The only listed security company on the Botswana Stock Exchange, G4S Botswana Limited will part ways with its Managing Director – Mokgethi Magapa at the end of this year.
Magapa has been the G4S Botswana MD for the past three and half years.
The Board last week said it is working tirelessly to ensure a smooth transition of leadership following the decision by Magapa to quit the multinational security company.
“We are confident that the current Executive Team is capable and well placed to continue with the vision and strategy while keeping customer needs as a primary focus”, reads part of a statement circulated within the capital markets players.
The statement further stated that tthrough Magapa’s leadership, G4S Botswana business had a successful implementation of a strategy that saw the group improve its market share, customer service, and profitability.
The group’s latest financials show that for the interim period ending June 2020 G4S posted a 7 percent fall in revenue and 18 percent decrease administrative expenses. The Group’s Manned Guarding Revenue increased by 17 percent while Manned Guarding Profit before Tax increased by 217 percent. Owing to P9 million which was received from the Government as wage subsidy for the Covid 19 pandemic for three months, the group’s other Income increased by 94 percent.
According to the group’s executive management, recent statutory environment has put some pressure on the group margins. The laws in question relate to the revised Trade Act which was implemented at the beginning of June 2020 which imposed restrictions on participation by foreign entities on certain business including cleaning services which G4S Botswana has been a player in.
While it is listed at the BSE and has some local shareholders, G4S Botswana is not wholly owned by citizens.
The UK originating company now says the effect of the Trade Act as well as growing market sentiment that impose citizen ownership on the industry will hinder the business to grow particularly in the manned guarding and cleaning management space.