Masisi rebukes Guma, Sadique
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Attempts by Vice President Mokgweetsi Masisi to intervene in the row involving Tati East legislator, Samson Moyo Guma and Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang hit a snag this week as Kebonang failed to attend a party meeting organised by the VP to deal with the feud.
Last week, the duo was involved in an online spat. The exchange followed Guma’s utterances in parliament, in the absence of Kebonang who chose to respond via social media instead. The two legislators’ feud is resultant of the landmark case regarding the misuse of the P250 million of the National Petroleum Fund (NPF).
According to reports reaching WeekendPost the Vice President decided to step in because he is worried the two MP’s public row could cost the party particularly at next year’s general elections. Sources close to developments quote Masisi as having said: “We are leaders and we should behave as such, not casually like it is the case. BDP is the only party and we should discuss such things as it might cost us big time in the future.”
Botswana Democratic Party (BDP) chief whip Liakat Kablay confirmed that this week’s party meeting was purely meant to address the duo’s squabbles. “As a party we should be united especially in public fora and the intention was to call both Sadique and Guma to reconcile them unfortunately the former was on an official trip to London so the matter could not go any further.” The VP has reportedly taken the issue to heart and it is expected that the two will be called again next week to appear before him (Masisi) and smoke a peace pipe.
THE EXCHANGE…
“Honourable minister kindly put your house in order before you talk of increasing fuel prices. Put your house in order with regards to the National Petroleum Fund (NPF). We are not saying anyone is corrupt but what is happening at your ministry is pure thuggery. As the minister, the buck stops with you," Moyo said when responding to the budget proposal by Minister Kebonang.
Kebonang who had kept quiet for some time took to Facebook and posted in response to Moyo: “Guma has the tendency to malign people’s characters. Just a few years ago he had a case of money laundering. Nobody asked him to resign. Was he an embarrassment to the party and the country? Once he also threatened to resign from parliament. He didn’t. He carries himself like this angel of high moral standards when he is far from it. He is no saint and a role model. One doesn’t even know his educational background even though he likes to claim to be this sophisticated accountant and auditor. This is a man who never lasted as assistant minister or even chairman of the party. I have come to the conclusion that he is not mentally stable and is very silly.”
According to the sources, the party is equally shocked by the two’s public squabbles as they have always been close allies. While others within the BDP suggested that this could be a gimmick by the MPs for them to win the heart of the incoming president and position themselves better for the impending cabinet reshuffle, Guma has always been clear that he doesn’t want any ministerial portfolio. On the other hand it is said Kebonang is worried the same allegations may hamper his return to the ministerial seat either after the inauguration of Masisi or post the general elections.
“I’m not going to be afraid to speak about the National Petroleum Fund just because the minister is somewhere out there posting about me on Facebook. It does not matter and am not scared of a graduate of some mental asylum. I repeat he must resign. As we sit here the NPF has not been audited for 2 years. I will not fear to talk about him because he will write on Facebook. In fact he needs to come here to parliament,” Moyo said in parliament.
Maele mum over dustbin money
Meanwhile at the same meeting, it was also expected that Minister of Land Management, Water and Sanitation Services, Prince Maele would clear his name regarding the dustbin saga, but he is said to have avoided commenting all together. “He didn’t say anything and there was no pressure for him to say anything but we thought he would say something regarding the recent dustbin drama and if possible other reports that have implicated him. The thing is you can’t understand him, sometimes he is jolly and going around greeting others and at times he is just tough, so no one could bother him at the meeting since he was hard again,” a source highlighted.
But elsewhere Minister Maele has made his position clear. He has pointed out that the P50 000 loot found at his vacant residence inside a dustbin was a setup and he has named his suspects. Maele believes that he is a threat to some in the BDP and they are trying all tricks to have him removed as Minister and by extension from his constituency. He has vowed to clear his name.
With these scandals threatening the ruling party, Members of Parliament have cautioned the incoming president to be careful when selecting his cabinet. “The thing we have been talking about is when Masisi assumes power he should be cautious about who he chooses for his cabinet. He must avoid young boys; this is a senior position that should be given to a mature person. Again he should look at the background of the potential ministers, you can’t put a hungry person there and not expect corruption and these other bad things which tarnish the image of the party,” a source cautioned.
These reports and many more which are threatening BDP’s rule are expected to be discussed at length at the party’s 54th National council this weekend (Friday& Saturday). The party is said to be treating the matter with sensitivity hence the decision to deal with the issues at their internal meeting. “Some questions are expected to be fielded at the national council because party members want to know and for sure they will ask questions,” Kablay said.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.
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BPC Signs PPA with Sekaname Energy
The Botswana Power Corporation (BPC) has taken a significant step towards diversifying its energy mix by signing a power purchase agreement with Sekaname Energy for the production of power from coal bed methane in Mmashoro village. This agreement marks a major milestone for the energy sector in Botswana as the country transitions from a coal-fired power generation system to a new energy mix comprising coal, gas, solar, and wind.
The CEO of BPC, David Kgoboko, explained that the Power Purchase Agreement is for a 6MW coal bed methane proof of concept project to be developed around Mmashoro village. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy in the energy mix. The use of coal bed methane for power generation is an exciting development as it provides a hybrid solution with non-dispatchable sources of generation like solar PV. Without flexible base-load generation, the deployment of non-dispatchable solar PV generation would be limited.
Kgoboko emphasized that BPC is committed to enabling the development of a gas supply industry in Botswana. Sekaname Energy, along with other players in the coal bed methane exploration business, is a key and strategic partner for BPC. The successful development of a gas supply industry will enable the realization of a secure and sustainable energy mix for the country.
The Minister of Minerals & Energy, Lefoko Moagi, expressed his support for the initiative by the private sector to develop a gas industry in Botswana. The country has abundant coal reserves, and the government fully supports the commercial extraction of coal bed methane gas for power generation. The government guarantees that BPC will purchase the generated electricity at reasonable tariffs, providing cash flow to the developers and enabling them to raise equity and debt funding for gas extraction development.
Moagi highlighted the benefits of developing a gas supply industry, including diversified primary energy sources, economic diversification, import substitution, and employment creation. He commended Sekaname Energy for undertaking a pilot project to prove the commercial viability of extracting coal bed methane for power generation. If successful, this initiative would unlock the potential of a gas production industry in Botswana.
Sekaname Energy CEO, Peter Mmusi, emphasized the multiple uses of natural gas and its potential to uplift Botswana’s economy. In addition to power generation, natural gas can be used for gas-to-liquids, compressed natural gas, and fertilizer production. Mmusi revealed that Sekaname has already invested $57 million in exploration and infrastructure throughout its resource area. The company plans to spend another $10-15 million for the initial 6MW project and aims to invest over $500 million in the future for a 90MW power plant. Sekaname’s goal is to assist BPC in becoming a net exporter of power within the region and to contribute to Botswana’s transition to cleaner energy production.
In conclusion, the power purchase agreement between BPC and Sekaname Energy for the production of power from coal bed methane in Mmashoro village is a significant step towards diversifying Botswana’s energy mix. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy. The government’s support for the development of a gas supply industry and the commercial extraction of coal bed methane will bring numerous benefits to the country, including economic diversification, import substitution, and employment creation. With the potential to become a net exporter of power and a cleaner energy producer, Botswana is poised to make significant strides in its energy sector.
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UDC deadlock: Boko, Ndaba, Reatile meet
It is not clear as to when, but before taking a festive break in few weeks’ time UDC leaders would have convened to address the ongoing deadlock surrounding constituency allocation in the negotiations for the 2024 elections. The leaders, Duma Boko of the UDC, Mephato Reggie Reatile of the BPF, and Ndaba Gaolathe of the AP, are expected to meet and discuss critical matters and engage in dialogue regarding the contested constituencies.
The negotiations hit a stalemate when it came to allocating constituencies, prompting the need for the leaders to intervene. Representatives from the UDC, AP, and BPF were tasked with negotiating the allocation, with Dr. Patrick Molotsi and Dr. Philip Bulawa representing the UDC, and Dr. Phenyo Butale and Wynter Mmolotsi representing the AP.
The leaders’ meeting is crucial in resolving the contentious issue of constituency allocation, which has caused tension among UDC members and potential candidates for the 2024 elections. After reaching an agreement, the leaders will engage with the members of each constituency to gauge their opinions and ensure that the decisions made are favored by the rank and file. This approach aims to avoid unnecessary costs and conflicts during the general elections.
One of the main points of contention is the allocation of Molepolole South, which the BNF is adamant about obtaining. In the 2019 elections, the UDC was the runner-up in Molepolole South, securing the second position in seven out of eight wards. Other contested constituencies include Metsimotlhabe, Kgatleng East and West, Mmadinare, Francistown East, Shashe West, Boteti East, and Lerala Maunatlala.
The criteria used for constituency allocation have also become a point of dispute among the UDC member parties. The issue of incumbency is particularly contentious, as the criterion for constituency allocation suggests that current holders of UDC’s council and parliamentary seats should be given priority for re-election without undergoing primary elections. Disadvantaged parties argue that this approach limits democratic competition and hinders the emergence of potentially more capable candidates.
Another disputed criterion is the allocation based on the strength and popularity of a party in specific areas. Parties argue that this is a subjective criterion that leads to disputes and favoritism, as clear metrics for strength and visibility cannot be defined. The BNF, in particular, questions the demands of the new entrants, the BPF and AP, as they lack a traceable track record to support their high expectations.
The unity and cohesion of the UDC are at stake, with the BPF and AP expressing dissatisfaction and considering withdrawing from the negotiations. Therefore, it is crucial for the leaders to expedite their meeting and find a resolution to these disputes.
In the midst of these negotiations, the BNF has already secured 15 constituencies within the UDC coalition. While the negotiations are still ongoing, BNF Chairman Dr. Molotsi revealed that they have traditionally held these constituencies and are expecting to add more to their tally. The constituencies include Gantsi North, Gantsi South, Kgalagadi North, Kgalagadi South, Good Hope – Mmathethe, Kanye North, Kanye South, Lobatse, Molepolole North, Gaborone South, Gaborone North, Gaborone Bonnignton North, Takatokwane, Letlhakeng, and Tlokweng.
The resolution of the contested constituencies will test the ability of the UDC to present a united front in the 2024 National Elections will depend on the decisions made by the three leaders. It is essential for them to demonstrate maturity and astuteness in resolving the constituency allocation deadlock and ensuring the cohesion of the UDC.