BDC starts chopping ‘worthless’ investors
Botswana Development Corporation (BDC) Managing Director, Bashi Gaetsaloe’s drive to push the Corporation to profitability and eliminate unworthy investments may come down hard on small investors in the BDC portfolio.
Government’s investment arm is said to be on mission to push out its partnering company at Talana Farms with the view of establishing new partnership with a new partner who has financial muscle.
WeekendPost has been availed with information indicating that Botalana Farms, which jointly operates Talana Farms with BDC has had a troublesome relationship with BDC as the horticultural project continues to struggle. Despite the project showing a promising sign, heavy rains in the past few years soured the relationship between BDC and Botalana Ventures, as the farm suffered financial difficulties.
BDC has been operating Talana Farms jointly with Botalana Ventures since 2006 and the two entities had enjoyed what looked like a breakthrough for Botswana’s horticultural produce sufficiency. Talana Farms’ General Manager, Jan Willemse, revealed in the past that for future growth the farm was targeting the South African and Namibian market for their produce.
The bone of contention however in the last few years has been the BDC’s unwillingness to put more capital into the project to increase production and even rescue the business from unforeseen fates like the floods which occasionally destroy crops and other produce.
Close sources at BDC have revealed to this publication that, occasionally when BDC puts in capital to rescue the project, it demands Botalana Ventures, as its partner to repay part of what it put towards the projects, regardless of whether the farm recovered the money or not. But observers say as business, BDC has every right to make such demands because it has invested.
Sources also revealed that in the last few years, BDC has been sceptical about pumping more money into the project, and if it offers incentive, it does so with “unrealistic demands” on the conditions put on offer.
Informants inside BDC indicate that, the government owned entity holds the view that it has not benefited from the partnership, as it is forced to pump money onto projects, while the farm is struggling to raise the money.
In April 2014, BDC announced the appointment of Bashi Gaetsaloe as the new Managing Director, taking over from Maria Nthebolan, who had resigned a year earlier. The appointment of the new Managing Director saw BDC adopting transformations under the new BDC business model which places more focus on minimizing risks. The arrival of Gaetsaloe has however not changed the perception of the corporation towards the feasibility of Talana Farms under the current partnership.
According to sources, the major concern with regard to Talana Farms’ produce is inability to sell in Botswana as local retailers prefers cheaper produce from neighbouring South Africa which are not necessarily of good quality when compared to Talana Farms produce. Retailers are the biggest buyers of horticultural produce in Botswana.
This publication has also been furnished with information to the effect that, one of the leading local retail giants is said to have expressed desires to take over Talana Farms, and operate it either jointly with BDC, or solely.
BDC Head of Marketing Communications Boitswarelo Lebang could not divulge information to the publication regarding the current relationship between BDC and Botalana Venutres. “This information is confidential between BDC and our joint venture partner,” she said.
“What we can confirm is that BDC insists that all its projects and joint venture companies operate on a sustainable and commercially viable basis,” she added.
The BDC spokesperson could also not confirm nor deny that BDC is courting Choppies Group to establish a new partnership to operate the farm and noted that the information around discussion of such matters is strictly confidential.
“BDC insists that all its projects and joint venture companies operate on a sustainable and commercially viable basis. If achieving this goals means that the project / JV Company seeks assistance financial or technical from third parties then this is welcome as long as it is done within the scope of our agreement with our JV partner,” she explained.
Lebang said Botalana Ventures is an important and major producer of fresh produce to the local market. She noted that the fact that Botswana is still importing up to 80% of horticultural produce from South Africa presents a significant opportunity for both Botalana and other local Batswana farmers to step up and fill this demand.
Botalana Ventures Managing Director, who is based fulltime at the farm, could not be reached for comment at the time of going to press.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.