The Botswana Stock exchange appears to be on its way to close the month on an upward trajectory as it seeks to reverse the losses it incurred in the first quarter of the year which saw the domestic company index ( DCI) down at -3.8%.
The DCI began the month of April with 10,202 points but by the last Thursday of the month, the DCI was up by 105.34 points to close at 10,307 points, representing a monthly gain of 1% and subduing this year’s losses to -2.8%. DCI Index gained 310.6 points or 3.1 % during the last 12 months from 9,999.21 points in April of 2015.
The DCI’s upward momentum was stimulated by the listing of Botswana Telecommunications Limited (BTCL) whose shares appreciated by 30% to P1.30 on the first week pushing the index to appreciate by 0.62%.
The momentum was carried forward on the second week with the benchmark index slightly increasing by o.09% after BTCL shares further appreciated by 5% before settling down again to P1.30 same week, other gains were realised through First National Bank Botswana (0.3%), Letshego (0.4%), Engen (0.6%) and Cresta(0.9%). The downside for that week came through a sharp decline of 2.8% from Furnmart as investors priced in the information that the furniture store will report a loss. Letlole La Rona, a property listed stock also shed of 0.5% from its share price.
For the 3rd week, it was gains led by Letshego(1.6%), Choppies(0.2%), Letlole La rona(0.5%) and Primetime(0.3), which helped nudge the DCI up by 0.10% despite the downside pressures from G4s and BTCL shedding off 0.3% and 3.8% respectively.
In the final week of the month, it was Letshego again rallying the troops as it gained 0.38% followed by Botswana Insurance Holdings as it appreciated by 0.06%. However, the DCI was weighed heavily by the plummeting BTCL shares which lost a whopping 10%, followed by FNBB (0.56%) to trade at its lowest price for the year.
It was been an interesting month for the BSE observers as they watched a villain becoming a hero and a hero becoming a villain. While the DCI was down in the first quarter, many put the blame at Letshego’s door as the company had lost as much as 13.8% in the past 3 months. During that period, Letshego’s shares were the most traded, bringing in P339.1 million. The pan-African financial services provider has since turned a new leaf, with its share price rising from P2.51 to P2.66, delivering a return of 6% just under one month to reduce its losses this year to 8%. The company’s subsidiary in Mozambique was recently issued the official principle issuer license by MasterCard.
In another interesting development, the BSE will have a new entrant on its main domestic counter on the 4th of May. The FAR Property Company has completed its IPO results this week which also followed the trend of oversubscription. The public offer was made up of 20 million units available for members of the public while the other 20 million was put to private placement, both at the offer price of P2.57.
The 40 million linked units that were on offer are expected to raise about P100 million. The founders have also entered in agreement to dispose of 40 million linked units to selected institutional investors. In total, the company will list 380 million units on the BSE. The 380 million units comprises of 79% held by the founders, 20.7% held by the public while the rest will be held by associates and directors of the company as well as associates of the founder.
BSE HALTS TRADING OF BTCL SHARES
On the other hand, BTCL which became a hero in the beginning of April when it listed to much fanfare and ushering in a record breaking number of citizen investors to the stock market has been left fumbling. The BTCL became a must have stock for investors as its IPO was oversubscribed, and its debut was in a spectacular fashion as it shot up by 30% of first day of trading.
By second week of trading, its share price was now up by 35% but soon after things became to unravel. From its high debut price of P1.30, the stock has been pummelled to P1.12, a 13.8% decline. On Thursday, the BSE issued a halt in trading of BTCL shares. “The BSE has decided to halt trading on the shares of BTCL with immediate effect. The trading halt decision comes to allow for the dissemination of information through BSE regarding changes to BTCL Employee Share Trust.
The trading halt shall be lifted once the company publishes details of the changes to the public,” according to the issued note.
Botswana health officials have confirmed the new COVOD-19 variant, which was first found in India. The Ministry of Health and Wellness has through a press statement informed members of the public that a new COVID-19 variant (B.1.617), first discovered in India. The Indian variant was confirmed in Botswana on 13 May 2021.
According to Christopher Nyanga, spokesperson at the Ministry, this followed a case investigation within Greater Gaborone, involving people of Indian origin who arrived in the country on the 24th April 2021.
“As at 16 May 2021, the B. 1. 617 variant was confirmed in two (2) people. The clients are currently receiving medical care and remain stable with no life-threatening symptoms. The two (2) cases were part of 383 people (both Batswana and some Indian nationals) who were tested for COVID-19. From this number, 43 tested positive, with two (2) showing the B. 1. 617 variant as already alluded to. Contact tracing has been expanded in line with COVID-19 protocols. All contacts and confirmed cases have been evacuated to facility based quarantine and isolation respectively, for close monitoring,” Nyanga narrated.
The World Health Organization recently announced that the Indian Covid-19 variant was a global concern, with some data suggesting the variant has “increased transmissibility” compared with other strains.
Meanwhile in the wake of Botswana’s confirmation of the Indian variant, Nyanga reminded the public of the government intervention to control the introduction of new variants of public health concern into the country. He stated that all those who have travelled or transited through areas of high risk as previously communicated on 3rd May 2021 upon return shall immediately quarantine in a central area to be identified by the Ministry of Health and Wellness for a period not exceeding ten (10) days; Repeat Polymerase Chain Reaction (PCR) test after seven (7) days of quarantine and be discharged as per the outcome of the results.
He said the requirements are complementary to the mandatory requirements of producing on arrival a negative PCR test not older than 72hrs from the time the sample was collected
“The public is advised to remain vigilant and minimize the spread of COVID-19 by following the already outlined preventative measures such as washing of hands with soap or use of a hand sanitizer, wearing of face masks, avoiding crowded places/social distancing and avoiding non-essential movement,” Nyanga said.
The India variant – officially called B.1.617.2 – is one of four mutated versions of coronavirus which have been designated as being “of concern” by transitional public health bodies, with others first being identified in Kent, South Africa and Brazil.
The lawyers representing former President Lt Gen Ian Khama, Ramalepa Attorneys have come forth dismissing a response letter penned down by Botswana Democratic Party (BDP) activist MacDonald Peloetletse after he was slapped with a P1.5 million lawsuit for defamation of their client.
Tebogo Tladi, an attorney at Ramalepa, said last week Thursday Peloetletse took to social media to publish a substantively false, wrongful and unlawful statement about Khama. MacDonald Peloetletse’s commentary which was posted on Gabz FM News page reads, “I am a former soldier. Everything former President SKI Khama said here is a LIE. In fact, soldiers suffered more under Khama than under his predecessors.
He actually stole money that the UN had paid to the soldiers who went for the operations and paid them less than a quarter of what was actually due to them. “Unhappy soldiers took the BDF to court and won, the BDF is still struggling to pay the debts! Khama can fool some people, but not all the people and not all the time.
“In fact many soldiers, serving, retired and those that resigned and were in the operations during Khama’s time get even more annoyed to such disrespectful statements by Ian Khama.” Khama’s lawyer says the impugned statement was published with the intention to injure his client (Khama) in his personality rights, good name and dignity, further indicating that the statement has damaged his good reputation.
“We have therefore been instructed by Client to demand, as we hereby do, that you publish on the same forum a retraction and a full and unconditional apology to Client within three days of receipt of this letter- and that you deliver such apology in a formal letter to the Office of the Former President, Dr Khama. In the event that you have not compiled with this demand by close of business on Monday 10th May 2021, our Client will assume that you have refused to comply with this demand.”
To top it all off, Khama demands that Peloetletse pay him P1.5 million in damages for defamation. “Furthermore, we hold instructions to demand as we hereby do, that you pay our Client damages for defamation in the sum of P1, 500,000.00 within seven days of receipt of this letter.” In the event that Peloetletse fails to pay the amount of damages demanded by Khama, Tladi says they will institute legal proceedings for the recovery of the aforesaid damages.
In his response letter addressed to Ramalepa Attorneys, Peloetletse said that he requests enlightenment and clarification that he be provided with proof that the allegations and comments which they attribute to him were indeed authored by him and that the platform which the comments were placed was not hacked.
“Please also advise if whether your clients has been endowed with a “special particular privilege status” that restricts the citizens of this country from commenting or responding to public statements made by your client in the course of political discourse especially when made on public forum and relate to matters of general public concern. (I trust that your brilliant legal mind is well informed with respect to the jurisprudence in such matters)”.
Peloetletse also said he would like to share with the attorneys a video which was posted on a public forum. “Please listen carefully to the conversations and discussion herein and advice if possibly such discussions form a reasonable basis for a justifiably rebuttal by any Motswana Citizen to the public pronouncements and defamatory statements made by your client about our government (bearing in mind of course a citizens constitutional right to freedom of speech and freedom of expression).’’
Consulted for further comment on the matter on Thursday after receiving Peloetletse’s response, Khama’s attorney Tebogo Tladi said the letter doesn’t hold any water. “The only way out for him is to prove the truth of the allegations on his comment or deny publication. He does not answer substantively to the defamation and does not respond to the demand of an apology or payment of damages.
So his letter really contains largely matters irrelevant to the substance of the letter of demand. His response in fact presents no legally cognizable defence at all- it would appear he responded without the benefit of legal advice, which would not be prudent for such an important case. So we will proceed to issue summons and wait to see what defences he will plead in court.’’
Botswana and Zambia this week celebrated the opening of a multi-million Dollar infrastructural project, the Kazungula Bridge, projected to contribute around P100 million annually for Botswana. This project comes after the signing of the 2012 Agreement between the two countries to construct a bridge that would ease movement of goods.
President Mokgweetsi Masisi said the Kazungula Bridge will open avenues for improved trade, job creation and economic diversification in both countries. Further, the Bridge will significantly accelerate Southern African Development Committee (SADC) regional integration agenda which Botswana and Zambia are vigorously pursuing.
“By growing our strategic partnerships through this project, we have improved the development and competitiveness of our economies to attract more private sector investment, thereby, supporting our efforts to create employment, especially for the burgeoning youth,” Masisi said at the opening ceremony in Kazungula on Monday.
The Kazungula Bridge comprises a road and rail bridge over the Zambezi River, directly linking Botswana and Zambia. It has One-Stop-Border Post facilities on both sides, which will enhance the operational efficiency at entry points, replicated on both sides of the boarder.
The Bridge was originally conceived as a critical link in the African North-South Corridor under the African Union’s New Partnership (NEPAD) for Africa’s Development programme. It has since evolved to encompass a multimodal transport plan under the Programme for Infrastructure Development in Africa (PIDA).
The PIDA programme, which encompasses liberalisation of air travel, rail links, road, water and all other modes of transport has only one objective: to unite the States of Africa in order to foster trade on the continent
“Connectivity of our nations will in no small measure, promote people to people interactions and uplifts their standard of living. I am pleased to state that the completion of this project is a clear demonstration of our commitment to PIDA.”
The 260 million US Dollar Kazungula Bridge was commissioned by Zambian President, Edgar Lungu and President Masisi. President Lungu said the bridge was a monumental effort linking Zambia internally and externally to ease the movement of goods and services.
“I have held talks with my counterpart in Botswana that this project must run daily up to 22 hours as soon as possible and you the technocrats must not play ping-pong with us after making these public procurements,” Lungu said at the official opening in Kazungula.
For his part, DRC President Felix Tshisekedi said the project was tandem with the Africa Union (AU) goals and priority areas for Agenda 2063 which called for a prosperous Africa, based on inclusive growth and sustainable development.
The new Kazungula Bridge replaces the Kazungula Ferry, a pontoon ferry across the 400-metre-wide Zambezi River between Botswana and Zambia. It was one of the largest ferries in South-Central Africa, having a capacity of 70 tonnes.
In 2003 the ferry was the site of a disaster when a severely overloaded Zambian truck capsized one of the pontoons and 18 people drowned. The accident was blamed on the lack of weighbridges in Zambia to check the weight of trucks.
In August 2007, the governments of Zambia and Botswana announced a deal to construct a bridge at the site to replace the ferry. The existence of a short boundary of about 150 meters between Zambia and Botswana was apparently agreed to during various meetings involving Heads of State and officials from all four States in the 2006-2010 period.
The route for this new bridge crosses the boundary without entering Zimbabwe and Namibia. Zimbabwe already has a bridge into Zambia at Victoria Falls, 70KM from Kazungula. Namibia on the other hand has a bridge into Zambia at Katima Mulilo about 150KM upriver.