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BotswanaPost in negative equity position

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BotswanaPost’s financial results for the period ended 31st March 2015, released this week is a tale of two halves.

In one half there are the negatives such as the overall loss-making performance and there are some major positives that augur well for the achievement of a sustained turnaround going forward, in the other half.

The company’s total revenues increased by some 29 percent to P430million driven by business services (86 percent), courier and logistic (154 percent), Express Mail Services (25 percent) and philately (100 percent).

Most significantly, administrative cost lines were lower than in the prior year. However, the cost of sales grew faster than revenue at 34 percent. This translated into slightly squeezed margins and therefore overall results are down, with the loss for the year rising from P33.8million to P47million.

Board Chairman, Polokoetsile Motau said there were no real surprises in the financial results for the year under review. “While actual numbers could be described as disappointing given the unfortunate increase in the size of the bottom line loss, they do not reflect the significant progress that has been made towards our transformation from a traditional postal operation into an advanced, diversified service provider”.  

Transport and Communications minister has encourgared the company over the years to diversify in order to sustain its operations as a business, whilst at the same time continuing to meet its obligations of providing traditional mail service.

This has seen the government who is the company’s major shareholder not injecting money to the parastatal.

Under the former Chief Executive Officer, Pele Moleta who left the parastatal sometime in 2015, the company developed a five year journey to excellence strategy which draws to a close in March 2016.

Motau feels that transformation however, requires significant financial resources, which the company as an operational entity currently does not have. “Depleted cashflows, coupled with a resultant loss in interest earned, also placed restrictions on the amount of prepaid electricity and bulk mobile phone airtime we were able to purchase in order to resell to consumers; and this had a negative impact on our revenues.”

As a result, Motau said “it is clear that we need to engage a lot more with shareholders in order for them to inject the capital required so as to move out of our current negative equity situation.”

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Matambo calls on financial sector to pick GDP

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Finance Minister, kenneth Matambo

Finance Minister Kenneth Matambo has announced that government is committed to support financial service sector to prop up the country’s Gross Domestic Product (GDP).

Currently contributing over 13 percent to GDP, Matambo said the sector has potential to increase its share. “Hence government’s interest in the sector,” said Matambo addressing delegates at the inaugural Botswana Insurance Holdings Limited (BIHL), Global Financial Summit.

The country has built a strong, resilient and fast growing financial sector underpinned by a robust regulatory framework. The finance minister who is expected to step down next year, noted that government’s commitment to the financial service sector has this year been buttressed by a number of laws passed in July relating to money laundering activities.

In addition, Matambo said the continued investment in the development of information, communication and technologies (ICTs) backbone infrastructure is also to support local banks’ rising appetite for online services.

The Minister said the country remains committed to maintaining micro-economic stability to spur private sector participation in the economy. “Our vision is to become a high income country by 2036,” said Matambo, challenging the private sector to step forward and help government to develop the country, bemoaning the low levels of financial inclusion and shallow domestic capital markets.

He said the private sector should come up with more initiatives to develop further the local capital markets. The Minister’s sentiments were also shared by Martin Davies, Managing Director for Emerging Markets and Africa at Deloitte who has challenged the country to start dealing with its low manufacturing value add.

“How do we start to diversify beyond the single commodity economy,” quizzed Davies, adding that manufacturing increase is vital for low inequality across the country.

“Inequality results in bad public policy, as the state starts to believe and think they have to intervene more,” said Davies, highlighting that the country needs to move away from the absolute concept of state drive growth. Meanwhile, minister Matambo has applauded the private sector for leading economic dialogue in the country through events such as the BIHL Global Finance Summit.

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First Lady advises women entrepreneurs

Keikantse Lesemela

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First lady, Neo Masisi

First Lady, Neo Masisi has urged women entrepreneurs to bring change in the economic development of the country and the rest of Africa.

Speaking during the Lioness Lean in Africa breakfast on Friday, Masisi said women entrepreneurs are remarkable engines of economic growth and job creation. “I believe women entrepreneurs hold incredible potential and credentials on the continent because Africa has the highest percentage of women entrepreneurs in the world.

It is projected that millions of much needed jobs will be created over the next decade and these will be created predominantly through small businesses which are mostly run by women,” said Masisi.She highlighted that women entrepreneurs are also the most powerful engine for equitably distributing growth and they are also solutions for addressing inequality on the continent.

“It is a proven fact that for many generations, women understand the simple concept of barter and commerce. These are the role models of our past and our present and they will continue to inspire new generations to do more for business to grow,” she said.

The Lioness Lean In Breakfast Series brings together inspirational and successful women entrepreneurs to share, inspire and connect with the next generation of great women-led start-ups.

The platform is based on a breakfast networking and speaker presentation format, which has been organized in locations across the African continent for the past year by Lionesses of Africa, empowering over one million women entrepreneurs across the continent.

Stanbic Bank Botswana Head of Personal Markets, Omphemetse Dube said they are pleased to bring the Lionesses of Africa Lean In platform to Botswana once again to bring together women entrepreneurs in the country and help to nurture their growth further.

“Botswana is blessed with a number of thriving female entrepreneurs, and the potential for the next generation of talent is strong. Platforms such as this are therefore paramount in growing the cause and we as a bank are proud to help champion that movement further,” said Dube.

Founder and CEO of Lionesses of Africa,Melanie Hawken noted that Gaborone is a growing and exciting centre for women’s entrepreneurship in Africa. “This is a must-attend event for women entrepreneurs in the country as it gives them the opportunity to hear the inspiring entrepreneurial stories of women who are building great businesses here,” she said.

The annual Lionesses of Africa event allows entrepreneurs to benefit from the insights and advice of women entrepreneurs who have seen and experienced it all and to also provide an excellent opportunity for networking.

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