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Afinitas Group to tackle its lofty deficit this year

Afinitas Limited British Managing Director Rupert McCammon believes the company will grow in leaps and bounds this year despite its latest financial report showing that it has been operating on deficit in 2017.  Afinitas is a green field investment pan African company incorporated in Botswana and listed in the Botswana Stock Exchange.

According to the latest results of the financial year which ended in 31 December 2017, Afinitas Limited recorded a loss of US$ 1 408 252 while last year its operating loss was at US$ 382 319. The Afinitas loss increased by US$1 025 933 in the last financial year. Between 2016 and 2017(for the period recorded) Afinitas did not move up its revenue as it only increased its revenue by US$ 119 595. McCammon wishes in this year, the company can grow its revenue in his statement.

“2017 was a year of building appropriate corporate structures and systems that will allow your company to grow in future years, these are now mainly in place. The challenge for 2018 and onwards will be to focus on increasing revenue in all three of the investee companies,” said McCammon.

Afinitas also increased expenses in 2017 to US$1 878 401 from US$704 058 in 2016. The expenses increased by US$ 1 1743 43. The report shows that in 2017 Afinitas spent more US$ 751 602 in Consulting and professional fees which took most of their expenses as the consultancy charges increased by US$ 594 577 from the US$157 045 in 2016.

Afinitas chairman Lesang Magang reiterated McCammon’s worry that the company has been making less revenue  if not nose-diving as far as revenue is concerned. Magang said from now on the company will focus on revenue growth across the Afinitas Group. He further promised that the existing corporate structure and their talented team will provide a strong platform to achieve this.

Magang said the operational focus for the Group was on building operational and corporate structures to support the business strategy in each of the investee companies. Afinitas has three investee businesses namely, Africa Events Limited, Ethiopia Investments Limited and Adventis Limited. Ethiopia Investments Limited is a holding company for investments in Ethiopia, Adventis is a pan African fund management company while Africa Events is a high level events management company.

According to the latest financial statement, Afinitas’s main revenue are derived from Africa Events Limited as its biggest event, the Africa Financial Services Investment Conference(AFSIC)  continued to show strong growth in delegate numbers, and revenue as it develops into one of the most important Africa investment events globally. Afinitas believes that AFSIC will thrive and grow more as Africa is likely to become one of the more exciting investment destinations globally.

Afinitas is also confident that Ethiopia Investments Limited that will grow this year amidst Ethiopia experiencing some political issues since 2015. “In light of the ongoing political and social developments in Ethiopia, it was deemed prudent to make an impairment provision for the operations in Ethiopia. Shareholders are advised that despite this provision management is optimistic that the Ethiopia operations have good potential for growth,” said Afinitas.

Commenting on Ethiopia’s political tension effect on the company’s performance, Afinitas Executive Director Leutlwetse Tumelo told BusinessPost that the political landscape in Ethiopia has not had any material adverse effects on their  operations in the country. “We maintain a positive long term outlook on Ethiopia as an investment destination,” he said.

The executive directors on the Board of Afinitas are Rupert McCammon (Managing Director) and Tumelo (Executive Director). Renowned economist Keith Jefferies is an independent non-executive director while Magang is a non-executive chairman. Magang takes a director’s fee of $7799, Jefferis $8644 and McCammon who does not earn a salary in his capacity as managing director pockets fee of $7802. As an executive director, Tumelo is entitled to a monthly salary of $74 394.

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Business

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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Business

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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