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Shumba lists on bse main board

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Shumba Energy Limited, a Botswana-based energy development company, has been approved by the Botswana Stock Exchange to migrate its listing from the Venture Capital Market Board to the Main Board of the local bourse effective 30th October 2017. Shumba is focussed on exploitation of energy fuel resources for transformation into base-load power supply and for industrial thermal energy generation.

The Company has made considerable progress and since its establishment has expanded from exploration to a revenue-generating development company, with mineral ownership rights to 4.5 billion tonnes of thermal coal. Managing Director of Shumba, Mashale Phumaphi commented that, “Shumba remains committed to providing coal and energy to Botswana and its neighbours in the SADC region.

The Company’s move to the Main Board takes place at an advantageous time with Shumba having cemented itself as a major industry player while continuing to reach its development objectives and moving to revenue generation.” Chairman of Shumba, Alan M. Clegg added, “This migration represents execution of the second phase of the restructure of the Company’s public investment platform following its de-listing from the SEM (Stock Exchange of Mauritius) removing the negative arbitrage investors experienced.

“Our goal is to present the company to a broader and deeper investment audience and remove all impediments to improving its visibility as we work toward our goal improving the stock liquidity and tradability in shareholders’ interest. The migration on the BSE will establish a stronger platform for potential future fund raisings of development capital to achieve the Company’s growth plans as well as enhancing the investment profile of the Company.”Shumba is an energy development company listed on the Botswana Stock Exchange (BSE: SHUMBA).

Shumba has over the last seven years progressed from establishment as a coal exploration company to an energy fuels and base load power generation development-company and currently owns the rights to over 4.5 billion tonnes of thermal coal resources which are amenable to exploitation for use in a number of energy transformation processes. As a leading energy sector player, Shumba’s mission is to contribute to reducing the deficit and satisfy the growing energy demand in the SADC region that has resulted in chronic power outages for industries and domestic consumers alike.

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‘Manufacturing holds key to economic growth’

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Barclays bank’s economist Naledi Madala has urged the country to consider manufacturing, as a key tailwind to drive the economy and reduce inequality.

She was speaking at a gathering organised by the bank which focused on economic outlook for 2019. “We should not make a mistake of leapfrogging without manufacturing,” said Madala, lamenting that the country’s diversification remains a pipeline dream, as the diamond is still the economy’s mainstay. She bemoaned that mining activities in the country could not spring forward diversification, though non-mining GDP has been steady over the years.

“Extractive industries are not good stepping stones for diversification, the sector does not prepare us for the next step,” said Madala at the Barclays’ Economic Outlook Forum Review 2019. The economist further noted that government should confront head-on challenges of productivity and competitiveness to attract the much needed Foreign Direct Investment (FDI). Though diversification efforts continue to hit a brick wall, Madala said the country should expect increased activities in the mining sector hinged to ramp up in coal production in the year ahead.

She also implored government to consider a welcoming attitude towards foreign investors and generous tax incentives to businesses that set up in the country. Madala is also upbeat that the use of public private partnership model could also help diversify the economy coupled with privitisation. “Privitisation will offer opportunities for growth, through the renewed optimism from government, as business confidence has improved,” said Madala.

She implored the government and the business community to access what is going to drive and hinder growth highlighting that key headwinds to growth are income inequality, diversification challenge and productivity, among others. “The pace of poverty reduction has slowed down, while income inequality goes up,” said Madala

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MINISTER BEWAILS BAD REPAYMENT BY YOUTH

Keikantse Lesemela

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Minister of Youth Empowerment, Sports and Culture Development, Tshekedi Khama has told parliament his ministry continues to face challenges on the repayment of Youth Development Fund (YDF) loans.

Recently presenting the budget to Parliament, Khama said this financial year the ministry has received a total of 2582 YDF applications and approved 983of them to the value of P98 million. He said the programme attracts a high level of interest from youth but the ministry is only limited to funding a maximum of 1200 youth projects annually due to budget limitations.

“However the greatest challenge for the Fund is the repayment of the loan component by the majority of the youth businesses. The youth have advanced number of challenges for this including high rentals for operating spaces, low market access owing to tight competition and limited production capacities,” said Tshekedi, adding that they continue to pursue beneficiaries to repay the loans.

Out of the 919 businesses funded 1058 jobs have been created. The minister highlighted that disbursements of funds will continue to be undertaken until the end of the financial year. “The YDF is currently under review in line with the pronouncement made by the President, Dr Mokgweetsi Masisi in the State of the Nation Address, to improve beneficiaries through training, and encourage consortia and cooperatives,” said Tshekedi.

The ministry assists YDF beneficiaries in marketing their products and services through fairs and exhibitions. The ministry also runs entrepreneurship-training seminars for youth and in the past year 3692 young people were trained. Over 600 youth businesses attended fairs and exhibitions to market their products and services. Currently the ministry is collaborating with Local Enterprise Authority (LEA), First National Bank Botswana and Citizen Entrepreneurial Development Agency (CEDA) on training in entrepreneurship development and mentorship of YDF beneficiaries.

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