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Gaetsaloe speaks to his 5 year strategy

In a time when parastatals are bleeding jobs and drowning in debt, Botswana Development Corporation (BDC) Chief Executive Officer (CEO), Bashi Gaetsaloe is walking tall. With his company’s whooping 224 million pula plus balance Sheet, he is confident that he is doing something right.

 

On Tuesday, the BDC revealed over 100% growth in their profits for the financial year ended June 2016.  Addressing stakeholders in Gaborone, the corporation’s top brass told attendants that they have doubled profits to over P200 million compared to P110 million recorded in 2015.

 

When breaking down the financial figures BDC Chief Finance Officer, Mbako Mbo noted that the company’s total revenue grew by 24% to P384 million from P310 million in 2015. The company revenues from operations closed the year at P262 million, a +35% growth from the year ended June 2015.

 

“Corporation assets grew by 9 % to P212 million net growths compared to P26 million reductions in total liabilities. An additional P239 million growth was recorded in shareholder funds, suggesting a 14% year-on-year increase,” he said.

 

According to information gathered by BusinesPost as per reports from the stakeholders’ briefing, BDC experienced a 6 % growth for their grouped value, recording a whooping P4.4 billion worth of company assets, with group level shareholders’ funds registering slight 3% growth to P3.2 billion.

 

“June 2016 marked the midpoint of our 5 year strategic plan and all our indicators point to a business that continues on a sustainable growth plan," the CFO highlighted. 

 

Having ascended to the helm of the government investment arm just a short while ago, and taken the driving seat of a company swimming in a pool of debt and liquidating enterprises, Gaetsaloe revealed that the 5 year strategy they implemented about two years back is in good progress.

 

He noted that the BDC commissioned a major review of business dealing with their re-modeling strategy targeted at addressing challenges facing the business which included failing of mega billion pula investments like the Glass Project and liquidation of Talana farms which resulted in auctioning of assets consequently the company recording major losses.

 

“We have been facing challenges like any other business, the first phase of our current 5 year strategy was basically transforming our business and consolidating the kind of outcomes that have led to increased growth from our investment portfolio,” he said.

 

The optimistic MD further explained that the corporation now will focus on investing into new businesses to expand and affirm their portfolio with the aim of diversifying the country’s economy and growth.

 

“We have an extensive pipeline of earmarked investments existing which we are confident will contribute significantly to Botswana’s development agenda, whilst at the same time providing satisfactory financial returns to our main shareholder,” he said.

 

According to BDC, as the economy bleeds jobs everyday they pride themselves in creating 830 new jobs this year and keeping their over 4 700 net workforce base across its portfolio of companies .

 

BDC further revealed a total of P588 million injections has been approved for new projects, of which Gaetsaloe indicated they contributed to diversification of the economy, exports and expanded the private sector; boasting about paying a multi million pula dividend to its shareholder, the Government, something which they noted last happened in 2008.

 

On Monday President Khama pre announced this revelations indicating that BDC‘s recovery endeavor significantly bore fruits. “Madam Speaker I am pleased to report Botswana Development Corporation has recorded profits for 2 years up to June 2016,just over 400 million worth of new investment has been approved with an additional 800 million expected to be approved for both new and expanding businesses in the next coming few months.”

 

Botswana Development Corporation Limited was established in 1970, mandated to be the country's main agency for commercial and industrial development. The Government of Botswana owns 100 % of the issued share capital of the Corporation.

 

BDC offers loans, equity, and provision of commercial, industrial and residential premises. It supports projects that generate sustainable employment for Batswana and add to the skills of the local workforce. Encouraging citizen participation in business ventures.

 

Furthermore, BDC finance the development of viable businesses which supports the corporation investment priorities of energy, infrastructure, innovation and technology as well as agriculture and agro-procession. BDC also indulges in cross border financing of viable projects regionally and internationally to raise funds for local domestic investment and economic growth as well as expanding government revenue.

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Food prices continue to rise, but at a slower rate

28th November 2022

Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.

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Still doing business the old way?

18th November 2022

It’s time to get business done better with MTN Business Botswana’s ICT Solutions.

Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.

More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.

Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.

A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.

Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
MTN’s evolution

For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.

As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.

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BIE to vitalize the Dignity of Engineers

9th November 2022

Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in  which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.

The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.

Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.

“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.

He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.

Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.

“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.

He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.

He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc

“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran

Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.

“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.

Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that  the BIE provides a fertile environment where they can meet, share ideas and grow professionally.

“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.

He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.

“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams

He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .

Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution  said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.

“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.

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