UASF

Annual Report 2020 Annual Report 2020

1

Theme Rationale We believe that a connected Botswana is a stronger Botswana; this is why we shine the light of connectivity into the darkest corners of the Country to connect Batswana to Botswana and to the rest of World.

Just like the patterns on our iconic leteisi print, inter-connectedness is at the heart of what we do; we aim to inter-weave communications services into the fabric of Botswana culture ensuring that no town, village, home or person is left without essential communication services that have the potential to positively transform our Nation.

UASF ANNUAL REPORT 2020 2 Contents

10 LEADERSHIP

Chairman’s Statement 06 UASF Board of Trustees 1 2

20 PERFORMANCE

UASF Actual Performance 16 Monitoring and Evaluation of 22 Existing Projects International Participation 27

UASF ANNUAL REPORT 2020 3

30 ANNUAL FINANCIAL STATEMENTS

General Information 30 Trustees Report 31 Statement of Responsibilities 32 by the Board of Trustees Independent Auditor’s 33 Report Statement of Financial 36 Position Statement of Comprehensive 37 Income Statement of Cash Flows 38 Statement of Changes in 39 Equity Accounting Policies 40 Notes to the Annual Financial 49 Statements

The following supplementary information does not form part of the Annual Financial Statements and is unaudited: Detailed Income Statement 61

UASF ANNUAL REPORT 2020 adequate communication services for all users all users services for communication adequate locations; of their geographical irrespective or access of reach ease to with respect citizens value services of acceptable communication to andand quality; all services across the use of communication of individuals and communities. levels income The UASF strives to achieve its mandate through through its mandate achieve to strives The UASF (subsidies or financial assistance providing enable delivery entities to different to grants) be deemed that may areas of services to mandate key The Fund’s unviable. commercially key on the following premised is, therefore, of universality: pillars and uniform for Advocating • Availability: non-discrimination of : Ensuring • Accessibility do not deter that prices : Ensuring • Affordability The UASF draws its mandate mandate its draws The UASF from the Communications Act, 2012 Authority Regulatory (CRA Act). MANDATE MANDATE AND OBJECTIVES 2020 REPORT ANNUAL UASF

4 About UASF

About 5 Us UASF OBJECTIVES The Fund seeks to achieve the following: i. ii. iii. iv. Adequate access Innovative Capacity building Increased to communication approaches to and enhancement production, services by all, National provision of digital literacy development and through promoting of ICTs and their across the country; consumption/usage delivery of services affordable usage; and of locally produced to underserved and content and unserved areas; applications.

MISSION VISION VALUES To promote accessibility, A digitally connected Equality usage and affordability of Nation. Financial Prudence communication services Accountability for all. Transparency Innovation and Excellence

ACHIEVEMENTS: 32 100% WiFi hotspot PROJECT COMPLETION: sites deployed at Deployment of 3G and 4G networks strategic areas in 68 villages across the Mabutsane across seven Sub-district, Kgalagadi District & locations. Ghanzi District.

UASF ANNUAL REPORT 2020 Chairman’s Statement

Dear shareholders and prospective investors

The 2019/20 Financial year marked the first year of implementation of the Fund’s second Five- year Strategic Plan for the period 2019-2024.

In terms of governance, one Member of the Board of Trustees retired during the period under review leaving the Fund with five of the six Trustees who were in place at the beginning of the period. Legally, the Deed of Trust provides for a seven member Board of Trustees. Despite the shortfall, the Fund continued to deliver on its mandate of facilitating the rollout of services to remote communities.

77.8% 78% Overall population Completion of the coverage of commercial Trans-Kalahari Highway radio broadcasting (TKH) network upgrade project 100% Completion of project: Provision of computer equipment and associated networking to a total of 77 schools across Mabutsane Sub-district, Kgalagadi District and Ghanzi District Leadership 7

MARTIN MOKGWARE Board Chairman

UASF ANNUAL REPORT 2020 Chairman’s Statement continued 8

The Schools Connectivity projects in the Ghanzi, Kgalagadi and Mabutsane areas continue to provide access to ICT services

The Fund facilitated the rollout of commercial radio broadcasting signal coverage by funding the installation of an FM transmitter at Sojwe village. The new transmitter extends commercial radio broadcasting signal to greenfield listenership of the people of Sojwe and the nearby villages of Lephepe, Boatlaname, Shadishadi, Leologane, Kokonje and Otse. In line with infrastructure sharing policy, commercial radio Mabutsane areas. The projects broadcasters shared the facility continue to provide access to ICT to broadcast to their respective services as envisaged, although target markets, reaching a total there were some challenges such population of 8,443 and improving as equipment malfunctions and overall population coverage of Internet outages occasioned commercial radio broadcasting by unstable power supply at from 77% to 77.8%. Refresher training some schools. These challenges was also provided continue to receive attention from to upskill the The Fund continued to forge 68 Information the relevant authorities. Technology (IT) strategic partnerships to assist in Officers employed under the Schools the rollout of communications During the reporting period, the Connectivity projects in the services to remote areas as well UASF carried out assessments of Ghanzi, Kgalagadi as in research and information and Mabutsane the existing public WiFi hotspots areas. exchange. To this end, the looking into Internet service Fund is in consultation with the availability, advertising/marketing leadership of the North West of the hotspots, points of sale and Southern District Councils, for WiFi vouchers, and public seeking collaboration to extend awareness of the WiFi hotspots. the Schools Computerisation and The exercise was meant to evaluate Internet Connectivity initiative to the performance of the service these regions. and to establish the contribution of the WiFi hospots to ICT uptake Refresher training was also and usage. 68 provided to upskill the 68 Information Information Technology (IT) Low utilisation of the WiFi hotspots Technology Officers employed under the continues to be of major concern (IT) Officers Schools Connectivity projects to the Fund. Restrictions on public received in the Ghanzi, Kgalagadi and movement following the outbreak refresher training. UASF ANNUAL REPORT 2020 Chairman’s Statement Leadership continued The Fund facilitated 9 the rollout of commercial radio broadcasting signal coverage by funding the installation of an FM transmitter at Sojwe village.

of the COVID-19 pandemic also the auspices of the International Due in part to such achievements, contributed to low usage recorded Telecommunication Union (ITU) the Fund has attracted interest towards the end of the reporting in pursuit of the World Summit on from international counterparts period. To address this matter, the the Information Society objectives and hosted delegations from Board has called for initiatives to of ensuring global access to ICT. the Universal Access and Service improve marketing of the WiFi Although not the ultimate winner, administrations of Malawi and hotspots and increase the public the project earned a top five spot South Sudan on benchmarking and consumer education on the in the WSIS Prize 2020 Champion visits with the goal of establishing availability of WiFi hotspots and under the Information and our own Universal Access and benefits of using this facility. Communication Infrastructure Service institutions, improving category, and received an official management and funding of On a positive note, the Trans- recognition during the prizes projects. Kalahari Highway (TKH) network award ceremony held in Geneva, upgrade project had reached Switzerland. Credit is due to the Trustees for 78% completion by end of the their commitment to guiding the financial year. The project aims to In addition, the Fund took part Fund and the Secretariat for its improve communications services in the 2020 WSIS Forum Photo dedication to the work of the Fund. along this major direct trade route Contest, a Photo Competition from Mozambique via South showcasing the use of ICTs in Africa, through Botswana, and learning for schools in remote terminating at Namibia’s port of areas. The Botswana UASF photo Walvis Bay. made it to the final round of the Photo Contest. On the international front, the Fund submitted its Schools These achievements are Computerisation and Internet testimony to the way in which the Connectivity Project to the 2020 Fund operates in accordance with WSIS Prizes competition. The WSIS national, regional and international MR. MARTIN MOKGWARE Prizes competition is held under standards and expectations. BOARD CHAIRMAN

UASF ANNUAL REPORT 2020 UASF BOARD OF 10 TRUSTEES

Appointment & Role • entering into Management Agreement with BOCRA or any third party in its discretion, for the The UASF is governed by an independent Board of management of the Fund and its investments Trustees appointed by the Board of the Botswana on behalf of the Trust; Communications Regulatory Authority (BOCRA) • dealing with the property and funds/monies of in consultation with the Minister responsible for the Fund for the purposes of the Trust and to that communications in terms of Clause 5.1 of the Notarial end entering into contracts and doing all such Deed. other acts as may be necessary or expedient from time to time; The Trustees are appointed on a two-year renewable • buying, selling, acquiring and disposing all kinds term, and its membership comprises a representative of property, movable or immovable on behalf of from the ministry responsible for communications; a the Trust; representative from the Board of BOCRA; the Chief • entering into any kind of transaction with any Executive of BOCRA; an independent expert from the person for the purpose of the Trust; and telecommunications and ICT sector without affiliation • if reasonably possible and subject to the to any operator; a representative of the postal sector Management Agreement, retaining all without affiliation to any operator; and a consumer instruments of title and other documents representative. relating to the Trust, and the Trust assets in the care or custody of the Manager. The Trustees’ main obligation is to ensure that the Trust carries out its mandate as set out in the Deed of Composition of Board Trust. To this end, Trustees are responsible for: of Trustees

• protecting the interests of the Trust to the best of The Board consists of six (6) Trustees representing their abilities and avoiding any conflict of interest; different sectors of the industry as shown in Table 1. • all assets of the Trust either directly or through a Dr Batlang Comma Serema’s tenure came to an end duly appointed Agent and/or Manager; during the year on 31 August 2019.

Table 1: Sector Representation of the Board of Trustees

TRUSTEE POSITION REPRESENTED SECTOR 1. Mr. Martin Mokgware Chairman BOCRA Chief Executive Ministry responsible for 2. Mr. Itumeleng Batsalelwang Vice Chairman Communications 3. Dr. Seamogano Mosanako Trustee Broadcasting 4. Mr. Kealeboga Pifelo Trustee Consumers 5. Ms. Caroline Setshedi Botlhole-Mmopi Trustee Postal 6. Dr. Batlang Comma Serema Trustee BOCRA Board

UASF ANNUAL REPORT 2020 Leadership 11

UASF BOARD OF TRUSTEES CAPACITY BUILDING AND TRAINING MEETINGS AND ALLOWANCES OF THE TRUSTEES

The Board, in line with fulfilling its oversight and The Trustees attend training and receive exposure governance role is expected to meet at least four (4) to different areas related to the Fund’s core times a year. During the year under review, the Board mandate in order to ensure that they keep abreast held seven (7) Board meetings and attended several of developments within the rapidly changing local trips to evaluate, review and discuss the business communications environment. of the Fund, mainly overseeing the projects. The Trustees attended a number of local and The Trustees are paid a communication allowance international events and training aimed at improving of P450.00 per month, while the sitting allowance is their knowledge and skills in the communications, P2,250.00 for the Chairman and P1,800.00 for the Vice universal access and service sectors. Locally, the Chairman and ordinary Members. Trustees attended to the Fund’s current projects to evaluate their successes and challenges. Trustees are also paid the equivalent of a sitting allowance per day for local travel related to the They also attended the commemoration of the World business of the Fund. Telecommunication on Information Society Day in Sefhare. Training in Corporate Governance was undertaken in South Africa. Trustees attended the GSMA Mobile 360 Series-Africa in Rwanda as well as the ITU Telecom World in Budapest, Hungary.

Table 2: Board of Trustee Meeting Attendance and Allowances

NUMBER OF MEETINGS COMMUNICATION SITTING BOARD MEMBER ATTENDED ALLOWANCES ALLOWANCES TOTAL Mr. Martin Mokgware 7/7 nil nil Mr. Itumeleng Batsalelwang 5/7 P5,400 P9,000 P14,400 Mr. Kealeboga Pifelo 7/7 P5,400 P12,600 P18,000 Dr. Seamogano Mosanako 5/7 P5,400 P9,000 P14,400 Ms. Caroline Setshedi Botlhole-Mmopi 5/7 P5,400 P9,000 P14,400 Dr. Batlang Comma Serema 1/3 P2,250 P1,800 P4,050 TOTAL P65,250

UASF ANNUAL REPORT 2020 UASF BOARD OF TRUSTEES continuedUASF BOARD OF 12 TRUSTEES

UASF ANNUAL REPORT 2020 UASF BOARD OF TRUSTEES Leadership continued 13

MR. MARTIN MOKGWARE to the provision of 32 public WiFi (BOARD CHAIRMAN) hotspots in public strategic areas around Botswana. He facilitated • Master’s Degree in Transport the award of the tenders for the Economics, University of upgrade of telecommunications Leeds, United Kingdom base stations from 2G to 3G/4G technology and for the for Schools • Bachelor’s Degree in Connectivity Project. Economics, University of Botswana, Botswana An economist by profession, • Post Graduate Diploma Mokgware spent most of his career in Telecommunications in BOCRA dealing with licensing Regulation, University of telecommunication players of Westminster, United and tariff regulation. He was Kingdom part of the team that developed the Draft National Broadband Strategy for Botswana as well Mr. Martin Mokgware is the as Interconnection Guidelines Chief Executive of Botswana that facilitate negotiations Communications Regulatory for interconnection between Authority (BOCRA) and the telecommunication networks. Chairman of the USAF Board of Trustees. He was involved in the development of cost modelling Prior to his appointment as and pricing frameworks for the Chief Executive, Mr Mokgware Botswana telecommunications was the Director responsible market leading to directives for Broadband and Universal on reduction of wholesale and Services. As the Director, he was retail tariffs, and the Passive instrumental in the formulation Infrastructure Sharing Guidelines and implementation of the all of which are geared towards 2015 – 2018 Universal Access and facilitating accessibility to Service Fund Strategy leading communications services.

UASF ANNUAL REPORT 2020 UASF BOARD OF TRUSTEES PROFILES 14

MR. ITUMELENG DR. SEAMOGANO MOSANAKO MR. KEALEBOGA PIFELO BATSALELWANG PhD (Journalism), University of • Master of Science in (BOARD VICE-CHAIRMAN) Queensland, Brisbane, Australia Economics, University of • MA (Journalism) Natal, South Africa • Master of Arts Degree in (International), University of • Postgraduate Certificate Communication Policy, Westminster, (London) in Regulation of University of Westminster, • Bachelor of Social Work, Telecommunications, (UK) University of Botswana University of Westminster • Postgraduate Certificate (UK) in Regulation of Currently the Head of • Bachelor of Arts in Telecommunications, Communications and Information Economics, University of University of Westminster Services at Bank of Botswana, Botswana • Bachelor’s Degree (Hons) Dr. Mosanako has extensive Media Systems, University of knowledge of the broadcasting Mr. Pifelo is the Business Sunderland, (UK) and communications industry in Development Director at Botswana Botswana. She is a former Media University of Agriculture and Mr. Batsalelwang is a retired Studies lecturer at the University Natural Sciences (BUAN). He former employee of the Ministry has over 22 years’ experience in of Communications, Science & of Botswana. business development, analysis, Technology. He joined the Ministry planning, operation, partnership in 2004 and served in various Her areas of expertise include and team leadership. capacities rising to the position of media training, stakeholder Director for Telecommunications management, development He worked as an economist and Postal Services in the Ministry of communication strategies, at the Ministry of Finance & of Transport and Communications, and media relations, among Development Planning before a position he held from 2016 to 2019. others. Seamogano is one of the pioneers of Botswana Television moving to managerial positions at British Petroleum, the then He is the current Board Vice- and also helped develop its Botswana Telecommunications Chairman, having been editorial guidelines during the Authority, Standard Chartered appointed to the UASF Board as station’s formative years. She was Bank, and Botswana Development a representative of the Ministry appointed to the UASF Board as Corporation where he was Head of responsible for communications in the independent broadcasting Business Development. 2018. sector expert.

He was appointed to the Some of his major achievements UASF Board as a consumer include driving the National representative. Broadband Strategy approval process; National Cyber Security Strategy development; and amalgamation of Botswana Post and Botswana Couriers and Logistics into the now Botswana Postal Services Limited.

UASF ANNUAL REPORT 2020 UASF BOARD OF TRUSTEES Leadership PROFILES 15

MS. SETSHEDI BOTLHOLE- DR. BATLANG COMMA SEREMA MMOPI • PhD (Library and Information well as a host of unpublished • Fellow Member, Association Studies), from University conference and seminar papers. of Chartered Certified College London, (UK) As a lecturer, he supervised several Accountants (FCCA), (UK) • MSc. (Information Analysis), PhD, Mphil/Masters and Bachelors • Fellow Certified Professional from Robert Gordon research projects and dissertations. Accountant (FCPA, BICA) University, Scotland, (UK) • BCom (Accounting) with • BA (History and Dr. Serema is a member of majors in Accounting, Environmental Science) from Chartered Institute of Librarians Auditing & Financial University of Botswana and Information Professionals Management, University of (CILIP); and Botswana Library Botswana. Dr. Serema is a Senior Lecturer in Association (BLA) President. He • Executive Development, Library and Information Studies serves as Board Member for Stellenbosch University, at the University of Botswana Botswana National Productivity South Africa where he teaches Business Centre. Dr. Serema is the Director Information Systems; African of Information Academy; a Ms. Botlhole-Mmopi is a seasoned Information Resources; Information management training and self-employed accountant Environment; Information consulting firm that takes a with career of over 30 years in Resources in Business; Digital human-centred approach to accounting, financial management, Libraries; Infopreneurship and helping organisations in the reporting and business operations. Collection Development and public and private sectors to She has worked in different Management. work smarter and to grow faster. sectors, including Oil Marketing, He has previously served as Vice Banking and Mining, as well as He was appointed to the UASF President of the Botswana Football Telecommunications and the Board of Trustees as a representative Association; and as a Member of Postal Sector. She has headed of the BOCRA Board. the Botswana National Archives Finance, Operations and Mail and Records Services. Business at Botswana Post, and He did research on Information has acted in the Chief Executive Services and resources for MPs Officer role. She has extensive and another one on Information experience in leadership gained Infrastructure for Public Policy through various roles in her career, Making in Botswana. He authored as well as Board memberships of a book titled ‘Renewed Hope: A several organisations, among them Practical Practice of Public Policy Botswana Telecommunications Making in Botswana.’ He has Corporation. She currently serves also written book chapters, book as Board Member and Audit reviews and commentaries. Committee Chairman on two other Boards. In addition, he has to his name several refereed and scholarly/ She joined the UASF Board as an scientific publications and refereed independent representative of the published conference papers as Postal sector.

UASF ANNUAL REPORT 2020 UASF ACTUAL 16 PERFORMANCE

The year 2019/20 marked the first year of the UASF 2019-2024 Strategic Plan.

The Strategy is underpinned by four key success factors and nine strategic objectives. The strategic objectives are tracked through key performance indicators to determine progress. An illustration of the Fund’s Strategy is provided in Figure 1.

STRATEGIC OBJECTIVES KPIs CUSTOMER PERSPECTIVE • To improve access to • # of Government schools connected and use of broadband to broadband Internet services • # of institutions provided with ICT • To improve access to devices postal services • # of villages provided with • To improve access to Broadband network broadcasting services • # of disadvantaged groups provided To promote accessibility, affordability and usage Equality • Financial prudence • Accountability

• To promote local with broadband connectivity • Transparency • Innovation Excellence and content development • # of key economic areas connected

• To promote public to broadband Internet of communication for services all.

awareness of the • # of institutions provided with ICT A digitally connected nation. UASF training • # of IT officers deployed • # of villages with access to postal MISSION VALUES services VISION • # of villages covered with commercial radio signal • # of local content initiatives • # of campaigns FINANCIAL PERSPECTIVE KEY SUCCESS FACTORS: SUCCESS KEY • Prudent use of • % budget variance financial resources INTERNAL PROCESSES PERSPECTIVE • To build strategic • # of strategic partnerships partnerships • % projects completed within time • To improve project and budget management LEARNING & GROWTH PERSPECTIVE Talent Management Sustainability Strategic Partnerships Universal Access Universal Partnerships Strategic Management Sustainability Talent • Create and promote • % staff exceeding performance a high-performance threshold culture • % staff below performance threshold • # of trainings conducted

Figure 1: UASF One Page Strategy

UASF ANNUAL REPORT 2020 Performance 17

UASF’s performance against its strategic objectives was acceptable. Half (50%) of the Key Performance Indicators (KPIs) were successfully attained, and 8% were partially fulfilled. The UASF Strategy is mainly project based, and the first year of the Strategy saw a change in the project execution approach with implementation set for the third year. Figure 2 shows the overall performance of the UASF against the 12 KPIs it had for the year.

Partially Achieved achieved 42% 50%

Not 8% achieved

Figure 2: Performance against strategic objectives

Overall Performance Analysis The Fund continued to forge strategic partnerships to assist in the rollout of services as well as in areas of research and information Commercial radio broadcast stations were exchange. Training was also provided as part of deployed in Sojwe and the surrounding their upskilling of the 68 Information Technology villages of Lephephe, Shadishadi, Loologane, officers deployed to the UASF flagship project Boataname Kokonje and Otse in the Kweneng of Schools Connectivity in the Ghanzi, Kgalagadi district. This deployment improved commercial and Mabutsane areas. radio broadcasting coverage from 77% to 77.8% translating to an estimate 8,443 individuals, in the Projects that did not fare well during the year said villages, able to access service. include provision of ICT devices and ICT training. This was due to a change in the project approach: The findings from the ongoing FM Coverage to have a Communications Needs Assessment Assessments in the Kweneng region at the end carried out initially to identify communications of the review period are expected to inform the gaps in the Kweneng and North West regions; need for future deployments in the region. followed by the rollout of broadband services prior to the provision of ICT services. Plans were Efforts to improve public awareness of the UASF underway to roll out broadband services in these have been intensified. The Secretariat undertook regions and this is expected to be completed a number of campaigns covering national shows during the 2021/2022 financial year. such as the annual Ghanzi Agricultural Show and HATAB show to inform the public about the A detailed analysis of the Fund’s performance is mandate of the UASF and its projects. shown in subsequent sections of this Report.

UASF ANNUAL REPORT 2020 UASF ACTUAL PERFORMANCE

18 continued

centres for disadvantaged groups. Also considered Communication Needs in this assessment, was the status of electrical power Assessments – Kweneng Region in the area. An assessment of commercial radio broadcasting in the area was carried out as well. During the review period, the Fund embarked on a Communications Needs Assessment for the The needs assessment helped to identify Kweneng region. The assessment covered villages, communications gaps and the setting up of initiatives Government schools, Dikgotla and disadvantaged to improve access to communications services. groups. KEY FINDINGS The assessment focused on the availability of communications services including The region has a total of 62 villages, 117 Government telecommunications network coverage, postal schools. 59 of the villages and 112 schools were services, and ICT devices and Internet in government assessed using primary data while the remainder schools, national farms, tribal administration offices, were assessed using secondary data.

Electricity Mobile ICT devices Internet Postal Network Services Coverage Villages (59) 45 48 10 Schools (98) - - 98 26 - Tribal Administration Offices (56) - 40 15 4 - Disadvantaged groups (5) - - 3 - -

POWER SUPPLY: POSTAL SERVICES: ICT IN SCHOOLS: ICT IN SCHOOLS: 45 10 72 50 of the 59 villages of the 59 of the 86 primary of the 86 primary had access to the villages schools assessed schools assessed BPC grid. assessed had had functional had slow Internet Post Offices. ICT devices. connection.

ALL 26 secondary schools had ICT devices and were connected to the Internet

UASF ANNUAL REPORT 2020 Performance 19

KEY FINDINGS (CONTINUED)

MOBILE NETWORK COVERAGE: TRIBAL ADMINISTRATION OFFICES: 48 of the 59 villages had mobile network 40 of the 56 dikgotla assessed were within (mostly 2G) coverage. Kweneng West mobile network coverage; 15 offices had had less network coverage compared to computers of which four had Internet Kweneng East. connection, albeit with slow speed.

DISADVANTAGED GROUPS: COMMERCIAL RADIO COVERAGE: five centres for the disadvantaged groups commercial radio broadcast signal coverage were identified and assessed, of which was found to be limited to areas that benefit two were found to be in most need of ICT from frequencies allocated to stations in devices. Gaborone.

Based on the assessment, the following initiatives • Provision of broadband networks to a total of 47 were adopted for implementation in the Kweneng villages with a population of under 5,000 each; region in line with the Strategic Plan: • Assistance to two centres for disadvantaged groups – the Anne-Stine Centre for Handicapped • Provision of broadband Internet to all 117 Children and Cheshire Foundation – with Government schools (in the region) for a period specialised software computers; of three years; • Expansion of network coverage to Malwelwe • Engagement and deployment of IT officers in all cluster farms; and primary schools to teach both the students and • Installation of FM transmitters at clusters of teachers for a period of three years; Takatokwane, Malwelwe and Salajwe villages to reach a total population of approximately 18,652.

UASF ANNUAL REPORT 2020 UASF ACTUAL PERFORMANCE

20 continued

Communications Needs (Moeng College) school. An additional Assessments - Tswapong assessment was conducted at Lotsane Region Senior Secondary School.

Following commemoration of the World 39 of the 53 schools – 27 Primary, 11 Junior Telecommunication and Information Secondary and the one Senior – indicated Society Day (WTISD) in Tswapong region that they had Internet connectivity. on 17 May 2019, the Fund conducted a However, only 35 schools had computers communication needs assessment in for students. Four schools had Internet the area to determine the availability donated by one of the service providers of communication infrastructure and but had no computers. services. The Internet was mainly used by staff in The assessment was aimed at identifying the staff room and was reported to be communications gaps in order to guide very slow. Table 4 shows distribution of allocation of the resources pledged computers in schools. during the commemoration to the relevant areas. Of the 15 schools that had tablets, seven Primary and four Junior Secondary The assessment involved 37 villages with schools had 2 Mbps Internet connectivity nine Post Offices, 36 Tribal Administration provided through the Economic Stimulus offices, 32 Health Centres, nine Kitsong Package project. Centres, five Libraries and 53 public schools. Other tablets were received from various 39 KEY FINDINGS: donors. of the Status of ICT and Internet Connectivity in schools Public Schools All Primary Schools in possession of educational tablets had not commenced assessed using them, citing lack of dedicated had Internet The assessments covered a total of 53 connectivity. schools, comprising 42 Primary, 11 Junior personnel with ICT knowledge to facilitate Secondary and one Senior Secondary their use.

UASF ANNUAL REPORT 2020 Performance 21

Table 4: Distribution of ICT Devices

NO. OF SCHOOLS NO. OF SCHOOLS SCHOOL TYPE WITH COMPUTERS WITH TABLETS Primary 23 9

Junior 11 6 Senior 1 0 Total 35 15

Table 5: Network Distribution per Operator OPERATOR BTC ORANGE MASCOM Network Status # of Villages (out of 37) # of Villages (out of 37) # of Villages (out of 37) No Network Coverage** 3 3 0 2G 34 34 37 3G 8 9 12 4G 3 4 5

MOBILE NETWORK COVERAGE ACCESS TO PRIVATE BROADCASTING SERVICES

The assessment showed that Mascom had 100% The study further sought to find out the availability network presence in all 37 villages compared with of private broadcasting services in Tswapong area. Of BTC’s and Orange’s 91.9%. The villages with no the 37 villages surveyed, Duma FM had the highest Orange network presence were Mathako, Moremi presence with eight villages (21.6%) receiving its and Tamasane, while BTC was not present in Maape, broadcasting signal. Gabz FM had a presence in Shakwe and Majwaneng. 2G was the predominant five villages (13.5%), Yarona FM in four (10.8%) while mobile communications network technology eBotswana was not available in any of the villages. provided by the three operators. SUMMARY Table 5 shows the network distribution across the Tswapong region. Only 15 out of 37 villages had 3G The region had basic mobile network coverage broadband network coverage, while seven also had and more than 50% of the schools assessed had 4G mobile network coverage. ICT devices and equipment. However, broadband network coverage was limited and the available ICT Broadband network coverage is essential for the devices were underutilised in primary schools due to country to transition to a digital economy. lack of ICT personnel.

ACCESS TO POSTAL SERVICES The region was generally found to have access to basic communications infrastructure. The two senior The assessment also sought to determine the schools were found to be inadequately resourced availability and access to postal services by people in with ICT devices and the Fund resolved to provide Tswapong Region. Nine of the 37 villages assessed Moeng College and Lotsane Senior Secondary School had a Post Office. with ICT equipment including 80 computers, access points, and switches for each school in order to give ICT access to close to 2,000 students in both schools.

UASF ANNUAL REPORT 2020 MONITORING AND 22 EVALUATION OF EXISTING PROJECTS

Public WiFi Hotspots obtain services at reduced prices to be able to trickle down the benefit to the public. The public WiFi hotspots, branded Botswana Hotspots, were launched in 2015 through a partnership between A total of 32 WiFi hotspots sites have been deployed the UASF and Botswana Fibre Networks (BoFiNet). As at strategic areas such as shopping malls, hospitals, part of this initiative, BoFiNet deployed infrastructure bus stations and airports across the seven locations. at a wholesale level across seven locations - Gaborone, Mahalapye, Palapye, Serowe, Francistown, Maun and Figure 6 sets out the locations of the WiFi hotspots. Kasane, enabling retail Internet service providers to For the period April 2019 to March 2020, end-users

KASANE: MAUN: Kasane Bus Rank Letsholathebe Hospital Kasane Hospital Maun Airpot Kazungula Border Post Old Mall New Mall

FRANCISTOWN: Nzano Mall Galo Mall SEROWE: Nyangabgwe Referral Hospital Sekgoma Memorial Francistown Airport Hospital Bus Rank Boiteko Junction Mall Nswazwi Mall Serowe Main Mall

PALAPYE: Engen Mall Palapye Primary Hospital MAHALAPYE: Watershed Mall Mahalapye Hospital

GABORONE: Rail Park Mall Kagiso Mall (BBS Mall) Riverwalk Mall Game City Mall SSKI Airport Main Mall Molapo Crossing Mall Bus Rank Princess Marina Government Enclave West Gate Mall Hospital Airport Juction Mall

Figure 6: WiFi Hotspots Locations

UASF ANNUAL REPORT 2020 Performance 23

accessed WiFi hotspots services from retailers and sale for WiFi vouchers and public awareness of the entities that included Botswana Telecommunications WiFi hotspots. The exercise was meant to review the Corporation Limited (BTCL), Poso Cloud, Cene Media, performance of the service at different locations. Conduitwire, Technotrends, Metrotech and Botswana Investment and Trade Centre (BITC). Overall, utilisation of the WiFi hotspots was low mainly because most service providers were not taking Figure 7 shows the utilisation of Botswana WiFi advantage of the infrastructure deployed around Hotspots over the 12-months from April 2019 – the country, poor marketing of the WiFi product and March 2020 as recorded by BoFiNet. The number lack of awareness by consumers of availability of the of connections fluctuated over the period with the hotspots in the strategic areas. Furthermore, there lowest point registered in October 2019. BoFiNet was a sharp decline in WiFi utilisation in March 2020 attributed the huge decline to system challenges. due to movement restrictions introduced to curb the spread of COVID-19. UASF carried out an assessment of the public WiFi hotspots, looking at Internet service availability, advertising/marketing of the hotspots, points of

400,000

355,952 347,387 338,179 320,709

300,000 271,952

226,687 231,430 215,382 201,463 206,407 200,000 187,013

149,742

100,000

- Apr-19Apr-23 May-19May-23 Jun-19Jun-23 Jul-19Jul-23 Aug-19Aug-23 Sep-19Sept-23 Oct-19Oct-23 Nov-19Nov-23 DeDec-19c-23 Jan-20Jan-24F Feb-20eb-24M Mar-20ar-24

Figure 7: WiFi Connections April 2019 - March 2020

Deployment of 3G and 4G network broadband networks to a population of more than coverage 69,000 rural inhabitants across the three regions.

As at end-March 2020, the deployment of 3G and 4G The network sites achieved satisfactory performance networks in 68 villages identified across the Mabutsane over the year, with an average of 87% (59 of 68 sites) sub-district, Kgalagadi district and Ghanzi district was conforming to minimum performance indicators, 100% complete. The project facilitated expansion of while the remaining 13% (9 of 68 sites) recorded

UASF ANNUAL REPORT 2020 MONITORING AND EVALUATION

24 OF EXISTING PROJECTS continued

persistent network outages. The sites with network Schools Computerisation and outages included Morwamosu and Kokong villages in Internet Connectivity the Mabutsane Sub-district; Ukwhi, Ngwatle, Zutshwa and Ncaang villages in the Kgalagadi District; and Provision of computer equipment and associated Bere, Metsimantsho and Kaalkfontein villages in the Ghanzi District. Mobile Network Operators continued networking to a total of 77 schools across Mabutsane to address the network performance issues, which Sub-district, Kgalagadi District and Ghanzi District they attributed mainly to power outages across the was 100% complete by end of the reporting period. regions.

Table 6: Villages benefiting from 3G /4G network deployment

MABUTSANE SUB- GHANZI DISTRICT (19 DISTRICT (17 VILLAGES) KGALAGADI DISTRICT (32 VILLAGES) VILLAGES) Sekoma Khuis Hunhukwe Bere

Itholoke Kisa Inalegolo Charleshill

Kanaku Kokotsha Phuduhudu Chobokwane

Keng Kolonkwaneng Tshane D’Kar

Khakhea Makopong Ukhwi East Hanahai

Khonkhwa Maleshe Lehututu Grootlaagte

Kokong Maralaleng Zutshwa Kacgae

Kutuku Bokspits Lokgwabe Kalkfontein

Mabutsane Gakhibane Draihoek Karakubis

Morwamosu Bray(Hereford) Ncaang Kole

Betesankwe Khawa Maake Kuke

Mahotshwane Omaweneno Ngwatle Makunda

Samane Rappelspan Monong Metsimantsho

Seherelela Struizendam Ncojane

Lefoko Vaalhoek New Xanagas

Mokhomma Werda Qabo

Sese McCathy’s Rust West Hanahai

Middlepits Xanagas

Bogogobo Xade

UASF ANNUAL REPORT 2020 Performance 25

The project covers 68 Primary Schools contractor had begun addressing the 100% and nine Junior Secondary Schools shortfall by end of the financial year, with PROJECT within the villages listed in Table 8. completion expected in the first quarter COMPLETION: While broadband Internet connectivity of 2020/21. Provision of computer had been completed for all schools, equipment dedicating 5Mbps bandwidth capacity Challenges that affected the project, and associated as per the project requirements had included malfunctioning of some of the networking to a not been achieved for 22 schools in the computers and networking equipment, total of 77 schools Ghanzi region. were addressed by contracted IT across Mabutsane companies. Intermitent power supply Sub-district, Kgalagadi District This translated to 32% of the schools resulted in Internet outages at some and Ghanzi District. accessing shared rather than dedicated schools. Government continues to Internet bandwidth as at March 2020. The address the problem.

UASF ANNUAL REPORT 2020 MONITORING AND EVALUATION

26 OF EXISTING PROJECTS continued

The Schools Connectivity projects in the Ghanzi, Kgalagadi and Mabutsane areas continue to provide access to ICT services

Trans Kalahari Highway (TKH) Network Enhancement

The closure of telecommunications network gaps along the Trans- Kalahari Highway (TKH) stood at 78% completion by end of the financial year, with seven of nine basestations upgraded and providing service to consumers, and significantly reducing the communications gaps. TKH is a transport and tourist corridor that provides a direct trade route from Maputo in Mozambique via Pretoria through Botswana to central Namibia through Windhoek and terminates at the port of Walvis Bay. The highway remains one of the key economic routes and therefore communications coverage along the route is critical.

UASF ANNUAL REPORT 2020 INTERNATIONAL Performance PARTICIPATION 27

World Summit on the Information TRAINING OF IT OFFICERS Society (WSIS) Prizes Competition IT Officers placed at Primary schools in Mabutsane, UASF PROJECT FOR WSIS COMPETITION Kgalagadi and Ghanzi Districts were taken through a one-week training in an effort to upskill them. UASF submitted the Schools Computerisation and Internet Connectivity Project to the 2020 WSIS The training was conducted in partnership with the Prizes competition. In January 2020, voting for the Ministry of Basic Education and covered Network 352 nominated ICT projects from around the world Management, Windows Server Management, saw the UASF’s entry selected as a WSIS Prize 2020 Operating Systems, Applications, Operational Policies Champion under Category 2 - Information and and ICT Integration for Teaching and Learning. The Communication Infrastructure. The award was training content was selected in consultation with the presented during the 2020 WSIS Forum held in IT Officers for development of necessary technical skills. September in Geneva, Switzerland. UASF As Model Fund In The Region UASF PROJECT FOR WSIS PHOTO CONTEST

The UASF also submitted a photo for the 2020 WSIS The Fund hosted delegations from Malawi Forum Photo Contest, showcasing the use of ICT Communication Regulatory Authority (MACRA) in learning for schools in remote areas. The photo and South Sudan who wanted to get insights on was shot by Ms. Bokamoso Kedidimetse, IT Officer the operations and management of the UASF. The at Kacgae Primary School (Kacgae Village) in the teams from both countries were taken for a site visit Ghanzi District. It featured learners using ICT during to introduce them to the UASF schools’ connectivity Agriculture lessons. project.

Figure 4: Botswana’s winning photograph – a finalist for 2020 WSIS Forum Photo Contest (Kacgae Village, Botswana)

UASF ANNUAL REPORT 2020 UASF ANNUAL REPORT 2020 ANNUAL FINANCIAL STATEMENTS For the Year Ended 31 March 2020

General Information 30 Trustees Report 3 1 Statement of Responsibilities by the Board of Trustees 32 Independent Auditor’s Report 33 Statement of Financial Position 36 Statement of Comprehensive Income 37 Statement of Cash Flows 38 Statement of Changes In Equity 39 Accounting Policies 40 Notes to the Annual Financial Statements 49

The following supplementary information does not form part of the Annual Financial Statements and is unaudited:

Detailed Income Statement 61

UASF ANNUAL REPORT 2020 Ms. Joyce Isa-Molwane Ms. Joyce Pula the nearest to Pula (‘P’) and is rounded Botswana Private Bag 0049, Private Gaborone, Botswana. Limited Stanbic Bank of Botswana Limited Bank of Botswana Chartered Standard PricewaterhouseCoopers Mr. Martin Mokgware (Chairperson) MartinMr. Mokgware Itumeleng Batsalelwang Mr. Pifelo Kealeboga Mr. Mosanako Seamogano Dr. S. Botlhole-MmopiMs. Caroline 2019) 31st August (retired Batlang Serema Dr. 2020) 1st April Bojosi (appointed Ms. Tsholofelo 50671, Lot Avenue, Independence 5, Extension Gaborone, Botswana. Botswana is a Trust and Service Fund Access The Universal MA317/2014. No. Deed of Trust established under Notarial to service financial subsidies and incentives offers The Trust infrastructure communications expand to and providers also provides The Trust services areas. in underserved related and production content in local financial assistance among citizens. development capacity Functional Currency Auditors Secretary Postal address Postal Bankers Registered office Registered Members of theMembers Board Country of incorporation and of incorporation Country domicile of business andNature activitiesprincipal General Information General 2020 REPORT ANNUAL UASF

30 31 2020 REPORT ANNUAL UASF

Mr. Martin Mokgware (Chairperson) MartinMr. Mokgware Itumeleng Batsalelwang Mr. Pifelo Kealeboga Mr. Mosanako Seamogano Dr. S. Botlhole-MmopiMs. Caroline 2019) 31st August (retired Batlang Serema Dr. 2020) 1st April Bojosi (appointed Ms. Tsholofelo Isa-Molwane Ms. Joyce The Trustees during the year and to the date of this report are as follows: as follows: of this report are the date and to the year during The Trustees 5. Secretary 4. Trustees None of the Trustees or Officers of the Trust had any interest in any contract during the financial during contract in any interest Trust had any of the or Officers None of the Trustees year. 3. Trustees interest in contracts interest 3. Trustees The accounting policies of the Trust are consistent except for the adoption of new standards or standards the adoption of new for except consistent are policies of the Trust The accounting Reporting Financial Standards. or amendments in the International interpretations 2. Accounting policies 2. Accounting Net Surplus of the Trust for the year was P 53,130,613 (Net deficit 2019: P 7,417,065) P 2019: (Net deficit P 53,130,613 was the year for of the Trust Net Surplus The operating results and state of affairs of the Trust are fully set out in the attached annual fully set out in the attached are of the Trust of affairs and state results The operating furthercomment. any require and do not in our opinion financial statements The Universal Access and Service Fund is a Trust established under Notarial Deed of Trust No. No. Trust Deed of established under Notarial is a Trust and Service Fund Access The Universal expand to to service providers financial subsidies and incentives offers The Trust MA317/2014. financial infrastructurecommunications provides also The Trust and services areas. in underserved among citizens. development capacity and related production content in local assistance 1. Review of activities 1. Review The Trustees have pleasure in submitting their report for the Trust for the year ended 31 the year for the Trust their reportfor submitting in pleasure have The Trustees 2020. March Trustees Report Trustees Trustee Chairperson Gaborone The Trustees of the Universal Access and Service Fund Trust are responsible for the content and the content for responsible are Trust and Service Fund Access of the Universal The Trustees therewith. presented financial information related and of the financial annual statements integrity a true and show which that the annual financial statements ensure to It is their responsibility of results and the year as at the end of the financial of the Trust of affairs of the state view fair Financial with International conformity then ended, in year for the and cash flows its operations Reporting Standards. an independent opinion on the financial statements. express engaged to are auditors The external Financial Reporting with International in accordance prepared are The annual financial statements and applied supported policies consistently accounting upon appropriate based and are Standards and prudent judgments and estimates. reasonable by financial of internal the system for responsible ultimately are that they acknowledge The Trustees importance on maintaining a strong considerable and place the Trust established by control sets the board meet these responsibilities, to enable the Trustees To environment. control manner. or loss in a cost-effective of error the risk aimed at reducing control internal for standards defined within a clearly delegation of responsibilities the proper include Theframework, standards level an acceptable ensure of duties to segregation and adequate procedures accounting effective maintain the highest ethical to required are and all employees monitored are of risk. These controls in a manner that in all reasonable conducted are operations the Trust’s in ensuring standards reproach. is above circumstances is on identifying, assessing, management managing in the and Trust monitoring of risk The focus the Trust cannot be fully eliminated, risk operating While the Trust. across of risk forms all known infrastructure, and ethical systems that appropriate ensuring controls, minimise it by to endeavors and constraints. procedures applied and managed within predetermined are behavior management by given and explanations the on of the information opinion, based are The Trustees records that the financial assurance reasonable provides control of internal that the system of system any However, of the annual financial statements. the preparation on for be relied may against material assurance and not absolute, reasonable, only can provide control financial internal or loss. misstatement and,2021 in the to 31 March year for the forecast cash flow the Trust’s reviewed have The Trustees to access Trust has satisfied that the are financial position, they and the current light of this review future. the foreseeable for existence in operational continue to resources adequate to 60 and the supplementary information pages 36 set out on The annual financial statements the by approved were basis, on the going concern been prepared have 61, which on page disclosed signed on its behalf by: and were 2020 on 18 December Trustees Statement of Responsibilities by the by of Responsibilities Statement of Trustees Board 2020 REPORT ANNUAL UASF

32 33 2020 REPORT ANNUAL UASF The other The ial performance and ial performance issued by the “Universal Access and Access “Universal Standards Reporting Financial nal Auditor’s responsibilities for the for Auditor’s responsibilities International Code of Ethics for Professional for Ethics of Code International and fair view fair view of and the position of financial Universal 31 March 2020, and of and its financ 2020, March s at 31 with Internatio cordance section of our report. , I D Molebatsi, S K K Wijesena Plot 50371, Fairground Office Botswana Park, Gaborone, P O Box 294, Gaborone, L Mahesan , the statement of financial position as at 31 March 2020; income for the yearthe statement of comprehensive then ended; for the year thenthe statement of changes in equity ended; the statement of cash flows for the year then ended; and which includethe notes to the financial statements, of significant accounting policies. a summary ● ● ● ● ● (“IFRS”). audited What we have Universal Access and Service Fund Trust’s financial statements set pages out on 30 comprise: 6 to 6 PricewaterhouseCoopers T: (267) 370 9700, www.pwc.com/bw Country Senior Partner: B D Phirie Partners: R Binedell, A S Edirisinghe, its cash flows for the yearthen ended in ac statements financial the audit of Ethics Standards Board for AccountantsInternational and other independence requirements applicable to performing audits of financial statements fulfilled our other have We in Botswana. ethical responsibilities in accordance with the IESBA applicable Code and other ethical requirements to performing audits of financial statements in Botswana. are responsible for the other information. Trustees The other information obtained at the date of The report comprises the information includedthis auditor’s in the document titled for Statements Annual Financial Fund Trust Service 2020”. 31 March ended year the information does not include the financial statements report thereon. our auditor’s and Our opinion on the financial statements does not cover not express the other information and we do an audit opinion or any form of assurance conclusion thereon. We believe that the audit evidence we have obtained we have audit evidence that the believe We a basisto provide is sufficient and appropriate for our opinion. Independence in accordance with are independent of the Trust We the Other information cess and Service cessAc Trust Fund and Service (the a “Trust”) Basis for opinion conducted our audit in accordance with InternationalWe Our Standards on Auditing (ISAs). responsibilities under those standards are further described in the Independence International (including Accountants Code) (IESBA Standards) To the Members of Universal Access and Service Fund Access and Service the Members of Universal To Trust Our opinion the statements our opinion, financial give In a true Independent auditor’s report Independent auditor’s , or ide r to t r ially in en on ol as er er ee date ting t with due to epor ater ation, audit antee s tak e fr m to cease s r ’ s ability the ov of not to the essing an ue and fair ent when it idually or nal contr audit aintain or ust’ isk ior infor ust or r whether n and using the ents as a whole r s to be m s of user e a tr esulting from he r indiv and obtain ead the other ents that ar ents, T s, isstatem isk to design such inter ial if, one r pose of expr ent and m but is not a guar ial m esentations, cial statem der ic decision ater uidate the T wise appear opinion. ents that giv epr ance, ater easonableness of accoun ent of this other assessing the T the pur isr than for ed m our and to issue an auditor ds and for other , al judgem e to those r m d to liq statements the finan or sisten ation is materially incon or this regard. r elated to going concer sion m esponsibility is to r isstatem r ation that we obtained p s r el of assur t in r inten is higher m Standar . issions, ofes of the financial statem but not for er statements e consider esponsiv a basis for to the audit in or our infor ial m r or ation of financial statem atter pr for epor used and the r esponsible for r om aud control. aud or er ting m eith in the audit, fluence the econom ces, ide er e r ant always detect a m fr fr ater ustees. to r in epar cise in r ents, the financial statem ov other and ar ar a high lev nal about whether epor pr stan elev do so. a m or e also: r ustees the ocedures aud or r isstatement ol r due to W cum e is er ance s inter SAs will ustees ance is we exer r ation of intentional e nothing iate to pr y, e but to ust’ ial m r ade by the T as applicable, esulting from SAs, opr epar aud or audit pr ed on the other whether ger the T due to fr e hav ater nal contr less the T whether m fr m nativ nt r es m the T for y to enable the W for for om ents, nowledge obtained dance with I the pr iate in the cir s of m national Financial R consider easonable assur whether opr e per disclosing, ise fr isk easonable assur g of inter dance with I oughout the audit. our k n, easonably be expected to isstateme eness of R nter iateness of accounting policies din isstatement, t that fact. ealistic alter e collusion, thr we conclude that ther tem audit of the financial sta e appr e is necessar ion. t, opr ial m we hav olv stan ol. in k ents or epor ial m elated disclosur design and per esponsible for e no r m , ater ents can ar epor e to obtain r in doing so, isstatement, e r ater or ter s r r ay inv ’ they could r hav under ed to r es that ar dance with I m n basis of accounting un es ar g the financial statem ial m or nal contr ce that is sufficient and appr uir om in ates and r aud m egate, eq ater ation and, ustees ar aluate the appr t of an audit in accor Misstatem iden ocedur ustees de r aud or er ee fr r epar m m dentify and assess the r ations, objectiv of inter as fr Obtain an fr I Ev ev detecting a m pr estim opinion on the effectiv based on the wor ofessional scepticism e fr for isstated. om he T iew in accor n connection with our n pr f, hat an audit conducted in accor the aggr the basis of these financial statements. As par that includes our opin I ● ● exists. v the financial Auditor’s responsibilities for the audit of Our ar T Responsibilities of the trustees for the financial Other information (Continued) I in t fr oper we are r of this auditor ● pr the financial statem the T going concer m I continue as a going concer 2020 REPORT ANNUAL UASF

34 35 f s ne ’ I the g of n. ro that uate, in 2020 REPORT ANNUAL UASF o ol b er 2020 ents or auditor b Ga e inadeq including al contr cem es ar ents, ansactions and elated to ev 8 De 1 ust to cease to r d, n basis of accounting an lying tr te of ce obtained up to the da aw attention in our der iden the planned scope and tim tainty exists r s, if such disclosur statements (Continued) , ay cause the T ed to dr m atter uncer uir of the financial statem m going concer s ability to continue as a eq ial esent the un e of the going concer the audit ev h e r ust’ epr r ater ar other r ng T use i g statements or s conditions we any significant deficiencies in intern on ri ents am e and content ustees’ e based on r g, ents or n Edi esentation. s ar whether a m din uctur pr e ev eya including cial statem tainty exists, str egar Sh es fair futur , es in the financial er: 0048 er b conclusion n. ustees r ial uncer iateness of the T the finan r esentation, Our opr idence obtained, ater Mem Howev that achiev t. audit. er: 2003 ng on the ay cast significant doubt all pr b ci er epor m elated disclosur opinion. g our cti s r and whether ’ in n nu the r d significant audit findings, o l Pra unicate with the T a ti t to m auditor du aluate the ov tra ents in a manner s vi epor i er continue as a going conc Ev ev our disclosures, based on the audit ev Conclude on the appr conditions that m to modify our we conclude that a m r g e com ● W the audit an we identify dur Indi Auditor’s responsibilities for the audit of the financial Auditor’s responsibilities ● Re P 2019 337,124 337,124 337,124 337,124 17,812,361 17,812,361 10,159,748 10,159,748 10,159,748 217,224,990 217,224,990 209,235,253 209,235,253 227,047,614 227,047,614 217,224,990 217,224,990 227,384,738 227,384,738 227,384,738 P 2020 10,685 10,685 10,685 10,685 4,635,230 231,731,142 231,731,142 4,635,230 43,249,006 43,249,006 270,355,603 270,355,603 270,355,603 270,355,603 274,980,148 274,980,148 274,990,833 274,990,833 274,990,833 3 5 7 6 Note Cash and cash equivalents Cash Assets Total and Liabilities Equity Equity surplus Accumulated Liabilities Liabilities Current and other payables Trade and Liabilities Equity Total Assets Assets Non‐Current plant and equipment Property, Assets Current and other receivables Trade Statement of Financial Position of Financial Statement 2020 at 31 March As 2020 REPORT ANNUAL UASF

36 37 - - P 2019 5,804,600 (7,417,065) (7,417,065) 48,360,884 (61,582,549) (13,221,665) 2020 REPORT ANNUAL UASF - P 2020 21,294 6,911,951 71,593,249 71,593,249 53,130,613 53,130,613 53,130,613 46,218,662 (25,395,881) 9 8 10 Note Revenue Other income expenses Operating finance before year for the /(Deficit) Surplus income year for the Surplus/(Deficit) income Other comprehensive the income/(loss) year for comprehensive Total Finance income Finance Statement of Comprehensive Income of Comprehensive Statement 2020 ended 31 March the year For - - P 2019 2019 (119,130) 5,804,600 5,685,470 5,685,470 27,322,804 27,322,804 33,008,274 33,008,274 176,226,979 176,226,979 27,322,804 27,322,804 209,235,253 209,235,253 - P 2020 40,796 40,796 (12,100) 6,911,951 15,555,242 15,555,242 6,940,647 6,940,647 15,555,242 15,555,242 22,495,889 22,495,889 231,731,142 231,731,142 209,235,253 209,235,253 3 6 11 Note Total cash and cash equivalents movement for the year for movement cash and cash equivalents Total at beginning of the year and cash equivalents Cash at end of year cash and equivalents cash Total Cash flows flows Cash operating activitiesfrom from generated Cash operations fromNet cash generated activities operating flows Cash activities investing from income Finance plant and equipment of property, Purchase fromNet cash generated financing activities Asset disposal loss Asset fromNet cash generated activities investing Statement of Cash Flows of Cash Statement 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

38 39 - - P surplus surplus (455,741) 53,130,613 53,130,613 (7,417,065) 53,130,613 53,130,613 (7,417,065) 224,642,055 224,642,055 217,224,990 217,224,990 217,224,990 270,355,603 270,355,603 225,097,796 225,097,796 2020 REPORT ANNUAL UASF Accumulated Accumulated Balance at 01 April 2018 2018 April at 01 Balance fromAdjustment adoption of IFRS 9 restated 2018 April at 01 Balance the year for Loss the year for income Other comprehensive the income year for comprehensive Total 2019 as at 31 March Balance 2019 April at 01 Balance the year for Surplus the year for income Other comprehensive the year loss for comprehensive Total 2020 as at 31 March Balance Statement of Changes in Equity Statement 2020 ended 31 March the year For - - P 2019 2019 (119,130) 5,804,600 5,685,470 5,685,470 27,322,804 27,322,804 33,008,274 33,008,274 176,226,979 176,226,979 27,322,804 27,322,804 209,235,253 209,235,253 - P 2020 40,796 40,796 (12,100) 6,911,951 15,555,242 15,555,242 6,940,647 6,940,647 15,555,242 15,555,242 22,495,889 22,495,889 231,731,142 231,731,142 209,235,253 209,235,253 3 6 11 Note Total cash and cash equivalents movement for the year for movement cash and cash equivalents Total at beginning of the year and cash equivalents Cash at end of year cash and equivalents cash Total Net cash generated fromNet cash generated financing activities Net cash generated fromNet cash generated activities operating flows Cash activities investing from income Finance plant and equipment of property, Purchase disposal loss Asset fromNet cash generated activities investing Cash flows flows Cash operating activitiesfrom from generated Cash operations The probability of default calculated based based calculated of default The probability be to will continue pattern loss on historical periods; future for appropriate in the portfolio included That all receivables past than 90 days more assessment that are not recoverable; due are in GDP in the forecast That the movement of impact on the collectability has a direct receivables. trade Impairment of financial assets Impairment financial are assets for provisions Theimpairment and of default about risk on assumptions based uses judgement The Trust loss rates. expected these and assumptions selectingin making the on based calculation, theimpairment to inputs existing loss experiences, historical the Trust’s looking as forward as well conditions market reporting period. at the end of each estimates and other receivables assesses its Trade The Trust at theendeach of impairment for receivables whether an In determining reporting period. or in profit loss should be recorded impairment whether judgements as to makes loss, the Trust indicatingdata measurable a observable is there cash flows future in the estimated from decrease a financial asset. andother receivables trade for Theimpairment assessed are which major operators, except portfolioa on basis, calculated is individually, for adjusted loss ratios, on historical based national and industry-specific economic at the present and other indicators conditions on the with defaults that correlate reporting date portfolio. estimating assumptions used in the The key as follows: loss are credit expected • • • significant the Trust, amounts due to For probability of the debtor, financial difficulties and default bankruptcy will enter that the debtor of indicators all considered are of payments impairment. Accounting Policies Accounting information General is a Trust and Service Fund Access The Universal No. Deed of Trust established under Notarial registered of the Trust’s The address MA317/2014. Avenue, Lot 50671, Independence office Botswana. 5, Gaborone, Extension financial offer to are The main activities of the Trust to serviceproviders to subsidies and incentives infrastructure communications expand and providesalso The Trust services areas. in underserved and production content in local financial assistance among citizens. development capacity related to pages 36 on out set Thefinancial statements on page 60 andthe supplementary information on 18 the Trustees by been approved 61 have 2020. December Statements Financial of Annual 1. Presentation been have The annual financial statements with International in accordance prepared Reporting The annual Financial Standards. on the been prepared have financial statements the principal and incorporate basis cost historical set out below. policies accounting to applied been consistently These policies have otherwise unless stated. presented, all the years Pula. in Botswana presented are They of Significant judgements and sources 1.1 estimation uncertainty the annual financial statements, In preparing and estimates make to management is required the amounts represented assumptions that affect related and financialthe statements annual in and the information Use of available disclosures. in the inherent application of judgement are of estimates. formation from differ could in the future Actual results these the annual to be material may which estimates judgements Significant financial statements. include: Annual Financial Statements Financial Annual 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

40 41 2020 REPORT ANNUAL UASF relation to the total cost cost the total to relation Average useful life Average 2 years 4 years it is probable that future economic benefits associated economic that future it is probable Trust; and to the will flow with the item reliably. can be measured of the item the cost Item IT equipment vehicle Motor The residual value and useful life of each asset are asset are of each and useful life value The residual If the reporting period. at the end of each reviewed from differ expectations the change estimates, previous estimate. in accounting as a change for is accounted plant and equipment of property, part of an item Each in significant is that cost a with separately. is depreciated of the item assets are reviewed annually taking cognisance of the cognisance annually taking reviewed assets are and realities and economic commercial forecasted in treatments of accounting benchmarking through the Country. plant and equipment 1.2 Property, andequipmentplant is property, of item an of Thecost as an asset when: recognised - - at plant and equipment is initially measured Property, less accumulated at cost and carried subsequently cost losses. impairment and any depreciation or acquire initially to incurred costs include Costs plant and equipment of property, an item construct part replace add to, subsequently to incurred and costs in is recognised cost or service it.of, If a replacement plant and of property, the carrying amountan item of partequipment, the is carrying amount of the replaced derecognised. on the depreciated plant and equipment are Property, to useful lives their expected over line basis straight value. residual their estimated plant and of property, of items The useful lives as follows: been assessed equipment have Where the counter-party is another is the counter-party Where it is assumed that the entity, Government on is minimal. This is based default loss given rating credit international theGovernment’s stands at A2 (Moody’s presently standing which to be upper medium gradedefinition: Judged risk). credit low subject to and are The estimates of useful lives as translated into into as translated of useful lives The estimates plant detailed in property, are rates depreciation on the annual financial and equipment policy of the lives and residual These rates statements. Residual value of property, plant and of property, Residual value equipment • Significant assumptions used in the estimation of individually assessed of loss allowances as follows: are receivables Management considered a 1% change in the a 1% change Management considered being equal) (with all other variables GDP factor be immaterial. to the impact thereof and found Note 5 to the financial statements discloses discloses the financial statements 5 to Note on estimated on loss allowances information loss model. credit expected lifetime Management believes that changes in GDP has a that changes Management believes of receivables, impact on the collectability direct though sufficiently detailed data is not even correlation. a strong fully substantiate to available Managementdata, detailed such of theabsence In GDP in forecast change has used the percentage as impairment adjust the estimated to as a factot This available. information this is the most reliable is a significant management judgement which impact the on estimated material have may impairment. for provision In determining the probability of default, a 24 a 24 of default, the probability In determining meaning has been considered, months period of patterns loss andthat the recovery payment, been months have 24 the past over receivables considered. Impairment of financial assets (cont...) Impairment Accounting Policies (cont...) Policies Accounting Annual Financial Statements Financial Annual 2020 ended 31 March the year For Subsequent measurement measured subsequently assets are Financial interest amortisedat cost,using the effective losses. impairment method, less accumulated liabilities at amortised are Financial cost at amortised cost,using measured subsequently method. interest the effective financial assets any notdoes have TheTrust as fair initially designated or liabilities that are available-for-sale or loss or profit through value financial assets. Impairment expected for allowance loss a recognises TheTrust and other receivables, losses on trade credit The amount and prepayments. VAT excluding at each losses is updated credit of expected reporting date. and applies the simplified approach The Trust and other trade for the loss allowance measures lifetime at an amount equal to receivables which ECL), losses (lifetime credit expected losses that will credit the expected represents the fromresult over events all possible default of the receivable. life expected of expected and recognition Measurement losses credit as matrix use of a provision makes The Trust the determination to expedient a practical and other losses on trade credit of expected on historic is based The provision receivables. that factors for adjusted loss experience, credit economic general to the debtors, specific are and assessment an of both the conditions at of conditions direction and forecast current of the time value including the reporting date, appropriate. where money, basis on a collective is calculated The loss allowance that possess and other receivables all trade for large for except characteristics risk credit shared Accounting Policies (cont...) Policies Accounting plant and equipment (cont...) 1.2 Property, is period each for charge The depreciation of comprehensive in the statement recognised in the carrying unless it is included income amount of another asset. from Thearising gain or loss the derecognition plant and equipment is of property, of an item of comprehensive in the statement included is derecognised. when the item income from Thearising gain or loss the derecognition andplant equipment property, of item an of the between as the difference is determined and the carrying if any, net disposal proceeds, amount of the item. 1.3 instruments Financial Classification financial assets and financial classifies The Trust categories: the following liabilities into at amortised cost assets measured - Financial at amortised cost liabilities measured - Financial for Classification depends on the purpose obtained were the financial instruments which at initial recognition. place and takes / incurred re-assessedbasis. on an annual Classification is and measurement Initial recognition initially recognised instruments are Financial the a party to becomes when the Trust of the instruments. provisions contractual financial instruments, or classifies TheTrust as parts,their component on initial recognition a financial asset,an equity or a financial liability of with the substance instrument in accordance arrangement. the contractual initially at measured instruments are Financial value. fair valuefair not at are financial instruments which For included are costs transaction loss, or profit through of the instrument. in the initial measurement Annual Financial Statements Financial Annual 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

42 43 2020 REPORT ANNUAL UASF principal, and the Trust’s business model is to business model is to and the Trust’s principal, and on trade cash flows the contractual collect other receivables. and measurement Recognition when recognised are and other receivables Trade the contractual a party to becomes the Trust measured, are They of the receivables. provisions transaction plus value at fair at initial recognition, at subsequently measured are They if any. costs, amortised cost. The amortised is the amount recognised cost minus principal initially, on the receivable amortisation plus cumulative repayments, method interest using the effective (interest) the initial amount between difference of any loss any for amount, adjusted and the maturity allowance. andCash cash equivalents cash on comprise and cash equivalents Cash hand and demand deposits and other short- readily that are highly liquid investments term amount and of cash a known to convertible changes risk of an insignificant subject to are initially and subsequently These are in value. value. at fair recorded Derecognition when the derecognised are assets Financial cash flows receive the investments to from rights and the been transferred or have expired have and substantially all risks has transferred Trust of ownership. rewards financial instruments Off-setting and off-set assets and liabilities are Financial of in the statement the net amount reported is a benefits when there for net assets available offset the recognised to right legally enforceable on settle to is an intention amounts and there the the asset and settle or realise a net basis, simultaneously. liability -19 to the impairement model. the impairement to -19 They have been classified in this manner because been classified have They on specified rise, give terms their contractual of payments solely that are cash flows to dates Trade and other receivables, excluding, when excluding, and other receivables, Trade classified are and prepayments, applicable, VAT at subsequently financialas assets measured amortised cost. Classification Trade and other receivables Trade Receivables written off may still be subject to still be subject to off may written Receivables recovery activitiesunderthe Trust’s enforcement legal advice account into taking procedures, made are recoveries Any appropriate. where or loss. in profit recognised The Trust writes off a receivable when there is when there off a receivable writes The Trust is in indicating that the counterparty information realistic is no and there financial difficulty severe when the counterparty e.g. of recovery, prospect entered has underor liquidation placed been has proceedings. bankruptcy into Write-off policy Write-off An impairment gain or loss is recognised in profit in profit gain or loss is recognised An impairment the adjustment to or loss with a corresponding andcarrying other receivables, amount of trade The account. use of a loss allowance through in other operating loss is included impairment in and loss as a movement in profit expenses 5). (note loss allowance credit The main source of revenue for the Trust; being the Trust; for of revenue The main source communications licensed by paid the fees from with theit derived bulk of operators, the is not expected sector, telecommunications significantly. the pandemic by be impacted to the not factored Management have Accordingly, impact of COVID Operators. The Trust individually assess exposure individually assess exposure The Trust Operators. of these Details of the entities. of each risk credit to 5. in note is presented matrix provision 1.3 instruments (cont...) Financial Accounting Policies (cont...) Policies Accounting Annual Financial Statements Financial Annual 2020 ended 31 March the year For 1.4 Tax expenses Tax as the is required taxation for No provision from is exempt theTrust by generated income II Part Schedule, of Second in terms taxation 52:01). Act (Cap Tax of the Income (XXXIX) 1.5 Leases if it lease as a finance is classified A lease and rewards substantially all the risks transfers is classified A lease ownership. incidental to not if it does transfer lease as an operating incidental and rewards substantially all the risks ownership. to of assets Impairment 1.6 reportingdate each at assess Themanagers indication that an asset is any whether there indication exists, such If any be impaired. may amount of the recoverable estimates the Trust the asset. be indication that an asset may is any If there amount is estimated the recoverable impaired, the individual asset.for If it is not possible amount of the the recoverable estimate to amount of individual asset, the recoverable the asset which the cash-generating unit to belongs is determined. amount of an asset or a cash- The recoverable value the unit is higher of its fair generating in use. If the sell and its value to less costs amount of an asset is less than its recoverable carrying amount, the carrying amount of the amount. recoverable its to is reduced asset loss. is an impairment That reduction less at cost loss of assets carried An impairment amortisation or depreciation accumulated any or loss. in profit immediately is recognised reporting assess at each The managers indication that an is any whether there date Held within a businessmodel a whose within Held holdthe debt instrument is to objective collect to (financial order asset) in and cash flows; contractual of the financial terms The contractual to cash on specified dates rise asset give of principal payments solely that are flows amount on the principal and interest outstanding. 1.3 instruments (cont...) Financial Accounting Policies (cont...) Policies Accounting the assess that the Group IFRS 9 requires financial each to business model in relation Group the classification. determine asset to and other trade financial assets include and and cash and cash equivalents, receivables follows: as classified are Amortised cost A debt instrumentmeetsthat both of the classified as are conditions following financial asset at amortised cost • • and other payables Trade at fair initially measured are payables Trade at subsequently measured and are value, rate amortised interest cost, using the effective method. derecognition liability Financial financial liabilities derecognises TheTrust obligations are when,and when, only the Trust expire. or they cancelled discharged, the carrying amount between The difference and the derecognised of the financial liability including and payable, paid consideration or liabilities non-cashany assets transferred or loss. in profit assumed, is recognised Annual Financial Statements Financial Annual 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

44 45 2020 REPORT ANNUAL UASF Contingent assets and contingent liabilities assets and contingent Contingent disclosed are Contingents not recognised. are 14.in note 1.8 Revenue the to amounts charged includes Revenue and postal broadcasting telecommunications, These as levies. of Botswana service operators the of percentage fixed a on based are fees of the operators turnover monthly gross by them and subsequently, initially as certified basis. on an annual by their auditors certified from revenue also includes Revenue from received contributions Botswana Authority Regulatory Communications of the Communications in terms (“BOCRA”) Act, section (3) 29 2012 Authority Regulatory financial that at the end of each states which the by received of income excess any year, incurred properly expenditure over Authority and Access in the Universal shall be deposited Trust. Service Fund of the value at the fair is measured Revenue and or receivable received consideration goods for the amounts receivable represents of course in the normal andservices provided added tax. business, net of value income Interest a timeon recognised is income Interest interest usingproportion the basis effective method. currencies of foreign 1.9 Translation transactions currency Foreign currency andFunctional presentation are thein financial statements included Items that best reflects using the currency measured of the underlying substance the economic that to relevant and circumstances events currency”). (“theentity measurement the Trust has a present obligation as a has a present the Trust event; of a past result resources of outflow an that probable is it benefits will be embodying economic the obligation; and settle to required can be made of the estimate a reliable obligation. The reimbursement shall be treated as a treated shall be The reimbursement the for asset. The amount recognised separate the amount shall not exceed reimbursement not recognised are Provisions of the provision. losses. operating future for Where some or all of the expenditure required some or all of the expenditure Where be reimbursed to is expected a provision settle to shall be the reimbursement another party, by when, and only when,virtually it is recognised if the will be received certain that reimbursement the obligation. settles entity Provisions are recognised when: recognised are Provisions • • • value is the present The amount of a provision to be required to expected of the expenditure the obligation. settle 1.7 Provisions 1.7 A reversal of an impairment loss of assets of an impairment A reversal or depreciation less accumulated cost at carried in profit immediately amortisation is recognised loss of a of an impairment reversal or loss. Any increase. revaluation a as treated is asset revalued The increased carrying amountasset of an The increased of an impairment a reversal to attributable the carryingamount loss does not exceed had no been determined have that would the asset for loss been recognised impairment periods in prior impairment loss recognised in prior periods periods in prior loss recognised impairment have or may no longer exist assets may for the indicationexists, such any If decreased. amounts of thoseare assets recoverable estimated. 1.6 Impairment of assets (cont...) of Impairment 1.6 Accounting Policies (cont...) Policies Accounting Annual Financial Statements Financial Annual 2020 ended 31 March the year For - The amendments allow companies to to companies The amendments allow financial particular prepayable measure assets with so-called compensation negative through value at amortised or at fair cost if a specified income other comprehensive value of at fair is met—instead condition the to have or loss. It is likely profit through and other financial biggest impact on banks services entities. the modification of a for account to How confirms The amendment financial liability. result modifications will that most such of a gain or loss. recognition in immediate fromThis is a change practice common of all kinds and will affect under IAS 39 today borrowings renegotiated entities that have use a consistent definition of materiality definition of materiality use a consistent and IFRSs the Conceptual through Reporting; Financial for Framework of the definition of the explanation clarify and material; in IAS 1 some of the guidance incorporate information. about immaterial “Information is material if omitting, mis- if omitting, is material “Information it or obscuring stating reasonably could that decisions influence to be expected fi- purpose the primary of general users on thenancial basis of statements make provide which thosefinancial statements, re a specific about financial information porting entity.” c) Standards, amendments and interpretations amendments Standards, and interpretations c) 31 for effective but the Trust to not relevant end. year 2020 March IFRS 9 – ‘Financial Amendments to with instruments’ features on prepayment and of modification compensation negative financial liabilities. issues: two amendment covers Thenarrow-scope • • • • • • The amended definition is: 1.9 Translation of foreign currencies (cont...) currencies of foreign 1.9 Translation Accounting Policies (cont...) Policies Accounting in presented are The financial statements is the measurement Pula, which Botswana the of entity. currency and balances Transactions into translated are transactions currency Foreign using theexchange currency themeasurement of the transactions. at the dates prevailing rates and gains losses resulting exchange Foreign from and transactions of such the settlement from of monetary the translation assets and currencies in foreign liabilities denominated Such statement. in the income recognised are at monetary translated assets and liabilities are end. at the year prevailing rates the exchange 2. Basis of preparation been have The annual financial statements with International in accordance prepared Reporting a basis on Financial Standards year. with prior consistent and interpretation standards New and amendments interpretations (a) Standards, March for and effective the Trust to relevant year-end 2020 and interpretations no standards, are There and effective the Trust to amendments relevant year-end. 2020 March for amendmentsb) Standards, and interpretations 31 for but not effective the Trust to relevant end. year 2020 March of financial IAS 1, ‘Presentation Amendment to policies, and IAS 8, ‘Accounting statements’ and errors’ estimates changes in accounting on the definition of material. IAS 1 and 8 and IAS Theseamendments to other IFRSs: amendments to consequential Annual Financial Statements Financial Annual 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

46 47 2020 REPORT ANNUAL UASF At the very least, the new accounting model for model for accounting the new the least, very At impact negotiations to expected is lessees and lessees. Under IFRS 16, lessors a between if the contract a lease is, or contains, contract the use of an control to the right conveys exchange time in of period a for asset identified consideration. for IFRIC 4, ‘Leases’, IAS 17, IFRS 16 supersedes contains whetherArrangement an ‘Determining and – Incentives’ Leases SIC 15, ‘Operating a Lease’, of Transactions the Substance ‘Evaluating SIC 27, of a Lease’ Form the Legal Involving the impact of IFRS 16 to Management considered not that it is applicable. and concluded the Trust in IAS 28,Amendments ‘Investments to – long-term and joint ventures’ associates and joint ventures. in associates interests companies that The amendments clarified or in an associate interests long-term for account method is not the equity which to joint venture, applied, using IFRS 9. from effective The amendments are 1 January application permitted. with early 2019, income tax over ‘Uncertainty 23, IFRIC treatments’ a framework consider, 23 provides IFRIC to impact the accounting and measure recognise provides of tax uncertainties. The Interpretation where areas in several specific guidance silent. IAS 12 was previously when to also explains The Interpretation a tax uncertainty. for the accounting reconsider a model to developed Most entities will have of tax uncertainties in the absence for account in IAS 12.specific guidance be These models might, in some circumstances, with IFRIC 23 and the impact on tax inconsistent be material. could accounting Use updated assumptions to determine determine to assumptions Use updated for andnet interest service cost current a plan after of the period the remainder amendment, curtailment and or settlement; part or loss as past of in profit Recognise service cost, or loss on settlement, or a gain or (recognised in a surplus reduction any the substance This reflects unrecognised). that because a surplus of the transaction, an obligation or settle has been used to The recovered. additional benefits is provide in recognised is impact on theceiling asset and it is not income, other comprehensive or loss The impact of the to profit reclassified that these effects confirm amendments is to not offset. are The IASB has included an optional exemption exemption optional an included has TheIASB of low- and leases leases certain short-term for can only this exemption assets; however, value lessees. be applied by almost the stays the accounting lessors, For the as theupdated IASB has same. However, well as (as on the definition of a lease guidance and separation on the combination the guidance the by will also be affected lessors of contracts), standard. new Under IAS 17, lessees were required to make a make to required were lessees UnderIAS 17, balance (on lease a finance distinction between sheet). balance (off lease sheet)operating andan a lease recognise lessees to requires IFRS 16 now and a payments lease future reflecting liability ‘right-of-use virtually contracts. asset’ for all lease This standard replaces the current guidance in in guidance the current replaces This standard in accounting change reaching IAS 17 and is a far lessees in particular. by • IFRS 16 – Leases These amendments require an entity to: to: an entity These amendments require • Amendments to IAS 19, ‘Employee benefits’ on ‘Employee IAS 19, Amendments to plan amendment, curtailment settlement. or New standards and interpretation (cont...) and interpretation standards New Accounting Policies (cont...) Policies Accounting Annual Financial Statements Financial Annual 2020 ended 31 March the year For The fulfilment cash flows are remeasured on remeasured are cash flows The fulfilment The reporting period. each basis a current is service margin) (contractual profit unearned period. the coverage over recognised fromAside model, the standard this general simplification, the as a premium provides, is approach This simplified allocation approach. including contract, of certain types for applicable or less. of one year period those with a coverage participation with direct contracts insurance For applies. The approach fee the variable features, on the general is a variation approach fee variable approach, fee model. When applying the variable of the changes value of the fair share the entity’s in the contractual is included items underlying value the fair a consequence, As service margin. or loss in in profit notrecognised are changes the but over occur they in which the period of the contract. life remaining ‘Business3, IFRS combinations’ Amendmentto the definition of a This amendment revises by received feedback to business. According guidance the IASB, application of the current and complex, be too thought to is commonly qualifying transactions as many in too it results are acquisitions More business combinations. acquisitions. as asset for be accounted to likely a business, an acquisition be considered To input and an a substantive include to have would to contribute significantly that together process guidance outputs. The new create to the ability when an a framework evaluate provides to present are process input and a substantive that have stage companies early for (including be a business without outputs). To not generated be an organised need to will now outputs, there workforce. New standards and interpretation (cont...) and interpretation standards New Accounting Policies (cont...) Policies Accounting Management should the assess existing the in modelsagainst guidance the specific theimpact on andconsider Interpretation tax accounting. income amendmentsd) Standards, and interpretations 31 for and not the effective Trust to not relevant end. year 2020 March Instruments, Financial IFRS 9, Amendments to Financial Instruments: Recognition IAS 39, Financial and and IFRS 7, Measurement rate – Interest Instruments: Disclosure benchmark reform in certain reliefs These amendments provide reform benchmark rate with interest connection and hedge accounting to relate (IBOR). The reliefs that IBOR should not generally the effect have However, terminate. to cause hedge accounting be to should continue hedge ineffectiveness any statement. in the income recorded contracts’ ‘Insurance IFRS 17, contracts’, ‘Insurance The IASB issued IFRS 17, accounting of epoch new a started andthereby standard, the current Whereas insurers. for use their local GAAP, to insurers IFRS 4, allows rules that consistent and clear IFRS 17 defines of comparability the will significantly increase the transition For insurers, financial statements. an impact on financial IFRS 17 will have to indicators. performance and on key statements the Under IFRS 17, model general requires at contract an insurance measure entities to of the fulfilment at the total initial recognition cash future the estimated (comprising cash flows value of reflect the time to an adjustment flows, non- adjustment for risk and an explicit money servicecontractual margin. risk) andthe financial Annual Financial Statements Financial Annual 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

48 49 - P P P P Total Total value value 12,100 12,100 10,685 10,685 119,130 119,130 29,270 29,270 10,685 10,685 10,685 10,685 113,998 337,124 337,124 223,126 223,126 337,124 337,124 337,124 337,124 570,450 570,450 (70,066) Carrying (297,743) Carrying (352,456) 2020 REPORT ANNUAL UASF - - - - - P P P P 223,126 223,126 223,126 223,126 489,395 (841,951) (223,126) (187,720) (142,374) (266,269) (984,325) (1,065,077) (1,252,797) depreciation depreciation Accumulated Accumulated Accumulated Accumulated Motor vehicle Motor Motor vehicle Motor P P P P Cost Cost 12,100 12,100 81,055 81,055 119,130 119,130 29,270 29,270 10,685 10,685 113,998 (74,617) 113,998 256,372 (86,187) 198,405 198,405 (70,066) 1,065,077 1,065,077 1,065,077 1,065,077 1,321,449 1,263,482 IT equipment IT equipment Depreciation Depreciation Total Additions Additions Total Total plant and of property, Reconciliation equipment ‐ 2019 Opening balance As at 31 March 2019 at 31 March As IT equipment Vehicle Motor Disposal- cost Disposal- cost Depreciation Total Motor vehicle Motor Total Additions Disposal- depreciation As at 31 March 2020 31 March at As IT equipment plant and of property, Reconciliation equipment ‐ 2020 Opening balance 3. Property, Plant and Plant Equipment 3. Property, Notes to the Statements Financial Annual to Notes 2020 ended 31 March the year For P 2019 47,588 47,588 5,065,019 5,065,019 17,785,433 17,785,433 10,580,060 10,580,060 209,235,253 209,235,253 209,235,253 209,235,253 227,020,686 227,020,686 P 2020 62,172 62,172 21,285,027 21,285,027 231,731,142 231,731,142 231,731,142 231,731,142 15,870,049 15,870,049 43,229,006 43,229,006 274,960,148 274,960,148 (continued) Group 2 Group 2 Group Group 2 Group Ratings Not rated Key: (less than 12 months ). customers 1 = new Group than 12 months ) (more customers 2 = existing Group in the past. with no default Financial asset at amortisedFinancial cost and other receivables Trade fromReceivable BOCRA deposits and Short-term at bank Cash Cash and cash equivalents Cash Sundry debtors Credit quality of financial assets quality Credit by can be assessed past due nor impaired neither of financial that are assets quality The credit rates. default about counter-party information historical to reference fully None of the financial assets that are in Botswana. available ratings no credit are There the year. during has been renegotiated performing Trade receivables Trade 4. category by assets Financial Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

50 51 P 2019 47,588 47,588 26,928 (681,457) 5,065,019 5,065,019 17,812,361 17,812,361 17,812,361 13,354,283 12,672,826 10,580,060 10,580,060 2020 REPORT ANNUAL UASF P 2020 62,172 62,172 20,000 20,000 (969,469) 21,881,807 22,851,276 21,285,027 21,285,027 15,870,049 15,870,049 43,249,006 43,249,006 43,249,006 (continued) Trade and other receivables Trade fully performing are which receivables Trade Trade receivables Trade Impairment Less: Prepayments and other receivables of trade value Fair The carrying and other amounttrade of Pula. in Botswana denominated are receivables and do not attract unsecured are debtors Trade interest. Trade receivable (net) receivable Trade Sundry debtors fromReceivable BOCRA 5. Trade and other receivables 5. Trade Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For - - - P P 61 - 90 39.66% 39.28% 2019 2019 1,180 1,180 Past due Past 1,180 1,180 30,306 30,306 225,716 225,716 455,741 455,741 455,741 455,741 30,306 30,306 649,971 649,971 681,457 681,457 681,457 681,457 (Lifetime (Lifetime expected expected credit loss) credit Loss allowance allowance Loss - - - P P 12.23% 12.79% 31 - 60 2019 2020 Past due Past 5,655 5,655 default 322,172 322,172 681,457 681,457 288,012 288,012 327,827 327,827 969,469 969,469 2,446,396 Estimated Estimated amount at 10,580,060 10,580,060 13,354,283 10,580,060 10,580,060 gross carrying gross 1 - 30 - (continued) P 4.59% 4.78% 113 2020 Past due Past 2,084 2,084 47,125 47,125 2,084 2,084 47,238 47,238 920,147 920,147 (Lifetime (Lifetime 969,469 969,469 expected expected credit loss) credit Loss allowance allowance Loss 2.17% - P 2.05% Current 2020 57,523 57,523 default 3,505,155 3,505,155 3,418,549 3,418,549 Estimated Estimated 3,562,678 3,562,678 amount at 15,870,049 15,870,049 22,851,276 15,870,049 15,870,049 gross carrying gross 31-Mar-19 31-Mar-20 Date Trade Receivables: Expected Credit loss Default (%) Credit Expected Rates Receivables: Trade Current days 1-30 Fully performing Fully 31-60 days 61-90 days 61-90 days impaired 90 days- Over Past due but not impaired Past Total Movement in the loss allowance for receivables for in the loss allowance Movement Opening balance calculated calculated Opening balance under IAS 39 Amount restated through through Amount restated earnings- opening retained 9 IFRS Translation adjustment Opening impairment Opening impairment under calculated allowances IFRS 9 Provision for the year for Provision 5. Trade receivables (continued) receivables 5. Trade Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

52 53 P 2019 2,103,055 2,103,055 7,691,804 7,691,804 8,056,693 8,056,693 66,332,336 66,332,336 66,332,336 10,159,748 10,159,748 43,295,865 142,902,917 142,902,917 50,987,669 50,987,669 209,235,253 209,235,253 209,235,253 2020 REPORT ANNUAL UASF P 2020 867,399 867,399 3,767,831 3,767,831 21,285,027 32,051,355 32,051,355 32,051,355 50,308,222 4,635,230 71,593,249 71,593,249 231,731,142 231,731,142 231,731,142 199,679,787 199,679,787 199,679,787 (continued) Short‐term deposits Short‐term deposits Short‐term Bank balances accruals related Projects Bank balances cash year-end the statement of the flow cash thepurpose For of following; comprise and cash equivalents and other payables Trade 7. expenses Other accrued UASF levy UASF 8. Revenue BOCRA contribution 6. and Cash cash equivalents Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For P 2019 4,879 8,860 54,575 54,575 28,982 35,904 35,904 36,848 514,138 180,781 180,781 225,716 225,716 701,810 701,810 352,456 352,456 352,456 352,456 293,823 742,476 2,326,311 2,326,311 5,510,777 5,510,777 40,195,124 40,195,124 (7,417,065) 37,865,702 37,865,702 5,804,600 18,500,000 18,500,000 61,582,549 (5,804,600) 27,322,804 27,322,804 - P 2020 11,276 11,276 167,114 167,114 63,767 63,767 45,633 45,633 28,542 35,904 35,904 126,722 126,722 590,330 297,743 297,743 297,743 297,743 288,012 288,012 237,030 237,030 383,024 383,024 448,846 6,911,951 (6,911,951) 6,785,229 6,785,229 53,130,613 53,130,613 (5,524,518) 15,555,242 15,555,242 22,798,660 22,798,660 25,395,881 (25,436,645) (continued) Conference costs Conference expenses and projects Consulting 9. Operating expenses Operating 9. expenses: operating of Major categories and publicity Advertising expenses Board Depreciation Fuel BOCRA to provided Grant on receivables Impairments and other payables Trade Audit fees Audit Bank charges Insurance and stationery Printing and maintenance Repairs costs Secretariat from generated 11. Cash operations year for the Surplus/(Deficit) for: Adjustments Depreciation received Interest capital: Changes in working and other receivables Trade 10. Finance income Finance 10. Bank fromIncome investments short-term Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

54 55 P 2019 660,922 660,922 3,674,185 3,674,185 5,065,019 5,065,019 2,274,203 2,274,203 3,062,960 3,062,960 2020 REPORT ANNUAL UASF - P 2020 2,119,471 2,119,471 1,055,251 1,055,251 7,829,919 7,829,919 21,285,027 21,285,027 (continued) Related party balances party Related Trustees: Trustees: (Chaiperson) MartinMr. Mokgware Itumeleng Batsalelwang Mr. 2019) 31 August (retired Batlang Serema Dr. Mosanako Seamogano Dr. Pifelo Kealeboga Mr. Ms. Setshedi Botlhole 2020) 1 April Bogosi (appointed Ms. Tsholofelo Common ownership entities include other state owned entities, Government departments and Government entities, owned other state entities include ownership Common related material year the In current of Government. all other the entities, within National sphere Telecommunications Botswana were parties has been disclosed which under this category Network. Fibre and Botswana Post Botswana Corporation, regarding andAmounts other included receivables in Trade as follows: parties are related BOCRA Related parties Related (BOCRA), the Trustees, Authority Regulatory Communications Botswana parties comprise Related Members. and/or ownership entities with common BOCRA Amounts included in Trade and other payables regarding regarding andAmounts other included payables in Trade as follows: parties are related Botswana Telecommunications Corporation Telecommunications Botswana Post Botswana Network Fibre Botswana from parties mainly fromThe receivables arise levies. and Service related Fund Access Universal held against was No provision no interest. and bear in nature unsecured are The receivables from parties.receivables related 12. Related parties 12. Related Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For P 2019 19,350 19,350 514,138 45,900 45,900 393,817 283,409 283,409 742,476 742,476 1,067,419 1,067,419 7,691,804 7,691,804 2,899,905 14,658,300 18,500,000 18,500,000 - P 2020 6,062 6,062 71,052 59,400 30,600 167,114 167,114 590,330 3,158,030 3,158,030 1,075,487 1,075,487 21,285,027 21,285,027 18,416,009 18,416,009 (continued) Cellphone allowances Cellphone Other costs i) Sale of services rendered Corporation Telecommunication Botswana Post Botswana Network Fibre Botswana Travelling allowances Travelling fromii) Contributions BOCRA BOCRA to provided iii) Grant BOCRA to fees iv) Secretariat Board expenses Board allowances Sitting 13. Risk management management risk Capital as a continue to ability the Trust's safeguard to when managing funds are objectives The Trust's broadcasting on the telecommunications, oversight effective provide to in order going concern facilities class world of for development sufficient funds and create and postal services operators its activities effectively. monitor to imposed capital requirements. no externally are There capital for manages as capital, the strategy what the Trust to been no changes have There the year. during imposed capital requirements or externally maintenance Related party transactions party Related 12. Related parties (continued) 12. Related Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

56 57 P P P 2019 2020 2020 values) months (maturity (maturity 201,665,110 than three than three 144,140,425 Due in less 2020 REPORT ANNUAL UASF P 2019 2020 3.76% 4.20% Current Current Interest Rate Interest (continued) Cashflow Interest rate risk rate Interest Cashflow Fixed deposits and money market fund market deposits and money Fixed Financial instrumentFinancial fund market deposits and money Fixed However, considering the short-term maturity between 14 and 91 days for these deposits, fair value value these fair deposits, for days 14 and 91 between maturity the short-term considering However, minimised. are risks rate interest Further, these deposits are due on demand. The fixed deposits amounting to P199.7 million (2019: million (2019: to P199.7 deposits amounting due on demand. The fixed theseare deposits Further, risk. rate interest cash flow to exposed P142.9 million) are The Trust places its funds both in fixed interest earning deposits (fixed deposits) and fluctuating (fixed deposits earning interest its funds both in fixed places The Trust in the on changes based basis on a short-term adjusted are deposits which earning interest rates. interest related market prevailing The Trust is exposed to various risks associated with the effect of fluctuations in the prevailing of fluctuations with the effect in the prevailing associated risks various to is exposed The Trust and investments. on its cash resources of interest rates market of levels achieve in a manner to invested funds are that surplus ensure managed to are The cash resources while minimising risks. maximum returns Interest rate risk rate Interest Risk management is carried out by the key management of the Trust and under policies management of the Trust the key out by Risk management is carried management. risk overall for principles written provides The Trustees the Trustees. by approved The Trust’s overall risk management program focuses on the unpredictability of financial markets of financial markets on the unpredictability focuses management program risk overall The Trust’s financial performance. on the Trust’s effects adverse potential minimise to and seeks The Trust’s activities expose it to a variety of financial risks: market risk (including fair value interest value interest fair (including risk market risks: of financial a variety it to activities expose The Trust’s risk. risk), credit rate interest and cash flow risk rate Financial risk management risk Financial 13. Risk management13. Risk (continued) Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For P 2019 97,836,111 97,836,111 47,571,413 47,571,413 17,785,433 17,785,433 63,827,729 63,827,729 P 2020 53,326,021 53,326,021 29,874,942 29,874,942 43,229,006 43,229,006 148,530,179 148,530,179 (continued) Stanbic Bank Botswana Limited Stanbic Bank Botswana Bank Botswana Chartered Standard Credit risk Credit only The Trust debtors. and trade equivalents, mainly of cash deposits, cash consists risk Credit one any to standing and limits exposure credit with high quality major banks deposits cash with counter-party. from operators major sector, mainly of three comprise the telecommunications receivables Trade . at year-end million) P9.63 (2019: P14.67 million amounting to P43.2 to is limited and other receivables receivables on trade exposure The maximum credit million). P23.6 million (2019: on an on-going especially basis customers to relating risk the credit Management evaluates budgets, etc., and where financial statements, obtaining their latest by on major customers and doubtful debts. bad for provisions adequate makes appropriate, as follows: end were at year risk credit to assets exposed Financial Trade and other receivables Trade Fund Market Stanlib Money 13. Risk management(continued) Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For Foreign exchange risk exchange Foreign does not hedge end. The Trust outstanding at the year exposures currency no foreign are There fluctuations. exchange foreign 2020 REPORT ANNUAL UASF

58 59 - - P -19. -19. Between 1 Between and 2 years 2020 REPORT ANNUAL UASF P year 4,635,230 10,159,748 Less than 1 Less (continued) -19 was declared a world health emergency in January 2020 by the World Health Health the World in January by 2020 emergency health a world declared was -19 As at 31 March 2020 at 31 March As and other payables Trade The amounts disclosed in the table are the contractual undiscounted cashflows. Balances due Balances cashflows. undiscounted the contractual in the table are The amounts disclosed is not significant. as the impactwithin 12 months equal their carrying of discounting balances The table below analyses the Trust's financial liabilites into relevant maturity groupings based on groupings maturity relevant into financial liabilites the Trust's analyses The table below date. maturity the contractual to at the reporting date period the remaining The Trust's risk to liquidity is a result of the funds available to cover future commitments. The Trust The Trust commitments. future cover to of the funds available is a result liquidity to risk The Trust's facilities. and credit commitments of future an ongoing review through risk manages liquidity Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, securities, management implies maintaining sufficient cash and marketable risk liquidity Prudent and the facilities credit amount of committed an adequate of funding through the availability positions. out market close to ability 2019 at 31 March As and other payables Trade Liquidity risk Liquidity The Trustees confirm that there are no material contingent liabilities and capital commitments as contingent liabilities and capital no material are that there confirm The Trustees end. at year 14. and commitments Contingencies 13. Risk management(continued) Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For Botswana Government responded swiftly with varied measures to combat the impact of COVID combat to measures with varied swiftly responded Government Botswana Organisation. The outbreak caused wide-spread concern and its effect felt across the world. the world. across felt and its effect concern caused wide-spread The outbreak Organisation. of 6 months and an initial lockdown a period for of Emergency a State declared The Government the operating affected These measures lockdown. and subsequently a 14 day of 28 days period COVID 15. Events after the reporting after date 15. Events (continued) 15. Events after the (continued) reporting after date 15. Events as hadanticipated. been not being completed in some of the projects resulting activities of the Trust and operations the on Trust’s assessment of COVID-19 a Going Concern has performed The Trust a case medium scenarios; two In doingthe assessment,considered Management cash flows. and a year of the new quarter of the first on the results based were projections where scenario of 13.1%. contraction assuming economic scenario worst-case under a worst-case even solvent remain to and the Trust net income positive forecasts The analysis communications licensed by paid being the levy the Fund, for of revenue The source scenario. go to from with the bulk of it derived is not expected sector operators the telecommunications the because of increased pandemic during trajectory has seen an upward this sector since down services. use of broadband a do not have of COVID-19 that the effects of the view are Management and the Board Accordingly, as a going concern. continue to ability impact on the Trust’s negative Notes to the Annual Financial Statements the Statements Financial Annual to Notes 2020 ended 31 March the year For 2020 REPORT ANNUAL UASF

60 61 - - P 2019 (4,879) (8,860) (54,575) (28,982) (35,904) (36,848) (514,138) (180,781) (225,716) (701,810) (352,456) (742,476) 5,065,019 5,065,019 5,804,600 43,295,865 5,804,600 (40,195,124) (7,417,065) 54,165,484 48,360,884 (18,500,000) (61,582,549) 2020 REPORT ANNUAL UASF - P 2020 21,294 21,294 (11,276) (167,114) (63,767) (45,633) (28,542) 6,911,951 (35,904) (297,743) 6,911,951 (288,012) (237,030) (383,024) (590,330) (448,846) 21,285,027 21,285,027 53,130,613 53,130,613 50,308,222 71,593,249 71,593,249 78,526,494 78,526,494 (22,798,660) (25,395,881) Expenses fees Audit on receivables Impairments Insurance Bank charges Revenue Levy UASF fromContribution BOCRA Other income income Miscellaneous income Total expenses Board Depreciation Fuel Interest received Interest BOCRA to provided Grant Projects and publicity Advertising and maintenance Repairs and stationery Printing costs Secretariat costs Conference Total comprehensive income/(loss) for the income/(loss) year for comprehensive Total on page part of the audit opinion expressed does not form statement The detailed income 35. to 33 numbers Detailed IncomeDetailed Statement 2020 ended 31 March the year For Notes 2020 REPORT ANNUAL UASF

62

UASF

Annual Report 2020

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