Our Africa funds have, for many years, had exposure to Botswana. With very little third-party data and information available, much of our analysis and research is done by visiting the country and speaking to local people. The information that is available is the listed company reports and high-level macroeconomic reports. The gap between these two sets of information is fascinating and highlights why investing based only on the macroeconomic outlook could lead to painful investment results. The author of an economic report was getting excited about the 2016 GDP growth number being revised up to 4.3%, after originally being forecast at 2.7%. However, the management of companies we can invest in, reminded us that they are not experiencing much of this “4.3%” growth, with the operating environment being far softer.
By Ann Brown
Knight Ganje was a high school dropout but you’d never know that today, as he now runs a multi-million dollar business which is Botswana’s biggest ad agency. The 29-year-old Zimbabwe-born Ganje founded the Botswana-based ad agency, H&G Advertising Group, which counts among it clients Unilever, Emirates, Coca-Cola, and Samsung. H&G Advertising operates in Angola, Botswana, Ethiopia, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Swaziland, South Africa, Tanzania, Uganda, Zambia, and Zimbabwe. The firm earns $38 million annually.
Botswana is the most attractive economy for investments flowing into the African continent, according to the latest Africa Investment Index 2016 by Quantum Global’s independent research arm, Quantum Global Research Lab. According to the index, Botswana, scores highly based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business.