Investor Mail

05/11/2025

💰 When the Government Earns Less, Listed Companies Feel It

When government spending slows down, it’s not just projects that stop — businesses feel it too.

Botswana’s biggest source of money has been diamonds. But diamond sales have dropped, meaning there’s less money flowing through the economy.

Because cash is tight, the government has been borrowing more, even from the same investors that banks borrow from. That made it more expensive for banks to get money — some now borrow at around 15-20% interest, according to economists.

This hit profits hard. 💥

👉 Some banks, like Absa Bank Botswana, had to pay higher interest to borrow money and this caused their profits to drop by 25% in the first half of 2025.

Meanwhile, government payment delays have hurt other companies, too.

📞 BTCL said its rising unpaid bills were “largely due to the situation we saw with government, especially after September (2024), where there was a slowdown in payments of bills, which continued all the way to the end of March (2025).”

🛒 Sefalana also had to cut its dividend from 65 thebe to 50 thebe to keep its cash safe.

“There was a time when we had some large debtors due to us, government debtors,” said Finance Director Mohamed Osman.

When the government has less money to spend, the whole economy slows down — companies get paid late, banks earn less, and even investors get smaller dividends.

The slowdown ripples through listed portfolios.

29/10/2025

Price of NewPlatinum ETF has increased 78.5% this year

➡️ The NewPlatinum ETF has gone up from P125.75 in January to P224.50 by October 29, 2025.

➡️ That means its value has grown by about 78% this year. 📈

➡️ This instrument is listed on the Botswana Stock Exchange and follows the price of platinum metal.

➡️ So, when platinum prices rise in the world market, the NewPlatinum ETF price also goes up.

28/10/2025

Why Share Prices Are Rising on the Botswana Stock Exchange 📈

If you’ve been watching the Botswana Stock Exchange (BSE), you’ve probably noticed that share prices have been climbing.

But what’s behind the rise?

➡️ Strong company performance
➡️ Good dividend payouts have helped push prices up.

But that’s not the whole story.

➡️ A lot of the fuel behind this rally is actually coming from pension funds money.

Here’s what’s happening:

Botswana’s pension funds are now required to invest at least 50% of their money within the country by 2027. Because of that rule, they’ve been bringing billions of p**a back home, looking for local investment opportunities.

By June 2025, pension funds had invested 55% of their total P158 billion assets outside the country, according to official data.
This means that Botswana investments are at 45% and a lot more money still needs to be redirected into local assets — including companies listed on the BSE.

As Bifm Chief Investment Officer, Ms. Bhina Botlhe-Tshukudu, explained during the Bifm Breakfast Seminar:

“With you bringing in additional assets (money), you then go look for where you can place these funds.”

And right now, those funds have been flowing into listed companies. Market participants observed that investors are sometimes buying even overpriced shares just to have a place to invest.

“We are seeing that the demand is really driving the asset prices,” said Ms. Botlhe-Tshukudu.

"We note that the prices will go up on very small trades, which just shows… that someone is willing to pay up to get those securities, no matter the cost," Ms Botlhe-Tshukudu said.

And if you happen to own shares in some of those BSE-listed companies — that wave has been quietly lifting your wallet too.

27/10/2025

NewGold or NewPlatinum — What’s Your Pick? 💰

If you had P10,000 back in January, where would you have put it — in NewGold ETF or NewPlatinum ETF? 👀

🏃‍♂️💨 NewGold took off fast early in the year, but NewPlatinum found its groove halfway through and started catching up.

By September, your P10,000 in NewGold would’ve grown to P15,140… but Platinum took the lead — hitting P15,670! 🥇
Two metals.

One race to grow your money. So, which one would you bet on? 💰✨

ETFs follow the price of the two metals — and you can add them to your portfolio if you want a piece of the metals market. They’re bought just like shares (sold in units) on the Botswana Stock Exchange.

22/10/2025

It’s tough times and be grateful for those dividends.

21/10/2025

FNB Botswana Pays Dividend, Acknowledges Shareholders’ Expectations Despite Slower Growth

The total dividend declared by FNB Botswana for 2025 is 33 thebe per share, down 23% from last year.

Acting CFO Mr. Orapeleng Senwelo told investors and analysts during the presentation of results that the board approved a final dividend of 15 thebe per ordinary share, adding to an interim dividend of 18 thebe declared mid-year.

Last year, shareholders received a total of 43 thebe per share.

“The decision on the dividend was carefully considered. We took into account many factors, including economic challenges, and the need to ensure the bank remains well-capitalised for the future,” Mr Senwelo said.

He added:

“At the same time, we recognise that our shareholders expect a return on the profits made. This is why the final dividend is lower at 15 thebe per share.”

20/10/2025

When Letlole La Rona (LLR) released its latest results, one topic kept buzzing among investors — that Kenya investment.

A few years ago, the company borrowed about P100 million to invest up north. But the project didn't pan out. For two to three years, Letlole's local operations have been carrying the weight of that loan, which is why shareholder payouts have been shrinking.

To their credit, management really tried to fix it. They crunched the numbers, flew out to the site, and tested every possible turnaround idea. But when it became clear the property wasn't earning its keep, they did the sensible thing — cut their losses and walked away.

Still, Ms. Kamogelo Mowaneng, CEO, says they're not giving up on cross-border growth just yet. The company has a 10% outside Botswana allowance for future investments. It's a small but clear sign they still see value in looking beyond home soil.

But that Kenya hit still stings: dividend yield is down from 5% to 4%. But part of that is because the share price has gone up, which makes the dividend yield look smaller.

By the end of this year, Letlole shareholders might finally be talking about the Kenya investment as a thing of the past — if Ms. Mowaneng's promise holds up.

17/10/2025

More than 80% of shareholders at Botswana Telecommunications Corporation (BTC) Annual General Meeting on 23 September 2025 voted against proposed retainer pay for the company’s directors in the coming year.

According to a recent communique on the Botswana Stock Exchange, BTC shareholders representing 659,528,406 shares—about 63% of all BTL shares—attended the meeting in person or by proxy.

The proposal had suggested a retainer of P100,000 for the board chair and P80,000 for other board members. Sitting allowances were to stay the same: P19,000 for the chair, P15,000 for committee chairs, and P13,000 for board members. Shareholders did approve last year’s director pay for the year ended 31 March 2025, though over 18% had voted against it.

15/10/2025

14/10/2025

Imara Capital Securities says the BIHL Group shares could rise to about P24.46. This is only about 6% higher than the current price of P23.02.

In a research note, Imara Capital recommended that investors hold on to the shares of the company, citing modest return expectations and ongoing earnings challenges.

So far this year (from January), Imara indicates that the share price of the company has risen by just over 2% to the current P23.02. The broker’s research shows that the company also pays good dividends—about 4.6%—which is almost double what peer companies in the region are paying.

During the first half of 2025 (January 1 to June 30), BIHL made a profit before tax of P201.1 million, which is about 11% higher than the P181.9 million it made in the same period last year.

14/10/2025

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