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Afinitas Group to tackle its lofty deficit this year

Publishing Date : 04 June, 2018


Afinitas Limited British Managing Director Rupert McCammon believes the company will grow in leaps and bounds this year despite its latest financial report showing that it has been operating on deficit in 2017.  Afinitas is a green field investment pan African company incorporated in Botswana and listed in the Botswana Stock Exchange.

According to the latest results of the financial year which ended in 31 December 2017, Afinitas Limited recorded a loss of US$ 1 408 252 while last year its operating loss was at US$ 382 319. The Afinitas loss increased by US$1 025 933 in the last financial year. Between 2016 and 2017(for the period recorded) Afinitas did not move up its revenue as it only increased its revenue by US$ 119 595. McCammon wishes in this year, the company can grow its revenue in his statement.

“2017 was a year of building appropriate corporate structures and systems that will allow your company to grow in future years, these are now mainly in place. The challenge for 2018 and onwards will be to focus on increasing revenue in all three of the investee companies,” said McCammon.

Afinitas also increased expenses in 2017 to US$1 878 401 from US$704 058 in 2016. The expenses increased by US$ 1 1743 43. The report shows that in 2017 Afinitas spent more US$ 751 602 in Consulting and professional fees which took most of their expenses as the consultancy charges increased by US$ 594 577 from the US$157 045 in 2016.

Afinitas chairman Lesang Magang reiterated McCammon’s worry that the company has been making less revenue  if not nose-diving as far as revenue is concerned. Magang said from now on the company will focus on revenue growth across the Afinitas Group. He further promised that the existing corporate structure and their talented team will provide a strong platform to achieve this.

Magang said the operational focus for the Group was on building operational and corporate structures to support the business strategy in each of the investee companies. Afinitas has three investee businesses namely, Africa Events Limited, Ethiopia Investments Limited and Adventis Limited. Ethiopia Investments Limited is a holding company for investments in Ethiopia, Adventis is a pan African fund management company while Africa Events is a high level events management company.

According to the latest financial statement, Afinitas’s main revenue are derived from Africa Events Limited as its biggest event, the Africa Financial Services Investment Conference(AFSIC)  continued to show strong growth in delegate numbers, and revenue as it develops into one of the most important Africa investment events globally. Afinitas believes that AFSIC will thrive and grow more as Africa is likely to become one of the more exciting investment destinations globally.

Afinitas is also confident that Ethiopia Investments Limited that will grow this year amidst Ethiopia experiencing some political issues since 2015. “In light of the ongoing political and social developments in Ethiopia, it was deemed prudent to make an impairment provision for the operations in Ethiopia. Shareholders are advised that despite this provision management is optimistic that the Ethiopia operations have good potential for growth,” said Afinitas.

Commenting on Ethiopia’s political tension effect on the company’s performance, Afinitas Executive Director Leutlwetse Tumelo told BusinessPost that the political landscape in Ethiopia has not had any material adverse effects on their  operations in the country. “We maintain a positive long term outlook on Ethiopia as an investment destination,” he said.

The executive directors on the Board of Afinitas are Rupert McCammon (Managing Director) and Tumelo (Executive Director). Renowned economist Keith Jefferies is an independent non-executive director while Magang is a non-executive chairman. Magang takes a director’s fee of $7799, Jefferis $8644 and McCammon who does not earn a salary in his capacity as managing director pockets fee of $7802. As an executive director, Tumelo is entitled to a monthly salary of $74 394.



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