Archive for the ‘Business’ Category

source: Mmegi
MBONGENI MGUNI
Staff Writer

The country’s diamond exports could top P22.35 billion for the year, representing a seven-and-a-half percent increase on the 2008 figure even though derived from lower annual production, analysts have said.

Yesterday, Capital Securities researchers said the value of diamond exports up to August 2010 were 72 percent of the 2008 total, which is used as a baseline instead of 2009 whose statistics were warped by the recession.

At current trends, Capital Securities expects this year’s exports to eclipse the P20.7 billion for 2008. “Our unofficial forecast that diamond exports will top those of 2008 by at least 7.5 percent is more than supported by industry forecasts of a 10 percent increase,” one researcher said.

“This would firmly re-position diamond revenues as the backbone of [continue reading]

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source: Mmegi
BRIAN BENZA
Staff Writer

The Botswana Institute for Development Policy Analysis (BIDPA) has advised Government to start producing and publishing a Citizens’ Budget so that Batswana may be better informed about how public funds in the national coffers are raised and spent.

Unlike other countries in the region, among them South Africa, Namibia and Malawi, Botswana does not produce a Citizens’ Budget, which is a non-technical presentation of the national budget published for the public to better understand government plans and make it accountable for its policies.

Speaking at the launch of the Open Budget Index (OBI) 2010 for Botswana in [continue reading]

source: Sunday Standard
by Prof Malema
24-10-2010

The Botswana Stock Exchange (BSE) is being fast tracked into a company with limited liabilities to pave the way for it to be demutualised in future, in line with other exchanges in the developed markets, government said this week.

Junior Finance and Development Planning Minister, Charles Tibone, told Southern Africa Private Equity Roundtable at GICC that plans are in motion to revamp the existing capital market laws, including changing BSE from a “statutory body to company”.

“This change will pave way for Botswana Stock Exchange to be demutualised at a future point in time,” he said.

The move follows expert advice offered to government by Edward-Nathan Sonnenberg Consultants in 2007, who called for BSE to be made a private company adding that other legislative pieces need to be harmonized to ensure that all market players are regulated to enhance confidence in [continue reading]

source: The Botswana Gazette
Written by AUBREY LUTE
Wednesday, 27 October 2010 16:20

Innovation Hub kick started

The Botswana Development Corporation (BDC) has been tasked with ensuring that the infrastructure of the Botswana Innovation Hub (BIH) is completed in time so that the full mandate of the Hub can be executed towards the end of 2012. A ground breaking ceremony was held last week Friday marking the commencement of the development of the BIH site, which totals 57 hectares of developed land. The land will be demarcated into 40 plots for lease.

The plots will be available for development mid 2011.
The BIH infrastructure will consist of the Icon Building and three annexes. Speaking at the Groundbreaking ceremony, the Board Chairperson of the BIH, Mr Neo Moroka said Botswana is committed to transforming to a knowledge based economy which is not only dependant on [continue reading]

source: Mmegi

The UAE, represented by the General Civil Aviation Authority, recently initialled an air services agreement (ASA) and Memorandum of Understanding (MoU) with Botswana.

Omar Bin Ghalib, Deputy Director-General of the UAE General Civil Aviation Authority, signed the MoU on behalf of the UAE while Lieutenant Colonel Moakofi K. Modisenyane, Deputy Permanent Secretary of the Ministry of Transport and Communications, signed on behalf of Botswana.

The objective of the agreement is to strengthen co-operation in [continue reading]

source: Sunday Standard
by Kabo Mokgoabone
21-10-2010

The transport group index pushed the national year-on-year inflation rate higher in September, ending the months of softening Consumer Price Index (CPI) figures.

Central Statistics Offices (CSO) said inflation rose to 7.0 percent y/y in September from 6.7 percent y/y in August as a host of basket items, including clothing and footwear, transport, furnishing and equipment had an impact on the figures.

Food and non-alcoholic beverages remained steady. Analysts said the numbers are in line with expectations.

“Given that the September inflation number is in line with our [continue reading]

source: Mmegi
Onalenna Modikwa
Staff Writer

PALAPYE: Botswana’s future looks so bright that the country could return the goodwill of South Africa – which currently supplies 80 percent of Botswana’s power – by exporting electricity to that country and others in the southern African region.

Officially launching Morupule Colliery Expansion Project on Fiday, Vice President Mompati Merafhe said the success of the project would transform Botswana’s economy from one heavily reliant on the goodwill of neighbouring countries for energy to one self-sufficient in power generation.

“Our country will be better-placed to one day return the goodwill by exporting surplus electricity to the neighbouring states,” Merafhe said.

“This should be our driving factor as we set in motion a process of expanding our coal mining and processing initiatives at [continue reading]

source: Sunday Standard
by Sunday Standard Reporter
24-10-2010

In a rare moment coming at a time when public finances and debt are getting out of control, the Ministry of Finance and Development Planning has gathered its critics for 2011/ 12 budget consultation next week.

The gathering, named Budget Pitso, is a culmination of concerns from the industry and NGOs that Botswana public budget is done in ‘secrecy’.

“We are doing this because of the background,” explained Kenneth Matambo, the Finance minister. “We have been criticised about government budget and people heard only about it when it is presented in Parliament. Maybe the criticism was valid.”

A number of policy think tanks like BIDPA and trade unions have queried the way budget formulation is being [continue reading]

source: Mmegi
Onalenna Modikwa
Staff Writer

PALAPYE: The General Manager of Morupule Colliery, Albert Milton, says Botswana’s coal is among the best in the southern African region and presents huge opportunities for future export opportunities.

Speaking at the launch of the mine’s expansion project on Thursday, Milton said he hopes the country will be in a position to supply neighbouring countries with electricity once the expanded mine is fully operational.

Morupule Colliery has enough coal for both domestic and export demands. The colliery is expanding from mining one million tons to three million tons per annum in a project that will cost P1.5 billion. Milton said the resource would give Botswana an opportunity to diversify its economy.

Morupule Colliery boasts “an excellent safety performance” of no lost time injury since 2008, a rare phenomenon in the mining industry. The colliery supplies [continue reading]

source: Mmegi
MBONGENI MGUNI
Staff Writer

The government and the World Bank will soon engage consultants for the development of a coal roadmap, a strategic document on how the country will manage and derive optimum benefits from the estimated 212 billion tonnes of coal.

Experts believe further studies using more superior technology will soon advance estimated coal resources towards 300 billion tonnes.

Yesterday, the Director of Mines, Kgomotso Abi, said the government and the World Bank were currently preparing terms of reference to be used to retain a consultancy for the development of the roadmap.

“We are finalising the terms of reference, following which we will engage a [continue reading]

source: The Botswana Gazette
Written by AUBREY LUTE
Wednesday, 20 October 2010 12:16

The Transport group index registered an increase of 1.6 percent, from 129.6 to 131.6 between the two periods. Accroding to Acting Government statistician, M. P Kerekang this was largely due to an increase in the constituent section indices of Transport Services and Purchase of Vehicles which rose by 5.9 and 2.5 percent respectively.

The rise in Transport Services section index was mainly due to an increase in Minibus and Taxis Fares by 9.4 percent while long distance Bus (bitumen road) increased from 16.86 thebe to 18.55 thebe per kilometre, which effected on 1st September 2010. The increase in Purchase of Vehicles section index was attributed to the general increase in the prices of vehicles.

On other indicators, Kerekang said the September 2010 national Consumer Price Index was 139.4, registering an increase of 0.6 percent on the August index of 138.7. The urban villages’ index was 138.7 in September, recording an increase of 0.8 percent from 137.6 in August. The cities and towns’ index went up by 0.6 percent, moving from [continue reading]

source: Mmegi
MBONGENI MGUNI
Staff Writer

Government’s P38 million rescue package for the troubled textile industry has thus far benefited 44 companies, employing 2, 831 citizens and disbursing P5.6 million in the process.

On Monday, a Ministry of Trade and Industry statement announced that of the 44 companies, 11 were large scale, seven medium, 25 small and one a micro-business. Successful applicants for the rescue package are mainly from Gaborone and Francistown with 19 companies in total, followed by Molepolole, Selebi-Phikwe, Tutume, Bobonong and 10 other villages.

“There has generally been slow growth in the coverage of the locations of companies that have benefited,” the statement reads. “The Ministry is, however, hopeful that the spread of [continue reading]

source: Mmegi
MONKAGEDI GAOTLHOBOGWE
Staff Writer

Beaten by newcomers such as Myspace, Facebook, Youtube at their own game, Botswana’s first and only social network website Edumela.com has quietly shut down.

For the last decade the website has been trying to build itself into one of the world’s more popular and profitable social network sites.

Edumela.com, which had successfully penetrated South Africa, Lesotho, and was also used by Tswana speakers in the Diaspora, went off line during the week preceding Botswana’s independence day (end of September) as users trying to log on were greeted with a message showing that it was hacked by “Arab attack”, with a picture of a green human skull & bones appearing.

When Mmegi phoned the founder Santos Thomas once again about the [continue reading]

source: Mmegi
BRIAN BENZA
Staff Writer

The government has revised upwards its GDP forecasts for 2010 from 5 percent to 7.9 percent largely due to recovery in the mining sector that traditionally contributes 33 percent of the GDP.

According to the 2011/12 Budget Strategy Paper (BSP) that will form the basis of preparations for the next national budget to be announced next February, the government has revised GDP, revenue and expenditure forecasts for the next three years, laying the foundation to attain the target of a balanced budget by the year 2012/13.

Announcing the 2010/11 national budget early this year, the Minister of Finance and Development Planning (MFDP), Kenneth Matambo, put this [continue reading]

source: Mmegi
MBONGENI MGUNI
Staff Writer

Yesterday, reports emerged indicating that GMR Group, an Indian energy and infrastructure enterprise, is offering between US$8.50 and US$8.85 per share for CIC Energy, valuing the company around US$500 million (P3.38 billion).

In addition, another unnamed Chinese company is reportedly preparing a bid for CIC Energy, due to be unveiled by October 30.

The two bids come as CIC Energy and the “multi-billion Pula Indian conglomerate” – which has been widely identified as JSW, are bound to an exclusivity period expected to last a number of weeks. Under the agreement, CIC Energy will not solicit, initiate or encourage submission of further offers or participate in negotiations with parties other than JSW.

The Indian conglomerate – whose offer of 7.75 Canadian Dollars (US$7.60/P50) per share is below the latest offers – is presently conducting a [continue reading]