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Local companies must expand to new markets


Botswana could create more jobs by changing its mindset and unlocking opportunities. This was revealed at the first annual Job Summit held in Gaborone. The panellists, made up of experts across various industries, told participants that Botswana should use its access to cheaper capital as a tool for improving the country’s prosperity. Furthermore, Botswana should align itself with the global world’s thinking.


“Botswana has been caught on the wrong side of global thinking. While the USA is talking about inclusive growth, this has not been the case here,” said Obuseng Sennye, CEO of Preston Executive. Sennye explained that part of global thinking involves seeing opportunities while others see crisis, he gave an example of immigration reforms as a tool for attracting the best brains and fostering competition. “Creativity and competiveness attracts talent that could be used for creating jobs.”


In his presentation, Sennye said that the country is facing serious problems in project management and implementation. He said that the country’s problems are deeply structural, and that the country’s problems with job creation predates the 2008 recession.

Sennye expressed concerns that policies have not delivered intended objectives, he argued for a change in focus. “The focus should be on quality growth that doesn’t leave the majority out,” he stressed, adding that quality jobs and social inclusion matter a great deal in the development of any country.


Sennye underlined the importance of strategic forecasting in dealing with the country’s problems, challenging the leadership to change their mindset in the fight against corruption. He said that the government should strive to be efficient and accountable.

“Rwanda thrives through efficiency. They achieved this through good planning and efficient execution,” he said. On the issue of reforms, Sennye holds that regulatory reforms which will align the country with global thinking are needed, giving an example of investor protection reforms that will guard against arbitrary deportation.


Thapelo Tsheole, Deputy Chief Executive Officer, Botswana Stock Exchange (BSE), said the country needs to look beyond borders to leverage on the relationships it has with other countries. He explained that Botswana has a strong balance sheet, comprising of pension and foreign reserves, which could be used to help local companies expand into new markets.

“Expanding companies bring money in the country because they will have their headquarters here.”

He added that Africa has a rising middle class, therefore opportunities are in abundance in other countries.

Tsheole said the financial service sector offers room for growth, furthermore other countries continue to show confidence in the local bourse. “The average daily trading in our stock exchange is around P12 million, half of that comes from outside,” he remarked. According to Tsheole, Botswana’s high credit ratings and no exchange controls makes it attractive to investors.


When commenting on Botswana’s foreign reserves that stand at P88 billion, Tsheole said that not all the money belongs to the government, some belong to the pension funds. He took issue with the foreign reserves that are managed outside the country, saying that investing offshore creates jobs there and not here.

“We should exploit our capital before it’s exploited, they develop at our expense,” he said, adding that sending money outside results in no skills transfer. He called for affirmative action in managing the funds.


Tsheole warned that “individualist pursuits” have distorted the functions of institutions. He said some institutions in Botswana function as if they are working for a different country or economies. This has led to complexity in project management, in the process creating fragmentation. “We need coordination and to have some form of linkage,” he concluded.


Tsheole’s message will struck a chord with those who have been calling for pension funds to invest the bulk of their money locally. Pension funds are allowed to invest 30% of the money locally and 70% offshore. Botswana Public Officers Pension Fund, with assets valued above P50 billion, is one of the largest pension funds in Southern Africa.

It has invested 35% in Botswana while the rest is offshore. Of recent they have been investing more in the country through their P800 million infrastructure fund, so far they have committed P300 million from the fund in bringing the first Hilton hotel to Botswana.

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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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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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Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

23rd January 2023

African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).

AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.

The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.

The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.

To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”

Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.

The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.

“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.

“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.

The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

About the World Economic Forum Annual Meeting 2023

The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,

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