June 8, 2005
Prince Invests in Letshego
GABORONE - Saudi Arabia's Prince Alwaleed Abdulaziz Alsaud says he intends to strengthen diplomatic ties between his country and Botswana by investing more in the latter.
He said during a call on President Festus Mogae that Botswana presents a better opportunity for investment in view of the political and economic stability.
Prince Alwaleed, who is a private entrepreneur and an international investor, has acquired a 34.9 per cent equity share holding in Letshego, a micro lending company which provides credit to low and middle income earners in Botswana.
He also disclosed that Letshego was surveying prospects of participating in the Botswana International Financial Services Centre (BIFSC).
In Africa, the Saudi prince owns 10 per cent of Ecobank, a banking group operating in 12 countries in West Africa. He told Mogae that the hotel industry is another area that could attract Arab investment.
Mogae highlighted the positive contributions that would arise from the visit, pointing out that tourism and investment opportunities would benefit the country. In his meeting with Foreign Affairs and International Cooperation minister Mompati Merafhe, the prince said: "I have realised that Botswana is well developed and ahead of many developing countries".
Merafhe said the country was inspired by the great economic strides that Saudi Arabia has made over the years.
"Botswana is highly dependent on minerals, especially diamonds, and we believe we can learn a lot from your experiences in the diversification of your economy from its reliance on oil".
With Saudi Arabia boasting a rapidly growing and diversified private sector, which now accounts for more than a third of gross domestic product (GDP), this was yet another area in which Botswana could cooperate with the Saudis for mutual benefit, Merafhe said.
Finance and Development Planning minister Baledzi Gaolathe affirmed the links between the two countries, saying they have contributed to Botswana's development process.
"If you remember very well we had two soft loans from your country which contributed to the development of this country. One such existing development is the Sir Seretse Khama Airport", he said. Gaolathe added that during pre-independence days the economy of this country was poor "but through the aid provided by Saudi Arabia we managed to pull through. Our economy has been able to grow but it can be made even more successful if we strengthen ties". BOPA
