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Kgori Capital chats new path

Kgori Capital has been chattering a difficult path this past couple of weeks, and although the dust has yet to settle, the investment firm is ready to open a new chapter. Kgori Capital has been caught up in a storm following its employees, Bakang Seretse and Botho Leburu’s entanglement in a multimillion pula money laundering case.

At a stakeholders’ meeting on Thursday morning, Kgori Capital distanced itself from both Seretse and Leburu, and the money laundering and any other unethical proceedings thereof.  Kgori’s new management however said the firm would embark on a new chapter all together. Seretse was Managing Director of Kgori Capital prior to his arrest and being charged with a count of money laundering. He has since been replaced by Alphonse Ndzinge.

The company currently manages over P5 billion on behalf of third party clients after losing four, among them the multi-billion pula Botswana Public Officers Pension Fund (BPOPF). BPOPF terminated its 3.5 billion contract with Kgori Capital following Seretse’s money laundering scandal.

The newly appointed Managing Director, Ndzinge revealed that the clients who parted ways with them did so without affording Kgori Capital a chance to absolve the company of any wrong doing. “it is quite unfortunate that we had to go through this as a company, most of these clients that terminated their mandate with us acted out of emotion and were influenced by the media uproar and misinformed public pressure,” he said addressing stakeholders at their CBD offices.  

Ndzinge, who was appointed earlier this week however highlighted that their dumped by the clients hurt their balance sheet significantly.  “Especially the BPOPF mandate, the pension fund was a major client,” he highlighted. Ndzinge underscored that while the loss of some clients was saddening the focus of his company continues to be on delivering excellence for the remaining reputable clients. “We are focused on providing excellent investment outcomes and client services leveraging on depth and breadth of skill and experience to ensure sustainable returns for our investors,” he said.

He reiterated that his company has been purposefully ensuring a healthy client mix to make sure the business was not built around any single client. He added that going forward they will further diversify their mandate management portfolio to ensure sustainability.

Kgori has since cut all ties with Seretse, who tendered his resignation immediately after being granted bail. Kgori Capital reaffirmed that Seretse was no longer under its employ and thus has been removed from the shareholder registry. “Our Shareholder agreement states that shares will only be held by those that are employed by Kgori Capital, we are currently exploring how shares previously held by him will be managed and a process has commenced to pay him the worth of the shares and completely part ways with him,” explained Tshegofatso Tlhong, also an executive member at Kgori Capital.

Tlhong reiterated that the money laundering charges do not in any way reflect on Kgori Capital(Pty) Limited as the company only acted on authorized instructions. “These allegations involve only one client, the Department of Energy, we at Kgori  continue to be a sustainable and stable  firm despite loss of some mandates,” she said.  

The company, which currently employs 12 professionals says it does not anticipate any staff changes going forward “We are a team and we are in this together, our Directors are currently exploring possibilities to broaden shareholding to our staff,” shared Tlhong.

While Ndzinge conceded that the Kgori Capital brand and image has indeed been tarnished to some degree by association, he explained that though a number of inaccuracies were making rounds in public domains, his team has been working hard to set the record straight. “At the same time however we have a long standing reputation for excellent work, transparency and trustworthiness, for our company sustainability we have been conservative in distributing retained earnings over the years and that has allowed us to have a comfortable cushion of reserved and a strong balance sheet to carry us through this slightly difficult time,” he said.

Kgori Capital was established in 2012 by a partnership of local business persons and South African asset Management Company Afena Capital as a Botswana focused investment manager, providing solutions to pension funds, corporate, charities and private personal clients. The company was awarded its first client mandated in 2013.

Kgori Capital management and Staff Trust bought out Afena Capital Group from the company in late 2016 to birth a new 100 % Botswana citizen owned company under the new brand Kgori Capital.  Amid the money laundering, Kgori Capital was awarded a CIU license early this year by regulator NBFIRA. The company says it has since taken a decision to profile and add another lay of KYC (Know Your Clients) for politically exposed clients to avoid any future instances similar to that of the National Petroleum Fund.

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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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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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Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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