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DTC Cumulative Price Increases For 2008
As part of Diamond Trading Company’s commitment to its Sightholders, the DTC has today shared a summary of its rough diamond price adjustments so far in 2008, up to and including the forthcoming August Sight. DTC now provides this information at three points during the year - ahead of annual results, and in advance of the two major trade shows in Las Vegas and Hong Kong.
The average cumulative increase in DTC rough diamond prices since the beginning of 2008 has been 16.0%. Some boxes have been affected more than others, and the strongest increases this year have been predominantly in rough that produces highly sought after SI+ and +1ct polished.
“The DTC takes a long term, sustainable view on its pricing and decisions are influenced first and foremost by demand for polished”, commented Mahiar Borhanjoo, Executive Director of Sales and Client Services, DTC. “So far during 2008 DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods.”
ABC Botswana Retains Domestic Ratings
ABC Botswana’s domestic Botswana Pula credit ratings have been maintained at BBB (triple B) in the long-term and A2 (single A two) in the short-term.
According to GCR Banking analyst, Dirk Greeff, the implied financial and technical support of ABCH, which had a consolidated asset base of US$513m and total capital & reserves of US$52m as at 31 December 2007, was favourably considered. Following a substantial rise in risk weighted assets, capitalization levels retreated from previous highs. As such, the bank’s risk weighted capital adequacy ratio declined from a high of 30% in 2006 to 17%, whereas the capital to asset ratio declined to 7.4%.
Asset quality deteriorated for a second consecutive year, with the capital value in arrears position increasing from roughly 10% to around 14% of gross advances. Furthermore, arrears coverage declined, resulting in a considerable rise in the bank’s net nonperforming loan (“NPL”) ratio to around 7% and 35% of net loans and capital respectively.
Earnings growth came under pressure following a shortfall in both interest and non-interest earnings, thereby resulting in after tax earnings underperforming budget by roughly 65%. As such, key profitability ratios weakened, with ROaE and ROaA declining to 11.4% and 0.6% respectively (F06: 20.6% and 1.1% respectively). Although deposits are largely short dated and of a wholesale nature, liquidity risk is mitigated through maintaining a high level of cash and liquid assets and protecting core deposits.
Licences Suspended for
Mobile Tourism Operators
Minister of Environment Wildlife and Tourism, Mr. Kitso Mokaila says Illegal operations and increased activity by mobile operators, especially in the Northern Protected Areas, are still a concern to his Ministry.
As a result the Tourism Industry Licensing Board found it necessary to appoint a Task Force to re-iook into the matter. This necessitated a temporary moratorium on the issuing of mobile operator licences, he said.
Liquor for Tourists
Government‘s concern at the rate of alcohol abuse has resulted in the recent changes in the Liquor laws by government; as a consequence Cabinet had directed the Ministry of Environment, Wildlife and Tourism to study the Liquor (Amendment) Regulations of 2008 and to come up with regulatory measures that will govern the sale of liquor to non- residents of tourist accommodation facilities, Tourism Minister Mr. Kitso Mokaila revealed recently.
The Minister said he had been informed that the Department of Tourism has consulted widely with stakeholders and it may be necessary to incorporate some of the recommendations in the Tourism Bill or even to review some clauses in the Liquor Regulation 2008.
Project Management Dialogue
and Book Launch
On Friday August 29, 2008 EBAT Consultants (Pty) Ltd will host its inaugural Project Management Dialogue which would present an opportunity for discussing topical project management issues directly affecting the Botswana economy. Perspectives would be given from the stand point of Government, the Private Sector and other players including the Media. The half a day session starting at 2.30 pm will take place in the welcoming City of Francistown, where facilitation is expected of Tati Nickel Mining and Native Impressions.
Owing from the resurgence of mining within the Greater Francistown area, presenters include among others, African Coppers, Debswana, Tati Nickel, and BOCCIM.
The day will conclude by a launch of a book entitled Facilitative Project Management in Botswana: Contextual Interrogation Beyond Construction by the Ministry of Finance and Development Planning, while Vote of Thanks and Official Closure would be presented by the Ministry of Lands and Housing. About 70 specifically selected delegates will grace the occasion.
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