Duma may make way for Dumelang
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COMRADES PARADE: Umbrella for Democratic Change leader, Duma Boko has only had kind words for the Botswana Congress Party (BCP) in recent weeks. The two parties are preparing to launch their marriage, and Dumelang Saleshando, the BCP leader may be rewarded with a green card to contest in Gaborone Bonninton North, as Boko focuses on presidential bid.
That the Umbrella for Democratic Change (UDC) and the Botswana Congress Party (BCP) are headed for talks is not in doubt. What could be overworking the ruling Botswana Democratic Party’s (BDP) think tanks is the confidence that is mounting among opposition ranks.
Opposition lobbyists on the ground want Duma Boko to purely focus on the Presidential bid in 2019 and not distract his bid with the side dish of a constituency battle – and this could be another add on to mending relations between the UDC and BCP.
Events on the ground dictate that Boko has settled the debate of who should or will be the President of the all-encompassing UDC, while on the other hand the BCP’s Dumelang Saleshando has accepted his fate – that should an agreement be penned, he will be Boko’s running mate, and one of the two Vice Presidents under the UDC.
Some BCP stalwarts who spoke to Weekend Post indicated that the BCP has always been a proponent of opposition cooperation and that there is no doubt that they will be part of the UDC in the run up to the 2019 elections.
“This effectively means that we are going to also work with the UDC in all the bye-elections that will come before 2019.”
This publication gathered that the BCP central committee is expected to meet on Saturday to come up with a roadmap for the talks. “The central committee meeting will deliberate on how the party handles the talks internally. The party expects a lot of trade-offs, including on constituencies,” said a source.
Much has been said about the hierarchy of the UDC, should the BCP come through. Now that the ink has dried on who is head, lobbyists from both camps want Duma Boko to focus on the Presidential bid in the 2019 elections campaign. They are of the view that Boko could be central to a potential victory in 2019, if his offensive charm is unleashed across constituencies. The thinkers are also taking cognisance of the possibility of a direct election of the President, should the BDP sponsor such a law.
The opposition is also wary that a new legal dispensation in regard to election of the President of the Republic could give President Lt Gen Ian Khama another bite at the cherry if he so wishes. There are murmurs that some within the BDP are not confident enough about their prospect of success without Khama at the helm. But as of now, it is a non-issue; automatic succession is still the order of day.
“There are many reasons why we wish to see comrade Boko profiled for State House; if he makes way for Saleshando, it means that Gaborone Central remains with the Botswana Movement for Democracy (BMD) and there will be not a lot of debate as to whether Saleshando should go back to Gaborone Central or not,” said one of the lobbyists.
While some had doubted Boko’s political stamina and appetite in the past, the BNF leader has already proved his mettle; he was at the forefront in the Goodhope-Mabule bye-election when Kgosi Lotlaamoreng II annihilated Presidential Affairs minister, Eric Molale.
And through his actions, Boko has demonstrated that he is ready to challenge for the highest office in the land, his followers have not even an iota of doubt. There is also no threat from the BNF front, it is evident that there is and there will be no vacancy for the position of president at BNF in a long shot.
Indications are that Saleshando could then be shifted to Gaborone Bonnington North, which will be one of the two or three constituencies awarded to the BCP in the southern part of the country. Informants have indicated that preliminary discussions point to the BCP being given the majority of the northern constituencies except for Francistown South and Maun West.
Political analyst, Dr Wazha Morapedi of the University of Botswana believes that should Boko give way to Saleshando, it will be a masterstroke. He said the gesture could also have the potential of warming up BCP members who doubted the genuineness of the cooperation. He also pointed out that the move could free Boko to focus on the bigger and broader issues of the campaign towards the 2019 general election.
Morapedi also told opposition parties to focus on UDC only, “any other thing will not yield any results. The BCP should just come under the UDC and they should all dissolve their parties,” he said. Morapedi pointed out that things like a pact will not work. “They must eject all those against cooperation and focus on the UDC and they will see the results.” He said it is not that important as to who will stand where, but rather the model.
According to UDC spokesperson, Moeti Mohwasa, the BCP gesture not to contest Boswelatlou is welcome because it paves way for the BCP to come under the Umbrella model. He said the two parties are ready to engage each other, “and we would very want the BCP to come under the UDC,” he said.
On the issue of Boko paving way for Salesghando Mohwasa cautioned members to desist from making certain moves which may put the leadership under unnecessary pressure. He said they should allow the talks to commence and conclude and the leadership will make final announcements.
BCP spokesperson, Dithapelo Keorapetse said: “We are not standing in Boswelatlou ward in Lobatse and we will assist the UDC to retain the seat. The cooperation in Botswelatlou is a culmination of both parties’ attempts to forge relations that would usher in an amicable working relationship and is a big step for the envisaged opposition cooperation leading up to 2019 general elections. We are currently working on a Memorandum of Understanding for bye-elections from now onwards and we hope not to oppose each other in 2019.
The BCP believes that Batswana and opposition parties enemy is one, BDP, therefore we ought to do as much as we can to retain seats held by opposition and wrestle those in the BDP in future bye-elections. BDP has become corrupt and bereft of ideas and has to go and it is only through opposition cooperation that we can achieve that.
So failure to cooperate is not an option, we have to find a way to emancipate Batswana who clearly want change now. On how we are going to cooperate in terms of the model, it will be discussed by the two parties looking at would work. We remain optimistic however that all will go well.”
For the first time in history the BDP has had its popular vote slip to below 50 percent of the total votes. The opposition is confident of unseating the BDP at the next election and the ruling party has been forced to introspect and re-engineer some of its own internal processes such as primary elections.
Duma Boko easily won the Gaborone Bonninton North constituency against BDP’s Robert Masitara and BCP’s Annah Motlhagodi. Motlhagodi is expected to lean on the side of her president should the constituency become a bait in the unity talks.
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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.
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BPC Signs PPA with Sekaname Energy
The Botswana Power Corporation (BPC) has taken a significant step towards diversifying its energy mix by signing a power purchase agreement with Sekaname Energy for the production of power from coal bed methane in Mmashoro village. This agreement marks a major milestone for the energy sector in Botswana as the country transitions from a coal-fired power generation system to a new energy mix comprising coal, gas, solar, and wind.
The CEO of BPC, David Kgoboko, explained that the Power Purchase Agreement is for a 6MW coal bed methane proof of concept project to be developed around Mmashoro village. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy in the energy mix. The use of coal bed methane for power generation is an exciting development as it provides a hybrid solution with non-dispatchable sources of generation like solar PV. Without flexible base-load generation, the deployment of non-dispatchable solar PV generation would be limited.
Kgoboko emphasized that BPC is committed to enabling the development of a gas supply industry in Botswana. Sekaname Energy, along with other players in the coal bed methane exploration business, is a key and strategic partner for BPC. The successful development of a gas supply industry will enable the realization of a secure and sustainable energy mix for the country.
The Minister of Minerals & Energy, Lefoko Moagi, expressed his support for the initiative by the private sector to develop a gas industry in Botswana. The country has abundant coal reserves, and the government fully supports the commercial extraction of coal bed methane gas for power generation. The government guarantees that BPC will purchase the generated electricity at reasonable tariffs, providing cash flow to the developers and enabling them to raise equity and debt funding for gas extraction development.
Moagi highlighted the benefits of developing a gas supply industry, including diversified primary energy sources, economic diversification, import substitution, and employment creation. He commended Sekaname Energy for undertaking a pilot project to prove the commercial viability of extracting coal bed methane for power generation. If successful, this initiative would unlock the potential of a gas production industry in Botswana.
Sekaname Energy CEO, Peter Mmusi, emphasized the multiple uses of natural gas and its potential to uplift Botswana’s economy. In addition to power generation, natural gas can be used for gas-to-liquids, compressed natural gas, and fertilizer production. Mmusi revealed that Sekaname has already invested $57 million in exploration and infrastructure throughout its resource area. The company plans to spend another $10-15 million for the initial 6MW project and aims to invest over $500 million in the future for a 90MW power plant. Sekaname’s goal is to assist BPC in becoming a net exporter of power within the region and to contribute to Botswana’s transition to cleaner energy production.
In conclusion, the power purchase agreement between BPC and Sekaname Energy for the production of power from coal bed methane in Mmashoro village is a significant step towards diversifying Botswana’s energy mix. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy. The government’s support for the development of a gas supply industry and the commercial extraction of coal bed methane will bring numerous benefits to the country, including economic diversification, import substitution, and employment creation. With the potential to become a net exporter of power and a cleaner energy producer, Botswana is poised to make significant strides in its energy sector.
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UDC deadlock: Boko, Ndaba, Reatile meet
It is not clear as to when, but before taking a festive break in few weeks’ time UDC leaders would have convened to address the ongoing deadlock surrounding constituency allocation in the negotiations for the 2024 elections. The leaders, Duma Boko of the UDC, Mephato Reggie Reatile of the BPF, and Ndaba Gaolathe of the AP, are expected to meet and discuss critical matters and engage in dialogue regarding the contested constituencies.
The negotiations hit a stalemate when it came to allocating constituencies, prompting the need for the leaders to intervene. Representatives from the UDC, AP, and BPF were tasked with negotiating the allocation, with Dr. Patrick Molotsi and Dr. Philip Bulawa representing the UDC, and Dr. Phenyo Butale and Wynter Mmolotsi representing the AP.
The leaders’ meeting is crucial in resolving the contentious issue of constituency allocation, which has caused tension among UDC members and potential candidates for the 2024 elections. After reaching an agreement, the leaders will engage with the members of each constituency to gauge their opinions and ensure that the decisions made are favored by the rank and file. This approach aims to avoid unnecessary costs and conflicts during the general elections.
One of the main points of contention is the allocation of Molepolole South, which the BNF is adamant about obtaining. In the 2019 elections, the UDC was the runner-up in Molepolole South, securing the second position in seven out of eight wards. Other contested constituencies include Metsimotlhabe, Kgatleng East and West, Mmadinare, Francistown East, Shashe West, Boteti East, and Lerala Maunatlala.
The criteria used for constituency allocation have also become a point of dispute among the UDC member parties. The issue of incumbency is particularly contentious, as the criterion for constituency allocation suggests that current holders of UDC’s council and parliamentary seats should be given priority for re-election without undergoing primary elections. Disadvantaged parties argue that this approach limits democratic competition and hinders the emergence of potentially more capable candidates.
Another disputed criterion is the allocation based on the strength and popularity of a party in specific areas. Parties argue that this is a subjective criterion that leads to disputes and favoritism, as clear metrics for strength and visibility cannot be defined. The BNF, in particular, questions the demands of the new entrants, the BPF and AP, as they lack a traceable track record to support their high expectations.
The unity and cohesion of the UDC are at stake, with the BPF and AP expressing dissatisfaction and considering withdrawing from the negotiations. Therefore, it is crucial for the leaders to expedite their meeting and find a resolution to these disputes.
In the midst of these negotiations, the BNF has already secured 15 constituencies within the UDC coalition. While the negotiations are still ongoing, BNF Chairman Dr. Molotsi revealed that they have traditionally held these constituencies and are expecting to add more to their tally. The constituencies include Gantsi North, Gantsi South, Kgalagadi North, Kgalagadi South, Good Hope – Mmathethe, Kanye North, Kanye South, Lobatse, Molepolole North, Gaborone South, Gaborone North, Gaborone Bonnignton North, Takatokwane, Letlhakeng, and Tlokweng.
The resolution of the contested constituencies will test the ability of the UDC to present a united front in the 2024 National Elections will depend on the decisions made by the three leaders. It is essential for them to demonstrate maturity and astuteness in resolving the constituency allocation deadlock and ensuring the cohesion of the UDC.