Boidus Focus - Vol 2, Issue 3 [Apr 2012]

01.04.2012

OIDUS FOCUS

Registered at GPO as a Newspaper Volume 2, Issue #3

NEWS > 02 Capacity Building Workshop Held by PPADB 03 2012 Pritzker Architecture Prize Laureate; Wang Shu of the People's Republic of China

Botswana’s Architecture Design and Urban Landscape Newspaper

www.boidus.co.bw

BOIDUS NEWS >

BOIDUS FEATURE >

EDITORIALS > 04 Energy Use and Conservation in Buildings 05 Youth, Architecture & the Built Environment / Inspire, Provoke, Sensitise, Inform & Empower

PROPERTY / FINANCING > 12 Finance Corner / Creating Opportunities for All 12 Real Estate Focus / Loan Consolidation; Is it Good for Botswana & Batswana?

COMMENTS > 13 What would you ask Industry Stakeholders about Housing & Affordability in Botswana?

13 Study on Chinese Business Activities in Botswana

P5.00 (Including VAT)

Housing Affordability In Botswana at Crossroads Boidus Roundtable Discussion with Key Stakeholders

by H. Killion Mokwete and Mpho Mooka

UB Student Housing

Student Housing Market in Botswana, Ripe for Investment

by Keeletsang Dipheko

Accommodation plays a large part in a student life. Student housing provides a lot of opportunities as well as social activities for places and it has become an increasingly accepted investment within the real estate sector. With numbers of students flocking to urban centres in Botswana for further education, opportunities are prime for investors to cash in on the potential. Almost every year thousands of students come to urban areas to further their studies and millions in revenue is spent on ac-

commodation and other student commodities. > 15 000 students enroll for tertiary education, > 14 000 are student who study local and the rest goes abroad. > 2 billion for students to sponsorships (MOED), > P1 420 allowance on average per month for each student. > P1 420 covers accommodation plus other essentials; almost 80% of student allowances are used in - transport, food and entertainment.

>>> CONTINUED PAGE 10

2012 TEC Show

Education And Career Prospectus 2012 in Botswana

Making the Right Career Choice into the Built Environment

by Esther Amogelang It is yet another beginning of the year, and most form five graduates are looking out for opportunities to continue their studies. For this reason Boidus has decided to feature some of the local institutions and the courses that

they will be offering in the built environment in 2012.

This year's Tertiary Education Council conference fair, which is in its third >>> CONTINUED PAGE 11

From Top Left, Clockwise: Charlotte Mathula [Standard Chartered], Zenzile Moesi [NDB], Leta Mosienyane [MPI], Debra Albers [Pam Goldings], Dr. M. K. Minyoi [UB], Belinda Mosweu [Brownstone], Leon van Moerkerken [Stanbic], Donald Mengwe [Appearing as Guest in his personal Capacity]

We are one of smallest populations yet the country is struggling to provide basic housing for it’s citizens. Who is supposed to provide leadership in Housing matters is also vague. This is the view by Housing Stakeholders from a round table discussion recently hosted

by Boidus Focus at the Sanitas Gallery rooms.

Financial institutions insist that they have structures in place to help those who qualify for mortgages to afford houses within their income means.

ROUNDTABLE DISCUSSION ATTENDEES

However, it is still proving difficult for first-time buyers to be able to enter the housing market due to escalated prices that are generally blamed on materials and land servicing costs.

> Property Financiers [Stanbic Bank, NDB, Standard Chartered Bank]

Head of Secure lending at Stanbic Bank Leon van Moerkerken says Botswana is not necessarily failing to provide housing, but rather affordability needs to be defined in terms of the ability to buy, especially as a first-time buyer. In actual fact there is an oversupply of middle to high cost housing. Another critical is-

> Independent Urban Designer [MPI]

> Private Property Developers [Brown Stone, Pam Goldings] > University of Botswana [Department of Architecture and Housing]

POST EVENT INTERVIEWS > Gaborone City Council [SHHA] > Botswana Housing Cooperation [Addendum]

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Local News Page 2

BOIDUS FOCUS Sunday 01 April, 2012

Capacity Building Workshop Held by PPADB

by Esther Amogelang

among others. He said by the end of the workshop everyone should have an opportunity to appreciate those disposal procedures fully and apply them to their work environment be it Ministries/Department/Land Boards situations.

‘Assets are money tied up in inventory, infrastructure and intangibles. Assets need to be managed well for them to benefits us’.

This was said by Executive director services at Public Procurement Assets and Disposal Board workshop (PPADB) Mr Ishmael Joseph at The Big Five Lodge recently.

The main objectives of the workshop was to enlighten public officers on the importance of public assets and disposal management and the principles to be followed, strengthen public officers understanding of the regulatory

framework and disposal procedures, build capacity building, share the structure of proposed disposal guidelines with a view to obtain some input, empower and mobilize public officers to apply their acquired skills to relive government of obsolete assets across the country in the most cost effective and efficient way.

Mr Joseph said in order to achieve the above objectives an introduction to assets management is very crucial. This can be done by firstly appreciating the different assets types owned by the central government that is both tangible and intangible such as shares, licenses

For her part Principal Procurement Specialist (PPS) Ms Oarabile Zhikhwa said just like Procurement, asset disposal is part of asset management processes.

Zhikhwa said asset management is the process of guiding the acquisition, use and disposal of assets to make the most of their service delivery potential and manage the related risks and costs over their entire life. She listed asset planning, asset acquisition, asset operation or use, asset management &Maintenance as some of the main streams in asset management.

She further emphasized the need for government entities to as much as practicable reflect public asset management provisions in their policies and processes and keep accurate asset registers.

The PPADB was established as part of a brand public sector reform process undertaken by Government to improve efficiency in the delivery of services in the economy as a whole.

PARLIAMENT NEWS

MIST - Budget Proposal

by Keeletsang Dipheko

“Over P40 million has been deducted from payments to contractors who had failed to honor project completion deadlines.”

This was said by the Minister of Infrastructure, Structure and Technology Mr. Johnnie Swartz when presenting budget proposals for his Ministry to Parliament. He noted that over P2 million awaits determination after his ministry had received recommendations from project consultants.

Mr. Swartz said though these matters are not easy to deal with as our decisions are always challenged, he must hasten to point out that under no circumstances will his ministry accept work that does not meet the standard quality, specification and safety standards. The minister said they have encountered challenges which have impacted negatively on the performance of the public buildings infrastructure.

“Facilities such as airports, stadium and to some extend senior schools are experiencing prolonged delays because contractors are doing counteractive works to improve their quality,” he said.

Meanwhile, Parliament approved Mr. Swartz request for over P348 million for the recurrent budget and 75 million for the development budget, and he proposed that Botswana Innovation Hub be given the largest share of P32 million or 42 percent of his ministry’s development budget which was approved the same evening in Parliament.

Commentary on Presentation by Members of Parliament The Member of Parliament for Serowe North West Mr. Tshekedi Khama decried the poor workmanship of certain contractors who are awarded big tenders. He appealed to government to establish the value of contracts and how many were awarded to local companies. He said initial consultants to the Serowe Sports Complex should also be answerable to the delays in the implementation of the project.

Mr. Khama further mentioned that Sir Seretse Khama International Airport has the ugliest interior of airport that he has never seen.

Gaborone West Botsalo Ntuane requested government to make it mandatory that any Chinese company that has been awarded tenders should partner with contractors. He said as an effort to transfer skills, government must also set up an apprenticeship for every job offered to these companies in the construction industry.

The MP for Francistown West Mr. Tshelang Masisi complained about the high rate of corruption in the ministry. He said the awarding of tenders to foreign contractors, especially Chinese was worrisome. He further mentioned that the construction of the Francistown Airport, stadium and Monarch and Gerald infrastructure was of poor quality hence cost over runs.

Minister of Education and skills Development, Ms Pelonomi Venson Moitoi asked Mr. Swartz to give them guidance on how they could they could attend to school facilities. She appealed for the upgrading of school laboratories to improve on science and technological research.

Zambian President, Sata Opens Senior Secondary School

by Esther Amogelang

most important is the outcome and impact that will be realized from utilization of these magnificent building.

“Team work by government, stakeholders, parents and teachers is critical for optimal result to be achieved from using these facilities,” he said.

As one of the delayed DBES projects due to issues engulfing the CI in Botswana, the Mogodisthane Senior School was finally opened by the visiting Zambian President, Mr. Michael Sata.

Mr. Sata said the two countries bilateral relations transcend the sharing of a common boarder, as the two countries also share the same education, inherited from British. Sata said this commodity between two nations which can be achieved by twinning of schools, exchange visits between institutions, regular participation will improve the education standards in both countries.

He applauded the Botswana government for many great strides towards ensuring that basic education is made accessible to all citizens, both in rural and urban areas.

When closing, Assistant Minister of Education, on Patrick Masimolole, said the building may be magnificent but what is

Masimolole further applauded the Ministry of Infrastructure, Science and Technology for having coordinated the construction of this landmark and assured them that they will take care of the facility and use it productively.

Mogoditshane Senior was built at a cost of P64 million. The school comprised of the administrative block, 34 classrooms, multi-purpose hall, computer laboratory& hostel among other things.

Being the first secondary school to provide student accommodation in Gaborone, the school will house 1,000 students.

FMA Architects: Architects Complant Botswana (PTY) LTD: Contractors William Lee Associates: Civil & Structural Engineers KGM& Associates-Palo Motheo (JV): Quantity Surveyors G4 Consulting Engineers: Mechanical & Electrical Engineers

BOIDUS FOCUS Sunday 01 April, 2012

Regional / International News Page 3

International News Headlines 2012 Pritzker Architecture Prize Laureate; • Zimbabwe plans $100m infrastructure bond WANG SHU of The People’s Republic of China

by Boidus Admin / Images & Text Source: www.pritzkerprize.com

Zimbabwe plans to float a $100m bond to rebuild its dilapidated infrastructure as the country struggles to attract foreign investment, the finance minister said on Wednesday.

Zimbabwe's infrastructure, such as its roads, railways, dams and power plants, has been starved of finance due to a de-

cade of economic collapse, which eased somewhat with the formation of a power-sharing government in 2009.

"Very soon we are going to issue a $100-million infrastructure bond through our financial institutions," Finance Minister Tendai Biti told an investor conference in Harare.

• Potential middle class buyers need assistance from the State-SA Rob Lawrence, national manager of the bond origination company, Rawson Finance says some form of proactive action is now needed to get this sector moving upwards.

“In the USA,” said Lawrence, “mortgage interest rates are tax deductible.

This is a major incentive to buy and is one of the reasons why almost 70% of Americans today are homeowners.”

“Even if 20% of mortgage interest was

tax deductible,” he said, “that would help many more people to achieve their long-awaited goals of becoming homeowners.”

“Allowing home owners to write off 20 or 25% of the mortgage loan interest they are charged (effectively dropping interest rates on mortgages alone), coupled to the banks once again promoting mortgage lending, could just be the kick that the economy needs right now.”

• Student accommodation developments breathing new life into city centres, Johannesburg, SA Property developers are rejuvenating city centres across the country by turning old office blocks into upmarket accommodation for university students.

In Johannesburg, Port Elizabeth and Durban, a shortage of student accommodation at universities and tertiary institutions has led to some universities outsourcing their accommodation to private developers and building managers.

“Many universities no longer have enough space on their campuses to build new residences nor the funds to provide additional accommodation for increasing numbers of students,” says Richard Rubin, CEO of Aengus Property Holdings. “The private sector is in an ideal position to step into the breach.”

With university budgets facing major

constraints and cut-backs from national government, many have prioritised academic and teaching facilities ahead of upgrading or building new university residences.

“New university residences can cost many times more for universities than engaging with private developers formally or informally,” says Rubin.

Government has set up a ministerial committee to review the provision of student housing, with the Department of Higher Education stating that all universities are experiencing severe pressures on their student housing resources. Out of a student population of 530 000, there is currently only enough student accommodation for 100 000 students, meeting just 18% of the demand.

Los Angeles, CA—Wang Shu, a 48 year old architect whose architectural practice is based in Hangzhou, The People’s Republic of China, will be the recipient of the 2012 Pritzker Architecture Prize, it was announced today by Thomas J. Pritzker, chairman of The Hyatt Foundation which sponsors the prize. The formal ceremony for what has come to be known throughout the world as architecture’s highest honor will be in Beijing on May 25.

In announcing the jury’s choice, Pritzker elaborated, “The fact that an architect from China has been selected by the jury, represents a significant step in acknowledging the role that China will play in the development of architectural ideals. In addition, over the coming decades China’s success at urbanization will be important to China and to the world. This urbanization, like urbanization around the world, needs to be in harmony with local needs and culture. China’s unprecedented opportunities for urban planning and design will want to be in harmony with both its long and unique traditions of the past and with its future needs for sustainable development.”

Library of Wenzheng College, 1999-2000, Suzhou, China

Xiangshan Campus, China Academy of Art, Phase II, 2004-2007, Hangzhou, China

Pritzker Prize jury chairman, The Lord Palumbo, spoke from his home in the United Kingdom, quoting from the jury citation that focuses on the reasons for this year’s choice: “The question of the proper relation of present to past is particularly timely, for the recent process of urbanization in China invites debate as to whether architecture should be anchored in tradition or should look only toward the future. As with any great architecture, Wang Shu´s work is able to transcend that debate, producing an architecture that is timeless, deeply rooted in its context and yet universal.”

To read more, visit the Pritzker Architecture Prize website: www.pritzkerprize.com/2012/announcement

About the Pritzker Architecture Prize

Ceramic House, 2003-2006, Jinhua, China

PURPOSE To honor a living architect whose built work demonstrates a combination of those qualities of talent, vision, and commitment, which has produced consistent and significant contributions to humanity and the built environment through the art of architecture.

The international prize, which is awarded each year to a living architect for significant achievement, was established by the Pritzker family of Chicago through their Hyatt Foundation in 1979. Often referred to as “architecture’s Nobel” and “the profession’s highest honor,” it is granted annually.

The award consists of $100,000 (US) and a bronze medallion.

The award is conferred on the laureate at a ceremony held at an architecturally significant site throughout the world.

HISTORY The prize takes its name from the Pritzker family, whose international business interests are headquartered in Chicago. Their name is synonymous with Hyatt Hotels located throughout the world. The Pritzkers have long been known for their support of educational, scientific, medical, and cultural activities. Jay A. Pritzker, (1922-1999), founded the prize with his wife, Cindy.

His eldest son, Thomas J. Pritzker, the current president of The Hyatt Foundation, explains, “As native Chicagoans, it’s not surprising that our family was keenly aware of architecture, living in the birthplace of the skyscraper, a city filled with buildings designed by architectural legends such as Louis Sullivan, Frank Lloyd Wright, Mies van der Rohe, and many others.”

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

Ningbo History Museum, 2003-2008, Ningbo, China

Five Scattered Houses, 2003-2006, Ningbo, China

Editorials Page 4

BOIDUS FOCUS Sunday 01 April, 2012

Energy Use And Conservation In Buildings

by Asadul Hakim

Character of buildings of the world is determined and governed by climate, society, economy, availability of labour force, transportation and skilled manpower of the country in question. Buildings in the North or South Pole do not represent the same character as those on the Equator or on the tropics of Capricorn or Cancer.

In addition to the above, several other conditions like rain fall, temperature, vegetation and topography, availability of local building materials and industrial development also play a great role.

In our discussion here we are going to touch energy conservation and its use in buildings in Botswana. Botswana has endless heat energy all over. In this case it is our prime task to utilise this energy and simultaneously save the buildings from extreme heat by providing appropriate design and correct orientation

when siting the buildings. In winter, sunlight is required for warming up and there is need to avoid heat in summer.

In addition to this serious temperature differences from day to night, there are possibilities of cracking in roofs (the case in reinforced concrete roofs) and walls if not well treated. Radiated heat inside the building definitely produces serious discomfort and users take shelter in artificial ventilation in terms of air conditioning which definitely commands money and energy; yet this problem can be treated with proper designing of structure. Closing windows with brick walls in buildings does help users from heat, however users become psychologically frustrated. Therefore, a compromise is to be made with window openings on walls. To attain these goals - solar movement behaviour needs to be studied and properly introduced. For comfort, several items are responsible for the creation of a comfortable environment within the house. A factor which plays a major role is narrated below: SHADING DEVICES Shading devices can be plotted according to the manner in which the sun path diagrams show, as they indicate the time during which the sun needs to

be excluded. Shading masks are projections of the surface covered on the sky vault. These projections also represent those parts of the sky vault from which no sunlight will penetrate. If the sun passes through such an area, the observation point will be shaded.

Masks of horizontal shading devices (overhangs) will show a segmental character, those of vertical fins produce a radial pattern, and masks of egg crate type are basically a combination of these forms. Shading masks can be drawn for any shading device, even for very complex ones, by simple geometrical methods. Since they are geometrical projections, they are independent of latitude and orientation, and may be used in any location.

By overlaying a shading mask in the proper orientation on the sun path diagram, one can read off immediately the times when the sun rays will be intercepted. For design purposes, the process can be reversed. One can determine the needed shading mask and then find the proper device for it.

General rules can be deduced for the types of shading to be used for different orientations. Southerly orientations

call for shading devices with segmental mask characteristics, and horizontal devices work in these directions efficiently.

For easterly and westerly orientations vertical devices serve well, having radial shading masks.

In Botswana and the countries with extreme heat, it is always advisable to completely close with brick work on the west which is most vulnerable of extreme glare and to avoid penetration of heat through walls inside the house.

Some users feel that a solid wall will never look beautiful and produce darkness due to absence of windows and is ready to use heavy curtain inside to avoid glare and heat. Practically what happens is that with a curtain inside the building, heat has already been admitted into the building, thus it remains inside and produces discomfort as well as demands for artificial air conditioning.

It is better to provide a curtain outside the window opening which is not possible. In some countries, baffle walls are used to intercept penetration of heat through walls. Let us come back to the eastern side: the sun remains only for a few hours in the morning when the atmosphere is not yet heated and passes on to the western sky. Therefore, a window may be provided for morning sun and can provide a breathing scope. There is no reservation for window provision on the south and north side. But one should not forget that due to extreme heat existence in Botswana, the north side is the best for all seasons. Any building can have a wall wide window from floor to ceiling without any heat hazard. In addition to this, one must not forget that excessive light does cause discomfort in viewing; therefore regulated opening and proper orientation will satisfy eye comfort and excellent viewing.

Whatever was talked about is about the inside of a building. Heat preservation and conservation does not only apply to the interior - the building’s exterior also

plays a great role in weather conditioning and comfort. A micro climate can be created outside the building to counter adverse condition. This micro climate can be achieved through providing landscaping with various elements. As the sun also heats up the ground around the building, it is required to protect the building from heat for comfort. From a hard surface around the building, the sun’s heat reflects from the ground next to the buildings into the inside through openings like doors and windows. Therefore it is required to plant grass and flower beds around the building as they are the best items to absorb heat and protect buildings from heat. They also produce soothing effect on the eyes. In science, this weather is termed micro climate. Tree plantation can also help save buildings from heat by casting shadows but this is only limited to a single-storied building. Choice of colour on walls and ceiling plays a great role in producing comfort in the building’s interior. There are colours which reflect heat and light and colours which absorb them. In winter warm colours like yellow, white, orange and shades of these colours will produce psychological heat inside the buildings. On the other hand, green, blue, purple, black and their shades absorb heat, which is comfortable in summer. Looking at the duration of winter and summer, it is best to use cool colours all the year round. It is necessary to mention here that psychology of colours plays a vital role in determining the behaviour and character of occupants, specially children. Therefore it is necessary to think twice when choosing colours for your house. Cross ventilation through breezes does not help in Botswana weather as it brings heat or cold inside the building. Whatever was discussed above is naturally protecting the building without the help of any artificial process.

Hakim graduated in 1970 and practiced with Govt. of Bangladesh, Zimbabwe & Botswana. In Zimbabwe he was in charge of the office of the Deputy Chief Architect (Housing & Community Development) and was the Head of Architecture and Buildings with the Local Govt. in Botswana from 1990 to 2008. Secured 1st prize in Nepal Architectural competition in 1971.

BOIDUS FOCUS Sunday 01 April, 2012

Editorials Page 5

PLAIN TALK BY JOWA

Architects To Blame For The Missing Beauty Of Our Capital

by Jan Wareus, Architect / Town Planner

This time I will touch upon a few different but in my view connected matters.

First, as we all know, imported goods are unnecessarily expensive here due to transport costs. And as I have so far argued in my writings, transport costs will escalate a lot in the future due to the oil bubble bursting. The oil producing countries know very well that they have a finite product and the last drops will be expensive – and they want to keep the last barrels for themselves. Furthermore, it is confusing to see that the distributors (Exxon, Mobile, BP, Shell, etc) seemingly have a deep stance in the crude oil production, too – covering the whole line from extracting to the deliverance. That’s obviously what happens on a free, unregulated market!

So the unregulated, free trade market is making record profits on the very basic necessity for the GDP growth, as we know it so far. Consequently killing all kinds of fumbling small industrialisation attempts for the developing countries – where we belong.

Consequently, we have to do what the now industrialised countries once did. Start local production and protect it from unfair competition. We must have a construction material production of our own and cut the ever escalating transport costs. As well as putting more people into production! We have a brick factory that cannot compete with our neighbour in the south, so some kind of protection is needed (as it is for eggs, chicken and poultry and now and then, tomatoes, too). As a matter of fact – the same goes for food production and electricity.

Obviously our government is aware of the modern economical follies as some kind of anti-neoliberal concepts are in use despite the propaganda from World Bank, IMF and WTO with its “tamed” economists from the Chicago School of Economics. In this situation we have to strongly convince ourselves and possible investors that we locally have to secure a construction industry of our own as I indicated in the last column.

I leave the rest of arguing to the new generation of “dissident” economists that now and then are writing intelligibly in our papers or in the Web. On my part I recommend you to read Herman Daly (professor in environmental science and former World Bank expert – see Daily News on Google). He knows a great deal about our future!

Now another topic that will lead to a third one and I find them being connected.

In my bookshelf I have “Ralph Erskine – Architect” (Byggforlaget, Stockholm 1990), and I want to quote some lines in the following: Erskine often spoke to guests at international congresses as well to students and fellow architects. In such a company his role was to warn of the risks of following trends and temporary whims – in his view, “postmodernism is a harlot touting flashy packaging for capitalism”. He also often spoke of the need to create mixed-use communities of buildings in harmony with one another.

For him beauty was not necessarily what was elegant – he said that “God created not just the speedy elegant gazelle but also the pig. Just like the pig, slightly clumsy, thick buildings can be beautiful provided they terminate with a neat flourish”.

Mmegi 02 March 2012 has an article by Gothataone Moeng about the often mentioned “lack of landmarks” in Gaborone. A few professional architects are mentioned and quoted, among them Leta Mosienyane and Nick Njarange.

They complain, bitterly!

But neither of them is pointing the finger to where it should be pointing – to the architects! They seem to be missing some organisation outside the architectural field that should be responsible. There is no other than the architects that should be accused of the ignorance for the missing beauty of our capital, in my opinion.

They are the ones designing new buildings with no connection to other buildings. Facing different directions, being high, medium or low, according to Killion Mokwete (also interviewed).

Are these “prominent” architects asking for help from DTRP, Town Councils or what? Why can’t the architectural profession come up with an “aesthetical and concurrence board” similar to what they have in Paris, London and New York (even Stockholm, by the way)? Why do they ask to be spoon fed with regulations? Haven’t they the professional background to solve the problem they are complaining about? Isn’t it a fight on “home grounds”?

Well, I’m pessimistic. I don’t think they are willing to take the responsibility to come up with a city of some kind of coherent beauty. They prefer the masquerade – the fancy dress party and then point the finger somewhere else!

They all tried their own “landmark” and failed due to lack of co-operation.

So, finally, let me introduce to you an Erskine landmark project (done in collaboration with his old architect friends – a normal working condition for him) now built in Stockholm - the Wasa Terminal.

In brief, it is covering a large part of the Central Station and opening up an enormous amount of bus, office and commercial space on what was earlier supposed to be an impediment, a “fault line” in the City, like the one we have. The commercial success was enormous and something similar can be made in Gaborone, I’m sure.

In earlier articles and in other papers, I have mentioned this to no avail. The double spur from New Naledi to Segoditshane Valley must be dug down. No problem! The goods yard moved outside the immediate urban area.

And all of a sudden we have an enormous area that could be opened for development as well as connecting Gaborone West with Gaborone East – what a relief for pedestrians! And we will have a prestigious terminal for our long haul busses and spur based commuting, too.

Furthermore, it is obvious to me that Botswana Railways, the major landowner in the area, nowadays is very much interested in making money from real estate.

And, with collaboration between the architects, the possible “landmark” that is wanted, will hopefully be possible. But organise yourselves and work together. Maybe you should ask for a competition among selected consortia (it’s too big a project for any existing firm of today).

Maybe it could result in something as impressive as the proposal by SHoP Architects for the Innovation Hub. And act while there is still money around for these kind of projects. I wish you luck! Below I will give you an idea how RE and his friends made it in Stockholm (see pic).

And note, the necessary glass-covered, indoor concept there could become a carbon-friendly shaded area, here.

YOUTH, ARCHITECTURE & THE BUILT ENVIRONMENT

Inspire, Provoke, Sensitise, Inform & Empower

by Larona M. Kgabo, Architect

It wasn’t so long ago when my eyes were opened to see, beyond just looking, the details that surround us daily; from the tangible results of countless thought processes which men and women of novelty engage themselves in, to the great amount of influence our human need for shelter has on the final turn-out of the land palette, all in order to help us find our place and therefore shape the built environment. I often call it “the miracle of architecture” and this was my personal experience as a student of architecture! It eluded me just how I could have missed so much of what was going on in my environment prior to the inspiration gained from my initial lectures on architecture. It goes without saying that we are all involved, consciously or subconsciously, in the process and experience of architecture.

This could be as a user, designer or the one encounter of some work of architecture in the future. Young or old, we all make the built environment come alive. This is why I find it rather wrong to limit architecture to just the art or science of designing and constructing buildings- it goes beyond that.

Architecture then becomes the outward expression of a variety of needs, attitudes, tendencies and expectations by humanity and in this case, the built environment is that physical manifestation of places where we live, work and play. Similarly, beyond design and construction, architecture has such intense effects on human beings, place, awareness and ultimately on the world beyond. Christopher Day on his extract entitled ‘Places of the soul in Theories and Manifestoes of Contemporary Architecture (Charles Jencks 1990), emphasises that anything with such powerful effects has responsibility! He says that architecture therefore has the responsibility to minimise adverse biological effects on occupants, to be sensitive and act harmoniously in the surroundings.

He says it also has the responsibility to the human individualities who will come in contact with the building not only in the visual aesthetic sphere and through the outer senses but also to the intangible but perceptible “spirit of place”.

This suggests to us, that society or community should not be perplexed by the word “architecture” or deem it foreign especially since they are partakers in realising its existence. I often get very embarrassed to admit that I first encountered the word ‘architecture’ when I had to choose a course to pursue at university. It shouldn’t be that way because it either meant that I was extremely ignorant or that there isn’t much education or information passed around about this subject especially to the young people - the YOUTH! But with architecture, sensitising people would be a piece of cake since they are already living it!

In Botswana, well over 60% of the population is accounted for by youth young people making the age bracket of 18-45 years old. Therefore, it is very

safe to say that the future of this industry is in the hands of the youth. A great man of God once said that the future belongs to those who prepare for it NOW- how true! How we will be or where we will be as young people of this nation in the next 25 years should be our occupation now. Likewise, how the built environment will look like or do in the next 50 years should be our occupation as young people who take cognisance of this industry. The technologies, the culture, the attitudes and even the laws that will be upheld in the next decades in the construction industry are our assignments presently! Our advantage as Botswana is the countless number of precedence surrounding us globally.

Now moving forward after realising the role we have to play as the youth, we begin to gear up to receive information to better position us for this future and that is the reason for this column. Maybe at this point I should thank BOIDUS Focus for what I consider a privilege for the platform to inspire, provoke, evoke, sensitise, inform and empower young people to become better partakers in orchestrating the built environment hence forth through this column. Being a young female architect: born, bred and schooled in my mother land Botswana, my involvement with the built environment through the study of architecture has, to some degree, influenced my being more of a life’s architect than that of the built environment.

This column entitled: Youth, Architecture and the built environment consequently presents a common ground, a meeting place for not only young people, but everyone to understand the significance, the contributions and the opportunities available for young people in the built environment of our country and beyond. As already mentioned, young people are clearly the hope of the future of architecture and by involving them now, we create a wave of infancy into this future. The word “infancy” in this case connotes a freshness of ideas, a newness of energy, a radical innovative edge, drive, momentum which are all associated with young people. This column will therefore be geared towards exploring youth related topics and discussions in relation to the built environment such as youth empowerment in the industry and other ways, outreach and social responsibility activities, and architecture, CI and social activities.

So it’s a date with every issue of BOIDUS Focus to get educated, inspired and moving with greater opportunities of life in the built environment!

Look out for more exciting stuff. Stay young and fresh!

Larona M. Kgabo is an Architect at MIT, DBES and Reigning Miss Universe Botswana. She also serves under Ministry of Sports and Youth as Youth ambassador. She writes in her personal capacity. Please send your comments and emails to: mail@boidus.co.bw.

Advertorial Page 6

BOIDUS FOCUS Sunday 01 April, 2012

BOIDUS FOCUS Sunday 01 April, 2012

Building News Page 7

Metlhaetsile Housing Estate Now Selling

First Penthouses Coming To Botswana’s Property Market

The property market in Botswana is about to get its real radical addition to its products variety. Gaborone City, CBD specifically will soon boost its own Urban Penthouse. ‘A penthouse apartment or penthouse, an apartment or dwelling on the roof of a building, usually set back from the outer walls or an apartment that is on one of the highest floors of an apartment building. Penthouses are typically differentiated from other apartments by luxury features ’.

Penthouse apartments are considered to be at the top of their markets, and are generally the most expensive, with expansive views, large living spaces, and top-of-the line amenities. Accordingly, they are often associated with a luxury lifestyle in popular culture.

General Description: The Grand Union Buildings development comprises of four semi-detached and self-contained ‘Blocks’.

Each ‘Block’ has four floors comprising of the following: • Ground Floor – Commercial Use; • First Floor – Office Use; • Second Floor – Office Use; • Third Floor – Residential Use

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

T: +267 741 31 671 E: abo@boidus.co.bw

ABO

THABO

TSHIAMO

T: +267 715 01 301 E: thabo@boidus.co.bw

Construction Industry Architecture Built Environment Arts & Culture Property Investment

WHY BOIDUS? • the consumer of the built environment needs to be in a position to access information regarding what the architectural industry is up to • a platform for discussion and discourse needs to be created where open, earnest discussions on important issues take place

The formal dining room is visually joined to fireplace heated living room to make an impressive space for entertaining. Up one flight of stairs is a sun terrace and a quite loft which is a bonus room that can be finished into an exquisite guest room, home office, games room or even a home gym. Located near the single garage entrance is an oversized utility and laundry room. All these rooms are naturally lit through aluminum windows made of powder coated profiles and laminated clear glass. Guide price is P 1 460 000.

AND REACH YOUR CUSTOMERS

That elegant look of today is perfected in this expansive modern design of this unusual one and half story house. A three-bedroom sleeping wing is separated from the balance of the home, where the kitchen easily services the formal dining room and offers a snack bar.

ADVERTISE YOUR PRODUCTS HERE

The charming façade of these Town Houses conceal exciting angled interior with many accesses to the outdoors.

Upstairs every bedroom has a private balcony guarded with designer stainless steel rails for your safety. The lavish master suite is separated from the other bedrooms and boasts a spacious bathroom with bath tub, vanity and shower cubicle. Two additional bedrooms and second full bath are located across the foyer. Your Town House will be among the twenty two other in a secured gated estate, though these Town Houses are within the same estate as the individual houses, they will still have their own entrance and a private little park, play area and parking area for both residents and visitors. Guide price is P 989 000.

3 Bed Houses - Type 3BL

T: +267 755 05 291 E: killion@boidus.co.bw

KILLION

48 Luxury Single Family Residential Houses

3 Bed Townhouses

by Boidus Admin

FRANCISTOWN

All these dwelling units will be fitted and finished with the latest contemporary and modern fittings and finishes.

The development will be enclosed with one common perimeter walling, a gate house and guards for your security.

22 Prestigious Town houses

GABORONE

This estate by Mhago Properties is for outright sale in Block 6; it is a 3.8 hector development of serviced land that is going to be landscaped with breath taking 48 luxurious single family residential houses and 22 astonishing three bedroom townhouses.

T: +267 751 41 236 E: tshiamo@boidus.co.bw

by Boidus Admin / Source: www.mhago.co.bw

Feature Analysis Page 8

BOIDUS FOCUS Sunday 01 April, 2012

Housing Affordability In Botswana at Crossroads

Gaborone City Council - Self Help Housing Agency (SHHA) Interview: [conducted post the Roundtable Event]

Boidus Roundtable Discussion with Key Stakeholders

by Mpho Mooka

Summarative Notes from Roundtable Discussions > REFORM PLANNING AND BUILDING REGULATIONS TO BE MARKET RESPONSIVE Major set back in Housing delivery is land accessibility. There is huge demand for housing particularly in urban centers because of rural to urban migration but serviced land delivery is not in pace with demand which is contributing to sky –rocketing property values. Physical Planning framework also has its share of blame because it is so rigid in terms of stringent zoning and thus not market responsive by limiting the supply of land.

Building regulations contribute to high development cost particularly for low income groups.

>>> FROM PAGE 01

sue affecting affordability is misplaced credit allocation, which also hampers people’s ability to afford houses. For example first time buyers / graduates usually get locked into expensive car loans which reduces chances of acquiring mortgage loans to buy a house.

Ms. Debra Albers of Pam Goldings also pointed out that there is a need for public education on financial prudence and informed credit profile building, especially for many young Batswana looking to buy first time.

Dr Minyoi, a lecturer at the University of Botswana enquired, “what is the government of Botswana’s overreaching policy on housing; Is housing seen as welfare or commodity in government’s policy?” He also pointed out that the lack of consistency in Leadership at Ministerial level is also to blame. “So far there have been five different Ministers in six years at the Ministry of Lands and Housing. There is no way that these Ministers could in a year’s time provide any meaningful implementations of any of their policies.”

Donald Mengwe, and Urban Designer/ Architect Leta Mosienyane both agreed that part of the problem in our housing situation is that our current planning systems still follow old and outdated concepts. They stressed that reform of our planning systems is needed and should be market responsive and pragmatic in dealing with issues of land and development.

Mr Mosienyane said policy alone in Botswana cannot resolve issues of Housing. He said policy gives rise to an act of parliament, which results in regulations that see implementation. Therefore beyond policy, there is a need for leadership, and an implementation plan with personnel to see it through.

On the question of ‘whose responsibility is it to provide affordable housing?’

Leta emphatically believes that it is Government’s role to provide affordable housing. This could be through Public Private Partnerships and/or providing a conducive environment for private developers to meet housing demands. But the bottom line is housing is a ‘Human Right,' and as such Government is responsible for assuring that it is afforded to everyone. It is not however in the markets' interest for government (through BHC) to be competing with private sector in the housing market. BHC is still stuck in the old mandate which has never adapted to real issues on the ground situation.

BHC therefore needs to come out and say whether it is there to provide housing or make profits.

A major set back in Housing delivery is land accessibility. There is huge demand for housing particularly in urban centers because of rural to urban migration. Serviced land delivery is not keeping pace with this demand which in turn is contributing to skyrocketing property prices. Land owners with land ripe for housing development should be given planning permission to do land servicing and provide housing.

Ms Z. Moesi of NDB pointed out that built environment professionals (e.g Planners, Architects, Valuers) have also been frustrating and are partly to blame for the lack of housing issues. She said by not offering innovative ideas through coordinated research to complement government policy, it is impossible for government alone to meet the housing needs. She stressed that providing affordable housing is everyone’s responsibility and as such professionals ought to step up with ways and strategies that can help alleviate the shortage.

> EDUCATION & PUBLIC AWARENESS The public should be educated about housing and property issues, especially how to manage their credit profile without jeopardizing it with other unnecessary Financiers should also have education sections within their premises to try and give advice for new entries so that they can also avoid being influenced by society. > ROLES AND RESPONSIBILITIES BETWEEN GOVERNMENT AND PRIVATE SECTOR Land is not intensively used through high rise development and this contributes to high property prices particularly for housing developers like BHC. IF you consider the price structure of BHC properties and major component is land servicing cost and for their operations to be sustainable they need a fair return on the capital employed. There is no need for BHC to focus on high and medium cost housing as that could be easily be addressed by private developers such as Phakalane Estates and Universal Builders. Land owners with land ripe for housing development should be given planning permission to do land servicing and provide housing. > EXISTING HOUSING AGENCIES NEED TO BE REVIEWED AND REFORMED The existence of government backed parastals such as BHC, BDC competing in the housing market distorts the property market. BHC’s role and mandate need to be reviewed to allow for it to address current needs without competing and creating market distortion in housing pricing. Other social schemes such as SHHA are long due review and evaluation of their failures and success. > HOUSING EDUCATION AT ACADEMIC INSTITUTIONS There should be a framework, structures and welfare commodity education at schools for students as part of syllabus.

Housing policy is currently based rental sector and exchange of of income but it can also be diversified also political leadership and structure, there is no time framework for the government > COMMUNICATION BETWEEN PROFESSIONALS AND ALL STAKE HOLDER (ESP. PROPERTY FINANCIERS) Built environment professionals esp those in academia (e.g valuers, architects) have also been frustrating in the sense that through their professional associations, they have contributed to the dire situation . by not offering innovative ideas through coordinated research to complement government policy. Government should play a facilitative role by providing a conducive environment through institutional and legislative reforms for the private sector to develop housing.

Mr Lentswe Lesenyegile [LL] Chief Principal Planner

Samuel Aaron [SA] Senior Physical Planner / SHHA-GCC

Q1- WHY IS BOTSWANA FAILING TO PROVIDE QUALITY HOUSING FOR ITS CITIZENS? [LL] Affordability in generic terms is affected by multiple issues in Botswana. Affordability is tied to material costs and available disposable income. Also, the Botswana situation is fluid; people migrate constantly to various places in search of better living standards. Therefore the state of the economy also plays heavily in aspects of affordability and supply.

[SA] Yes Botswana is failing to provide affordable housing, and if this is measured against aspects of migration, economic outlook, and material prices, it is to be expected that not everyone can be afforded an affordable house. The failure in existing policy to cater for affordable housing particularly affects certain key income segments that are not catered for by existing government schemes: INCOME STREAM

(i) 0 and below

(ii) Income earners [0-320]

(iii) Income earners [330-3330]

(iv) Income earners above 3330

AVAILABLE SCHEMES

people classified as destitute [destitute programmes]

no scheme available [majority of Ipelegeng workers]

legible for SHHA scheme

no scheme available

It is therefore evident that a large number of people in the groups (ii) and (iv) do not have programmes to assist them in affordable housing.

It is important that Government does not leave people at the mercy of private financiers without any alternatives. Currently for example it is clear that even income earners above the 3330 region cannot afford available mortgage facilities.

Q2 WHOSE RESPONSIBILITY IS IT TO SEE THAT BOTSWANA CAN ACCESS HOUSING? [LL] It is everyone’s responsibility to provide housing. Government should also consider Social Housing. Currently the topic is about affordable housing, but there is a need to provide ACCESS TO HOUSING. Social housing would assist with certain income brackets that could not otherwise afford to buy even at subsidized prices.

[SA] Private sector should play a meaningful role in provision of affordable housing. The current situation where large corporations substitute their social responsibility for the programmes such as ‘Housing Appeal’ is disgraceful to say the least. Large corporations should provide leadership in the private sector by developing, in partnership with government, meaningful ways to provide decent, adequate housing such as say estates, township infrastructural upgrade and other schemes that have log term sustainability to housing demands of the people.

Q3 SHHA-PROGRAMMES AND MANDATE: [SA] The mandate of the SHHA programmes is to assist low income members of society to afford housing. SHHA has a number of schemes: 1.

Subsidized Land allocation 2. Materials and home improvement scheme (P45 000 interest free loan) 3.

Turnkey schemes (Building house at P60000 value) 4. Technical advice (Architectural Drawings & Cost Estimates) 5. Managing of clients building finances Q4 WHAT ARE SOME OF SHHA’S SUCCESSES AND CHALLENGES? [LL ] SHHA programmes have been successful in general given the conditions as discussed under which SHHA operates. However, challenges remain in the SHHA schemes as follows: > Land allocation • People sell off freely allocated plots and hence the intent of the scheme is defeated • The long waiting period for land allocation (some 25 years) makes the programme a ‘catch up process’ by which time peoples needs and socio-economic status might have changed. > Material and Home Improvement Loans • The P45K set in 2007 has been surpassed by economic and inflation events and it might need review. The loan should also attract increment along the inflation and material/ labour costs.

• Cases exist where people who qualify and get access to these loans do not go on to complete their houses. Because the loans do not attract interest and there are no checks or recalls, people do not probably take these as priority. > Turnkey Houses • First eight houses completed under P60 K a success and challenges included electricity connection costs.

• Turnkey scheme is currently the only scheme that fully embraces experimentation with alternative building methods > Funds Management • Key problems are the number of people failing to complete paying their arrears.

Q4-SHHA’ LONG TERM SUSTAINABILITY [LL] In general SHHA has been a success in Gaborone areas such as Bontleng, Tsholofelo, Broadhurst, Gaborone West and others.

[SA-LL] For SHHA to continue to be relevant and alive to current issues, it needs to: 1.

Evolve and continually review its Mandate against current and on the ground issues.

2. Provision for social housing should be explored to bridge the low or no income groups.

3.

SHHA also ought to engage with other stakeholders to evaluate its weakness and success against others.

4. Policy review and mandate updating needs to be matched with real independent market data, which will reflect other factors of the economy and state of society.

ADVERTISE YOUR PRODUCTS HERE AND REACH YOUR CUSTOMERS BOIDUS IS • Individuals working together towards a common goal • A social network dedicated to creativity • Interaction between the arts, architecture and design across the creative media • Lifestyle, career, theory, fashion…diversity of subject

BOIDUS FOCUS Sunday 01 April, 2012

Feature Analysis Page 9

BOIDUS ROUNDTABLE - Sector Led Discussions

by H. Killion Mokwete

Property Financiers [Standard Chartered, Stanbic, NDB] Q1. Botswana’s middle class is made up of a large percentage of youth, graduates, with those fortunate enough to be employed earning in the region of P5000 to P12000. What is your institution doing to make it affordable for this young people to afford buying a house?

Q2. Housing market in Botswana does not have a housing data base and or housing statistic that can be referenced to international markets. How reliable are our house prices in this regard?

Private Developers [Brownstone, Pam Goldings] Q3. The inability of government lead housing agencies to meet housing demands for Batswana should inherently present opportunities for private developers to fill the void. Why are private property developers not able to take up the role of investing in affordable housing in Botswana?

Q4. Many privately developed housing in Botswana family houses (3 bed to 5 beds), why has it taken so long for developers to realise the potential of single family and multi residential demands?

MOSWEU: Social housing has less attractive profits for private developers unless subsidised by government. Providing land services in order to attract private developers into the social housing market may be the solution. Without subsidies, social housing and affordable housing markets in Botswana is not viable. Also government rent con-

trol makes it even less viable for private sectors to invest in affordable housing because it impacts negatively on return investment that can be expected from controlled rentals, as some can stay stagnant for a long time.

MENGWE: If government gets to service land, it should be for low income hous-

ing. Private developers should be better placed to source and invest in high value land for development. Government should target social housing, and introduce rent to buy schemes.

• Government should provide services and at best social housing for the less privileged • Private sector are best placed to

provide housing AND infrastructure for overall commercial housing.

LETA: Government should facilitate clarification between themselves and private sectors. It should find ways to engage private sectors into social housing, rather than looking for lucrative projects.

Professional Bodies & Academia [MPI, UB, Guest] ACADEMIA

Q5. What is the role of architects and industry professionals in the efforts to provide affordable housing for Batswana?

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

MENGWE: Built environment professionals especially those in design and academia (e.g planners, valuers, architects) contribute to the problem by not developing innovative ideas through coordinated research to complement government policy and initiatives.

Q7. Real estate and especially its valuation services have big influence in house prices. What measures are there to ensure valuers do not inflate house prices and hence a bubble?

ACADEMIA Q8. What is the role of academia in providing leadership in research, discourse and data to the housing and affordability efforts?

DR MINYOI: Housing must not be marginalized academically because currently students only learn about housing at a higher level in their courses.

As such, housing issues lack academic discourse and theories that can help shape local debate on matters of

KILLION

T: +267 755 05 291 E: killion@boidus.co.bw THABO

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ABO

Housing. This also means many professionals running housing issues in respective ministries are from different backgrounds other than housing.

Education syllabuses need to include housing subjects at early stages of learning.

T: +267 741 31 671 E: abo@boidus.co.bw

FRANCISTOWN

Construction Industry Architecture Built Environment Arts & Culture Property Investment

for Industry professional stakeholders to have a platform for meeting and sharing ideas and solutions on issues affecting the industry.

GABORONE

LETA: The role of architects will always be negligible as long as there is no proper register and account of who is practicing as a qualified architect in Botswana. Only properly licensed professionals can provide real industry leadership, which will come with accountability dictated by codes of ethics. Ethics and codes will stop instances such as where government steals other people’s ideas and make them tenders without expertise of the owner of the idea. It is also important

Q6. The role of architects beyond meeting clients demand is to find design solutions to society needs. How is it that no architect/industry professional has over the years provided leadership and authority in design in finding solutions to affordable housing typologies and solutions?

TSHIAMO

T: +267 751 41 236 E: tshiamo@boidus.co.bw

SANITAS Tea Garden

MOSWEU: The industry is very secretive, why can’t the information be shared amongst the involved parties and what is being hidden also the database where buyers could be involved in purchasing

MR MENGWE: accused commercial banks for charging exorbitant interest rates. He suggested that possibly a national housing bank could help the situation by providing affordable loans. He believes BBS should not be privatized and must not compete with private commercial banks. Legislation in the area of mortgages is needed for foreclosure to be done only under exceptional circumstances as housing is a human right.

SANITAS Florist

LETA: The problem with the banks is that they select their own valuers which

MENGWE: With regards to Housing statistics and database, there is no organization or company that is dedicated towards compiling market information.

Valuers are also involved in the process of selling houses and should be involved in all the transactions to give guidance on all the valuations.

LETA: Property data is vital for the housing market. Effects of global markets inherently affect the markets world wide and Botswana’s market should be no different. Change in oil prices, steel prices and others commodities in the world market should reflect in property market prices.

SANITAS Nursery

MOESI: Data of course is a challenge and limited in Botswana. NDB currently

becomes a consumer problem, because a consumer must drive quality of the product. The financiers do not want to share information with the clients which makes the whole process suspicious and less transparent.

SANITAS Garden Centre

CHARLOTTE: There are systems in place for first time buyers, the problem is houses around Gaborone are expensive. Batswana base their housing on the current market which is heavily influenced by the structures and pricing as proposed by BHC. We believe in solid brick and mortar houses, but we need to embrace alternative methods of making houses which are proven to be more affordable.

relies on reports from Valuers and the Deeds Office for benchmarking. With regard to financing of property to encourage property ownership especially for the youth and low income people; the Bank is not only flexible in repayment periods but also acquires the proposed property as the security without any deposit demanded. The Bank utilises insurance companies for other insurances that does not inflate the repayment capacity e.g. mortgage protection is optional. . Responding to why financiers utilise preferred Valuers, NDB was said to have gone through a tendering process which was regarded as an acceptable procurement method in engaging preferred service providers.

ROUNDTABLE DISCUSSION on HOUSING IN BOTSWANA

brought to you in partnership with SANITAS www.sanitas.co.bw

LEON: Some financial institutions have no deposits, low interest rates and long-term payment plans. Most banking institutions rely on guidance on how the market is doing from data that is readily available.

Main Feature Page 10

BOIDUS FOCUS Sunday 01 April, 2012

Student Housing Market in Botswana, Ripe for Investment

PROPERTY DEVELOPERS: Brownstone To Venture Into Botswana’s Student Housing Market tion and education institutions must focus on their core business which is education and let private sector meet housing needs both for students and even that of staff.

by Keeletsang Dipheko >>> FROM PAGE 01

BOTSWANA STUDENT HOUSING’S IMMENSE POTENTIAL FOR INVESTORS Ministry of Education Mr Labane Earl Mokgosi, Director for International Marketing and Business Development from the Ministry of Education said in a Boidus Interview that the student housing has been neglected over time and is a responsibility of all stakeholders especially institutions and the business community. He said the time is opportune now for investors in the estate industry to develop student type accommodation targeting both local and international students.

“The students are currently supported through the provision of allowances to cover housing needs even though we know the sector is not well developed.

Secondly we urge the property developers to enter this niche market. This

support is done through BOCCIM, High Level Consultative Forum in the Education Sector and stakeholder consultative forums. Already GIPS is developing hostels for the students, and other players have come forth to enquire and require our support when talking to the banks for financing,” said Mokgosi.

Asked if there are any laws against or for privately run student’s hostels, Mokgosi said as a Ministry they do not have a policy, but they provide guidelines for construction of student hostels and halls of residence based on students needs, particularly tertiary education and there are things such as internet cafe, common room, ablutions, kioski, minisupermarket, refectories, and recreation facilities. As a free market economy, the laws support entrance in any business that is legal/lawful and the government supports where there is dire need such as student accommodation.

Students View on Housing and Accommodation Though the University of Botswana provides residence for their students it doesn’t even accommodate half of the number of students who are admitted to the university. Most students who are not given accommodation in school rent for themselves. Currently most students live in Tlokweng and other areas such as Metsimotlhabe, Mogoditshane, Gabane, Mmopane and Gaborone whereas others are staying with their parents. Some students are forced to live in Ramotswa as the buses from Ramotswa takes them directly to school, and it helps them to safe transport for the taxi. We met with two students from the University of Botswana: > Nelly Bogosi - Bachelor of Arts in Humanities (final year) How much do you pay on rent: “It depends on the quality of house and other facilities like electricity, as well as the distance from school because payment for one room starts from P400 to P500, whereas two and half rooms goes for PI500 which means you have to partner with somebody to be able to pay, and if you have your own family it becomes another issue especially for those who are staying in school.” Bogosi said the University of Botswana should by all means extend school accommodation as it can also add value to their study. > Masego Masinki - Bachelor of Arts in Humanities (final year) “I wish the University of Botswana should take accommodation issue seriously, for the reason that students are all over and they are travelling long distances to school. At the moment because there is shortage the school should at least look for accommodation that is closer to school. The other thing is caravans can be placed in school so that students would not have to travel for long distances.”

Tebatso said she sees opportunities more especially looking at the budget allocation at P7.77 billion: “25% to 30% of budget allocation goes to education and large portion of this goes to housing allowance and other student commodities.”

Proposed new residences / Celera Enterprises / Courtesy Brownstone

Innovative Student Housing can offer an unexplored diversification for housing market in Botswana. Boidus Focus had a chance to interview Tebatso Lekalake director at Brownstone, a property developer who are preparing to kick start the Student Housing Market in Botswana.

According to Brownstone (through Celera Enterprise development Company), they have made proposals already for the University of Botswana to develop and manage student housing for them and are now awaiting response.

“We have partnered with the Development Bank of South Africa, which has also provided student housing before and have done so in South Africa,” said Ms Lekalake.

Student accommodation can bring major tangible benefits to the city. Key to some of the benefits is providing much needed diversification in property market products available in the City. Tebatso said the Ministry of Educa-

But why haven't private developers jumped to this opportunity long ago: Tebatso mentions the lack of good profit margins and generally low Return On Investment (ROI).

Student allowances are low compared to elsewhere where student housing is a booming market range. For example looking at Johannesburg Student Housing where one bedroom costs R1950 to R2500 per student per month (SA Commercial Prop News) with a living allowance of R1 500, while off campus students are given R3 020 compared to Botswana student allowances of P1400.

Meanwhile according to Gaborone City Council, there is no building regulation or guidelines for student accommodation, unless the institutions do housing as part of school provisions. The past Develop Control Code does not show any laws on student accommodation hostels, unless it is reviewed on the upcoming one. Otherwise there is no law, it is just left to the market.

UNIVERSITY OF BOTSWANA: Student Housing Strategy “There is land that has been reserved for the construction of student housing. Private property developers could be encouraged to develop appropriate accommodation facilities for our students,” said Dr Sedisa from Student Welfare University of Botswana.

University of Botswana Student housing

According to Dr Sedisa from Student Welfare University of Botswana, as an educational institution University of Botswana offers a residential component for their students, however the academy has got a critical challenge of inadequate bed spaces and the demand of accommodation currently far exceeds supply.

“There are plans to construct additional blocks of residence but funds are not yet available for this purpose.

However, the University is currently undertaking a consultancy on the Student Housing Strategy which is expected to, amongst others things; determine how best the private sector can be motivated to venture into student housing development. The quality of accommodation at UB is generally good for our students including foreign ones. However, there are some residences which are very old and of lower quality.”

BOIDUS FOCUS Sunday 01 April, 2012

Education Page 11

Education And Career Prospectus 2012 in Botswana

GRADUATE ALUMNI - Feedback on Job Experiences and Academic Life PROFILE

COURSE/CAREER

PROFESSION

YEAR

SCHOOL

Mark Chipete

Degree in Quantity Surveying

Senior Site Quantity Surveyor for Caitec Botswana (Pty) Ltd

2006

University of Malawi

Tapiwa Barona Lebinakgabo

Bachelor of Urban and Regional Planning

Urban Planner

2011

University of Botswana

Enele Metal

Mechanization Engineering

Engineer in Mechanization at the Ministry of Agriculture

2009

Botswana College of Agriculture

by Esther Amogelang >>> FROM PAGE 01

year running, was held under the theme, ‘Tertiary Education: Shaping your future,’’ at Ditshupo Hall. Among the exhibitors were private businesses, parastatals, and government departments.

The mandate of the fair was to give learners, employees and the general public an

opportunity to learn more about our tertiary system and procedures. It also gives students access to relevant information which they need to make informed decisions on their career choices.

Boidus managed to get in touch with the newly opened BIUST and Limkokwing schools among other local institutions to find out about their courses.

BOTSWANA INTERNATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY - BIUST The hugely ambitious research and innovation institute is currently under construction at Palapye. The delay of the physical construction has caused the initial teaching to be done at Oodi College for Applied Arts and Technology. Being the second University to the country, BIUST is widening international and regional opportunities for higher education in Science, Engineering and Technology.

COURSES OFFERED - 2012 Academic Year • BSc Information Technology • BEng Computer Engineering • BEng Telecommunication Engineering • BEng Energy Engineering • BEng Geological Engineering ENTRY REQUIREMENTS To be admitted in all the courses students need to have BGCSE with minimum grade C in Mathematics, Science & D in English.

FEEDBACK FROM BIUST - Director of Student Affairs: Moss Garde • Director Moss Garde said there is overwhelming response from students from the just ended Career Fair 2012.

• The first batch will enroll in August with registration already ongoing.

• The University targets local & SADC regions for now, but will diversify internationally in future.

• Garde said due to the delay in physical construction of the campus at Palapye, the initial teaching will be at Oodi College for Applied Arts and Technology (OCAAT).

• He said accommodation is limited so students should find accommodation at nearby places.

UNIVERSITY OF BOTSWANA FACULTY OF ENGINEERING AND TECHNOLOGY It was incorporated into the University of Botswana in 1996 from Botswana Polytechnic as FACULTY OF ENGINEERING AND TECHNOLOGY (FET) and offers the bulk of courses found in the Built Environment. It is the oldest University in Botswana and has built a reputation of producing competent industry professionals: Built Environment COURSES: • Architecture and Planning • Civil, Electrical & Mechanical Engineering • Industrial Design & Technology ENTRY REQUIREMENTS BGCSE with best 6 subjects up to 34 points not below Grade E, English should be one of the qualifying subjects.

LIMKOKWING UNIVERSITY Founded in Malaysia, Limkokwing is a private institution dedicated to the development of creativity and innovation. It provides flexible pathways creating the right environment for the building of skills, talents, and knowledge for those who wish to excel and succeed in a global business environment. It has campuses across the globe and also in Botswana.

COURSES OFFERED RELATED TO BUILT ENVIRONMENT: • Interior Architecture • Software Engineering with Multimedia • Architectural Technology • Furniture Design ENTRY REQUIREMENTS BGCSE with 36 points and a credit in Mathematics FEEDBACK FROM CAREER FAIR - Public Relations, Thato Moruti • According to Thato Moruti of Public Relations, Limkokwing won the Best stall award second year in a row.

• The University grows everyday, because of their uniqueness in brand and design.

• At Limkokwing Moruti said they believe creativity & Innovation happens when rules are broken, therefore they teach students to break the rules and achieve their best results.

• The campus has international students from around the world; including the Caribbean, Zimbabwe, and SA among others.

TECHNICAL COLLEGES PROFILES Some of the technical colleges which are available locally are Jwaneng, Maun, Palapye, Francistown and Selebi Phikwe. They offer full time academic programmes that are selectively designed and developed to meet set standards of prospective employers and to accommodate further studies. Upon completion, graduates can either continue to colleges and/or universities of their choice.

BUILT ENVIRONMENT COURSES: • Foundation in Building Construction • Foundation in Electrical and Mechanical Engineering • Foundation in Visual Arts (sculpture, drawings and graphic design) ENTRY REQUIREMENTS; • To enroll students should have a credit in Maths and English.

• The colleges have some hostel accommodation, though limited.

MC- Quantity Surveying: quantity surveyors should be able to carry out estimating and measurement of construction works prior to tender, producing the bill of quantities, produce tender documentation and manage the tender process, clarify and evaluate tenders, and manage the resultant contract through monthly valuations, variations control, contract administration and assessment of claims.

The typical salary of a quantity surveyor depends largely on the level of experience of the individual and the sector or region they are working in. The average salary varies from P12, 000.00 – P50, 000.00 depending on experience.

TL- Urban Design and Planning: urban planning is the art of turning space into place. As an urban planner, you will design and facilitate the development of livable communities in both small and large urban areas. As an Urban planner you will be playing an important role in maintaining stability in our world.

I worked with land developers, civic leaders, public officials and the community. I was able to prepare materials and community relations programmes. I appeared before legislative committee and defended proposals.

EM- Mechanization Engineer: With two years from this career I have learned that most of our farmers are still behind when it comes to mechanizing their farms. Some have mechanized but have overdone it or under-mechanized their farms because they were lacking the technical knowledge of machine land. With machinery or implements with the tractors thereby ending up not using their machines to the optimum level or failing to plough well in time. I encourage anyone who wants to venture in the same field to go for it because it is marketable

Property / Financing Page 12

BOIDUS FOCUS Sunday 01 April, 2012

REAL ESTATE FOCUS

FINANCE CORNER

Creating Opportunities for All Loan Consolidation; Is It Good For Botswana & Batswana?

by Othata. A. O. Batsetswe BA Economics & Population Studies, Master of Finance & Control Post Graduate Certificate in Risk Management (EXP), Project Management.

[The author writes in his personal capacity]

by Maje Maje / Contact: maje@majemaje.com

a long term loan of the same amount will result in the following scenario, a lower interest of 11% and monthly repayment of circa P5, 200.00. What is amazing about this is the difference in interest that has to be paid; here it is P740, 000.00. This is excluding inflation variables. The long term loan period is assumed at twenty years.

'For one to be successful in the modern world, there comes the need to really understand finance and the world around you. The term Good Finance needs to start making sense to you for it indicates growth and good returns.'

WHAT IS FINANCE?

Affordability of Housing in Botswana

Finance is one word that we use daily; though widely thrown around, do we really know the meaning of the word or to us its money and that’s all that matters?

Investopedia defines finance as ‘the science that describes the management of money, banking, credit, investments, assets and liabilities’. Finance consists of financial systems, which include public, private and government spaces and the study of finance and financial instruments, which can relate to countless assets and liabilities.

With growth of the financial services sector, one aspect of such growth in Botswana is the desire to own property.

Children born in the late 70’s and early 80’s have long joined the job market and the current economic climate is that one needs a piece of land - the vision that the Magang’s of this country had on Phakalane is now envisioned by all. Everybody and everyone wants a piece of land. This scramble for land has led to an excessive demand and by now we all know the laws of economics. This has led to high pricing in pieces of land, with farms now being turned into residential plots - the case of Gaborone North. Ten years ago no one thought the price of land will be this high.

Not limiting ourselves to that definition the meaning could depend on where you stand as an individual. To entrepreneurs it means cash as most of their dealings are cash related; and to the book people, academics and experts, it means providing funds to businesses that are most likely to succeed and bring in good returns.

For us to understand finance, we perhaps need to fully understand exchange. From our conventional knowledge and skills, we know exchange as simply taking and giving; and all done for a valuable exchange based on the commodities being swapped.

Finance is an enabler to investment opportunities.

When one buys a house, in the process creating an asset, it’s through investment opportunities provided by finance. So we can arguably say banks exist to facilitate finance.

Finance creates the opportunity for us to make profit, what is called investment; therefore any venture that creates profits in the long run is an investment. So for one to maximise on financial markets they should have a long term objective. The long term is a period usually a period exceeding five to ten years depending on the investment objective or in simple terms buy and hold strategies. Buy and hold strategies are great for stock/ security purchases.

For one to be successful in the modern world one needs to really understand finance and the world around them. The term ‘Good Finance’ needs to start making sense to you for it indicates growth and good returns.

This column will discuss how the composition of funds, owned and borrowed, can be used in such a way that entities do not make losses in profitability and recover the cost for productivity. This is not limited to business only, it starts with an individual. How an individual manages their personal financial affairs is perhaps the most important aspect that we fail to include when we look at traits for enterprising.

The financial services sector is growing globally despite the global financial challenges; new measures are being put in place. Regulatory frameworks are being strengthened and Botswana is not sitting idle in the matter. Numerous pieces of legislation are being reviewed and developed daily to make sure that the investor is protected from all future financial challenges. This is not for this discussion though; however with time we will review such frameworks and their meaning to an investor.

On the market BHC Flats out of touch? (there is a way...)

However with this scramble and strong desire for success, the challenge is raising funds. If you are my peer, this is the time you realise that housing is not affordable at all. When we start working - unless you were born with that special silver spoon in your mouth and you can actually find some asset waiting for you to squander- the first thing we do is get a personal loan to put ourselves among average, help at home and refurbish here and there. While you are busy doing these right things, life doesn’t wait for you - it moves on. By the time you realise you need a plot you are in the middle of your personal loan with an exorbitant interest rate, and your salary is stagnant for that period.

On doing the maths, you realise that your take home is middle management, between P8, 500.00-15,000 p/m before deductions. You attempt to apply for a mortgage, to which you are told you qualify for P500, 000.00 of which 12% is VAT and P75-100, 000.00 of that amount will be taken up by legal issues. Currently the cheapest plot goes for P250, 000.00. That alone requires you to part with a minimum of P6, 500 p/m which is impossible because you are already paying off a personal loan of about P3, 200 p/m. Therefore you are stuck, but things worsen when your landlord calls to say the 10% annual rent adjustment is due next month. Your dreams of ever owning property diminish overnight. You then go to facebook to voice your thoughts only to realise that you are not alone. Your generation is up in arms and you are all calling for legislation to be reviewed to help but it takes forever. Nevertheless, not all is lost, there is always a way.

This column will help you find your steps early to avoid getting entangled in this mess. Through financial services we all have a chance; this column exists solely for that, among the topics for discussion we will look at the following: • • • • • • • • • • • • • • • •

Investments Beating the bank interest Social assistance Leveraging pension funds to create wealth for all Attaining Financial success Business partnerships-What are we doing right and wrong Real Estate Investment Analysis Investing Right from the get go-A guide to graduates Identifying opportunities early- A case for Financial Management Understanding the National Development Plan Capital Markets Angel Investors Insurance Understanding Assets Corporate Governance Risk Management

Loan consolidation is becoming a big phenomenon in Botswana, each financier is coining it whatever they fancy and it has become fashionable.

For some strange reason, Botswana is still catching up with this phenomenon which has toasted the economies of United States and the United Kingdom - our neighbour South Africa wasn’t spared either. This became evident in 2008 when the world banking system collapsed - the economic crisis of 2008. Some of our financiers even launched this loan consolidation in the midst of 2008. This concept of funding property “owners” the entire perceived value of their property has its pros and cons, which we will elaborate on below. The question though is whether it is prudent for Botswana to be charting waters which could be troubled soon.

Many a people argue that the demand vs. supply is what is sustaining this scenario. Well and good, but for how long?

Someone seeking loan consolidation is usually not prudent with their finances and just looking for a quick fix solution, before they go back to their old habits.

Loan consolidation is the system where clients basically combine all their loans into one; this is then paid out using a long term loan repayment instrument which is usually securitised using real property as security. This frees up the client from all personal loans, car loans and other short term loans. Thus effectively converting short term unsecured loans into long term secured loans.

What this does, is give the loaned the much needed relief of extra cash which then helps improve their credit rating with other financial institutions, which will not necessarily be the one they got the loan consolidation facility from. As it is usually said, we are treating the symptoms not treating the problem. In this case, it is just lack of financial discipline which the financiers are addressing with “cheap” long term loan repayments. You might wonder why “cheap”?

On face value, the loan looks cheap, but it is a very expensive loan which has become fashionable for people to term it cheap, coupled with the fancy way the product is presented before the potential customers. All long term loans are paid back with huge cumulated interest, and they are paid off over a period of time hence eroding any future return on investment. To illustrate what I am talking about, a scenario of short term car loan versus long term property loan. A car loan of P500,000.00 will be repaid at P12,000.00 per month over a 60 month period and with interest rate (APR) of 18%. The total interest paid over that period will be circa P260, 000.00, resulting with an overall loan repayment of P760, 000.00 overall. On the other hand

A property with a mortgage of P500,000.00 could have a value of P1,500,000.00 and this allows the owner to consolidate and hence evaporate their worth to pay for a wasting asset such as a car as in the example used above. Thus effectively wiping out P740,000.00 of their potential RIO, even if they could exit now from the property, they will still get less money because the have used good money to pay bad.

As I pen this article, I am in Hyderabad, India. Property is booming here too as in most emerging markets. The difference here is that most of the properties are cash financed hence making sure that worth is preserved in real assets. That is why we all sometimes wonder why Asian giants such as India have managed to weather the 2008 economic storm. Savvy investment environment!

Why are we then following a method which has brought some big economies to their knees?

This brings me to the question or the theme of Boidus Focus’ publication this April 2012, Housing & Affordability in Botswana. With the current trend, we are making housing affordability look bleak, just by the trend that we are growing debt at. Should a mishap happen in our economy, then we will be faced with a nation which can't afford to service their debt. Foreclosures will be inevitable. Whenever I raise this issue with my peers, they always say, since being born or coming to Botswana, they haven't seen any property downturn.

This is bound to happen, as the laws of physics can't be defied for long. The longer it takes, the higher the impact will be on those who have exposed their properties to huge long term debts.

Affordable housing will only be possible if there is change in our current land policies as this will have impact on the value of our properties which is currently being leveraged on with loan consolidation. The main purpose of this article is not to predict doom, but to state the obvious which we are all ignoring under the pretence of wealth creation, whereas we are on a wealth destruction adventure. I am of the opinion that it is not good for Batswana in the long run, as it has technically disowned them the very property which they think they own. All these highly indebted properties have a clear financial interest to the financier, thus making all of us tenants with different lease terms, not real property owners as we all set out to achieve.

Maje Maje is writing this article on an independent basis, it doesn't in any way represent the views and opinions of Apex Properties and Real Estate Institute of Botswana (REIB) where he is a director and president respectively.

Comments Page 13

As an industry paper which is more concerned about critical discussions about issues in the industry, we would like to take this opportunity to reassure our stakeholder departments in public office that out presence is here to complement their efforts in reaching the public with vital industry information. We seek not headlines and do not wait for things to go wrong before we come knocking but rather we want to afford a neutral platform for public office to come forth and share/discuss successes and challenges of the office functions they hold on public duty.

New additions to Boidus editorial team: We are happy to announce an exciting addition to our editorial team, two key Boidus Team columnists who are experienced and accomplished professionals in their respective fields.

EDITOR H. Killion Mokwete Mr Maje Maje, Founding Director at Apex Properties and current President of Real Estate InstiDESIGN Bridget T. MacKean tute of Botswana (REIB) (writing in his personal capacity) will host a column called Real Estate JOURNALISM Focus. Mr Maje’s column will critical look at onEsther Amogelang Keeletsang P. Dipheko the-ground issues concerning the real estate Mpho Mooka market and how it affects the building consumPHOTOGRAPHY er. Mr Othata Batsetswe, Master of Finance & Abo Kefitlhile Control and Principal Economist at Ministry of SALES Finance and Development Planning (writing in Thabo Sarona his personal capacity) will host a column called, Abo Kefitlhile Finance Corner, which will explore and discuss DISTRIBUTION aspects of financing, real estate investment and Tshiamo Kabomo capital markets amongst others.

We welcome Mr Maje and Batsetswe to Boidus Focus paper and we hope you will follow their columns and find their insightful analysis of our property markets invaluable.

GUEST COLUMNISTS Othata A, O. Batsetswe Maje Maje Jan Wareus Larona Kgabo Asadul Hakim

WHAT WOULD YOU ASK THE FOLLOWING ABOUT HOUSING AND AFFORDABILITY IN BOTSWANA;

Office of the President / Ministry of Lands & Housing / Parastatal Housing Agencies (BHC) / Local Authority [GCC-SHHA] / Private Financiers [Banks & Mortgage Lenders] / Industry Professionals [Urban Designer, Architect, Property Developer] Lesego German: How do they expect Batswana 2 hav affordable housing wit the current situation wher a low cost BHC house costs over half a million? how do u expect houses to be affordable when you(OP,ministry n Gcc) hav let land prices 2 increase by over 250% in a year's time? (residential plots goin as far as P1100/sqm)? yet u knw tht the mortgages n loans tht an average Motswana qualifies 4 is nothn above 250k..Why is ther no price control over property sales n rentals?.

Thabo Q. Letshwiti: To BHC,,,,,there is a relationship between housing and and consumers spending...?!is there a mechanism they have established they have ad opted to link house princes and consumption so as determine house price sustainability ?! also to Banks, read Standard Chartered joining some banks to wholly fund house acquisition,,,are the people really affording or they just taking advantage

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of people's mistakes?! at the end consumers get burned!!!

Personally I think most (if not some) people who go buy at BHC are driven by desperation, and assurance ( since is the government) than to deal with private land fraudsters we ecountering!!!!! but is that a mechanism for pricing? Ask for their profit margin as developers relative to the cost per Unit.!!!!!

Lesego German: Please do keep us updated, ths is an issue f great concern 2 evry Motswana n thanks for bringin it up..wish we cud hav an open(public) debate wit al the stakeholders u r going 2 meet,.we trust u 2 initiate a change 4 the better as u pursue ths issue.

Boidus Botswana: Didn't know such existed in Botswana! Read below:

The Department is responsible for designing and formulation of housing policies, monitoring and provision of guidance to Local Authorities both urban and rural, private developers and other institutions in the implementation of housing policies. The Department is headed by a Director.

The main functions of the Department are; • To formulate housing policies and programmes • To provide national leadership and professional guidance on all matters pertaining to housing • To coordinate and monitor the management of pool housing for eligible public officers • To serve as a source of information and advice to government and other stakeholders on hous-

T: +267 755 05 291 E: killion@boidus.co.bw THABO

ABO

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Oh,n please ask them how they define 'affordability' coz maybe we r talkin about different minimum values tht define 'affordability'

Objectives of the Department The Department has the overall responsibility of facilitating housing delivery in the country. This involves formulation and promotion of housing policies and programmes, their coordination and implementation.

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DEPARTMENT OF HOUSING OBJECTIVES AND RESPONSIBILITIES

The Department of Housing was formed in 1994 as a result of the recommendations of the Organisation and Methods Report (O&M) of June 1991 in order to spearhead national housing development programmes with a view to ensuring adequate safe and sanitary shelter for all population groups.

BOIDUS F O C U S

tels in busy streets like main mall. The city/government should be adventurous when investing in entertainment as it plays a critical role in marketing the country in all aspects. [mail@boidus.co.bw]

AND REACH YOUR CUSTOMERS

It is a constant cry amongst our media compatriots in the open press that Government Departments are not forthcoming with information to aid reporters and newspapers in their research and reporting. We have recently had our first hand experience at the bureaucracy that is involved in attempting to access public office officials for information. In actual fact one angrily barked “ Do you think I work for Boidus!” to our poor persistent reporter. Obviously we understand that officers in public office are busy individuals but it is on the other hand encouraging that the response one gets from private offices is always prompt and served with enthusiasm.

> Racious Manowe, on Gaborone

having actually spent most of time studying abroad and have seen how developed countries bring investors and market to their cities. Yes it is by artificial adventurous theme parks and lagoons within the city, low cost hos-

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Comments & Letters

FRANCISTOWN

EDITOR'S NOTE

BOIDUS IS • Individuals working together towards a common goal • A social network dedicated to creativity • Interaction between the arts, architecture and design across the creative media • Lifestyle, career, theory, fashion…diversity of subject

BOIDUS FOCUS Sunday 01 April, 2012

•

TSHIAMO

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ing matters To undertake research on housing

Wazha Otsile Zwebathu: I once chckd n trd 2 fnd out wat extly thy r doing n rlzd thy hv a lot 2 do snc ths dprtmnt ws fmd in 94... Gys we r bhd cncerning hsng issues Boidus Botswana: Wazha Otsile Zwebathu i agree we are way behind, in fact i think 'behind' is an understatement Caesar Tshupelo: thats Botswana for you my brother...the right hand doesnt know what teh left is doing

STUDY ON CHINESE INVESTMENT BUSINESS ACTIVITIES AND SCOPE OF INTEREST IN BOTSWANA

Boidus Botswana: Parliament on Friday will take a closer look on Chinese investment, business activities, scope of Chinese interest in Botswana and their impact on the Botswana economy.

Caesar Tshupelo: after 22 years of them being, they are now realising the mess caused by the CHinese

made by these Chinese! The soft loans from China are utilized by Chinese contractor then the money is send back to china all left with is Debt and poorly constructed build. But People in High positions have benefited from this as they are shareholder in some of these companies. And this is why this have carried on for 22 years.

how is it that they came and conquered in areas that local firms could easily have made success. I have seen in villages Chinese taking over general dealer shops which were previously failing, run by Motswana and making them a success.

How is it that they do this. This study has to also look at our failures and what we lack in our business acumen as a people.

Kealeboga Shoshong: These Chinese guys have wracked our economy! No mean-fully investment have been

Boidus Botswana: What would be really interesting is not only to isolate the Chinese business interests alone, but also

Rosemary Moagi: ey machaina dilo tsa bone di senyega ka pele,thir bldngs eish thy rush 2 finish n grab the money....

Find Boidus on; DISCLAIMER: Please note that the views expressed in 'Comments and Letters' are neither those of Boidus, its management, nor its advertisers.

Professional Practice Page 14

BOIDUS FOCUS Sunday 01 April, 2012

SELF REGULATION AND REAL ESTATE PROFESSION IN BOTSWANA: A PERSPECTIVE [Part 1]

by Donald Kagiso Mengwe / BSc (Hons) Est. Mgt, MREIB, Registered Valuer / Email: mengwedon@yahoo.co.uk Secretary General, Real Estate Institute of Botswana, 2008 – Oct 2011 Registrar, Real Estate Advisory Council, 2005- May 2006 [The author writes in his personal capacity]

“Wisdom is not a product of schooling but a lifelong attempt to acquire it” -Albert Einstein INTRODUCTION In a democratic liberal economy there are compelling instances where government has to intervene to regulate market behavior, to essentially influence for what, how and for whom various goods and services are produced.

The case for regulation rests on the premise that its purpose is to ensure that the public interest is served as in consumer protection. In terms of commercial transactions between experts and the public, the lobbying and campaigns for regulation thereof are hinged on the justification that there is knowledge imbalance or informational asymmetries. Professional regulation is also espoused where there are significant benefits or costs from provision of professional services that accrue to third parties, outside of the contracting parties. While there are those who appreciate and support the virtues of professional regulation, it obviously has strong critics whose argument is that it borders on elitism and anti – competitive conduct that promotes the wealth of members and has the effect of stalling or thwarting innovation and technical progress.

In the context of Botswana the regulation of real estate practice was effectively mooted following the public outcry on illegal land transactions exposed by the Report on Land Problems in Mogoditshane and Peri – Urban areas - also known colloquially as The Kgabo

Report. The Report elucidated unscrupulous and unsavoury behavior in tribal land dealings by rogue estate agents.

In absolute view of these findings, real estate practitioners with authentic academic credentials and moral authority, concerned about the likely impact of negative public perception that could consequently affect the sustainability of the profession, founded an association of property professionals, the Real Estate Institute of Botswana (REIB). REIB was established primarily to promote the economic and professional interests of Property Surveyors. Government intervention to regulate the profession subsequently followed in terms of the Real Estate Professionals Act 2003, which created a regulatory body, viz, Real Estate Advisory Council (REAC) after successful lobbying by REIB. This paper gives an overview of the concept of self –regulation and sheds light on the challenges of self regulation as it applies to the real estate profession in Botswana. It is also intended to stimulate interactive discourse among real estate practitioners and stakeholders in the property services industry to improve the organizational efficacy and performance of REIB and REAC to deliver on their mandates. Crucially, it aims to disseminate information on the workings of self regulation to complement an understanding of this institutional framework by membership of the profession and the public at large.

DEFINING SELF – REGULATION Self regulation is based on the concept of an occupational group entering into an agreement with government to formally regulate the activities of its members (Balthazard,2010,pg 1). Essentially, it is a privilege delegated to a professional group by the legislature which enables control over the practice of a profession and the services provided by its members. There are different models of self regulations and they typically range from minimalist to extensive control over the activities of members of the profession.

All self regulatory models often embody entry and licensing requirements, professional and ethical standards, education and continuous professional development, disciplinary systems and appeal processes. The imperative of regulatory models is to ensure that the profession continues to deliver high quality services and to protect the public from incompetent and unethical practitioners.

PRINCIPLES FOR GRANTING SELF –REGULATION STATUS Government, in determining to grant a profession self regulation status, examines if the work activity performed is of such nature that if carried out in a negligent or fraudulent manner, there is risk of harm of danger to the public (Schultze,2007, pg 42). Basically if there is no risk of harm, then there is no justification for government intervention, and it is persuasive and in the public interest to allow greater choice of service providers and competition rather than institute barriers of entry.

The notion of capacity in terms of whether there are adequate resources to operate a self regulatory model is another critical factor which is normally considered. In this respect, there has to be adequate numbers of responsible members of the profession who have the passion, energy and commitment to develop standards and rules necessary to operate the self regulation process.

The membership of the profession must be above a certain threshold in terms of numbers, considered viable to pay economic fees that would yield financial resources to execute the mandate of the regulatory body.

Lastly, the profession lobbying for self regulation should have a defined body of knowledge and skills attained through education and experience. Actually this is the embodiment of a profession which Schultze (2007) at pg 47 succinctly describes as a “ learned calling requiring specialized knowledge and skills applied with acquired experience and judgment”. Glen Randall, founding Registrar of College of Respiratory Therapists of Ontario (1993 – November 2000) in his paper titled Understanding Professional Self Regulation attests that the body of knowledge should not overlap significantly with that of another occupational group and be too esoteric as it becomes impractical to set standards of practice for the profession.

ARGUMENTS IN FAVOUR OF SELF – REGULATION Proponents of self regulation claim that its advantages are efficiency, increased flexibility, increased incentives for compliance and reduced costs. These assertions, are briefly explained below are derived from a literature review by Campbell (1999) a) On the subject of efficiency, it is argued that government taps on the collective expertise of industry rather than duplicate it at the agency established for regulation. This is on account of the fact that industry participants are likely to hold superior knowledge than government bureaucrats, which is necessary, especially to develop rules and determine compliance. b) Self regulation is more flexible than direct government regulation in the sense that industry is far more responsive to changing circumstances or business environment than government bureaucratic procedures. Industry has comparative advantage as it has detailed understanding of the market it operates within and thus able to devise effective rules which may lead to improved behavior. c) Another argument in support of self regulation subscribes to the profound influence of ‘peer pressure’, by effectively suggesting that there is greater incentives for compliance and also a perception that the rules are reasonable as they are developed by industry. d) It is stated that self –regulation demands that industry develop and enforce rules thus it is cost effective. In this case government involvement is

confined to supervisory levels, which requires less resources. e) Lastly self regulation may avoid constitutional issues. Campbell (1999, pg 717) cites an illustration of this point by highlighting that “--- no constitutional question arises if a station or group of stations independently decides not to accept alcohol advertising”.

ARGUMENTS AGAINST SELF REGULATION Similarly, Campbell (1999) on her study of self regulation has gleaned the following criticisms of self –regulation from literature review : a) The proposition that industry would exert its expertise for the benefit of the public is flawed. There is an inherent natural disposition within industry to promote their interests to maximize profits. b) In circumstances where industry dominate the process of developing regulation at government agency through representation, the contention that there is greater incentive for industry to comply with its own rules than that imposed from the outside becomes weak. c) Self–regulation creates a fertile ground for industry to promote the personal wealth of members as self – regulatory bodies are more susceptible to industry pressure than government agencies d) Self – regulation raises cartel or monopolistic issues. As it involves competitors assembling to discuss on how to conduct business it can facilitate anti – competitive behavior. e) The other issue is that self regulatory bodies may be unwilling to apply rigorous enforcement, particularly against their members (see Ball M,2006, pg 207). In the same vein, it is debatable whether industry has the power to impose effective penalties. The most serious penalty that may be visited upon a member in a self regulatory environment is normally expulsion. Many question whether it is a sufficient effective deterrent particularly if compared with the possibility of facing criminal charges, which obviously is beyond the remit of industry in terms of enforcement.

Campbell (1999, pg 718) also states that the effectiveness of expulsion as a deterrent depends on whether the benefits of membership are effective. ...To be continued next Boidus Focus Issue [to be released 01 May 2012]...

BOIDUS FOCUS Sunday 01 April, 2012

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