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BIHL group leadership transformation

Botswana Insurance Holdings Limited (BIHL) Group understands that for an organisation to achieve exceptional performance in a competitive and ever-evolving industry, the journey begins with strong leadership.

Between 2015 and 2016, the Group saw the successful appointments of formidable chief executives across the business including at BIHL, Botswana Life Insurance Limited (BLIL) and Botswana Insurance Fund Management Limited (Bifm), to sustain the Group’s strong market position as a premier financial services operation in Botswana. The developments in the BIHL family leadership has indeed born good fruit, as the Group has yielded modest financial results for the six months ended 30 June 2016.

Major appointments that took place during this financial year to steer the behemoth BIHL Group ship included newly appointed BIHL Group CEO, Mrs. Catherine Lesetedi-Letegele, Bifm CEO Mrs. Neo Bogatsu, and more recently Botswana Life Insurance Limited CEO, Mrs. Bilkiss Moorad. The results report that in the midst of challenging market conditions, experienced by most key business lines, the Group has retained a good position and experienced elements of growth.

 “As a leading Group in the Botswana economy, we continue to maximise our efficiencies by taking advantage of our rich talent, our numbers and leveraging off our strengths to provide value for our customers and stakeholders, as we offer seamless and relevant financial solutions across our subsidiaries. In the midst of a challenging economic environment, which has seen the likes of UK’s unexpected exit from the EU and the underperformance of global equity markets, the Business’ financial position remains strong, with a stable outlook for future. We are exceptionally proud of our management and how they are steering the BIHL family ship, as they execute their respective mandates, while in turn delivering collectively on driving our twin strategy of growth and profitability,“  noted BIHL Group Chair, Mrs. Batsho Dambe-Groth.

Key highlights across the Group are as follows:

·       The Group sustained the new business value at P78.9 million.

·       Consolidated Investment Income, comprising of dividend income and interest income saw a significant increase to P370.5 million, compared to the P341 million attained in the comparative 6 months.

·       The life insurance business achieved a moderate growth in Operating profit of 2 percent to P192 million from P188 million in the first half of the prior year. Recurring premium income grew by an impressive 8 percent from P486 million in June 2015 to P530 million during the first 6 months of 2016.

·       Bifm, which provides asset management services, and has shareholding in a business in Zambia, yielded a steady 2 percent increase year on year in total assets under management (AUM) to P21.1 billion (Bifm P17.6 billion and Zambia P3.5 billion). This came on the back of strong inflows to the Unit Trust business.

The short term insurance business, though has posted subdued financial results with an operating loss of P0.7 million compared to P1.3 million operating profit recorded in the first half of 2015, total net income for general insurance increased to P23.9 million in 2016 from P22.98 million in the first half of 2015. The business had also undertaken a successful restructuring of Legal Guard following the sale of general insurance lines business in August 2014.

Concluded Mrs. Dambe-Groth, “It is worth noting that the Business has had quite a challenging season in the face of higher costs in operations, movements in the global economy including that of Brexit and the volatility of global equity markets. Thanks to our robust leadership and the formidable legacy of those that paved the way before, we have pushed ourselves to work even harder to continuously better our approach to doing business and seizing overlooked opportunities for achieving sustainable growth and profitability. This attitude has indeed carried us through this tougher economic climate, to retain our strong market position as a leading financial services Group.”

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Business

China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Business

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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Business

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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