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“We need to shape businesses for a future after COVID-19” – Stanbic Bank Botswana

Stanbic Bank Botswana has hosted key clients of the Bank’s Corporate & Investment Banking (CIB) arm for a series of sector-focused webinars, themed “Economic Updates.” The purpose of the series is to provide timely insights for executives within the Bank on the COVID-19 pandemic and its impact on the economy and business operations, with Stanbic Bank committed to supporting clients through this time to enable them to shape their business post COVID-19, across sectors.

There are critical sectors that have been impacted more severely than others like the Tourism & Hospitality sector, Real Estate sector, Mining and the Luxury or non-essential component of consumers, for example Diamonds.  In the same vein, there are sectors that are well positioned for growth for example Healthcare, Innovation & technology, Agri-processing and Infrastructure sectors.

Said Sheperd Aisam, Head of Corporate & Investment Banking (CIB) at Stanbic Bank Botswana, “Focusing on attracting capital to the rapid development of AfCFTA goals in Botswana and onto the continent will create a more resilient marketplace in Africa and make us able to better withstand future pandemics.”

According to the most recent information of an expected 8.5% GDP decline in Botswana where most sectors will be affected and as a consequence jobs may also be at risk. There is no better time for us to focus on the silver linings and come together to address these challenges in a unified way.

This year the government has many positive initiatives in various sectors set up to stimulate the economy and to give us much needed hope such as the BECI initiative; the recently launched CEDA initiative; the incremental component of local currency bond and T-Bills to fund the budget deficits of which we are excited about.

As a Bank we have initiatives for alignment with strategic country goals and supporting our personal, Commercial and Corporate Banking clients which are available to our client base.   Amongst the key aspects businesses need to ensure for continued survival are a focus on strengthening our supply chains, leading on digital client interactions and regional collaboration particularly on manufacturing, it was shared.

This is very much in line with the notion of ‘survival of the quickest” and will no doubt be about how quickly businesses can adopt and adapt to the times so that they can take benefit of some of the new opportunities now out there.

According to Mulalo Madula, an Economist for Africa Region Fixed Income and Currency Research at Standard Bank Group, the IMF projects the global economy to shrink by 3% and G10 strategists see it shrinking by 2%, with China growing by 6%. Developing economies are likely to contract by roughly between 2% and 4%, she notes.

“We expect that many countries in Europe will struggle with huge debt post COVID-19. We tend to think Botswana is in a better situation as we do not look externally for financial relief. In Botswana or Africa as a whole, because we do not exist in a vacuum, we would have been affected even if we had zero infected cases as we are all connected
economically.”

Concluded Aisam, “For Botswana businesses we are here to support you, we have access to 20 direct African markets through our on the ground presence in these jurisdictions. We have learnt and are still learning and happy to share with you our deepest of insights. There is an African story of growth that beckons us and our time is now.”

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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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