Business Writer REARABILWE RAMAPHANE puts his head on the bloc and vows that these executives impressed him in 2017. He adds them to his 2016 list which was spearheaded by Thapelo Tsheole of the Botswana Stock Exchange.
1. ANTHONY MASUNGA
Chief Executive Officer of Botswana Telecommunications Corporation Limited (BTCL) has done great service to the localization theme. BTCL is the country‘s home grown ICT and telecommunication service provider. Masunga picked up the reins from Briton industry expert, Paul Taylor last year after the then wholly government owned Corporation transformed to a limited company and listed on the Botswana Stock Exchange (BSE). When he took over the driving seat on acting basis BTCL shares were poorly performing in the market to an extent that pre-listing naysayers and critics of privatization were saying ‘I told so’ to Hundreds of Batswana who had purchased the BTCL shares.
By the look of things then it was as if BTCL board of directors would go out to scout for an international expert to replace Taylor, however the Board took a bold decision and Anthony Masunga ascended to the helm of Megaleng House as CEO on permanent basis. He presided over the transition of the corporation into a corporate household name. The company rebranded to merge its beMobile & BTC fixed operations into one brand BTCL.
Within the blik of an eye, Masunga’s captainship saw BTCL share price quickly return to glory, bringing back investor confidence. By March this year BTC was the best performing stock on the BSE. Full year financial results as of march 2017 indicate that BTCL registered a massive 164% growth in profits before tax.
The company has created over P241.5 million wealth since listing and has distributed P90.3million in dividends to shareholders by March 2017. Masunga stirred the company to 12 % growth in profit after tax for 6 months trading period ended 30th September. His leadership has introduced a number of changes. The company currently has a market capitalization of almost 2 billion and considerably doing well on the stock market currently trading at around P.160 per thebe compared to its initial offering of P1 per share. BTC has recently introduced customer centered services and engaged international companies on broadband internet and other ICT offerings. Certainly Masunga is doing things right at Megaleng House.
Masunga has BSC in Computer Science from the HYPERLINK "https://www.linkedin.com/edu/mcgill-university-10890?trk=ppro_sprof" McGill University MBA, Business Administration from De Montfort University and an Executive Development Program certificate from University of Stellenbosch Business School .He joined BTC from Mascom wireless as founding general manager of Be Mobile growing through the ranks until stirring the entire BTC Group.
2. LEINA GABARAANE
Renowned Botswana banker and home grown top executive, Leina Gabaraane has been at the helm of Stanbic Bank Botswana for the past 10 years and he is heading for the same post but at a bigger market space at the group’s Zambian operation. Gabaraane will take the reigns as Stanbic Bank Zambia Chief Executive Officer effective 18th January. He has led Stanbic Botswana to glory since his rise to the top post in 2008; in 2011 the bank was named Bank of the year in Botswana.
In 2017 Gabaraane delivered top performance in the corporate and investment banking space to the extent that he was head hunted by International banks including Stanbic Namibia. “Stanbic Bank Botswana continues to drive strong performance in line with the Group’s strategy and has continued to yield growth with each financial year. In addition, Stanbic Bank Botswana is one of the leading performers across the regional footprint, with a remarkably well performing Corporate and Investment Banking (CIB) division,” an expression of confidence from Standard Bank Group Head of CIB, Clarkson.
Defying the odds Gabaraane’s cash spinning drive saw Stanbic Bank Botswana pay one of the highest dividends to its mother company, South African run Standard Bank . The bank won 2017 Best Foreign Exchange Provider in Botswana according to Global Finance Magazine. An accolade they also won in 2013, 2014, 2015 and last year.
Leina Gabaaane holds a B.Comm (UB) and an MBA in International Banking and Finance (University of Birmingham). His career started with the Botswana Development Corporation in 1995 where he joined as Assistant Operations Officer responsible for business development, project evaluation and monitoring.
3. PROFESSOR OTLOGETSWE TOTOLO.
Finally something is evidently happening at the Botswana International University of Science & Technology (BUIST) after challenges during formative and setup years. Former Deputy Vice Chancellor – Academic Affairs at the University of Botswana took the reins and became the first Motswana to be entrusted with leading the historic academic institution. Professor Totolo looks determined to turn BUIST into what it was originally set out to be. BIUST was crafted to be a world class and leading research and development, innovation, science & technology center – Professor Totolo seems to be rhyming well.
BUIST held its first graduation in February this year, where its Vice Chancellor, former president, Dr Festus Gontebanye Mogae donated 1 million pula for best student, with the latter to win between 20 000-50 000 in 50 years. Professor Totolo has put BUIST in the research and development, innovation science and technology space. The University conducts interactive workshops and dialogues with key stakeholders swell as the Palapye community in seeking solutions for environmental and economic problems.
As soon as he took the reins in September 2016, Professor Otlogetswe Totolo revealed ambitious strategy that will include substantial investment on research and development, human resource capability and collaboration with the industry. The strategic plan envisages that the university will be at par with the world’s top universities such as the Massachusetts Institute of Technology (MIT), Oxford University and Harvard University among others by the year 2022 producing 6000 scientists and engineers by then.
Professor Totolo has a Bachelor of Science (BSc) degree and a Post Graduate Diploma in Education (PGDE) from the University of Botswana; Master of Science (MSc) from the University of Reading in the United Kingdom; Doctor of Philosophy (PhD) degree from the University of London (UK).
He is an outstanding and seasoned university administrator, a brilliant scholar and an internationally renowned Soil Scientist. Totolo was also Director of the Center for Scientific Research, Indigenous Knowledge and Innovation (Cesrlki); Dean of Faculty of Science; Head of Environmental Science at the University of Botswana and other numerous positions that he served in. He serves on the BTRI board of directors amongst other key science and research institutions.
4. MATLHOGONOLO LETSOPA MPONANG
Ms Matlhogonolo Letsopa Mponang is the Deputy Executive Director- Corporate Services at Botswana Accountancy College (BAC). She deals with issues of Finance, Human Resources, Facilities and Procurement, Information Communication and Technology, Marketing and Communications, Student Affairs as well as Administration.
Ms Mponang has worked for BTC as Training and Human Resource Development Manager; LEA as a Human Resource Practitioner and then Human Resource Manager; Public Enterprise and Evaluation Privatization Agency (PEEPA) as a Human Resource Manager; and most recently at the Water Utilities Corporation as a Human Resource and Administration Director. She currently sits on the Boards of the Okavango Diamond Company and Associated Fund Administrators.
This year she makes it to this list of 2017 top executives; she played a pivotal role as a member of the Progressive Institute in hosting international speakers, including Kenyan Law professor, PLO Lumumba. At BAC, Botswana’s premier business school, Mponang leads in crafting industry ready graduates. She is an advocate of industry ready graduates. Human resources capacity building is dear to her heart, and has assembled key associates to deliver on this goal.
One can say by profession she is a Human Resource expert considering her previously held positions. Mponang organizes interactive platforms for young scholars bringing in captains of industries to inspire and transform mindsets of prospective young entrepreneurs and Future business leaders. She has a B.Sc in Psychology from the University of Pittsburgh in Pittsburgh, Pennsylvania, USA. She is a seasoned Human Resource Practitioner who has operated in several environments being- government and most notably the public enterprise landscape
5. PIUS MOLEFHE
The Managing Director of Botswana Building Society is probably one of the less talked about but effective executives in Botswana. He has been leading the BBS for several years with impressive performances. However time has arrived to change the business model because BBS needs to catch up with innovative and digital financial service space operations of today. Pius Molefhe is set to make history by leading BBS to become Botswana’s first home grown commercial bank.
The society members gave Molefhe and his team a go ahead in a move that seeks to demutualize BBS and transform it into a limited company held by shares. BBS is the leading service provider of mortgage credit in Botswana. Mr. Molefe has served as Non-Executive Director of Cresta Marakanelo Limited. He previously worked for Barclays Bank of Botswana and Ministry of Finance among others.
At the Ministry of Finance, he was involved in the handling of all development projects. He was further involved in the development of policies regulating the financial services sector. He was also involved in the establishment of the Botswana Stock Exchange and also served as a Member of the Exchange main Board. He holds a Postgraduate Diploma in Economics from the University of Sussex in the United Kingdom.
PROMISING EXECUTIVE: MESHACK TSHEKEDI
He is the Acting CEO of Botswana Investment & Trade Centre (BITC). Tshekedi took over the reins from Letsebe Sejoe last year. Tshekedi successfully launched Botswana’s One Stop Center. One his challenging tasks after taking over was the BITC signature event, an event that brings together multi sectoral international business participants – the Global Expo. His leadership delivered a well-organized Global Expo with over least 500 delegates and 200 exhibitors from Botswana and abroad.
The Expo featured among others, Global Entrepreneur and philanthropist English Billionaire, Sir Richard Branson. Tshekedi’s career commenced in 1997 as a Research Assistant, a position he held for several companies including University of Missouri, Department of Water Affairs and the University of Botswana. He worked for Debswana Diamond Company as Junior Process Engineer in 2002 and was later engaged by Kgalagadi Breweries Limited (KBL), a subsidiary of SABMiller as Strategic Planning Manager and Cash & Carry Manager.
SPECIAL RECOGNITION ESTER KANAIMBA-SENAI
Outgoing Debswana Communications & Corporate Affair Manager retires after 40 years of splendid career. A radio journalist by training, she got her professional credits from the Tanzania School of Journalism back in the early 80s and then went on to the Carleton University School of Journalism in Ottawa, Canada as a Commonwealth Scholar where she completed her Master of Journalism degree.
She started work at Radio Botswana in 1974, attended a basic radio production course at the BBC World Service Training Centre in London in 1978. Kanaimba-Senai rose through the ranks until she became Assistant Director, News and Current Affairs, responsible for the production of news and all current affairs programmes. She was also responsible for starting and launching of RB2 back in 1992 as its inaugural Assistant Director.
Kanaimba-Senai then left the public service and joined the Botswana National Productivity Centre(BNPC at a Promotions Manager, then moved on to the Secretariat of the Southern African Development Community as the Head of Public Relations. She also worked at the Botswana Export Development and Investment Agency (BEDIA) now BITC before joining Debswana in 2008.
At a farewell dinner organized by Debswana last week Debswana Group Managing Director, Balisi Bonyongo described Kanaimba-Senai as a professional perfectionist who mentored her employees. Bonyongo said Debswana would engage Esther Senai’s services whenever need arises.
THE ACCOLDES AWARDED HERE WERE NOT FROM ANY CONDUCTED STUDY OR SCIENTIFIC RESERCH, BUT WAS MADE FROM MEDIA PUBLICATIONS ABOUT THE AFORE MENTIONED CEO’S. OUR VIEWS ARE NOT ABSOLUTE WE DO NOT CLAIM ANY INTELLECTUAL MONOPOLY ON ANALYSIS OR RANKING BUSINESS LEADERS.
The recent study on youth entrepreneurship in Botswana has identified difficult access to funding, land, machinery, lack of entrepreneurial mindset and proper training as serious challenges that continue to hamper youth entrepreneurship development in this country.
The study conducted by Alliance for African Partnership (AAP) in collaboration with University of Botswana has confirmed that despite the government and private sector multi-billion pula entrepreneurship development initiatives, many young people in Botswana continue to fail to grow their businesses into sustainable and successful companies that can help reduce unemployment.
University of Botswana researchers Gaofetege Ganamotse and Rudolph Boy who compiled findings in the 2022 study report for Botswana stated that as part of the study interviews were conducted with successful youth entrepreneurs to understand their critical success factors.
According to the researchers other participants were community leaders, business mentors, Ministry of Trade and Industry, Ministry of Youth, Gender, Sport and Culture, financial institutions, higher education institutions, non-governmental institutions, policymakers, private organizations, and support structures such as legal and technical experts and accountants who were interviewed to understand how they facilitate successful youth entrepreneurship.
The researchers said they found that although Botswana government is perceived as the most supportive to businesses when compared to other governments in sub-Saharan Africa, youth entrepreneurs still face challenges when accessing government funding. “Several finance-related challenges were identified by youth entrepreneurs. Some respondents lamented the lack of access to start-up finance, whereas others mentioned lack of access to infrastructure.”
The researchers stated that in Botswana entrepreneurship is not yet perceived as a field or career of choice by many youth “Participants in the study emphasized that the many youth are more of necessity entrepreneurs, seeing business venturing as a “fall back. Other facilitators mentioned that some youth do not display creativity, mind-blowing innovative solutions, and business management skills. Some youth entrepreneurs like to take shortcuts like selling sweets or muffins.”
According to the researchers, some of the youth do not display perseverance when they are faced with adversity in business. “Young people lack of an entrepreneurial mindset is a common challenge among youth in business. Some have a mindset focused on free services, handouts, and rapid gains. They want overnight success. As such, they give up easily when faced with challenges. On the other hand, some participants argue that they may opt for quick wins because they do not have access to any land, machinery, offices, and vehicles.”
The researchers stated that most youth involved in business ventures do not have the necessary training or skills to maintain a business. “Poor financial management has also been cited as one of the challenges for youth entrepreneurs, such as using profit for personal reasons rather than investing in the business. Also some are not being able to separate their livelihood from their businesses.
Lastly, youth entrepreneurs reported a lack of experience as one of the challenges. For example, the experience of running a business with projections, sticking to the projections, having an accounting system, maintaining a clean and clear billing system, and sound administration system.”
According to the researchers, the participants in the study emphasized that there is fragmentation within the entrepreneurial ecosystem, whereby there is replication of business activities without any differentiation. “There is no integration of the ecosystem players. As such, they end up with duplicate programs targeting the same objectives. The financial sector recommended that there is a need for an intermediary body that will bring all the ecosystem actors together and serve as a “one-stop shop” for entrepreneurs and build mentorship programs that accommodate the business lifecycle from inception to growth.”
Botswana Housing Corporation (BHC) is said to have recorded an operating surplus of P61 Million, an improvement compared to the previous year. The housing, office and other building needs giant met with stakeholders recently to share how the business has been.
The P61 million is a significant increase against the P6 million operating loss realized in the prior year. Profit before income tax also increased significantly from P2 million in the prior year to P72 million which resulted in an overall increase in surplus after tax from P1 million prior year to P64 million for the year under review.
Chief of Finance Officer, Diratsagae Kgamanyane disclosed; “This growth in surplus was driven mainly by rental revenue that increased by 15% from P209 million to P240 million and reduction in expenditure from P272 million to P214 million on the back of cost containment.” He further stated that sales of high margin investment properties also contributed significantly to the growth in surplus as well as impairment reversals on receivables amounting to P25 million.
It is said that the Corporation recorded a total revenue of P702 million, an 8% decrease when compared to the P760 million recorded in the prior year. “Sales revenue which is one of the major revenue streams returned impressive margins, contributing to the overall growth in the gross margin,” added Kgamanyane.
He further stated professional fees revenue line declined significantly by 64% to P5 million from P14 million in the prior year which attributed to suspension of planned projects by their clients due to Covid-19 pandemic. “Facilities Management revenue decreased by P 24 million from P69 million recorded in prior year to P45 million due to reduction in projects,” Kgamanyane said.
The Corporation’s strength is on its investment properties portfolio that stood at P1.4 billion at the end of the reporting period. “The Corporation continues its strategy to diversify revenue streams despite both facilities management income and professional fees being challenged by the prevailing economic conditions that have seen its major clients curtailing spending,” added the CEO.
On the one hand, the Corporation’s Strategic Performance which intended to build 12 300 houses by 2023 has so far managed to build 4 830 houses under their SHHA funding scheme, 1 240 houses for commercial or external use which includes use by government and 1 970 houses to rent to individuals.
BHC Acting CEO Pascaline Sefawe noted that; BHC’s planned projects are said to include building 336 flat units in Gaborone Block 7 at approximately P224 million, 100 units in Maun at approximately P78 million, 13 units in Phakalane at approximately P26 million, 212 units in Kazungula at approximately P160 million, 96 units at approximately P42 million in Francistown and 84 units at approximately P61 million in Letlhakane. Emphasing; “People tend to accuse us of only building houses in Gaborone, so here we are, including other areas in our planned projects.”
Researchers from some government owned regulatory institutions in the financial sector have projected that the banking sector’s profitability could increase, following Bank of Botswana Monetary Policy Committee recent decision to increase monetary policy rate.
In its bid to manage inflation, Bank of Botswana Monetary Policy Committee last month increased monetary policy rate by 0.50 percent from 1.65 percent to 2.15 percent, a development which resulted with commercial banking sector increasing interest rate in lending to household and companies. As a result of BoB adjustment of Monetary Policy Rate, from 1.65 percent to 2.15 percent commercial banks increased prime lending rate from 5.76 percent to 6.26 percent.
Researchers from Bank of Botswana, the Non-Bank Financial Institutions Regulatory Authority, the Financial Intelligence Agency and the Botswana Stock Exchange indicated that due to prospects of high inflation during the second half of 2022, there is a possibility that the Monetary Policy Committee could further increase monetary policy rate in the next meeting in August 25 2022.
Inflation rose from 9.6 percent in April 2022 to 11.9 percent in May 2022, remaining above the Bank of Botswana medium-term objective range of 3 – 6 percent. According to the researchers inflation could increase further and remain high due to factors that include: the potential increase in international commodity prices beyond current forecasts, logistical constraints due to lags in production, the economic and price effects of the ongoing Russia- Ukraine conflict, uncertain COVID-19 profile, domestic risk factors relating to possible regular annual administered price adjustments, short-term unintended consequences of import restrictions resulting with shortages in supplies leading to price increases, as well as second-round effects of the recent increases in administered prices “Furthermore, the likelihood of further increases in domestic fuel prices in response to persistent high international oil prices could add upward pressure to inflation,” said the researchers.
The researchers indicated that Bank of Botswana could be forced to further increase monetary policy rate from the current 2.15 percent if inflation rises persistently. “Should inflation rise persistently this could necessitate an upward adjustment in the policy rate. It is against this background that the interest rate scenario assumes a 1.5 percentage points (moderate scenario) and 2.25 percentage points (severe scenario) upward adjustment in the policy rate,” said the researchers.
The researchers indicated that while any upward adjustment on BoB monetary policy rate and commercial banks prime lending rate result with increase in the cost of borrowing for household and compnies, it increase profitability for the banking sector. “Increases in the policy rate are associated with an overall increase in bank profitability, with resultant increases in the capital adequacy ratio of 0.1 percentage points and 0.2 percentage points for the moderate and severe scenarios, respectively,” said the researchers who added that upward adjustment in monetary policy rate would raise extra capital for the banking sector.
“The increase in profit generally reflects the banking industry’s positive interest rate gap, where interest earning assets exceed interest earning liabilities maturing in the next twelve months. Therefore, an increase of 1.5 percentage points in the policy rate would result in industry gains of P71.7 million (4.1 percent increase), while a 2.25 percentage points increase would lead to a gain of P173.9 million (6.1 percent increase), dominated by large banks,” said the researchers.