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Trade deficit recorded in June


Botswana has recorded a trade deficit of P603.7 million, as imports outweigh exports mainly due to fall in diamond price during the month of June, data from Statistics Botswana has revealed.


The Monthly Merchandise Trade Statistics indicate that for the month of June, total imports recorded an increase of 22.1 percent (P1, 451.6 million) from the May 2015 value of P6, 558.6 million to P8, 010.2 million. As compared to the same period last year, the June 2015 import figure shows an increase of P2, 169.0 million, which is 37.1 percent, increase from P5, 841.2 million recorded during the same month of the previous year.


Total exports  went down by 13,8%(P1, 181.5 million)  from the May 2015 value of P8, 588.0 million to P7, 406.5 million .Total exports show a fall of P736.6 million (9.0 percent) from the June 2014 value of P8, 143.1 million.


Statistics Botswana says the country experienced   a small increase of 1.1 percent (P73.0 million) in the May 2015 import value when comparing figures from the May and June 2015 digests while total Exports for May 2015 recorded a large increase of 20.9 percent (P1, 484.9 million) during the same period.


The monthly digest shows that composition of imports by principal commodities for June 2015, shows that Diamonds contributed the most to total imports (P8, 010.2 million)  having contributed 42.4 percent (P3, 399.6 million), followed by Machinery& Electrical Equipment with 11.8 percent (P944.9 million) and Food, Beverages & Tobacco with 11.7 percent (P933.6 million). Fuel and Chemicals & Rubber Products contributed 9.5 percent (P761.3 million) and 5.3 percent (P426.0 million) respectively, to total imports during the month under review.


SB says total exports were valued at P7, 406.5 million, with 86 percent (P6, 368.4 million) attributed to exports of Diamonds. These diamonds consist of diamonds from Diamond polishing companies as well as those from the aggregation process. Copper Nickel, Machinery & Electrical Equipment and Meat & Meat Products contributed 6.1 percent (P455.2 million), 2.2 percent (P160.3 million) and 1.6 percent (P116.0 million) respectively, to total exports during the month.


Botswana‘s main trading partners are South Africa, Namibia, European Union, United Kingdom, Asia, China, Japan, Israel and Belgium.


According to the digest imports for June 2015 were valued at P8, 010.2 million, with 60.2 percent (P4, 824.9 million) coming from South Africa and 16.5 percent (P1, 320.4 million) from Namibia.  Zimbabwe contributed 5.3 percent (P 425.6 Million) while Canada supplied 6.6 percent (P532.0 million) of total imports during the month under review.  


Other sources of imports are Asian block which supplied imports valued at P496.3 million, representing 6.2 percent of total imports. India contributed 1.7 percent (P134.5 million), while China and Israel contributed 1.4 percent (P111.6 Million) and 1.3 percent (P101.0 million) respectively to total imports during June 2015.


During the period under review, the European Union supplied imports valued at P275.9 million while Belgium contributed P126.7 million to total imports recorded during the same period.


The statistics agency notes that 33.9 percent (P2, 512.1 million) of the total exports was destined to SADC. Namibia and South Africa received 17.0 percent (P1, 261.0 million) and 15.6 percent (P1, 157.7 million) respectively, of total exports. Exports destined to Asia were valued at P1, 930.4 million, representing 26.1 percent of total exports. India received most of the exports destined to Asia at the value of P874.6 million, representing 11.8 percent of total exports.


Exports destined to the EU were valued at P1, 475.3 million, representing 19.9 percent of total exports during the period under review. Belgium received most exports destined to EU, having received 18.1 percent (P1, 337.7 million) of total exports during June 2015.

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Unleashing potential: Connectivity as a catalyst for economic and societal growth in Botswana

23rd April 2024

Imagine a young entrepreneur in the city of Gaborone with dreams of starting her own business. With access to high-speed internet, she can connect with suppliers, market her products online, and reach customers around the world, all from the comfort of her home.

Just a few years ago, this internet access was a luxury reserved for the privileged few. Today, however, thanks to the ambitious National Broadband Strategy launched in 2019, the digital landscape of Botswana is undergoing a dramatic transformation, reflecting the government’s commitment to providing stable and secure internet connectivity to businesses, citizens, and organisations.

A proactive approach to ensuring uninterrupted connectivity

The importance of reliable connectivity can’t be overstated. For instance, on 14 March 2024, four major undersea telecommunications cables, West Africa Cable System (WACS), Africa Coast to Europe (ACE), MainOne, and SAT–3, experienced simultaneous outages, with significant internet disruptions across the continent.

In this instance, Liquid Intelligent Technologies’ (Liquid) proactive investment in multiple undersea cables along both the east and west coasts of Africa showed the benefits of a robust and diversified network. Our redundant international backbone ensured traffic was rerouted, maintaining an uninterrupted service and keeping customers connected. This commitment to uninterrupted connectivity is mirrored in our initiatives such as the Gaborone Metro Ring.

Driving growth and promoting investment

The Gaborone Metro Ring is a telecommunications network powered by Liquid Botswana, which has turned the bustling capital city into a hub of innovation and entrepreneurship. Start-ups and established businesses alike are harnessing the power of high-speed internet to drive growth, create jobs, and open doors to investment.

Connectivity lies at the heart of Botswana’s digital transformation, creating economic growth and community development. The Gaborone Metro Ring, which spans key business hubs and high-density areas, provides internet access and empowers individuals and hundreds of businesses in the city, driving innovation, and fostering inclusivity. Covering Gaborone and Lobatse, it is providing the internet connectivity necessary to positively transform and grow the Botswana economy.

Fuelling entrepreneurship and job creation

One of the key benefits of enhanced connectivity is its ability to support advanced data, video, messaging, and voice services, paving the way for increased efficiency and productivity. Businesses, particularly start-ups and SMEs, can leverage high-speed internet to streamline operations, reach new markets, and drive growth. Moreover, reduced tariffs and exclusive offers within the metro fibre zone enable businesses to innovate and compete globally, fuelling entrepreneurship and job creation.

Empowering individuals and strengthening communities

In a country with 1.95 million internet users, representing an internet penetration rate of 73.5% of the total population, the benefits of connectivity extend far beyond Lobatse and Gaborone, reaching communities across the country. Improved access to information and services empowers individuals, strengthens communities, and drives social development. Moreover, connectivity plays a crucial role in bridging the digital divide, ensuring that no one is left behind in Botswana’s journey towards a digitally inclusive society.

As Botswana continues to embrace digital transformation, the role of connectivity will only become more critical. It is not just about connecting people, but about empowering them to realise their full potential, driving economic growth, and building a more inclusive society.

Internet is the backbone of a knowledge-based economy. From empowering entrepreneurs and startups and fuelling the digital economy, to improving education and healthcare, reliable and resilient connectivity is key. In addition, in the event of an emergency such as the recent multiple undersea cable failure, a diverse and stable option that ensures business continuity is essential. The Liquid-powered Gaborone Metro Ring, adding to the company’s 110,000km of fibre across the continent, is fuelling the transformative power of connectivity in Botswana.

 

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Business

LLR transforms from Company to Group reporting

9th April 2024

Botswana Stock Exchange listed diversified real estate company, Letlole La Rona Limited (“LLR” or “the Company” or “the Group”), posted its first set of group financial statements which comprise the Company and Group consolidated accounts, which show strong financial performance for the six months ended 31 December 2023, with improvements across all key metrics.

The Company commenced the financial year with the appointment of a Deputy Chairperson, Mr Mooketsi Maphane, in order to bolster its governance and enhance leadership continuity through the development of a Board and Executive Management Succession Plan.

At operational level, LLR increased its shareholding in Railpark Mall from 32.79% to 57.79% and proudly took over the management of this prime asset.

The CEO of LLR, Ms Kamogelo Mowaneng commented “During the period under review, our portfolio continued to perform strongly, with improvements across all key metrics as a result of our ongoing focus on portfolio growth and optimisation.

“We are pleased to report a successful first half of the 2024 financial year, where we managed to not only grow the portfolio through strategic acquisitions and value accretive refurbishments but also recycled capital through the disposal of Moedi House as well as the ongoing sale of section titles at Red Square Apartments. The acquisition of an additional 25% stake in JTTM Properties significantly uplifted the value of our investment portfolio to P2.0 billion at a Group level. Our investment portfolio was further differentiated by the quality of our tenant base, as demonstrated by above market occupancy levels of 99.15% and strong collections of above 100% for the period”.

The growth in contractual revenue of 9% from the prior year’s P48.0 million to the current year P52.2 million, increased income from Railpark Mall, coupled with high collection rates, has enabled the company to declare a distribution of 9.11 thebe per linked unit, which is in line with the prior year.

 

In line with its strategic pillars of ‘Streamlined and Expanded Botswana Portfolio’ as well as ‘Quality African Assets’, the Group continuously monitors the performance of its investments to ensure that they meet the targeted returns.

“The Group continues to explore yield accretive opportunities for balance sheet growth and funding options that can be deployed to finance that growth” further commented the CEO of LLR Ms Kamogelo Mowaneng.

Ms Mowaneng further thanked the Group’s stakeholders for their continued support and stated that they look forward to unlocking further value in the Group.

 

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Botswana’s Electricity Generation Dips 26.4%

9th April 2024

The Botswana Power Corporation (BPC) has reported a significant decrease in electricity generation for the fourth quarter of 2023, with output plummeting by 26.4%. This decline is primarily attributed to operational difficulties at the Morupule B power plant, as per the latest Botswana Index of Electricity Generation (IEG) released recently.

Local electricity production saw a drastic reduction, falling from 889,535 MWH in the third quarter of 2023 to 654,312 MWH in the period under review. This substantial decrease is largely due to the operational challenges at the Morupule B power plant. Consequently, the need for imported electricity surged by 35.6% (136,243 MWH) from 382,426 MWH in the third quarter to 518,669 MWH in the fourth quarter. This increase was necessitated by the need to compensate for the shortfall in locally generated electricity.

Zambia Electricity Supply Corporation Limited (ZESCO) was the principal supplier of imported electricity, accounting for 43.1% of total electricity imports during the fourth quarter of 2023. Eskom followed with 21.8%, while the remaining 12.1, 10.3, 8.6, and 4.2% were sourced from Electricidade de Mozambique (EDM), Southern African Power Pool (SAPP), Nampower, and Cross-border electricity markets, respectively. Cross-border electricity markets involve the supply of electricity to towns and villages along the border from neighboring countries such as Namibia and Zambia.

Distributed electricity exhibited a decrease of 7.8% (98,980 MWH), dropping from 1,271,961 MWH in the third quarter of 2023 to 1,172,981 MWH in the review quarter.

Electricity generated locally contributed 55.8% to the electricity distributed during the fourth quarter of 2023, a decrease from the 74.5% contribution in the same quarter of the previous year. This signifies a decrease of 18.7 percentage points. The quarter-on-quarter comparison shows that the contribution of locally generated electricity to the distributed electricity fell by 14.2 percentage points, from 69.9% in the third quarter of 2023 to 55.8% in the fourth quarter. The Morupule A and B power stations accounted for 90.4% of the electricity generated during the fourth quarter of 2023, while Matshelagabedi and Orapa emergency power plants contributed the remaining 5.9 and 3.7% respectively.

The year-on-year analysis reveals some improvement in local electricity generation. The year-on-year perspective shows that the amount of distributed electricity increased by 8.2% (88,781 MWH), from 1,084,200 MWH in the fourth quarter of 2022 to 1,172,981 MWH in the current quarter. The trend of the Index of Electricity Generation from the first quarter of 2013 to the fourth quarter of 2023 indicates an improvement in local electricity generation, despite fluctuations.

The year-on-year analysis also reveals a downward trend in the physical volume of imported electricity. The trend in the physical volume of imported electricity from the first quarter of 2013 to the fourth quarter of 2023 shows a downward trend, indicating the country’s continued effort to generate adequate electricity to meet domestic demand, has led to the decreased reliance on electricity imports.

In response to the need to increase local generation and reduce power imports, the government has initiated a new National Energy Policy. This policy is aimed at guiding the management and development of Botswana’s energy sector and encouraging investment in new and renewable energy. In the policy document, Minister of Mineral Resources, Green Technology and Energy Security Lefoko Moagi stated that the policy aims to transform Botswana from being a net energy importer to a self-sufficient nation with surplus energy for export into the region. Moagi expressed confidence that Botswana has the potential to achieve self-sufficiency in electric power supply, given the country’s readily available energy resources such as coal and renewable sources.

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