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COVID-19 defers Turnstar 2020 global expansion plans

Botswana Stock Exchange (BSE) listed property group, Turnstar Holdings Limited will in the year 2020 focus on domestic growth plans as opposed to further global expansion aspirations which were initially planned for the year.

In their abridged audited Group financial results for the year ended January 2020, Turnstar Managing Director, G H Abdoola said COVID19 will affect lives and businesses in every form until it is brought under control.

“My mission for 2020 was to make Turnstar the largest and most profitable property company on the Botswana Stock Exchange. We have done a lot of work on our growth strategy in the countries we operate in, and identified new opportunities in other countries.”

Abdoola says Coronavirus has brought with it, lessons that will change the way of thinking permanently. He said, “The crisis must not make us panic and helpless. It must make us strong and focused. Each business needs to do the best it can in these circumstances, and rise to the challenge.”

He explained that Turnstar wil continue to strive to achieve its goal of being the largest listed Property Company, by the end of 2020.  “We had plans with regards to growth in Botswana, Tanzania, Dubai & Europe, specifically Portugal. At present, this year, we will focus on Botswana until the Corona Virus pandemic has been brought under control,” he said.

Abdoola added, “Only then can we make informed decisions on our future plans. I will keep updating the public and our partners about our plans.” According to the Turnstar Managing Director, unprecedented times such as these require Companies to plan to stay resilient and strong. He revealed that there are various approaches and instruments available to Turnstar management to cushion revenue drop in the business.

The first being “self-help” – what Companies are doing to “help themselves”. The second being restructuring of finances and loans with Banks to suit the revised cash flows. The third being accessing any Government stimulus relief that is being offered.

Abdoola shared that Turnstar is implementing all the self-help steps that are available to keep the Company liquid and strong. The company has paid interim dividend of 9t per linked unit, for the first half of the financial year 31 January 2020.

Turnstar will not pay a final dividend, as has been traditionally done since the inception of the Company. The Managing Director said, “We have prepared cash flow projections based on best case and worst case scenarios, and we are very comfortable that the Group has the financial strength to survive even the worst case scenario.”

He however added that the situation will require management to be prudent and retain cash within the Company, to tide over these difficult times, when trading conditions are almost impossible to forecast.

Abdoola explained that the Company is looking into all areas to try and save costs wherever possible noting that Management will waive their bonuses in the current financial year.

For the financial year ended January 2020, Turnstar has posted satisfactory results, according to company management. The Botswana rental revenues have increased by P 7.7m (5.5%) whilst operational expenses only increased by 3.3%.

The Group operational expenses have been contained. The vacancies in the Commercial Office space in Dar es Salaam, has affected the Group results. The refurbished conference center performed well during the year.

The retail mall is performing to its optimum capacity. The Dubai property continues to perform well. Turnstar is continuously seeking opportunities to expand its property portfolio. Due to the vacancies in the Commercial Office space, Mlimani Holdings has reported a Fair Value loss for the year.

“It should be noted that Fair Values are calculated on current rentals, projected into the future on a discounted cash flow basis. It does not reflect the actual cost of the buildings, and may change from year to year, depending on occupancy levels” explained Turnstar Boss.

The Botswana properties recorded Fair Value Gains. However, due to the Mlimani fair value loss, the Group recorded an overall fair value loss for the year.

Business

Food prices continue to rise, but at a slower rate

28th November 2022

Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.

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Still doing business the old way?

18th November 2022

It’s time to get business done better with MTN Business Botswana’s ICT Solutions.

Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.

More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.

Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.

A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.

Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
MTN’s evolution

For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.

As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.

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BIE to vitalize the Dignity of Engineers

9th November 2022

Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in  which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.

The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.

Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.

“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.

He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.

Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.

“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.

He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.

He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc

“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran

Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.

“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.

Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that  the BIE provides a fertile environment where they can meet, share ideas and grow professionally.

“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.

He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.

“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams

He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .

Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution  said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.

“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.

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