC accredited investors.
“Our aspiration also as per encouragement from our principals, being government, is to increase our self-generated income by exploring various avenues such as industrial property space, we seek to increasingly move towards winning ourselves from government funding, we believe with some of these targeted investments in property and other asset portfolios as permitted by underpinning act that established us we can ultimately with time relieve the government of the subvention funding.
BITC as the organization also tasked with the National image building and global awareness revealed that more deliberate actions will be taken to further package and promote Botswana‘s image and brand on the global space as an ideal place for business. Bame Moremong, Executive Director of Brand Management Botswana shared that BITC has engaged Botswana National Sports Commission (BNSC) and Botswana National Olympic Committee (BNOC) on how the country can leverage on the exceptional performance of local athletes on international competitions to raise further awareness on Brand Botswana and facilitate the investment attraction narrative. BITC revealed that going forward the institution would engage international media corporations such as BBC for raising global awareness about Botswana.
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.