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Barclays sets the tone

Barclays Bank of Botswana has confirmed that its consolidated results for the half year period ended 30 June 2016 will be significantly higher than those reported for the half year period ended 30 June 2015. The anticipated higher profit is  rare news in the banking sector which is riddled with dwindling profits amid tough trading conditions.

In a market characterised by anaemic economic growth, low interest rates, stagnated wages and tight competition, commercial banks in Botswana have been reporting lower profits as they grapple with a new reality. The announcement by Barclays that they are expecting a higher profit than the previous period has become an exception to the rule. Just recently the biggest bank in Botswana by value, First National Bank Botswana, declared its lowest profit in two years. Standard Chartered Bank Botswana, the oldest bank in the country, also added to the woes plaguing the banking sector when it reported half year results which were lower than the previous corresponding period. Barclays Bank Botswana has not been spared the rout in the market trend as its profit declined by 22 percent in 2015.

However, there seems to be a silver lining for Barclays as the bank continues to push against the norm. The anticipated half year results which are expected to be higher are likely to buoy the bank and set the mood for the second half in which the bank tends to deliver spectacular results.  In 2015 the bank had a strong second half performance where they doubled their first half financial performance, achieving profit before tax of P222 million in comparison to P110 million in the first half of 2015. While the improved first half results and cessation of the moratorium on banking charges and fees might point to improved profits, the central bank has recently cut the bank rate by 50 basis points to 5.5%.When Bank of Botswana of slashed the bank rate by a cumulative 150 basis points in 2015, Barclays Bank lost more than P100 million.  It will be interesting to see if Barclays’ second half results will go against the grain and deliver yet another spectacular results considering that the bank’s revenue in the second half of 2015 were spurred by a 2% increase in net interest income.

The bank led by Reinette van der Merwe who joined it in 2013 after Barclays Africa Group Limited purchased the majority of  Barclays PLC operations in Africa. Barclays Bank of Botswana was one of those operations. In 2014 the banking group formulated a 5-year strategy to build a leading bank in Africa. Chiefly amongst those strategies was to be in the top 3 by revenue in any market they operated in, and in Botswana, the bank is number two in terms of revenue. Barclays Bank of Botswana has been chartering its own territory in the local landscape and escaping the shadows of the domineering FNBB as an innovative bank. Barclays Botswana has of recent engaged in a series of products and services intended to make baking seamless hence convenient for the end consumer. The bank introduced the first of its kind cash withdrawal that allows its client to withdraw a maximum of P1500 at cash tills in participating retail stores, then it followed up with an expedited account opening that takes 20 minutes, calling it the ignition account and even promised to waiver three months of banking fees for three months if they fail to open the account in less than 20 minutes. The ignition account is for students. The bank then took it a notch up when they improved on the ATM cash deposits by allowing non-Barclays clients to deposit money using their ATMs. The bank has recently introduced the first of its kind in the local markets when they launched a mobile payment system dubbed mPOS (Mobile point of sale) which provides convenience through its portability hence allowing payment solutions during transactions anywhere as long as there is a cellular network range. The improved digital channels fit in with the overall strategy of the bank to make banking easier and convenient.

“Our Customers and Clients are at the centre of everything we do. We committed a significant amount of our costs to technological and digital investments, making it easy for our customers to do business with us,” Reinette van der Merwe said in the bank’s 2015 annual report.

Other than launching its own products, the bank has also been involved in a raft of multi-million deals. When Sefalana, a leading retailer through their brand stores Sefcash and Shoppers, launched an online shopping platform, they turned to Barclays Bank to ensure safety during online transactions. Recently when
the Citizen Entrepreneurial Development Agency (CEDA) launched a P20 million loan product targeted at small enterprises and aimed at a group with a minimum of five people and maximum of fifteen people, they announced that the facility will warrant a savings avenue which should be 10% of the total loan and shall be in custody of the bank agreed by upon by CEDA and the group. So far CEDA has entered into an agreement with Barclays Bank of Botswana and Botswana Savings Bank to facilitate such agreement.   The bank was also party to a multi-billion deal when the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, signed the $125 million loan guaranty with Barclays Bank of Botswana, together with Lazare Kaplan International (LKI) acting through its subsidiary Botswana Finance LLC in a deal which will help Botswana develop its diamond industry in a sustainable manner that will promote local job creation and diversified economic growth. Barclays Bank of Botswana is the first lender under the broader $250 million loan guaranty program, and additional lenders may join the program in the future.

Barclays Bank of Botswana has also defied the odds in the stock market as it managed to deliver positive year to date returns on its share price. The bank’s efforts have not gone unnoticed in the Botswana Stock Exchange (BSE) as the share price has appreciated by 6.9% in the past 8 months to trade at P4.80. The share performance of Barclays Botswana is a stark contrast to other listed banks that have seen their share prices plummet in value, with FNBB losing 20% and Standard Chartered Bank in its steepest loss in years at 30%.

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Business

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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Business

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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