Botswana: Molale Hands Cheques to Government, BTCL

| April 28, 2016

Gaborone - The Minister for Presidential Affairs and Public Administration, Mr Eric Molale has officially handed over cheques from the proceeds of the Initial Public Offering (IPO) of Botswana Telecommunications Corporation Limited (BTCL) shares to the beneficiaries.

The beneficiaries are the government and BTCL, which received the funds for the offer as part of the IPO.

The Minister of Finance and Development Planning, Mr Kenneth Matambo received the government's P212 million cheque as proceeds from the sale of shares, while the permanent secretary in the Ministry of Transport and Communication, Mr Neil Fitt received BTCL's P250 million cheque.

In his remarks at a ceremony that was held to officially handover the two cheques to beneficiaries, Mr Molale said the government's share would be used to supplement national budgetary requirements, while BTCL's share would go towards its growth and expansion.

The successful IPO and listing of the shares on the Botswana Stock Exchange, Mr Molale said, was the first and successful privatisation of a public entity in Botswana.

He noted that the high public interest as well as demand for the shares by citizens resulted in an oversubscription of about 1.7 times.

The oversubscription, he said, showed the commitment that "our citizens have towards supporting the government in its initiatives of diversifying its economic base.

"In addition, it indicates that Batswana are truly investors in their own right. I would like to thank Batswana in this regard. It further demonstrates that the government's objective of empowering Batswana through the ownership of public assets is beginning to bear fruit," he added.

The process of privatising part of BTCL, Mr Molale said, had been worth it as "we have achieved one of government's key privatisation objectives of empowering Batswana by offering them the opportunity to be owners, of one of the country's largest public entities."

He said Batswana were now not only customers of BTCL, but could now share in the growth and profitability of the company, and generate wealth for their livelihoods. "I am confident that utilisation of these funds cumulatively will go a long way towards facilitating the national needs," said Mr Molale.

Receiving the cheque, Mr Matambo said the funds would help in facilitating and augmenting national needs. He added that it was a great achievement as it was a sign of government's achievement in its privatisation drive and a way of affording Batswana an opportunity to participate in the economy.

For his part, Mr Fitt said the successful IPO of BTCL shares meant that 'Batswana are ready to invest in our companies and it means there is a lot more money out there ready for us for this privatisation drive.'

In his welcome remarks, Public Enterprises Evaluation and Privatisation Agency (PEEPA) chief executive officer, Mr Kgotla Ramaphane said the event marked "a day when we see the outcome of a journey that we embarked on a number of years back."

SOURCE: Botswana Daily News

Category: Uncategorized

Comments are closed.