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Molefe stays as BBS chief until D-Day

Botswana Building Society (BBS) Managing Director, Pius Molefe once again emerged victorious against Board of Directors led by Pelani Siwawa-Ndai — maintaining his reputation as unrivalled corporate war expert.

After a bout of high drama, BBS shareholders will converge on the 30th of April, to not only elect a new board but to reflect on a matter that has dented the reputation of the entity which is on its way to transform into a commercial bank. By the time shareholders disperse at the conclusion of their business, Molefe’s fate would have been sealed.

The boardroom brawl started after Molefe, in his capacity as MD of the company, objected a board decision to extend its stay by 90 days when its tenure expires on April 26. Acting under the instruction of his boss, Sipho Showa — who is also board secretary and Head of Communications — wrote a circular of the agenda for the AGM which is schedule for April 30th 2021, where shareholders are expected to vote for the new board secretary.

Following Molefe’s refusal to adopt the resolution, which the board took by extending its tenure, Pelani Siwawa-Ndai in her capacity as Chairperson wrote letters of dismissal to both Molefe and Showa for defiance. After realising that the duo of Molefe and Showa failed to obey the board resolution after they reported for duty while they were expelled, Siwawa-Ndai together with other board members approached the High Court on urgent interdict.

When delivering the interdict order, Justice Tau restrained Molefe and Showa from conducting any business or transactions on behalf of BBS Limited and all the decisions purportedly taken by either or both on behalf of the bank post-dismissal on 05 April 2021 be set aside.

Justice Tau barred the duo (Molefe and Showa) from issuing or publishing any statements on behalf of the aspiring commercial bank (BBS Limited) to its creditors, regulators, supervisors, professional bodies, stakeholders including its employees and shareholders and the general public at large.

The High Court Judge also ordered the duo to return any or all property of BBS Limited in their possession within two days after the interdict order has been handed down. The drama caught the eye of the Ministry of Finance and Economic Development, as the Permanent Secretary, Dr Wilfred Mandlebe, released a press statement indicating that they are aware of the recent developments concerning corporate governance at BBS Limited also stating that they are closely monitoring the situation together with the central bank (Bank of Botswana).

Mandlebe further said Bank of Botswana (BoB) whose mandate is to promote the safety and soundness of the banking system has put in place mechanisms to monitor developments as well as institute commensurate response which may be necessary.  The conflict between the Board of Directors and management reached a point where Botswana Stock Exchange (BSE) briefly suspended BBS Limited from trading its securities. Thapelo Tsheole who is BSE CEO said the halting of shares of BBSL was to maintain a fair, efficient and orderly securities trading environment.

“The securities have been suspended to allow BBS to provide clarity to the market concerning the recent allegations which have been brought to the attention of the BSE relating to the company’s Board of Directors and senior management,” noted Tsheole.

This week the board of directors’ victory was short lived as on Monday, Molefe together with Showa emerged victorious after the Lobatse High Court Judge passed a judgment noting that their dismissals was invalid hence it has been nullified as the board meeting breached the company’s constitution.

BBS constitution which requires that a notice of at least seven (7) days to be given to board members when a meeting is convened and it should also state the agenda of the meeting. “The resolution that was taken at that meeting was also invalid. As the reason to terminate the contracts of the employees stem from an invalid resolution it is automatically null and void. Therefore there is no need for court to set it aside,” Judge Tau said.

“The conclusion I have come to is that the purported meeting of the board of directors was in breach of the applicant’s constitutional rights as per the company’s constitution. It was therefore a nullity and could not have legal consequences.”

In a statement released by Molefe to shareholders after Judge Tau reinstated the duo, BBS MD said his intention following the High Court order was to reach out to his fellow board members requesting for calm minds and emotions to prevail leading to the AGM slated for Friday 30th April.

“Unfortunately, I was disappointed when I received a draft document from the Chairperson of the Board Mrs Pelani Siwawa-Ndai just before 12noon via WhatsApp to the effect that she and my other colleagues would be approving a resolution by round-robin to dismiss me and the Company Secretary from office again without giving us a hearing as stipulated in the BBS Limited Conditions of Service,” he narrated in a statement.

Molefe said he proceeded to the industrial court in his capacity as the MD where he managed to secure an interim order barring fellow directors from executing their plan which was to fire him.
According to the order issued by the Industrial Court, the matter was treated as urgent.

When delivering the ruling through virtual platforms, Industrial Court Judge Annah Mathiba interdicted and restrained the BBS board from terminating Molefe and Showa’s contracts of employment by passing a resolution in terms of clause 80 of the constitution without a hearing or from giving effect to any resolution terminating the applicants’ contract of employment without a hearing.

Meanwhile, Molefe said he is still keen on finding a way of reaching out to fellow board members so that they can all act in the best interests of BBSL Limited even though five (5) of them are left with a few days before the end of their term.


Yesterday (Friday), BBS Chairperson Siwawa-Ndai moved to suspend Molefe and Showa from their duties as Managing Director of BBSL and Head of Marketing, Communication and Company Secretary pending finalisation of litigation brought against the Company by Molefe and Showa.

Siwawa-Ndai indicated that, according to Article 53 of the BBSL of the Constitution, the BBSL Board Charter and the King Code on Governance Principles, the company has a clear process by which the entire Board, on behalf of shareholders, may nominate prospective directors for approval by the shareholders at a general meeting.

“Stakeholders are advised that the Board did not approve or vet the nominee directors, as required by the BBSL Board Charter/King III, and has thus far failed to receive satisfactory answers from Messrs Molefe and Showa as to how these names had been included in the Notice, which Notice had been published without the Company’s approval,” reads update to Shareholders from signed by Siwawa-Ndai.

As such for the shareholder is required to propose names to the Board and not management, for the Board to make a recommendation to the shareholders at an AGM; such names or proposals should be made to the Board not less than 21 working days before the AGM.

In an attempt to rectify the errors, BBS Board chairperson said they have resolved to defer the election of Company directors to a date within 90 days of the AGM in order to allow the Board to collectively conclude the nomination process of the prospective directors.

In response to announcement of alleged suspension, Molefe said resolution passed by the Directors on his suspension together with Showa is unlawful, and that the announcement should be disregarded. “The statement by the Directors should be viewed as pre-AGM campaigning calculated to soil our reputations and to achieve a particular atmosphere ahead of the meeting of Shareholders next week Friday,” said Molefe.

“This matter is before the Industrial Court (“IC”) and I am optimistic that we will prevail yet again. Arguments by both sides on the alleged suspensions are expected to be heard by the IC in the coming week.”


Botswana’s household spending to reach P62.4Bn

14th September 2023

The UK based research entity, Fitch Solutions Group recent forecasts indicate that household spending in Botswana could increase, following the recent decline in inflation.

In the recent statement Bank of Botswana Monetary Policy Committee (MPC) noted that headline inflation decreased significantly from 4.6 percent in June to 1.5 percent in July 2023, breaching the lower bound of the Bank’s medium-term objective range of 3 – 6 percent and added that the fall in inflation was mainly due to the dissipating impact of the earlier increase in domestic fuel prices in the corresponding period in 2022. “Furthermore, inflation fell on account of the downward adjustment in domestic fuel prices effected on June 21, 2023. Inflation is forecast at 1.2 percent for August 2023 and the MPC projects that inflation will remain below the lower bound of the objective range temporarily and revert to within the objective range from the first quarter of 2024 into the medium term.”


In the recent forecasts Fitch Solutions Group noted that easing food and transport costs are expected to support strong demand for goods and services over the second half of 2023 and 2024 and boost consumer spending. “Our outlook for consumer spending in Botswana over 2023 is positive, with downward food and transport price pressures supporting easing inflation over H223 and presenting tailwinds to spending. Over 2024, we believe the Bank of Botswana will begin its rate cutting cycle due to inflation returning to a downward trajectory over Q423 and Q124, driving spending over the year.”

According to the entity household spending is expected to grow by 5.1 percent. “We forecast real total household spending (2010 prices) will grow by 5.1% y-o-y over 2023, an acceleration from 4.8% y-o-y growth in 2022. This will take real total spending up to BWP62.4bn. We project the positive growth trajectory to continue over 2024, with consumer spending growing by 4.4% y-o y.”

Researchers from the entity indicated that inflation in Botswana has begun easing due to declining food and non-alcoholic drinks, as well as transport price pressures. “In June 2023 inflation slowed to 4.6% y-o-y in June 2023, down from 12.7% y-o-y in June 2022. We believe the lagged impact of central bank monetary policy will feed through to downward inflationary pressures over the remainder of H223 and into Q124, presenting tailwinds to spending. Our Country Risk team forecasts inflation to average 6.3% y-o-y over 2023, before ending the period at 4.2% y-o-y. Over 2024, inflation will average 4.1% y-o-y, returning to the central bank’s target rate of 3-6%.”

The researchers stated that 2023/24 national budget shows that around BWP15.0bn (USD1.15bn) will be allocated towards strengthening human capital and skills development in the country, while BWP10.3bn (USD792.3mn) will be allocated for health. “This decreases the need for consumers to pay for these services out of their wages. The effects that increasing level of investment by the government into skills development and improving the health of citizens on the disposable income outlook is threefold. Firstly, the investment decreases the need for consumers to pay for these services out of their wages, and thus boosts the level of disposable income. Secondly, citizens enter the workforce with a higher level of skills and can thus command a higher wage/salary, and thirdly, with improving levels of health and access to health services, workers are able to return to work quicker and overall this improves their wage prospects and the general productivity of the labour force. These factors will provide a boost to the longer-term employment outlook in Botswana.”

Fitch Solutions Group meanwhile noted that unemployment, high interest rates and income inequality is a key risk to the consumer outlook during the second half of 2023 and 2024. “High unemployment, elevated interest rates and persistent income inequality will, however, present downside risks to demand, limiting spending growth.”

The research entity noted that the level of unemployment in Botswana remains high, at 23.8% of the labour force in 2023 and added that this is slightly below the 24.1% average in 2022. “However, despite decreasing from a peak of 24.9% and 24.7% in 2020 and 2021 respectively, unemployment has not returned to the pre-pandemic level of 22.6% in 2019. Weak investments in agriculture and manufacturing will keep employment limited with low economic diversification and high-income inequality exacerbating the risk of social stability.”






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Troubled Minergy terminates mining contractor in turnaround strategy

14th September 2023

Minergy Limited, the Botswana Stock Exchange listed mining company operating Masama Coal Mine in Medie near Lentsweletau, has decided to part ways with mining contractor Jarcon, the company announced on Tuesday.

In a circular to the market Minergy revealed that it has issued a notice to terminate its mining contract with Jarcon Opencast Mining Botswana (Pty) Ltd. In the notice, Minergy Coal will terminate the mining contract in 30 days.

The company, financial backed by state owned Mineral Development Corporation (MDC) and Botswana Development Corporation (BDC), said termination of the mining contract is “in line with the strategic intent of the Board of Directors and the financiers of Minergy, to stabilise operations and bring the business to sustainable profitability”.

During this transition period, arrangements have been made to ensure business continuity and minimal disruption in coal supply to clients, by inter alia using stock holdings available.

The market was further informed that the process of appointing a new mining contractor is at an advanced stage and a final decision will be communicated in due course.

Minergy operates a privately developed coal mine in Medie near Lentsweletau, the company has been facing financial challenges recently leading to operational slow down early this year due to unsettled debt to mining contactor. MDCB later came to the rescue, bailing out the company to ensure business continuity.

According to letters to employees dated 25 August 2023, seen by this publication, Jarcon, Masama’ s mining contractor has warned its employees of possible job cuts as Minergy financial challenges persists, citing reduction in demand for coal and fall in prices for the product.

Last week Minergy announced that Chief Technical Officer at Mineral Development Company Botswana Mr Matthews Bagopi has been seconded to Minergy Coal as interim lead following the resignation of Minergy Chief Executive Officer Mr. Morné du Plessis.

Minergy said du Plessis tendered his resignation to pursue other interests. Mr. du Plessis will however remain available and dedicated to Minergy during his notice period ending 30 November 2023.

Bagopi is tasked with ensuring augmented management capacity at the mine and ensure business continuity.

An alumnus of Camborne School of Mines, Mr. Bagopi is described as a seasoned mining professional with over 30 years of experience in the industry in various mining commodities, starting his career at graduate level and ascending to executive management.

Mr Bagopi has been instrumental and at the leading edge of developing coal markets for Botswana coal at Morupule Coal Mine in the region as well as internationally.

He brings forth a well-established network of strategic partnerships and collaborations in the industry, ranging from operations, technical, commercial and business development, projects development, having paved the path for the development of MCM corporate strategy, before joining the MDCB as Chief Technical Officer, overseeing technical aspects of MDCB’s mining investment.

Masama has capacity to produce 1.5 million tonnes of coal per year and is the smaller of two coal mines currently in operation in Botswana, the other being the state-owned Morupule Coal Mine, with 4.2 million tonne capacity.

Minergy’s latest annual report shows that as of June 2022, the company owed the mining contractor 79 million pula after a debt restructuring exercise. It also owed BDC 125 million pula and MDCB some 295 million pula.

Strong demand, mostly from Europe due to the fallout from Russia’s invasion of Ukraine, drove Minergy’s exports up 53% in the half-year to Dec.31, boosting its earnings and helping it to reduce debt.

However, weakening coal prices and logistical challenges it faces when hauling coal from landlocked Botswana to export markets have impacted Minergy’s earnings.


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How Value-Based Care Can Revitalise HealthCare

14th September 2023

 Dr. Malebogo Kebabonye, Bomaid Chief Clinical Services Officer

The healthcare system is a crucial and yet fragile one, in any scenario we look at it within. The reality we face is an overburdened healthcare system, taking an even greater toll since the COVID-19 pandemic. The pressure gaps and issues we face are now clearer than ever before to see, and the time to act is now. At the same time, as we look at this healthcare crisis, we recognise it is not for Botswana alone to experience, not to solve – this is a global phenomenon we are seeing in many markets. But how are we solving for it? And is the onus on healthcare providers alone?

The concept of value-based healthcare is fast becoming a go-to, and with good reason. However, it is not new. Indeed, it has been around for some time and has been a primary focus for work delivered by, for example, the World Economic Forum (WEF) and even the World Health Organisation (WHO). Value-based care ties the amount health care providers earn for their services to the results they deliver for their patients and aims at promoting quality of care over the quantity of services. There is less focus on frequency of healthcare interventions or doctor visits, and rather, priority is placed on the quality of care and the progress experienced for the customer or patient. Ultimately, this approach improves overall health and wellbeing of the population and has proven effective in such markets as Kenya, the US, the UK, and in the public sector of Botswana.

According to the World Economic Forum, “The widely accepted definition of value in healthcare is the health outcomes that matter to patients relative to the resources or costs required to deliver those outcomes. Value-based healthcare is an approach that aligns industry stakeholders (payers, providers, pharma/MedTech and policymakers) around a shared objective of improving patient health outcomes, providing autonomy and accountability to providers to pursue the best way to deliver healthcare for the money spent. The transition from volume-based to value-based healthcare will inevitably lead to more healthy societies while optimising resources

As Bomaid, we have adopted the Value Based Care approach locally, it is in line with one of our key strategic pillars of improving holistic wellness which is patient centred and anchored in Primary Health Care. It helps better manage healthcare costs which are ultimately borne by customers through annual subscription increases and other out of pocket expenses, recognising that medical providers alone are not the only agents of change in this space – medical aid providers are crucial to supporting the wider ecosystem growth and betterment.

Patient centered care or personalised care, on the other hand, focuses on the individual’s particular healthcare needs. The goal of patient-centered healthcare is to empower patients to become active participants in management of their care. Core to the principles of patient centred care is personalisation and individual accountability towards one’s own health. Value-based healthcare focuses on maximising patient healthcare outcomes and harnessing resources to better deliver on this while reducing inequity in health outcomes and promoting high impact interventions. This is, ultimately, what Bomaid strives to do in working towards delivering, first things first, health, happiness and holistic wellbeing.

So how do we deliver on a value-based healthcare sustainably and meaningfully?

It begins with mindset, yes. But this is swiftly followed by many tangible factors too: the right systems; the right infrastructure; the right resources; The right regulatory environment. It means putting holistic patient wellbeing and health first, as well as removing inefficiencies that would otherwise result in cost burdens on patients, as well as unimproved health outcomes – always being ill, never seeing real recovery.

The WEF further notes, “This high-cost burden can, in part, be the consequence of inefficiencies in the healthcare system, such as fragmented and uncoordinated care delivery, poor data governance, workforce shortages and underinvestment in preventive care. The OECD estimates that up to 20% of healthcare spending across its member countries is unnecessary or ineffective. Accordingly, spending more doesn’t always lead to improved patient outcomes. So, addressing these inefficiencies would help reduce costs and make healthcare more equitable and accessible.”

As we strive for healthier, happier people across the nation, how do we help leverage value-based care to ensure better healthcare outcomes are the only acceptable result, and that we help ensure quality and relevant, appropriate healthcare is equitable, accessible, and inclusive?

It is not for us to suggest our approach is by any means a silver bullet, but it is one worth exploring, because the global results speak for themselves. Now, how do we collectively mobilise in recognition of the fact that some discomfort for the industry now means progress for our patients and customers? This, after all, remains our priority.

Aligned to the Botswana Government through the Ministry of Health strategic agenda for Primary Health Care Revitalisation, the time is now to refocus the Private Health Care system towards a value based care to create sustainability and resilience in our health sector as a country.

Dr. Kebabonye ( Bomaid Chief Clinical Services Officer) is a public health specialist who joined Bomaid in 2023 as Chief Clinical Services Officer. In this role, she is mandated to develop and implement clinical strategies and policies which support the business in providing healthcare solutions, finding access to affordable leading-edge healthcare and innovations. This works to help enable healthier, happier lives through proactive and preventative products to attract younger healthier clients, whilst still providing reactive rehabilitation healthcare solutions.  


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