Contents page - Botswana Stock Exchange AFINITAS Annual Report... · 2017-05-26 · AFINITAS Annual...

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AFINITAS Annual Report 2016

Contents page

Investing in Africa.

Company Insight 2

Chairman’s Report 4

Managing Director’s Report 8

Board of Directors 12

Corporate Governance 14

Corporate Directory 16

Shareholder Information 17

Notice Of Annual General Meeting 18

Proxy Form 19

Financial Statements 20

Leutlwetse Tumelo – Executive DirectorUnit A, 6th Floor, iTowersPlot 54368, CBD,Gaborone, BotswanaPO Box AE 133 AEHGaborone, BotswanaT: +267 3184075E: [email protected]: www.afinitas.co

LIMITE D

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Afinitas Limited (“Afinitas” or the “Company”) is a pan African investment holding company that has a mandate to seed and develop new Africa focused businesses. The vision for the Company is to develop a portfolio of world class companies that can participate in the emerging opportunities across the continent.

TheinvestmentmandateforAfinitasisrelativelybroadandallowstheCompany to invest across multiple sectors and jurisdictions. This isreflectedinthediverseareasoffocusforthecurrentinvesteecompanies.

• Africa Events Limited is a specialist events management company that owns the rights to the Africa Financial Services Investment Conference(AFSIC).

• Adventis Limited is an investment management company that seeks todevelopapoolofuniqueAfricafunds.

• Ethiopia Investment Limited, a permanent capital vehicle that will developaconglomerateofEthiopiabusinesses.

New investee companies will continue to be developed to target long termgrowth opportunities across the continent. It is envisagedthat during the 2017 calendar year, one or possibly two new investee businessescouldbelaunched.

As an emerging African investor, one of the Company’s key strengths is its human capital. Afinitas has assembled a team of high calibreexperienced and young talented individuals who form the core of the Companyandits investeecompanies.These individualsareassignedspecificmandatestodrivethedevelopmentofeachofthecompanieswithintheAfinitasgroup.

AfinitasLimitedis listedontheBotswanaStockExchange(BSEcode:AFS) and is accredited to the Botswana International Financial Services Center (IFSC). The Company is led by a Board of Directors that hasextensive experience in developing new businesses and conducting businessinemergingmarkets.

Company Insight

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213,946,250

us $ 20m

10 us cents

No.oFISSuEDShArES

MARkET CAP

STock mArkeT INFo - 24/04/2017

LAST SHARE PRICE

us $ 2.5mINvESTED IN

EThIopIAINvESTmENTSLTD.

us $ 2.5mINvESTED IN

ADvENTISLTD.



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mostofourshareholderswillrecallthatAfinitasofficiallycommencedoperationsonthe27thofJuly 2015. Thismeans your Company had anoperating history of only 17 months at the end ofthe2016financialyear.however,itispleasingto note the progress that has been made by the Companyinthisshorttime.

Chairman’sreport

Three investee companies have been established, Africa Events Limited (AEL), Adventis Limited (AL) and Ethiopia Investments Limited (EIL). Duringthe financial yearunder review, a total of $5m has been allocated towards the establishment of Ethiopia Investment Limited and Adventis Limited. These newcompanies have set the benchmark for the

calibre of businesses thatAfinitaswillpursueas part of its Africa strategy.Going forward the Board will continue to review other investment opportunities for AfinitasLimited. It ispossiblethatat least one or possibly two new companies could be added to the Afinitas portfolio in the currentfinancialyear.Wewilldisclosethedetails of these investments to you attheappropriatetime.

Growing the size of the Afinitasportfolio is a priority for the Board but we are also alert to the need to consolidatetheworkdonesofar.For this reason, a significant partof management time in 2017 will focus on developing the revenue streamsofthenewcompanies.

The Board would like to see AL and EIL becoming cashflow positiveinareasonabletime. Thiswillbekey to demonstrate the long term growthprofileofyourCompany.

Developing and operating businesses in emerging markets is notwithoutitsinherentchallenges.The ease of doing business in these markets is sometimes hampered by bureaucratic systems. Insome cases social, political and economic instability add to the challenges. These challenges arewell documented and for long term Africa focused investors, like ourselves, they form part of the ecosystem that we need to navigate in the immediate future.It is for this very reason that the Afinitasteamdedicatessignificantresources to understanding the various markets before making an investmentdecision.

Dear Shareholders,

It is my pleasure to update you on the progress of Afinitas Limited over the past 12 months ended December 2016. It was a year of notable progress towards our objective of building a world class investment holding company. Our market, the African continent, continues to make significant investments into developing soft and hard infrastructure, the benefits of which will be realised over time.

Lesang Magang


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AFINITAS Annual Report 2016AFINITAS Annual Report 2016

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L. Magang27 April 2017

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Chairman’s report cont.

Over the long term, the fundamentals that support investment into Africa are still very strong. According to Ernst& Young, Africa Attractiveness Program 2016, the longer-term outlook for economic growth and investment in Africa remains positive but is likely to face head wingsinthenearfuture.

It is our view that the continued investment in soft and hard infrastructure across the continent will be key to sustaining long term economic growth in Africa. The presence of stronggovernance institutions and stable governments will be key to attracting and retaining long term investment.

This is a key consideration for investment and has the potential to lower the risk profile ofinvestments and attracting even greater investment inflowto fundprojectsonthecontinent.

Investment into hard infrastructure across the continent has driven some of the recent economic growth. As the short termeconomic benefits of these

investments fall away, the longer termbenefitswillbecomemorevisible.Theseincludefacilitatingaccess to new markets and easing the flow of goods toexistingmarkets.

Projects such as the Addis Ababa-Djibouti railway line, which is estimated to have reduced travel time from 3 days to 12 hours, are prime examples of the efficiency that can beachieved through investment intostrategicinfrastructure.

We as the Directors of Afinitasstill maintain a positive outlook for long term investment in Africa. We are fully cognisantof the potential head winds in the future that may impact our path to development. Theseare an inherent part of any long term investment cycle and should not materially derail our shared objective of building a pan African investment holding company.

Let me conclude by saying a special thank you toms. DawnPickering who was one of the founding Directors of Afinitas

Limited.DawnservedasDirectoruntil September 2016 when she stepped down to take a senior role with the Australian Securities Exchange. She has played a keypart in guiding the development ofAfinitasandweappreciate theexpertise that she brought to the Board.

I am pleased to inform you that Dawn has been replaced by Dr.Keith Jefferis. Keith is a leadingeconomist and Managing Director of Econsult. he brings extensiveexperience to the Board and we lookforwardtoworkingwithhim.

Regards,


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Managing Director’s

report

Investment review

In March 2016, the Board of Afinitas approved a budgetallocation of $2.5m to fund thedevelopment of a permanent capital vehicle focused on Ethiopia, Ethiopia Investments Limited. A second budgetallocationof$2.5m,announcedinAugust 2016, was earmarked for anAfricafocusedfinancialservicescompany, Adventis Limited. Atotal sum of $5m has therefore been reserved as seed capital for these two greenfield companies.These exciting investments have significantscalepotentialandwillbe of increasing importance for Afinitas Limited in future years.The approval of these investments by the Board marked two key milestones for Afinitas Limited. Asummary of these two companies and Africa Events Limited is given below.

Africa Events Limited

At the end of the previous financialyear,wehadsuccessfullycompleted the acquisition of a 50% stake in Africa Events Limited (AEL).TheinvestmentintoAELwas

a strategic move to give Afinitasaccess to one of the most valuable business networks across Africa, a global investor base, and an already cash flow positive eventsbusinesswhichexhibitssignificantpotentialforgrowth.

In addition AEL holds 100% of the rights to the Africa Financial Services Investment Conference (AFSIC), an annual conference held in London which is becoming increasingly recognised globally as a world class African investment event. AFSIC has developedrapidly into the leading investor event focused on the financialsector across Africa. The eventis attended by key executives and investors focused on Africa’s financial servicessector includingBanks, Insurance Companies, microfinance, Leasing and otherregulated financial servicescompanies which attend AFSIC from almost all parts of the African continent. AFSIC also attracts asignificant proportion of Africa’smost important investors. It isnow one of the most important Africa investor events globally and is expected to continue to grow strongly in future years

as it continues to develop a “must attend” reputation among investorsandcompanies.

During the year under review AFSIC 2016 was held in May 2016, and demonstrated record delegate attendance. The 5thAFSIC will be held on the 3rd to 5th May 2017 in London and will yet again demonstrate excellent growth in the quality and number of delegates and investors attending from across the African continentandbeyond.

In order to capitalise on the growth of AEL, we are launching a number of new events managed by AEL.These include investor trips to 12 African countries in 2017 and 2018. The first of these investortrips will be held in June 2017 and is planned to cover Zambia, Zimbabwe, Botswana, and Namibia.Aswellascementingourrelationship with leading global investors focused on Africa these “in country” investor trips will also act as a means to deepen our links with the significant network ofexecutives that AEL has developed across all 54 African countries.The benefits of developing this

Dear Shareholders,

It is a pleasure to give you an update on the development of your Company at the end of a very productive year.

The strong momentum that was established by the Company in the previous financial year continued into 2016 and a number of notable milestones were achieved during the year under review. These include the establishment and development of two new businesses, the recruitment of high calibre executives as well as the continued growth in the importance of Africa Event Limited’s business network within Africa and the associated AFSIC Conference.

Rupert McCammon


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AFINITAS Annual Report 2016AFINITAS Annual Report 2016

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Chairman’s report cont.

R. McCammon27 April 2017

network, and establishing on the ground relationships with senior executives across Africa will become apparent in future years asAfinitasrollsout its investmentstrategy.

Ethiopia Investments Limited

Ethiopia Investments Limited II (EIL) is domiciled in Mauritius and is currently owned 100% by Afinitas Limited. It is envisagedthat EIL will invest in various sectors inEthiopia.Thecompanywill provide permanent capital to fund the development or expansion of businesses. overtime EIL should develop into a listed conglomerate focused on Ethiopia and become one of the major investors into this rapidly developingcountry.

Ethiopia is a unique emerging investment destination on the continent. The country has asignificant domestic market ofapproximately 97 million people andrapidlygrowingmiddleclass.Over the past decade, GDP growth hasaveraged10.8%and the ImFhas ranked Ethiopia as one of the top 5 fastest growing economies in the world. Despite recentpolitical issues the Board believes that the economic outlook for Ethiopiaremainspositive.

Adventis Limited

Adventis Limited is domiciled in Jerseyandowned66%byAfinitasLimited and 34% by mr. Josephrohm.AdventisLimitedisfocusedon attracting inward investment into Africa, with a particular focus initially on strengthening Africa’s financial sector. Adventisis managed by mr. Josephrohm. Joseph has workedfor over 18 years with leading asset management companies and brings with him extensive experience of investing in the financial services sector acrossAfrica. There is considerablepotential to develop Adventis into one of the leading inward investorsintoAfricainthefuture.

Summary

2016 was the first full year ofoperations for Afinitas Limited.It saw considerable activity with the development of two new companies (Adventis Limited and Ethiopia Investments Limited II) both of which demonstrate significant potential for growth,and the rapid expansion of the existing investment (Africa Events Limited).

our first full year financialstatements are contained in this annual report. The statementsreflect the ompany’s expectedinitial growth and development stage. As is the case with many

start-up companies, operating costs are likely to exceed revenue generated as the company had to make initial investments into key human resource and infrastructure investments.Thisisexpectedtobethecaseagainin2017asAfinitasislikely to continue to invest strongly in 2017 with positive financialresults from these investment expected to be reflected duringthe2018FinancialYear.Totalcashon the balance sheet is around $8m which includes $5m allocated to EIL andAdventis.Thebalanceof $3m is available for investments inthecurrentfinancialyear.

The Afinitas team recognisetheir obligations under the Botswana Stock Exchange Listing requirements. It is my pleasureto confirm that during 2016the Company complied with its ongoing obligations under the listing rules. our team willcontinuously review regulatory obligations for the Company and worktoensurecompliance.

In conclusion, we are optimistic that 2017 will be another year of excellent progress within Afinitas. We expect furtherpositive developments for Adventis Limited, the continued development of Africa Events Limited, and Ethiopia Investments LimitedII.

Regards,


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Board of Directors


Lesang is the Managing Director of Phakalane Estates (Pty) Ltd, a majorproperty development company and one of the largest privately ownedtownship developers involved in residential, commercial and industrialdevelopmentsinBotswana.

rupert has worked extensively in Botswana and across Africa. InBotswana he has set up a number of companies including stockbroking, asset management and corporate finance companies. Across Africa,he has worked with a number of resource sector companies to raise funding.

Leutlwetse has worked in both the capital market and resources sector inBotswana.hewaspreviouslytheheadofClientServicesatCapitalSecurities.LeutlwetseisadirectoronminergyCoalandmoDresourcesBotswana.

keith is the Managing Director at Econsult (Pty) Ltd, which specializes in research, economic commentary and policy analysis. he is anIndependent Consultant at Botswana Insurance Fund Management Limited.previously,Keithservedas theDeputyGovernorof theBankof Botswana (BoB) where he worked extensively on the formulation and analysisofmacroeconomicpolicyissues.

1. Lesang MagangIndependent Non-Executive Chairman

2. Rupert McCammonManaging Director

3. Leutlwetse TumeloExecutive Director

4. Keith Jefferis Independent Non-Executive Director

Lesang MagangIndependent Non-Executive Chairman

Rupert McCammonManaging Director

Leutlwetse TumeloExecutive Director

Keith Jefferis Independent Non-Executive Director


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CORPORATEGovernance



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The Board of Afinitas is committed to developing the Company on the principles of good corporate governance in order to build a sustainable and successful business.

In this regard the Board endeavours to comply fully with the guidelines of the BSE Code of Best Practice on Corporate Governance and will continuously review its performance and structure to ensure that it is able toadequatelydischargeitsduties.

Leadership and Control

The Board retains full and effective control over the Company and monitors the executive management as well as decisions in the subsidiary companies.The Board is responsible for setting the strategic direction of the Company through the establishment of strategic objectives and monitoring the implementationofthestrategy.

The activities of the Board are governed by a Board Charter.The charter emphasises the importance for the Board to act honestly, fairly and diligently and in accordance with the law when serving the interests of Afinitas. The charter sets out theresponsibilities of the Board and also defines matters that shouldbe approved by the Board of Directors.

In order to continuously maintain a high level of ethical conduct by the Afinitas team, the Board hasapproved a number of company policies.Theseinclude:

• Anti-Bribery and anti-corruption policy: this policyclearly prohibits any member of the Afinitas team fromengaging in any corrupt activities or to offer/receive bribes. A key area coveredby this policy is on receiving/giving of corporate gifts which may be used to influencedecisions.

• Information disclosure policy:a key policy that definesthe process for disclosing information to the market or any external parties.Information released to the market has to be reviewed through relevant channels to avoid releasing information thatcouldmisleadthemarket.

• SecuritiesTrading policy: setsthe parameters for trading of company securities by the Afinitas team to avoid insidertrading. The board realisesthat insider trading, whether actual or perceived, can have negative implications for the Company.

TheBoardofAfinitashasapprovedaBoardcharter.

Composition of the Board

The current Board of Directors comprises of four (4) Directors.Two Executive Directors and two Independent Non-Executive Directors.

The Executive Directors are Rupert McCammon (Managing Director) and Leutlwetse Tumelo (Executive Director). rupert is responsiblefor overall implementation of the investment strategy and leads the executive team. Leutlwetse isresponsible for corporate affairs including regulatory compliance andstakeholderengagement.

Lesang Magang (Chairman) and keith Jefferis (Director) are the Independent Non-Executive Directors on the Board. TheIndependent Non-Executive Directors provide additional business experience and skills to ensure adherence to good corporate governance and also support an impartial decision makingprocess. The Board considers the current mix of skills of the directors to be balanced, thus enhancing the effectivenessoftheBoard.

At this stage, the Board does not have any sub-committees.All Board issues are handled by the Board of Directors. Thecomposition of the Board and its effectiveness will continue to be reviewed. Where necessarythe composition of the Board will be changed by appointment of new directors or creating sub-committees to enhance effectivenessoftheBoard.

During the year, ms. DawnPickering took up a senior role with the Australian Securities exchange and subsequently had to resign fromtheBoardofAfinitasLimited.ShehasbeenreplacedbyDr.KeithJefferis, a leading economist and managingDirectorofEconsult.

Board Meetings

In line with the guidance of the Botswana Stock Exchange Code of Best Practice on Corporate Governance, the Board of Directors held 4 meetings during the year. The purpose of thesemeetings was to present and discuss key issues that required the decisionoftheBoard.Attendanceby Directors at these meetings is noted. Lesang magang, rupertMcCammon and Leutlwetse Tumelo attended a total of 4 meetings. Dawn pickeringattended 2 meetings which were held before her resignation from theBoard.KeithJefferisattended1 meeting which was held after his appointmentasaDirector.

Board and Management Remuneration

All members of the Board of Directors receive an annual Director’s fees of BWp80000.00 paid quarterly. Where aDirector resigns or is appointed during the year, this amount is prorated.During theyear LesangMagang, Rupert McCammon and Leutlwetse Tumelo received full board fees. Dawn pickering waspaid BWp41 750.00 for the timethatsheservedasaDirector.KeithJefferis was paid BWp8700.00Director’s feesduring theyear. Inaddition to Board fees Leutlwetse Tumelo received an annual salary ofBWp480000.00.

The Directors are considering a share option plan. The detailsof the plan will be disclosed to shareholders at the appropriate time and their approval sought for itsimplementation.


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CORPORATEDirectory



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SHAREHOLDERInformation

Top 10 ShAreholDerS

ShAREhoLDER nAME nuMBER of ShARES % hoLDIng

GCH INVESTMENTS LIMITED 120 000 000 56.09%FNB BW NOMINEES (PTY) LTD RE:AA BPOPF EQUITY 60 000 000 28.04%STANBIC NOMINEES BOTSWANA RE:IBMF 12 537 906 5.86%FNBBN (PTY) LTD RE: ACB BPOPF EQUITY 10 000 000 4.67%FNB BW NOMINEES (PTY) LTD RE: ACB BPOPF WPPP 4 800 000 2.24%SCBN (PTY) LTD RE: IAM 3292467 1 487 385 0.70%SCBN (PTY) LTD RE: IAM 02891970048 1 327 660 0.62%SCBN (PTY) LTD RE: IAM 028919700047 1 047 049 0.49%OTTAPATHU RAMACHANDRAN 1 000 000 0.47%STOCKER WILLIAM 150 000 0.07%

ShAreholDer SpreAD by Number oF ShAreS

NUMBER % OF OF SHAREHOLDERS SHAREHOLDERS TOTAL SHARES % HOLDING

< 2,000 156 54.36% 112 802 0.05%2,001 - 5,000 57 19.86% 237 160 0.11%5,001 - 10,000 31 10.80% 281 061 0.13%10,001 - 50,000 30 10.45% 707 855 0.33%50,001 - 100,000 3 1.05% 257 372 0.12%100,001 - 500,000 1 0.35% 150 000 0.07%> 500,000 9 3.14% 212 200 000 99.18%

287 100.00% 213 946 250 100.00%

ShAreholDer SpreAD (publIc/NoN publIc) NUMBER OF SHAREHOLDERS TOTAL SHARES % HOLDING

TOTAL 287 213 946 250 100.00%NON PUBLIC SHAREHOLDERS 14 120 200 838 56.18%PUBLIC SHAREHOLDERS 273 93 745 412 43.82% ANALYSIS OF NON PUBLIC SHAREHOLDERS DIRECTORS AND ASSOCIATES 14 120 200 838 56.18%


Corporate Governance cont.

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AFINITAS LIMITED CONTACT DETAILS Leutlwetse Tumelo – Executive Director Unit A, 6th Floor, iTowers Plot 54368, CBD,Gaborone, Botswana P O Box AE 133 AEH, Gaborone, Botswana T: +267 318 4075 E:[email protected] W:www.afinitas.co

AUDITORS Grant Thornton Plot 50370, Acumen Park, Fairgrounds, Gaborone, Botswana

BANKERS Barclays Bank Botswana Limited Plot 50628, Block 3 Industrial, Gaborone, Botswana Stanbic Bank Botswana Limited Plot 50672, Stanbic House, Fairgrounds, Gaborone, Botswana

STOCK ExCHANGE LISTINGS Botswana Stock Exchange Plot 64511, Fairgrounds, Gaborone, Botswana BSE Code: AFS

TRANSFER SECRETARY Transaction Management Services (Proprietary) Limited Trading as “Corpserve Botswana” Unit 206, Plot 64516, Showgrounds Close, Fairgrounds, Gaborone, Botswana

COMPANY SECRETARY AND REGISTERED OFFICE Cycad (Proprietary) Limited Unit 206, Plot 64516, Showgrounds Close, Fairgrounds, Gaborone, Botswana

DIRECTORS Lesang Magang (Independent Non-Executive Chairman) Rupert McCammon (Managing Director) Leutlwetse Tumelo (Executive Director) Dawn Pickering (Non-Executive Director) Resigned Sep 6th 2016 Keith Jefferis (Independent Non-Executive Director) Appointed Nov 23rd 2016


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NOTICE OF ANNUAL General meeting

NoticeisherebygiventhattheAnnualGeneralmeetingofAfinitasLimitedwillbeheldatphakalaneGolfEstateresort,Gaborone, Botswana on Wednesday 28th June 2017 at 1500hrsforthefollowingbusiness:

Toconsiderandifthoughtfitpasswithorwithoutamendmentthefollowingresolutions:

1. ordinary Resolution 1:

Toreceive,approveandadopttheauditedfinancialstatementsfortheyearended31December2016togetherwiththereportsofthedirectorsandstatutoryauditors.


ToconfirmtheappointmentasadirectorofKeithJefferiswhowasappointedduringtheyear.


To re-elect Lesang Magang who retires in accordance with the Constitution of the Company and being eligible, offers himselfforre-election,asdirector.


ToreappointGrantThorntonasauditorsfortheensuingyear.


ToauthorisetheBoardofDirectorstodeterminetheremunerationandtermsofreferenceoftheexternalauditors.


Toapprovetheremunerationofthechairmananddirectorsofthecompany.

7. Toconsiderand,ifthoughtfitpass,withorwithoutamendment,thefollowingspecialresolution:

“Thememberspresenthereby(pursuanttoclause5.1oftheConstitutionandSection5.81oftheBSEListingrequirements)authorize the directors to issue out new securities equal to 10% of the total of the issued securities of the Company after such issue, without offering such new securities to existing shareholders, provided that such issue is for cash or which will be issued inconsideration for an investment or acquisition of shares in an investee subsidiary company or a business, and providedsuchauthorityshallendureuntilthenextannualgeneralmeetingoftheCompany.”

8. To give the shareholders present opportunity to question, discuss or comment on the management of the Company as envisaged in Section 97 of the Companies Act

Voting and Proxies

1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointaproxyorproxiestoattend,speakandvoteinhis/herstead.ThisproxyneednotbeamemberoftheCompany.

2. TheinstrumentappointingsuchaproxymustbedepositedattheregisteredofficeoftheCompanyorsentbyemailto [email protected] on Monday 26th June 2017beforethemeeting.

3. Thecompletionandlodgingoftheformofproxywillnotprecludetherelevantmemberfromattendingthemeetingandspeakingandvotinginpersonthereattotheexclusionofanyproxyappointedintermsthereof.

By order of the Board

Company Secretary

Registration no Co 2014/5015ISIn no BW 000 000 1403

PROxY Form

For use at the Annual General Meeting to be held on at 1500hrs on 28 June 2017 at Phakalane Golf Estate hotel,Botswana.

I/We of being a shareholder/s of the above mentioned company, holding number of shares herebyappoint:

1. orfailinghim/her2. orfailinghim/her3. TheChairmanoftheAnnualGeneralmeeting

As my/our proxy to speak and vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at Phakalane Golf Estate Hotel, on 28 June 2017, at 1500hrs, and at any adjournment thereoffollows: For Against Abstain

Signed at on the day of 2017

Signatureofmember: Nameofmember: Capacityofsignatory:(whereapplicable)assistedby:

1 Ordinary resolution number 1 – to receive, approve and adopt theauditedfinancialstatementsfortheyearended31 December 2016 together with the reports of directors and the statutory auditors2 ordinaryresolutionnumber2–toconfirmtheappointmentas directorofKeithJefferiswhowasappointedduringtheyear. 3 Ordinary resolution number 3 – To re-elect as director Lesang Magang who retires in accordance with the Constitution of the Companyandbeingeligible,offershimselfforre-election.4 Ordinary Resolution 4 – to appoint Grant Thornton as auditors for the ensuing year5 Ordinary Resolution 5 – To authorise the Board of Directors to determine the remuneration terms of reference of the externalauditors.

6 Ordinary Resolution 6 - To approve the remuneration of the chairmananddirectorsoftheCompany.7 Special Resolution I – to authorise the directors to issue out new securities equal to 10% of the total issued securities of the Company after such issue without offering such new securities to shareholders provided that such issue is for cash or be issued in consideration for an investment or acquisition of shares in an investee or subsidiary company or acquire a business,suchauthoritytoendureuntilthenextAGm.

notes and instructions1. Every shareholder present in person or represented by proxy and entitled to

vote at the General Meeting shall, on a show of hands, have only one vote, irrespective of the number of shares held and in the event of a poll, every shall beentitledtoonevoteforeveryshareheld.

2. A shareholder may insert the name of a proxy or the names of two alternative proxies of the member’s choice in the space/s provided, with or without deleting “the Chairman of the General Meeting”, but any such deletion must beinitialledbytheshareholder.Shouldthespacesbeleftblank,theproxywillbeexercisedby theChairman. Should theproxieswhosenameshavebeeninserted not attend and “the Chairman of the General Meeting” not be deleted, theproxywillbeexercisedbytheChairman.

3. A shareholder’s voting instructions to the proxy must be indicated by the insertion of an “x”, or the number of votes exercisableby that shareholder, in theappropriatespacesprovided.Failuretodosowillbedeemedtoauthorisethe proxy to vote or to abstain from voting at the General Meeting , as he/she thinksfitinrespectofalltheshareholdersexercisablevotes.Ashareholderorhis/her proxy is not obliged to use all the votes exercisable by him/her or by his/her proxy, but the total number of votes cast, or those in respect of which abstention is recorded, may not exceed the total number of votes exercisable bytheshareholdersorbyhis/herproxy.

4. The proxy shall have the power to vote for and attend at any adjournment of the Meeting and to vote on any amendment to any of the resolutions which may be proposedatthemeeting.

5. A minor must be assisted by his/her parent or guardian unless the relevant documents establishing his/her legal capacity are produced or have been registeredbythetransfersecretaries.

6. The power of attorney or other authority establishing the authority of a person signingtheformofproxyinarepresentativecapacityorcertifiedcopythereofmust be attached to the form of proxy, unless previously recorded by the transfersecretariesorwaivedbytheChairmanofthemeeting.

7. Thecompletionofanyblankspacesintheformofproxyneednotbeinitialled.Any alterations or corrections to the form of proxy must be initialled by the signatory/ies.

8. The Chairman of the Meeting may accept any form of proxy which is completed otherthaninaccordancewiththeseinstructionsprovidedthatheissatisfiedastothemannerinwhichashareholderwishestovote.

9. A vote given in accordance this form of proxy shall be valid notwithstanding the previous legal incapacity of the principal or revocation of the form of proxy or the transfer of the share in respect of which the vote is given, unless an intimation in writing of such legal capacity or transfer shall have been lodged with the Transfer Secretaries, Corpserve Unit 206, Second Floor, Plot 64516 ShowgroundsClose,Fairgrounds,p.o.Box1583,AADGaborone,orbyemailto [email protected] , to be received by them by not later than 15h00monday,26June2017.

LIMITE D


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DIRECTORS’ RESPONSIBILITIES AND APPROvAL 22INDEPENDENT AUDITOR’S REPORT 24DIRECTORS’ REPORT 26STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIvE INCOME 28STATEMENT OF FINANCIAL POSITION 29STATEMENT OF CHANGES IN EqUITY 30STATEmENToFCAShFLoWS 32ACCOUNTING POLICIES 34NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 48

CONSOLIDATED ANNUAL FINANCIALSTATemeNTS FOR THE YEAR ENDED 31 DECEMBER 2016


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AFINITAS Annual Report 2015/16


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consolidAted AnnuAl finAnciAlSTATemeNTS foR the yeAR ended 31 decembeR 2016

consolidAted AnnuAl finAnciAl

STATemeNTS foR the yeAR ended 31 decembeR 2016

The directors are required in terms of the Companies Act of Botswana to maintain adequate accounting records and are responsible for the content andintegrityoftheconsolidatedannualfinancialstatementsandrelatedfinancial information included in this report. It is their responsibility toensurethattheconsolidatedannualfinancialstatementsfairlypresentthestateofaffairsofthegroupasattheendofthefinancialyearandtheresultsofitsoperationsandcashflowsfortheperiodthenended,inconformitywithInternationalFinancialreportingStandards.Theexternalauditorsareengaged to express an independent opinion on the consolidated annual financialstatements.

Theconsolidatedannualfinancialstatementsarepreparedinaccordancewith International Financial Reporting Standards and are based upon appropriate accounting policies consistently applied and supported by reasonableandprudentjudgmentsandestimates.

The directors acknowledge that they are ultimately responsible for the systemof internal financial control establishedby thegroup andplaceconsiderable importance onmaintaining a strong control environment.To enable the directors to meet these responsibilities, the board of directors sets standards for internal control aimed at reducing the risk of errororlossinacosteffectivemanner.Thestandardsincludetheproperdelegationofresponsibilitieswithinaclearlydefinedframework,effectiveaccounting procedures and adequate segregation of duties to ensure anacceptablelevelofrisk.Thesecontrolsaremonitoredthroughoutthegroup and all employees are required to maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that inallreasonablecircumstancesisabovereproach.Thefocusofriskmanagement in the group is on identifying, assessing, managing and monitoring all known forms of risk across the group. While operatingrisk cannot be fully eliminated, the group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures andconstraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonableassurancethatthefinancialrecordsmaybereliedonforthepreparationoftheconsolidatedannualfinancialstatements.

Directors’ Responsibilities and Approvalhowever, any system of internal financial control can provide onlyreasonable, and not absolute, assurance against material misstatement or loss.

Thedirectorshavereviewedthegroup’scashflowforecastfortheyearto31December2017and,inthelightofthisreviewandthecurrentfinancialposition,theyaresatisfiedthatthegrouphasorhasaccesstoadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.The external auditors are responsible for independently reviewing and reporting on the group’s consolidated annual financial statements. Theconsolidated annual financial statements have been examined by thegroup’sexternalauditorsandtheirreportispresentedonpage24.

Theconsolidatedannualfinancialstatementssetoutonpages28to72,which have been prepared on the going concern basis, were approved by the board of directors on 27 March 2017andweresignedonitsbehalfby:

Approvaloffinancialstatements

Director DirectorGaborone

Directors’ Responsibilities and Approval cont.


24 25





TotheshareholdersofAfinitasLimited

opinion

WehaveauditedtheconsolidatedandseparateannualfinancialstatementsofAfinitasLimitedsetoutonpages28to72, which comprise the consolidated and separate statement of Financial Position as at 31 December, 2016, and the consolidated and separate statementof profit or loss andother comprehensive income, consolidated and separatestatementofchanges inequityandconsolidatedandseparatestatementofcashflowsfor theyear thenended,andnotestotheFinancialStatements,includingasummaryofsignificantaccountingpolicies.

Inouropinion,theconsolidatedandseparateannualfinancialStatementsgiveatrueandfairviewof,theconsolidatedandseparatefinancialpositionofAfinitasLimitedasat31December,2016,anditsconsolidatedandseparatefinancialperformanceandconsolidatedandseparatecashflowsfortheyearthenendedinaccordancewithInternationalFinancialreportingStandards.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing. our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Annual FinancialStatementssectionofourreport.Weare independentof thecompany inaccordancewiththe InternationalEthics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code) and otherindependencerequirementsapplicabletoperformingauditsoffinancialstatementsinBotswana.Wehavefulfilledour other ethical responsibilities in accordance with the IESBA Code and in accordance with other ethical requirements applicable toperformingaudits inBotswana.Webelieve that theauditevidencewehaveobtained is sufficientandappropriatetoprovideabasisforouropinion.

Key audit mattersKeyauditmattersarethosemattersthat, inourprofessional judgement,wereofmostsignificanceinourauditoftheconsolidated and separate annual financial Statements of the current period. Thesematters were addressed in thecontextofourauditoftheannualfinancialstatementsasawhole,andinformingouropinionthereon,andthereportbelowisnotintendedtoconstituteseparateopinionsonthosekeyauditmatters.

Independent Auditor’s Report

Responsibilities of the directors for the Consolidated and Separate Annual financial StatementsThe directors are responsible for the preparation and fair presentation of the consolidated and separate financialstatements in accordance with International Financial Reporting Standards, and for such internal control as the directors determineisnecessarytoenablethepreparationofconsolidatedandseparatefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

InpreparingtheconsolidatedandseparateannualfinancialStatements,thedirectorsareresponsibleforassessingthecompany’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, orhavenorealisticalternativebuttodoso. Thosechargedwithgovernanceareresponsibleforoverseeingthecompany’sfinancialreportingprocess.

Auditor’s responsibilities for the audit of the Consolidated and Separate Annual financial Statementsourobjectivesaretoobtainreasonableassuranceaboutwhethertheconsolidatedandseparatefinancialstatementsasawhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithInternationalStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.misstatementscanarisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influencetheeconomicdecisionsofuserstakenonthebasisoftheseannualfinancialstatements.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintainprofessionalscepticismthroughouttheaudit.Wealso:• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedandseparatefinancialstatements,whether

due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’sinternalcontrol.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosuresmadebythedirectors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significantdoubtonthecompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated and separatefinancial statementsor, if suchdisclosures are inadequate, tomodifyouropinion.our conclusions arebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.however,futureeventsorconditionsmaycausethecompanytoceasetocontinueasagoingconcern.

• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements,includingthedisclosures,andwhethertheconsolidatedandseparatefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• obtain sufficient appropriate audit evidence regarding the financial information of the subsidiaries or businessactivitieswithin thegroup toexpressanopinionon theconsolidatedand separatefinancial statements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.

Wecommunicatewiththedirectorsregarding,amongothermatters, theplannedscopeandtimingof theauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovide thedirectorswith a statement thatwehave compliedwith relevantethical requirements regardingindependence, and to communicate with them all relationships and other matters that may reasonably be thought to bearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicatedwiththedirectors,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedandseparatefinancialstatementsofthecurrentyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematteror when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because theadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Chartered Accountants gaboroneCertifiedAuditor:Mr.AswinVaidyanathan(MembNo:19980110)CertifiedAuditorofPublicInterestEntityCertificateNumber:CAP00162017

kEY AUDIT MATTER Existence of investmentsThe company’s investments in subsidiaries represent the mainoperatingactivityofthecompanyandformasignificantcomponent of their financial statement. The existence ofthese investments are critical to company’s objective and operations. As a result verification of existence of theseinvestments and ensuring title to these investments in company’snamewassignificanttoouraudit.

hoWThEmATTErWASADDrESSEDINourAuDIT

our audit procedures included verification of controlsput in place by the entity to identify investments made and their appropriateness to be captured as investments intheaccountingrecordsof thecompany.Weverifiedthetitleoftheinvestmentsofthecompanyandsatisfiedwiththeexistenceoftheinvestmentsasattheyear-end.

27 March 2017

Wehaveexaminedthesupportingdatatovalidatetheinvestments and determine that the cost allocated to the investmentisappropriate.

Wehaveobtainedanunderstandingoftheinvestmentsandcontrolsinplacetowardsvaluationoftheinvestments.Weobtainedconfirmationsandothersupportingdetailsthrough observable data to determine that the fair value of the investments measured using effective interest rate methodareappropriate.

Valuation of investmentsvaluation of investments in subsidiaries and other financial instruments, being significant part of thefinancialstatementandbeingthecorebusinessactivityof the company were considered to be key audit matters.Investmentsarerequiredtobeaccountedattheappropriate purchase cost and appropriately disclosed inthefinancialstatements.Also the entity has investment that are measured at fair value which could affect reporting of fair value gains/ losses in the statement of comprehensive income and disclosuresinthefinancialstatements.

Since there has been new investments in the current yearbytheentity,thishasbeenidentifiedasakeyauditmatter.


26 27





Thedirectorssubmittheirreportfortheyearended31December2016.

1. Review of activities

Main business and operations

The group is an investment holding company engaged in establishing and developing new businesses outside and across Africa and operates principallyinBotswana.

The operating results and state of affairs of the company are fully set out intheattachedconsolidatedannualfinancialstatementsanddonotinouropinionrequireanyfurthercomment.

2. Events after the reporting period

The directors are not aware of any matter or circumstance arising since theendofthefinancialyear.

3. Directors’ interest in contracts

There were no contracts during the period where the directors had interest.

4. Authorised and issued stated capital

There were no changes in the authorised or issued stated capital of the groupsincethepublicissue.

5. Directors

The directors of the company during the year and to the date of this reportareasfollows:

name nationality Lesang Magang Motswana Rupert J McCammon British Leutlwetse M Tumelo Motswana Dawn Pickering (Resigned 14 September 2016) Austrialian keith R Jefferis (Appointed 23 November 2016) Motswana

Directors’ Report Directors’ Report cont.6. Secretary

ThesecretaryofthecompanyisCycad(proprietary)Limited.

7. Interest in subsidiaries

name of subsidiary Country of incorporation if not the Botswana

Africa Events Limited Jersey Islands, United kingdom Adventis Limited Jersey Islands, United kingdom Ethiopia Investments Limited Mauritius

Details of the company’s investment in subsidiaries are set out in note 10.

8. Auditors

GrantThorntonwillcontinueinofficeinaccordancewiththeCompaniesAct(Cap42:01)


28 29





StatementofProfit/Lossand other Comprehensive Income

for the year ended 31 December 2016

group Company

figures in uS Dollar note 2016 2015 2016 2015 Revenue 3 310 814 - - - Other income 10 925 46 838 - 46 838 Operating expenses (704 058 ) (93 761 ) (391 255 ) (93 761 )Operatingloss 4 (382319) (46923) (391255) (46923)Finance income 5 57 676 17 956 57 676 17 956 Lossbeforetaxation (324643) (28967) (333579) (28967) Taxation 8 - - - - Lossfortheyear (324643) (28967) (333579) (28967) other comprehensive income:Itemsthatmaybereclassifiedtoprofitorloss: Exchange differences on translating foreign operations (10 707 ) (26 ) - - other comprehensive income for theyearnetoftaxation 7 (10707) (26) - - Totalcomprehensivelossfortheyear (335350) (28993) (333579) (28967)

Loss atrributable to:Owners of the parent (329 111 ) (28 967 ) (333 579 ) (28 967 )Non-controlling interest 4 468 - - - (324643) (28967) (333579) (28967) Total comprehensive loss attributable to: Owners of the parent (334 465 ) (28 980 ) (333 579 ) (28 967 )Non-controlling interest (885 ) (13 ) - - (335350) (28993) (333579) (28967) Earnings per sharePer share information Basicearningspershare(c) 23 (0.152) (0.014) (0.156) (0.014)Dilutedearningspershare(c) 23 (0.152) (0.014) (0.133) (0.014)

Statement of financial Position as at 31 December 2016

group Company

figures in uS Dollar note 2016 2015 2016 2015 Assets Non-CurrentAssets Property, plant and equipment 9 36 774 2 833 36 774 2 833 Investments in subsidiaries 10 - - 201 100 36 774 2 833 36 975 2 933

Current Assets Trade and other receivables 14 58 344 84 389 114 861 47 otherfinancialassets 12 11004 251273 11004 251273Current tax receivable 1 463 964 1 463 964 Cash and cash equivalents 15 8 664 244 8 798 553 8 542 174 8 774 160 8 735 055 9 135 179 8 669 502 9 026 444 Total Assets 8 771 829 9 138 012 8 706 477 9 029 377 Equity and Liabilities

Equity Stated capital 16 9 067 560 9 067 560 9 067 560 9 067 560 Foreign currency translation reserve (5 367 ) (13 ) - - Accumulated loss (370 822 ) (41 711 ) (375 290 ) (41 711 ) 8 691 371 9 025 836 8 692 270 9 025 849 Non-controlling interest (824 ) 61 - - 8 690 547 9 025 897 8 692 270 9 025 849 Liabilities Current Liabilities Trade and other payables 18 34 035 14 961 14 207 3 528 Loans from related companies 11 1 079 16 966 - - Deferred income 17 46 168 80 188 - - 81 282 112 115 14 207 3 528 Total Equity and Liabilities 8 771 829 9 138 012 8 706 477 9 029 377


30 31





Statement of Changes in Equityfor the year ended 31 December 2016

Stated Foreign Accumulated Total Non- Total capital currency loss attributable controlling equity translation to equity interest reserves holders of the group/figures in uS Dollar companygroupBalanceat1January2015 10 - (12744) (12734) - (12734)Loss for the year - - (28 967 ) (28 967 ) - (28 967 )Other comprehensive income - (13 ) - (13 ) (13 ) (26 ) TotalcomprehensiveLossfortheyear - (13) (28967) (28980) (13) (28993) Issue of shares 9 164 828 - - 9 164 828 - 9 164 828 Share issue costs (97 278 ) - - (97 278 ) - (97 278 )Business combinations - - - - 74 74 Total contributions by and distributions to owners of company recogniseddirectlyinequity 9067550 - - 9067550 74 9067624 Balanceat1January2016 9067560 (13) (41711) 9025836 61 9025897 (Loss)/profitfortheyear - - (329111) (329111) 4468 (324643)Other comprehensive income - (5 354 ) - (5 354 ) (5 353 ) (10 707 ) TotalcomprehensiveLossfortheyear - (5354) (329111) (334465) (885) (335350) Balanceat31December2016 9067560 (5367) (370822) (8691371) (824) 8690547 CompanyBalanceat1January2015 10 - (12744) (12734) - (12734)

Loss for the year - - (28 967 ) (28 967 ) - (28 967 )TotalcomprehensiveLossfortheyear - - (28967) (28967) - (28967)

Issue of shares 9 164 828 - - 9 164 828 - 9 164 828 Share issue costs (97 278 ) - - (97 278 ) - (97 278 ) Total contributions by and distributions to owners of company recogniseddirectlyinequity 9067550 - - 9067550 - 9067550 Balanceat1January2016 9067560 - (41711) 9025849 - 9025849 Loss for the year - - (333 579 ) (333 579 ) - (333 579 )TotalcomprehensiveLossfortheyear - - (333579) (333579) - (333579) Balanceat31December2016 9067560 - (375290) 8692270 - 8692270 Note 16 7 7

Stated Foreign Accumulated Total Non- Total capital currency loss attributable controlling equity translation to equity interest reserves holders of the group/figures in uS Dollar companygroupBalanceat1January2015 10 - (12744) (12734) - (12734)Loss for the year - - (28 967 ) (28 967 ) - (28 967 )Other comprehensive income - (13 ) - (13 ) (13 ) (26 ) TotalcomprehensiveLossfortheyear - (13) (28967) (28980) (13) (28993) Issue of shares 9 164 828 - - 9 164 828 - 9 164 828 Share issue costs (97 278 ) - - (97 278 ) - (97 278 )Business combinations - - - - 74 74 Total contributions by and distributions to owners of company recogniseddirectlyinequity 9067550 - - 9067550 74 9067624 Balanceat1January2016 9067560 (13) (41711) 9025836 61 9025897 (Loss)/profitfortheyear - - (329111) (329111) 4468 (324643)Other comprehensive income - (5 354 ) - (5 354 ) (5 353 ) (10 707 ) TotalcomprehensiveLossfortheyear - (5354) (329111) (334465) (885) (335350) Balanceat31December2016 9067560 (5367) (370822) (8691371) (824) 8690547 CompanyBalanceat1January2015 10 - (12744) (12734) - (12734)

Loss for the year - - (28 967 ) (28 967 ) - (28 967 )TotalcomprehensiveLossfortheyear - - (28967) (28967) - (28967)

Issue of shares 9 164 828 - - 9 164 828 - 9 164 828 Share issue costs (97 278 ) - - (97 278 ) - (97 278 ) Total contributions by and distributions to owners of company recogniseddirectlyinequity 9067550 - - 9067550 - 9067550 Balanceat1January2016 9067560 - (41711) 9025849 - 9025849 Loss for the year - - (333 579 ) (333 579 ) - (333 579 )TotalcomprehensiveLossfortheyear - - (333579) (333579) - (333579) Balanceat31December2016 9067560 - (375290) 8692270 - 8692270 Note 16 7 7


32 33





Statement of Cash flows for the year ended 31 December 2016

group Company

figures in uS Dollar note 2016 2015 2016 2015 Cashflowsfromoperatingactivities Cash used in operations 19 (379 103 ) (35 814 ) (492 566 ) (43 141 )Finance income 57 676 17 956 57 676 17 956 Tax paid 20 (499 ) (964 ) (499 ) (964 ) Netcashfromoperatingactivities (321926) (18822) (435389) (26149) Cashflowsfrominvestingactivities Purchase of property, plant and equipment 9 (36 765 ) (3 134 ) (36 765 ) (3 134 )Movement in investments 21 - - (101 ) (100 )purchaseoffinancialassets 240269 (251273) 240269 (251273)Netcashfrominvestingactivities 203504 (254407) 203403 (254507) Cashflowsfromfinancingactivities Proceeds on share issue 16 - 9 067 550 - 9 067 550 Repayment of shareholders loan - (12 734 ) - (12 734 )Repayment of loan from related company (15 887 ) - - - Proceeds from loans from related company - 16 966 - - Netcashfromfinancingactivities (15887) 9071782 - 9054816 Totalcashandcashequivalentsmovementfortheyear (134309) 8798553 (231986) 8774160Cash and cash equivalents at the beginning of the year 8 798 553 - 8 774 160 - Total cash and cash equivalents at end of the year 15 8 664 244 8 798 553 8 542 174 8 774 160

group Company

figures in uS Dollar note 2016 2015 2016 2015 Cashflowsfromoperatingactivities Cash used in operations 19 (379 103 ) (35 814 ) (492 566 ) (43 141 )Finance income 57 676 17 956 57 676 17 956 Tax paid 20 (499 ) (964 ) (499 ) (964 ) Netcashfromoperatingactivities (321926) (18822) (435389) (26149) Cashflowsfrominvestingactivities Purchase of property, plant and equipment 9 (36 765 ) (3 134 ) (36 765 ) (3 134 )Movement in investments 21 - - (101 ) (100 )purchaseoffinancialassets 240269 (251273) 240269 (251273)Netcashfrominvestingactivities 203504 (254407) 203403 (254507) Cashflowsfromfinancingactivities Proceeds on share issue 16 - 9 067 550 - 9 067 550 Repayment of shareholders loan - (12 734 ) - (12 734 )Repayment of loan from related company (15 887 ) - - - Proceeds from loans from related company - 16 966 - - Netcashfromfinancingactivities (15887) 9071782 - 9054816 Totalcashandcashequivalentsmovementfortheyear (134309) 8798553 (231986) 8774160Cash and cash equivalents at the beginning of the year 8 798 553 - 8 774 160 - Total cash and cash equivalents at end of the year 15 8 664 244 8 798 553 8 542 174 8 774 160


34 35





1.Presentationofconsolidatedannualfinancialstatements

TheconsolidatedannualfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialreportingStandards.Theconsolidatedannualfinancialstatementshavebeenpreparedonthehistoricalcostbasis,exceptforthemeasurementofcertainfinancialinstrumentsatfairvalue,andincorporatetheprincipalaccountingpoliciessetoutbelow.TheyarepresentedinuSDollars.

Theseaccountingpoliciesareconsistentwiththepreviousperiod.

1.1 nature of operations and segmentationThe company is a pan African investment holding company that has a mandate to provide seed capital and developnewAfricafocusedbusinesses.ThecompanyisaventurecapitalentitylistedontheBotswanaStockExchange.

operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedbymanagement.

1.2 Consolidation

Basis of consolidationThe consolidated consolidatedannual financial statements incorporate the consolidatedannual financialstatements of the company and all entities, including special purpose entities, which are controlled by the company.Controlexistswhenthecompanyhasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.TheresultsofsubsidiariesareincludedintheconsolidatedconsolidatedannualfinancialstatementsfromtheeffectivedateofacquisitiontotheeffectivedateofdisposalAdjustmentsaremadewhennecessary to theconsolidatedannualfinancialstatementsofsubsidiaries tobringtheiraccountingpoliciesinlinewiththoseofthegroup.Allintragrouptransactions,balances,incomeandexpensesareeliminatedinfullonconsolidation.

Non-controllinginterestsinthenetassetsofconsolidatedsubsidiariesareidentifiedandrecognisedseparatelyfromthegroup’sinteresttherein,andarerecognisedwithinequity.Lossesofsubsidiariesattributabletononcontrolling interests are allocated to the non controlling interest even if this results in a debit balance being recognisedfornoncontrollinginterest.Transactionswhichresultinchangesinownershiplevels,wherethegroup has control of the subsidiary both before and after the transactions are regarded as equity transactions andare recogniseddirectly in the statementof changes inequity.Thedifferencebetween the fair valueof consideration paid or received and the movement in non controlling interest for such transactions is recognisedinequityattributabletotheownersoftheparent.

Whereasubsidiaryisdisposedofandanoncontrollingshareholdingisretained,theremaininginvestmentismeasuredtofairvaluewiththeadjustmenttofairvaluerecognisedinprofitorlossaspartofthegainorlossondisposalofthecontrollinginterest.

Accounting Policies1.2Consolidation(continued)

Business combinationsThegroupaccountsforbusinesscombinationsusetheacquisitionmethodofaccounting.Thecostofthebusiness combination is measured at the aggregate of the fair values of assets given, liabilities incurred or assumedandequityinstrumentsissued.Costsdirectlyattributabletothebusinesscombinationareexpensedas incurred, except the costs to issue debt which are amortised as part of the effective interest and costs to issueequitywhichareincludedinequity.Contingentconsiderationisincludedinthecostofthecombinationatfairvalueasatthedateofacquisition.Subsequentchangestotheassets,liabilityorequitywhichariseasaresult of the contingent consideration are not affected against goodwill, unless they are valid measurement periodadjustments.

Theacquiree’sidentifiableassets,liabilitiesandcontingentliabilitieswhichmeettherecognitionconditionsof IFRS 3 Business combinations are recognised at their fair values at acquisition date, except for non current assets(ordisposalgroup)thatareclassifiedasheldforsaleinaccordancewithIFrS5Noncurrentassetsheldforsaleanddiscontinuedoperations,whicharerecognisedatfairvaluelesscoststosell.Contingentliabilitiesareonlyincludedintheidentifiableassetsandliabilitiesoftheacquireewherethereisapresentobligationatacquisitiondate.

onacquisition,thegroupassessestheclassificationoftheacquiree’sassetsandliabilitiesandreclassifiesthemwhere the classification is inappropriate for group purposes. This excludes lease agreements andinsurance contracts, whose classification remains as per their inception date. Non controlling interestsarising from a business combination, which are present ownership interests, and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation, are measured either at the present ownershipinterests’proportionateshareintherecognisedamountsoftheacquiree’sidentifiablenetassetsoratfairvalue.Thetreatmentisnotanaccountingpolicychoicebutisselectedforeachindividualbusinesscombination,anddisclosedinthenoteforbusinesscombinations.Allothercomponentsofnoncontrollinginterests are measured at their acquisition date fair values, unless another measurement basis is required by IFrS’s.

In cases where the group held a non controlling shareholding in the acquiree prior to obtaining control, that interest ismeasuredto fairvalueasatacquisitiondate.Themeasurementto fairvalue is includedinprofitor lossfortheyear.Wheretheexistingshareholdingwasclassifiedasanavailableforsalefinancialasset, the cumulative fair value adjustments recognised previously to other comprehensive income and accumulatedinequityarerecognisedinprofitorlossasareclassificationadjustment.Goodwillisdeterminedas the consideration paid, plus the fair value of any shareholding held prior to obtaining control, plus non controllinginterestandlessthefairvalueoftheidentifiableassetsandliabilitiesoftheacquiree.Goodwillisnotamortisedbutistestedonanannualbasisforimpairment.Ifgoodwillisassessedtobeimpaired,thatimpairmentisnotsubsequentlyreversed.Goodwillarisingonacquisitionofforeignentitiesisconsideredanassetoftheforeignentity.Insuchcasesthegoodwillistranslatedtothefunctionalcurrencyofthegroupatthe end of each reporting period with the adjustment recognised in equity through to other comprehensive income.

Accounting Policies cont.


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1.3Significantjudgementsandsourcesofestimationuncertainty

In preparing the consolidated annual financial statements, management is required to make estimatesandassumptionsthataffecttheamountsrepresentedintheconsolidatedannualfinancialstatementsandrelateddisclosures.useofavailableinformationandtheapplicationofjudgementisusedintheformationof estimates.Actual results in the future coulddiffer from these estimateswhichmaybematerial to theconsolidatedannualfinancialstatements.Significantjudgementsinclude:

Trade and other receivablesThegroupassessesitstradereceivablesforimpairmentattheendofeachreportingperiod.Indeterminingwhetheranimpairmentlossshouldberecordedinprofitorloss,thegroupmakesjudgementsastowhetherthereisobservabledataindicatingameasurabledecreaseintheestimatedfuturecashflowsfromafinancialasset.Theimpairmentfortradereceivablesiscalculatedonaportfoliobasis,basedonhistoricallossratios,adjustedfornationalandindustryspecificeconomicconditionsandotherindicatorspresentatthereportingdatethatcorrelatewithdefaultsontheportfolio.Theseannuallossratiosareappliedtoloanbalancesintheportfolioandscaledtotheestimatedlossemergenceperiod.

fair value estimationThefairvalueoffinancialinstrumentstradedinactivemarkets(suchastradingandavailableforsalesecurities)isbasedonquotedmarketpricesat theendof the reportingperiod.Thequotedmarketpriceused forfinancial assets heldby thegroup is the current bidprice.The carrying value less impairmentprovisionoftradereceivablesandpayablesareassumedtoapproximatetheirfairvalues.Thefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletothegroupforsimilarfinancialinstruments.

Impairment testingThe recoverable amounts of cash generating units and individual assets have been determined based on thehigherofvalueinusecalculationsandfairvalueslesscoststosell.Thesecalculationsrequiretheuseofestimatesandassumptions.Itisreasonablypossiblethatthe[nameakeyassumption]assumptionmaychange which may then impact our estimations and may then require a material adjustment to the carrying valueofgoodwillandtangibleassets.

Provisionsprovisionswereraisedandmanagementdeterminedanestimatebasedontheinformationavailable.

TaxationJudgementisrequiredindeterminingtheprovisionforincometaxesduetothecomplexityoflegislation.There are many transactions and calculations for which the ultimate tax determination is uncertain during theordinarycourseofbusiness.Thegrouprecognises liabilitiesforanticipatedtaxaudit issuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfrom the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisionsintheperiodinwhichsuchdeterminationismade.

Accounting Policies cont. Accounting Policies cont.

1.3Significantjudgementsandsourcesofestimationuncertainty(continued)

Taxation(continued)Thegroup recognises thenet future taxbenefit related todeferred income tax assets to theextent thatit isprobable that thedeductible temporarydifferenceswill reverse in the foreseeable future.Assessingtherecoverabilityofdeferredincometaxassetsrequiresthegrouptomakesignificantestimatesrelatedtoexpectationsoffuturetaxableincome.Estimatesoffuturetaxableincomearebasedonforecastcashflowsfromoperationsand theapplicationofexisting tax laws.To theextent that futurecashflowsand taxableincome differ significantly from estimates, the ability of the group to realise the net deferred tax assetsrecordedattheendofthereportingperiodcouldbeimpacted.

Contingent liabilitiesManagement applies its judgement to facts and advice it receives from its attorneys and other advisors in assessingifanobligationisprobable,morelikelythannot,orremote.Thisjudgementapplicationisusedtodetermineiftheobligationisrecognisedasaliabilityordisclosedasacontingentliability.

useful life and residual value of property, plant and equipmentThe estimates of useful lives as translated into depreciation rates are detailed in property, plant and equipmentpolicyontheannualfinancialstatements.Theseratesandresiduallivesoftheassetsarereviewedannually taking cognisance of the forecasted commercial and economic realities and through benchmarking ofaccountingtreatmentsintheindustry.


38 39





1.4 Property, plant and equipment

Property, plant and equipment are tangible assets which the group holds for its own use or for rental to others andwhichareexpectedtobeusedformorethanoneperiod.

An item of property, plant and equipment is recognised as an asset when it is probable that future economic benefitsassociatedwiththeitemwillflowtothecompany,andthecostoftheitemcanbemeasuredreliably.property,plant andequipment is initiallymeasuredat cost.Cost includesallof theexpenditurewhich isdirectly attributable to the acquisition or construction of the asset, including the capitalisation of borrowing costsonqualifyingassetsandadjustmentsinrespectofhedgeaccounting,whereappropriate.

Depreciation of an asset commences when the asset is available for use as intended bymanagement.Depreciation is charged to write off the asset’s carrying amount over its estimated useful life to its estimated residual value, using amethod that best reflects the pattern in which the asset’s economic benefits areconsumedby thegroup. Leasedassets aredepreciated in a consistentmannerover the shorterof theirexpecteduseful livesandthe leaseterm.Depreciation isnotchargedtoanasset if itsestimatedresidualvalueexceedsorisequaltoitscarryingamount.Depreciationofanassetceasesattheearlierofthedatethattheassetisclassifiedasheldforsaleorderecognised.

Theusefullivesofitemsofproperty,plantandequipmenthavebeenassessedasfollows:

Item Depreciation method Average useful life

Furnitureandfixtures Straightline 10yearsofficeequipment Straightline 10yearsIT equipment Straight line 4 yearsotherfixedassets Straightline 5years

The residual value, useful life and depreciation method of each asset are reviewed at the end of each reporting period. If theexpectationsdiffer frompreviousestimates, thechange isaccounted forprospectivelyasachangeinaccountingestimate.

Thedepreciationchargeforeachperiodisrecognisedinprofitorlossunlessitisincludedinthecarryingamountofanotherasset.

Impairment tests are performed on property, plant and equipment when there is an indicator that they may beimpaired.Whenthecarryingamountofanitemofproperty,plantandequipmentisassessedtobehigherthantheestimatedrecoverableamount,animpairment loss isrecognisedimmediately inprofitor losstobringthecarryingamountinlinewiththerecoverableamount.

Accounting Policies cont. Accounting Policies cont.1.4Property,plantandequipment(continued)

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefitsareexpectedfromitscontinueduseordisposal.Anygainor lossarisingfromthederecognitionofanitemofproperty,plantandequipmentisincludedinprofitorlosswhentheitemisderecognised.Thegain or loss arising from the derecognition of an item of property, plant and equipment is determined as the differencebetweenthenetdisposalproceeds,ifany,andthecarryingamountoftheitem.

1.5 Interests in subsidiaries

Companyconsolidatedannualfinancialstatements

Inthecompany’sseparateconsolidatedannualfinancialstatements,investmentsinsubsidiariesarecarriedatcostlessanyaccumulatedimpairment.

Thecostofaninvestmentinasubsidiaryistheaggregateof:

• the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the company; plus

• anycostsdirectlyattributabletothepurchaseofthesubsidiary.

An adjustment to the cost of a business combination contingent on future events is included in the cost of the combinationiftheadjustmentisprobableandcanbemeasuredreliably.


40 41





1.6 financial instruments

ClassificationThegroupclassifiesfinancialassetsandfinancialliabilitiesintothefollowingcategories:

• Financialassetsatfairvaluethroughprofitorlossheldfortrading• Loans and receivables• Financial liabilities measured at amortised cost

Classificationdependson thepurpose forwhich the financial instrumentswereobtained / incurred andtakesplaceatinitialrecognition.Classificationisreassessedonanannualbasis,exceptforderivativesandfinancialassetsdesignatedasatfairvaluethroughprofitorloss,whichshallnotbeclassifiedoutofthefairvaluethroughprofitorlosscategory.

Initial recognition and measurementFinancial instruments are recognised initially when the group becomes a party to the contractual provisions of theinstruments.Thegroupclassifiesfinancialinstruments,ortheircomponentparts,oninitialrecognitionasafinancialasset,afinancialliabilityoranequityinstrumentinaccordancewiththesubstanceofthecontractualarrangement. Financial instruments aremeasured initially at fair value, except for equity investments forwhicha fairvalue isnotdeterminable,whicharemeasuredatcostandareclassifiedasavailable forsalefinancialassets.Forfinancialinstrumentswhicharenotatfairvaluethroughprofitorloss,transactioncostsareincludedintheinitialmeasurementoftheinstrument.Transactioncostsonfinancialinstrumentsatfairvaluethroughprofitor lossarerecognised inprofitor loss.regularwaypurchasesoffinancialassetsareaccountedforattradedate.

Subsequent measurementFinancialinstrumentsatfairvaluethroughprofitorlossaresubsequentlymeasuredatfairvalue,withgainsandlossesarisingfromchangesinfairvaluebeingincludedinprofitorlossfortheperiod.

Netgainsor losseson thefinancial instrumentsat fairvalue throughprofitor loss includedividendsandinterest.Dividendincomeisrecognisedinprofitorlossaspartofotherincomewhenthegroup’srighttoreceivepaymentisestablished.Loansandreceivablesaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessaccumulatedimpairmentlosses.Financialliabilitiesatamortisedcostaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod.

DerecognitionFinancialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeen transferredand thegrouphas transferred substantially all risks and rewardsofownership.TheGroupderecognisesfinancialliabilitieswhen,andonlywhen,theGroup’sobligationsaredischarged,cancelledortheyexpire.

Accounting Policies cont. Accounting Policies cont.1.6Financialinstruments(continued)

fair value determinationThefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),thegroupestablishesfairvaluebyusingvaluationtechniques.Theseinclude the use of recent arm’s length transactions, reference to other instruments that are substantially the same,discountedcashflowanalysis,andoptionpricingmodelsmakingmaximumuseofmarketinputsandrelyingaslittleaspossibleonentityspecificinputs.

ImpairmentoffinancialassetsAteachreportingdatethegroupassessesallfinancialassets,otherthanthoseatfairvaluethroughprofitorloss,todeterminewhetherthereisobjectiveevidencethatafinancialassetorgroupoffinancialassetshasbeenimpaired.

Foramountsduetothegroup,significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyanddefaultofpaymentsareallconsideredindicatorsofimpairment.Inthecaseofequitysecuritiesclassifiedasavailableforsale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelow its cost is consideredan indicatorof impairment. If any suchevidenceexists foravailable for salefinancialassets,thecumulativelossmeasuredasthedifferencebetweentheacquisitioncostandcurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorlossisremovedfromequityasareclassificationadjustmenttoothercomprehensiveincomeandrecognisedinprofitorloss.

Impairmentlossesarerecognisedinprofitorloss.

Impairmentlossesarereversedwhenanincreaseinthefinancialasset’srecoverableamountcanberelatedobjectively to an event occurring after the impairment was recognised, subject to the restriction that the carryingamountofthefinancialassetatthedatethattheimpairmentisreversedshallnotexceedwhatthecarryingamountwouldhavebeenhadtheimpairmentnotbeenrecognised.reversalsofimpairmentlossesarerecognisedinprofitorlossexceptforequityinvestmentsclassifiedasavailableforsale.

Impairment losses are also not subsequently reversed for available for sale equity investments which are heldatcostbecausefairvaluewasnotdeterminable.Wherefinancialassetsareimpairedthroughuseofan allowance account, the amount of the loss is recognised in profit or losswithin operating expenses.Whensuchassetsarewrittenoff,thewriteoffismadeagainsttherelevantallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpenses.

Loansto(from)relatedcompaniesThese include loans to and from related companies are recognised initially at fair value plus direct transaction costs.

Loanstorelatedcompaniesareclassifiedasloansandreceivables.

Loansfromrelatedcompaniesareclassifiedasfinancialliabilitiesmeasuredatamortisedcost.


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Accounting Policies cont.1.6Financialinstruments(continued)

Trade and other receivablesTrade receivables are measured at initial recognition at fair value, and are subsequently measured at amortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinprofitorlosswhenthereisobjectiveevidencethattheassetisimpaired.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,and default or delinquency in payments (more than 30 days overdue) are considered indicators that the tradereceivableisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the lossisrecognisedinprofitorlosswithinoperatingexpenses.Whenatradereceivableisuncollectable,itiswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpensesinprofitorloss.

Tradeandotherreceivablesareclassifiedasloansandreceivables.

Trade and other payablesTrade payables are initially measured at fair value, and are subsequently measured at amortised cost, using theeffectiveinterestratemethod.

Cash and cash equivalentsCash and cash equivalents comprise cash on hand and demand deposits, and other short term highly liquid investmentsthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchangesinvalue.Theseareinitiallyandsubsequentlyrecordedatfairvalue.

1.7 Tax

Current tax assets and liabilitiesCurrent tax for currentandpriorperiods is, to theextentunpaid, recognisedasa liability. If theamountalready paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognisedasanasset.

Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantivelyenactedbytheendofthereportingperiod.

Accounting Policies cont.1.7Tax(continued)

Deferred tax assets and liabilitiesA deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time ofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss).

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilised.Adeferredtax asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at thetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss).

A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable thatfuturetaxableprofitwillbeavailableagainstwhichtheunusedtaxlossescanbeutilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates that have been enacted by the end of the reportingperiod.

Tax expensesCurrentanddeferredtaxesarerecognisedasincomeoranexpenseandincludedinprofitorlossfortheperiod,excepttotheextentthatthetaxarisesfrom:

• a transactionoreventwhich is recognised, in thesameoradifferentperiod, toothercomprehensiveincome, or

• abusinesscombination.

Current tax and deferred taxes are charged or credited to other comprehensive income if the tax relates toitemsthatarecreditedorcharged,inthesameoradifferentperiod,toothercomprehensiveincome.

Current tax and deferred taxes are charged or credited directly to equity if the tax relates to items that are creditedorcharged,inthesameoradifferentperiod,directlyinequity.

1.8 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental toownership.A lease is classifiedasanoperating lease if itdoesnot transfer substantiallyall the risksandrewardsincidentaltoownership.

operating leases – lesseeoperatingleasepaymentsarerecognisedasanexpenseonastraightlinebasisovertheleaseterm.Thedifference between the amounts recognised as an expense and the contractual payments are recognised as anoperatingleaseasset.Thisliabilityisnotdiscounted.

Anycontingentrentsareexpensedintheperiodtheyareincurred.


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Accounting Policies cont.1.9 Impairment of assets

The group assesses at each end of the reporting period whether there is any indication that an asset may be impaired.Ifanysuchindicationexists,thegroupestimatestherecoverableamountoftheasset.

Irrespectiveofwhetherthereisanyindicationofimpairment,thegroupalso:

• tests intangible assets with an indefinite useful life or intangible assets not yet available for use forimpairmentannuallybycomparingitscarryingamountwithitsrecoverableamount.Thisimpairmenttestisperformedduringtheannualperiodandatthesametimeeveryperiod.

• testsgoodwillacquiredinabusinesscombinationforimpairmentannually.

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset.Ifitisnotpossibletoestimatetherecoverableamountoftheindividualasset,therecoverableamountofthecashgeneratingunittowhichtheassetbelongsisdetermined.

The recoverable amount of an asset or a cash generating unit is the higher of its fair value less costs to sell anditsvalueinuse.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reducedtoitsrecoverableamount.Thatreductionisanimpairmentloss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediatelyinprofitorloss.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecrease.

An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in priorperiodsforassetsotherthangoodwillmaynolongerexistormayhavedecreased.Ifanysuchindicationexists,therecoverableamountsofthoseassetsareestimated.

The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognisedfortheassetinpriorperiods.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other thangoodwillisrecognisedimmediatelyinprofitorloss.Anyreversalofanimpairmentlossofarevaluedassetistreatedasarevaluationincrease.

1.10 Stated capital and equity

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting allofitsliabilities.

Accounting Policies cont.1.11Employeebenefits

ShorttermemployeebenefitsThecostofshort termemployeebenefits, (thosepayablewithin12monthsafter theservice is rendered,suchaspaidvacationleaveandsickleave,bonuses,andnonmonetarybenefitssuchasmedicalcare),arerecognisedintheperiodinwhichtheserviceisrenderedandarenotdiscounted.

The expected cost of compensated absences is recognised as an expense as the employees render services thatincreasetheirentitlementor,inthecaseofnonaccumulatingabsences,whentheabsenceoccurs.

1.12 Provisions and contingencies

provisionsarerecognisedwhen:

• thegrouphasapresentobligationasaresultofapastevent;• it isprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettlethe

obligation; and• areliableestimatecanbemadeoftheobligation.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

1.13 Revenue

Whentheoutcomeofatransactioninvolvingtherenderingofservicescanbeestimatedreliably,revenueassociated with the transaction is recognised by reference to the stage of completion of the transaction at the endofthereportingperiod.Theoutcomeofatransactioncanbeestimatedreliablywhenallthefollowingconditionsaresatisfied:

• theamountofrevenuecanbemeasuredreliably;• itisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtothegroup;• thestageofcompletionofthetransactionattheendofthereportingperiodcanbemeasuredreliably;

and• thecostsincurredforthetransactionandthecoststocompletethetransactioncanbemeasuredreliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably,revenueshallberecognisedonlytotheextentoftheexpensesrecognisedthatarerecoverable.

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volumerebates,andvalueaddedtax.


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Accounting Policies cont.1.13Revenue(continued)

Interestisrecognised,inprofitorloss,usingtheeffectiveinterestratemethod.

Dividendsarerecognised,inprofitorloss,whenthecompany’srighttoreceivepaymenthasbeenestablished.

1.14 Translation of foreign currencies

Functional and presentation currencyItemsincludedintheconsolidatedannualfinancialstatementsofeachofthegroupentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(functionalcurrency).

TheconsolidatedconsolidatedannualfinancialstatementsarepresentedinuSDollarwhichis thegroupfunctionalandpresentationcurrency.

foreign currency transactionsA foreign currency transaction is recorded, on initial recognition in US Dollar, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the dateofthetransaction.

Attheendofthereportingperiod:• foreigncurrencymonetaryitemsaretranslatedusingtheclosingrate;• nonmonetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusing

the exchange rate at the date of the transaction; and• nonmonetaryitemsthataremeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchange

ratesatthedatewhenthefairvaluewasdetermined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous consolidatedannualfinancialstatementsarerecognisedinprofitorlossintheperiodinwhichtheyarise.

Whenagainorlossonanonmonetaryitemisrecognisedtoothercomprehensiveincomeandaccumulatedin equity, any exchange component of that gain or loss is recognised to other comprehensive income and accumulated in equity.When a gain or loss on a nonmonetary item is recognised in profit or loss, anyexchangecomponentofthatgainorlossisrecognisedinprofitorloss.

CashflowsarisingfromtransactionsinaforeigncurrencyarerecordedinuSDollarbyapplyingtotheforeigncurrency amount the exchange rate between the US Dollar and the foreign currency at the date of the cash flow.

Accounting Policies cont.1.14Translationofforeigncurrencies(continued)

Investmentsinsubsidiaries,jointventuresandassociatesTheresultsandfinancialpositionofaforeignoperationaretranslatedintothefunctionalcurrencyusingthefollowingprocedures:

• assetsandliabilitiesforeachstatementoffinancialpositionpresentedaretranslatedattheclosingrateatthedateofthatstatementoffinancialposition;

• incomeandexpensesforeachitemofprofitorlossaretranslatedatexchangeratesatthedatesofthetransactions; and

• allresultingexchangedifferencesarerecognisedtoothercomprehensiveincomeandaccumulatedasaseparatecomponentofequity.

Exchange differences arising on a monetary item that forms part of a net investment in a foreign operation are recognised initially toothercomprehensive incomeandaccumulated in the translation reserve.Theyarerecognisedinprofitorlossasareclassificationadjustmentthroughtoothercomprehensiveincomeondisposalofnetinvestment.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilitiesoftheforeignoperation.

Thecashflowsofaforeignsubsidiaryaretranslatedattheexchangeratesbetweenthefunctionalcurrencyandtheforeigncurrencyatthedatesofthecashflows.

1.15 Deferred income and deferred expenses

Deferred income represents the amount received in advance against expenses that are deferred and are recognisedwhentheoutcomeofatransactioninvolvingtherenderingofservicescanbeestimatedreliably.Deferred expenses represent initial set up costs that are deferred and directly associated with the outcome ofthetransactioninvolvingrenderingoftheservice.Theseexpensesarerecognisedintheincomestatementwhentheassociatedcostsdirectlyattributabletotherevenuegeneratedhasbeenestimatedreliably.


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notes to the Consolidated Annual financial Statements

2. new Standards and Interpretations

2.1 Standards and interpretations effective and adopted in the current year

In the current year, the group has adopted the following standards and interpretations that are effective for thecurrentfinancialyearandthatarerelevanttoitsoperations:

AmendmenttoIFRS7:FinancialInstruments:Disclosures:AnnualImprovementsprojectTheamendmentprovidesadditionalguidanceregardingtransferswithcontinuinginvolvement.Specifically,itprovidesthatcashflowsexcludescashcollectedwhichmustberemittedtoatransferee.Italsoprovidesthatwhenanentitytransfersafinancialassetbutretainstherighttoservicetheassetforafee,thattheentityshouldapplytheexistingguidancetoconsiderwhetherithascontinuinginvolvementintheasset.

Theeffectivedateofthegroupisforyearsbeginningonorafter1January2016.

Thegrouphasadoptedtheamendmentforthefirsttimeinthe2016consolidatedannualfinancialstatements.

TheimpactoftheamendmentissetoutinnoteChangesinAccountingpolicy.

Disclosure Initiative: Amendment to IAS 1: Presentation of financial StatementsThe amendment provides new requirements when an entity presents subtotals in addition to those required by IAS1 in its consolidated annual financial statements. It alsoprovides amendedguidance concerningtheorderofpresentationofthenotesintheconsolidatedannualfinancialstatements,aswellasguidancefor identifying which accounting policies should be included. It further clarifies that an entity’s share ofcomprehensive income of an associate or joint venture under the equity method shall be presented separatelyintoitsshareofitemsthata)willnotbereclassifiedsubsequentlytoprofitorlossandb)thatwillbereclassifiedsubsequentlytoprofitorloss.

Theeffectivedateofthegroupisforyearsbeginningonorafter1January2016.



Amendment to IAS 27: Equity Method in Separate financial StatementsThe amendment adds the equity method to the methods of accounting for investments in subsidiaries, associatesandjointventuresintheseparateconsolidatedannualfinancialstatementsofanentity.

Theeffectivedateoftheamendmentisforyearsbeginningonorafter1January2016.



notes to the Consolidated Annual financial Statements cont.

2.NewStandardsandInterpretations(continued)

2.2 Standards and interpretations not yet effective

The group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the group’s accounting periods beginning on or after 1 January 2017 or laterperiods:

IfRS 9 financial InstrumentsIFrS 9 issued inNovember 2009 introduced new requirements for the classification andmeasurementsof financial assets. IFrS 9was subsequently amended inoctober 2010 to include requirements for theclassification and measurement of financial liabilities and for derecognition, and in November 2013 toincludethenewrequirementsforgeneralhedgeaccounting.AnotherrevisedversionofIFrS9wasissuedinJuly2014mainlytoincludea)impairmentrequirementsforfinancialassetsandb)limitedamendmentstotheclassificationandmeasurementrequirementsbyintroducinga“fairvaluethroughothercomprehensiveincome”(FvToCI)measurementcategoryforcertainsimpledebtinstruments.

KeyrequirementsofIFrS9:

• AllrecognisedfinancialassetsthatarewithinthescopeofIAS39FinancialInstruments:recognitionandmeasurementarerequiredtobesubsequentlymeasuredatamortisedcostorfairvalue.Specifically,debtinvestmentsthatareheldwithinabusinessmodelwhoseobjectiveistocollectthecontractualcashflows,andthathavecontractualcashflowsthataresolelypaymentsofprincipalandinterestontheoutstandingprincipalaregenerallymeasuredatamortisedcostat theendof subsequent reportingperiods.Debtinstruments that are held within a business model whose objective is achieved by both collecting contractualcashflowsandsellingfinancialassets,andthathavecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestonoutstandingprincipal,aremeasuredatFvToCI.Allotherdebtandequityinvestmentsaremeasuredatfairvalueattheendofsubsequentreportingperiods.Inaddition,underIFrS9,entitiesmaymakeanirrevocableelectionto present subsequent changes in the fair value of an equity investment (that is not held for trading) in othercomprehensiveincomewithonlydividendincomegenerallyrecognisedinprofitorloss.

• Withregardtothemeasurementoffinancialliabilitiesdesignatedasatfairvaluethroughprofitorloss,IFrS9requiresthattheamountofchangeinthefairvalueofthefinancialliabilitythatisattributabletochangesin the credit risk of the liability is presented in other comprehensive income, unless the recognition of the effect of the changes of the liability’s credit risk in other comprehensive income would create or enlarge anaccountingmismatchinprofitorloss.underIAS39,theentireamountofthechangeinfairvalueofafinancialliabilitydesignatedasatfairvaluethroughprofitorlossispresentedinprofitorloss.


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2.2Standardsandinterpretationsnotyeteffective(continued)• Inrelationtotheimpairmentoffinancialassets,IFrS9requiresanexpectedcreditlossmodel,asopposed

toanincurredcreditlossmodelunderIAS39.Theexpectedcreditlossmodelrequiresanentitytoaccountforexpectedcreditlossesandchangesinthoseexpectedcreditlossesateachreportingdatetoreflectchangesincreditrisksinceinitialrecognition.Itisthereforenolongernecessaryforacrediteventtohaveoccurredbeforecreditlossesarerecognised.

• Thenewgeneralhedgeaccountingrequirementsretainthethreetypesofhedgeaccountingmechanismscurrently available in IAS 39. under IFrS 9, greater flexibility has been introduced to the types oftransactionseligibleforhedgeaccounting,specificallybroadeningthetypesofinstrumentsthatqualifyfor hedging instruments and the typesof risk componentsof nonfinancial items that areeligible forhedgeaccounting.Inaddition,theeffectivenesstesthasbeenreplacedwiththeprincipalofan“economicrelationship”. retrospective assessment of hedge effectiveness is also no longer required. Enhanceddisclosurerequirementsaboutanentity’sriskmanagementactivitieshavealsobeenintroduced.

Theeffectivedateofthestandardisforyearsbeginningonorafter1January2018.

Thegroupexpectstoadoptthestandardforthefirsttimeinthe2018consolidatedannualfinancialstatements.

Theimpactofthisstandardiscurrentlybeingassessed.

IfRS 15 Revenue from Contracts with CustomersIFRS 15 supersedes IAS 11 Construction contracts; IAS 18 Revenue; IFRIC 13 Customer Loyalty Programmes; IFRIC 15 Agreements for the construction of Real Estate; IFRIC 18 Transfers of Assets from Customers and SIC 31revenue-BarterTransactionsInvolvingAdvertisingServices.

The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or servicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.Anentityrecognisesrevenueinaccordancewiththatcoreprinciplebyapplyingthefollowingsteps:

• Identifythecontract(s)withacustomer

• Identifytheperformanceobligationsinthecontract

• Determinethetransactionprice

• Allocatethetransactionpricetotheperformanceobligationsinthecontract



2.2Standardsandinterpretationsnotyeteffective(continued)

IFRS15RevenuefromContractswithCustomers(continued)• recogniserevenuewhen(oras)theentitysatisfiesaperformanceobligation.IFrS15alsoincludes extensivenewdisclosurerequirements.


Thegroupexpectstoadoptthestandardforthefirsttimeinthe2017consolidatedannualfinancialstatements.

Theimpactofthisstandardiscurrentlybeingassessed.

IfRS 16 LeasesIFRS 16 will supersede IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases -Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease

The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities forall leasesunless the lease term is12monthsor lessor theunderlyingassethasa lowvalue. Lessorscontinuetoclassifyleasesasoperatingorfinance,withIFrS16’sapproachtolessoraccountingsubstantiallyunchangedfromitspredecessor,IAS17.


Thegroupexpectstoadoptthestandardforthefirsttimeinthe2020consolidatedannualfinancialstatements.Theimpactofthisstandardiscurrentlybeingassessed.


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group Company

figures in uS Dollars 2016 2015 2016 2015

3. Revenue

Rendering of services 310 814 - - -

4. operating loss

Operating loss for the year is stated after accountingforthefollowing: operating lease charges Premises •Contractualamounts 22675 3392 22675 3392 (profit)lossonexchangedifferences 2905 (46838) 2905 (46838)Depreciation on property, plant and equipment 2 824 301 2 824 301 Employee costs 186 706 31 876 91 591 31 876 5. finance income Interest income Interest on African Alliance Limited investment 3 224 3 078 3 224 3 078 InterestonfixeddepositStanbicBankLimited 52219 14878 52219 14878Interest on banks 2 233 - 2 233 - 57 676 17 956 57 676 17 956

6. Auditors’ remuneration

Fees 7 521 - 7 521 -


7. other comprehensive income

Components of other comprehensive income Group2016 Gross TaxNetbefore Non- Net non controlling controlling interest interest Itemsthatmaybereclassifiedtoprofitor loss Exchange differences on translating foreign operations Exchange differences arising duringthe year (10 707 ) - (10 707 ) 5 353 (5 354 ) Components of other comprehensive incomeGroup2015 Gross TaxNetbefore Non- Net non controlling controlling interest interest Itemsthatmaybereclassifiedtoprofitorloss Exchange differences on translating foreign operations Exchange differences arising during the year (26 ) - (26 ) 13 (13 )

8. Taxation

Reconciliation of the tax expense

reconciliationbetweenaccountingprofitandtaxexpense. Accounting loss (324 643 ) (28 967 ) (333 579 ) (28 967 ) Tax at the applicable tax rate of 22% (2015:22%) (48696) (4345) (50037) (4345) Taxeffectofadjustmentsontaxableincome Deferred tax not recognised 48 696 4 345 50 037 4 345 - - - -

Thecompanyhasacarryforwardlossduringthecurrentyear.Thecompanyhasnotrecognisedadeferredtaxassetsincethecompanyexpectstoearnincomethatisexemptinnatureintheforeseeablefuture.


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9. Property, plant and equipment group 2016 2015 Cost Accumu Carrying Cost Accumu Carrying -lated value -lated value depreci depreci -ation -ation

Furnitureandfixtures 3721 (306) 3415 - - -officeequipment 402 (27) 375 - - -IT equipment 10 982 (2 373 ) 8 609 3 134 (301 ) 2 833 otherfixedassets 24788 (413) 24375 - - -Total 39893 (3119) 36774 3134 (301) 2833

Reconciliation of property,plant and equipment group 2016 Opening Additions Depreci- Closing carrying ation carrying value valueFurnitureandfixtures - 3721 (306) 3415officeequipment - 402 (27) 375IT equipment 2 833 7 854 (2 078 ) 8 609 otherfixedassets - 24788 (413) 24375 2833 36765 (2824) 36774


9.Property,plantandequipment(continued)

Reconciliation of property, plant and equipment group 2015 Opening Additions Depreci- Closing carrying ation carrying value value

IT equipment - 3 134 (301 ) 2 833 Reconciliation of property, plant and equipment Company 2016 Opening Additions Depreci- Closing carrying ation carrying value value

Furnitureandfixtures - 3721 (306) 3415officeequipment - 402 (27) 375IT equipment 2 833 7 854 (2 078 ) 8 609 otherfixedassets - 24788 (413) 24375 2833 36765 (2824) 36774 Reconciliation of property, plant and equipment Company 2015 Opening Additions Depreci- Closing carrying ation carrying value value

IT equipment - 3 134 (301 ) 2 833


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10. Investments in subsidiaries

The following table lists the entities which are controlled by the group, either directly or indirectly through subsidiaries.

Company name % voting % voting % holding % holding Carrying Carrying of company power power 2016 2015 amount amount 2016 2015 2016 2015

Africa Events Limited incorporated in Jersey Insland,unitedKingdom 50.00% 50.00% 50.00% 50.00% 100 100 Adventis Limited incorporated in Jersey Insland,unitedKingdom 50.00% 50.00% 50.00% 50.00% 1 - Ethiopia Investments II Limited incorporatedinmauritius 100.00% 100.00% 100.00% 100.00% 100 - 201 100

Afinitas Lmited holds beneficial ownership inAdventis Limited and Ethiopia Investments II Limited. Thesharesareheldbyregisterednomineesandtrusteeforthecompany.

ThedirectorsintendtoincreaseshareholdingofAfinitasLimitedinAdventisLimitedfrom50%to66%inthesubsequentyearsaspertheshareholderagreement.


group Company

figures in uS Dollar 2016 2015 2016 2015

11. Loans from related companies Capital Africa Limited (1 079 ) (16 966 ) - - The above loan is unsecured, carry no interest andarerepayableondemand.

fair value of loans to and from related companies

The fair value of loan to and from related companies approximatesitsfairvalue.

12.Otherfinancialassets Atfairvaluethroughprofitorloss-heldfortrading African Alliance Botswana Liquidity Fund 11 004 251 273 11 004 251 273 Current assets Atfairvaluethroughprofitorloss-heldfortrading 11004 251273 11004 251273 Fairvaluehierarchyoffinancialassetsatfairvaluethroughprofitorloss

Forfinancialassetsrecognisedatfairvalue,disclosureisrequiredofafairvaluehierarchywhichreflectsthesignificanceoftheinputsusedtomakethemeasurements.

Level1representsthoseassetswhicharemeasuredusingunadjustedquotedpricesforidenticalassets.

Level 2 applies inputs other than quoted prices that are observable for the assets either directly (as prices) orindirectly(derivedfromprices).

Level3appliesinputswhicharenotbasedonobservablemarketdata. Level 2 African Alliance Botswana Liquidity Fund 11 004 251 273 11 004 251 273 Creditqualityofotherfinancialassets

Thecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetohistoricalinformationaboutcounterpartydefaultrates.


58 59






13. Deferred tax

Recognition of deferred tax asset

The group does not recognise deferred tax asset on the losses carried forward since the management forecaststhatthegroupwillbemakingprofitsthatareexemptfromtaxintheforeseenfuture.

group Company


14. Trade and other receivables Trade receivables 51 38 543 49 47 Amounts due from related parties - - 108 425 - Prepayments 27 732 24 058 4 835 - Deposits 1 552 - 1 552 - Deferred expenses 29 009 21 788 - - 58 344 84 389 114 861 47 fair value of trade and other receivables Trade and other receivables 58 344 84 389 114 861 47

Trade and other receivables past due but not impaired

Therearenotradeandotherreceivableswhicharepastdueorimpairedasattheyearend.

15. Cash and cash equivalents

Cashandcashequivalentsconsistof: Cash on hand 584 - 584 - Bank balances 501 509 35 795 379 439 11 402 Short term deposits 8 162 151 8 762 758 8 162 151 8 762 758 8 664 244 8 798 553 8 542 174 8 774 160 Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due norimpairedcanbeassessedbyreferencetoexternalcreditratings.ThoughthebanksinBotswanaarenotrated,theyaresubsidiariesofreputedfinancialinstitutionslocatedinSouthAfricaandunitedKingdom.Thecredit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impairedcanbeassessedbyreferencetoexternalcreditratings.ZemenbankisafinancialinstitutionlocatedinEthiopia.


group Company


16. Stated capital Reconciliation of number of shares issued: Number of shares in issue at the beginning of the year 213 946 250 100 213 946 250 100 Number of shares issued during the year - 213 946 150 - 213 946 150 213 946 250 213 946 250 213 946 250 213 946 250 Issued Ordinary shares of no par value 9 164 838 9 164 838 9 164 838 9 164 838 less:issuecosts (97278) (97278) (97278) (97278) 9 067 560 9 067 560 9 067 560 9 067 560 17. Deferred income

Deferred income represents the amount received in advance for a workshop and will only be recognised whentheworkshoptakesplace. Deferred income 46 168 80 188 - - 18. Trade and other payables Trade payables 3 246 1 510 2 979 1 267 value added tax 8 973 8 774 - - Accrued expense 12 427 2 416 7 323 - Other payables 9 389 2 261 3 905 2 261 34 035 14 961 14 207 3 528

fair value of trade and other payables Trade payables 34 035 14 961 14 207 3 528


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group Company


19. Cash used in operations Loss before taxation (324 643 ) (28 967 ) (333 579 ) (28 967 ) Adjustmentsfor: Depreciation and amortisation 2 824 301 2 824 301 Finance income (57 676 ) (17 956 ) (57 676 ) (17 956 ) Other non-cash items (10 709 ) - - - Changes in working capital: Trade and other receivables (26 047 ) (84 393 ) (114 814 ) (49 ) Trade and other payables 19 074 15 013 10 679 3 530 Deferred income (34 020 ) 80 188 - - (379103) (35814) (492566) (43141) 20. Tax paid Balance at beginning of the year 964 - 964 - Balance at end of the year (1 463 ) (964 ) (1 463 ) (964 ) (499) (964) (499) (964) 21. Movement in investments fair value of assets acquired Equity - - 101 100 Consideration paid Cash - - (101 ) (100 ) Netcashoutflowonacquisition Cash consideration paid - - (101 ) (100 )


group Company


22. Commitments

Investment funding

The Board of directors have committed to an approved budget of uSD 2.5 million, to be allocated toeach of the new investment companies, Adventis Limited and Ethiopia Investments Limited to fund future investments.

Leased property

Minimum lease payments due- within one year 18 497 - 18 497 --insecondtofifthyearinclusive 77683 - 77683 - 96180 - 96180 -

23. Basic and diluted earnings per unit

Basic and diluted earnings per unit is calculated by dividing the earnings attributable to the unit holders by the weighted average number of unit holders in issue during the year.Basic earnings per share (in USD) 324 643 28 967 333 579 28 967Basicearningspershare(inuSD) 0.152 0.014 0.156 0.014Dilutedearningspershare(inuSD) 0.152 0.014 0.156 0.014Weightedaveragenumberofunitsatyearend 213946250 213946250213946250213946250


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24. Top ten shareholders information

Shareholderanalysiscontainedonpage17oftheAnnualreport.


group Company


25. Related parties Relationships Subsidiaries Refer to note 10

Members of key management Lesang Magang Rupert J McCammom Leutlwetse M Tumelo Dawn Pickering (Resigned 14 September 2016) Keith R Jefferis (Appointed 23 November 2016) Related party balances LoanaccountsOwing(to)byrelatedparties African Capital Limited 1 075 16 966 - - Amounts included in other receivables regarding related parties Adventis Limited - - 108 425 - Related party transactions Compensation to director and other key management Director fees 34 467 7 468 34 467 7 468 Directors remuneration 44 380 24 408 44 380 24 408 78 847 31 876 78 847 31 876


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26.Categoriesoffinancialinstruments(cont.) note financial Loans financial Equity and Total assetsat and liabilities financial fair value receivables at assets and through amortised liabilities profitor cost loss Categoriesoffinancialinstruments group 2016 Assets Non-CurrentAssetsProperty, plant and equipment 9 - - - 36 774 36 774

Current AssetsTrade and other receivables 14 - 30 612 - 27 732 58 344otherfinancialassets 12 - - - 11004 11004Current tax receivable - - - 1 463 1 463Cash and cash equivalents 15 - 8 664 244 - - 8 664 244 - 8694856 - 40199 8735055Total Assets - 8694856 - 76973 8771829

Equity and Liabilities

Stated capital 16 - - - 9 067 560 9 067 560Foreign currency translation reserve - - - (5 367 ) (5 367 )Accumulated loss - - - (370 822 ) (370 822 ) - - - 8691371 8691371Non-controlling interest - - - (824) (824 )Total Equity - - - 8 690 547 8 690 547

Liabilities

Current Liabilities Trade and other payables 18 - - 25 062 897 3 34 035Loans from related companies 11 - - 1 079 - 1 079Deferred income 17 - - - 46 16 8 46 168 - - 26141 55141 81282TotalLiabilities - - 26141 55141 81282TotalEquityandLiabilities - - 261418745688 8771829


26.Categoriesoffinancialinstruments(cont.) note financial Loans financial Equity and Total assetsat and liabilities financial fair value receivables at assets and through amortised liabilities profitor cost loss

Categoriesoffinancialinstruments group 2015

Assets

Non-CurrentAssetsProperty, plant and equipment 9 - - - 2 833 2 833

Current AssetsTrade and other receivables 14 - 60 331 - 24 058 84 393otherfinancialassets 12 251273 - - - 251273Current tax receivable - - - 964 964Cash and cash equivalents 15 - 8 798 553 - - 8 798 553 251273 8858884 - 25022 9135179TotalAssets 251273 8858884 - 27855 9138012


Stated capital 16 - - - 9 067 560 9 067 560Foreign currency translation reserve - - - (13 ) (13 )Accumulated loss - - - (41 711 ) (41 711 ) - - - 9025836 9025836Non-controlling interest - - - 61 61TotalEquity - - - 9025897 9025897

Liabilities

Current Liabilities Trade and other payables 18 - - 6 187 8 774 14 961Loans from related companies 11 - - 16 966 - 16 966Deferred income 17 - - - 80 188 80 188 - - 23153 88962 112115TotalLiabilities - - 23153 88962 112115TotalEquityandLiabilities - - 23153 9114859 9138012


66 67






26.Categoriesoffinancialinstruments(cont.)

note financial Loans financial Equity and Total assetsat and liabilities financial fair value receivables at assets and through amortised liabilities profitor cost loss Categoriesoffinancialinstruments Company 2016

Assets

Non-CurrentAssetsProperty, plant and equipment 9 - - - 36 774 36 774Investments in subsidiaries 10 - - - 201 201 - - - 36975 36975

Current AssetsTrade and other receivables 14 - 110 026 - 4 835 114 861otherfinancialassets 12 - - - 11004 11004Current tax receivable - - - 1 463 1 463Cash and cash equivalents 15 - 8 542 174 - - 8 542 174 - 8652200 - 17302 8669502TotalAssets - 8652200 - 54277 8706477


Stated capital 16 - - - 9 067 560 9 067 560Accumulated loss - - - (375 290 ) (375 290 ) - - - 8692270 8692270TotalEquity - - - 8692270 8692270

Liabilities Current Liabilities Trade and other payables 18 - - 14 207 - 14 207TotalLiabilities - - 14207 - 14207TotalEquityandLiabilities - - 14207 8692270 8706477


26.Categoriesoffinancialinstruments(cont.) note financial Loans financial Equity and Total assetsat and liabilities financial fair value receivables at assets and through amortised liabilities profitor cost loss

Categoriesoffinancialinstruments group 2015

Assets

Non-CurrentAssetsProperty, plant and equipment 9 - - - 2 833 2 833Investments in subsidiaries 10 - - - 100 100 - - - 2933 2933Current AssetsTrade and other receivables 14 - 47 - - 47otherfinancialassets 12 - - - 251273 251273Current tax receivable - - - 964 964Cash and cash equivalents 15 - 8 774 160 - - 8 774 160 - 8774207 - 252237 9026444TotalAssets - 8774207 - 255170 9029377


Stated capital 16 - - - 9 067 560 9 067 560Accumulated loss - - - (41 711 ) (41 711 ) - - - 9025849 9025849TotalEquity - - - 9025849 9025849

Liabilities Current Liabilities Trade and other payables 18 - - 3 528 - 3 528TotalLiabilities - - 3528 - 3528TotalEquityandLiabilities - - 3528 9025849 9029377


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27. Risk management

Capital risk management

The group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concerninordertoprovidereturnsforshareholderandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

The capital structure of the group consists of cash and cash equivalents disclosed in note 15, and equity as disclosedinthestatementoffinancialposition.

Therearenoexternallyimposedcapitalrequirements.

There have been no changes to what the entity manages as capital, the strategy for capital maintenance or externallyimposedcapitalrequirementsfromthepreviousyear.

financial risk management

Thegroup’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.

Liquidity risk

prudent liquidity risk management implies maintaining sufficient cash and marketable securities, theavailability of funding through an adequate amount of committed credit facilities and the ability to close out marketpositions.

Thegroup’srisktoliquidityisaresultofthefundsavailabletocoverfuturecommitments.Thegroupmanagesliquidityriskthroughanongoingreviewoffuturecommitments.

The table below analyses the group’s financial liabilities into relevant maturity groupings based on theremainingperiodatthestatementoffinancialpositiontothecontractualmaturitydate.Theamountsdisclosedinthetablearethecontractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant.


27.Riskmanagement(cont.)

Liquidity risk

group

At 31 December 2016 Less than 1 year

Loans from related companies 1 079Trade and other payables 25 062


Loans from related companies 16 966Trade and other payables 6 187

Company


Trade and other payables 14 207


Trade and other payables 3 528


70 71






27.Riskmanagement(cont.)

Credit risk

Creditriskconsistsmainlyofcashdeposits,cashequivalentsandotherdebtors.Theonlydepositscashwithmajorbankswithhighqualitycreditstandingandlimitsexposuretoanyonecounter-party.

Financialassetsexposedtocreditriskatyearendwereasfollows:

group Company

financial instrument 2016 2015 2016 2015 Trade and other receivables 58 345 84 389 114 861 47Cash and cash equivalents 8 664 244 8 798 553 8 542 174 8 774 160

foreign exchange risk

The group does not hedge foreign exchange fluctuations.

foreign currency exposure at the end of the reporting period

Current assetsotherfinancialassetBWp117961(2015BWp:p2782643) 11004 251273 11004 251273 CashandcashequivalentsBWp82552 7701 - 7701 -Cash and cash equivalents ETB 1 596 590 71 037 - 71 037 -

Exchange rates used for conversion of foreign items were:

BWp 0.09328 0.09030 0.09328 0.09030GBp 1.23360 1.48236 1.23360 1.48236ETB 0.04460 0.04460


28. fair value information

group Company

note 2016 2015 2016 2015fair value hierarchy

Thetablebelowanalysesassetsandliabilitiescarriedatfairvalue.Thedifferentlevelsaredefinedasfollows:

Level1:Quotedunadjustedpricesinactivemarketsforidenticalassetsorliabilitiesthatthegroupcanaccessatmeasurementdate.Level2:Inputsotherthanquotedpricesincludedinlevel1thatareobservablefortheassetorliabilityeitherdirectlyorindirectly.Level3:unobservableinputsfortheassetorliability.

Levels of fair value measurements

Level 2

Recurring fair value measurements

Assets

financial assets at fair value through profitorloss- held for trading 12 African Alliance Botswana Liquidity Fund 11 004 251 273 11 004 251 273Total 11004 - 11004 -

Valuation techniques used to derive level 2 fair values TheGroup’sinvestmentinAfricanAllianceBotswanaLiquidityFundisnottradedinanactivemarket.Thesehavebeenfairvaluedusingobservableinterestratescorrespondingtothematurityofthefund.Theeffectsofnon-observableinputsarenotsignificantforthefund.


72

consolidated annual financialstatements for the year ended 31 december 2016


29. Events after the reporting period

Noadjustingorsignificantnon-adjustingeventshaveoccurredbetweenthereportingdateandthedateofauthorisation.

30. Segment reporting

Segment information isorganised intocategoriesbasedongeographical locationof theoperations.Thesegmentsarethebasisinwhichthegroupreportsontheperformanceofitsoperations.

2016 Botswana outside Total Botswana Revenues - 310 813 310 813Other income - 10 925 10 925Finance income 57 676 - 57 676Operating expenses (391 255 ) (312 802 ) (704 057 ) (333579) 8936 (324643)

2015 Botswana outside Total Botswana

Other income 46 838 - 46 838Finance income 17 956 - 17 956Operating expenses (93 761 ) - (93 761 ) (28967) - (28967)

ThecompanyoperatinginBotswanaisAfinitasLimited

The companies operating outside Botswana are Africa Events Limited, Adventis Limited and Ethiopia InvestmentsLimited.

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