CA okays Skybird’s takeover of Ngoma Lodge

… but insists on recruitment of a native as General Manager


The Botswana Competitions Authority has given Skybird (Pty) Ltd the greenlight to acquire 100 percent shares in Ngoma Lodge.

In approving the transaction, CA stated that the acquisition will not alter the structure of the market for provision of safari lodge accommodation and related activities in the Chobe District and that the result of the acquisition will not result in the new entity attaining any dominant position.

But Ngoma Lodge has a joint venture agreement with Chobe Enclave Community Trust (CECT) that whose terms CA says have been violated by both parties. A key part of the agreement relates to recruitment of an understudy from the community to be trained for the position General Manager. Because this has not been done, CA approved the acquisition of Ngoma by Skybird on certain conditions.

Among these are that the new entity must ensure recruitment of a citizen as Assistant General Manager who will be an understudy to the General Manager at Ngoma Lodge within six months. “The appointed Assistant General Manager should be appointed as General Manager within a period of two years,” CA pronounced.

“There should also be no retrenchment as a result of the acquisition while employees of Ngoma Lodge should continue to work on terms and conditions of their employment before the acquisition.

Under the deal, the Sky Bird is required to ensure that it works harmoniously with CECT with the terms and conditions that that are not less favourable than the ones that are already in place with Ngoma. “In the event that Skybird intends to sell the Ngoma business, they must give priority to CECT through the principle of right to refusal,” said CA.
Should this not happen, “a clear justification for the decision not to sell to CECT must be communicated to us at least two months before selling the business”, it said.