Last Updated
Tuesday 16 December 2014, 19:59 pm.
Mining powers foreign investment to P26bn

*De Beers extends lead on investment in local mining
By Staff Writer Thu 18 Dec 2014, 02:42 am (GMT +2)
Mmegi Online :: Mining powers foreign investment to P26bn








According to a recently published International Monetary Fund (IMF) survey on direct investment, Luxemburg, where De Beers' holding company is based, accounted for the lion's share of foreign investment in Botswana.

The Coordinated Direct Investment Survey, the latest authoritative indicator for Botswana's foreign investment position, indicates that Luxembourg accounted for 70 percent of total foreign holdings in the local economy in 2011.

According to the survey, Luxembourg's investment position in Botswana rose from US$405 million (P3.2 billion) in 2010 to US$2.3 billion (P18.1 billion) in 2011.

The data also indicates that of the P18.1 billion held by Luxembourg-based investors, US$1.6 billion (P12.6 billion) was in the form of equity, with the balance classified as debt.

The IMF data supports De Beers' ramp up of activities at the mammoth Cut 8 project where it is ultimately expected that US$3 billion (P23.7 billion) will be spent over a 15-year period.

The Cut 8 project, designed to deepen and widen the Jwaneng Mine pit by removing 700-million tonnes of waste, has been hailed as the country's single biggest infrastructural investment.

Other figures from the survey indicate that after Luxembourg, South Africa, Australia, the United Kingdom and Mauritius had the highest foreign investment positions in Botswana for 2011. According to the IMF, South Africa's holdings in Botswana jumped nearly 60 percent in 2011 to US$519 million (P4 billion), while Australia's investments dropped by about 10 percent to US$187 million (P1.5 billion).

South African investments in Botswana cut across the economy, from manufacturing, retail, wholesale to mining, engineering and the service sectors. 

Australian interests, on the other hand, are strongly in minerals, where several junior miners have been ramping up activities aimed at commercial production. Of the Australian miners investing in Botswana, the most advanced is Discovery Metals Limited whose Boseto Copper Project is now in production. The United Kingdom's investment position in Botswana dropped 71 percent to US$77 million (P607million) in 2011, while Mauritius' holdings fell 61 percent to US$50 million (P395 million).

 Conversely, the IMF's survey indicates that Botswana's resident businesses reduced their offshore investments in 2011, the figure declining 58 percent to US$240 million (P1.9 billion). On a country-by-country basis, local businesses were most heavily invested in South Africa, United Kingdom, United States, Switzerland and China.

For 2011, Botswana businesses investment holdings in South Africa dropped 53 percent to US$144 million (P1.1 billion), while United Kingdom investments dropped 76 percent to US$31 million (P245 million).

Of the top five territories hosting local investments, only Switzerland and China notched increases in the amount of assets held by Botswana businesses, albeit from positions of nought in 2010.



Exchange Rates
FOREIGN EXCHANGE: Wednesday, 17 Dec 2014
FOREIGN / PULA
PULA / FOREIGN
1 USD = Pula   9.5238
1 GBP = Pula   14.9701
1 EUR = Pula   11.8906
1 YEN = Pula   0.0814
1 ZAR = Pula   0.8125
1 Pula = USD   0.105
1 Pula = GBP   0.0668
1 Pula = EUR   0.0841
1 Pula = YEN   12.29
1 Pula = ZAR   1.2308
Banner Image
Stock Exchange
STOCK EXCHANGE: Wednesday, 17 Dec 2014
DOMESTIC STOCKS
ABCH
714
BARCLAYS
343
BIHL
1151
CHOBE
427
CHOPPIES
406
CRESTA
89
ENGEN
950
FNBB
361
FSG
237
FURNMART
220
G4S
374
LETLOLE
215
LETSHEGO
266
NAP
217
OLYMPIA
20
PRIMETIME
260
RDCP
202
SECHABA
2810
SEFALANA
922
STANCHART
1258
TURNSTAR
208
WIL
310
IMARA
210
  • Previous
    The Hobbit: The Battle of the Five Armies Poster
    Next
    Masa Centre
    ::: Friday 12 Dec - Thursday 18 Dec :::
    The Hobbit: The Battle of the Five Armies
    Love, Rosie
    Penguins of Madagascar
    No Good Deed
    The Hunger Games: Mockingjay - Part 1
  • Previous
    Walking on Sunshine Poster
    Next
    Riverwalk
    ::: Friday 12 Dec - Thursday 18 Dec :::
    Walking on Sunshine
    The Hobbit: The Battle of the Five Armies
    Penguins of Madagascar
    The Hunger Games: Mockingjay - Part 1
  • Previous
    Love, Rosie Poster
    Next
    Gamecity
    ::: Friday 12 Dec - Thursday 18 Dec :::
    Love, Rosie
    The Hobbit: The Battle of the Five Armies
    Penguins of Madagascar
    The Hunger Games: Mockingjay - Part 1
    Horrible Bosses 2
    The Equalizer