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Old mutual Botswana enters lucrative life insurance market

Old Mutual Botswana, which is owned by Old Mutual Group, last week launched their new life insurance arm geared at shaking up the Botswana life insurance space.


At a glamorous   and classy event with top notch corporate elegance, the 172 year old company; Old Mutual, promised to take the game to the already established and dominant insurance companies in the country. When officially launching the segment bearing the nomenclature “Old Mutual Life Botswana Pty (LTD),” Minister of Youth Empowerment, Sport and Cultural Development; Thapelo Olopeng, told an audience of Botswana financial sector and corporate leaders that Old Mutual’s entrance into the life insurance business will improve service delivery and customer satisfaction.


“On behalf of Government of Botswana and indeed myself, let me take this position to thank Old Mutual for investing in Botswana. Your investment will not only grow the life insurance industry in Botswana but will grow Botswana’s broader economy as well as bring diversity and employment opportunities,” he said.


According to Olopeng, the move will bring about competitiveness in innovative customer tailored products and hence Batswana will benefit more: “You will also provide financial literacy to Batswana hence inclusive.” Chief Executive Officer of Old Mutual Africa, Jonas Mushosho, observed that their vision was to become their customers’ most trusted partner In financial investment space.


“We will help our customers achieve their lifelong financial goals, then they can bring the money to us and when they bring their money to us, we will ensure they grow their wealth through insurance, financial security and monetary investment “he pointed out. Mushosho who captains a ship of multibillion dollar financial investment group, with footprints across Africa, revealed that Old Mutual Life Botswana will offer inclusive life insurance to informal sector and underprivileged members of the society.


”We are looking at penetrating the market so we must bring something new, like we did in Zimbabwe where we included the informal sector in our products; same here, we are coming with fresh innovative customer tailored services and products which are inclusive to all sectors of the society, to help them realize their financial investment dream” he explained adding that a two million market space was not a problem to them as they bring market demanded life insurance services.


Old Mutual Life Insurance Botswana enters an industry with already well established companies like Botswana Life under the Botswana Insurance Holdings Limited, Regent Life Insurance which recently merged with Hollard life to form one formidable force and the vibrant new kid in the block Bona Life under the captainship of Insurance and financial corporate services guru, Regina Sikalesele Vaka.


However, being the newest kid in the life insurance block, Old Mutual Life Botswana says the market is not yet saturated and  because they are introducing affordable and inclusive life coverage , funeral services and unique financial investment  products, Batswana will come to invest with them.  Old Mutual Botswana Managing Director, Jack Bekker, added onto the Group CEO‘s words, observing that the company will bring more value to Botswana life insurance space.


“We are confident that with our experience and integrated expertise from other lucrative market, being our footprint and portfolio across Africa and the world, we will shake up the Botswana life insurance industry to create wealth and unleash lucrative income generating investments,” he said.


He further noted that, Old Mutual Botswana will support the life insurance segment with expertise to come up with customer satisfactory innovative products that are up to international standards: “We will bring maximum benefit to our customers.” The man in charge of breaking the glass ceiling and penetrating the seemingly congested life insurance market under the Old Mutual brand, Thebe Modikwa, noted that his company will transform Botswana’s insurance industry to be more than just funeral packages and sending off loved ones, but a long time life investment even for the ones remaining behind and he said, “life insurance is a tool for preserving wealth and giving the next generation a better start in life than the previous one.”


Old Mutual Botswana which houses Old Mutual Life Insurance Botswana is a member of the Old Mutual Group offering wide range of short-term insurance services in Botswana with branches in Gaborone and Francistown. The insurance company offers insurance services to personal, commercial and corporate clients. Its parent company, the Old Mutual Group is one of the largest insurance companies in the world with a turnover of over $3 billion from their Africa portfolio alone. They provide investment, savings, insurance and banking services in Africa, Europe, America and Asia to over 18.9 million customers and has approximately 64,000 employees across the world.


Established in Cape Town, in 1845, as South Africa’s first mutual life insurance company, the almost two century old investment group owns controlling stakes in Old Mutual Emerging Markets (OMEM), Nedbank, Old Mutual Wealth (OMW) and Old Mutual Asset Management (OMAM and have been listed in London and Johannesburg stock exchange markets among others, since 1999.)

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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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