Transportation sectors register growth
Statistics Botswana has released a summary of the latest Transport and Infrastructure Statistics for the third quarter of 2016(Q3 2016) that shows growth in both transportation sectors.
The brief covers four sections of the transportation industry. In the air transport section there are aircraft and air passenger movements, while the section on Motor Vehicles Registrations contains motor vehicle first registrations and license renewals. Railway Transport section highlights statistics on quantity of goods carried by rail and revenue generated from the conveyance of those goods. Water transport shows movements of vehicles and passengers who use the Pontoon to cross the Zambezi River to and from Zambia, DRC and Angola.
The data shows that Q3 2016 experienced an increase in air passenger movements. It recorded 215,688 passenger movements, an increase of 11.5 percent from 193,457 passenger movements recorded in Q2 2016. Compared to the same quarter of the previous year, Q3 2015, an increase of 4.5 percent was recorded.
The bulk of passenger movements (56.5 percent) were international while the rest (43.5 percent) were domestic. International passenger movements increased by 11.9 percent when compared to the previous quarter while domestic movements increased by 10.9 percent. On a yearly comparison, international movements increased by 3.4 percent while domestic movements increased by 6.1 percent.
Maun continued its reputation as the busiest airport in the country with 58.3 percent of total aircraft movements. Maun is a tourist area, so most of the aircraft movements that occur in the area are non-scheduled (92.9 percent). Gaborone was the second after Maun with the highest number of aircraft movements registered in Q3 2016.
It recorded 19.9 percent of total aircraft movements in the quarter under review. Selibe Phikwe recorded the least number of aircraft movements contributing 0.1 percent. Selibe Phikwe received the least number of aircraft movements because most of the aircraft movements going there are private (79.9 percent), non-scheduled aircraft movements contribute only 20.1 percent, and there are no scheduled aircraft movements.
Out of the five airports in Q3 2016, Gaborone airport handled most of the international traffic with 59.6 percent of the total. Maun handled mostly domestic traffic, accounting for 91.7 percent of total traffic in Maun airport.
The statistics brief indicates that a total of 35,556 vehicles have been registered for the first time in 2016 and Q3 has the highest number (35.5 percent) of registered vehicles. Quarter 1 registered 29.4 percent, while Q2 and Q3 registered 35.0 percent and 35.5 percent respectively. Compared to the previous quarter, there was an increase of 1.3 percent from 12,471 vehicles in Q2 2016 to 12,634 vehicles in Q3 2016. When compared to the same quarter of the previous year, this was an increase of 0.7 percent.
A total of 368,046 first registrations have been recorded since 2007 to date (Q3 2016), 69.2 percent of the vehicles were passenger cars and the least acquired type of vehicle was Motor Cycle which contributed 0.9 percent of the total first registrations
Most of the first registrations done in Q3 2016 were second hand (used) vehicles, constituting 80.0 percent and 19.9 percent were brand new, while 0.1 percent were rebuilt. Of the used vehicles, 89.1 percent were imported from Japan. Vehicles imported from Japan made 72.2 percent of the total first registrations.
Vehicles imported from Japan were followed by those imported from Singapore at 4.4 percent and those from South Africa at 3.9 percent. The majority of the brand new vehicles were from South Africa, which was 81.3 percent of the total brand new vehicles and vehicles bought in Botswana followed with 10.9 percent.
With its congested roads, Gaborone contributed 40.8 percent to the total number of first registrations recorded in Q3 2016. Moreover, the number of first registrations in Gaborone in the third quarter increased by 3.9 percent from 4,960 vehicles registered for the first time in Q2 2016.
Gaborone registration station was followed by Mogoditshane which recorded 29.1 percent of first registrations. Although Mogoditshane recorded 29.1 percent of first registrations, this was a decrease of 7.9 percent when compared to Q2 2016. Gaborone and Francistown among others both recorded an increase in first registrations, they recorded increases of 3.9 percent and 2.7 percent respectively.
Indeed Botswana is a Toyota country, this is after the car brand recorded the highest number of first registrations (43.6 percent), followed by Honda with 11.0 percent registered this quarter, Q3 2016. Massey Ferguson was the favorite make for tractors, it constituted 38.3 percent of the total registered tractors. Home-made vehicles contributed 1.7 percent of the total first registrations, contributing 39.7 percent of the total registered trailers.
During the quarter under review, a total of 113,150 licenses were renewed and 60.6 percent of these were passenger cars. Vans contributed 22.2 percent of the total renewals registered this quarter. Motor cycles contributed the least number of renewals with only 0.3 percent. On a year-to-year comparison, renewals increased by 4.4 percent from 108,391.
Not surprisingly, cities and towns had the highest number of renewals with 54.4 percent of the total renewals recorded during this quarter. Gaborone had the highest number of renewals contributing 65.3 percent of the renewals done in Cities and Towns which is 35.5 percent of the total renewals. Francistown came in second with 16.6 percent.
The report indicates that rail freight transported 470,466 net tonnes during the quarter under review. This was an increase of 5.9 percent when compared to the previous quarter, Q2 2016. When compared to the same quarter of the previous year, Q3 2015, this was a decrease of 15.4 percent.
A total revenue of P85.9 million was generated during quarter Q3 2016, registering an 11.5 percent increase in revenue compared to Q2 2016. Compared to the same quarter of the previous year, Q3 2015, a decrease of 11.1 percent was recorded. The month of August generated the bulk of revenue in Q3 2016, contributing 36.1 percent of the total revenue. Even though Revenue has been increasing from one year to another with the exception of the year 2007, revenue from Imports, Exports, Local Traffic and Transit Traffic fluctuated over the years with Transit Traffic recording the lowest Revenue each time.
The passenger trained that was re-introduced in 2016 has been steadily racking up numbers particularly during the busy holiday periods. In the third quarter of 2016, the passenger train carried 41,586 compared to 26,031 carried in Q2, 2016, registering an increase of 59.8 percent. The train carried more passengers in July registering 34.5 percent. The month of August recorded the least number of passengers transported with 27.3 percent.
Business
LLR transforms from Company to Group reporting
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.
Business
Botswana’s Electricity Generation Dips 26.4%
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.
Business
MMG acquires Khoemacau in a transaction valued at P23Bn
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.