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Download File Annual Report 2019 GROWING A CONNECTED AND DIGITALLY DRIVEN SOCIETY CONTENTS 1 About this Report INTRODUCTION 01 6 Chairman’s Statement 8 Board of Directors 10 Chief Executive’s Statement 14 Management 16 Executive Management GOVERNANCE 02 20 Role of the Board 22 Board Participation 23 Internal Audit 24 National Broadband Strategy 25 Project Management 26 UASF Strategy REVIEWS 03 30 Market Performance Review 64 Customer Protection 67 Stakeholder Engagement 72 Corporate Social Investment 73 Human Capital Management 75 Organisational Capital FINANCIAL STATEMENTS 04 80 General Information 81 Board Members’ Report 82 Board Members’ Responsibilities and Approval 83 Independent Auditor's Report 88 Consolidated and Separate Statements of Financial Position 89 Consolidated and Separate Statements of Comprehensive Income 90 Consolidated and Separate Statements of Cash Flows 91 Consolidated and Separate Statements of Changes in Equity 93 Accounting Policies 107 Notes to the Annual Financial Statements The following supplementary information does not form part of the Annual Financial Statements and is unaudited: 128 Detailed Income Statement REPORT APPROACH To truly demonstrate how BOCRA has performed in the period under review, we know we need to assess ourselves across a number of key spheres; these being: against our Strategic Plan ABOUT THIS and Policy, Commercial, Legal, Financial, Market and Technology. We cannot REPORT and must not work in silos without appreciation of our surrounding ecosystem, for these stand to shape who we are and what we do, as well as how strongly we deliver. This Report is therefore holistic in looking at an integrated reporting style. TELECOMMUNICATIONS BROADCASTING POSTAL INTERNET PRINTED SECTION ONLINE SECTION This printed Integrated Annual Report strives to provide a holistic An online version of this Integrated overview of the performance of Annual Report can be found at BOCRA and its efforts throughout the www.bocra.org.bw period under review, designed with clear sections and themes for the ease of the reader. WE HELP TELECOMMUNICATIONS GROW INTRODUCTION 2 INTRODUCTION GOVERNANCE REVIEWS FINANCIALS 6 Chairman’s Statement 8 Board of Directors 10 Chief Executive’s Statement 14 Management 16 Executive Management TELECOMMUNICATIONS BROADCASTING POSTAL INTERNET 01 3 01 ME FOR MY BUSINESS FOR CORPORATES FOR WEALTH FOR SUMMARY OF PERFORMANCE FINANCIAL AUTHORITY GROUP Deliver on our promises Revenue When we give our word to our community and our stakeholders, we commit to P118.28 million P161.58 million delivering to expectation or 10.49% 10.75% beyond, and nothing less. F2018: P132.14 million F2018: P181.05 million Create a progressive, future Cash and Cash Equivalents oriented organisation To be a business that is wholly sustainable and the embodiment P182.77 million P392 million of business continuity, we need 8.79% 9.92% to future-proof all that we are F2018: P168.01 million F2018: P356.61 million and all that we do, so that our efforts benefit stakeholders for decades to come. Surplus after Tax Separate and adapt for P5.07 million P11.08 million the future 75.11% 68.90% Being agile and evolving or F2018: P20.37 million F2018: P35.63 million adapting as and when needed is what sets us apart. Focused, Net Assets defined and clear goals that we work towards with a perpetual desire for doing better for and P322.23 million P539.45 million by our consumers well into the 6% 1.96% future. F2018: P303.99 million F2018: P529.08 million 4 INTRODUCTION GOVERNANCE REVIEWS FINANCIALS HUMAN CAPITAL Staff Complement Ratio of Women at Executive Management % Level* 49Female % 84 51Male % as at 31 March 2019 38 F2018: 38% Qualifications st Prize 1 Regulatory Category Botswana International Trade Fair 2018 % Graduate 74 and above 5 CHAIRMAN’S STATEMENT Major Gen. Bakwena Oitsile (Rtd) Botswana Communications RegulatoryBotswana Communications Authority 6 INTRODUCTION GOVERNANCE REVIEWS FINANCIALS The 2018/19 reporting period marked the conclusion of the BOCRA Strategic Plan for the period 2014-2019, and ushered in the new Strategic Plan for the period 2019-2024. The just ended 2014-2019 Strategic Plan achievement of Sustainable Development focused on issues such as affordability of Goals (SDGs). communications services, growth of the broadcasting sector, improvement of quality Having noted these positives, the reporting of services, the universality of communications period recorded cases of unsatisfactory services, and the improvement of regulatory quality of service. This is an area that the processes. These areas of focus were intended Board continues to dedicate its time and to drive access to communications services attention to. and usage of those communications services. The majority of the objectives of the Strategic As earlier states, the Board has developed Plan were achieved. a new Strategic Plan for the period 2019-2024. The visionary, adaptive and Botswana continues to rank 5th in Sub- responsive Strategy is inspired primarily by Saharan Africa in terms of the International the aspirations of the National Broadband Telecommunication Union (ITU) ICT Strategy of 2018 and aims at facilitating Development Index that ranks countries Botswana’s transition to a digital economy. according to their level of ICT Access The Strategy is underpinned by six strategic and Usage. Although affordability of ICT pillars of Competition, Consumer Protection, services continues to be of concern, efforts Resource Optimisation, Stakeholder to bring down tariffs continue. Suffice to Engagement, Universal Access and Service, mention that during the year under review, and Talent Management. interconnection rate settled at 13 thebe per minute and off-net premium was removed for The main goal of the new Strategic Plan mobile voice tariffs. Similarly, the broadcast is to facilitate the provision of universally market has been enhanced with the issuance accessible and affordable broadband services of several licences, taking advantage of the in line with the United Nations Broadband Digital Terrestrial Broadcasting platform. Commission for Sustainable Development, Also worthy of mention is the conclusion and the SADC Broadband Targets to be of the broadband access projects carried achieved by 2025. out through the facilitation of the Universal Access and Service Fund (UASF). These projects benefitted the most expansive and least populated areas that were assessed Major General Bakwena Oitsile (Rtd) to have the least access to ICTs, facilitating the Chairman Annual ReportAnnual 2019 7 BOARD OF DIRECTORS Professor Joseph Monamati Chuma Vice Chairman • PhD in Electronic Engineering Systems, University of Essex, UK • MSc. in Telecommunications and Information Systems Engineering, University of Essex, UK • MBA, University of Botswana • BEng. In Electrical and Electronic Major General Bakwena Oitsile (Rtd) Engineering, University of Nottingham, UK Chairman • Diploma for Basic Officers Engineer, Fort-Bel- vios, Virginia, USA Botswana Communications RegulatoryBotswana Communications Authority 8 INTRODUCTION GOVERNANCE REVIEWS FINANCIALS Onkagetse Doctor Pusoentsi Wilhelmina T. Makwinja Gape Kaboyakgosi Board Member Board Member Board Member • Bachelor of Laws Degree, • Post Graduate in Energy, Oil and • PhD in Public Policy, Australia University of Botswana Gas, Liverpool University, UK National University • BA (Honours) Sociology and Social • MPA Syracuse University, USA Policy, University of Essex, UK • BA, University of Botswana Galeboe Mmelesi Batlang Comma Serema Martin Mokgware Board Member Board Member Chief Executive & Ex-officio Member • BSc, University of Botswana • PhD (Library and Information • MA Transport Economics, Studies) University College, University of Leeds, UK, London, UK • Post Graduate Diploma • MSc. (Information Analysis) Robert Telecommunications Regulation, Gordon University, Scotland, UK University of Westminster, UK. • BA (History and Environmental • BA Economics, University of Science) University of Botswana Botswana Annual ReportAnnual 2019 9 CHIEF EXECUTIVE’S STATEMENT I am privileged to present my second report as Chief Executive of the Botswana Communications Regulatory Authority (BOCRA). The period under review brought to a close the 2014-2019 Strategic Plan. It therefore, presents an ideal reference point for reviewing the performance of BOCRA in relation to the roadmap it set itself five years ago. Early in the year under review, a review of the organisational structure was carried out to optimise the use of available human and financial resources to achieve more with less. Worthy of mention, is the consolidation of licensing activities under one department to create a one-stop centre for licensing requests, which facilitates access to market entry. Also critical, was the creation of the Technology Department to deal with all technology related activities including Information Technology Management, Domain Name Registration, Information and Network Security Management and Electronic Authentication. The Internal Audit function was outsourced to free in-house Internal audit personnel to concentrate on compliance and monitoring of licensees. The resulting re-organisation also strengthened the Research function to ensure that Botswana has quality, reliable ICT data to support the development and usage of broadband infrastructure and services. To drive its mandate, BOCRA has adopted an inclusive multi-stakeholder approach, cross-sectoral collaboration and digital cooperation with key stakeholders. To this end,
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