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RDC complains of challenging retail property market

Keikantse Lesemela

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RDC Properties Chairman, Guido Giachetti said they continue to experience challenging trading environment on its retail segment in Botswana and Mozambique.

Despite completing the extension of the XaiXai shopping centre in Mozambique, the company indicated that there has been a setback with Botswana based large supermarket retailer not carrying out the fitting out of their unit. The development started in 2017 on the back of binding expression of interest with this retailer but they could not make a good undertaking. “We are actively sourcing another anchor tenant and remain reasonably positive for the future,” wrote Giachetti in the company’s latest annual report.

In 2016, RDC Properties indicated that the group is undertaking retail developments in two sites in Maputo, Mozambique, which would launch Choppies as the main anchor. RDC Properties owns 33 percent shareholding in XaiXai Shopping complex. The project comprises 1,539 square meters of anchor shop and 2258 square meters of line shops. The Xaixai project is accounted to the tune of USD784 000 which is 0.4 percent of the group’s investment and property portfolio prior to revaluation to be done at stabilization.

The domestic retail property market remains challenging but the group has been able to maintain the vacancy levels at a very acceptable level of 3.5 percent. However, he said in such difficult conditions the company’s portfolio remained resilient as it has a good and well-balanced income stream. “We are able to be cautiously optimistic about the year ahead as our primary focus is hands on management of the existing asset base and growing shareholder value by identifying potential developments and acquisitions of properties in sectors and geographies with good future growth,” said Giachetti.

On his part, RDC Properties Chief Executive Officer, Jacopo Pari highlighted that the trading environment was challenging in line with the region but the group showed strong resilience in its Botswana based portfolio. Rental revenue in the country was up by one percent with the tourism and hospitality sector being the largest contributor while the commercial sector along with retail has been under pressure. The industrial and residential demand was solid throughout the period.

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OLOPENG HEAPS PRAISE ON BSE FINANCE CHALLENGE

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Minister Thapelo Olopeng

Botswana Stock Exchange’s annual finance and investment competition for secondary school students has been applauded by the Minister of Tertiary Education, Research, Science and Technology, Thapelo Olopeng.

The initiative, a capital market awareness tool that has been running for the past seven years, is increasing financial literacy and a culture of investment among young people. The initiative will see the country raise future billionaires through the stock markets. “It is a breath of fresh air to have tertiary students who are financially literate, who can manage their finances,” said the minister.

He urged students to invest even the smallest allowances they earn and have a hassle-free life after university. “Investing on the stock exchange is not only preserved for the rich, but for anyone with a bank account,” said Olopeng.

The minister said the secondary schools finance and investment competition is participation of the private sector in bridging the knowledge divide.Olopeng said the private sector participation augments his ministry’s efforts of providing and building knowledge and innovation through the development and implementation of the policy on tertiary education, research, science and technology to transform the economy from a resource based to a knowledge based.

“In this connection, we will continue to empower our students in order for them to lead better and successful lives which can propel them into the innovation ecosystem,” said Olopeng. BSE Chief Executive Officer, Thapelo Tsheole said the Senior Secondary Schools Finance and Investment Competition, first established in 2013 aims to sensitise and educate the student community about capital markets, with the strategic aim to increase financial literacy and promote a culture of investing at a young age.

The competition is open to all senior secondary schools across the country, including private and public senior secondary schools.

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WE ARE NOT USING DIAMONDS TO KILL ELEPHANTS, THAT’S HOGWASH! – BOTSWANA MINISTER

The MidweekSun Admin

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Orapa Mine, part of Debswana

Botswana is not using diamonds to kill elephants as alleged by some conservationists after the southern African country announced plans to lift a ban on elephant hunting to address growing conflict between humans and wildlife, a government official has said.

Minister of mineral resources, Green technology and energy security Eric Molale told a mining conference in Gaborone on Monday that the activists were tarnishing the image of Botswana. “That’s hogwash because we as Botswana are [good] conservationists and it is us who worked hard to make sure these elephants [are] brought to the numbers that we do have now,” he said.

“When conflicts arise, it is through consultation, [that we] find out how we can best manage our resources. The people have spoken and we are going to be managing the elephants in the best way that we can.

“We are not culling, we have re-introduced the trophy hunting and if you take 400 elephants per annum for trophy hunting against the 3-5% annual growth rate of the elephant herd that we have…[we are] just barely scratching on the surface.”

Botswana has about 130 000 elephants, the world’s largest population.Molale said Botswana will remain focused on things that are beneficial to the country and will not be distracted by issues spread by people that are not even privy to how things are done in the country.

“We have, however, invited them to come and learn more about what we are doing so they can better understand those important aspects of flora and fauna…”The conflict between humans and elephants had gone up since the ban was introduced in 2014.

Tourism is the second source of foreign income in Botswana after diamonds and conservationists fear that the former will be affected is the government cull elephant.
[Rough and Polished]

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