Botswana will not be part of the SADC member states who will immediately and, or urgently receive humanitarian assistance offered this week by the International Cooperation Partners (ICPs) mainly for two reasons.

It is said the assistance is focusing on countries that have been most affected by the effects of El- Nino, and perceived to be low income. Furthermore, Botswana did not request for such assistance from the ICPs. The shocking revelation was made by some of the ICP representatives whose countries and organisations responded positively to SADC chairperson and Botswana President, Ian Khama’s appeal when launching the Regional Humanitarian Appeal and mobilising funds for the regional Economic bloc on Tuesday. The appeal is a formal request by the economic regional bloc to the international community to provide assistance to affected States. During the ICPs respective responses on Tuesday, Botswana, Namibia and South Africa were not mentioned amongst the member states who will be assisted.

Botswana Guardian learnt that Botswana submitted to SADC at a later stage than other countries because she took her time to assess and acquire the facts before she could press the alarm.However, what is clear is that Botswana, just like many other member states, has long declared drought emergency. The Humanitarian Appeal brochure launched this week indicates that Botswana, Lesotho, Malawi, Namibia, Swaziland and Zimbabwe have declared drought emergencies. South Africa has declared drought emergency in all provinces except Gauteng while Mozambique has declared an institutional red alert. El Niño-related government preparedness and response plans have been developed or are under development by most countries.

Although it still falls far from the SADC target of USD 2.4 billion, this week Tuesday four ICPs namely, United States of America (USA), European Union, Britain and United Nations responded by offering pledges worth millions to help all countries save for Botswana, Namibia and South Africa because they are regarded as middle-income economies.

Presenting during the meeting, Ambassador Earl Miller said the USA government through the United States Agency for International Development (USAID) is contributing $127 million as part of an integrated response to El Niño drought relief. With this announcement, the United States has provided nearly USD300 million in humanitarian assistance to the region and has also invested over USD 200 million in longer-term development interventions. These efforts will mitigate the drought’s impact and build resilience in Southern Africa through agricultural production, environment, health, livestock, trade, and water and sanitation programmes.

The USA government supports recognition of the current drought in the SADC region as a humanitarian crisis with significant negative consequences for food security, water access, health, and economic productivity outcomes. In addition to food assistance, the biggest priority will be livelihood support, including seed distributions and livestock recovery to accelerate economic recovery. The United States applauded President Ian Khama’s appeal on behalf of SADC nations for greater international support in the current drought crisis.

Speaking to Botswana Guardian Ambassador Earl Miller, USAID country representative Blake Chrystal, Head of Delegation of the European Union Ambassador Alexander Baum, UN Representative, UNOCHA El-Nino Coordinator, Southern Africa and RIASCO Chairperson, Timo Pakkala all revealed that Botswana is not getting assistance because ‘she did not submit the request’’.Blake Chrystal of USAID said they excluded Botswana because SADC‘s request for immediate urgent humanitarian appeal assistance is focused on countries that have been most affected by the effects of El- Nino.

“We also  do a lot of longer term work in countries that are better often than neighbours, countries like Botswana,  South Africa and Namibia, the need  for emergency  assistance aid food is not as great as it is in other countries. So we do a lot of work of what we call disaster risk mitigation and resilience. So that is the work in partnership with the governments of those countries to ensure that they are better placed to deal with the drought the next time it happens.”

Examples include the work the US government is doing on early warning for droughts so that the countries have a better idea it is coming. “We do a lot of work on conservation agriculture which is growing food with less water and crops that are more drought resistant. We have made significant effort in what we call seed harmonisation in SADC, which is to ensure that countries have access to safe drought resistant seeds they can plant. Those are some of the examples of how we vote on resilience and disaster risk mitigation in up and middle income countries.”

Chrystal said Botswana government has been very open about the investments they have made in ensuring that their people here are food secure, and they have reached out to development partners and asked for assistance going forward in disaster mitigation and resilience. “We will continue looking for opportunities to work with government here.” Timo Pakkala told Botswana Guardian that, Botswana, South Africa and Namibia have more national resources than the other countries. “As ICPs we are targeting the most vulnerable, most affected countries with least capacity to respond,” he said. According to him resources are quite limited and thus they needed to prioritise. On Botswana, Namibia and South Africa he said, “they believe they can manage themselves from their natural resources, which is an excellent thing.”

Ambassador Baum shared that the El- Niño story is already past. “The way I look at it is, we are looking at the next crisis, I am not sure anybody will be able to reopen the El- Niño case. That is my sense when I listened to my headquarters. For now, I cannot say yes or no, but looking at this late stage as we are in August, I will not raise any hope that there will be more money than the 60 million Euros offered. You have seen the FAO- SADC regional map indicating the needs.”

He said Botswana had signalled an understanding that it is more or less in control of the situation and that it can respond to the situation itself. “That is why there has been very little coming forward practically in terms of request for international support. If the government is confident that it can manage the situation before it would ask for assistance, I think it is good because we have some countries which always appeal for international help, if the country focuses on using its means before going for international help, it adds to its own credibility, because one day they may be a real issue that cannot be coped with by the country, and once such a country makes the appeal, then they will be taken seriously”, said Baum.

Worst drought in 35 years
The current El Niño is the worst in 35 years, following poor rainfall since October 2015. The severity of the drought conditions overwhelmed the disaster response capacity in most of the affected member states and a number of key socio- economic sectors has already been negatively affected. According to president Ian Khama the current drought has already resulted in widespread crop production failures and loss of thousands of livestock.
”In South Africa, the biggest grain producer in the region, it is estimated that the maize harvest resulted in approximately 7.16 million metric tonnes, about 4million tonnes less than average. While several countries have recorded over 50 percent drop in crop production”.

Khama said the poor rainfall performance and the high evaporation rates with prolonged heat waves that have persisted in the region since October 2015 have led to low water levels in major reservoirs in the region, compromising  domestic and agricultural water supplies and hydro-electric power generation. He gave examples of Botswana, Lesotho, South Africa and Zambia where the water levels in major dams and rivers were at the lowest. Ground water levels were also reported to be much lower than expected as some service providers such as hospitals and schools are unable to provide their services due to lack of water.

El-Niño impact on the health services has led to disruption of health services and compromised the case management of patients. Poor feeding resulting from lack of food will also further compromise people’s immune system and increase the risk of infection due to drinking water. Khama said affected member states have already re-allocated their limited resources to support vulnerable populations through drought relief and recovery programmes.The SADC Appeal is in support of ongoing planned efforts by SADC Member States in Angola, Botswana, Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe. The appeal covers all relevant sectors in an effort to enable a holistic approach to the drought, addressing immediate multi-sectoral humanitarian needs as well as referencing longer term developmental and resilience-building requirements

The reality that King Mswati III of the Mountain Kingdom of Swaziland will, courtesy of the rotational nature of the SADC, be handed chairpersonship, has elicited condemnation from the interviewed Botswana civil society in the political and labour sphere.

The vice president of the Botswana Congress Party (BCP), Dr Kesitegile Gobotswang is not impressed by the development. “Although Swaziland is a sovereign state, the fact that King Mswati III is ascending the SADC chair this August is a matter of great concern to us because the country has thus far refused to embrace the values of democracy.

This is an indication that the regional body is not committed to democratic values.” In his view, the development is a setback for the region because Mswati III is not competent to meaningfully intervene when there is a crisis especially where democracy is the issue. Dr Gobotswang would have liked a situation whereby geographical location does not automatically qualify a country to be a member of the regional organisation. “The European Union (EU) has a checklist which a country must satisfy in order to be allowed membership,” explained Dr Gobotswang.

“Mswati does not qualify to hold that position at all. Not only is he a dictator but he is also a corrupt leader who sees nothing wrong with abusing public resources for his benefit while people starve,” said the president of the Botswana People’s Party(BPP), Motlatsi Molapisi. The BNF secretary for Foreign Affairs, Nelson Ramaotwana, like Gobotswang, notes that all countries, including Swaziland, are free to run their affairs according to their own home-grown processes.

“Mswati is, however, not the right person for the job because he cannot mediate between government and its people where matters of democracy are concerned. In his country, civic right groups including political parties and trade unions are, for all intents and purposes, banned,” said Ramaotwana who says the problem with SADC is that some of its members are compromised.

For his part, the Deputy Secretary General of the Botswana Federation of Public and Private Sector Unions(BOFEPUSU), Ketlhalefile Motshegwa, is disappointed that, while the whole world has criticised Zimbabwe for her democratic credentials, the world, including the western powers, seem to be tolerant of Mswati’s impunity.

“He rules by decree. There is no bargaining council and those who raise their voices about his abuse of power are incarcerated. Above everything else, a leader must be a role model with regards to what the organisation he leads stands for,” BOFEPUSU will not fold its arms though,  he promises.

“We are liaising with like-minded organisations in the SADC as well as embassies to reject his chairmanship. We will also lobby Swatis here and back home to join us in the rejection of King Mswati III. We seek to isolate him,” he said.

Botswana Federation of Public Sector Unions (BOFEPUSU) has expressed disappointment on what it views as contempt of court by parliament in its deliberation on the amendments of the Trade Dispute Act (TDA).

Minister of Labour and Home Affairs, Edwin Batshu brought the Bill before Parliament in the previous sitting. The Bill has been marred by controversy as BOFEPUSU argued that they have not been consulted resulting in the opposition MPs calling for the deferment of the Bill to allow the minister to consult.

When the debate on the Bill started, the Speaker of Parliament revealed that her office and that of the Parliamentary Counsel have not received any communication that suggests that the TDA could not be discussed because it is subjected to litigation.
President of BOFEPUSU, Johannes Tshukudu said the case would be heard before court on 13th of September this year.

“This could have an impact on the outcome of the decision of the court. We do not know how the MPs would feel if the court could rule against them and nullify the Act they have just wasted their energy on. We would demonstrate before court that what Parliament did was wrong. This also boils down to the issue of separation of powers. This could clearly mean that Parliament is failing to abide by the laws that it makes but expect other citizens to obey. It also undermines the role played by our judiciary in this country,” Tshukudu stated.

Despite several attempts by opposition MPs to have discussions on the Bill suspended, the speaker has maintained ignorance of any pending case. Batshu has also on the other hand maintained that he has consulted relevant stakeholders through the Labour Advisory Board.

BOFEPUSU however rubbished claims that they have been consulted. The federation argued that they were told late about the consultative meeting and when they requested for a postponement of the meeting they were ignored and the meeting proceeded without BOFEPUSU.

The sole reason of operating a business is to get sustained profits, nothing else. This does not matter if government or a private investor owns the business. I am compelled to reiterate this statement because of the current tightrope that government is currently walking through in a desperate attempt to save BCL copper mine.

Looking from a distance, it will appear the executive arm of government is having limited options. However, some four hundreds of kilometers, north of the capital city, more than 4500 workers trek to BCL copper mine in Selibe-Phikwe to make a fortune for the company and a meal for their families. However, in recent months, workers and indeed management have become increasingly jittery and restless. The fear? They might just wake up and discover the government had closed the mine, for good! For sometime now, BCL has dominated high-leveled closed-door meetings at the government enclave. The agenda items centred on how the copper mine should operate sustainably and profitably.

Two weeks ago, a local business weekly made chilling death knell to miners with its article titled ‘Finished and Klaar’. In the article, the paper said cabinet has taken a decision to close the mine as it is not sustainable to run. The determination on whether to shut down the mine or not remains a very challenging decision to make by cabinet. However, what is key is what government should do with a profitable future BCL. The mine is currently operating at a loss and it has a mountain of debts to descend from. However, the mine is currently not producing anything to generate revenue, let alone pay its numerous creditors. It will seem BCL top executives these days spend more time discussing how they could sweeten their funding proposals for impactful responses.

However, what is becoming clearer by the day is that the same government is running impatient that BCL has now become more of a burden, competing with other equally important national projects, with its piling financial proposals on the back rock of drying state coffers.

It’s a precarious situation for President Ian Khama’s government, which is expected to post a P6 billion deficit in its current budget (2016-17). The choice to close the mine will not be helpful for now, as government has to first recover the invested billions of Pula. Government has also made guarantees to BCL mine, including the recent $100 million from Barclays bank. Any solution must ensure the mine returns to profitability in the medium term. This of course, is if the global commodity crunch was to end and prices for copper warrant sustained mining.

While government’s top officials are still in deep thoughts about how to deal with BCL, the critical matter that should be lingering on their heads is how to deal with the mine’s shareholding structure. It is a decision that could have been made some years ago, but unfortunately it was not to be. Currently, government is the sole shareholder at BCL. This has become increasingly knotty, as whatever demand BCL makes government has to bear it alone. In the modern business world, this kind of business model is eroding fast. It is even problematic for Botswana government, which surprisingly but forthrightly speaking, seems not to truly understand the art of mining.

I strongly believe that to solve this menace, once and for all, government should just sell part of BCL once the mine is profitable. The share sale will prove vital during unprofitable and unsustainable periods. If government had partnered with other investors shareholders at BCL, it could have acted as fallback and even more importantly, as a measure to spread risk in the highly volatile mining business. De Beers and Botswana have had a largely successful partnership with their Debswana.

For example, when Jwaneng was facing possible closure in the foreseeable future, the two shareholders quickly jumped in and invested P24 billion in a project known as Cut 8. The project is expected to prolong the life of the mine by at least a decade or so. When the Russian company, Norilsk sold its minority stake at BCL some few years ago leaving government as the sole shareholder, an expression of interest should have been opened immediately to invite strategic investors on board. At the current time, BCL’s aging equipment and mining underground become expensive; the deeper the mine, the more expensive and risky to run it.

Recent loss of lives at the mine can attest to this. The Vice President Mokgweetsi Masisi admitted, as Bloomberg recently reported from Kigali, that the mine is costing them dearly. “It's unprofitable, unsustainable and expensive,” he said this on the sidelines of the African Union elective meetings two weeks ago. Further, the republic’s number two said they will continue to inject P1, 4 billion on the mine to keep it afloat every year, even when the company was to stop mining.

This perhaps shed some light on the imminent closure of the mine. To save taxpayers from further paying more for BCL problems alone, government should at the earliest possible time part sell the mine. This will not be for the first time that a government does this. In Russia, Vladimir Putin’s government has sold part of its stake at Alrosa to plug its budget deficit. For now, government is likely to come with a workable solution to keep the mine running. However, to avoid falling into the same pit year in and year out, government should sell part of its shareholding at the Selibe Phikwe mine. The money raised would be thrown in the economic diversification efforts.

Tomorrow (Saturday) marks the second year since the passing away of iconic politician, Gomolemo Motswaledi who was the President of Botswana Movement for Democracy (BMD) and whose death, officially caused by a car accident, fed political campaigns towards the 2014 election.

He was also the Secretary General of the coalition movement, Umbrella for Democratic Change (UDC). BMD is a contracting member of the UDC, together with Botswana National Front (BNF) and Botswana Peoples Party (BPP). UDC launched an independent investigation after raising doubt that his was just like any other road accident. The man was assassinated, the party proclaimed and embarked on a mission to raise funds to investigate the cause of the death. The UDC has however so far failed to release the report for the cause of Motswaledi’s death.

The delay has now reversed the unity that the nation experienced after his death; some political observers are of the view that his death earned the UDC sympathy votes. BMD, which is currently characterised by internal fighting last month through its National Working Committee, revealed that the report was ready and with the UDC leadership. Political pressure from other parties also reached the coalition movement corridors. The delay was seen as a political stunt by the UDC to continue getting sympathy votes from Batswana even in 2019.

Botswana Congress Party Youth League last year called for the release of the report. The Botswana Democratic Party (BDP) also joined the calls. BDP Member of Parliament for Francistown West, Ignatius Moswaane has since brought a motion before Parliament requesting that the UDC be forced to release the report or be investigated for stealing money from Batswana.

UDC President who is also the leader of BNF, Duma Boko once indicated that they are waiting for experts to come to the country to reconstruct the accident. An exercise he said would take time. Even though he promised to do regular updates on the matter this never happened. This week BMD Chairman Nehemiah Modubule and UDC Head of Communications Moeti Mohwasa referred all enquiries to Ndaba Gaolathe who doubles as BMD President and UDC Secretary General. Gaolathe was said to be in South Africa and would only be back today (Friday). The UDC is however, planning various activities to honour Motswaledi and just like last year a remembrance memorial has been scheduled for Gaborone next week.

Motswaledi became popular after he challenged BDP leader and head of state Dr Ian Khama in court, where he was left saddled with huge legal costs. The public came to his rescue after he was threatened with civil imprisonment. He would later with other disgruntled BDP members form the BMD in 2010.

Botswana Investment and Trade Centre (BITC) has announced the employment of a more focused and targeted investment promotion strategy, to increase employment levels, value and demand for investment locally.

“If we are to be successful in investment promotion, we cannot try to be everything to everybody, as a result we need to narrow down the sectors we pursue and need to be very specific with regards to what those sectors involve.” This was a statement made by the Chief Executive Officer, Letsebe Sejoe as he further announced that BITC selected potential interest in sectors to include agriculture, services, manufacturing and resource beneficiation.

Sejoe says BITC will be very specific in terms of where the opportunities are within the different sectors so as to fully exploit the offerings.“Our mission is to cultivate a more focused investor targeting investment promotion model which will help in identifying specific markets and companies for targeting foreign direct investment. This will enable access to corporate networks in targeted and prioritised markets,” he maintains.

Their interest in agriculture is in the leather and beef value chain as they will attract investment from countries like Argentina, Brazil, Italy, India, and China. Beneficiation will be specifically sourced from Soda Ash and Coal to attract investors in countries like South Africa, Australia, China, India and Canada. As for manufacturing, BITC intends to factor in Automotive Components while Services will direct specifically to the Transport and Logistics and ICT.

Nonetheless, with the present state of agriculture locally which only occupies one percent of the entire local investment sector, Sejoe is of the belief that agriculture holds a lot of potential for growth. “Agriculture needs to grow if we are to foster food security, employment and other benefits that come along with it.”

The financial and business services, transport and logistics occupy 39 percent while manufacturing   and property take up to 39 percent of the overall investment sector at the moment. Sejoe however is apprehensive of the fact that the concentration and quality of most capital investment has been tied to capitally intensive sectors such as mining, resulting in lowered levels of employment opportunities. “The predicament is that it does not bring with it a commensurate level of employment which is visible at the drop in value of the total employment created this year.”

Employment created for the years 2015/16 has remained depressed at 1703 against a target that was set at 2530 following a total of 3313 employment created in the years 2014/15.

Not for the first time, the Botswana Democratic Party’s reckless recruitment desperation has once again been captured on tape and this time around the actors are Francistown’s Raoboy Mpuang, Ditiro Majadibodu and the targeted recruit, BCP’s former Botsalano Ward council candidate, Barulaganye Mooketsi, known as Baka.

Notably, in the new audio recording, passed on to this publication, a glimpse into BDP’s recruitment modus operandi comes to surface; this time it is less on, ‘bo asa boa pele,’ denoting economic attraction, but is simply a factionally based gossip mongering, accentuating the party’s internal bickerings. Both the recruiters are open that they ‘represent’ or at minimum belong to the Vice President, Mokgweetsi Masisi’s faction. Francistown West MP, Ignatious Moswaane comes out as a major nemenies, whom the recruit is advised to stay away from.

“Moswaane o lelela golo mo go sa berekeng,” says Mpuang who also warns that, “Letsatsi le o tlang ko BDP, boMma Sengalo le Moswaane ba tla batla gore ba baakanyetse your arrival. Ba go batlela gore enne bone ba ba go dirisang. Ba tla go dirisa ba bo ba filda batho wena bago dampa. Before Moswaane sabotages you, o tshwanetse go tshwaragana le rona le bo Lotty (Manyapetsa),” who is also according to Mpuang, Masisi’s foot-soldier. Mpuang also reveals in the tape that Moswaane supports Nonofo Molefhi in the presidential race and that Moswaane and Masisi do not see eye to eye. As if tutoring Baka on cronyism, Mpuang emphasises, “What is important is for Masisi to know you. Who does not want to be close to the president? Mongwe le mongwe o batla go nna close to the president.”

Majadibodu agrees, “Then when he (Masisi) thinks about Aerodrome, he thinks about you as well because that is his late brother’s ward.” Later in the tape however, he warns Baka to avoid Moswaane because he will have much to lose when the axe is wielded against Moswaane (Fa selepe se lela). Aerodrome is a small township in the Botsalano ward.

Other local politicians and office hopefuls are mentioned by names, indicating a region in total disarray. Mpuang, who is the suspended BDP’s secretary for the region is heard explaining to Baka how he had already assembled his own council candidates for the 2019 general election throughout the constituency. For example, Mpuang, who intents to challenge Moswaane in the next party primary election, is not certain whether Ontiretse ‘Nthinthi’ Bakaile is in his or Moswaane’s faction. Some of Mpuang’s preferred candidates are Ndove, Mma Fanuel, Lesego Mpayang for Moselewapula, Kanana and Tatitown respectively.

He makes it clear in the tape that he has no faith in the likes of Cornelius Gopolang (Kanana ward), Benifield (Botsalano ward) Lechedzani Modenga (Moselewapula ward) and Gaethusi Ramolotsana (Tatitown ward). All the four are sitting councillors.
Leading them on, the BCP targeted recruit now turned a mule, asks for information about one of the community leaders in the form of Gerald Estate Chief, Paul Motshwane, whether he will be seeking a parliamentary seat. They both admit to have heard the rumours but are not certain although they could not avoid casting aspersion on his credentials as a politician.

Majadibodu, whose recruitment to BDP was under similar circumstances suggests that Motshwane’s tradional role is of no use in town.“Unlike out in the village, he is not a factor at all,” The economic factor, also known as, Boasa bo a pele, a phrase associated with the party’s Secretary General, Botsalo Ntuane, is not, however, wholesomely avoided as Baka is urged to know where his bread is buttered. First he is assured that if he jumps in he will be granted the opportunity to be elected to the council. To convince him, the name of Bagalatia Arone, the recent BDP catch, is thown in.

“Arone remains the strongest contender in the constituency,” said Majadibodu apparently to assure Baka that, even if he defected to the BDP, he will still have the right to contest the election in 2019. “You should not be surprised if Mbaha does not contest to give way to Arone,” said Mpuang who describes Mbaha as one of Masisi’s boys. Although at the beginning of the tape, the two BDP foot-soldiers denied that the BDP bribed people to join them, Mpuang is heard saying that Mbaha may be prevailed upon not to contest but to support Arone.

“Fa ba mo tshwarisa sengwe se se substantial ba re tshwara jaana a bo a sa eme.” It is also suggested in the tape that, the BDP might use the special election dispensation with Mbaha being appointed to council leaving only Arone to contest.
In the audio conversation which keeps going back and forth, Majadibodu makes an impassioned plea to Baka not to miss the gravy train. “It’s all about your life now at the end of the day. Leba gore fa o tsenang teng is there a better life,” advises Majadibodu. Chips in Mpuang, “Nna ke motho wa ga Sisboy, you see. If you join, you should know that, we are in the ruling faction.”

Majadibodu, who reveals that he is contesting the Nata-Gweta primary elections also makes it clear that he belongs to the Masisi faction. Talking about the sitting MP, Paulson Majaha, this is what Majadibodu says, “He doesn’t stand a chance. What with all the blunders as well? When he saw me at the Goodhope rally, he fled,” says Majadibodu referring to the rally where he was officially welcomed into the BDP after leaving the BCP a few months back. The welcoming was done at a rally in the Goodhope-Mabule constituency during the campaign for the constituency by-election. Mpuang is heard appealing to Baka in the recording to join the BDP while he (Mpuang) was still the secretary of the region.

Mpuang could not be reached as his phone was off-air by press time. When contacted for comment, Ditiro Majadibodu insisted that he never had any formal meeting with Baka. “I know him because he is my former comrade. Like everyone else I meet, who is not a BDP member, I talked to him about the BDP. However, I have never had any formal meeting with him. But again, it would be unfortunate that somebody would have recorded my discussion with him,” said Majadibodu wondering what the motive for recording could have been. Despite the denial, indications are that Mpuang and Majadibodu picked Baka from Aerodrome in the afternoon of Saturday 18th June.

“When they called to confirm the appointment, I was with one of the party elders, Kays Phitshana with whom I had discussed how I should deal with the incessant overtures on me by the BDP. I however went to meet them in the street where they insisted we drive out of town and far from the public glare. We went as far as the old international airport before I was seized by the fear of being out there alone with these BDP activists,” revealed Baka in an interview. Baka further confirmed that he is the one who recorded the conversation.

Now that sixth edition of the Tokyo International Conference on African Development (TICAD VI) is upon us, Guardian Online has gone to extremes to bring our valued readers, advertisers, investors and businesspersons relevant information relating to the Summit that will be held at the Kenyatta International Conference Centre (KICC) in Nairobi, Kenya from August 23th to August 29th 2016.

We invite you to join this platform and make it as interactive as possible. It is here that we will give you links to meet companies and multinationals that will be participating in the Summit and its adjuncts such as the Africa-Japan Business Forum and the Japan Fair, where you can be able to rub shoulders and per chance, strike short term or long-term investment deals with some of Japan’s big names companies.

This information will also appeal to our public sector, our government officers who will be travelling to Nairobi to the Summit as well as the Civil Society (Non State Actors) organisations that will be participating or are hoping to contribute to their country or continent’s development agenda through partnerships with Japanese private and public sector companies and their civil societies.

We hope that at the end the end of the Summit Business Botswana (BB); Botswana Investment and Trade Centre (BITC) and Botswana Council of Non-Governmental Organisations (BOCONGO) and the Ministries of Trade, Industry and Investment and Foreign Affairs and International Cooperation will have something tangible and beneficial to report back to Batswana in the areas of Industrialisation; Health Water and Sanitation and Social Stability, these being the key thematic areas for cooperation identified by the TICAD co-sponsors, Japan Government; United Nations; African Union Commission and United Nations Development Programme under the three year circle of TICAD VI, that ends in 2019.

TICAD can best be described as Japan’s overseas development assistance (ODA) for Africa. The summit level conferences started in 1993 and have been held after every five-years in Japan’s cities until 2013 in Yokohama when the African Union Commission joined as a co-sponsor and it was agreed that both Japan and Africa alternate in hosting the summit to enforce the principle of ‘African ownership’ and international partnership, that underpins the cooperation framework. As a result, Kenya was identified as the host of the first-ever summit to be held in Africa.

The Republic of Japan has this week celebrated its diplomatic relations with Botswana in anticipation OF the latter’s 50th silver jubilee independence celebrations.

Speaking at reception ceremony in Gaborone, Ambassador of Japan to Botswana, Masahiro Onishi said his country established its diplomatic relations with Botswana on 30th September 1966 and this was worth celebrating.

“Botswana and Japan share the same fundamental values, namely, democracy, rule of law and the respect of human rights. It is for that reason that we have been cooperating in the international arena to advocate those principles. For us Botswana is a true friend that one can trust wholeheartedly,” explained Onishi. He further stated that both Botswana and Japan have rich natural resources, including tourism, which made the friendship between the two countries even stronger.

“About 10, 000 Japanese people visited Botswana in 2014, and it is my wish that more Japanese people will visit this beautiful country,” he said. Onishi also highlighted that Japan has previously assisted Botswana in the construction of infrastructure through grants and Yen loans over the years.

“Currently, Botswana has already achieved the status of an upper middle income country so that, in general means our grants and Yen loans are no longer applicable to this country. Instead, we are now cooperating with Botswana through technical cooperation and grant assistance for Grass Roots Projects,” he said. He therefore promised that he would commit to strive for further development of the relations between these two countries.

Botswana’s High Commissioner to the United Kingdom, is the best performing among the country’s envoys, Minister of Foreign Affairs and International Cooperation, Pelonomi Venson-Moitoi has said.

The UK High Commissioner Roy Blackbeard is the only one who has served for long compared to other colleagues. Members of Parliament especially from the opposition have for long questioned the rationale for having Blackbeard serving for more than five years in one place. The answer has always been that he is doing a great job so there is no need to move him from London.

This week Venson-Moitoi reiterated this position stating that there is nothing amiss. “The current High Commissioner in London is deployed where there is need and will be moved according to the exigencies of the service. He has stayed in one place as government remains satisfied with his performance”, the minister told Parliament this week.

She stated that prior to his appointment as High Commissioner, Blackbeard served as minister of Agriculture and was also MP for Serowe North. Quizzed about Blackbeard’s contract, the minister said all the country’s envoys have the same contract of engagement. She said Blackbeard was not given a special contract and is not getting any special treatment. “He is still in London because he was able to ensure that the relationship between us and our counterparts remains strong.

He ensures our programmes run smoothly. Batswana are well served under his leadership and nothing has come forth to suggest that our London office is failing”, she said when responding to a question from MP for Francistown South Wynter Mmolotsi who wanted to know why Blackbeard has stayed in one place for long and when he would be transferred.

This year marks 18 years of his uninterrupted stay in London since he was appointed High Commissioner in 1998. Opposition parties have for long maintained that Blackbeard had made a deal with the ruling Botswana Democratic Party (BDP) to give up his Parliamentary seat for President Ian Khama. President Khama joined politics from Botswana Defence Force in 1998 the same year Blackbeard dumped his political career. BDP and government has denied that there are ties or a deal that was made for Blackbeard. President Khama went ahead and won the by-election under the BDP ticket.

Bakgatla regent, Kgosi Bana Sekai has heaped praises on one of the tribesmen, Molemi Gare, describing him as a “hero” for standing up for the self-exiled Kgosi-kgolo Kgafela II.

Kgosi Sekai made the impromptu announcement on Sunday at the funeral of Molemi’s mother, 92-year old Malepe ‘Lipsticks’ Gare, the first child of Leseba and Motlalepula Mmankgwana Gare of Mapotsane ward. Malepe succumbed to heart failure last week Monday at Deborah Retief Memorial Hospital. The funeral was conducted at her home in Lesetlheng la Mabodisa, otherwise commonly known as ‘Dichibidung’ – because of its reddish soils.However, Kgosana Sebedi Mabodisa used the opportunity to beguile and then disabuse the lot of the mourners gathered of that erroneous sobriquet. The area, he explained, was an extension of Mabodisa ward, where people relocated when the main ward no longer had any carrying capacity for residential plots.

Except for her children, Maifale Thanki, Matlhodi Mmamoshibidu, Ramotsepane Joseph, Kgomotso Ntobi, Saleko and Ntutwane Jacob and their children - Malepe is survived by two of her younger siblings, sister Mmasentho Mooketsi and brother Sentshwe Bosane Gare. Her other siblings, Shakwe, Rauwane and Mmathari are no more.

Earlier in his eulogy before the funeral procession left for the Mabodisa cemeteries, where Malepe’s remains would be interred for eternity, Sekai paid homage to Malepe’s adroitness and industriousness, describing her as a woman of valour. In fact, Sekai was pleasantly surprised to learn that his mother, who was a “good friend” to Malepe, had been a year younger than Malepe.

Sekai told the mourners that he practically grew up in Mapotsane ward, where Malepe’s mother, Motlalepula, raised her grandchildren, among them Joseph Gare, Molemi’s elder brother and Sekai’s age-mate. In a fit of nostalgia, both Joseph and Sekai savoured the fond memories of a time past, when they would after every month wait in anticipation for a delivery truck that would drop boxes of ‘dikwakwala’ – (morsels of leftovers usually comprising slices of bread or crumbs smeared with either jam, margarine or peanut butter and then preserved) - from their mothers who were working as maids in South Africa.

Those were the days, said Joseph Gare, when parents knew and understood the value of food and would not throw away leftovers, but instead preserved them for a rainy day. That ‘rainy day’ was in fact, their children who were toiling back home in Bechaunaland!
When the mourners had returned from the gravesite, Kgosi Sekai, suddenly remembered that he hadn’t mentioned Molemi Gare, whom he said has earned honour and name among the tribespeople through his heroic and valiant deeds to become a worthy member of Mangana regiment, to which Kgosi Kgolo Kgafela II belongs. Kgosi Sekai exalted Molemi’s exemplary “bravery”, which he has shown by loyally clinging to Kgafela II during his trials and tribulations.

“When others were ashamed to be associated with Kgabo, this man, Molemi was too bold and raised his hand to be counted. He has been with Mangana regiment ensuring that all of Kgabo’s cares are provided for, I want to applaud you the people of Mapotsane ward for raising such a valiant soldier in your family,” he said. In a separate interview Kgosi Sekai promised that Kgosi Kgolo Kgafela would be installing a Chief in Moruleng in September and thereafter consider returning home.

Agitated men, some of them members of various tribal regiments, expressed misgivings during the wake as they cooked the next day’s meals at the way things have turned out in Kgatleng since Kgafela went to South Africa. They cried that anarchy was getting entrenched, citing the recent national torch tour’ stopover in Mochudi, where they said organisers had surmounted the audacity to slaughter some cattle sourced from Masama Farm. “Those cattle belong to baKgatla, the farm is baKgatla’s national treasure, who are these people to eat them?” asked an irate mourner whilst minding pots during the all-night vigil. “We want Kgabo to come back to restore law and order,” mused another.

Botswana will have deposited the instrument of the Marrakesh Treaty accession by the time it celebrates its 50th Anniversary, Assistant Minister of Investment, Trade and Industry Advocate Sadique Kebonang has promised.

Speaking during the official opening of the regional workshop on opportunities and challenges in the implementation of the Beijing and Marrakesh treaties, Kebonang said the treaty comes at a time when Botswana has taken a number of deliberate policy decisions to intergrate and provide for people living with disabilities. There has been an establishment of Coordinating Office for People with Disability (CPWD) in the Office of the President.

“The intention of placing this Unit at this level, is to develop and coordinate implementation of policies, strategies and programmes through mainstreaming them into the development agenda to empower people with disabilities,” said Kebonang. He said Marrakesh Treaty is a vehicle to facilitate more achievement in terms of addressing issues affecting people with disabilities.

The Beijing and Marrakesh treaties are the most recently adopted treaties in the World Intellectual Property Organisation (WIPO) in 2012 and 2013.  “The Beijing Treaty is on audio-visual performances whereas the Marrakesh Treaty is to facilitate access to published works for persons who are blind, visually impaired and otherwise print disabled,” he said.

He expressed gratitude for the contribution and support that WIPO and the African Regional Intellectual Property Organisation (ARIPO) continue to extend to Botswana in the development and growth of Botswana’s intellectual property system. He said the Marrakesh Treaty was an important tool that could assist governments in ensuring that fellow citizens living with blindness, visual impairment and print disabilities have equal and timeous access to information. “Access to information and knowledge is a fundamental right to all and as such the visually impaired should also enjoy this right,” he said, adding that this would help them deal with some of the social challenges they face.

Companies and Intellectual Property Authority (CIPA) Copyright Administrator, Keitseng Monyatsi said the treaty would be of benefit to people with visual impairment or blindness as they are faced with challenges of delayed access to information due to the need to acquire authorisation to convert works into an accessible format. “Modern technologies allow for works to be converted speedily and at affordable costs, but the need for authorisation prohibits or delays entities serving beneficiary persons from converting and availing personal copies to them,” she said.

In the era of cheap money, diverging monetary and fiscal policies, investment has been robust while foreign direct investment has gravitated towards the highly developed countries rather than developing countries and transition economies.

2015 saw a recovery of FDI flow in the world, which shot to US$1.7 trillion, an increase of 38 percent. The positive outlook in 2015 was attributed largely to corporate restructuring, mergers and acquisitions, which shot to US$721billion from US$432 billion in 2014. Most of the movement had little effect on actual corporate operations but on balance of payments, hence when discounted the global increase in FDI flows was at only 15 percent. In that year, greenfield investment, where a corporation builds its operations in a foreign country, was still high at US$766 billion.

It is regrettable that the movement here has the potential to contribute to productive investments, but most of the movement was for the purpose of tax evasion where reconfigurations of corporate giants was to transfer the tax domicile of a multi-national enterprise to jurisdictions that offer lower tax rates. In the year 2015, global FDI outflows  constituted of 72 percent for the developed economies while the increase in the FDI outflows from these economies increased sharply by 33 percent to over US$1 trillion. The largest investing region by value in this year was Europe at US$576 billion in FDI outflows.

Despite transition and developing economies exhibiting a downward trend in outward FDI, the giant-in-the-east, China, did exceptionally well in that its outward FDI remained high at US$128 billion. Investment flows in offshore financial hubs remain robust. In this year, it had taken a nosedive to US$72 billion, comprising flows from multinational enterprises domiciled in developing and transition economies, often being from transit FDI. The main source of ache from this, is the disconnect between locations in which the income is generated and productive investment, which has often times resulted in fiscal losses. This then calls for increased integration in investment and tax policies at the international stage.

Buoyant cross-border mergers and acquisition sales were a big lift for developed economies as Europe saw an increase of US$504 billion, which is 29 percent of global inflows. The United Kingdom though, had a dip in inflow to US$40 billion while North America almost quadrupled to US$429 billion. The report further states that in the landlocked developing countries (LLDC), FDI flows continued on a downward trend falling to US$24.5 billion.

Will Africa ever enter the premier league of investment destinations? At the world economic forum, in May 2016, it was debated by leaders and academics alike how “Africa rising” is a phenomenon of the past. Issues that were debated on included among others, that the countries are still doing well except high growth commodity based economies which have taken a hit when the commodity price plummeted. Commodity prices were of recent dampened, with aggregate demand being persistently weak and growth being sluggish in commodity exporting countries. African investors were compelled to reduce their investments outside Africa because of weaker demand from main trading partners due to low commodity prices.

Intra-African trade has been noted to play an important role in attractiveness of Africa as a premier investment destination. There was a dismal performance for intra African trade at only 3.5 percent, but the gloomy result could turn around as it is projected that by the year 2022, intra African trade could be 22 percent of total trade. The dismal performance of intra African trade was, among others, because of heavy reliance on commodities in Africa.

The report estimates that FDI flows fell to US$54 billion comprising 7 percent fall from the previous year. North Africa was boosted by Egypt, which received increased inflows by 9 percent; West Africa fell by 18 percent to US$9.9 and East Africa by 2 percent. Southern Africa, conversely, was driven by Angola with intra company loans, which drove FDI flows to a record US$1.4 billion, an increase of 2 percent. According to United Nations Economic Commission for Africa, a continental free trade area (CFTA), would bring together trade blocs from around the continent, with a combined GDP of over US$2.5 trillion and a total population of a staggering 1 billion plus. This CFTA is expected to be in place by October 2017.

Coming closer to home, statistics show that in the Southern Africa region, FDI inflows favoured the developed and highly industrialised country, South Africa. 81 percent of all inward FDI went to the country while Botswana received a mere 7 percent. This certainly calls for a paradigm shift in the FDI policy in Botswana. Foreign direct investment: Inward flows and stock, annual, 2004-2014.

This week Botswana bids farewell to one of its stalwarts, the late Justice Elijah William Modale John Legwaila who helped shape Botswana in many respects. Writing about EWMJ as he was affectionately called in legal circles or Mokgalajwe as I called him ever since I got used to him, is not easy. The 1.8metre tall moustached Mathathane born rose from being a herd-boy in the dusty Bobirwa district to become one of the country’s greatest legal minds and civil servant of all times.

He simply rejoiced in serving others and ensuring improvement of their lives. He was a team player who gave credit to others other than to himself. He was punctual in whatever he engaged in and expected nothing less from others. In 1978 Malcolm S. Forbes published a collection of his own quotations called “The Sayings of Chairman Malcolm” one of which counsels; “You can easily judge the character of a man by how he treats those who can do nothing for him.” It appeared he had Legwaila in mind because clearly that described him throughout his life.

Although Humphrey’s statement was not directed to Legwaila, without doubt, Legwaila has demonstrated that through his illustrious civil service career of this country from being a teacher, state counsel, deputy attorney general, PSP, judge president of the court of the industrial court and justice of court of appeal, he would have passed the litmus test set by former American politician, Hubert H. Humphrey who served as the 38th Vice President of the United States. In his last speech Humphrey said “the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; those who are in the shadows of life; the sick, the needy and the handicapped. “

That exactly suits Legwaila’s character. He was always ready to commend officers whom he felt deserved such complements. I have followed Legwaila’s career for many years, and what I learnt as described by civil servants and politicians alike, is that he was a modest person and believed in team work. When Legwaila retired as PSP, the then Vice President and Minister of Presidential Affairs, Lieutenant General Ian Khama was extensively quoted saying although Legwaila would never accept credit for his achievements and improvements made during his time as PSP - mainly because he was a modest person and believed in team work - he would be remembered for his fairness, patience and readiness to listen.

As secretary to the cabinet, Khama said Legwaila had also tendered advice and opinions that influenced the deliberations that took place in that forum. He said as PSP, Legwaila was never hesitant to admonish any supervisor, especially when he realised that the rights of other officers were being trampled upon. He was a humble person and treated all alike. It was not surprising that when he made his last speech as a civil servant, he said he was leaving a happy man because he was successful in his assignment. He attributed his success to the support from both his former principals - President Sir Ketumile Masire, Festus Mogae and VP Khama Ian Khama as well as the civil service at large. He left a word of advice for the civil servants which if the present cadres were to emulate, then Botswana would be a great place to live in. His advice 17 years ago was that, “Civil servants should not get promoted and localise posts and sit down without striving to improve the workforce further”.

He will be remembered amongst many things for introducing a performance based appraisal system for officers, which mproved service delivery in the public sector. So popular was the process that it got to be known as removal of “Dead wood” from the public service and earned him the nick name Raselepe. I knew and had interacted with Legwaila and his wife Marty for ages. I came closer to him in year the 2000. They were amongst the invited guests and parents who attended my wedding to Mmapula nee Mazebedi in October as they are related. Four months later, Marty Legwaila invited us to their residence together with two other newly married couples, their nephew GM Legwaila and Justice Oagile Key Dingake for a Valentine feast.

The speech was the shortest ever. “My children we have called you to congratulate you for the decision you made. We knew today you were going to take your wives for a Valentine outing. So we decided to save your money. Let’s enjoy the meals”. Interestingly they had cooked for us a five course meal which was a mixture of traditional and modern dishes.The Valentine dinner invitation opened many doors for me. In attendance to our treat was Legwaila’s younger brother, Ambassador Joseph Legwaila then based in USA, but was on official visit. Being a journo, I seized the moment and ensured that I secure an interview with the man I have known since my childhood days through the school’s current affairs programme, when we would be asked questions like, ‘who is Botswana’s ambassador to the UN?

Since that day Legwaila called me “Mokhwenyana’’ which in Marty’s language it means son in law. Legwaila played a great role in grooming, advancement and to some extent shaping me to become an award winning journalist as he never failed to either assist or constructively critique my work. As I got closer to him I realised that he had moments for everything, even to share his toughest moments as a young boy in Bobirwa and light moments abroad. One thing that he was crystal clear about is that you can take him out of his village as it happened during his studies that started at age 14 years, but no one could take Mathathane out of him.

He was a staunch member of the United Congregational Church of Southern Africa (UCCSA), Trinity branch in Gaborone where he rose to the level of a Deacon. His contribution to UCCSA is immeasurable as he used to not only give legal advice, but contributed his resources even to the Men’s fellowship of the church.

Elijah was born on 8 August, 1939. He attended primary school in Molaladau and Bobonong and South Africa. He later went to Moeng College and subsequently studied law at Roma in Lesotho and Edinburgh in Scotland. He was joined in holy matrimony to Marty Isabel (nee Makhubu). He is survived by his wife Marty, son Karabo, daughter Morongwa, daughter in law Cindy and two grand children, Elijah and Khaya. He will be laid to rest tomorrow (Saturday) in his home village, Mathathane. May his soul rest in peace

As Botswana transforms from a resource-based to a knowledge based economy, diversification through the development of Intellectual Property (IP) Policies and supporting services for innovative purposes has become critical in maintaining the country’s sustainability.
This is according to a representative from the World Intellectual Property Organisation (WIPO) and Small and Medium-sized Enterprises and Entrepreneurship Support Division, Lien Verbauwhede.

She says it is important to encourage and cultivate the use of IP for economic, social and cultural development that fosters creativity and innovation. “Universities and research institutions have been challenged to undertake research that has immediate relevance in the country and to promote commercialisation that will have practical results,” she says.WIPO has a membership of 188 countries and its mandate is to assist member states with the development of IP policies for their universities. Botswana has been selected as the first pilot country for the programme.

“It has become evident that despite the government’s effort to promote diversity in the national economy, the gap in Botswana between results created at universities and research institutions and their transformation into actual products and services for the market place is still gaping.”

Therefore she says the main goal of this initiative is to assist institutions in Botswana to set up adequate frameworks for the dissemination of knowledge. Verbauwhede further highlights that this would promote the country’s optimal use in the innovation chain and bridge the gap by assisting in the development of a solid IP Policy. Attesting to this, Deputy Permanent Secretary in the Ministry of Infrastructure, Science and Technology, Keoagile Molapong says that as institutions seem to lack infrastructure for intellectual property management, it is imperative to include institutional guidelines and better processes to manage IP.

“We are at a point where we want to see these institutions operating technology transfer offices and building active links with industry in matters of innovation and intellectual property,” Molapong states.  The government of Botswana in partnership with WIPO formulated and adopted the National Intellectual Property Development Plan during the 2012/13 year. The Plan aims to maximise Botswana’s potential to use the IP system, anchored by five pillars of; bridging gaps in governance, enhancing capacities for financing IP generation and commercialisation, developing capacities to raise awareness, offer education and training while conducting research in relation to IP and develop entrepreneurship capacities and enhancing institutional capacities.

Botswana Democratic Party (BDP) is yet to finalise and decide on the reforms that were introduced by party Secretary General, Botsalo Ntuane.

Ntuane introduced the reforms during his campaign for the office in 2015 which he termed BDP Reform Agenda Conversation; 22 Discussion Points’. Ntuane has been criticised within the party for failing to ensure that the reforms see the light of the day. He has however indicated that the reforms are not his but belong to democrats. No decision has been taken ever since the reforms were introduced.

This week Ntuane revealed that the reforms were part of the agenda during the party’s special congress held in Mogoditshane recently. He said the reforms are a work in progress and there is engagement between the party leadership and experts who have been roped in to interrogate the reforms. In the reforms, the former Gaborone Bonnington South MP cautioned the party to understand that it would not rule forever but in his view, BDP can still retain office for two more terms (10 years) either on its own or in a coalition.

“Should our tenure in power come to an end without having introduced key electoral reforms such as Proportional Representation and party funding, we will go the way of the dodo because the new rules will have no incentive to oblige us on,” he said. He called for a strong activist Central Committee and this means recalibrating their relations with government and reclaiming the party authority over government.

Responding to a question about progress on the reforms, Ntuane stated that when party leader President Ian Khama briefed the congress he indicated that they are still working on the reforms. “We are working with experts in different fields to advise accordingly. They would then produce a document that would be brought to the central committee for interrogation. There is a lot going on internally in this exercise. There has been an engagement between the experts and President Khama and different party committees where robust debates are undertaken on the reforms”, revealed Ntuane who added that once the process is concluded the outcome would be shared with the party membership.

In the reforms Ntuane reiterated the need for the enactment of the law on declaration of assets and liabilities. This he said would demonstrate the BDP’s commitment to good governance and zero tolerance for corruption and abuse of public office. Ntuane said the BDP had suffered a political backlash due to unfinished mega projects but no action was taken. He called for an activist Central Committee which must demand accountability and for heads to roll when wasteful expenditure occurs.

SABMiller Plc has suspended work on integrating the brewer’s operations with that of suitor Anheuser-Busch InBev NV, according to a person familiar with the matter, potentially throwing the industry’s biggest deal ever into disarray.

SABMiller management sent the order to employees, said the person, who asked not to be identified because the matter is private. Representatives for AB InBev and SABMiller declined to comment.The revelation came a day after AB InBev nudged its cash bid for the British brewer up to £79-billion ($103.6-billion) to account for the pound’s plunge in the wake of the United Kingdom’s vote last month to leave the European Union. That followed pressure from investors who said the deal was unacceptable because stockholders weren’t being treated equally. The acquisition is in the home stretch, receiving regulatory clearance from South Africa and the United States in recent weeks, and now risks becoming an unintended casualty of Brexit.

SABMiller’s board is still reviewing AB InBev’s improved offer and has not decided to walk away from the deal, different people familiar with the matter said. Advisers to the two brewing companies are still working on the transaction, the people said. The development sent shares of Molson Coors Brewing Co. down as much as 8.9%. The U.S. brewer is set to acquire SABMiller’s stake in the MillerCoors brewing venture as part of the deal, which is still awaiting approval from Chinese regulators. SABMiller’s American depositary receipts fell 4.6%. The news came after European markets closed.

Under the new terms, SABMiller shareholders would receive £45 a share in cash, £1 more than the prior offer. The bidder also increased the amount of cash in a cash-and-stock alternative that it crafted for the two largest investors, Altria Group Inc. and Bevco Ltd. Another SABMiller holder, Aberdeen Asset Management, said the revised proposal undervalues the company and is unacceptable because stockholders are receiving different treatment. The value of the cash-and-stock option has soared from £39 when the deal was announced last year to about £50.

SABMiller said on Tuesday that its board would consult shareholders about AB InBev’s new offer and make an announcement thereafter. Altria and Molson Coors declined to comment. The deal to merge SABMiller and AB InBev, called “Megabrew” by analysts, will create a behemoth controlling about half of the industry’s profits. The combined company will have the No. 1 or No. 2 positions in almost all of the world’s biggest beer markets, and provide AB InBev with its first toehold in Africa, where about 65-million people are due to reach the legal drinking age by 2023. – Bloomberg

Embattled management of the cash-strapped BCL mine has no way out but to fight the P748m lawsuit instituted by Inforbuild Marketing to the bitter end.

Inforbuild accuses BCL of acting in bad faith as well as wanting to steal Inforbuild idea and use it for their business gain. Botswana Guardian broke the story early this year.BCL has so far lost all the stages heard before the courts. Last week the copper and nickel miner lost its claim for damages against Inforbuild before the Court of Appeal - which is a case within a case. Inforbuild carries on the business of waste treatment and disposal solutions, water treatment and recycling and on-site management, commercial and domestic waste solutions, land remediation and rehabilitation, mineral tailings disposal and beneficiation.

Inforbuild claim follows their successful urgent interdict application on 21st January 2016, which was heard by the Lobatse High Court in which they wanted BCL restrained from implementing the Water Treatment Plant Tender, Inquiry number 11648, and from doing anything thereafter and in pursuance thereof pending the final determination of the substantive issues under the Agreement entered into by Inforbuild and BCL on 13 August 2014.

Last week a quorum of three Court of Appeal judges - Lord Abernethy, Lord Hamilton and Lord Brand - struck out the appeal with costs including the costs of the counsel to Inforbuild. BCL appealed after Justice Jennifer Dube granted Inforbuild the interdict and further ordered that BCL is interdicted and restrained from using any information which forms the subject of the agreement entered into between Inforbuild and BCL in dealings with any party without the written consent of and to the exclusion of Inforbuild pending the final determination of the substantive issues under the agreement.

Justice Dube gave Inforbuild the right to institute its action within 30 days of the date of her ruling, failing which the interdict shall lapse. Based on the CoA judgement, BCL has been served a bitter pill to swallow as their only way out which could save them face and money is either to re offer the multi million tender back to Inforbuild or since the company is cash strapped, renegotiate to possibly reduce the awarded tender amount in order to meet their budget. This is despite the fact that by their own admission their relationship with Inforbuild is sour.

What’s next?
Now that the BCL appeal has been struck out of the case brought before Justice Singh Walia by Inforbuild which was originally set for June 30 will continue on the date to be decided by the court. Inforbuild approached the court praying for damages of P747, 861, 271.00 being profit they stood to make over a period of 15 years after the installation of the plant.

They also demand to be paid P9.2 million for the time lost as well as be reinstated on a project that BCL engaged them to find a solution for the Mine’s water problem.

Botswana’s economic conditions have improved in the second quarter of 2016 owing to the stabilisation of the global commodity markets and to some extent the notable growth in diamond sales.

In just a month before the country celebrates its highly-anticipated 50th anniversary, the economic numbers jell well with what analysts said earlier in the year that the economy might be back on its feet in the second half of the year and beyond.
Econsult’s second quarter economic review compiled by Keith Jefferis and Sethunya Sejoe reveals that the second quarter of 2016 has seen some change of fortune in Botswana economy. The report reveals that the deterioration experienced towards the end of 2015 has been contained.

“This is largely the result of the stabilisation – albeit at a somewhat subdued level - of global commodities markets,” the report said. The economic review also says after a dismal performance in the second half of 2015, the recovery in sales of rough diamonds that started in the first quarter of 2016, continued through the second quarter. “The reduction of rough supplies in 2015 had the desired effect of unblocking the diamond pipeline – the downstream diamond traders, cutters, polishers and jewellery retailers – and restoring demand for rough. This recovery provided a major boost for export earnings and government revenues, such that the large balance of trade and fiscal deficits experienced towards the end of 2015 should have been eliminated, or at least significantly reduced,” said the Econsult report.

The Jefferis report however said this doesn’t mean that the diamond market is out of the woods yet as consumer demand for jewellery remains weak, especially in China, meaning that even a restored flow of diamonds through the pipeline is at lower levels than in recent years. The economic review report also stated that the ability of mid-stream players to hold diamond stocks is also under pressure, especially with the announcement by Standard Chartered Bank that it is withdrawing from the financing of diamond firms, which will take around $2 billion out of the global industry.

The economic review stated that even though the market has stabilised, major producers are being extremely cautious, and Debswana has no plans at present to increase production above the revised target of 20 million carats for 2016. Other signs of weakness are reflected in the decision by one of Botswana’s smaller diamond producers, Gem Diamonds, to reduce production at the Ghagoo mine. “It may also be one reason why Lucara Diamonds’ Lesedi La Rona gem from the Karowe mine – the largest rough diamond found in over 100 years – failed to reach its reserve price when put up for auction in London in late June. More positively, another small mine, Kimberley Diamonds’ Lerala Mine, re-opened in Q2,” said the report.

The economic review noted that the stabilisation of the global rough diamond market is also reflected in other commodities markets. It said by the end of June 2016, crude oil prices had risen by 85 percent from their mid-January lows, while copper and nickel prices have risen by 12 percent and 22 percent  respectively. The report stated that the recovery in base metals prices, while welcome for Botswana, does not, however, fundamentally change the critical situation facing the country’s largest copper-nickel producer, BCL.

“The company’s costs of production are well above current price levels, even with the recovery, and it is facing problems of low-grade ore, overstaffing, and the constant expectation that it will operate as a social welfare provider as well as a commercial entity,” said the report. The report said the company has high levels of debt, and as a loss-making fully government-owned entity, is dependent upon government’s financial guarantees and cash injections for its survival.

The economists said undoubtedly, BCL’s survival is critical for the town of Selebi-Phikwe and the surrounding region, given that – apart from government - BCL is the largest employer in central and north Eastern Botswana.On a related matter, this week De Beers, a leading diamond producer and marker’s $520m of rough-diamond sales at its most recent auction has raised hopes that the industry can avoid a slowdown in the second half of the year.

While this was the smallest sale by the world’s biggest supplier so far this year, continued demand during a typically slow period is being taken as a good sign by analysts including Edward Sterck at BMO Capital Markets.”This looks like an encouraging result given the seasonally quiet time of year in the diamond market,” London-based Sterck said in a research note on Tuesday.

President Ian Khama is said to have rejected a proposal by Botswana Democratic Party (BDP) Members of Parliament to have their salaries increased before they could support the Presidential retirement package Bill.

Information reaching this publication is that the president has told his party MPs to their faces that ‘it would never happen.’ The BDP MPs had wanted to take advantage of the Bill to have their pensions and gratuities reviewed by way of increasing their monthly salaries. The President’s (Gratuity, Pensions and Retirement Benefits) Bill was expected to be debated in the current Parliament session and possibly made to pass but due to this development it had to be delayed with the hope that the MPs would one day during their party caucus be able to convince the president.

Parliament will go for recess next week and the Bill will possibly only return next year during the winter session which is specifically for Bills unless there is an opportunity to squeeze it during the State of the Nation Address in November this year or during the Budget speech session in February next year.

The Bill, which opposition MPs have vowed to reject states among other things that the President shall upon the dissolution of Parliament, or immediately upon ceasing to hold office as such be entitled to receive a gratuity equal to 30 percent of his or her current monthly basic salary multiplied by the number of months completed by him or her as President. The President would also receive a tax free monthly pension equivalent to monthly basic salary attached to the office of President at the time that he or she ceases to hold office, or 80 percent of the incumbent President’s salary, whichever is greater.

During BDP Parliamentary Caucus meeting last week Tuesday, the MPs confronted the President requesting that Minister for Presidential Affairs and Public Administration be directed to draft a Bill that would increase the salaries together with those for Councillors and Dikgosi. The issue was supposed to be further discussed this week, however, Botswana Guardian can safely confirm that it was not discussed at the party caucus meeting, as Khama was not in attendance due to “other official engagements.”The MPs according to insiders tried to push Khama against the wall but the president wouldn’t budge. “He has told us that it would be impossible to grant what we wanted. He told us to our faces that if that is the case then we could also drop the Presidents’ retirement package Bill. We want to continue to engage him on the matter so the Bill might have to be moved to the next session while we dialogue with him”, said a BDP MP who attended the meeting.

Another MP revealed that the President made it clear that he would not buy into the idea because there are no funds. “He told us that it would be wrong to make increment for politicians while the public servants have for long not been given increment. As a straight talker he made it clear that if we want to ride on the Presiden’ts Retirement Bill, it is better the Bill is scrapped off. He indicated that as for him, he is okay with the current arrangement for presidents vacating office and would not be held to ransom over the proposed Bill”, said the MP who is also a Minister.

Government Chief Whip Liakat Kably said the President’s Retirement Bill was discussed at the meeting but could not shed more light on the issue. “Look at the caucus we discuss a lot of things that affect the party and the country because we are the government of the day. We discuss Parliament issues, that is questions, motions and Bills but it is not for media consumption”, Kably said adding that if the party feels what was discussed should be shared with the media proper arrangement would be made for such to happen.

BDP Deputy Secretary General, Shaw Kgathi said as BDP MPs they are ready to debate the Bill once tabled in Parliament. He indicated that there is no way they would sabotage the Bill because according to their understanding the Bill allows the country to save a lot of money. “The Presidents retirement package Bill is lined up for debate in Parliament. If you put value to it there would be much funds spending reduction.

It is also for the dignity of the presidents’ wives and families. Under the current arrangement when the president dies, the widow is vacated from the house because it is state property but if we build for them it is much better and goes a long way proving that we love and respect our presidents”, stated Kgathi. Kgathi who is also the Minister of Defence Justice and Security said as to what transpired during the party’s caucus meetings he would leave it to the media for their continued speculation. “With what was discussed at the caucus I would let you carry on with what you have been reporting about the Bill”.