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The Bihl Group celebrates 45 years of engineering legacies

BIHL Group Chief Executive Officer

The Nation’s leading financial service provider, Botswana Insurance Holdings Limited (BIHL) Group is celebrating 45 years of engineering legacies.

The Group, which has come a long way since selling its very first life policy in 1977, has achieved market-leading growth over the years, offering a diverse range of financial solutions through its three key subsidiaries: Botswana Life Insurance Limited, Botswana Insurance Fund Management Limited (Bifm) and Botswana Insurance Company (BIC).

The BIHL Group Chief Executive Officer, Catherine Lesetedi, said: “Our 45th anniversary is an incredible milestone for us and we are incredibly excited. This momentous achievement is demonstrative of our heritage as the Group, our Subsidiaries and Associates as well as our legacy of excellence over the years.

We are honoured and proud to have such talented employees who have served the company with unwavering dedication as well as the partnerships we have established with various organizations throughout our history. Although our sapphire jubilee unfolds against the backdrop of the COVID-19 pandemic with heightened uncertainty in the market and the global community at large, this period made our responsibility and importance as the Nation’s leading financial services provider even clearer.

Our services are essential to people’s lives and it is during times like these that our purpose matters a lot to the people and communities we serve. As the Group, we remain committed to supporting the people of this Nation and weathering every season together in solidarity.”

Over the years, the Group has built a tradition of excellence with each of the Subsidiaries succeeding as leaders in their own markets. Leveraging its Strength in Numbers, the Group has grown to expand its footprint across the Southern African region through its Subsidiaries and Associate companies: Letshego Holdings Limited, Funeral Services Group (FSG) and Nico Holdings Limited.

Said the Group CEO, “We firmly believe in our Strength in Numbers. Where we all deliver on excellence, the mark is greater, and the impact bigger as we have witnessed over the years. As we add another year to our rich heritage, we believe that there has never been a more fitting time to tell the story of the bull.

Every bull was once a calf and this year’s 45th anniversary will be anchored on reflecting on our journey from where we started, what we have achieved, and what our plans are for the future. Our success is a result of the people of Botswana who believed in us and supported the success of the business over the past years and we hope to celebrate this momentous occasion together.”

Established in 1975, the BIHL Group is one of the largest companies listed on the Botswana Stock Exchange.

Currently headquartered in Gaborone, Botswana, the Group has over 400 staff, 800 financial advisors and 9 branches Nationwide. The organization has been a major key player in the local private sector and a major contributor to the local economy.

Through its Corporate Social Investment (CSI) arm, the BIHL Trust, the Group has remained dedicated in its efforts to make a meaningful impact in the communities in which it operates through the empowerment and support of various initiatives, projects and contributions over the years.

The Group CEO said: “As our current reality stands, COVID-19 has caused so much uncertainty in the world with the loss of many lives and businesses facing great difficulties during this time. Reaching this milestone given the circumstances, is a true testament of our resilience and robustness as a business. More importantly, this has also demonstrated the belief and support of the people who have entrusted us with their legacies, which makes us all the more appreciative.

Throughout our history, we have seen and mastered many challenging moments and we are convinced that we will overcome this pandemic too. Despite the challenges the world has imposed upon us, nothing can keep our hearts apart. Nothing can break our spirit, just as nothing has for decades yet. We are united in heart and harmony, in passion and resilience. We are, in every way, 45 years stronger together.”

The Group reaffirmed its commitment to delivering sustainable growth and profitability for all of its stakeholders as well as to continuing its legacy of excellence in service for the people of Botswana and the Nation as a whole.

Concluded Lesetedi, “Our success as the BIHL Group is no flash in the pan. We have been serving generations of Batswana and engineering the legacies of our people for 45 years and we will continue to be a trusted partner for the people of Botswana in the future. Our journey to serve as the Group is only beginning – for excellence is not a destination it is a continuous journey that never ends. Thus, we owe it to ourselves and to our posterity to keep on excelling, delivering shared value for all our stakeholders and continuing the African story of success.”

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P230 million Phikwe revival project kicks off

19th October 2020
industrial hub

Marcian Concepts have been contracted by Selibe Phikwe Economic Unit (SPEDU) in a P230 million project to raise the town from its ghost status.  The project is in the design and building phase of building an industrial hub for Phikwe; putting together an infrastructure in Bolelanoto and Senwelo industrial sites.

This project comes as a life-raft for Selibe Phikwe, a town which was turned into a ghost town when the area’s economic mainstay, BCL mine, closed four years ago.  In that catastrophe, 5000 people lost their livelihoods as the town’s life sunk into a gloomy horizon. Businesses were closed and some migrated to better places as industrial places and malls became almost empty.

However, SPEDU has now started plans to breathe life into the town. Information reaching this publication is that Marcian Concepts is now on the ground at Bolelanoto and Senwelo and works have commenced.  Marcian as a contractor already promises to hire Phikwe locals only, even subcontract only companies from the area as a way to empower the place’s economy.

The procurement method for the tender is Open Domestic bidding which means Joint Ventures with foreign companies is not allowed. According to Marcian Concepts General Manager, Andre Strydom, in an interview with this publication, the project will come with 150 to 200 jobs. The project is expected to take 15 months at a tune of P230 531 402. 76. Marcian will put together construction of roadworks, storm-water drains, water reticulation, street lighting and telecommunication infrastructure. This tender was flouted last year August, but was awarded in June this year. This project is seen as the beginning of Phikwe’s revival and investors will be targeted to the area after the town has worn the ghost city status for almost half a decade.

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IMF projects deeper recession for 2020, slow recovery for 2021

19th October 2020

The International Monetary Fund (IMF) has slashed its outlook the world economy projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.

On Wednesday when delivering its World Economic Outlook report titled “A long difficult Ascent” the Washington Based global lender said it now expects global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April.  For 2021, IMF experts have projected growth of 5.4%, down from 5.8%. “We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast,” said Gita Gopinath Economic Counsellor and Director of Research.

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Botswana partly closed economy a further blow of 4.2 fall in revenue

19th October 2020

The struggle of humanity is now how to dribble past the ‘Great Pandemic’ in order to salvage a lean economic score. Botswana is already working on dwindling fiscal accounts, budget deficit, threatened foreign reserves and the GDP data that is screaming recession.

Latest data by think tank and renowned rating agency, Moody’s Investor Service, is that Botswana’s fiscal status is on the red and it is mostly because of its mineral-dependency garment and tourism-related taxation. Botswana decided to close borders as one of the containment measures of Covid-19; trade and travellers have been locked out of the country. Moody’s also acknowledges that closing borders by countries like Botswana results in the collapse of tourism which will also indirectly weigh on revenue through lower import duties, VAT receipts and other taxes.

Latest economic data shows that Gross Domestic Product (GDP) for the second quarter of 2020 with a decrease of 27 percent. One of the factors that led to contraction of the local economy is the suspension of air travel occasioned by COVID-19 containment measures impacted on the number of tourists entering through the country’s borders and hence affecting the output of the hotels and restaurants industry. This will also be weighed down by, according to Moody’s, emerging markets which will see government losing average revenue worth 2.1 percentage points (pps) of GDP in 2020, exceeding the 1.0 pps loss in advanced economies (AEs).

“Fiscal revenue in emerging markets is particularly vulnerable to this current crisis because of concentrated revenue structures and less sophisticated tax administrations than those in AEs. Oil exporters will see the largest falls but revenue volatility is a common feature of their credit profiles historically,” says Moody’s. The domino effects of containment measures could be seen cracking all sectors of the local economy as taxes from outside were locked out by the closure of borders hence dwindling tax revenue.

Moody’s has placed Botswana among oil importers, small, tourism-reliant economies which will see the largest fall in revenue. Botswana is in the top 10 of that pecking order where Moody’s pointed out recently that other resource-rich countries like Botswana (A2 negative) will also face a large drop in fiscal revenue.

This situation of countries’ revenue on the red is going to stay stubborn for a long run. Moody’s predicts that the spending pressures faced by governments across the globe are unlikely to ease in the short term, particularly because this crisis has emphasized the social role governments perform in areas like healthcare and labour markets.

For countries like Botswana, these spending pressures are generally exacerbated by a range of other factors like a higher interest burden, infrastructure deficiencies, weaker broader public sector, higher subsidies, lower incomes and more precarious employment. As a result, most of the burden for any fiscal consolidation is likely to fall on the revenue side, says Moody’s.

Moody’s then moves to the revenue spin of taxation. The rating agency looked at the likelihood and probability of sovereigns to raise up revenue by increasing tax to offset what was lost in mineral revenue and tourism-related tax revenue. Moody’s said the capacity to raise tax revenue distinguishes governments from other debt issuers.  “In theory, governments can change a given tax system as they wish, subject to the relevant legislative process and within the constraints of international law. In practice, however, there are material constraints,” says Moody’s.

‘‘The coronavirus crisis will lead to long-lasting revenue losses for emerging market sovereigns because their ability to implement and enforce effective revenue-raising measures in response will be an important credit driver over the next few years because of their sizeable spending pressures and the subdued recovery in the global economy we expect next year.’’

According to Moody’s, together with a rise in stimulus and healthcare spending related to the crisis, the think tank expects this drop in revenue will trigger a sizeable fiscal deterioration across emerging market sovereigns. Most countries, including Botswana, are under pressure of widening their tax bases, Moody’s says that this will be challenging. “Even if governments reversed or do not extend tax-easing measures implemented in 2020 to support the economy through the coronavirus shock, which would be politically challenging, this would only provide a modest boost to revenue, especially as these measures were relatively modest in most emerging markets,” says Moody’s.

Botswana has been seen internationally as a ‘tax ease’ country and its taxes are seen as lower when compared to its regional counterparts. This country’s name has also been mentioned in various international investigative journalism tax evasion reports. In recent years there was a division of opinions over whether this country can stretch its tax base. But like other sovereigns who have tried but struggled to increase or even maintain their tax intake before the crisis, Botswana will face additional challenges, according to Moody’s.

“Additional measures to reduce tax evasion and cutting tax expenditure should support the recovery in government revenue, albeit from low levels,” advised Moody’s. Botswana’s tax revenue to the percentage of the GDP was 27 percent in 2008, dropped to 23 percent in 2010 to 23 percent before rising to 27 percent again in 2012. In years 2013 and 2014 the percentage went to 25 percent before it took a slip to decline in respective years of 2015 up to now where it is at 19.8 percent.

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