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Friday, 19 April 2024

Tourists spent 150% more in 2016


In 2016 alone Botswana’s tourism sector realized 1.9 million visits which generated over 14 billion pula worth of business. This was revealed by Permanent Secretary in the Ministry of Environment, Natural Resources Conservation and Tourism, Jimmy Opelo when presenting the Tourism Satellite Account (TSA) update on Monday in Gaborone.

TSA is a program by the United Nations World Tourism Organization (UNWTO) that develops tourism measurement for further knowledge of the sector monitoring progress, evaluating impact, promoting results-focused management, and highlighting strategic issues for policy objectives.

The programme works towards advancing the methodological frameworks for measuring tourism and expanding its analytical potential, designs practical guidance for their implementation in countries, supports statistical strengthening in countries through capacity building, and compiles and disseminates tourism statistics of countries all over the world. 

The project which normally runs for a full year was first undertaken in Botswana as a pilot exercise in 2006, it primarily seeks to gauge the contribution of the tourism sector and its whole value chain businesses. According to the findings shared at the launch, in 2016 alone, tourists who visited Botswana spent 150 % more that they spent in 2009 (last TSA reference year).

This, according to the data as compiled in the TSA was predominantly due to increased numbers of visitors, prolonged stays and high spending by visitors during travel. The average length of stay by tourists in Botswana increased to 6.75 nights in 2016 from 5.32 nights in 2009.

The Account also continues to reveal that Botswana‘s tourism sector contributed 4.9 % to the economy in the year under review compared to 3.9 % noted in 2009. This are direct analysis, when juxtaposed to indirect contributions in 2016 the sector’s worth to the national economy was estimated at around 7.6 %.The analysis on indirect contribution takes into account  the complimentary industries that support the tourism sector and the whole travel & tours value chain machinery.

The Permanent Secretary underscored that the findings of the Satellite Account reflects that Botswana‘s Tourism Sector was improving year in and year out. “Tourism has been identified as an important sector in the economy; it creates jobs, and generates income for local communities and has direct contributions to government revenues.” He added that the sector was based on personal service and it was therefore employment intensive. “It is a major foreign exchange tax earner. It spreads wealth and builds skills,” said Opelo.

The one year project was developed with the technical support of the World Tourism Organization (UNWTO.)The project was funded by Peace Parks Foundation, the implementing agency of the Kavango Zambezi Trans-Frontier Conservation Area Programme (KAZA), through the German Development Bank. World Tourism Organization officials said on Monday that the Satellite Tourism Account intention was to Implement an improved Inbound Visitor Survey and provide in-depth training to ensure ongoing data collection and analysis.

Botswana‘s tourism sector according to WTTC

Meanwhile, according to another organization,  the World Travel & Tourism Council(WTTC) in its 2017 report Botswana’s Travel & Tourism direct contribution  to  the country ‘s Gross Domestic Product(GDP)  was BWP6,278.9 billion  (USD573.5mn), 3.9% in total.

The total contribution of Travel & Tourism to GDP was BWP17,779.5 billion  (USD1,623.8mn), 10.9% of GDP in 2016, rose  by 6.5% in 2017, and  is expected to rise by 5.5% pa to BWP32,204.9 billion (USD2,941.3mn), 12.2% of GDP in 2027.In 2016 Travel & Tourism directly supported 25,000 jobs  (2.6% of total employment).  This rose by 6.8% in 2017 and the WTTC says it is expected to 4.8% pa to 43,000 jobs (3.8% of total employment) by 2027.

In 2016, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by Visitor exports generated BWP6, 220.0 billion (USD568.1mn), 5.8% of total exports in 2016.  The Travel & Tourism investment in 2016 was BWP3, 712.8 billion, 8.5% of total investment (USD339.1mn). “It rose by 0.8% in 2017, and should rise by 5.0% pa over the next ten years to BWP6, 083.8 billion (USD555.7mn) in 2027, 8.6% of total,” reads the report.

Botswana’s tourism sector is mainly supported by wildlife and wilderness features. The country prides itself in being home to the largest inland delta in Africa and one of the largest and most prestigious in the world, The Okavango Delta which is also listed as UNESCO World Heritage Site.

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LLR transforms from Company to Group reporting

9th April 2024

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.


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Botswana’s Electricity Generation Dips 26.4%

9th April 2024

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.

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MMG acquires Khoemacau in a transaction valued at P23Bn

9th April 2024

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.

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