BOTSWANA LOSES CLOSE TO P200BILLION TO ILLICIT MONEY

 TRANSFERS

Botswana could be losing billions of Pula annually as money leaves the country unlawfully, the latest report by Global Financial Integrity (GFI) has revealed. The authors of the survey, Dev Kar and Joseph Spangers, say the findings underscore the urgency with which policymakers should address illicit financial flows. The survey carried out by Global Financial Integrity (GFI) states that Botswana might have lost approximately US$20 billion About P200 billion between the years 2004 to 2013, through illicit money transfers. The research tracks the amount of illegal capital flowing out of 151 different developing and emerging countries over the 10-year period from 2004 through 2013, and ranks the countries by the volume of illicit outflows. Botswana ranks 66th in the entire world with an average of U.S 1,368mln.

In the year 2004, about $13.7 billion IFFs were recorded in Botswana with about $1.1 billion recorded in 2004 and US$1.2 billion in 2013. On trade misinvoicing outflows, Botswana recorded a cumulative $12.8 billion. The reports states that IFFs (illicit financial flows) mostly originated from corruption, illegal resource exploitation and tax evasion, which include smuggling and transfer mispricing. As a percentage of GDP, Sub-Saharan Africa suffered the biggest loss of illicit capital. Illicit outflows from the region averaged 6.1 percent of GDP annually. Globally, illicit financial outflows averaged 4.0 percent of GDP.

According to the December 2015 report from Global Financial Integrity, “Illicit Financial Flows from Developing Countries: 2004-2013,” finds that developing and emerging economies lost US$7.8 trillion in illicit financial flows from 2004 through 2013, with illicit outflows increasing at an average rate of 6.5 percent per year—nearly twice as fast as global GDP. South Africa is the worst source of IFF on the African continent with IFFs mostly originating from corruption, illegal resource exploitation and tax evasion.

Zambia deploys 1,000 police to quell riots targeting foreigners, mostly Rwandans

ZAMBIA has deployed more than 1,000 police officers in the capital, Lusaka, to subdue riots targeting shops owned mainly by Rwandan nationals that left at least two people dead, police said.

“They are slowly dying down; we can’t say they’ve died out,” police spokeswoman Charity Munganga-Chanda said by phone Wednesday. “When we receive a report we move in.”

Looting started Monday in a densely populated low-income area in the west of the city of 2.5 million after crowds accused a Rwandan shop-owner of being involved in suspected ritual murders that took place nearby since last month.

They quickly spread to nearby poor neighbourhoods where grocery stores owned mainly by Rwandans were ransacked. By Tuesday, riots erupted in slums across the city.

The ruling Patriotic Front party said on Tuesday that as many as five people may have died in the riots. Munganga-Chanda put the death toll at two, identifying the victims as Zambians who were burned alive April 18.

Before the looting began, at least six Zambians had been found murdered in compounds around the Zingalume area in the west of the city. The bodies were missing parts including hearts, ears and genitals, leading to suspicions they were the victims of ritual killings. Home Affairs Minister Davies Mwila said police have arrested 11 people in connection with the murders.

Police detained more than 250 suspected looters as of Tuesday, Munganga-Chanda said. Shops owned by Zambians were also among the more than 60 that have been attacked.

Rwandans, many of whom are former refugees, sought protection at police stations around Lusaka, Mwila said in comments broadcast on state-owned ZNBC television Tuesday.

Government free livestock movement and consumption.

The Department of Veterinary Services (DVS) on Friday announced that the slaughter of livestock for local consumption on social occasions such as weddings and funerals will now be allowed. 

In an update made late Friday, the government announced that movement of fresh milk for pasteurisation under supervision of dairy officers is also permitted. The statement follows the reported incursion of a buffalo at Moreane crush in Lotlhakane East, near Kanye early this past week. 

Following the incursion, the Department of Veterinary Services (DVS) banned the movement of cloven-hoofed animals and their products in, out and within Zone 11 to avert a possible outbreak of Foot and Mouth Disease (FMD). 

Subsequent to the imposition of movement in Zone 11, through a press release on April 12th 2016, the ministry of agriculture says cooked meats, processed meats and matured deboned beef are allowed into and out of the zone. 

The director of DVS Letlhogile Modisa said Friday that other movement restrictions remain in force. 

In an earlier press address, held on Wednesday, Permanent Secretary in the Ministry of Agriculture, Boipolelo Khumomatlhare noted that the sighting of a buffalo in the Zone 11 area has necessitated the imposition of movement standstill in the zone. 

“Exports of beef to all trading partners have been suspended with immediate effect. Trading partners (regional e.g. RSA and international e.g. European Union) have been notified and would be updated accordingly once investigations are concluded. “ 

Khumomatlhare explained that his ministry received a report from the Department of Wildlife and National Parks on April 11th 2016, that some farmers had spotted animals suspected to be buffaloes around Moreane crush of Letlhakane East extension area in Southern District near Kanye village on April 10th 2016. 

“I am happy to inform you that the Botswana Police and Department of Wildlife and National Parks moved swiftly on April 10th 2016 upon receipt of reports of suspected buffalo sightings, to mount search teams.

Department of Veterinary Services officials joined the search on April 11th 2016 and before end of the day one (1) buffalo had been located and gunned down.

Supporters of Zimbabwe's opposition Movement for Democratic Change (MDC) party protest against President Mugabe in Harare.

Harare (AFP) - Demonstrators in Zimbabwe held the largest protest against President Robert Mugabe in nearly a decade on Thursday, marching through central Harare demanding that the 92-year-old leader make a "dignified exit."

According to Harare (AFP) Under the watchful eye of riot police, more than 2,000 supporters of the Movement for Democratic Change (MDC) carried anti-Mugabe placards and sang party songs before their leader Morgan Tsvangirai gave a speech attacking Mugabe's rule. Anti-government protests have often been brutally broken up by police under the authoritarian regime of the president, who has been in power since independence in 1980.

Mugabe remains active but his increasingly fragile health has sparked intense speculation over his successor and the fate of the country when his rule comes to an end. Zimbabwe has suffered years of economic collapse and mass emigration during an era marked by intolerance of dissent, vote rigging and accusations of human rights abuses.

"Mugabe has no solution to the crisis, We are here to tell Mugabe and his regime that you have failed. We are not demanding an overthrow of the government... We are demanding a dignified exit for the tired Mugabe. It's time Mugabe listens to the voice of the people. The people shall liberate themselves." Tsvangirai said in a brief speech to supporters gathered in Africa Unity Square wearing T-shirts in the party's red colours.

The march, which had been authorised on Wednesday in a last-minute court ruling, was peaceful, with police on duty in full riot gear armed with batons and water cannon.

"This is a demonstration against poverty and corruption," Douglas Mwonzora, an MDC party spokesman, told journalists. We have an empty promise of 2.2 million jobs which are not there. We have massive corruption." Stated Harare (AFP).

The MDC has vowed to hold more protests around the country, which is also beset by severe food shortages worsened by its economic decline since the controversial seizures of white-owned farms since 2000.

"Old clueless Mugabe must go," read one protest placard, while another said "Enough" in Zimbabwe's three main languages. Marchers were greeted by blaring car horns, and clapping and whistles by onlookers, including some people waving from windows in high-rise buildings. Stated Harare (AFP).

Mugabe, who still gives fiery 90-minute speeches on his feet, is expected to stand again for election in 2018.The ruling ZANU-PF party has been riven by factional fights over his succession, although officials have sought to downplay any divisions. Regime loyalist Vice President Emmerson Mnangagwa is viewed as the likely next leader, with Mugabe's wife Grace, 50, also a possible candidate.

In the 2013 presidential election, Mugabe won 61 percent of the vote against 34.9 percent recorded by Tsvangirai, who dismissed the result as rigged. The MDC has suffered several splits and appeared to have lost public profile in recent years.

David Sibanda, 40, one of the protesters at Thursday's rally, said he had not found formal employment since completing high school.

"We want the government to create jobs and for them to craft policies that attract investment," said Harare (AFP).

The last big demonstration in Harare was in 2007 when police beat up Tsvangirai and other political leaders who had gathered for a prayer meeting.

GDP SHRANK 1.9% IN 2015 AS MINING SECTOR WOES CONTINUES

According to Statistics Botswana agency  on a year-on-year basis, gross domestic product (GDP) shrank 1.9 percent compared to a 3.9 percent contraction in 2014. The decline on an annual basis has been attributed to a fall in mining output, which slipped 30.5 percent in the fourth quarter.

Due to low commodity prices, Botswana’s mining sector continue to face depressed sales, which has resulted in mines operating at a firm loss and heightened fears of job losses. Surviving mining companies and sub-contractors are desperately seeking cash injection to stay afloat.

Statistics Botswana says the real mining value added also decreased significantly in the third quarter of 2015 by 40.6 percent. The decline in the value added is attributed to the continued weak recovery in the global markets, particularly in the major markets for diamonds. In the quarter under review, copper and diamond production decreased by 59.7 and 20.4 percent respectively. During the fourth quarter of 2015, Mowana and Thakadu copper mines were on provisional liquidation while there was also a plant shutdown at the BCL copper mine during the months of August, September and October 2015. All other industries recorded positive growth with the exception of Mining, Manufacturing and Agriculture which decreased by 30.5, 1.9 and 0.7 percent respectively.

Botswana mining sector is expected to shed thousands of jobs in a massive hemorrhage that runs across the sector, from copper to diamonds.

The hardest hit, however  is state-owned BCL, Botswana's biggest copper miner, which is expected to cut as many as 2,000 of its 6,000 workforce as it streamlines operations in the face of weak copper prices, currently at six-year lows. London-listed Gem Diamond expects diamond production at its Ghaghoo mine in central Botswana to fall by more than half this year due to depressed demand for diamonds globally. It may have to lay off more than two-thirds of its workforce as it restructures to cope with the weak market.

Meanwhile the quarterly data also shows that the domestic economy grew 4.9 percent quarter-on-quarters in the three months to end-December. This is a revised 3.5 percent contraction in the third quarter of 2015.

Khama proposes Moitoi for AU Commission

President Ian Khama (http://www.gov.bw/en/ministries--authorities/ministries/state-president/office-of-the-president/about-the-office-of-the-president/) who is the Chairman of the Southern African Development Committee (SADC) (http://www.sadc.int/) has nominated the Minister of Foreign Affairs and International Cooperation, Pelonomi Venson Moitoi, (http://www.mofaic.gov.bw/) to contest the chairmanship of the African Union Commission in July this year (http://www.au.int/en/commission).

Ministers of foreign affairs of the SADC countries met in Gaborone last month and endorsed Venson-Moitoi as the southern African region candidate for the position of the Chairperson of the AU Commission.

Three candidates from South Africa(http://www.dirco.gov.za/department/profile_mashabane.html) , Malawi(http://www.foreignaffairs.gov.mw/index.php/about-us)and Botswana were initially in the race but after deliberations, Venson Moitoi received the nod.Venson Moitoi was born in 1951 and attained a master of science degree in administration from the University of Central Michigan in the United States in 1987 (https://www.cmich.edu/Pages/default.aspx).

Although Venson Moitoi is still new to international relations however, her experience in politics sets her at an advantage. She has been the deputy secretary general of the Botswana Democratic Party (BDP)( www.bdp.org.bw/Documents/CONSTITUTION%20OF%20BDP.pdf) from 1999 to 2003 and was elected to Parliament in 2004. Before her current foreign affairs assignment, her other ministerial posts included communications, science and technology; works and transport, trade, Industry, Wildlife and Tourism; and Education.

In an interview, Venson Moitoi confirmed that President Khama nominated her and SADC endorsed her. She said she would answer other questions after briefing her constituents.Venson Moitoi might battle it out with Algeria’s Foreign Minister Ramtane Lamamra (http://www.un.org/africarenewal/africaga2015/algeria-he-mr-ramtane-lamamra-minister-foreign-affairs), who has previously served two terms as a plain AU commissioner. His eligibility is however reported to be in question but that will be determined in due course. Khama and SADC are said to be banking on Botswana’s good regional and international reputation. Despite this, Botswana’s attitude towards the African Union has been wanting as the president hardly attends its meetings. Some African leaders might consider Botswana to have been undermining them by its non-attendance and waking up the next day to seek their support.

 

Botswana’s central bank to keep an eye on Barclays

Bank of Botswana, the country’s regulator of banks will closely monitor developments at Barclays Botswana following a decision by Barclays plc to sell its controlling stake at Barclays Africa.

Barclays plc owns 62,5 percent of Barclays Africa, which in turn owns a majority stake at Barclays Botswana, the lender that among the top four banks in the country.

In statement, BoB spokesperson Andrew Sesinyi said the central bank is watching latest development and it will play it regulatory role. “Consistent with Bank of Botswana mandate, as enshrined in Bank of Botswana Act…the bank will monitor developments with a view to ensuring the safety and soundness of Barclays Bank operations in the country,” he said.

This week, Barclays plc, the majority shareholder at Barclays Africa indicated to the market that it will sell down its stake at the African operation in the next two to three years. The bank said it is now concentrating on its United Kingdom and international banking units. The bank has also cited regulatory changes for quitting the continent where it has been operating for more than 100 years.

                             Court rules in favour of UB UDC

Ten UB Umbrella for Democratic Change (UB UDC) SRC members had contested Kgosiekae’s decision to issue an election writ and appoint a chief election officer.

The applicants took the UB SRC, Kgosiekae and Moteti to court seeking an interim order that would compel them to retract Kgosiekae’s decision to issue an election writ and appoint a chief electoral officer  prior to the UB SRC April 13, 2016 elections. Representing the respondents was Precious Ramaja who said they did not contest the applicant’s argument that the election writ be retracted and a constitutional meeting be held to appoint the chief electoral officer.

“We agree with the applicants that the decision taken by the SRC president to issue an election writ and appoint a chief electoral officer be set aside,” she said.

According to Ramaja, they are of the view that the respondents should not be awarded the cost and they don’t know where the applicants took the authority to seek costs since the power of an attorney doesn’t allow them to seek such.

“In their draft orders the applicants have an instructive order of excluding the SRC and its president from attending the meeting where a chief electoral officer will be appointed. We are of the view that the order will intrude into the administration powers of the SRC, we pray that the order be struck out or amended.” She said.

Kago Mokotedi and Keresepe Sekwenyane represented the applicants. Mokotedi argued that it would be highly erroneous if they came to court out of their pockets. Mokotedi said, the respondents were supposed to bear the costs since they have written several letters requesting the respondents to withdraw their decisions.

“I don’t see any difficulty in solving the issue of costs, the respondents cannot cheery pick what can be taken and left out of the draft order, and these are the same people to whom we have written several letters requesting them to retract their decisions. The respondents have chosen not to oppose our application. We don’t know why they don’t want to oppose the merits of the arguments. It will be highly erred if we come to court out of our pockets.” he said.

Justice Godfrey Radijeng ordered that the decision by the UBSRC president, Kgosiekae of March 30, 2016 issuing a writ of elections for 2016/2017 UB SRC be set aside. His other decision of appointing an electoral officer to manage and supervise the elections was also set aside. Radijeng also ordered that the decision taken by Cedric Moteti confirming the decisions taken by UB SRC president issuing a writ of elections be set aside.

Radijeng further ordered that the SRC members should proceed to meet and appoint the electoral officer and set a date for such elections in terms of student representative council constitution. Radijeng said he agreed that costs were due and were supposed to follow suit. “I agree that the costs are due and they should follow suit, the applicants draft order is granted with amendments and the respondents will bear the costs,” he said.

Botswana nickel miner to retrench workers, sell private jet to survive cash crunch.

The cash-strapped Botswana nickel producer Bamangwato Concession Limited (BCL) has announced plans to retrench thousands of workers and dispose of non-core assets, including a private jet, in order to survive a crippling internal liquidity crunch that has been aggravated by the slump in the demand and price of nickel on the global commodity market.

According to Molosankwe, BCL spokesperson said the company was reorganizing its main strategic businesses to survive the cash crunch and regain viability. To achieve that, the company had started consulting its employees, the Botswana Mine Workers Union (BMWU) and government, which owns the mine, on the possibility of retrenching up to 2 000 workers to cut its huge wage bill.

“The company will duly consult with employees and relevant stakeholders in accordance with established and known consultation structures according to the labor laws of Botswana and collective agreements between the BCL and worker unions, in line with our organizational values which include treating the people who work for us with dignity and respect. The implications of any decision taken in this regard will be carefully considered in the broader context, which is transforming the organization into a viable entity and ensuring its long-term survival,” Molosankwe said.

 

The retrenchment process will run alongside a cocktail of cost-cutting measures which include the disposal of most noncore assets to raise capital and fast-track the operationalisation of a new open-cast mine in a bid to buoy the fortunes of the troubled nickel giant

“The company is involved in evaluating measures and processes to cut its costs of operation and such measures which include but are not limited to the following, a fast-tracking of the Selkirk open pit mine in Tati to ensure that it is operational by the end of the year. We also plan to reduce utility costs and increase the utilization of the newly refurbished smelting plant (in Selebi-Phikwe) through attracting nickel concentrate from outside and the disposal of non-core assets such as the BCL private jet aircraft, among others,” Molosankwe said.

Since the beginning of the year, BCL has been dogged by a financial crisis which has since been worsened by its failure to sell huge nickel stocks due to the global downturn in the demand and price of nickel prices. The cash crunch has hit the company’s expansion plans by stifling its exploration and new mine development capability amid reports that its available nickel resources in Selebi Phikwe are on the verge of running out after 50 years of continuous exploitation.

Botswana GDP grew 4.9 pct in Q4....

Botswana's economy grew 4.9 percent quarter-on-quarter in the three months to end-December versus a revised 3.5 percent contraction in the third quarter of 2015, the statistics agency said on Thursday.

On a year-on-year basis, gross domestic product (GDP) shrank 1.9 percent compared to a 3.9 percent contraction in 2014.

The decline on an annual basis was attributed to a fall in mining output, which slipped 30.5 percent in the fourth quarter, according to Statistics Botswana.