Boidus Focus - Vol 2, Issue 2 [Mar 2012]

O I D U S F O C U S

www.boidus.co.bw P5.00 (Including VAT)Botswana’s Architecture Design and Urban Landscape Newspaper

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BOIDUS NEWS >

COMMENTS >12

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BUILDINGS >06

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Minister Makgato-Malesu Shown Around The Com-pleted Masa Centre [CBD]Arctez- Design of Masa Centre called for Inte-grated Design

EDITORIALS >04

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Sustainable Cities, Popula-tion Distribution & Means of Production & TradeBotswana Must Secure A Production Of Building Materials Of Its Own

NEWS >02

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Parliament Passes Bill to abolish VAT on property for first time buyersSouth Africa to Invest in In-frastructure Development: Budget Speech 2012

by H. Killion Mokwete and Esther AmogelangConstruction Industry Outlook Review and Budget Responseby Mpho Mooka & Keeletsang Dipheko

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Ever wondered what other opportuni-ties for investment in property develop-ment are outside the usual commercial and residential ventures? Well, tourism is a BIG unexplored potential in Bo-tswana’s economic market. Not only is investment in tourism a profitable ven-ture, it also has been proven over time to be a sustainable business sector.

The tourism economy is one of the largest economic sectors in the world;

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Boidus Focus took an opportunity to meet with representatives of profes-sional bodies from different industries including construction and architecture. The focus being to take a closer eye on how they see Industry Outlook for 2012 as well as the impact of the 2012/13 Budget to their respective industries. -Budget allocation will lead to further

it ranks fourth in terms of global ex-ports after fuel, chemicals, and auto-motive products, with an industry val-ue of US$1 trillion a year (UNEP, 2011). The tourism economy generates 5% of world gross domestic product (GDP), and it makes up 6-7% of total employ-ment. International tourism accounts for 30% of the world’s exports of com-mercial services or 6% of total exports; 935 million international tourists were recorded in 2010.

Property Market Outlook for 2012: Interview with Nkwebi Maswikiti (BBS)Debate: Budget Speech Response and Feedback

Registered at GPO as a NewspaperVolume 2, Issue #2

Tourism Investment and Real Estate Development Opportunities in Botswana

Dr HENRI COMRIE Shares His Experiences in the Designing of Cape Town World Cup Stadium

Approach to Cape Town Stadium: Early development sketch by Dr Henri Comrie exploring the pedestrian experience along on important approach to the Cape Town Stadium (2007)

Leading South African Architect and Urban Designer who led the urban de-sign and Architectural design for the Cape Town world cup stadium Dr Henri Comrie was recently in the country to share his experiences with leading ar-chitects and architectural students at the University of Botswana.

Following this very interesting and in-

formative lecture, Boidus conducted an exclusive questionnaire interview with Dr. Comrie about his work experi-ences with the Cape Town World Cup Stadium and the city’s regeneration; as well as his professional view on a city like Gaborone which is also embarking on an ambitious redevelopment exer-cise of its inner core.

by H. Killion Mokwete

close down of the construction industry• Challenges will continue to roar

the construction industry• The current focus on corruption

makes it more difficult for public officers to make decisions

• Contractors need to acquire edu-cation and productivity for future

Boidus talks to Industry Professional Executives [ABCON, BIE, AAB]

Botswana’s Travel & Tourism base-line forecasts, developed by WTTC and Oxford Economics, are very positive. The direct contribution of Travel &Tourism to GDP is expected to be BWP3,124.5mn (2.5% of total GDP) in 201 (with actual result reported at at 3.7 percent with accommodation room and bed oc-cupancy rates at 48.1 percent and 40.7 percent respectively), rising by 5.5% pa to BWP5,351.1mn (3.1%) in 2021 (in constant 2011 prices).

The total contribution of Travel & Tourism to GDP, including its wider economic impacts, is forecast to rise by 5.9% pa from BWP8,336.6mn (6.6% of GDP) in 2011 to BWP14,839.9mn (8.6%) by 2021.

Travel & Tourism is expected to sup-port directly 21,000 jobs (3.5% of total employment) in 2011, rising by 3.0% pa to 28,000 jobs (3.6%) by 2021. The total contribution of Travel & Tourism to employment, includ-ing jobs indirectly supported by the industry, is forecast to rise by 4.8% pa from 46,000 jobs (7.8% of total employment) in 2011 to 74,000 jobs (9.7%) by 2021.

Travel & Tourism visitor ex-ports are expected to generate BWP6,496.1mn (15.3% of total exports) in 2011, growing by 10.4% pa (in nominal terms) to BWP10,662.9mn (17.2%) in 2021.

Travel & Tourism investment is estimated at BWP1,181.0mn or 6.3% of total investment in 2011. It should rise by 4.8% pa to reach BWP1,885.9mn (or 6.5%) of total investment in 2021.

BOTSWANA’S TOURISM ECONOMIC PROFILE: World Travel and Tour-ism Council (WTTC)

African Home Lodge, Gaborone- A thriving urban hospitality offering conference facilities and tourist exclusive luxury accommodation. The use of local vernacular architectural styles sets it apart.

Bridgetown Development, Kasane set to be the first resort to buy into for your holiday home in Botswana.

Majestic Hotel, Palapye will anchor what is to become a colleague township and offer a much needed rest stop along the A1 highway

BOIDUS EXCLUSIVE >

BOIDUS FOCUSThursday 01 March, 2012

Local News

Majestic Hotel To Make Pala-pye A Destination Of Choice by Esther Amogelang

Recently Palapye opened its doors to the five star project, Majestic Hotel, the first phase of the P1 billion construction proj-ect intended to be the leading popular attraction in Botswana.

The Hotel’s General Manager Wentzel Holtzhausen says the ultra-modern and new-look Majestic Hotel will include among other things, a 168-key 5-star ho-tel with its own fitness centre and 25m outdoor pool, an international-standard, multi-purpose convention centre, a new smoking cigar lounge, horse shoe bar and grill restaurant and a pool bar with a convention centre and hotel and the

largest musical extravaganza Botswana has ever seen. Majestic was built for the people of Bo-tswana to experience ultimate luxury and comfort. The hotel will put more emphasis on services in everything.

He also added that the hotel will make a significant contribution to job creation and income generation in Palapye.

"During the 26 month construction phase, more than 5 000 direct and indi-rect jobs were created and sustained," he said.

by Keeletsang DiphekoHotel design plays a crucial role in the hotel business. The architect of a build-ing can be used to create a statement that will draw the attention of a customer, thus selection of a proper architect for any project can make it different from the rest. Moreover, the design and layout of a hotel create

a certain perception in a guest’s stay.

Situated in the heart of the Central Business District (CBD), the newly built Lansmore Masa Square Hotel is proof. Designed as ideal for a modern lifestyle, the hotel is built around a central piazza with two towers as the eye-catching cornerstones of the development.

The first tower is an office block with high end shops on the ground, whilst the other houses Lansmore hotel featuring a non-affiliated casino. In the middle, a beauti-fully designed piazza stands with three restaurants.

The five star hotel will comprise of 153 rooms, a con-ference centre, an extensive gymnasium and a roof top swimming pool from where guests can enjoy the spec-tacular sunsets among others.

Lonrho Coming To The CBDby Esther Amogelang / Images © Lonrho

The furniture used in the hotel is well chosen and mixed perfectly and is imported from different countries espe-cially from were other Lonrho hotels are. The colour, tex-ture and adventurous interiors combine well to enhance the environment and set the mood.

The hotel is built as a square in order for customers to ul-timately work, shop as well as play and stay in the centre of Gaborone. Aiming to exceed the expectation of each traveller, the hotel provides high quality service, an array of business, friendly features and comfort.

Parliament Passes Bill To Abolish VAT On Property For First Time Buyers

When responding to the 2012/13 fi-nancial year, the Leader of opposition, Hon Botsalo Ntuane expressed his con-cern on the expensive house market in Botswana. He says they have gone on record proposing that another national conversation is due on laws that permit ownership of land by foreigners.

“We are concerned by the emergence of foreign owned syndicates that own land and sell it to other foreigners at prohibi-tive rates, far beyond market prices, and meant to sideline Batswana. We once again propose an audit of land currently owned by foreigners,” said Ntuane. Ntuane also calls on government to exempt first time home buyers/own-ers from VAT. This will encourage young professionals to invest in home owner-ship and climb up the housing ladder as opposed to consumptive spending on depreciating, short term assets such as motor vehicles.

Subsequent to this the Gaborone Central Member of Parliament, Dumelang Sale-shando, tabled the same motion in parlia-ment on elimination of VAT for first time homebuyers as a way of promoting home ownership in Botswana.

“The reason for bringing this motion is that the cost of home ownership is high. It is prohibitive. The more expensive the house, the more tax you are going to pay. The low cost BHC (Botswana Housing Corporation) house is P500, 000. You need to be earning a salary not lower than P14, 000 per month in order to qualify. Even an MP cannot afford

to purchase a BHC flat selling at P700, 000,” said Saleshando.

Housing is a basic need and a hu-man right, though unexpectedly some Batswana are selling their plots out of frustration mainly because they do not have the means to develop them. Sale-shando said other countries have intro-duced tax incentives for financial insti-tutions that invest in home ownership.

Among others Assistant Minister of Trade and Industry, Mr. Vincent Seretse has supported the motion presented by Mr. Saleshando.

“What we see today is that there are few houses and many players. When there are many players the price goes up. We should encourage the minister responsible for land development to speed up the pace of land servicing, not only in towns, but also in villages. That will go a long way in assisting to increase housing units,” says Seretse.

Mr. Seretse says something must be done as the prices of housing units would not be affordable for most Batswana.

Kgatleng East MP, Mr. Isaac Mabiletsa said government must look into serious challenges of home ownership such as skyrocketing unit prices, value of units and markets trends. He said commer-cial banks offer high interest rates to customers referred to as risk customers because of their unreliable sources of income as that could incapacitate the banks were they to cover the potential loss they incur from such customers.

Finally the motion has been approved and more Batswana are expected to own property despite the fact that there is still a challenge of salary hike which might hinder an increase in home ownership.

According to the General Manager, Jonathan Patterson, the hotel will open next month and will address the issue of unemployment in the city as well as bring life to Ga-borone. Patterson said so far they have identified about seventy people, and hoping to employ more than 150 when the hotel opens. “Recruiting is slow because we look at the best emphasis on talent and service by going beyond expectation,” he said. He further added that the difference between them and Holiday Inn which is also coming to the CBD, is that they (HI) are a four star hotel whilst them (Lonrho) are a five star hotel. Patterson was easy to applaud and praise Botswana in general, saying he was impressed by so many opportunities the first time he set his feet here. The spirit here, he said, is very posi-tive; something which makes him believe the decision to bring Lonrho here is the best thing. He also added that they are represented in 16 countries and so far they have three established hotels in Zimbabwe, Mozambique and Democratic Republic of Congo (DRC).

An innovation can be big or small. Real Innovation does not happen randomly or at irregular intervals within organiza-tions. Real Innovation is accomplished consistently and systematically, given the true voice of the customer and a process for delivering solutions.

Companies that innovate successfully do so using an efficient and repeatable methodology. However success emerg-es from the disciplined application of a proven innovation methodology. In an

effort to accomplish this, Botswana In-novation Hub is launching the Southern African Innovation Support (SAIS) pro-gramme. The programme is sponsored by the Finnish Ministry of Foreign Af-fairs.

The opening of SAIS Botswana is meant to enhance innovation in the four par-ticipating countries namely Botswana, Zambia, Namibia and Mozambique. Specifically the programme seeks to strengthen collaboration, networks and

BIH To Launch Southern Afri-can Innovation Support [SAIS]by Keeletsang Dipheko

capacity of innovation in the four par-ticipating countries. The official launch was held on the 28th February 2012 at Botswana Technology Centre premises.

The Minister of Infrastructure Science and Technology Honourable Johnnie Swartz officiated at the event.

Hotel Cardoso - Maputo, Mozambique(Image Source: www.lonrho.com)

Leopard Rock Hotel & Championship Golf Course - Zimbabwe(Image Source: www.lonrhohotels.com)

Jonathan PattersonGeneral Manager

Libreville Hotel - Gabon(Image Source: www.lonrhohotels.com)


Regional / International News

Tragedy Of The New Au Headquartersby Chika Ezeanya / Source: pambazuka.org

bedZED, London, England (image source: en.wikipedia.org)

On the 28 January 2012, African countries will collective-ly descend to a new low on the global index of state sov-ereignty, territorial integrity and actual independence of nations. On that day, Chinese President Hu Jintao will be in Addis Ababa, Ethiopia, to commission the new $124 million African Union headquarters built and donated to the continent by China. Termed ‘China’s gift to Africa’, the edifice was constructed by the China State Construc-tion Engineering Corporation with over 90 percent Chi-nese labour.

It is to the discredit of the African Union – and therefore to every individual and country within that regional body – that in 2012 a building as symbolic as the African Union headquarters is designed, built and maintained by a for-eign country, it does not matter which.

The ancient and modern history of donation of build-ings and structures from one nation to another is filled with intrigues and subterfuges, conquests, diplomatic scheming, espionage and counter-espionage, economic manipulations, political statements and dominations. The construction of the Trojan horse by Odysseus and its ‘donation’ resulted in the Greek conquest of the ancient city of Troy after 10 years of unending skirmish.

In building the Basilica in Rome – termed the ‘greatest of all churches of Christendom’, contributions from the faithful were emphasized rather than donations from friendly nations. Even the gift of the Liberty Statue from France to the United States on the occasion of the latter’s independence was a joint effort, whereby over 120,000 Americans led by Joseph Pulitzer contributed funds for the construction of the pedestal in 1885.

In a rare glimpse into the matter, the book ‘Architecture of Diplomacy’, Jane C. Loeffler reveals the underlying diplomatic maneuverings and political ramifications that define the construction of American embassies all over the world. The author states that building an embassy requires ‘as much diplomacy as design.’ Loeffler enumer-

ates factors seriously considered in the construction of an American embassy building and they include ‘world politics, American agendas, architectural politics, cultur-al considerations, security’ and several others.

Common sense dictates that in an era of increasing ex-ploitation of Africa’s natural resources by foreign pow-ers including China, the African Union, rather than the apparent submission signified by acceptance of the con-struction of its headquarters by China, should be an or-ganisation advocating for fairness in the relationship that exists between the continent and the global powers.

Should security considerations be included, then the question arises as to how African heads of state and government could hold confidential meetings in a build-ing they have no idea how it was wired. What guarantee do African governments have that every word uttered in the new headquarters in Addis Ababa is not heard in Beijing? What evidence negates the suspicion that all activities in the just completed building are not replayed on a large screen in Beijing as Chinese secret service agents watch?

South Africa To Invest In Infrastructure Develop-ment: Budget Speech 2012

Overview of the South Africa Budget Speech 2012……addressing the challenges of cre-ating jobs, reducing poverty, build-ing infrastructure and expanding our economy.

Funding of infrastructureThe Presidential Infrastructure Coordi-nating Commission has made consid-erable progress in identifying projects and clarifying long-term investment plans to drive economic change.

The Budget Review lists 43 major in-

frastructure projects, adding up to R3.2 trillion in expenditure. Over the MTEF period ahead, approved and budgeted infrastructure plans amount to R845 billion, of which just under R300 billion is in the energy sector and R262 billion in transport and lo-gistics projects.

Infrastructure implementationWe are aware of several weaknesses in the state's infrastructure capac-ity. In the past, spending has lagged behind plans. Our estimate is that in 2010/11, R178 billion was spent out of a planned R260 billion, or just 68 per cent. We have to do better than that - state enterprises, municipalities and government departments all need to improve their planning and manage-ment of capital projects.

www.sacommercialpropnews.co.za

by Boidus Admin / Source: www.sacommercialpropnews.co.za

Official Launch of Envirogrower Botswana at Gaborone International Convention Centre (G.I.C.C). The event was graced by many among them, CEDA Chief Executive Officer Thabo Tha-mane, Former Botswana President, Sir Ketumile Masire, Envirogrower President, Mr Andrew Grasby and many more.

Envirogrower Official Launch-GICC

ADVE

RTO

RIAL

Sir K. Masire and Minister Masisi

Mr Peters G.B Peters, Country Manager

Envirogrower President, Mr Andrew Grasby


Editorials

Population growth as the driver of changeExperts world-wide agree that, at the current population of approximately 7 billion, and increasing at a rate of 75 – 90 million per year, the world’s popu-lation is exploding and will continue to balloon, even with reduced fertility and steady death rates, until it reaches an estimated 9.5 billion by around 2050. This phenomenon, according to some of the ecologists and environmental experts, will continue to manifest itself unabated until the biophysical capac-ity of the environment, corresponding to sustainable levels of resource con-sumption, is exceeded. At which point a catastrophic level of decline in the world’s population, due to a range of environmental factors, is expected to occur leading to shrinkage in the world population to a level possibly lower than the current figure. It is a phenom-enon ecologists call “Overshoot” and a frightening prediction which implies that your grandchildren and mine as well as young people below the age of 20 will, within the next forty years or so, witness or directly experience unprec-

edented hunger, malnutrition, disease and death, regardless of them being from a relatively wealthy family or be-ing better off, at present, than citizens of other African countries. Statistical data indicates that whereas this might seem distant, the world is approaching Overshoot exponentially, meaning that environmental degradation and its ef-fects on humanity are increasing rapidly with time. Shortage of food and potable water, increase in food prices, competi-tion for a wide range of resources, eco-logical damage are becoming more and more acute.

A number of experts think that the world is already experiencing Over-shoot, amongst them the renowned but much criticized Paul Ehrlich who made a failed prediction about India’s food crisis and the catastrophic death rates

from widespread hunger in that coun-try that he predicted would occur in the early 1970’s. It is, however, evident that India escaped the crisis due to the increased food production during the Green Revolution that was driven by energy from fossil fuels, in particular oil which is now reaching peak production amidst the frantic rush for its replace-ment. On the other hand, whilst India escaped the prediction that never came to pass, it is clear that, generally, poor communities around the world are ex-periencing terrible hunger, and millions have died and continue to die from star-vation and malnutrition, thus, perhaps, validating the theory on Overshoot and Limits to Growth.

Experts also talk of “New Centres of Population Growth” within developing countries, which are unprecedented in size and growth rates. Human popula-tion in Russia, Europe and elsewhere within developed countries, may be de-clining but it is exploding in developing countries which now account for 75% of the world population (65% of which is in cities) but consume only 25% of the

Sustainable Cities, Population Distribution And The Means Of Produc-tion And Trade: Democracy, Self-Determination And Architecture.

trade, within the new centres of popula-tion growth, and in the manner in which it is dominated by Government, State Owned Enterprises and big business, will combine to take the world danger-ously close to the limits of sustainability. The latter school of thought, to which the writer subscribes, argues and pre-dicts that without population control, and given that population seems des-tined to reach catastrophic levels, de-mocracy faces certain death for as long as it continues to promote monopoly of the means of production and trade and, therefore, impacting negatively on resource consumption, production and environmental capacity - the capacity, amongst others, to produce optimally and cost-effectively. Inherent in this condition, it is argued, is that the role of participatory democracy will necessarily decline. Amidst so many people, politi-cians cannot, even if they desire, consult the majority except only a select few with vested interest and bad influence, particularly large corporate entities. The position of conflict of interest in which the capitalist model of governance finds itself and the inherent failure to devolve powers to communities is, ironically, its own demise.

Much as one should agree with this analysis, the pressure on institutions of governance to positively transform, and for Africa to become a viable test-bed and ultimately a beacon of the new and sustainable socio-economic order for the world to emulate, is real. It is para-doxical but an opportunity that comes with the shift in centres of growth - the possibility of prosperity, in a seem-ingly desperate situation, to be derived through radical change in governance, and a bitter pill to swallow, however.

In his article, “Population, the Elephant in the Room”, Paul Chefurka, argues, like many others, that there has been a close correlation between population growth and the world production of oil in the 20th and 21st century. It is now com-monly realized that oil is a commodity which has over the years become very deeply and extensively embedded with-in the means of production – mecha-nized food production, agrochemicals, primary fuel for various modes of trans-port, etc. Apart from its pollution of the environment, it is a commodity which is highly monopolized in terms of its ex-traction, processing and marketing. It is manipulated in value, resulting in a sup-pressed and distorted environmental carrying capacity, not by accident but by design.

Paul Ehrlich, on the other hand, indi-cates in one of his many publications that “Maximum Sustainable Use” and hence Biophysical Carrying Capacity can be increased through human activ-ity and that “the extraction of resources is generally managed not at the global spatial scale but at the local and re-gional levels”. It is evident from his ob-servation that for sustainability to occur, communities within the new centres of population growth must be empowered at the local level and accorded direct access to and the use of technology to avoid or delay Overshoot. At the core of the concept of sustainable cities is, therefore, the question of community

world’s energy and other resources. Thus experts shudder to imagine a situ-ation where poor nations were to adopt consumption patterns of the west and the implications for resource extraction, utilization and the environment.

It is not just about population growth due to higher birth rates (more than 4 per second) in these regions, but equal-ly importantly about a condition of pop-ulation migration, which has no respect for borders, that is manifesting itself within parts of the world which, unfor-tunately, lack the means to avert the catastrophe. The warning sign in Africa is the rate of growth of cities like Gabo-rone in Botswana, which is significantly driven by an unstoppable and growing net foreign migration rate, possibly at about 10 per 1000 population, from mi-grant populations looking for economic opportunity and prospects for survival which are non-existent in their own re-gion. Gaborone, like other cities in the developing world, is rapidly becoming cosmopolitan and highly congested. Its new inhabitants are flowing in, day and night, from all walks of life, and its sphere of influence (metropolis), within a radius of 70 kilometres, now impacts on more than a quarter of the country’s population; a condition which goes far beyond the scope any single and cur-rent development programme for the area and all of them put together. Sim-ply put, the Botswana Government, like many others, cannot and will not cope with an emerging world-wide urban cri-sis; a threat to the current and orthodox form of governance.

Democracy, consumption and control of the means of production and tradeThe issue of inequality in the consump-tion of the world resources and envi-ronmental impact is receiving more attention than ever before. Ecologists and environmentalists have concluded that, given the emerging population distribution, the world cannot afford a situation where developing countries adopt a winner-takes-all attitude, con-sumption levels and patterns prevalent in developed countries. A potentially controversial and difficult question is whether or not there should be ceil-ings for consumption by the rich, e.g. maximum water and energy usage per head per period. The right to consume must also come with the commensurate share of the responsibility to produce, not just purchasing power! The debate on sustainability has also embraced the question of whether or not democratic institutions and governance, at the lo-cal, regional and global level, will avail and facilitate the equitable exploitation of opportunities and resources, chief amongst them food and access to fresh water, failing which there will be car-nage, war, corruption, hunger and mal-nutrition, and consequently widespread disease and death, and of course the collapse of governance systems.

Whilst one school of thought dismisses as a myth the argument that population growth presents a serious sustainability problem and even promotes the idea that hunger can be eliminated through technology as claimed to have hap-pened for the so called free countries, the other believes that technology and

Going GREEN with Go itsemodimo Manowe


Editorials

by Jan Wareus, Architect / Town Planner

I must start by welcome Mr G S Manowe (GSM) to Boidus and his column “Going Green”.

I felt a bit uneasy with the thought that I had to go into “the Green Fields”, as I have difficulties to differ from wizard-ism and plain-talk pragmatism. But I’m sure that GSM doesn’t have this problem, being a senior architect with many years experience.

As he mentioned in his writing in the February issue, 40 % of the world’s total energy demand and close to 70 % of the total electricity consumption goes to the building sector, as well as 65 % of the worlds waste.

These are figures that should make us in the architectural and planning fields a bit uneasy, to say the least. The situ-ation is precarious:

We all in the development professions have without much intelligence (but there have been warnings), been picking the easy reach, low hanging fruits for more than two centu-ries of industrialization. And, gee, what a boom – for a few! But now we have to face a situation when the fruits are not so easy to reach and we have to pay a price we never considered before. That’s the energy or peak oil bubble. There is still energy/oil there but to a price we never could imagine (if we didn’t read the warnings). If we are careful in the use of the remaining resources, we might have time to adjust peacefully. But time is slipping and soon it’s too late to adjust in some kind of order. In principle, that’s what I have been saying so far in my Boidus columns.

We here in Botswana have, in my opinion, a quite unique situation. Most of our building material used today is im-ported and we must pay heavily for transportation. So it has been for many years and no one has said with empha-sis – BOTSWANA MUST SECURE A PRODUCTION OF BUILD-ING MATERIALS OF ITS OWN!

We have all the needed resources and hopefully an energy situation that other countries will envy (based on our own recourses, too). The problem, as far as I can see, is that we have not created a local and modern self-sufficient building tradition – we are thoughtlessly copying the so called de-veloped countries that are soon in the gutter. Sky-scrapers, glass, aluminium, steel and more of highly embodied en-ergy stuff, as I indicated in a previous blog, are the theme of the day – imitating the western model.

Consequently, I think we architects and town planners have to study design and building against the situation of less energy abundance.

And how to handle such a situation of “less abundance” was the reason for me to mention Alvar Aalto and the situ-ation in Finland after WW2. Amazing what kind of art can come out from such conditions, isn’t it?

I guess there is more to say about Alvar Aalto - interviewed, he was always sparing his words – the quiet creator of art that talked its own language! However, in an inspired situ-ation, he spoke. For instance –

“Architecture has often in these days been compared to science and its methods have been endeavoured to be-come more “scientific”. Even to become a science by itself by including more of complex mathematics. But it is no sci-ence – it is a synthetic process, a conglomeration of thou-sands of important human functions and will be so to the end of humans” (Nov 1940).

Further – “If architecture will have a deeper human value, it must primarily sort out the economical side of it” – and this gives me a point in this discussion.

This “economical side of it” is changing rapidly just now. All imported goods, are excessively expensive due to escalat-ing transport costs. This is not a good basis for a sustain-able construction industry in Botswana.

As we have most of the needed raw materials available,

and soon a self sufficient power/electricity production, we have to localize the production of building materials. And use less of high embodied energy materials – more of tra-ditional building materials.

It was interesting to read Mokwete’s presentation of his project in Maitengwe in the latest issue of Boidus Focus, although I don’t think that vernacular design is the only concept for the future. But the project clearly shows that simple, traditional materials still are in use and there are skilled builders that can handle them, still.

The Maitengwe project also indicates that traditional thatching grass still is available and will guarantee a healthy indoor climate. But it is a material that is hard to find to de-cent prices these days as it must be collected from nature.

Now I happen to know that thatching grass can be com-mercially grown and harvested like in SA and we currently have to buy our thatch from there to a high price. But this is not necessary. A few hundred small farmers here could plant and grow it and provide for a growing market here. Maybe, we should start with some small project like Mait-engwe and then go on with more substantial, long lasting and reusable building materials?

But there is obviously a long way to go for the use of tradi-tional materials and constructions. To me, it looks like the regulations we have are deliberately cutting out the use of traditional materials, today. I need help from practis-ing architects and designers to clear this issue – please, let me know the situation with all kinds of examples you can pinpoint!

I know that the Lobatse Clay Works haven’t become a suc-cess – but I haven’t seen the reasons why, yet. A thorough analysis of this project must be made – maybe it needed some kind of protected market as most of industrial proj-ects in smaller countries need. But this is nowadays to-tally ignored by the neo-liberal economy preached by IMT, World Bank and other Washington Consensus organisa-tions. As if the protected market wasn’t the prerogative for western development, once upon a time!

There are many aspects to discuss on this issue of “secur-ing a production of our own” and I will be back on these aspects in later blogs.

To conclude this one, I will be quoting Ralph Erskine from his lecture at the Royal Society of Arts in 1982:

“Energy is a valuable but not inexhaustible and often much polluting resource. Buildings consequently must be simple and well insulated in both hot and cold climates. The size of windows must be restricted. Glass architecture, often considered to be beautiful, must be regarded as a symbol for a naive, lavish and irresponsible culture. A new and well thought-out, responsible architecture must be worked out.”

And this has very much to do with “Going Green”, I assume.

May I suggest that Boidus Focus put a small sum into the printing of a car-sticker for me and my friends? If you read this, you know what it should say!

As it has been noted by some readers, my “homepage” on the Web isn’t known to all of you. If you google <janwa-reus.blogspot.com> you find the start of it with some es-says on Sowa Town (now close to a 20 year celebration) and background to this project. More will come if the Web server functions more than every second day and the pow-er cuts will be for more places than Gabane, just.

participation in the planning and devel-opment of urban habitats and neigh-bourhoods (urban ecosystems) rather than the all too fashionable top-down but ineffective stakeholder consulta-tion and approach. A paradigm shift but nevertheless a sensitive and potentially problematic issue, in long run, about the degree of self-determination by in-dividuals and communities measured against the interests of big business and power of government over its people, whether in a democratic, socialist or even a communist context. The means of production and trade must, in other words, shift substantially into the hands of and, therefore, control by communi-ties and less so by government, state-owned enterprises, influential corpo-rate entities or big business.

Production, trade, sustainability and architectureAs a key aspect of sustainability and a priority in the built environment in de-veloping countries, Africa in particular, is the degree to which human settlements (new and existing, and especially in ur-ban areas) can be structured to actively support and integrate food production and the supply of basic commodities through alternative energy, and in a manner that shifts the bulk of social ca-pacity towards sustainable levels of re-source consumption. It is, in this regard, held by sustainability experts, that such shift must move closer to subsistence levels. The built fabric must, therefore, become a setting for food production and basic commodities necessary for human survival, more-so in recognition of increasing land shortages the world over.

In the context of sustainability and hu-man settlements, the example of the Botswana Government’s idea of tack-ling poverty and the Economic Diversi-fication Drive which focuses not only on mega projects but on the economic em-powerment of a people at community and neighbourhood level, based on the urban backyard garden concept, is con-ceptually spot-on. Questions remain, however, about governance, planning and implementation, an area which the country, like many others, has become increasingly challenged over the years. It is, however, unfortunate as it ap-pears that some of the politicians and planners conceive of “backyard garden-ing” using a hoe and a hose-pipe, and have thus attempted to shoot it down. Whereas informed technocrats, and in the context of sustainable develop-ment, understand it to mean roof-top gardens, solar-thermal water walls to promote energy efficiency and inde-pendence whilst at the same time in-tegrating hydroponics and aquaculture through treated and recycled domestic waste - water systems that are driven by solar-voltaic and solar-thermal energy, and as technologies that are scalable for direct access, use and benefit to poor communities and households.

It is the scalability of the technology that allows the independence of the built fabric from the public utility net-work, i.e. power, sewer and indeed potable water supply. It is about the

freedom of households and communi-ties from the bondage of local govern-ment and utility corporations: the true essence of sustainability. In this model, and the direction in which sustainability is driving, centralization, state control of utilities and corporate monopoly of resources are fast becoming irrelevant and untenable.

The concept must necessarily be ex-trapolated, in detail, to impact on gov-ernance; a key factor of sustainability. Sustainable urban communities must be regarded as cities in their own right (cities within cities) which are fully rec-ognized in terms of their capacity to plan and implement projects and pro-grammes, and in terms of their poten-tial as new sources and management of public revenue, community assets, partnerships between stakeholders in those communities, public dialogue, ownership and strategies for more ef-ficient, cost-effective and integrated re-source utilization. It is those attributes that will lead to stable residential neigh-bourhoods, affordable housing planned and delivered according to the choices and priorities of the individual house-holds as opposed to standard housing by a state-owned- enterprise. It is the communities that must develop, sanc-tion the plans and strategies to be em-ployed to infuse public and private sec-tor investment and how such strategies should become complimentary to their own resources and efforts, and not vice-versa. Cities must, therefore, be planned around people, by the people and not for people to come to them! This calls for changes in mindsets, new approach and tremendous courage within central and local government to devolve pow-er, reshape the bye-laws and planning codes which are simply outdated and in conflict with and impede the develop-ment of sustainable urban eco-systems.

Sustainable cities and the problem of population growth are, therefore, about a change in the world order and a new way of life!

Sources and important references: • Population, the Elephant in the

Room: by Paul Cherfuka.• Democracy Cannot Survive Over-

population: by Albert Bartlett.• Population, Sustainability and

Earth’s Carrying Capacity: by Paul R Ehrlich and Gretchen C Daily.

• Solar Power: The Evolution of Sus-tainable Architecture: by Sophia and Stefan Behling

• Water- The New Carbon: by Mary Haw, PJC Consulting South Africa (presentation at the 2009 GBCSA Convention)

© Copyright reserved: Goitsemodimo S Manowe, August 2011:

Whilst this article draws significantly from the quoted references and other publica-tions in terms of the correlations between population growth, sustainability and democracy, The link between population growth, control of the means of production and trade, democracy/governance and sus-tainable architecture incorporating biomass production as a means of survival and new meaning to architecture and a point of de-parture for Africa, is the writer’s own analy-sis and hypothesis. The content of the article can be quoted provided that the author is acknowledged in that regard.

This article serves as a summary of ongoing research and is, therefore, subject to con-tinual improvements and amendments by the author.

Façade integrated hydroponic food production system used as a solar control device: Green Market, UAE.

Botswana Must Secure A Produc-tion Of Building Materials Of Its Own

Maitengwe House, Design by YEM


Buildings

The story of Masa Centre, the imposing development at the heart of Gaborone’s CBD is about to be complete. The multi-million Pula project by a joint venture between RDC Properties Limited (The Botswana Stock Exchange listed prop-erty company) and 100% citizen in-vestment companies (Lavica (Pty) Ltd., Shakawe (Pty) Ltd., Keboife Holdings (Pty) Ltd.) will soon open its doors to the City travellers.

Brand NamesThis land mark multi use development, a first of its kind in Botswana, brings to Gaborone among others, the world-known Holiday Inn Brand, Lonrho Hotel Group and a 3D cinema among others. We recently sat with the Masa Centre Project Manager, Gian Carlo Fareri and he said the Centre will offer:

“From an exceptional 5 start hotel, ex-clusive beauty salon, high fashion ladies and gents wear, luxury watches store to stores to fill business needs, the list is endless. And we haven’t even men-tioned the selection of restaurants, the wide open piazza and the incredible ambiance that this development offers. What can be said is that MASA Centre will offer a completely new experience for Gaborone – it will become the aspi-rational place to be seen.”

The centre has reached its final comple-tion with the only construction team on site to leave the site by end of Febru-ary, thus leaving only professionals to inspect. Once this has been completed, a ceremonial official opening will take place in mid-April and the theme of the event will come as a surprise.

ChallengesThe journey has not been without its challenges. Construction of this devel-opment started way back in 2009 at a proposed budget of P320 million and eventually finished within budget at P290 million.

When asked if the project was on time and on budget Masa Centre Project Manager, Gian Carlo Fareri, said the anticipated cost has been controlled by project management and the construc-tion team resulting in higher returns on investment than originally anticipated. He, however, said the construction cost of the building as estimated is well be-low the original tendered price.

Nevertheless, Carlo said the opening dates of the centre are not yet finalized due to the complexities of shipping. These, he said, result from some ten-ants, in accordance with their franchise agreement, waiting for shop fittings to arrive from Europe. The centre will therefore open without fanfare until all stores are open and trading.

The project, he said, has always been exciting and constantly challenged the centre’s resources. He, however, admit-ted that like any other multi usage proj-ect, construction is always a challenge. Delays were multi faceted, from plan approvals, tenant variations, additions to the original scope of works and ten-ant confirmation. In spite of those chal-lenges, the centre is still going to bring a sophisticated new multi-faceted cen-tre which will benefit both the tenants, stakeholders, developers and foremost, the population of Botswana.

“It is expected to employ among others close to 1900 people when complete,” he said.

Unique experience and service With international brands always com-ing with challenges, Masa unlike them, was set with a unique base, with less or no challenges at all. According to Carlo, the developers and directors, who have over many years operated in Botswana, always sought to challenge the norm. Sourcing, securing and locating this ho-tel was one of the goals and was met head on with deliberation and determi-nation. The quality and prime location of the project ensured the interest of many operators.

Carlo said, unlike the already estab-lished hotels in Gaborone, Masa will bring a highly trained team, highly so-phisticated meeting facilities, differ-

ent function venues, a great awesome accommodation ranging from normal rooms to large and very large suites – a winning combination when viewed with the rest of the offerings of the Masa centre.

by Esther Amogelang

Minister Makgato-Malesu Shown Around The Completed Masa Centre Development [CBD]

Meanwhile, RDC Properties is working on a number of projects that are all at infant stage, both in Botswana and other African continents.

The architecture of Masa Centre The consulting team is made out of Architects (Arctez (Pty) Ltd), Structural and Civil Engineers (ADA Consulting Engineers), AR Edwards & Associates (Electrical and Mechanical Consul-tants), Interior Decorators (Blacksmith Interior design), Landscape Archi-tects (VMO (Pty) Ltd). The construc-tion team is under the responsibility of Italtswana Construction Company (Pty) Ltd.

“For the first time, a guest will be able to enjoy, close to his accommodation a range of entertainment facilities, ranging from the 3D cinema to the bou-tiques and different sorts of restaurants, “he added.

Masa Centre Entrance lobby and Lifts access with view to the courtyard

Masa Centre Bar-Restaurant and Lounge area; Full of colour and character

Masa Centre Hotel bedrooms

Masa Centre Hotel bedrooms

2

3

1

Masa Centre Ground Floor Plan1. Porte Cochere2. Courtyard3. Garden

Minister of Trade and Industry Makgato-Malesu (Centre) being shown around Masa Centre by Gian Carlo Fareri (left) and Guido Giachetti (right)

We believe we managed to fully integrate the clients need within the plot and buildings to enable the developers to realise commercial returns.


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BF: As one of the key visionaries of the design of Masa Centre we would like for you to share with our readers your experi-ences through the realization of this ambitious project. • Could you please tell us the vision behind the design

of Masa Centre?• Please also share with our readers any influences

that this project drew from.

AA: Concepts-Design brief: A building conforming to the vision of making the entire CBD the heart of the city and a focal regional centre in terms of commerce and busi-nesses. As a result, we elicited an integrated design com-prising a Hotel, Casino, retail shops, cinemas and offices and putting all these functions in such a way that they functioned effectively without disrupting others.

Image-Iconic building: The building was designed with two separate multi storey towers. This resulted in a natu-ral buffer separating the Hotel from the commercial of-fices. Noisier activities like Retail shops and restaurants were located on the ground floor with the high tech cin-ema in the basement.

The development features many firsts for Botswana in the new CBD including the first five star Lonrho Group of Hotels-(Lausmore Five Star Hotel )franchise in the coun-try, with a 3rd floor swimming pool, , first 3D cinema ex-perience in Botswana (with 5 in total in the basement) and an internal piazza with waterfall features.

Influences-Green techniques have been taken into con-sideration include; large recessed window to shade from direct heat whilst providing maximum daylight and fresh air ventilation, solar guard glazed specified for windows as they filter heat whilst providing natural light thus re-ducing cooling costs, use of concrete due to its durability, low maintenance and exceptional thermal properties, lighter colours on the façade to reduce heat absorption coupled with roof gardens to minimize heat island effect, water recycling technologies within the development and mechanical and plumbing fixtures configured to-wards water conservation.

We believe we managed to fully integrate the clients need within the plot and buildings to enable the devel-opers to realise commercial returns.

BF: Share with our readers the challenges you faced dur-ing the development of this landmark building.

• High water table encountered in the foundation and basement parking

• Major delays originating from a long and complicated consultation process in hotel amenities provisions, from the previous hotel tenants, where approvals had to go through 3 separate international offices before a decision was forthcoming.

Arctez- Design Of Masa Centre Called For Integrated Approach by Esther Amogelang / Images © Arctez

PROFESSIONAL TEAM:Client: THRE PARTNERS RESORTSProject Managers: Property and Asset Management (PAM)Architects: Arctez Quantity surveyors: GAAM AssociatesCivil-Structural engineers: ADA Consulting Engineers

Mechanical-electrical engineers: A R EdwardsInterior designer: BLACKSMITH interiorsContractor: ICCLandscape contractors: VOM

ARCHITECTS INVOLVED:SERGIO MUCHENGWA - Principal Design Architect SAMUEL CHILOMBO - Resident Architect

BF: Arctez, as a private company, with big profile in Bo-tswana, how do you view current issues surrounding lack of professionalism, poor delivery of projects in Botswana?

AA: We believe Use of Professional Construction Project Managers would benefit major building projects as they are specialists with experience to deliver projects on time and budget and thereby eliminating Project failures.

Government also is taking steps to audit projects through its select audit committees to review ongoing projects. Their services should be extended to projects before they take off the ground.

BF: Minister Mathambo recently announced the freezing of construction projects on his budget speech for 2012. How will this affect the construction industry?

AA: Historically government has been the dominant driv-ing force in the construction industry. With the freeze, smaller construction companies will close office and the architectural industry will be faced by steeper competi-tion based on price for available jobs.

We await the architectural regulation policy that will reg-ulate the architectural practice and professionalise the industry and eliminate unproductive price wars in the long term. In the short term, consultancy firms may con-solidate resources to survive the freeze and or venture out regionally and internationally for contracts.

2005 - Initial Concept Design

2007 - Revised Color Scheme

2007 - Scheme [Birds-eye view]

2011 - Completed Building


Feature Analysis

AND REACH YOUR CUSTOMERS

ADVERTISE YOUR PRODUCTS HERE

Construction Industry Outlook 2012 Review and Budget Response by Professional Bodies / Boidus talks with AAB, ABCON, BIE, CRSGArchitects Need to Formally Adopt an Anti-Corruption Code of Prac-tice in efforts to fight corruption in the Construction Industry Mr. Jode Anderson, Architects Association of Botswana (AAB) President

BF: We are in 2012, industries are looking to re-main active in the market amid effects of global recession. As one of the professional body rep-resenting architecture in the industry can you share with us how you see 2012 being in the construction industry?

JA: The signs are not promising as things cur-rently stand. The Minister of Finance warned that Batswana would need to tighten their belts yet more, so it seems unlikely that central gov-ernment will take on much in the way of new building works. Further, there will soon be an oversupply of both shopping malls and office blocks once the current crop of projects are completed, so things look similarly uncertain within the private sector.

BF: The 2012/2013 Budget speech has been re-leased recently and it continued austerity mea-sures of 2011/2012, especially with the contin-ued freeze of both new government projects and employment. BOCCIM was lately quoted as in favour of an industry bailout fund. Do you think a construction industry bailout fund is needed?

JA: We were part of the team drafting the stimulus package proposal, and we do think that it could provide some support to the in-dustry, which would help us retain professional and trades skills within Botswana. However we have yet to see any positive movement from government regarding the BOCCIM proposals.

BF: The Minister of Infrastructure Science and Technology (MIST), J. Swartz has on many oc-casions been on record saying the construction Industry is riddled with corruption, In fact HE, The President noted in his 2011 State of The Na-tion address that millions of Pula’s of govern-ment money was being defrauded by contrac-tors. What are your comments on the issues of corruption in the industry? How are you as con-tractors affected by these issues in the industry?

JA: We are affected insofar as we must remain vigilant for signs of corruption on our projects. Also the current focus on corruption tends to make it yet more difficult for public officers to make decisions, which in the final analysis re-sults in increased project costs because of late instructions. And it is an unfortunate fact that we Batswana have a tendency to immediately cry ‘corruption’ whenever we encounter an

outcome or decision that does not favour us.

BF: How can private sector contribute to curb these negative activities in the industry?

JA: There are several things that we profession-al architects can do: firstly, we need to formally adopt an anti-corruption code of practice (such as that published by BOCCIM, which is available on their website) within our firms. That adop-tion should see our firms formally announce their compliance with the code, and should also include having each of our employees formally confirm under their signature that they support the code and will ensure that they abide by it in their work. We should also publicly discuss corruption more than we currently do. You are aware that Transparency International lists the construction sector as one of the MOST corrupt industries world-wide, and of course Botswana hasn’t fully escaped this curse. I suggest that we need to show examples of corruption with-in this industry in order to help both the public and ourselves in recognising risky behaviour.

BF: There are some very serious challenges fac-ing the construction industry that are motivat-ing new approaches to how we design, build, operate, and maintain buildings as well as in-frastructure. What is the role of professionals like your association members in helping diver-sify the economy?

JA: I suggest that we professionals could play a more pivotal role with regard to the evolution of the construction sector. Architects are trained to develop their analytical skills, which we must ap-ply in our work every day. Those skills could be well used in deconstructing how social trends impact on how we live (and hence on how we build). However we need to recognise that we face a culture of rent-seeking within our region that makes it very difficult for our clients (Batswa-na and foreign alike) to entertain any interven-tions that result in a longer pay-back period on construction investment. We can only hope that issues of resource scarcity will force our society to confront our narrow short-term view.

BF: How can contractors improve their educa-tion and productivity to remain competitive?

JA: Perhaps the first step in improving a con-tractor’s productivity is working to improve how our society views craftsmanship. Although most of us can recognise good workmanship when we see it, we are often unwilling to pay a wage that such workmanship reasonably costs. Such an attitude makes it very difficult for us to respect a tradesman – generally we respect wealth, and construction tradesmen are NOT wealthy. So we need to encourage our fellow citizens to both demand good workmanship and be prepared to pay for it. Beyond that, our trades schools need to soberly review the out-comes that they expect of their students, as the skill quality of their ‘graduates’ is too poor.

The president of the Botswana Institution of Engineers (BIE), Linda Moseki says unless the Government Ministries that deal with the Con-struction Industry can collaborate closely with professional Associations and other Stakehold-ers such as BOCCIM, in an effort to ensure transparency in the Tendering system, the Con-struction industry in Botswana will continue to encounter corruption and project failures.

Moseki, who is the first woman to head the male dominated Engineering Institution that has been in existence for just over 25 years, is working tire-lessly with the BIE Council and other associates to finalize their comments on the proposed Memo-randum of Agreement between BIE and the Engi-neers Registration Board (ERB). This, she believes, will save the Engineers practicing in Botswana from the tragedy that is threatening the industry which include professional misconduct by some engineers, fraudulent practices, corruption, the lack of projects due to the Government’s reduc-tion in spending on Developmental project, lack of capacity building and citizen empowerment.

She says some parastatal organizations con-tinue to disregard the recommended tendering system by Government of open tendering and instead are continuing with the invitation of con-sortiums. The disadvantage with this type of ten-dering is that it eliminates most local companies with similar expertise to participate resulting in a few if not same companies winning the jobs at all times. This type of tendering according to Moseki compromises quality and the value that could be derived from the open type of tender-ing such as clients having the project team with the best disciplines carrying out work on their behalf, competitive tenders and improved de-sign innovations among others.

Moseki stated that most companies in the indus-try will close business this year if the stimulus package as suggested by BOCCIM or the unbun-dling of mega projects scheduled to be under-taken during the financial year 2012/2013 does not go through. Currently there are few govern-ment projects on-going and these are projects that are about to be completed because they were awarded about a couple of years back. Un-fortunately the few projects that are available are won by a few and well known companies from other countries while local contractors and consultants mainly become spectators. Moseki is concerned that most clients in most cases

prefer the lowest tender forgetting that by pay-ing peanuts you will get monkeys. She however emphasized the need for clients and/or Govern-ment to realize that the lowest is not always the best as it can result in shoddy work, corruption and most importantly may not promote citizen empowerment. For example, most Companies who have recently been awarded work bring al-most all resources from their countries including labourers, material, shelter and even food. The sad part is that these Companies employ locals, mostly citizens at un competitive rates.

Moseki reiterates by requesting the government to intervene for the sake of employment genera-tion and continuity of business in the industry and also ensuring that there is transparency in the tendering system. With the possible double recession looming as alluded to by the Minister of Finance, the future is bleak for the Industry. The Industry may have to either consider outside markets for greener pastures or increase the cur-rent high numbers of unemployment.

Regarding the issue of project failures and dilapi-dations that were common in the last few years, Moseki asserts that there is a serious problem in the Construction industry and states that it can only be addressed by all the three parties Con-tractors, Consultants and Client working together as partners through Associations. Government recently established Audit teams as one of in-terventions to ensure quality assurance. Though this is seen as a good initiative, Moseki is of the opinion that the problem has to be addressed ho-listically from planning stage up to Project hand-over stage. Professional Associations are cur-rently working closely with MIST and BOCCIM in an effort to find permanent solutions to the root cause of the problem. Other Ministries dealing with the Construction industry such as Finance, Lands, Tourism, and Water &Energy should also be encouraged to join forces and harmonise their processes to avoid conflicting information and decision making.

Moseki stated that though it cannot be proved, there are some engineering professionals in the Construction Industry engaged in corrupt prac-tices and therefore suggests that declaration of interests shall be encouraged prior to award of any government project. This will also alleviate situation problems of public servants with per-sonal interests recommending projects to be awarded to their associates. It has also been ob-served that there are companies who have been awarded projects despite their lack of experi-ence in undertaking such projects. Moseki de-cried alleged maladministration of projects that could result in corrupt practices by some para-statal organizations and as such recommends PPADB to expedite the review of their Act and implement tighter mechanism for monitoring to ensure that these organizations align their procurement policies with the PPADB Act. Part II looks at the Training and education aspects in the contrition Industry.

Part 1 / A stimulus Package and Unbundling of the Mega Projects Key to Construction Industry Survival Linda Moseki, Botswana Institution of Engineers (BEI) President

by Keeletsang Dipheko by Mpho Mooka


Feature Analysis

KILLIONT: +267 755 05 291E: [email protected]

Boidus Pty. Ltd. / P.O. Box 50097, Gaborone

TSHIAMOT: +267 751 41 236E: [email protected]

THABOT: +267 715 01 301E: [email protected]

Construction IndustryArchitecture

Built EnvironmentArts & Culture

Property Investment

Construction Industry Outlook 2012 Review and Budget Response by Professional Bodies / Boidus talks with AAB, ABCON, BIE, CRSG

BF: We are in 2012, industries are looking to re-main active in the market amid effects of global recession, as one of the professional body rep-resenting contractors in the industry can you share with us how you see 2012 being in the construction industry? The 2012/2013 Budget speech has been re-leased recently and it continued austerity mea-sures of 2011/2012, especially with the contin-ued freeze of both new government projects and employment. How do you see this affecting the construction industry and especially your profession?

AW: There are new projects coming this year, every contractor is facing the same opportu-nity, and of cause the competition will be very much harsh and fierce. Currently, the PPADB is practicing the Least-Cost-Selection method instead of qualification-based one, focusing on saving government money; we are concerned that the lowest-priced successful tenders may bring lose-lose-lose situation: as the contrac-tor, the profit margin is so narrow that they may have to use cheaper, unqualified staff and defected materials etc for the project ex-ecution; consequently, the employer shall be frustrated and deprived of substantial benefit of the project; and the taxpayers are left to suf-fer the inconveniences. We are concerned that the industry may suffocate itself.

BF: BOCCIM was lately quoted as in favour of an industry bailout fund. Do you think a con-struction industry bailout fund is needed?

AW: As the country’s economy is heavily re-sources-dependant, we don't think the market pattern will change materially in the follow-ing ten years; however, a bailout fund is not recommended, because it simply against the natural rule of Survival the Fittest. Besides, where dose the money come from, and who shall have a final say on the spending thereof?

BF: The Minister of Infrastructure Science and Technology (MIST), J. Swartz has been on many occasions on record saying the construction In-dustry is riddled with corruption, In fact HE The President noted in his 2011 State of The Nation address that millions of Pula’s of government money was being defrauded by contractors. What are your comments on the issues of cor-

ruption in the industry?

How are you as contractors affected by these issues in the industry?

AW: Promoting and favouring good behaved contractors and deregistering the bad ones.

BF: How can private sector contribute to curb these negative activities in the industry?

AW: Effective communications with the engi-neer and the employer may help curbing this matter.

BF: There are some very serious challenges fac-ing the construction industry that are motivat-ing new approaches to how we design, build, operate, and maintain buildings as well as in-frastructure.

How can contractors improve their education and productivity to remain competitive?

AW: Creating training opportunities for local employees of different levels and recruiting specialist management staff. BF: What are other issues that your industry is currently experiencing that you would like to highlight for our readers?

AW: This is a government-centred economy; the spending preference of the government has great influence, both positive and negative, on the private sector. During 2008 to 2009, a lot of infrastructure projects were issued and award-ed, greatly promote the construction industry with both local and international contractors, qualified or unqualified, pouring into the con-struction industry; then came the recession, government spending shrank, few contractors survived the harsh situation, with a lot of local employees laid off, the public voiced their un-happiness against the government institutions and contractors, and great concerns about the poor-delivered projects raised and contractors’ “professionalism” was questioned.

Here is our point: we are happy to have something to work with, but we would like to work under genuine designs and instructions. Contractors alone cannot deliver a project, poor or perfect.

Again, every contractor shall be advised to ten-der reasonably and rationally for the new com-ing projects, try together to avoid cut-throat competition.

At the same time, as this country is in the lack of a lot of infrastructures, the construction industry shall remain to be a stimulus of the economy and part of a greater poverty elimi-nation program. We shall urge the government in introducing multiple and flexible projects-financing methods to encourage and develop a healthy and stable construction industry.

The year 2012 has begun and industries are looking forward to remaining active in the mar-ket amid effects of global recession. With this viewpoint, Boidus Focus took an opportunity to meet a representative of one of the profes-sional bodies representing contractors in the construction industry, Mr. Nic van Rensburg, the director of ABCON. The focus being to un-derstand how, as a professional body represen-tative, he sees 2012 affecting the construction industry.

According to van Rensburg, the industry still faces many challenges especially with regards to the austerity measures of the 2012/2013 budget and other professional aspects. van Rensburg said that looking at the 2012/13 fi-nancial year, the construction industry will probably close down further and will be faced with more job losses and company closures as well as losses of trained and skilled personnel in the process.

Besides the severe effects of a tight budget, the industry still faces other big challenges such as corruption. He concurs with the Min-ister of Infrastructure, Science and Technology, Mr Johnny Swartz, that the whole industry is affected by the issue of corruption due to the fact that the issue is applied across the industry with no exceptions. “We are all affected as we are all brushed with the same brush”, he said. However, he stated as a professional body, AB-CON has always promoted good governance and transparency in their dealings. It should be noted that ABCON has since its inception in 1977 promoted good corporate governance and transparent business dealings amongst its members, their clients and customers. We have no knowledge of members being pros-ecuted for any wrongdoings in their contracts with Government or private contracts.”

However recent reports confirm that the con-struction industry is riddled with corruption and millions of Pula’s of government money was being defraud by contractors. Therefore, to curb negative activities such as corruption, both the industry and government needs to take action. When asked how the private sec-tor can contribute, van Rensburg stated that the negative activities cannot be curbed as long as greed exists but measures can be effected to deter perpetrators.“We will not be able to curb these activities as long as greed exists. We can

put measures in place to make it more difficult for perpetrators to commit these offences and police these policies and regulations better, therefore industry are in the process of es-tablishing the relevancy and effectiveness of a Construction Industry Controlling Body, in col-laboration with the Ministry of Infrastructure Science and technology (MIST),” he said.

Though there are serious challenges facing the construction industry van Rensburg said and as a professional body they have a role to play in helping to diversify the economy. He stated that they are “…promoting technical knowl-edge, business knowledge and specific prod-uct knowledge with technical evenings and workshops for specific subjects. We are also in-volved in most committees, organisations and bodies from Government to Private Sector that are involved in the Construction Industry to as-sist in disseminating information and change and grow ideas.”

On the other hand contractors need to im-prove their education and productivity to remain competitive, however, van Rensburg stated that the current economic prospects of little or no work do not motivate contractors to do that; consequently when work eventually comes there is shortage of skills and expertise. “With little or no work there can be no plan-ning for education and productivity and as a result, when work does come out, there is a shortage of capacity in the industry, therefore the proposal to Government by BOCCIM in collaboration with construction industry bod-ies, for better planning and execution of pub-lic projects. Botswana and its economy is too small to have the luxury of not planning public spending properly.”

In conclusion van Rensburg highlighted issues that are currently being experienced by the industry. He stated reluctance by government procuring bodies and the PPADB to award quality work and punish delinquency and the inability of Government to police its own mem-bers and projects as any fraudulent activities require at least two people on both sides of the contract, as some of the issues challenges faced by the industry. He went on to further mention more challenges such as, “ the famine and feast nature of the construction industry in Botswana which makes planning totally impos-sible, the inability of Government Departments to spend the money allocated to them in a cost effective way as the industry has on numerous occasions funded the continuation of projects out of own funds as the proper planning for the project was not done at beginning stage and projects run out of allocated funds, finally the inability to plan long term due to uncertainty in obtaining work and residence permits for key staff members and therefore manage-ment consist of crisis management rather than spending time in planning strategies for growth and expansion and proper succession plans.

Contractors Need To Improve Education and Productivity to Re-main Competitive Mr. Nic van Rensburg, ABCON Director

Bailout Package against the Natural Rule of Survival Of The Fittest Mr. Allen Wang, China Railway Seventh Group (CRSG) Director

by Keeletsang Dipheko


Main Feature

Unexplored Opportunities for Investment According to a report by The World Conservation Union, ‘A Guide to Start-ing a Tourism Enterprise in Botswana’, there is a long list of exciting, new and unique services and products to select from for the type of tourism-related business that are prime for investment:

Accommodation in InfrastructureHotels, Motels Guest house/Bed & Breakfast (B&B), Backpackers’ hostels, Ranch, farm, cattle post lodgings, Tourist campsites, and picnic sites

Travel and Guide Travel and tour operations, Photographic safaris, hunting safaris Travel/tour agencies/sub-agencies, guiding services, walking trails Bird watching tours, Horse riding, Hot air ballooning, Parachuting

Extreme and Outdoor Activities• Desert/bush survival courses, Fishing (commercial) camps, House-

boats, Camping equipment hire • Boat station, Film industry outfitter • Eco Tourism• Traditional cuisine - restaurants, cafes, food stalls/outlets, Traditional

bars • Cultural centres, Dance and theatre groups, Traditional storytelling

and games, Gathering veld products and tracking wildlife, Traditional music, Curio and craft factories, Curio and craft, outlets, Visits to tra-ditional healers - medicine

Flora and Fauna Snake/reptile parks, aviaries, butterfly farms, Botanical gardens

Archi-tourism, Urban Tourism Landmarks and iconic developments, City landmarks and urban culture

OPPORTUNITIES FOR DIVERSIFYING THE TOURISM PRODUCT According to Ms Lily Rakorong, public relations and marketing manager of Hospitality and Tourism Association of Botswana (HATAB), opportunities in Bo-tswana’s Tourism sector are immense. She said the industry is prime for invest-ment; even with all the existing hotel developments that are present; there is still constant shortage of hotel beds in the country. She specifically high-lighted that because tourism cuts across all sectors of the economy, value chain opportunities associated with tourism are plentiful. Asked about the oppor-tunities for the built environment in the tourism sector, Ms Lily Rakorong said the Tourism industry in Botswana is still small and there are opportuni-ties in infrastructure development such as hotels, motels, cultural and heritage centres, entertainment and many other related services. ‘Our industry offers not alternative to wildlife based products. If visitors want to do something else apart safaris, what else can they do? In our cities, where are entertainment areas, nightclubs, theatres, cultural activi-ties….the list is endless’

The Botswana Tourism industry has for the past pride themselves with ‘must see’’ places like Okavango Delta and

Tourism Investment & Real Estate Development Opportunities in Botswana Chobe, which of course brought money and tourists in Botswana, but its time the industry look for something differ-ent, or rather change a location. There are so many opportunities out there to diversify the tourism products.

by HK Mokwete and Esther Amogelang>>> FROM PAGE 01

CHALLENGES FACING THE TOURISM SECTOR,Tourism just like any other business or sector can deplete the natural resource on which it survives especially if it’s mis-handled. As a result of tourism growing instantly and many more tourists’ des-tinations being over developed, prob-lems emerged. The same problems are the ones which affect the economy of a country, especially since in Botswana our dependence on tourism sector is outsized.• Licensing: Botswana’s Travel &

Tourism institutional structure is currently too complex and bureau-cratic according to World Travel & Tourism Council (WTTC). WTTC/Oxford Economics recommend that Botswana Tourism Organiza-tion become a ‘one-stop shop’ for tourism investors – a similar role

to the one undertaken by the Bo-tswana Export Development and Investment Authority (BEDIA) for other industries. Up to 15 different government authorizations can be requested at the present time to initiate and operate a campsite or lodge, and this process needs to be simplified, especially if smaller, lo-cal investors are to be encouraged.

• Funding Capital Tourism Invest-ments

• Access to land• Training

REGULATING THE TOURISM SECTOR IN BOTSWANA Botswana Tourism Organization (BTO) was not available for input to this es-say; the organization was established by an Act of Parliament in 2004, with a mandate to; market and promote Botswana as a Premier Tourism Desti-nation of Choice, to Grade and Classify Accommodation Facilities, and promote Investment in the Tourism Sector.

BTO is also however noted to acknowl-edge problems in Botswana tourism sector. Some of the challenges includes poor infrastructure. BTO executive, Tafa Tafa, mentioned, in recent press reports access, especially air access is one of the problems facing the tourists com-ing to Botswana. For that reason most of them use road in order to save costs. He said limited flight on existing routes, lack of scheduled flight linking different tourists attractions were also impacting on the tourism industry. In order to ad-dress such problems he said, there is a need for continuous consultation and dialogue between stakeholders in the aviation industry & tourism sector.

Note: This essay was prepared with reference to WTTC 2011 Report Botswana.All graphs and statistics - WTTC Report

Lily Rakorong

Image Source: World Travel & Tourism Council [WTTC]: Botswana


Boidus Exclusive

Contact: Dr HENRI COMRIEEmail: [email protected]

BF: You have just delivered a lecture at the University of Botswana, could you briefly share with our readers what the core theme or focus of your lecture was? HC: I have a strong link to the Univer-sity of Botswana through Moemedi Gabana who teaches in the School of Architecture and who invited me to give the lecture. I met Moemedi at Ox-ford Brookes University where we both studied ten years ago. The lecture was a general overview of my work in prac-tice and focused more on my architec-ture work than my urban design work. In the talk I tried to demonstrate how contextual influences generated differ-ent responses in each of the projects. I would like to return at some time in the future to give a more focused lecture on my urban design work.

BF: Please also tell our readers about yourself, especially your architecture background.

HC: I studied architecture at the Uni-versity of Pretoria where I graduated in 1991. This was followed by post-graduate studies in urban design at the University of the Witwatersrand where I obtained a Masters degree in Urban Design in 1995. I won a Common-wealth Scholarship in 1999 and stud-ied towards a PhD in urban design at

Oxford Brookes University and the Uni-versity of Greenwich under Professor Richard Hayward from 2000 to 2003. My architecture is greatly influenced by an urban environmental aware-ness. I have practiced as an architect in South Africa, Namibia and the United Kingdom and I have enjoyed working at different scales, from small family houses to large public projects such as the Cape Town Stadium. The majority of work was won through architectural competitions.

BF: You have been involved in the city of Cape Town’s regeneration, culminat-ing in being part of the design team of the 2010 World Cup Stadium and leading the urban design team. Urban renewal or redevelopment projects of-ten involve a lot of stakeholders, some-times outside the profession, what were some of the interdisciplinary stakeholders did you have to work with on this project?

HC: Designers need to be both good listeners and good communicators to be effective in influencing the shaping of cities. There are commercial rules, environmental rules and place mak-ing objectives that are often in conflict with each other but none of these should be prioritised to the extent that it excludes the other. Balanced solutions come about through creative compromise and rigorous debate. This takes time and patience but cities grow old and the chances are limited to get it right now in the infant but booming cities of Africa.

Being impatient in trying to catch up with the world is perhaps our biggest curse because impatience limits careful consideration and debate. This leads to a culture of copying rather than one of rootedness. I believe that the Uni-

versity of Botswana has a large respon-sibility in this regard because it has the opportunity to foster the right culture.

BF: The redevelopment and the sta-dium were all delivered on time? What was the key to your successful project completion?

HC: It was nice to prove the Afro-pes-simists sitting in America, Europe and Australia wrong! A project of this sig-nificance is a once in a lifetime oppor-tunity that brought the best out in ev-eryone, from the professionals, to the city officials, to the labourers on site. It was a major boost for South Africa’s confidence. The sort of pressure that this project created made it possible for people to forget their petty differ-ences and to work towards a common cause. The words ‘’team effort” and “powers of human endeavour” as-sumed a new meaning for me.

BF: You have spent some time here and hopefully have had time to see much of Gaborone City? What are your impres-sions on the urbanity of Gaborone as a city? Are there any interesting parts of this city that you can reflect on? What were the parts of the city that you felt could be improved or paid attention to?

HC: It is fantastic to witness a prosper-ing Botswana which is in many ways the envy of South Africans. Gaborone seems to be going through a spurt of development with impressively large new developments all over the city.

On the down side, I cannot fail to no-tice that new developments generally disappoint at one fundamental level and that is the way in which buildings meet and relate to other buildings at the pedestrian level...

...If every building does this, Gabo-rone’s planners and architects will be building a much better city over time with pleasant, walkable streets framed by polite buildings to be enjoyed by your children and grandchildren in fu-ture. The current pattern of free stand-ing, self centred development suggests that minimum urban design standards on building-to-street interfaces may need to be introduced by the city fa-thers before it is too late. The careful control of street interfaces happens in many cities where politicians and plan-ners buy into the principles of good ur-ban design. Above all urban designers are concerned with what pedestrians experience at pavement level which indicates why I am making this point so strongly. If my visit to Gaborone could influence this aspect of its develop-ment in a small way it will have been a great success.

BF: Architecture is increasingly domi-nated by technology and new software. What type of software does your firm use and how is this helping you achieve the design you aim for?

Dr HENRI COMRIE Shares His Experiences in the Designing of Cape Town World Cup Stadium by Boidus Admin

Cape Gate Mixed Use Precinct: Aerial perspective sketch by Dr Henri Comrie. Buildings in higher density developments should be good neighbours that define quality in between spaces that are designed with a positive and inviting pedestrian experiences in mind. Buildings that are each too insular and self conscious become destructive in achieving this impor-tant collective goal towards building better cities(2009).

HC: I believe that we should not be en-slaved to technology. Computers make things easier in terms of communica-tion and the sharing of knowledge, but can never replace good ideas which are vested in the human mind. In my office we have an open policy towards which computer software programme is used and a great deal of designing is still done by hand. I prefer to still ‘think with my hands’, which means I draw often because there is an enjoyable im-mediacy to this. With computers, ideas are often lost in translation because it

Fairvalley Main Public Square: Sketch by Dr Henri Comrie indicating how appropriate residential development may define a pedes-trian friendly edge to a public square in high density residential development (2009)

Velodrome site redevelopment Cape Town: Aerial view sketch by Dr Henri Comrie indicating the place making quali-ties that may be associated with an integrated, high density, mixed use precinct (2010).

Earls Court Garden Square: Sketch by Henri Comrie for Paul Davis and Partners Architects (London) exploring the massing of buildings around a residential square in Sir Terry Farrell's master plan for Earls Court, London (2011).

High density mixed use precinct Pretoria: Application of urban design principles to steer development and create a dense but people friendly environment that simultaneously enhances commercial viability. In this model good place making and commercial success are mutually supportive if land values are high enough to justify putting cars underground(2010).

forces a technical mindset too soon. I value computers but believe it is like an electric mixer which saves time when baking a cake but cannot replace a good recipe that ultimately determines the success of the cake.

BF: Do you have any other ways of working that you can share with our readers?

I believe in the reworking of ideas and for design to be informed by problem specific research. Architecture that comes in a flash is guaranteed to be superficial. Reworking relates to incor-porating subtle issues such as proper contextual analysis and environmental considerations. I do not stop design-ing at 5pm. When one is passionately involved with architecture it is all con-suming with ideas refined in front of the television and even in my dreams.

BF: Durban recently held the COP17 conference and key to issues of green house is the contribution by the build-ing industry. What are your thoughts on how architects can help curb effects of carbon footprint and climate change?

HC: Densification is without a doubt the silver bullet of sus-tainable practice. In Africa we intuitively shy away from this because of our strong attach-ment to the land...

We want to be urban and rural at the same time, which is not a very smart option in sustainability terms. With densification comes across-the-board savings which has a far greater impact than technological devices such as so-lar panels and wind turbines. The key to densification in a young city like Ga-borone would be to limit the release of urban land as well as restricting surface parking. If land values are high enough because of limited supply, cars will be removed from the surface and put into basements. By limiting availability there will be a commercial incentive to move buildings closer together and to use land optimally. Spatial release may still be provided via defined and well maintained parks carved into the urban footprint.

BF: Lastly, how is the architecture pro-fession in South Africa being affected by the recent global recession?

HC: Unfortunately architects are very bad at managing recessions all over the world because they don’t stand together as professionals. In times of recessions fees are cut to ridiculous levels simply to stay afloat and to beat other architects to the few jobs around. This cutting of fees leads to under resourcing, which in turn leads to a poor professional service and bad buildings. Our futures suffer. It is very disillusioning for younger architects to witness how this fear of not surviving then comes to dominate and suppress current ideas and professional rigour. By the time the recession has blown over architects’ professional status will have been eroded and a precedent of poor buildings will be evident.

>>> FROM PAGE 01

...Great cities all over the world are firstly designed for people and not cars and that seems to be forgotten in the hard, impenetrable facades at ground level of the majority of new buildings going up in Gaborone. Buildings can be big and tall and self centred but their ground level facades should always be layered and shaded in a hot country like Botswana...


Property / Financing

2012 BUDGET SPEECH EXTRACTby Honourable O.K. Matambo, Minister of Finance & Development Planning, Delivered to the National Assembly on 1st Feb. 2012

Property Market Outlook for 2012Business Development Manager Nkwebi Maswikiti

Industry Stakeholders Response to the Budget Speech, 2012-13

by Boidus Admin / Source: MFDP

BF: Can you give us an overview of property environment finance during 2011?

How do you think world events will affect property devel-opment in Botswana from a financing point of view (tak-ing into consideration the Euro zone crisis and the recent downgrading of France’s economy)?

NM: Definitely a seller’s market right now with property sale prices bordering on the high side. Botswana’s prop-erty market has stayed surprisingly resilient during both the recession and the rumoured double dip considering that no mass repossessions or land seizures have been reported due to the government and local industries bearing the full brunt of the recession’s adverse effects by consciously making the decision not to layoff workers. This decision translated to a somewhat stable income stream on households on a micro level leading to insula-tion of the average Motswana from feeling the full extent of the recession as felt by the first world countries.

My belief is that the full extent of the recession was felt by Government and then filtered down to companies which relied on Government’s job creation abilities in the form of tenders, particularly in the construction industry. Bank financing to companies this closely dependent to govern-ment projects was greatly reduced as a result, the recession can be attributed to the death of an estimated 25% of small and medium local construction companies who struggled to stay afloat in the absence of Government tenders.

BF: 2010-2011 saw a boom in the construction of com-mercial property such as malls and office space. Do you see this continuing during 2012 and the future?

NM: My view is the next 3-5 years will definitely see a de-velopment spurt in commercial property development as they have been pre-planned and a majority budgeted for particularly in prime mainstream urban areas like CBD and Fairgrounds. What I’d like to see however is more foreign investment in the country so that more and more of Bo-tswana can see the type of infrastructure development.

BF: How could the sustainability of this growth in com-mercial property be maintained to avoid oversupply?

NM: First of all I believe it’s a slippery slope that must be manned by government in terms of keeping the foreign in-vestment doors open; the current economic environment will not sustain commercial property supply. Of late inves-tors have gone on development frenzy but quite frankly I don’t see significant entries in foreign investment and job creation. This conduct could be a recipe for disaster if the basic rules of supply and demand are not adhered to. Gov-ernment must court investors into investing in Botswana, the only way to do that is to make the environment con-ducive by allowing flawless transactional practices such as smooth permit allocations and timely turnaround time on licensing. Government must understand that investors are like customers with a world of options and hence must be convinced that investing here is the right move for them.

BF: There is a perception that young people, esp. gradu-ates continue to have difficulties accessing mortgage loans and property finance. What does your bank have in

Development Budget

69. Madam Speaker, as indicated in the Budget Strategy Paper for 2012/13, pri-ority has been given to on-going proj-ects, refurbishment of existing infra-structure, poverty eradication initiatives and projects aimed at reducing unem-ployment. The recommended develop-ment budget for the 2012/13 financial year is P10.06 billion.

71. The second largest allocation of 20.9 percent goes to the Ministry of Trans-port and Communications at P2.10 billion to cover on-going and new proj-ects that include the Kasane Airport, Charleshill to Ncojane road and Tonota to Francistown road as well as associ-ated bridges of Shashe, Tholodi and Tati. The allocation also covers the cost of construction of the new Kazungula and Thamalakane bridges. In addition, an al-location of P100 million has been made towards the e-government programme.

The Ministry of Local Government at P1.18 billion takes the third largest share. Prominent among the Ministry’s development initiatives are the Ipele-geng and Village Infrastructure projects. These take a major share of the budget at P530 million and P272.2 million, re-spectively and account for 68 percent of the total Ministry’s development bud-get. In addition, an allocation of...

...The remaining Ministries/Depart-ments share the remainder of the de-velopment budget.

terms of options for youth going into 2012?

NM: As the peoples bank BBS found it necessary to cre-ate avenues for the youth to make that first bold step in aspiring to own their own property, one such avenue is the “Tlamelo Mortgage saving account” which is an in-vestment account geared at helping first time investors put money aside to be used at a later stage as a deposit on a property. BBS also has extended loan terms periods of up to 30 years for young hopefuls aimed at assisting to keep mortgage repayments at an absolute minimum while this young generation find their feet.

With Financial freedom comes great responsibility and BBS has always been the investment vehicle used by a thinking generation because of its flexibility and stable tried and tested investment and mortgage products.

BF: Would you say 2012 is the right time to invest in property?

NM: My belief is that property investment is a timeless endeavour; I believe that one must strike at a good prop-erty deal without blinking however, be wary of the prevail-ing property environment when making investment deci-sions. For instance;The following questions must be considered.• Location, Location, Location? need I say more?• What type of property would one like to invest in?

For instance in 2012 I wouldn’t recommend that one rush into investing into any new office space, warehouse and industrial developments without considering the pulse of the market thorough research seeing that the current state of the market points to “oversubscription”, a fact that can easily be deduced from the escalation in vacant properties advertised in local media and through agencies week after week. Quite frankly the extent at which these types of prop-erties have grown in numbers without an equal growth in new business and foreign investment leaves me thinking that between 2012-2013 one might see a rise in white el-ephant projects in once thriving locations.

In the residential space however one can do no wrong in investing in low to medium income margin projects equivalent to BHC low-cost or single and double bedroom apartment dwellings as the demand for such property is linked to a growing population.• Is there a market out there for this type of property

in terms of rental or is there a prevailing value added benefit one would receive from owner occupation?

BF: What are the key steps that one needs to go through when considering first time investing (buying) in property?

NM: One must understand that banks look at 3 major as-pects when looking at an applicant who is applying for a loan; 1. Affordability 2. Security 3. Client & portfolio risk

When a client is considering investing in property he/she must be able to prove that they can afford the repay-ment, this is done by submitting proof of income streams i.e. payslips, bank statements and financial statements. Client must also submit all relevant identity documents. The client must be able to prove beyond benefit of doubt that the security (being the property) is in good condition and in a reasonable location (some banks don’t finance certain locations as they are viewed too risky).

The next step which I feel should be the first is that the prospective investor must show immaculate account con-duct at least 6 months in advance of applying for the loan. This is to me the most important step because it directly affects the interest rate corresponding to the risk the bank is taking in lending to the client. Banks have a tendency to convert risk to revenue therefore high interest charge on a loan translates to your credit and risk rating.

The last step is to find a potential property investment. Work out your value benefit or profit margins should you decide to sell (Present and future). After having com-pleted these entire steps one can approach the banks for financing assistance.

by Boidus Admin / Contact: Nkwebi Maswikiti, Email: [email protected]

...P44.6 million has been made towards provision of destitute housing...

“we were part of the team drafting the stimulus pack-age proposal, and we do think that it could provide some support to the industry, which would help us retain professional and trades skills within Botswana.”- AAB, Jode Anderson

“A key sector which we hope government will take into consideration especially after our advocacy efforts at the HLCC last November 2011 is on reigniting the con-struction sector, which is after all a major employment creation sector. BOCCIM is still calling for the unbundling of mega projects to benefit smaller contractors, improve quality standards and ensure the transfer of skills.”- BOCCIM, Bino Magano

How do you see this affecting the construction industry and especially your profession?

The 2012/2013 Budget speech has been released recently and it continued austerity measures of 2011/2012, especially with the continued freeze of both new govern-ment projects and employment.

“The Construction Industry will probably close down even further with more job losses and company clo-sures as well as losses of trained and skilled personnel in the process.”- ABCON, Nic van Rensburg

BOCCIM was lately quoted as in favour of an industry bailout fund. Do you think a construction industry bailout fund is needed?

Maintenance of Government Assets

73. Madam Speaker, Government is cognisant of the fact that as new proj-ects are being implemented and new plant and equipment is being procured, there is need to maintain and repair ex-isting facilities and assets. It is in this re-gard that an amount of P1.84 billion has been set aside in the 2012/2013 budget to cater for maintenance, repairs and refurbishments of Government assets.

74. Project implementation, manage-ment and overall cost; continue to be a challenge in Government. This is largely due to delays in start and completion of projects, over specification of designs, and change in scope of on-going proj-ects which result in cost overruns. To ad-dress this problem, the Department of Buildings and Engineering Services has instituted audit and inspection teams to review and audit all project designs and monitor implementation of projects with a view to introducing stringent con-trols to avert over specification of de-signs, change in scope of on-going proj-ects as 18 well as contain costs within budget. Furthermore, the Public Finance Management Reforms Programme in-troduced in my Ministry will also assist in addressing the issue of timely imple-mentation of projects through the intro-duction of procurement plans; adoption by 2016 of a three year estimate of fiscal aggregates; and having three year roll-ing estimates for the budget instead of discrete annual budgets as is the case now. These initiatives will allow for bet-ter planning and implementation of pro-grammes and projects.

“As the country’s economy is heavily resources-dependant, we don't think the market pattern will change materially in the following ten years; however, a bailout fund is not recommended, because it simply against the natural rule of Survival the Fittest. Besides, where dose the money come from, and who shall have a final say on the spending thereof?- CRSG, Allen Wang


Comments

We are meeting after the Budget Speech for 2012/2013 by the Ministry of Finance and Development Planning which continued government auster-ity measures to achieve a balanced budget in 2012. Affected most is the Construction Industry, especially the building sector. Although the auster-ity measures will resonate well with International Monetary authorities such as IMF and others, the reality on the ground is greatly bleak for pro-fessionals and firms. Government’s continued cut on new projects is, at best, making it terribly difficult for many to stay relevant. Although in most established economies cut backs on government side are offset by the pri-vate sector, the section in our local economy might be greatly different. The Bailout proposal for the construction industry submitted to the Minis-try of Finance and Development Planning was a sign of the dire straits the industry is in. The fact that nothing was done in favour of maintenance work is very worrying.

We are of the view that maintenance work cannot sustain the whole in-dustry. Maintenance works in their nature are way out of scale with the problems facing engineers, architects, quantity surveyors and other indus-try specialist who cannot rely on these maintenance works. Further to this, is the fact that the money allocated last financial year for these same jobs was never fully utilised. This scenario cannot be conducive to helping sus-tain an industry during one of the worst recessions in a lifetime.

Contrastingly, South Africa’s budget for 2012 is about using the infrastruc-ture development to spur jobs and growth. The SA budget proposed to build new schools, hospitals and other strategic developments to stimulate its economy. This strategic speeding is called for, especially in Botswana where our economy is stagnant and needs stimulation.

The Construction industry, however, needs to explore ways of picking up self reliance and making good out of a bad situation. The industry needs to introspect and come together and explore ways and chances of diversifica-tion in the economy. The industry can not wait for government to change its mind while the industry continues to lose personnel and back-bone. The industry needs to look for alternative opportunities not only within our borders but also beyond our borders within the big African market.

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Debate: Budget Speech Response and Feedback

Parliamentry Debates

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Boidus Botswana: So the budget speech came and went without much of a fuss. Obviously our tabloid papers are distract-ed by our circus politics while the budget is relegated to the inner pages. My ques-tion is; with so much money allocated to the renovation and maintenance of government buildings again…which are these buildings and who is eligible to this lucrative work? Is it open to established architects and the usual industry profes-sionals or is this a new niche market for the Tenderpreneurs with the inside info?

Karabo Mpendulo Ramontshonyana: Woo! U rite which gorv buildings? Ws shocked las year learning dat there are no gorv buildings...phela money s allo-

Boidus Botswana: The MP for Palapye Mr. Master Goya today will ask the Min-ister of Labour and Home Affairs if he is aware that some contractors doing work for the AK6 project, in particular SMEI Projects, have laid off Batswana la-bourers and recruited foreign labourers as Rigger Assistants in those vacancies.

“If so, is this a fair labour practice and what will he do to rectify this situation.”

Boidus Botswana: HOME TRUTHSA property tax would by no means be easy to implement in China. It would require homes to be registered, title to be clear and the appraisal of property values to be credible. But similar ob-stacles have been overcome in other developing economies. A recurring levy would make it costlier to buy and hold a second or third home as a speculative bet on rising prices. That would force some absentee homeowners to sell their vacant flats or rent them to the many citizens priced out of the market.

Boidus Botswana: Another great area for investment is property and build-ings. People and businesses are always looking for accommodation and offices to rent, so getting into buying property is a great way to invest and make money at the same time. You will be surprised how much people and businesses will pay to rent the right property, and also be surprised how many of them are in-terested in long-term leases. There is no such thing as one year leases any-more, nowadays businesses rent for pe-riods of 5 and 10 years and don’t strike an eyelid at the annual increases stipu-lated in the lease agreements.

Lastly, and on a more general term, in-

cated for their maintenance

Jan Wareus: I'm really astonished - re-member that the Minister is educated by World Bank and IMF, as well as Mogae was a pupil of Thatcher. And he is now actually apologising like Mr Greenspan for past mistakes, if you read with some sense of history. He is givng us a second chance, indeed! I see much positive things in his budget speech!

Boidus Botswana: The lack of real audit to ascertain which buildings and what repairs they need...means that its free for all. There are stories of paint jobs lasting months on end because no body has a clue what is needed.

vest money in something that you are passionate about.

Boidus Botswana: SHORTAGE OF ACCOMMODATION FOR CIVIL SERVANTS HASSLEThere is a nationwide shortage of accom-modation for civil servants in Botswana, including Tswapong North Constituency. Housing for public officers in the district is provided through district and institu-tional housing programme whereby ei-ther new housing units are constructed or purchased from the market.

However minister of lands and hosing Mr. Mokalake says given the ever grow-ing demand for houses by public offi-cers coupled with the limited financial resources, He is unable to definitively state the time period within which to solve the nationwide shortage of ac-commodation for civil servants.

Meanwhile Government leases houses from the private market to augment the stock to address the accommoda-tion needs for public officers.

“I wish to state that due to compet-ing national priorities, Government alone cannot solve the accommodation shortage for public officers. In this re-gard, Government continues to imple-ment various programmes aimed at enhancing home development and fa-cilitating home ownership in the coun-try in partnership with stakeholders. These amongst others include; provi-sion of housing through BHC, alloca-tion of plots to individuals and private companies and guarantee of loans to civil servants through Government Em-ployee Motor Vehicle and Residential Advance Scheme, as well as through BBS (Botswana Building Society).”

NTHWANA, on 'Budget Speech 2012' [www.boidus.co.bw]I like the way you phrased it “..spending your way out of the recession”

The good thing about the CI is the fact that it provides employment to labour of all and those with the lowest quali-fications.

When a client announces their initial dream to procure any scheme,,my first thought is the cost and the actual procurement feasibility,,,to my neigh-bour who has not heard of the terms above, the first worry is how they are gonna chieve site clearance since its

only about uprooting vegetation and collecting all rubbish lying at the site of interst..

All other professions then add to the project team and so money finds its way to circulate in all markets.


Professional Practice

DIY and Home Improvements How to Lay Laminate Flooringby Boidus Admin / Source: www.channel4.com

Laminates have come a long way and these days a quality laminate floor is a wallet-friendly alternative to costly wood or stone. The best laminates are virtually indistinguishable from the real thing - look out for planks with oiled wood finishes or bevelled edges that are virtually identical to solid wood. Buy the best and thickest you can afford - the pricier the floor, the better it looks and the longer it will last. Only some ranges are suitable for bathrooms or kitchens, so check the packaging if you’re thinking of lami-nate for these rooms.

To work how much flooring you’ll need to buy, calculate the area of the room by multiplying its length and breadth measurements and then add 10% for wastage - ask an assistant at the DIY store if you’re unsure.

BudgetPacks start from around P74.95per sq metre

TimeOne to two days for a room less than 20sq metre

SkillMedium

You will need:Laminate floor packs, Adhesive (unless you've chosen 'click-together' floor-ing), Underlay, Craft knife, Drill, 20mm wood bit, Panel saw, Tape measure, Spacer blocks, Fitting tool & edging block (unless you've chosen 'click-to-gether' flooring), Hammer, Try square, Panel pins, Quadrant moulding

The most important licence from the Department of Tour-ism is the Tourism Enterprise Licence. Everybody wishing to carry out tourism operations, including community-based tourism enterprises requires it. When the Tourism Act was passed in 1992, it became law for all tourist enterprises to be licensed. The First Schedule of the Act describes four catego-ries of tourist enterprises, each of which has its own licence. 4 types of Tourism Enterprise Licences Category Tourist Enterprise • Operations that offer facilities only on site, such as

hotels, motels, guest houses* and apartments; • Operations that offer facilities on and off site, such as

tourist camps, lodges, caravans, hunting camps and tented tourist camps, which also operate tours which require the services of professional guides or profes-sional hunters licensed under the Wildlife Conserva-tion and National Parks Act, 1992;

• Operations that offer facilities off site only, such as sa-fari tour operators, and any enterprise that receives and transports travellers and guests, providing them with sleeping accommodation and food beverages in equipment that is not geographically fixed; and

• Operations that act as agents only, such as travel agents.

46* Note that guest houses with five or less bedrooms, belonging to citizens, are exempt from having Tourism En-terprise Licence.

The procedure to obtain a Tourism Enterprise Licence Fill in the application form in detail. The application form is written specifically for companies, not for Trusts, although Community Trusts definitely have to have Tourism Enter-prise Licences. This means that when a CBO completes the application form, it is advisable to get some assistance from the nearest Tourism Office. For example, where the application form refers to the Directors of the Company, the information required is about the members of the Board of Trustees. Other questions though, apply in both cases e.g. questions about existing premises apply to com-panies and Trusts;

> Attach a copy of the Deed of Trust in the case of a CBO;

> Include the details of the members of the Board of Trust-ees e.g. their Omangs, CVs etc.;

> Include a copy of the Head-lease for a CHA (if any), and the Title Deed or Lease Agreement for any other land used for the business (if any). Most community-based tourism enterprises to date have been centred around community CHAs, and the Head-lease is important to show the Tour-ism Licensing Board that the community has proper, le-gal access to the necessary land. However, the CBO may have offices or other tourism ventures inside or outside the CHA e.g. a bookings office in a nearby town, and this is where Title Deeds or lease agreements come in. The Land Board needs to be sure that the enterprise they will be licensing complies with other regulations;

> Eight copies of the Business Plan must be submitted. This is straightforward - can you see how important your business plan is? Without it, you will not be able to obtain a Tourism Enterprise Licence;

> Technical/architectural drawings and plans for any build-ings approved by Council must be attached. If the pro-posed tourism business requires any buildings e.g. tourist

accommodation, booking office, restaurant, curio shop etc. (especially in towns or villages) the plans must be ap-proved by Council and submitted with the application;

> and finally, the Certificate of Change of Land Use must be attached, where applicable. This Certificate would be needed in a case when, for example, a residential plot is intended for use as a commercial plot, and the change in use has been approved by Land Board.

Notes: The application must be submitted to the nearest Tour-ism Office. Officers of the Department of Tourism and/or Council will carry out an inspection of the premises, be-fore the licence is granted.

If the tourist enterprise is a Category A Enterprise i.e. ho-tel, motel, guest house or apartment, it must be graded according to the Tourism Regulations passed in 1996. The Tourism Enterprise Licence that is issued follows the for-mat given in the Act (Third Schedule, Form B). The Tour-ism Enterprise Licence must be renewed every year. The cost of the licence varies, with the Category A licence pres-ently (2002) costing P200.00 per annum, and the others cost P1,000.00 per annum.

Commercial licences There are two licence issuing authorities involved here, the National Licensing Authority and the Local Licensing Authority.

National Licensing AuthorityThis is in the Ministry of Trade and Industry, and issues the following licences (some of which may be needed for cer-tain tourism-related businesses):

….Travel agency licence; Hairdressing licence; General trading licence; Pharmacy licence; Fresh produce licence; Filling station, garage and workshop licence; and Dry cleaning and laundry licence.

Note that the Tourism Enterprise Licence covers the Li-quor Licence, Curio Licence and the Vendor’s Licence i.e. if you have a Tourism Enterprise Licence, it is not necessary to get these others. There are also other specific registra-tions and licences required for certain businesses only. For example, if you are planning a tourism business in which guests will fly to your area, you will have to register with the Department of Civil Aviation who will inspect your runway and issue you with a runway licence. Other similar licences, not required by all tourism businesses, but which may be relevant to yours, include a boat registration li-cence and the boat movement permit for moving it.

When applying for any of the above-mentioned licences, your application should be supported (where relevant) by the following documents: • Health Inspector’s Report on premises or approved

plans: • Title Deed or lease agreement; • Bank statements to indicate financial position or

source of income; • Deed of Trust; • Covering letter explaining how the business is to be

operated; and • Letters from prospective suppliers and buyers to indi-

cate market area to be covered.

by Boidus Admin

Process of Obtaining Tourism Related License in BotswanaObtaining tourism related licence is a very challenging process in Botswana. According to WTTC, Botswana’s Travel & Tourism institutional structure is cur-rently too complex and bureaucratic. Though Botswana has seen tremen-dous growth in its tourism industry since its real inception the processes of obtaining a licence is a challenge, Up

LICENCES FROM THE DEPARTMENT OF TOURISM [Based a report by the World Conservat ion Union , ‘A Gu ide To Start ing A Tourism Enterprise In Botswana' , By Pete Hancock And Frank Potts ’ ]

to 15 different government authoriza-tions can be requested at the present time to initiate and operate a campsite or lodge. However this process needs to be simplified, especially if smaller, local investors are to be encouraged. The WTTC encourage a one stop shop for tourism investors in a similar role to the one undertaken by the Botswana

Export Development and Investment Authority for other industries.

Botswana Tourism OrganizationBotswana Tourism Organization (BTO) was established by an Act of Parliament in 2004, with a mandate to: market and promote Botswana as a Premier Tourism Destination of Choice, to Grade and Clas-sify Accommodation Facilities, and pro-mote Investment in the Tourism Sector.

Step 1: Lay the Underlay

Take off any inward-opening doors before starting work to make the job easier. Remove your shoes when fitting the boards to avoid grit on your shoes marking the surface. Vacuum the floor to remove any grit and fit either underlay boards or a purpose-made sheet underlay. This will dampen the

noise when walking on the boards and give a cushioning effect to make the floor 'feel' more comfortable.

Step 2: Lay the First Board

Place plastic spacers at 60cm intervals along the longest straight wall and lay the first row of boards with the groove side facing the wall, starting from a corner. The spacers must be wide enough to form the recommended expansion gap all around the edge of the floor. The ends of the boards are

tongued and grooved which are joined by squeezing a bead of glue along the top of the tongue and groove. Click together flooring won't need adhesive. You will prob-ably need to cut the last board of the row to fit. Mark it with a try square and saw, with the finished surface facing up.

Step 3: Work Flow

Begin the next row, starting with the off-cut of the board used at the end of the first row. Always stagger the end joints of adjacent rows by at least 30cm. Use the fitting tool to push the ends of the boards together as you work. Continue across the room, push-ing the completed rows firmly together

and adding more plastic spacers along the two side walls. Force each board together by gently tapping the edge block against the grooved side of each board.

Step 4: Working Around Pipes

Make holes for central heating pipes by marking the position of the pipe on the board to be laid. Drill a hole about 5mm larger in diameter than the pipe. Make two angled saw cuts from the edge of the board to the sides of the drilled hole. Fit the board and carefully glue the small off-cut wedge behind

the pipe. There must an expansion gap all the way around the pipe.

Step 5: Finishing Off

Either replace the skirting board over the new boards or fix a decorative quadrant moulding over the expansion gap around the edge of the floor. Pin the moulding to the skirting board and paint or varnish. Finally, fit a metal or wooden threshold over the edge of the flooring at all doorways.

All images and Text courtesy of Channel 4 (www.channel4.com)


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Boidus Focus - Vol 2, Issue 2 [Mar 2012]

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Transcript of Boidus Focus - Vol 2, Issue 2 [Mar 2012]