Botswana’s attraction as a destination for mining investors and the numerous fundraising opportunities available were some of the main messages from Rand Merchant Bank (RMB) Botswana client relationship manager Kabo Molimi who was speaking this morning at the Electra Mining Botswana 2015.
The exhibition and seminar, held in Gaborone, promotes the mining, industrial and power sectors in Botswana.
“Botswana has no exchange controls, has a good legal framework, enforceable laws and stable labour relations, and is therefore an attractive destination for mining investors,” Molimi said. “Though capital markets are small, banks have the capacity to fund the right mining projects while huge opportunities exist to raise funds with pension funds. Botswana is open for business.”
Recent improved liquidity positions in the market give more room for intermediation while options exist for debt syndication with local banks. Investment banks can also sponsor asset-backed commercial paper vehicles as an alternative funding source to traditional bank funding.
In addition, the Botswana Stock Exchange offers the opportunity to raise funds through IPOs and bond programmes while the Government of the Republic of Botswana (GRB) is an active investment partner in mining projects as, upon issuing a mining license, it has the option of acquiring up to 15% working interest participation in the mine.
“RMB Botswana, a division of FNB Botswana, has a good understanding of the Botswana mining space and, as well as a full spectrum of investment banking products, offers our clients in-depth, local knowledge and entrepreneurial, innovative solutions to all mining requirements,” Molimi said. “We have been involved in funding and advising some of Botswana’s most prominent mining transactions.”