Former Botswana Telecommunications Corporation (BTC) Managing Director Anthony Masunga’s compensation rose 5.5 percent to P3.4 million in fiscal year 2024, making him one of the highest-paid CEOs of a government-owned company currently occupying office.
The increase in pay compared to last year (P3.2 million) comes amid an increase in revenue for the listed telecommunications company. The company recorded a marginal annual revenue growth rate ever in the fiscal year that ended March 2024, according to the financial statement. BTC revenue grew by 3 percent, climbing from P1.4 billion in 2023 to P1.43 billion in 2024.
Masunga, who has been the company’s captain since January 2017, left his position as Managing Director on August 2, 2024.
According to the company’s 2024 Integrated Annual Report, the modest growth was driven largely by the company’s focus on expanding its broadband infrastructure and enhancing service quality. As voice revenues continued to decline, BTC leaned heavily into data services, meeting the rising demand for high-speed internet across Botswana.
Masunga, in his final statement as Managing Director, outlined BTC’s path to strengthen its core business, optimising efficiencies, and maximising return on assets.
“Our financial performance demonstrates the notable strides we have made in strengthening our core business, optimising efficiencies, and maximising return on assets, while concurrently pursuing new growth opportunities,” he stated. The former MD’s comments point to a strategy of balancing cost management with growth, a strategy that bore fruit in the form of a 35 percent increase in profit before tax, despite rising costs.
BTC’s cost of services and goods sold rose to P637.3 million in 2024, up from P594.2 million in 2023. This 7 percent increase reflects the broader economic pressures, but Masunga’s strategic vision enabled BTC to mitigate these challenges through operational efficiencies and prudent resource management as noted in his statement. A significant decrease in administrative costs, down by 18 percent due to a prior year restructuring, further bolstered BTC’s bottom line.
Despite the gains, BTC faced a 38 percent increase in income tax, driven by prior-year restatements related to deferred tax on land and buildings carried at fair value. Yet, the company’s resilience was evident; with Masunga pointing out that the increase in profit before tax was achieved despite these headwinds.
In 2024, BTC’s net profit closed at P157.5 million, up from P117.8 million in the previous year, a 33.7 percent increase. The improvement in profitability was also reflected in the earnings per share, which grew to 15 Thebe from 11.2 Thebe in 2023.
Following BTC’s Initial Public Offering (IPO), the Government of Botswana set aside 5 percent of the company’s share capital for its employees. While the original plan was to allocate these shares through a trust with dividends shared among employees, a 2016 Presidential Directive amendment allowed direct purchase at a 15 percent discount. To date, 820 of 950 eligible employees have taken advantage of this offer, purchasing over 19.26 million shares. The remaining shares are still held by the government, with ongoing discussions about how to further benefit employees as noted in the annual report.
As Masunga stepped down, BTC is looking ahead to 2025 with a clear vision of becoming Botswana’s leading digital services provider. Central to this ambition is the integration of artificial intelligence (AI) and machine learning into its operations. Masunga outlined a forward-thinking strategy that leverages AI for predictive analytics, resource optimisation, and personalised customer experiences. By embracing these technologies, BTC aims to not only enhance efficiency but also deliver more customised services that meet the evolving needs of its customers.
