Chobe investors catch a break

Chobe Holdings expects its pretax profits for the year ended February 29, 2020 to be up to 25% higher than the corresponding period last year. In a notice to investors this week, the Botswana Stock Exchange’s tourism counter said pretax profits, to be reported in results due by month-end, would be higher by between P16.6 million and P27.2 million. The news is a welcome break for investors who are presently wrestling with the dire impact of (the coronavirus) COVID-19 on the local tourism sector. In the year to February 28, 2019, Chobe shareholders received a net dividend of 60 thebe. However, it is possible directors could recommend non-payment of the dividend this year to conserve cash in the fight to survive the coronavirus’ impact. Chobe, one of the major players in the local tourism sector with high-end camps in the Okavango Delta, is amongst the companies hit hard by the coronavirus, which forced government to slap travel restrictions on all arrivals in March and also institute limits on the population’s movements.