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Low Pula depreciation undercuts BoB income in 2014

The central bank, Bank of Botswana, has made a reduced net income of P4.1 billion in 2014, lower than P7 billion in 2013. This was attributable to a lower overall depreciation of the Pula in 2014, resulting in lower contribution of revaluation gains to net income, the Bank of Botswana Annual Report of 2014, which was released this week, revealed.

The Report painted a picture of a stable economy, positive balance of payments, also mentioning the existence of threats. For the year 2014, BoB maintained the same level of interest on foreign exchange reserves at P1,1 billion, as in 2013.

Assets increased from P68.6 billion in 2013 to P 79.7 billion in 2014, mainly attributable to an increase in foreign exchange reserves from P67.8 billion to P79.1 billion, a 16.7 percent increase.

On the liabilities side, the balance on the Government Investment Account increased by 40.8 percent from P26.5 billion in 2013 to P37.3 billion in 2014. Bank of Botswana Certificates fell from P5.5 billion in 2013 to P4.2 billion in 2014 due to a decrease in excess liquidity in the banking system.

Net income of P2.4 billion in 2014 available for distribution, after P1.6 billion transferred to currency revaluation reserve. P2.4 billion paid to Government (P1.6 billion in 2013), comprising:
The Bank maintained its Monetary policy stance in 2014, with a lower level of excess liquidity and increase in conversion of deposits to loans as well as a decrease in credit  growth;  credit extensions to lower for households were lower, while they accelerated for businesses.

The main contributors to positive balance of payments included the traditional diamond exports; tourism receipts; inflows from the Southern African Customs Union (SACU).

There was a notable fall in imports capital goods and fuel.       

With regards to the capital markets, P15 billion Government Bond Programme remains in place, supporting market development and acting as a source of government funding.

Over all, the country experienced a lowered GDP growth, attributable to the slower growth in both the mining and non-mining sectors in 2014. Inflation within the central bank’s medium-term of between 3 and 6 percent objective range in 2014. Competitiveness of the exchange rate maintained and Pula basket and rate of crawl were unchanged in 2014.

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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.

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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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