National Lottery negotiations on-going
Pauline Dikuelo | Monday September 14, 2020 15:01
Negotiation terms are based on the company’s contribution to the National Lottery Fund, which is designed to benefit the broader economy.
In an interview, the Authority said the negotiations, which are expected to take three months, would discuss the terms of the contract.
“Negotiations are on-going and we wish to re-emphasise that gambling authority has not yet awarded any company licence to operate the national lottery. Grow Mine is the preferred bidder with whom we’re negotiating and the reserved bidder in case negotiations with the preferred bidder fail to close issuance of licence,” the GA told the Monitor Business.
However if no agreement is made, the tender will be awarded to the reserved bidder, Ithuba Botswana. Initially, the GA received five bids from Grow Mine, Ad Infinitum Lottery, Win-A-Lot, Khupele Khupele and Ithuba Botswana.
If Grow Mine is eventually appointed, it will run the Botswana National Lottery under a 10-year licence and will be expected to pay an annual licence fee of P1 million. Monitor Business is informed that the Grow Mine will have to pay a P10 million advance to kickstart the lottery.
Several prominent businesspeople, including Sefalana Group managing director, Chandrakant Chauhan, his chief finance officer, Mohammed Osman, a renowned banker Moatlhodi Lekaukau and other business heavyweights, Percy Raditladi, Carthage Matlhaga, Boatametse Kganela and Dale Terhaar are behind Grow Mine.
Registered in 2016, and trading as Dineo tsa Pula, Grow Mine’s biggest shareholders are Sefalana Holdings Company which owns 80%, Colmar Enterprises at 47%, Citizen Money Makers at 26%, Idlehill (PTY) Ltd at 20%, Carthlee Inventions at 21% and Mokgethi Magapa at six percent.
A certain percentage of the lottery proceeds will be donated to the National Lottery Fund to benefit the creative industry, the youth and other sectors.