ESP has rolled out P4 billion to date
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The three year Botswana government Economic Stimulus Programme (ESP) has started in earnest, the ESP Coordinator from the Office of the President; Goitsemang Morekisi told a seminar room full of Small, Micro and Medium Enterprise (SMME) owners in Gaborone on Thursday. Morekisi was facilitating a seminar to unpack the famed programme for SMMEs at the Local Enterprise Authority (LEA) Pitso and Seminar.
Among the major highlights of the programme to date, Morekisi said most of the projects that are locked in for the programme have begun. “Land servicing projects have started. Contractors are on site for classrooms and teachers’ quarters backlog eradication projects. Tenders have been awarded for roads and the road that links Phakalane and Gaborone has been launched. All the other roads slated under the programme are at design phase,” she explained.
The ESP was formulated after the country’s pace of economic activity slowed down in 2015 owing to a weakened global demand for diamonds. “The decline in mining receipts, coupled with a decline in revenues from the Southern African Customs Union (SACU), has led to a fiscal deficit of about 1.4 percent of GDP and a lower external current account surplus,” a team from the International Monetary Fund (IMF) visiting Botswana in December 2015 observed. The programme targets the tourism, agriculture and construction sectors which are touted to have a domino effect on all the other sectors of the economy. The programme was devised to stimulate economic activity, diversify the economy and accelerate job creation.
According to Morekisi, various government revenue inflows are used to finance the programme. Permanent Secretary in the Ministry of Finance, Solomon Sekwakwa had explained to this reporter soon after the ESP was launched in October 2015 that the programme would be funded through options which give the most value to government. “It could be treasury bills, bonds, external borrowing, or raising taxes,” he had suggested. Moatlhodi Sebabole, an economic analyst, had at the time corroborated Sekwakwa that there were many funding options available to government.
“Given our low debt to GDP ratio, we still have room to borrow. At 17 percent against the maximum debt threshold we have set ourselves of 40 percent, we can still borrow, either domestically or externally. Our friends in the SADC have their maximum debt to GDP ratio threshold hold of 60 percent,” he had explained. Sebabole had further suggested that given the low interest environment, government could issue bonds to finance the stimulus package. “They could re-issue one of the bonds, worth P1.6 billion, that’s maturing soon,” he had quipped.
This reporter had asked Sebabole if the slated sectors of the ESP could indeed sustain long term economic development and he was matter of fact in his response: “For the stimulus program to churn sustainable growth, it should be government facilitated, private sector led, export orientated, and it should create jobs,” he had said.
According to the Morekisi, close to P4 billion has already been allocated for the projects under the ESP with P1.4 billion released at the program inception, and P2.4 billion budgeted in the 2016/17 government budget. However, the ESP Coordinator could not readily say what the job creation target for the programme was. “We have target figures for ancillary jobs, the immediate ones that will be created during construction. GICO [Government Implementation and Coordination Office] and Statistics Botswana are working to establish baseline data for later evaluation,” she responded to a question from this reporter.
Quizzed on how they are tapping into massive financial resources under the care of pension funds, whose fund managers have often decried lack on investible projects in Botswana, Morekisi said the idea had crossed their mind. She said they as government were open to proposals from investors, both local and foreign, for partnerships using the Public Private Partnerships model. “Then the private sector can tap into those financial resources, not us as government. We have other ways of raising money, but we want the private sector to lead the way,” she said.
Botswana government has a weak project management capacity as demonstrated by many projects that were delivered late, with huge cost overruns and in some instances to poor quality standards. Quizzed how government was delivering an accelerated infrastructure development programme while it has been failing in recent times, Morekisi responded that government organs with a mandate to supervise project implementation like the Public Procurement and Asset Disposal Board (PPADB) and Department of Buildings and Engineering Services (DBES) were capacitated to deliver.
The ESP Coordinator encouraged SMME owners not to judge the programme, but rather find out how they can make it work. She further challenged the private sector to deliver, apportioning some of the blame of failed projects on them.
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BTC launches the 3rd Francistown Marathon 2024 and handover proceeds to the 2nd Francistown Marathon beneficiaries
Botswana Telecommunications Corporation Limited (BTC) has announced that its 3rd Francistown Marathon will be held on Saturday 20th April 2024 at Obed Itani Chilume Stadium in Francistown. The BTC Francistown Marathon is officially recognised by World Athletics and a Comrades Marathon Qualifier will offer race categories ranging from 42.2km, 21.1 km, 10km, 5km fun run, 5km peace run for children and has introduced a 5km and 10km categories for wheelchairs athletics.
BTC also used this opportunity to announce beneficiaries who received donations from proceeds made from the 2nd BTC Francistown Marathon that was held on April 23rd 203. BTC donated a play area, plastic chairs and wooden tables for pupils worth a total of thirty eight thousand, one hundred and three pula, fifty thebe each (P38, 103.50) to Monarch Primary School, Tatitown Primary School, Mahube Primary School and Gulubane Primary School. Ditladi and Boikhutso clinics each received a donation of benches, television sets and 10, 000 litre water tanks worth thirty seven thousan, eight hundred and ninety eight pula (P 37, 898.00). Additionally, BTC also donated seventy thousand pula (P70,000.00) to their marathon technical partner, Francistown Athletics Club (FAC) which will be used for daily operations as well as to purchase equipment for the club.
The BTC Francistown Marathon aligns seamlessly with BTC’s corporate social investment programme, administered through the BTC Foundation. This programme is a testament to BTC’s dedication to community development, focusing on key areas such as health promotion. The marathon, now in its third year, not only promotes a healthy lifestyle but also channels all proceeds to carefully chosen charities as part of BTC’s commitment to impactful and sustainable projects.
Speaking at the launch, the BTC Managing Director Mr Anthony Masunga stated that the marathon underscores BTC’s commitment to community upliftment and corporate social investment. He stated that “the annual event which has been in existence since 2016, having taken a break due to the covid and other logistical issues, is instrumental to the economic upliftment of the city of Francistown”. He congratulated all the beneficiaries for having been nominated to receive the donations, adding that “the donation of proceeds from the 2023 marathon aims to highlight BTC’s commitment and heart for Batswana and our continued impact in the different industries”.
He further stated that through this marathon, “we demonstrate our steadfast commitment to having a good influence on our communities, this event is a manifestation of our dedication to promoting education and a healthier, more active society”. He concluded by stating that “BTC looks forward to another successful marathon that will leave a lasting positive influence on the greater Francistown community and the country at large” he said.
Giving welcome remarks, the Councillor for Donga, Honourable Morulaganyi Mothowabarwa stated that “he is ecstatic that BTC is collaborating with the City of Francistown on yet another installment of the Marathon”. He continued to offer his support to BTC to enable this marathon to continue over the coming years, stating that the “CSI element is a welcome development that helps empower our communities”, he said.
The 3rd BTC Francistown Marathon is officially open for registrations and athletes may use the following platforms to register and pay; through Smega by dialling *173# and choosing opton 5, then choose Option 3 for the Francistown marathon, at any BTC store or by visiting the BTC website and clicking on the BTC Francistown Marathon and choosing the relevant options.
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Letsholo lauds President Masisi’s digitization in fight against corruption
Thapelo Letsholo, Member of Parliament for Kanye North, delivered a moving speech at the United Nations International Anti-Corruption Day commemoration, praising President Dr. Mokgweetsi Eric Keabetswe Masisi’s digitalization initiative in the fight against corruption. Letsholo highlighted the importance of embracing digitalization in governance as a crucial step in curbing corrupt practices.
According to Letsholo, the implementation of digital systems in government services can significantly reduce direct interactions between citizens and officials, which often serve as fertile grounds for corruption. By minimizing these opportunities for illicit activities, the efficiency and transparency of public services can be enhanced. Letsholo pointed to Estonia’s success in digital governance as an example, where public services have become more transparent, accessible, and efficient.
The MP commended President Masisi’s commitment to digitalization and E-Governance, emphasizing that it aligns with global anti-corruption standards. He called for full support and active participation from all sectors to ensure the success of this initiative.
Letsholo also stressed the importance of improving detection methods and refining whistleblower laws to effectively combat corruption. He highlighted the unseen and unspoken facets of corruption as its lifelines, emphasizing the need for robust detection mechanisms and a system that encourages and protects whistleblowers.
Addressing the societal role in fighting corruption, Letsholo focused on the crucial role of everyday citizens and civil servants who often witness corrupt practices firsthand. He acknowledged the existing reluctance to report corruption due to the perceived risks of repercussions. To change this narrative, Letsholo advocated for creating an environment where staying silent is deemed more detrimental than speaking out. He called for a cultural shift where the potential benefits of exposing corruption outweigh the risks, ensuring that whistleblowers are protected and feel secure in coming forward.
Letsholo called for collective responsibility and action in creating a system that not only detects and reports corruption but also supports those who stand against it. He expressed hope that under President Masisi’s digitalization initiatives, the future of governance in Botswana will be characterized by integrity, transparency, and accountability. Letsholo’s speech resonated with the sentiments of hope and determination that permeated the commemoration, emphasizing the need for unity in the fight against corruption.
In summary, Letsholo lauded President Masisi’s digitalization initiative in the fight against corruption, highlighting its potential to curb corrupt practices, enhance efficiency and transparency in public services, and align with global anti-corruption standards. He emphasized the importance of improving detection methods, refining whistleblower laws, and creating an environment where speaking out against corruption is encouraged and protected. Letsholo called for collective responsibility and action in creating a future characterized by integrity, transparency, and accountability in governance.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.