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Air Botswana to capitalise on Cape monopoly

  • New Cape Town office opened
  • Travel route hinges on tourism, business
  • Total re-fleeting in 5 year strategy


CAPE TOWN: The national flag carrier, Air Botswana, has formalised its operations in Cape Town, South Africa by opening an office to better market the airlines route and supervise operations.


The airline is also looking to capitalise on the Cape Town-Gaborone route Air Botswana started flying to Cape Town in June 2012 first with the operation of the Maun-Cape Town route. In October of the same year, we began the Gaborone-Cape Town operation.


Cape Town, which is rated among the top places in the world to visit, carries great potential for tourism and business opportunities with its routes from the city into Gaborone and Maun.


Last week on Friday, the new general manager of Air Botswana, Tozivazvipi Ben Dahwa, travelled with senior members of management to officially open the Air Botswana office at the Cape Town International Airport in Western Cape province of South Africa.

The management team which included, Joe Motse, also lobbied stakeholders in the travel and tourism sector in the province to utilise the airliner for business and leisure travel to Gaborone and Maun to Cape Town.


South Africa Country Manager Isaac Mabote, told BusinessPost that though only Air Botswana and South African Airlink travel to Cape Town from Botswana, Air Botswana has an upper hand as it the monopoly of direct flights from Cape Town.


South African national, Ezra du Plessis, will be running the office and marketing the airline in Cape Town and the Western Cape province as a whole.


Du Plessis told this publication that, the airline has a database of clients that use Air Botswana when travelling into Botswana from the tourism hub that is Cape Town.


“I will be supervising Air Botswana operations as well as marketing the route in the whole of the Western Cape,” said Du Plessis. Air Botswana is the only airline that flies direct from Cape Town into Botswana.


It is for these challenges that the airline realized the need to have a permanent presence in this very important destination and market. The presence of dedicated personnel based in Cape Town
Global aviation company, Menzies Aviation services ticketing and ground operations for Air Botswana and Mabote says the firm will remain as the service provider due to their experience and expertise.
Menzies Aviation, a global firm operating 149 stations in 31 countries serves over 500 airline customers handling over 1 million flights and 1.5 million tonnes of cargo per annum.


The GM revealed that under his watch, the airline has improved its efficiencies and reliability. “Over the past few months, our performance record has consistently been above 85 percent OTP, with most delays contained within 60 minutes,” adding that “at a time when one or two of our aircraft are away in heavy maintenance shop visits, we have set ourselves a target of 90 percent in the short term ahead of our re-fleeting and upgrade strategy implementation.”


“The story to tell really is that we now know exactly where the pain is coming from and we have started with treatment,” said Dawha.


The new GM revealed that at some point the on time performance was 65 percent and in aviation terms this means a customer has a 50/50 probability they can fly.


“When an airline reaches this point in simple terms it means there is no business to talk about. Operating below 70 percent on time record is indicative of an airline business under distress,” said Dahwa, putting the efficiency issue into context.


Ben Dahwa, when first engaging with media after his appointment, noted that: “The airline is in need of serious assistance in the areas of technology solutions to leverage world class available solutions for enhanced efficiency in addition to revenue management to respond to rapidly changing industry challenges among other key issues.’


Staff morale was also said to be low, with turnover of general managers at the airline going unprecedented, painting a picture of a corporation in distress.


The loss making airline has been plagued by inefficiencies in operations that have further taken away some confidence from the customers.


 The airliner has completed a five year strategy that will most likely involve replacement of the six fleet of aircraft.


“Finally, work has been completed with the assistance of renowned Consultants to finalise a five year strategy plan which will inform a whole range of initiatives to drive revenues, manage and contain costs, increases efficiencies and productivity as well as appropriate resources in all business areas to optimise our business revenues.”  


The key strategic areas which have been considered, are; Route network and schedule; Re-fleeting/Fleet upgrade; Review of internal processes and procedures/process re-engineering to gain improvement in how we do things; Use of Technology to enhance delivery and simplicity and improving our people resource and processes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Joe Motse, Commercial Director at Air Botswana told BusinessPost in a short interview, that the re-fleeting, which awaits approval by Cabinet, will involve aircraft that is suitable for regional operations; these include the business routes of Gaborone-Johannesburg as well as leisure routes for tourism between Cape Town and Maun, and the mixed routes being Gaborone-Harare and Gaborone-Lusaka.


“The new will fleet will be a mix of jet and turbo prop aircraft that have however been modernised for faster flying times,” said Motse.


The airline is confident of having optimised its operations and have also recently expanded our cargo facilities and handling space, positioning ourselves well, in anticipation of increased cargo business through Sir Seretse Khama International Airport, which is said to be adept to handle all types of cargo such as perishables and valuables.

The airliner currently operates a dedicated cargo freighter on the Johannesburg- Gaborone route twice a week enabling customers to now send more volumes that were not possible with commercial aircraft.


The airliner is also in the process of acquiring new ground handling equipment to the tune of P43 million.  
                                                                                                                                                                                    
 

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The  Bulb World CEO selected for Africa’s prestigious award

22nd July 2021

The Bulb World Chief Executive Officer (CEO) and entrepreneur, Ketshephaone Jacob has been selected as a 2021 Top 50 Africa’s Business Hero.

Jacob was chosen from a pool of 12,000 applicants – many of whom are highly-skilled and accomplished entrepreneurs.

Africa’s Business Hero, sponsored by technology entrepreneur, Jack Ma, aims to identify, support and inspire the next generation of African entrepreneurs who are making a difference in their local communities, working to solve the most pressing problems, and building a more sustainable and inclusive economy for the future.

The initiative is as inclusive as possible and applications were open in English and French to entrepreneurs from all African countries, all sectors, and all ages who operate businesses formally registered and headquartered in an African country, and that have a 3 year-track record.

Every year, finalists are selected to compete in the ABH finale pitch competition and participate in a TV Show that will be broadcast online and across the continent.

The finalists will compete for a share of US $1.5 million in grant money.

The Bulb World, is home grown LED light manufacturing company, which was partly funded by Citizen Entrepreneurial Development Agency (CEDA) at the tune of P4 million, to manufacture LED lighting bulbs for both commercial and residential use in 2017.

The Bulb World operate from the Special Economic Zone of Selibe Phikwe. Early this year, The BulB World announced its expansion to South Africa, setting in motion its ambitious Africa expansion plan.

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Business

Mining production down 12 % IN Q1 2021

14th July 2021

During the first quarter of 2021, production in Botswana’s economic nucleus- the mining sector contracted by 12 percent. This is according to Mining Production Index released by Statistics Botswana this week.

The country’s central data body revealed that Index of Mining production stood at 74.4 during the first quarter of 2021, showing a negative year on-year growth of 12.0 percent, from 84.6 registered during the first quarter of 2020.

The main contributor to the decline in mining production came from the Diamonds sector, which contributed negative 11.7 percentage points. Soda Ash was the only positive contributor in the mining production, contributing 0.1 of a percentage point. However Soda Ash’s contribution was insignificant to offset the negative contribution made by Diamonds.

The quarter-on-quarter analysis by Statistics Botswana experts shows an increase of 16.3 percent from the index of 64.0 during the fourth quarter of 2020 to 74.4 observed during the period under review.

Diamond production decreased by 12.1 percent during the first quarter of 2021 compared to the same quarter of the previous year. The decrease was as a result of planned strategy to align production with weaker trading conditions mostly linked to Covid-19 protocols restrictions.

Botswana’s diamond sector is underpinned by Debswana, the country’s flagship rough producer- a 50-50 joint venture between government and global mining giant De Beers Group. The other producer is Canadian based Lucara Diamond Corp through its wholly owned Karowe Mine which is a relatively small but significant production that has made a name for itself worldwide with rare diamond recoveries of unprecedented carat size.

On the other hand, quarter-on quarter analysis shows that production has improved, registering a positive growth of 17.5 percent during the first quarter of 2021 compared to the preceding quarter – 2020 Q4.

Though production was significantly lower in the first quarter, the two producers ended Q2 with rare diamond recoveries. Debswana early last month found the world’s third largest gem diamond – weighing 1098 carat at Jwaneng Mine, its flagship gem quality diamonds producer, also regarded the world’s richest diamond mine.

A week later Lucara  announced its second biggest recovery, the 1174 carat clivage near-gem dug from its Karowe Mine. The diamond is the world third in carat size after the plus-3000 carat Cullinan found in South Africa back in 1905 and the 1758 carat Sewelo unearthed at its Karowe mine in 2019. Debswana and Lucara are investing billions of pulas in underground mining projects to extend the life of its mines, Jwaneng & Karowe respectively.

In terms of Gold which is produced at Mupani mine near Botswana’s second city of Francistown output decreased by 17.9 percent during the first quarter of 2021 compared to the same quarter of the previous year.

Similarly, quarter-on-quarter analysis reflects that production decreased by 21.4 percent during the first quarter of 2021, compared to the preceding quarter. The decrease was as a result of the deteriorating lifespan of the mine as well as the impact of COVID-19 which slowed down the mining activities.

Soda Ash production increased by 11.1 percent during the first quarter of 2021 compared to the same quarter of the previous year. In terms of quarter-on-quarter Soda Ash production also showed an increase, picking up by 2.1 percent during the period under review. The increase in production is attributable to the effectiveness of the plant following refurbishment which occurred in the third quarter of 2020.

Salt production decreased by 34.0 percent during the first quarter of 2021, compared to the same quarter of the previous year. Similarly, the quarter-on-quarter analysis shows that salt production registered a decrease of 32.9 percent during the period under review. Both salt and Sodash are produced by partly government owned Botswana Ash (BotsAsh) operating from Sowa town near Makgadikgadi pans.

Coal production decreased by 11.2 percent during the first quarter of 2021, compared to the corresponding quarter of the previous year. The decrease was attributed to the reduced demand from Morupule B Power Station following the remedial works being undertaken, as one boiler was in operation during the period under review.

Although production fell, Statistics Botswana says there was no shortfall in supply of coal due to stockpiling. On the other hand, the quarter-on-quarter comparison shows that coal production increased by 20.4 percent compared to the preceding quarter.

Botswana’s flagship coal producer is Morupule Coal Mine; a wholly state owned mining company located in Palapye producing primarily for Botswana Power Corporation (BPC)’s power generation plants Morupule A & B.

The other coal producer is Botswana Stock Exchange listed Minergy which operates a 390 MT Coal Resource mine in Masama near Media in the southwestern edge of the Mmamabula Coalfields.

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Gov’t awards mining licence for Gantsi Copper Mine

14th July 2021
Moagi

Department of Mines in the Ministry of Mineral Resources, Green Technology & Energy Security has awarded mining licence to Tshukudu Metals-a subsidiary of Aussie firm Sandfire Resources ,giving the company a green light to start piecing the ground at its Motheo Copper Project near Gantsi.

Lefoko Moagi, minister in charge of mineral resources in Botswana confirmed to weekendpost on Tuesday. Minister Moagi revealed that “the licence has been approved , but Sandfire Resources as a listed company will report to its shareholders and investors then make an official public statement” he said.

Based on a forecast copper price of US$3.16/lb (reflecting current long-term consensus pricing) the Base Case 3.2Mtpa – Ghantsi copper project is forecast to generate US$664 million (over P7 billion) in pre-tax free cash-flow and US$987 million (over P10 billion) in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), at a forecast all-in sustaining cost of US$1.76/lb over its first 10 years of operations.

In December 2020, the Board of Sandfire Resources approved the commercial development of the Motheo Copper Mine located in the Kalahari Copper Belt in Botswana, marking a key step in its transformation into a global, diversified, and sustainable mining company.

Tshukudu Metals Botswana (Pty) Limited (Tshukudu) a 100% owned subsidiary will be the owner and operator of the Motheo Copper Mine which is scheduled to produce up to 30,000 tonnes per annum of copper in concentrate over a 12 year mine life.TMB is targeting development of its Motheo Copper Mine in 2021 and 2022, with its first production in 2023.

GOVERNMENT NOT TAKING UP 15 % STAKE ON OFFER

Beginning of this year presentations were made to the Department of Mines as part of the Mining Licence approval process and to the Ghanzi Regional Council, additional information was requested by Department of Mines in April and was duly supplied by the company.

As part of the Mining Licence approval process, the Government of Botswana has a right to acquire up to a 15% fully contributing interest in all mining projects locally. Quizzed on whether government through Mineral Development Corporation Botswana (MDCB) would be taking up stake in the project Minister Moagi said, “No consideration is being made on that regard”.

“Government is not considering taking up a stake in the Ghantsi Copper Mine project, every opportunity is assessed on all risks, but Government makes money all the while from leases, taxes and royalties, remember if you take stake you are liable for liabilities of the project as well,” Moagi said.

MINING CONTRACT

Last month Sandfire announced that it has awarded over P5 billion worth mining contract to African Mining Services (AMS), a subsidiary of Perenti, to deliver the open cast operation.

The contract, which has an estimated value of US$496 million (over 5 billion), is the largest single operational contract for the new Motheo Project covering a period of 7 years and 3 months, with provision for a one-year extension.

The contract according to Sandfire Resources was awarded following a competitive 3-stage tender process which saw a number of key factors taken into consideration when selecting the preferred contractor.

These included Citizen Economic Empowerment, safety culture, equipment suitability and availability, commercial terms and identified improvement opportunities. Under the terms of the contract, AMS has agreed to form a 70:30 Joint Venture with a suitable local Botswana partner or partners.

The JV is expected to be finalized ahead of commencement of mining in early 2022. African Mining Services has been operating in Africa for over 30 years. AMS’ parent company, ASX listed diversified mining services group Perenti, already has a presence in Botswana through Barminco, their underground mining division, at the large-scale Khoemacau Copper Mine located 200km north-east of Motheo.

Last month Sandfire executives said the award of the open pit mining contract represents another key milestone in advancing the Motheo Project towards production, with all components of the contract in line with the key parameters outlined in the December 2020 Definitive Feasibility Study (DFS).

The company said full-scale construction of the US$279 million (over P 3 billion ) mine development is expected to commence immediately upon receipt of the Mining Licence, with mining scheduled to commence in early 2022 ahead of first production in early 2023. This week Sandfire Resources advertised over 10 positions in calling on applications from geologists, mining engineers and geotechnical engineers.

The Motheo mine has an initial mine life of 12.5 years based on production from the T3 pit. The initial development is expected to generate approximately 1,000 jobs during the construction phase and 600 direct full-time jobs during operations, with at least 95% of the total mine workforce expected to be made of up of Botswana citizens.

Later in the week Sandfire Resources announced in the company website that it has received the licence. Sandfire’s Managing Director and CEO, Mr Karl Simich, said the award of the Mining Licence represented a major milestone that would see a significant increase in construction and development activities on site.

“We are absolutely delighted to now be in a position to move to full-scale construction at Motheo, with our construction crews expected to mobilise to site over the next few days. I would like to thank the Government of Botswana for their support throughout the approvals process, which will see Motheo come on-stream in 2023 as one of very few new copper mines commencing production globally.”

Simich said the project is expected to generate approximately 1,000 jobs during construction and 600 full-time jobs during operations, and represents the foundation for Sandfire’s long-term growth plans in Botswana.

“Our vision is that Motheo will form the centre of a new, long-life copper production hub in in the central portion of the world-class Kalahari Copper Belt, where we hold an extensive ground-holding spanning Botswana and Namibia,” he said.

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