6 Reasons why you don’t have money but…
TEBOGO TOTENG
MONEYMIND
Millions of people around the world face complex financial decision everyday. However they have very little knowledge of how money works because they never really were taught. It is thrilling that the most important subject Money remains a taboo yet like the popular saying money makes the world go around.
When I decided to become a self-taught student on the money subject I came across the greatest lesson of success; financial independence. Financial independence is inter-twined with human being’s utmost pursuit; the pursuit of happiness.
A good home needs money, a comfortable and safer car needs money, engaging in charity work needs money and church needs money. While it is true that what makes us happy differ from one person to another, most if not all the factors that makes one happy needs money.
Financial independence is simply when one have an asset base that exceed his/her liabilities. When you have constant income that flow through and you never have to worry about money then you have attained financial independence.
The problem is that we go through school to get the best jobs and earn a salary and then we become slaves to our salaries. We become so much indebted that if you lose your job today you will immediately become bankrupt. You hate your job but you stay stuck because you can’t do without the salary.
The reason why 10% of the population controls 90% of the available resources is because they don’t work for money, money works for them. They have mastered the principles of money and have become efficient at using other people’s money and time to grow their own money.
Most of them have become self-made millionaires by the age of 40, and they never have to work again because they have more assets than debts. They avoid bad debts and bad debts they define as debts that will not bring money.
The unfortunate thing is that you and I have bumped into the concept of financial freedom by accident while some have never heard about the subject at all. We were raised to become educated and find good paying jobs but not everyone is lucky and have found good paying jobs.
Everyone though has an opportunity to leverage on time and invest towards financial freedom. Delaying gratification for a while could be a huge factor. Recently I met a client who I am sure will be millionaire if already she is not.
She started working 10 years ago rose through the ladder and she earns in excess of P20000 per month. She has never owned a car. She invested over P4000 in her insurance policies. Her reasons for not owning a car are that she wants to make savings on the petrol and car insurance. She has a cab she pays 350 pula per month for ferrying her around. She then smiles and tells me I will buy a Mercedes in the near future after finishing my obligations.
Incredible isn’t it? Being able to have a long term view of the future is an ingredient of financially successful people. Success expert Brian Tracy says only those who plan for the future will have one.
“Your life only begins to become a great life when you clearly identify what is that you want, make a plan to achieve it and work on that plan every single day.” Brian Tracy
SIX PRINCIPLES TO START YOUR JOURNEY TO FINANCIAL FREEDOM
I am always the problem
The man who changed my perspective towards life is the man who told me that I should always view myself as the problem, take complete responsibility for everything happening in my life and knowing that everything that happens to me is a direct consequence of my actions. Failure to take responsibility simply cultivates a culture of shifting responsibility. Once you begin to realize that everything that happens in you life you have attracted, you will begin to see your life take a different direction. Let us put it this way your current financial, spiritual, physically, health status and many other aspects of your life are a total summation of your past actions.
Waiting for change from outside
Many people see investment as a distant decision, a decision they can keep postponing to infinity. As the years rollover, so does the indecision but who are you waiting for. Nobody will come outside to come and effect change in your lives. You are the change that you seek and the decision for greater future starts today.
“You miss 100% of the shots you never take” Wayne Gretzy
Who Me
When you graduate out of college it never occurs to you that you will one day retire. It is packed in the distant memory. Without proper preparation you will easily form 94% of people in the country who will experience a reduced quality of life because you never thought it could be you.
Make a decision
If it is not done but only said it is commentary. A lot of what is in this article is common knowledge but we never bother to take action because we think we have time but we don’t. Be wise and take a decision today. Hoping, praying and intending is not enough but solid steps will ensure that we retire financially independent.
Pay the Price
“If you cannot save money then the seeds of greatness are not in you” W Clement. If you cannot practice budgeting as a life long habit, it will be impossible to achieve financial independence. You need to save between 10-15% of your monthly income. You can start small and then opportunities for saving will open up.
Time Perspective
How you view the future in longer term affects the decision that we take today. The tendency of thinking we will cross the bridge when we get there has a long lasting financial implication on our future.
Yours truly towards financial independence
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Business
LLR transforms from Company to Group reporting
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.
Business
Botswana’s Electricity Generation Dips 26.4%
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.
Business
MMG acquires Khoemacau in a transaction valued at P23Bn
MMG Limited, the Hong Kong-based mining company specializing in base metals, has successfully concluded the acquisition of Khoemacau Copper Mine, a state-of-the-art, world-class copper asset nestled in the northwest of Botswana.
On Monday, MMG announced that the acquisition of Khoemacau Mine in Botswana was finalized on 22nd March 2024. “This acquisition enriches the company’s portfolio with a top-tier, transformative growth project and signifies a monumental milestone in the Company’s journey,” MMG communicated in an official statement published on the Hong Kong Stock Exchange.
Upon completion of the acquisition, MMG remitted to the Sellers an Aggregate Consideration of approximately US$1,734,657,000 (over P23 billion), a sum subject to potential adjustments post-Completion.
In addition to the Aggregate Consideration, MMG, in accordance with the Agreement, advanced an aggregate amount of approximately US$348,580,000 (over P4.5 billion) as the Aggregate Debt Settlement Amount, to settle certain debt balances of the Target Group (Cuprous Capital/Khoemacau).
On November 21, 2023, Khoemacau announced that the shareholders of its parent company [Cuprous Capital] had agreed to sell 100% of their interests to MMG Limited.
MMG is a global resources company that mines, explores, and develops copper and other base metals projects on four continents. The company is headquartered in Melbourne, Australia, and has a significant shareholder, China Minmetals Corporation, which is China’s largest metals and minerals group owned by the Government of the People’s Republic of China.
On December 22, 2023, Khoemacau Copper Mining (Pty) Ltd received the approval from the Minister of Minerals and Energy of Botswana regarding the transfer of a controlling interest in the Project Licenses and Prospecting Licenses associated with the Khoemacau Copper Mine, a result of the Acquisition.
The Botswana Competition & Consumer Authority (CCA) on January 29, 2024, notified the market that it had given its approval for the takeover of Khoemacau Copper Mining by MMG Limited.
On January 29, 2024, the CCA issued a merger decision to the market, stating that after conducting all necessary assessments, it was ready to proceed.
The Competition Authority affirmed that the structure of the relevant market would not significantly change upon implementation of the proposed merger as the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service in the market of mining of copper and silver ores and the production, and sale or supply of copper concentrate in Botswana.
Furthermore, the CCA stated that the proposed merger would not have any negative impact on public interest matters in Botswana as per the provisions of section 52(2) of the Competition Act 2018.
Earlier this month, Minister of Minerals & Energy, Lefoko Maxwell Moagi, informed parliament that his Ministry was endorsing the Khoemacau acquisition by MMG Limited. He noted that not only was the company acquiring the existing operation but also committing to an expansion program that would cost over $700 million to double production, create more jobs for Batswana, and increase taxes and royalties paid to the Government.