Shumba gets nod for 100 MW solar project ?
Shumba Energy , a Botswana Stock Exchange listed exploration and energy development company has been given a Ďígo aheadíí in its ambition of building a multi Ė million pula solar plant in Tati, near the second capital city of Francistown.
In a statement this week, the company notified its shareholders and investors that it has received the Environmental Authorization for the Tati Solar Project from the Department of Environmental Affairs (DEA) in Francistown.† Shumba Energy owns a world class 100 MW solar project near the city of Francistown and is currently in the late stage of developing Phase 1, a 50 MW Solar farm on a project site of 300 hectares.
The Project is part of a two-phase program to develop the full 100 MW solar capacity of the site as a key strategic initiative in the region. Commenting on the approval Mashale Phumaphi Chief Executive Officer of Shumba Energy said his company Ďwas very pleased to have received the Environmental AuthorisationĒ.
ďThis will allow us to fast track the Tati Solar Project into operation. Given the trying times that our country finds itself in we are keen to do our part to contribute to the economy in a manner that is environmentally friendly, sustainable and contributes to alleviating the regionís severe energy deficit,Ē Phumaphi said.
This week Shumba also moved to issue new shares following authority granted to by its shareholders through special resolution passed at the Companyís 2020 Annual General Meeting.† Shumba directors confirmed that 269,995 new ordinary shares would be issued in settlement of short term obligations of BWP244, 281 due to institutional shareholders.
Following the approval by Botswana Stock Exchange shares were admitted and listed from Monday 15 February 2021. Following admission, the Company’s enlarged share capital will comprise 293,065,088 ordinary shares. Shumba Energy Ltd is an energy development company based in Botswana and listed on the Botswana Stock Exchange.
The Company offers the advantage of being based in a country with the best credit rating in sub-Saharan Africa with a stable fiscal and political setting. Established in 2011, the company is reaching its development objectives and now controls a significant portion of advanced energy projects in Botswana.† Shumba is developing a portfolio of Projects servicing energy poor Southern Africa with emphasis on those with the least energy access.
Within its portfolio is the Poortjie wes wind and solar projects in South Africa. Shumba is developing a combination of solar and wind farms which combined will produce 500MW of renewable energy in the Western Cape province of South Africa.† The project is advanced with approximately 3,000 hectares of land secured, civil Aviation Authority Approval in place, over 5 years of wind data and preliminary environmental studies completed.
The Project will take part in South Africa’s REIPPP bid window 6 in Q1 2022 and can also supply power directly to industrial users in South Africa. Botswana has been noted as one of the countries with massive potential to becoming Africaí model industrial hub when it comes to solar energy. He said while Botswana, Namibia and other African countries with abundant sunlight are crying and complaining of too much heat other countries admire the natural resources.
According to experts Botswana could develop a multimillion dollar industry out of solar energy, massive industrialization in terms of manufacturing solar charging chips, assembling of power storing batteries, endless opportunities†and huge potential in creating jobs for young people.
Green energy champions submits that Botswana can easily achieve 100 percent domestic electrification, export power to other countries† at the same time going green and† reducing the environmental negative impacts that comes with coal based power generation.
ďA vibrant solar power sector can fuel other sectors of the economy; you could easy power your commercial ambitions in the Agricultural sector and actually† produce food for yourself as a country and reduce the import bill,Ē said PLO Lumumba, Kenyan Lawyer and Pan Africanist in one of his visits to Botswana in 2019.
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Grit divests from Letlole La Rona
Grit Services Limited, a member of the pan African real estate group, London Stock Exchange listed Grit Real Estate Income Group is divesting from Letlole La Rona Limited (LLR), a local real estate company established by government investment arm Botswana Development Corporation over a decade ago.
The Board of Directors of Letlole La Rona Limited this week announced in a statement to Unitholders that Grit Services Limited (‚ÄėGrit‚Äô) has informed them of its intention to exit its investment in the company.
Grit has been a material shareholder in LLR since 2019. On 07 March 2023, Grit sold 6 421 000 linked units, representing 2.29% of the Company‚Äôs total securities in issue, at a market value of BWP 22 537 710.
This trade follows previous sales of 6.79% in December 2022, as communicated to Unitholders on 10 January 2023, as well as a further sale of 4.78% (representing 13 347 068 linked units) on 24 February 2023 to various shareholders.
In aggregate, Grit has sold 13.9% shareholding in the Letlole La Rona between December 2022 and March 2023, resulting in current shareholding of 11.25% in the Company.
Letlole La Rona said in the statement that the exit process will take place in an orderly manner so as to maintain stability of the Company‚Äôs share price.
The statement explained that Grit‚Äôs sale of its entire shareholding in LLR is in line with its decision to exit investments where it does not have majority control, or where it has significant exposure to currencies other than US dollar, Euro or hard-currency-pegged revenue streams.
‚ÄúGrit has announced similar decisions pertaining to certain of its hospitality assets in Mauritius recently. The Company would like to advise Unitholders that it remains focused on long-term value delivery to all stakeholders‚ÄĚ LLR said
In July last year as part of their Go-to-Africa strategy Letlole La Rona acquired an initial 30% equity stake in Orbit Africa Logistics, with an option to increase this investment to 50%. OAL is a special purpose vehicle incorporated in Mauritius, owning an industrial asset in a prime industrial node in Nairobi, Kenya.
The co-investment was done alongside a wholly owned subsidiary of London listed Grit. The Orbit facility is situated on a prime industrial site on Mombasa Road, the principal route south of Nairobi center, serving the main industrial node, the port of Mombasa and the industrial town of Athi River and is strategically located 11 kilometers south of the international airport and 9.6 kilometers from the Inland Container Depot.
Grit shareholding in Letlole La Rona was seen as strategic for LLR, for the company to leverage on Grit‚Äôs already existing continental presence and expand its wings beyond Botswana borders as already delivered by Kenya transaction.
Media reports have however suggested that LLR and Grit have since late last year had fundamental disagreements on how to go about the Go-to-Africa strategy amongst other things, fuelled by alleged Botswana government interference on the affairs of LLR.
Government through LLR founding shareholder – Botswana Development Corporation has a controlling stake of around 40 percent in the company. Government is the sole shareholder of Botswana Development Corporation.
Letlole La Rona recently released their financial results for the six months ended December 2022, revenue increased by 4% to P50.2 million from P48.4 million in the prior comparative six months, whilst operating profit was up 8% to P36.5 million. Profit before tax of P49.7 million was reported, an increase of 8% on the prior comparative six months.
‚ÄúWe are encouraged by the strong results, notwithstanding a challenging economic environment. Our performance was mainly underpinned by annual lease escalations, our quality tenant base and below average market vacancy levels, especially in our warehouse portfolio,‚ÄĚ Kamogelo Mowaneng, Letlole La Rona Chief Executive Officer commented.
LLR reported a weighted average lease expiry period of 3.3 years and escalation rates averaging 6.8% per annum for the period ended 31 December 2022.Its investment portfolio value increased by 14% year-on-year to close the period at P1.4 billion, mainly driven by the acquisition of a 30% stake in OAL in July 2022.
The Company also recorded a significant increase in other income, predominantly due to foreign exchange gains on the OAL shareholder loan. ‚ÄúWe continue to explore pipeline opportunities locally, and regionally in line with our Go-to-Africa strategy and our interest remains on value-accretive investments,‚ÄĚ Mowaneng said.
An interim distribution of 9.11 thebe per linked unit was declared on the 6th of February 2023 for the half-year period to 31 December 2022, comprising of a dividend of 0.05 thebe and debenture interest of 9.06 thebe per linked unit which will be paid to linked unit holders registered in the books of the Company at the close of business on 24 February 2023.
Stargems Group establishes Training Center in BW
Internationally-acclaimed diamond manufacturing company StarGems Group has established the Stargems Diamond Training Center which will be providing specialized training in diamond manufacturing and evaluation.
The Stargems Diamond Training Institute is located at the Stargems Group Botswana Unit in Gaborone.
‚ÄúIn accordance with the National Human Resource Development Strategy (NHRDS) which holds the principle that through education and skills development as well as the strategic alignment between national ambitions and individual capabilities, Botswana will become a prosperous, productive and innovative nation due to the quality and efficacy of its citizenry. The Training Centre will provide a range of modules in theory and in practice; from rough diamond evaluation to diamond grading and polishing for Batswana, at no cost for eight weeks. The internationally- recognized certificate offered in partnership with Harry Oppenheimer Diamond Training School presents invaluable opportunities for Batswana to access in the diamond industry locally and internationally. The initiative is an extension of our Corporate Social Investment to the community in which we operate,‚ÄĚ said Vishal Shah, Stargems Group Managing Director, during the launch of the Stargems Diamond Training Center.
In order to participate in this rare opportunity, interested candidates are invited to submit a police clearance certificate and a BGCSE certificate only to the Stargems offices.¬† Students who excel in these programs will have the chance to be onboarded by the Stargems Group. This serves as motivation for them to go through this training with a high level of seriousness.
‚ÄúCommunity empowerment is one of our CSR principles. We believe that businesses can only thrive when their communities are well taken of. We are hoping that our presence will be impactful to various communities and economies. In the six countries that we are operating in, we have contributed through dedicating 10% of our revenues during COVID-19 to facilitate education, donating to hospitals and also to NGOs committed to supporting women and children living with HIV. One key issue that we are targeting in Botswana is the rate of unemployment amongst the youth. We are looking forward to working closely with the government and other relevant authorities to curb unemployment,‚ÄĚ said Shah.
Currently, Stargems Group has employed 117 Batswana and they are looking forward to growing the numbers to 500 as the company grows. Majority of the employees will be graduates from the Stargems Diamond Training Center. This initiation has been received with open arms by the general public and stakeholders. During the launch, the Minister of Minerals and Energy, ¬†Honorable Lefoko Moagi, stated that the ministry fully endorses Stargems Diamond Training and will work closely with the Group to support and grow the initiative.
‚ÄúAs a ministry, we see this as an game changer that is aligned with one of the United Nations’ Six Priority Sustainable Development Goals, which is to Advance Opportunity and Impact for Diversity, Equity, and Inclusion (DEI). What Stargems Group is launching today will have a huge impact on the creation of employment in Botswana. An economy‚Äôs productivity rises as the number of educated workers increases as its skilled workmanship increases. It is not a secret that low skills perpetuate poverty and widen the inequality gap, therefore the development of skills has the potential to contribute significantly to structural transformation and economic growth by enhancing employability and helping the country become more competitive. We are grateful to see the emergence of industry players such as Stargems Group who have strived to create such opportunities that mitigate the negative effects of COVID-19 on the economy,‚ÄĚ said the Minister of Minerals and Energy.
Food import bill slightly declines
The latest figures released by Statistics Botswana this week shows that food import bill for Botswana slightly declined from around P1.1 billion in November 2022 to around P981 million in December during the same year.
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