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Botswana shows steady progress

33% of Botswana businesses surveyed have women in senior management roles (more-than doubling from 16% in 2015 to 33% in 2018), higher than global average of 24% and African average of 30%. 

“Enhancing company performance” is one of the main drivers for Botswana businesses surveyed, to introduce gender equality policies and practices. 68% of Botswana businesses surveyed would like Government to do more to address the issue of gender inequality in business leadership at a legislative level

According to Grant Thornton International Ltd.’s annual Women in Business report, Botswana businesses have taken two steps forward on women in leadership, with the percentage of businesses that have at least one woman on the senior management team increasing from 73% in 2017 to 78% in 2018 (globally 66% in 2017 to 75% in 2018).

The proportion of senior management team that comprises of women has also increased from 31% in 2017 to 33% in 2018. On its own the proportion increase seems small, however fairs better than the global change which saw a decrease of from 25% in 2017 to 24% in 2018. Published to coincide with International Women’s Day 2018, which calls on all to #PressforProgress, the research reveals that introducing policies alone is not enough to drive real progress. A wider culture of inclusion championed from the top is needed to create change.

The progress on the number of businesses with women in senior management has primarily been driven by emerging economies such as Africa (where 89% of businesses have at least one woman in senior management) and Eastern Europe (87%), while Latin America has seen the biggest increase (from 52% to 65%). But there has also been a significant increase in developed regions such as North America (from 69% to 81%) and the European Union (from 64% to 73%). Emerging economies also continue to see the highest proportion of women in senior roles, including Eastern Europe (36%), Latin America (30%) and Africa (30%).

Anjana Suresh, Partner in charge of Corporate Services at Grant Thornton Botswana, comments: “There is compelling evidence of the link between gender diversity in leadership and commercial success. Women are inherently resilient, empathetic, determined and committed. They have an exceptional ability to manage conflict and seamlessly adapt to change. Organisations that embrace gender diversity at senior management level are able to recruit and retain a diverse workforce and customer base.

Engaging female representation at board level can bring unique attributes to the organisation. While it is pleasing to note that the percentage of businesses with representation of women in senior roles has considerably increased, the proportion of women in senior management teams has increased only marginally. Going forward, organisations and business leaders should focus on increasing the number of female leaders at board level. Women themselves should continue to upskill their technical, communication and leadership skills, be confident and ensure that their voice is heard in the boardroom.”

Policy alone is not driving progress

Grant Thornton’s report investigates the role of both business and government policy in bringing about change. The data show gender equality policies are abundant and widespread, with 81% of businesses adopting equal pay for men and women performing the same roles, and 71% implementing non-discrimination policies for recruitment.

Measures that support working parents are also popular among businesses, including paid parental leave (59% globally, 60% in Botswana), flexible hours (57% globally, 54% in Botswana) and part-time working (54% globally, 26% in Botswana). Government is viewed to have a significant role in issues surrounding gender diversity, with 68% of Botswana businesses believing that Government and business need to work collaboratively in addressing the issue of gender inequality in business leadership. Furthermore, 68% of businesses in Botswana would like Government to do more to address the issue of gender inequality in business leadership at a legislative level.

However, there is no clear correlation between which, and how many, policies businesses have in place and the gender diversity of their senior management teams. No single policy seems to drive gender diversity, and the regions in which businesses have most policies in place – Africa, the EU and North America – demonstrate very different levels of gender diversity in business leadership.

Globally and within the African context, companies say they are motivated to introduce gender equality policies primarily to attract and keep employees (65% globally, 62% in Africa, 49% in Botswana) and to live up to organisational values (65% globally, 67% in Africa, 51% in Botswana). In the local context however, “enhancing company performance” leads at 66% (55% globally, 58% in Africa) as the biggest motivation to introduce gender equality policies.

Recruitment and retention are strategic priorities for businesses, and gender equality in leadership has become a core element of company branding. However, globally businesses say the barriers to introducing policies include the complexity of translating good intentions into practice (22%) and stereotypes about gender roles (21%), while in Botswana the leading barriers include stereotypes about gender roles (45%) and the cost of implementation (43%).

Monica Munjanja, Manager in the Audit Assurance team of Grant Thornton Botswana adds: “Achieving gender diversity is important for businesses because it improves the country's overall economic performance by encouraging different ways of thinking and opening up new opportunities for growth. Businesses in Botswana have implemented many gender equality policies, however policies on their own cannot bring about change. What brings about change is acceptance and acknowledgement of the economic benefits of gender diversity at top leadership level, and educating society to overcome stereotypes about gender roles.”

Increasing gender diversity

We have been investigating the progress of women in business around the globe for 14 years, exploring how business leaders think and feel, and outlining practical steps that can create change. This year we present 10 recommendations for business leaders to consider, to facilitate increased gender diversity. The first is a foundational step, then three relate to leadership, three to policy and three to culture.

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Business

Inflation spike building further upwards

27th October 2020
Inflation spike

In the coming months prices will go up and inflation will shoot sharply above the target of 3 percent to 6 percent towards the third quarter of 2021, the Bank of Botswana on the other hand will continue to withhold its knife on the Bank Rate. This is according to a forecast made by Kgori Capital in its recent Market Watch Segment.

Statistics from Statistics Botswana show that the recent 1.8 percent increase in the September inflation, from 1 percent in August, was a reflection of the upward adjustment in public transport fares (Transport (from -6.9 to -3.9 percent) in September 2020, which is estimated to have increased inflation by approximately 0.64 percentage points.

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Plans to erase Edgars, Jet trademark from Botswana malls underway

27th October 2020
Edgars Jet trademark

Local anti-trust body, Competition and Consumer Authority (CCA), this month received back to back acquisition proposals from South African clothing retailers to wipe out their former rivals, Edcon, from Botswana malls.

Last week BusinessPost was in possession of Merger Notice No 23 of 2020 whereby a South African clothing retailer owner, Retailability Proprietary Limited, through Oclin Proprietary Limited, proposed to acquire parts of the Edgars business conducted by Edcon in Botswana (through Edcon Botswana), as a going concern, consisting of certain assets and identified liabilities.

South African government’s Business Rescue Practitioners earlier this year announced that Retailability will buy Edgars, after the latter filed for a business rescue plan in April after it failed to pay suppliers. This move will see Retailability add Edgars to its portfolio consisting of brands such as; Legit, Beaver Canoe and Style.

Retailability landed on Botswana shores 18 years ago with its flamboyant urban fashion Style which had 17 stores. Style, having almost the same target market as Edgars as it offers men’s and ladies’ contemporary and formal fashion, gave the 91 year old legendary clothing retailer a run for its money, and has won the battle as its parent company has taken over Edgars.

Retailability brands are synonymous with Botswana shopping centres and there are currently five (5) Beaver Canoe stores, 10 Style stores and seven (7) Legit stores across this country. The Beaver Canoe stores sell clothing apparel for men and boys only. The Legit stores have a fashion store format which focuses on the retailing of clothing, footwear, accessories, colour cosmetics and cellular products.

Retailability operates in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and Eswatini. Many observers suggest that because of the deal with Retailability to swallow Edcon, most Edgars stores in Botswana will change their name and be branded Style. A sad tale for religious consumers of the Edgars trademark who got used to love their favourite brand for years.

According to CCA’s Merger Notice No 23 of 2020, Retailability is controlled by Clifford Raymond Lines (through a company which functions solely as a holding company of his interests in Retailability) and Metier Investment and Advisory Services Proprietary Limited (“Metier”). Metier is a private equity enterprise with investments in a number of industries spanning from healthcare, hospitality, FMCGs and telecommunications.

Retailability directors are mostly South Africans; Clifford Raymond Lines, Mark Richard Friday and Norman Victor Drieselmann. Only Nasreen Essack, who was appointed February this year, is a Motswana. He comes after Brian Thuto Tsima left on the same date. Retailability 100 percent owns Oclin Proprietary Limited, the company it is acquiring Edgars with, by a capacity of 3000 shares.

The target business, Edgars, offer textiles, cosmetics and cellular products. Edcon has a Motswana director, Charles Mzwandile Vikisi, a South African, Shane Van Niekerk and Zimbabwean Jethro Kamutsi.

“The Target Business comprises of two (2) Edgars franchise brands and private label stores across Botswana. These stores target middle to upper income customers and are home to a range of private label brands such as Free2BU, Charter Club and Stone Harbour, and a wide range of market label brands (such as Levi’s and Guess) for clothing, footwear and cosmetics.

In addition, the Target Business operates iconic Edgars Home and Edgars Beauty stores as store-in-store formats rounding out the department store offering in Botswana,” said CCA.
Foshini also lines up to take Jet Botswana from Edcon.

The Foschini Group (TFG) released a statement confirming its latest intentions to acquire Edcon assets or Jet for a cash purchase consideration of R480 million. This was after the business rescue practitioners offered TFG to buy Jet by that amount.

CCA is currently mulling on a proposed merger by TFG to take over Jet operations in Botswana. Merger Notice No 21 of 2020 from TFG came a few days before the Retailability proposal. In this merger TFG, acting through Foschini Botswana, want to take over “parts” of the Jet business conducted by Edcon through Jet Supermarkets Botswana.

TFG will be willing to add Jet to its portfolio of 30 retail brands that trade in clothing, footwear, jewellery, sportswear, homeware, cell phones, and technology products from value to upper market segments throughout more than 4085 outlets in 32 countries on five continents. TFG will also get Jet’s distribution centre located in Durban and certain stores in Botswana, Lesotho, Namibia and Eswatini. Also part of this fat deal is that the company is looking to also acquire JET Club and all existing JET stock of no less than R800 million.

Johannesburg listed TGF owns Foschini Retail Group which owns the local operations called Foschini Botswana, the acquiring enterprise according to CCA merger notice. “TFG is not controlled by any enterprise/s and for completeness, the three largest shareholders of TFG holding shares greater than 5% as at 27th March 2020 are: Government Employees Pension Fund (16.2%) Public Investment Corporation (13.2%); Old Mutual Limited (6.7%); and Investec Asset Management (6.3%). The remaining issued share capital in TFG is widely held,” said the merger notice.

Only Abdool Rahim Khan is a Motswana in the Foschini Botswana directorship, the rest; Ganeswari Shani Naidoo, Anthony Edward Thunström and Gustav Jansen (alternate director) are South Africans.

According to the CCA merger, the Jet Business is Edcon’s discount department store division, selling clothing, footwear, homeware and some cosmetics as well as cellular products and targets lower-to-middle income consumers throughout Botswana. The Jet Business does not directly or indirectly control any enterprises, says the notice. CCA seeks any stakeholder views for or against the proposed merger, which may be sent within 10 days from date of this publication to the following address.

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BOCRA, associates to provide broadband internet in schools

27th October 2020

Botswana Communications Regulatory Authority BOCRA signed a memorandum of Agreement (MoA) with the Ministries of Transport and Communications (MTC), Basic Education (MoBE) as well as Local Government and Rural Development (MLGRD).

The MoA seeks to continue the collaboration that dates back to 2016 when the three parties first agreed to work together in a project aimed at computerizing and providing broadband Internet to primary schools in remote and underserved areas of Botswana.

The project benefitted 68 primary schools and 9 secondary schools through the construction of Local Area Network (LAN) in each primary school, provision of 5 Mbps dedicated broadband Internet to each Primary School and provision of Wi-Fi enabled tablets, laptops and related peripherals such as printers and copiers.

Further, the project will see the augmentation of computers in 9 Junior Secondary Schools with 30 laptops per identified school and employment of Information Technology (IT) officers at each primary school.

When speaking at the signing ceremony in Gaborone, Chief Executive of BOCRA and Chairperson of Universal Access and Service Fund (UASF) Board of Trustees Martin Mokgware said the project’s ultimate goal is to facilitate pupils in schools and host villages to be able to play a meaningful role in the digital economy.

Mokgware indicated that this necessitates upgrading of existing Telecommunications infrastructure to high capacity broadband that will support delivery of education, accessibility to the quality Internet and usage of ICTs.

The Fund began its inaugural programme by sponsoring the provision of WiFi hotspots in public areas around the country as its first project. Following the successful implementation of public WiFi hotspots, the Fund identified Kgalagadi, Ghanzi and Mabutsane areas for mobile network upgrades, schools computerization and internet provision.

Conscious that the project would not be possible without buy-in and support from MoBE, MTC and MLGRD, the Fund facilitated the signing of the first MoU between the three parties in 2016 for implementation of the project.

BOCRA Chief Executive said the signing of this agreement is aimed at benefitting the Kweneng District, adding that they have already assessed the area and have determined that they will be covering 62 underserved villages and 119 schools, 91 of which are primary schools.

“This is a project for which the partner Ministries need to re-commit for its success. Lessons from the previous schools’ computerization and internet connectivity project require that we increase our involvement and resources dedicated to the project for it to be successful. It is my belief as the project coordinator, that we will not do things the way we did them during the first project, for if we do, then we will not have learnt anything,” he said at the signing ceremony.

The purpose of learning is so that there can be continuous improvement to minimize the length of time and amount of resources utilized, he said expressing confidence that their partners will step up to the plate and ensure they play their part in the implementation of the project and that it will progress smoothly having already tread along a similar path.

UASF’s role lies mainly in funding and project management. According to Mokgware, once the project is completed, the work to integrate ICTs into the classroom begins in earnest. Therefore, he said, the project will not succeed without full cooperation and oversight of partners.

“MoBE will put in place the necessary content and ensure that the curriculum is available to all. MLGRD will provide, among others, the enabling environment by ensuring readiness of the school’s infrastructure and necessary security.”

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