Botswana government has received BWP212-million from the 462 secured following the initial public offering (IPO) of Botswana Telecommunications Corporation Limited (BTCL) shares.

BTCL listed in the beginning of April after a lengthy process that kicked off in 2010, as part of government's efforts to empower locals and improve service delivery for the company.

In addition, parastatal privatisation is also a pillar supporting the country's diversification efforts.

The Minister for Presidential Affairs and Public Administration, Eric Molale said the money will be used to support national budgetary requirements – particularly in light of the country's continued budget deficit due to depressed activities in the mining sector.

Molale applauded the nation for its participation in the IPO, adding that government has reinvested 250 million pula for growth and expansion of BTCL.

According to the minister the privatisation has provided an opportunity for the nation to invest in- and own one of the country's largest public entities.

"Batswana are now not only customers but can now share in the growth and profitability of the Company, and ultimately generate greater wealth for their livelihoods," Molale said.

BTCL is the first privatisation of a public entity which resulted in the transfer of 44% of the company to citizens while 5% was reserved for citizen employees with the remaining stake being held by government.

The IPO was oversubscribed by 68%, and on listing, applications for 900,000 shares or less were allocated in full, while others received the first 900,000 plus 11.45% of the balance.

Figures from Botswana Stock Exchange indicate that on listing, the share increased in value from the IPO price of P1.00 to P1.30, although it has since fallen back to P1.25.

Economist critical

Meanwhile renowned economic analyst Dr Keith Jefferies has criticised the listing process and its exclusion of foreign stakeholders.

"We note, however, that the way in which the partial privatisation was conducted – which restricted participation to citizens, citizen-owned companies and local asset managers - was in conflict with the official Privatisation Policy," said Dr Jefferies.

The economist said the privitisation policy states that out-right exclusion of foreign investors or across-the-board fixed restrictions on foreign participation in privatised enterprises will be avoided and any restrictions will be considered on a case-by-case basis.