Connect with us

Botswana Post excellence strategy threatened


Botswana Post’s Journey to Excellence could be a pipe dream. The strategy draws to a close next month (March), and already its success is threatened as key goals of the strategy have not yet been accomplished.

A key target of the current five year strategy is to become a P500 million revenue company by March 2016 however the ghastly financial performance of the Post could be an indication that the target is insurmountable.

The strategy was designed to drive a diversification and transformation programme and its aim was to convert Botswana Post into a highly technological company and a one-stop-shop for customers, offering an up market service experience with global product offerings and business centers.

The initial deadline was 2014 but it was later extended to 2016 to align it with the Vision 2016; nonetheless as highlighted in the 2015 Annual report most of the strategy targets have not been met.

As noted in the report, the company and the group’s revenue rose by 18% to P366 million and 29 % to P430 million respectively. The growth was driven by business services, courier and logistics and philately. However the cost of sales grew faster than revenue at 34 percent. This then translated into slightly squeezed margins with the loss of the year rising from P33.8 million to P47 million.

Sharing his sentiments, the Group Chairman Polokoetsile Motau said he is hopeful that the key target of becoming a P500 million worth company could be realized only if the contract they are working on is signed.

“Despite the setbacks of the review period, there is every indication that we are on track to meet the target, provided a contract on which we have been working is signed. If it’s not signed we may not reach the target,” he said.

Polokoestile said the transformation requires significant financial resources which Botswana Post does not have. He added that the tight and unfavorable economic conditions have exerted pressure on the business and cashflows have negatively impacted the company.

As highlighted in the report, Botswana Post has not been successful in achieving another target of reducing cost to income ratio to around 60%. The failure has been attributed to the very high cost of sales and strategic expenses incurred in transformation drive.

The current financial conditions as indicated in the annual report cast a significant doubt as to whether the targets would be met.  The company has however managed to make strides in innovation with the launch of the mobile app that enables customers to purchase prepaid electricity.

Continue Reading


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.

Continue Reading


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.

This content is locked

Login To Unlock The Content!

Continue Reading


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.

Continue Reading