Masisi’s jobs commitment questioned
Botswana Federation of Public Sector Unions (BOFEPUSU) Secretary General Tobokani Rari has expressed worry over President Mokgweetsi Masisi’s remaining mum on the issue of technology being a major threat to the future of jobs. This is despite the president being a huge advocate of job creation and being dubbed by the media as a “jobs president.”
Rari’s deliberation follows World Bank Group President, Jim Yong Kim’s persistent worry over the future of jobs that will be affected by automation of jobs or the revolution of technology that often replaces human jobs. BusinessPost had sought Rari’s comment on the matter.
Recently, Kim alarmed the world on the threat that will come with technology eating out jobs in the future. Kim made these utterances through his recent blog posted on the World Bank Group website titled ‘What will be the future of work?’ Since last year, Kim has been warning the world on the repercussions that will come with automation of jobs, especially in developing countries.
Kim said about two-thirds of jobs in the developing world may be lost to automation. The 12th President of the World Bank Group also advised policymakers to take action by investing in education and health to prepare for the future of work. Human capital should become an ever more valuable resource, said the World Bank chief.
“Do you wonder if the good fortune and opportunities that you’ve enjoyed in your professional life will be available to your children, and to their children? At a time of strong global economic growth, it may seem paradoxical that we face an existential crisis around the future of work. But the pace of innovation is accelerating, and the jobs of the future – in a few months or a few years – will require specific, complex skills,” read Kim’s article in part.
Kim’s words are part of a song repeated by analysts who have been giving predictions of the large impact that robot-assisted jobs automation will have on human labour around the world. Even though the discussion of the future of jobs did not make it to BOFEPUSU’s elective congress agenda held this month, Rari said the latest International Labour Organization (ILO) made a dialogue on the future of work. The labour activist said they are willing to take the debate and localize it, but Masisi should be at the helm of the dialogue already.
“The fact that the current administration has been silent on the issue of the future of jobs means it is going to be reactive on the issue,” said Rari. Rari said the advent of technology cannot be blocked. He said it is also undeniable that robots or technology will eventually replace jobs. Therefore training in education should change and there should be a move towards retooling and re-skilling, according to Rari who was advising Masisi’s fresh regime. He said Masisi should prepare for changes and protect the future of jobs. According to him, technology will come with more bad effects like retrenchment of people from jobs.
Rari is of the view that Botswana is not already a technology savvy country therefore the advent of robotics or automated jobs will come with the lack of skills to operate the machinery. He said Botswana is not yet advanced in technology and many are not well equipped in attending to defects that come with it. Rari lamented that technology has come with its downside as currently we have the “system down” disservice at our disposal.
Rari also made his take on Masisi’s utterances that civil service will be cut down, something which Rari opposes saying that the president should demonstrate first that the civil service is bloated. Like Rari said, Masisi is yet to talk about the future of jobs.
He has been an ardent believer in creation of jobs even three years before he became president he met with the private sector to discuss on how to solve the issue of unemployment which was 19.8 percent at that time for a population of 2 million. At that time when government was faced with a Botswana Aids Impact Survey of 2013 report that said most youth aged between 15 and 35 were without employment, Masisi appealed to the private sector to enroll a significant number of graduates so as to give them meaningful challenges and tasks.
Recently Masisi hosted a luncheon and invited public sector trade unions and opened up on his vision which is to build a Botswana that provides opportunity and dignity for all. He told trade unions that Botswana is confronted by numerous challenges such as high unemployment, low productivity and poverty among some sections of our population, particularly the youth.
He said, “as I stated in my maiden speech, unemployment, especially of young people, poses a threat to the future and security of this country.” The president did not mention the future of jobs or jobs automation, despite Botswana being among the developing countries said to be faced with the threat as suggested by the World Bank,
Botswana countenancing the advent of automation of jobs
Botswana’s diamond partner De Beers is venturing in production of synthetic diamonds, meaning manual jobs will be lost. Synthetic diamonds are produced in a lab using machinery unlike natural diamonds where manpower is needed to dig up the diamonds and then refine them.
Recently the media has reported that the Directorate of Intelligence Services has purchased Unmanned Aerial Vehicle (UAV) which can fly autonomously based on pre-programmed flight plans or more complex dynamic automation system. Minister of Transport, Kitso Mokaila also revealed this year that government will be using automated testing cars to replace driving schools.
Further, there is the controversial electronic voting machines which will also shed a few jobs. Banks have also introduced ATMs deposits where people can just deposit money without stepping up to a teller inside the bank. Ironically the ministry that is tasked with driving creation and protection of jobs, the Ministry of Employment, Labour Productivity and Skills Development, is currently using Point Of Sale(POS) machines which are used to enhance the HR and accounting departments of the ministry. It can monitor employees and has accounting softwares.
Masisi embraces technology as heard in his inauguration speech. “In line with Vision 2036, investment in research, science, technology and innovation will be prioritised to enable our transformation into a knowledge based economy. To this end, I will ensure that the transformation of education and training, through the Human Resource Development Strategy of 2009, receives all the necessary support that is required in order to ensure that education meets the needs of industry,” said Masisi.
Private sector not worried
However Business Botswana President Gobusamang Keebine says Botswana is still far when it comes to the revolution of technology taking away jobs. Unlike Rari, the Business Botswana president is not worried that robots will replace people in their jobs. He said Botswana is not like economies like South Africa who are more advanced in manufacturing and technology. “It is still early to worry about robotics taking away jobs. We should rather worry about creating more jobs as the private sector and government…meaningful jobs for that matter,” said Keebine.
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.