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

01.03.2012

OIDUS FOCUS

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

NEWS > 02 Parliament Passes Bill to abolish VAT on property for first time buyers 03 South Africa to Invest in Infrastructure Development: Budget Speech 2012

Botswana’s Architecture Design and Urban Landscape Newspaper

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BOIDUS NEWS >

BOIDUS FEATURE >

Construction Industry Outlook Review and Budget Response

EDITORIALS > 04 Sustainable Cities, Population Distribution & Means of Production & Trade 05 Botswana Must Secure A Production Of Building Materials Of Its Own

BUILDINGS > 06 Minister Makgato-Malesu Shown Around The Completed Masa Centre [CBD] 07 Arctez- Design of Masa Centre called for Integrated Design

P5.00 (Including VAT)

Tourism Investment and Real Estate Development Opportunities in Botswana

by H. Killion Mokwete and Esther Amogelang

BOTSWANA’S TOURISM ECONOMIC PROFILE: World Travel and Tourism Council (WTTC)

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

by Mpho Mooka & Keeletsang Dipheko Boidus Focus took an opportunity to meet with representatives of professional bodies from different industries including construction and architecture.

The focus being to take a closer eye on how they see Industry Outlook for 2012 as well as the impact of the 2012/13 Budget to their respective industries.

-Budget allocation will lead to further

close down of the construction industry • Challenges will continue to roar the construction industry • The current focus on corruption makes it more difficult for public officers to make decisions • Contractors need to acquire education and productivity for future >>> CONTINUED PAGES 08/09

BOIDUS EXCLUSIVE >

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

Ever wondered what other opportunities for investment in property development are outside the usual commercial and residential ventures? Well, tourism is a BIG unexplored potential in Botswana’s economic market. Not only is investment in tourism a profitable venture, it also has been proven over time to be a sustainable business sector.

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

it ranks fourth in terms of global exports after fuel, chemicals, and automotive products, with an industry value of US$1 trillion a year (UNEP, 2011).

The tourism economy generates 5% of world gross domestic product (GDP), and it makes up 6-7% of total employment. International tourism accounts for 30% of the world’s exports of commercial services or 6% of total exports; 935 million international tourists were recorded in 2010.

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

Dr HENRI COMRIE Shares His Experiences in the Designing of Cape Town World Cup Stadium formative lecture, Boidus conducted an exclusive questionnaire interview with Dr. Comrie about his work experiences with the Cape Town World Cup Stadium and the city’s regeneration; as well as his professional view on a city like Gaborone which is also embarking on an ambitious redevelopment exercise of its inner core.

Following this very interesting and in-

>>> CONTINUED PAGE 11

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

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

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

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

by H. Killion Mokwete

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

COMMENTS > 12 Property Market Outlook for 2012: Interview with Nkwebi Maswikiti (BBS) 13 Debate: Budget Speech Response and Feedback

Travel & Tourism investment is estimated at BWP1,181.0mn or 6.3% of total investment in 2011.

It should rise by 4.8% pa to reach BWP1,885.9mn (or 6.5%) of total investment in 2021.

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

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

Physical Address Ko-i-nor House, Office 11 Main Mall, Gaborone

Contact P.O. Box 50097, Gaborone mail@boidus.co.bw

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Local News Page 2

BOIDUS FOCUS Thursday 01 March, 2012

Parliament Passes Bill To Abolish VAT On Property For Lonrho Coming To The CBD First Time Buyers

by Esther Amogelang / Images © Lonrho

by Keeletsang Dipheko

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

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

“We are concerned by the emergence of foreign owned syndicates that own land and sell it to other foreigners at prohibitive rates, far beyond market prices, and meant to sideline Batswana. We once again propose an audit of land currently owned by foreigners,” said Ntuane.

Ntuane also calls on government to exempt first time home buyers/owners from VAT. This will encourage young professionals to invest in home ownership and climb up the housing ladder as opposed to consumptive spending on depreciating, short term assets such as motor vehicles.

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

“The reason for bringing this motion is that the cost of home ownership is high.

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

Housing is a basic need and a human right, though unexpectedly some Batswana are selling their plots out of frustration mainly because they do not have the means to develop them. Saleshando said other countries have introduced tax incentives for financial institutions that invest in home ownership.

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

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

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

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

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

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

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

by Esther Amogelang

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

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

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

Majestic Hotel To Make Palapye A Destination Of Choice

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

Hotel design plays a crucial role in the hotel business.

The architect of a building can be used to create a statement that will draw the attention of a customer, thus selection of a proper architect for any project can make it different from the Jonathan Patterson rest. Moreover, the design General Manager and layout of a hotel create a certain perception in a guest’s stay.

largest musical extravaganza Botswana has ever seen.

Majestic was built for the people of Botswana to experience ultimate luxury and comfort. The hotel will put more emphasis on services in everything.

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

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

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

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

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

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

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

BIH To Launch Southern African Innovation Support [SAIS]

by Keeletsang Dipheko

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

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

effort to accomplish this, Botswana Innovation Hub is launching the Southern African Innovation Support (SAIS) programme. The programme is sponsored by the Finnish Ministry of Foreign Affairs.

The opening of SAIS Botswana is meant to enhance innovation in the four participating countries namely Botswana, Zambia, Namibia and Mozambique.

Specifically the programme seeks to strengthen collaboration, networks and

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

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

BOIDUS FOCUS Thursday 01 March, 2012

Regional / International News Page 3

South Africa To Invest In Infrastructure Development: Budget Speech 2012

Tragedy Of The New Au Headquarters

by Chika Ezeanya / Source: pambazuka.org

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

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

Overview of the South Africa Budget Speech 2012 ……addressing the challenges of creating jobs, reducing poverty, building infrastructure and expanding our economy.

Funding of infrastructure The Presidential Infrastructure Coordinating Commission has made considerable progress in identifying projects and clarifying long-term investment plans to drive economic change.

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

The Budget Review lists 43 major in-

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ADVERTORIAL

Envirogrower Official Launch-GICC

Envirogrower President, Mr Andrew Grasby

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

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

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

Mr Peters G.B Peters, Country Manager

Sir K. Masire and Minister Masisi

The ancient and modern history of donation of buildings and structures from one nation to another is filled with intrigues and subterfuges, conquests, diplomatic scheming, espionage and counter-espionage, economic manipulations, political statements and dominations.

The construction of the Trojan horse by Odysseus and its ‘donation’ resulted in the Greek conquest of the ancient city of Troy after 10 years of unending skirmish.

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

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

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

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

Common sense dictates that in an era of increasing exploitation of Africa’s natural resources by foreign powers including China, the African Union, rather than the apparent submission signified by acceptance of the construction of its headquarters by China, should be an organisation advocating for fairness in the relationship that exists between the continent and the global powers.

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

Editorials Page 4

BOIDUS FOCUS Thursday 01 March, 2012

Going GREEN with Goitsemodimo Manowe

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

Population growth as the driver of change Experts world-wide agree that, at the current population of approximately 7 billion, and increasing at a rate of 75 – 90 million per year, the world’s population is exploding and will continue to balloon, even with reduced fertility and steady death rates, until it reaches an estimated 9.5 billion by around 2050.

This phenomenon, according to some of the ecologists and environmental experts, will continue to manifest itself unabated until the biophysical capacity of the environment, corresponding to sustainable levels of resource consumption, is exceeded. At which point a catastrophic level of decline in the world’s population, due to a range of environmental factors, is expected to occur leading to shrinkage in the world population to a level possibly lower than the current figure. It is a phenomenon ecologists call “Overshoot” and a frightening prediction which implies that your grandchildren and mine as well as young people below the age of 20 will, within the next forty years or so, witness or directly experience unprec-

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

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

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

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

world’s energy and other resources.

Thus experts shudder to imagine a situation where poor nations were to adopt consumption patterns of the west and the implications for resource extraction, utilization and the environment.

It is not just about population growth due to higher birth rates (more than 4 per second) in these regions, but equally importantly about a condition of population migration, which has no respect for borders, that is manifesting itself within parts of the world which, unfortunately, lack the means to avert the catastrophe. The warning sign in Africa is the rate of growth of cities like Gaborone in Botswana, which is significantly driven by an unstoppable and growing net foreign migration rate, possibly at about 10 per 1000 population, from migrant populations looking for economic opportunity and prospects for survival which are non-existent in their own region. Gaborone, like other cities in the developing world, is rapidly becoming cosmopolitan and highly congested.

Its new inhabitants are flowing in, day and night, from all walks of life, and its sphere of influence (metropolis), within a radius of 70 kilometres, now impacts on more than a quarter of the country’s population; a condition which goes far beyond the scope any single and current development programme for the area and all of them put together. Simply put, the Botswana Government, like many others, cannot and will not cope with an emerging world-wide urban crisis; a threat to the current and orthodox form of governance.

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

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

trade, within the new centres of population growth, and in the manner in which it is dominated by Government, State Owned Enterprises and big business, will combine to take the world dangerously close to the limits of sustainability.

The latter school of thought, to which the writer subscribes, argues and predicts that without population control, and given that population seems destined to reach catastrophic levels, democracy faces certain death for as long as it continues to promote monopoly of the means of production and trade and, therefore, impacting negatively on resource consumption, production and environmental capacity - the capacity, amongst others, to produce optimally and cost-effectively. Inherent in this condition, it is argued, is that the role of participatory democracy will necessarily decline. Amidst so many people, politicians cannot, even if they desire, consult the majority except only a select few with vested interest and bad influence, particularly large corporate entities. The position of conflict of interest in which the capitalist model of governance finds itself and the inherent failure to devolve powers to communities is, ironically, its own demise.

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

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

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

BOIDUS FOCUS Thursday 01 March, 2012

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

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

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

In the context of sustainability and human settlements, the example of the Botswana Government’s idea of tackling poverty and the Economic Diversification Drive which focuses not only on mega projects but on the economic empowerment of a people at community and neighbourhood level, based on the urban backyard garden concept, is conceptually spot-on. Questions remain, however, about governance, planning and implementation, an area which the country, like many others, has become increasingly challenged over the years.

It is, however, unfortunate as it appears that some of the politicians and planners conceive of “backyard gardening” using a hoe and a hose-pipe, and have thus attempted to shoot it down.

Whereas informed technocrats, and in the context of sustainable development, understand it to mean roof-top gardens, solar-thermal water walls to promote energy efficiency and independence whilst at the same time integrating hydroponics and aquaculture through treated and recycled domestic waste - water systems that are driven by solar-voltaic and solar-thermal energy, and as technologies that are scalable for direct access, use and benefit to poor communities and households.

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

Editorials Page 5

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

The concept must necessarily be extrapolated, in detail, to impact on governance; a key factor of sustainability.

Sustainable urban communities must be regarded as cities in their own right (cities within cities) which are fully recognized in terms of their capacity to plan and implement projects and programmes, and in terms of their potential as new sources and management of public revenue, community assets, partnerships between stakeholders in those communities, public dialogue, ownership and strategies for more efficient, cost-effective and integrated resource utilization. It is those attributes that will lead to stable residential neighbourhoods, affordable housing planned and delivered according to the choices and priorities of the individual households as opposed to standard housing by a state-owned- enterprise. It is the communities that must develop, sanction the plans and strategies to be employed to infuse public and private sector investment and how such strategies should become complimentary to their own resources and efforts, and not viceversa. Cities must, therefore, be planned around people, by the people and not for people to come to them! This calls for changes in mindsets, new approach and tremendous courage within central and local government to devolve power, reshape the bye-laws and planning codes which are simply outdated and in conflict with and impede the development of sustainable urban eco-systems.

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

Sources and important references: • Population, the Elephant in the Room: by Paul Cherfuka.

• Democracy Cannot Survive Overpopulation: by Albert Bartlett.

• Population, Sustainability and Earth’s Carrying Capacity: by Paul R Ehrlich and Gretchen C Daily.

• Solar Power: The Evolution of Sustainable Architecture: by Sophia and Stefan Behling • Water- The New Carbon: by Mary Haw, PJC Consulting South Africa (presentation at the 2009 GBCSA Convention) © Copyright reserved: Goitsemodimo S Manowe, August 2011: Whilst this article draws significantly from the quoted references and other publications in terms of the correlations between population growth, sustainability and democracy, The link between population growth, control of the means of production and trade, democracy/governance and sustainable architecture incorporating biomass production as a means of survival and new meaning to architecture and a point of departure for Africa, is the writer’s own analysis and hypothesis. The content of the article can be quoted provided that the author is acknowledged in that regard.

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

Botswana Must Secure A Production Of Building Materials Of Its Own

by Jan Wareus, Architect / Town Planner

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

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

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

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

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

These are figures that should make us in the architectural and planning fields a bit uneasy, to say the least. The situation is precarious: We all in the development professions have without much intelligence (but there have been warnings), been picking the easy reach, low hanging fruits for more than two centuries of industrialization. And, gee, what a boom – for a few!

But now we have to face a situation when the fruits are not so easy to reach and we have to pay a price we never considered before. That’s the energy or peak oil bubble.

There is still energy/oil there but to a price we never could imagine (if we didn’t read the warnings). If we are careful in the use of the remaining resources, we might have time to adjust peacefully. But time is slipping and soon it’s too late to adjust in some kind of order. In principle, that’s what I have been saying so far in my Boidus columns.

We here in Botswana have, in my opinion, a quite unique situation. Most of our building material used today is imported and we must pay heavily for transportation. So it has been for many years and no one has said with emphasis – BOTSWANA MUST SECURE A PRODUCTION OF BUILDING MATERIALS OF ITS OWN! We have all the needed resources and hopefully an energy situation that other countries will envy (based on our own recourses, too). The problem, as far as I can see, is that we have not created a local and modern self-sufficient building tradition – we are thoughtlessly copying the so called developed countries that are soon in the gutter. Sky-scrapers, glass, aluminium, steel and more of highly embodied energy stuff, as I indicated in a previous blog, are the theme of the day – imitating the western model.

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

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

I guess there is more to say about Alvar Aalto - interviewed, he was always sparing his words – the quiet creator of art that talked its own language! However, in an inspired situation, he spoke. For instance – “Architecture has often in these days been compared to science and its methods have been endeavoured to become more “scientific”. Even to become a science by itself by including more of complex mathematics. But it is no science – it is a synthetic process, a conglomeration of thousands of important human functions and will be so to the end of humans” (Nov 1940).

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

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

As we have most of the needed raw materials available,

Maitengwe House, Design by YEM

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

Now I happen to know that thatching grass can be commercially grown and harvested like in SA and we currently have to buy our thatch from there to a high price. But this is not necessary. A few hundred small farmers here could plant and grow it and provide for a growing market here.

Maybe, we should start with some small project like Maitengwe and then go on with more substantial, long lasting and reusable building materials?

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

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

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

To conclude this one, I will be quoting Ralph Erskine from his lecture at the Royal Society of Arts in 1982: “Energy is a valuable but not inexhaustible and often much polluting resource. Buildings consequently must be simple and well insulated in both hot and cold climates. The size of windows must be restricted. Glass architecture, often considered to be beautiful, must be regarded as a symbol for a naive, lavish and irresponsible culture. A new and well thought-out, responsible architecture must be worked out.”

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

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

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

Buildings Page 6

BOIDUS FOCUS Thursday 01 March, 2012

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

by Esther Amogelang

Challenges The journey has not been without its challenges. Construction of this development started way back in 2009 at a proposed budget of P320 million and eventually finished within budget at P290 million.

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

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

Brand Names This land mark multi use development, a first of its kind in Botswana, brings to Gaborone among others, the worldknown Holiday Inn Brand, Lonrho Hotel Group and a 3D cinema among others.

We recently sat with the Masa Centre Project Manager, Gian Carlo Fareri and he said the Centre will offer:

“From an exceptional 5 start hotel, exclusive beauty salon, high fashion ladies and gents wear, luxury watches store to stores to fill business needs, the list is endless. And we haven’t even mentioned the selection of restaurants, the wide open piazza and the incredible ambiance that this development offers.

What can be said is that MASA Centre will offer a completely new experience for Gaborone – it will become the aspirational place to be seen.”

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

3

When asked if the project was on time and on budget Masa Centre Project Manager, Gian Carlo Fareri, said the anticipated cost has been controlled by project management and the construction team resulting in higher returns on investment than originally anticipated.

He, however, said the construction cost of the building as estimated is well below the original tendered price.

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

Nevertheless, Carlo said the opening dates of the centre are not yet finalized due to the complexities of shipping.

These, he said, result from some tenants, in accordance with their franchise agreement, waiting for shop fittings to arrive from Europe. The centre will therefore open without fanfare until all stores are open and trading.

The project, he said, has always been exciting and constantly challenged the centre’s resources. He, however, admitted that like any other multi usage project, construction is always a challenge.

Delays were multi faceted, from plan approvals, tenant variations, additions to the original scope of works and tenant confirmation. In spite of those challenges, the centre is still going to bring a sophisticated new multi-faceted centre which will benefit both the tenants, stakeholders, developers and foremost, the population of Botswana.

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

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

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1

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

Masa Centre Ground Floor Plan 1. Porte Cochere 2. Courtyard 3. Garden

Unique experience and service With international brands always coming with challenges, Masa unlike them, was set with a unique base, with less or no challenges at all. According to Carlo, the developers and directors, who have over many years operated in Botswana, always sought to challenge the norm.

Sourcing, securing and locating this hotel was one of the goals and was met head on with deliberation and determination. The quality and prime location of the project ensured the interest of many operators.

Carlo said, unlike the already established hotels in Gaborone, Masa will bring a highly trained team, highly sophisticated meeting facilities, differ-

Masa Centre Hotel bedrooms

Masa Centre Hotel bedrooms

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

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

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

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

BOIDUS FOCUS Thursday 01 March, 2012

Building Feature Page 7

Arctez- Design Of Masa Centre Called For Integrated Approach

by Esther Amogelang / Images © Arctez

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

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

2005 - Initial Concept Design

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

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

•

2007 - Revised Color Scheme

High water table encountered in the foundation and basement parking

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

2007 - Scheme [Birds-eye view]

2011 - Completed Building PROFESSIONAL TEAM: Client: THRE PARTNERS RESORTS Project Managers: Property and Asset Management (PAM) Architects: Arctez Quantity surveyors: GAAM Associates Civil-Structural engineers: ADA Consulting Engineers

Mechanical-electrical engineers: A R Edwards Interior designer: BLACKSMITH interiors Contractor: ICC Landscape contractors: VOM

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

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

TSHIAMO

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

THABO

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

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

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

BF: Minister Mathambo recently announced the freezing of construction projects on his budget speech for 2012.

How will this affect the construction industry?

Construction Industry Architecture Built Environment Arts & Culture Property Investment

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

Government also is taking steps to audit projects through its select audit committees to review ongoing projects.

Their services should be extended to projects before they take off the ground.

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

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

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

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

KILLION

BF: As one of the key visionaries of the design of Masa Centre we would like for you to share with our readers your experiences through the realization of this ambitious project.

• Could you please tell us the vision behind the design of Masa Centre?

• Please also share with our readers any influences that this project drew from.

Feature Analysis Page 8

BOIDUS FOCUS Thursday 01 March, 2012

Construction Industry Outlook 2012 Review and Budget Response by Profess Architects Need to Formally Adopt an Anti-Corruption Code of Practice in efforts to fight corruption in the Construction Industry

Part 1 / A stimulus Package and Unbundling of the Mega Projects Key to Construction Industry Survival

by Keeletsang Dipheko

by Mpho Mooka

Mr. Jode Anderson, Architects Association of Botswana (AAB) President

Linda Moseki, Botswana Institution of Engineers (BEI) President

outcome or decision that does not favour us.

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

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

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

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

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

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

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

JA: We are affected insofar as we must remain vigilant for signs of corruption on our projects.

Also the current focus on corruption tends to make it yet more difficult for public officers to make decisions, which in the final analysis results in increased project costs because of late instructions. And it is an unfortunate fact that we Batswana have a tendency to immediately cry ‘corruption’ whenever we encounter an

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

BF: There are some very serious challenges facing the construction industry that are motivating new approaches to how we design, build, operate, and maintain buildings as well as infrastructure. What is the role of professionals like your association members in helping diversify the economy?

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

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

JA: Perhaps the first step in improving a contractor’s productivity is working to improve how our society views craftsmanship. Although most of us can recognise good workmanship when we see it, we are often unwilling to pay a wage that such workmanship reasonably costs.

Such an attitude makes it very difficult for us to respect a tradesman – generally we respect wealth, and construction tradesmen are NOT wealthy. So we need to encourage our fellow citizens to both demand good workmanship and be prepared to pay for it. Beyond that, our trades schools need to soberly review the outcomes that they expect of their students, as the skill quality of their ‘graduates’ is too poor.

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

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

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

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

Moseki reiterates by requesting the government to intervene for the sake of employment generation and continuity of business in the industry and also ensuring that there is transparency in the tendering system. With the possible double recession looming as alluded to by the Minister of Finance, the future is bleak for the Industry.

The Industry may have to either consider outside markets for greener pastures or increase the current high numbers of unemployment.

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

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

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BOIDUS FOCUS Thursday 01 March, 2012

Feature Analysis Page 9

sional Bodies / Boidus talks with AAB, ABCON, BIE, CRSG Bailout Package against the Natural Rule of Survival Of The Fittest Mr. Allen Wang, China Railway Seventh Group (CRSG) Director

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

by Keeletsang Dipheko ruption in the industry?

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

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

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

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

BF: We are in 2012, industries are looking to remain active in the market amid effects of global recession, as one of the professional body representing contractors in the industry can you share with us how you see 2012 being in the construction industry?

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

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

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

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

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

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

What are your comments on the issues of cor-

AW: Effective communications with the engineer and the employer may help curbing this matter.

BF: There are some very serious challenges facing the construction industry that are motivating new approaches to how we design, build, operate, and maintain buildings as well as infrastructure.

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

AW: Creating training opportunities for local employees of different levels and recruiting specialist management staff.

BF: What are other issues that your industry is currently experiencing that you would like to highlight for our readers?

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

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

Again, every contractor shall be advised to tender reasonably and rationally for the new coming projects, try together to avoid cut-throat competition.

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

Construction Industry Architecture Built Environment Arts & Culture Property Investment

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

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

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

Besides the severe effects of a tight budget, the industry still faces other big challenges such as corruption. He concurs with the Minister of Infrastructure, Science and Technology, Mr Johnny Swartz, that the whole industry is affected by the issue of corruption due to the fact that the issue is applied across the industry with no exceptions. “We are all affected as we are all brushed with the same brush”, he said.

However, he stated as a professional body, ABCON has always promoted good governance and transparency in their dealings. It should be noted that ABCON has since its inception in 1977 promoted good corporate governance and transparent business dealings amongst its members, their clients and customers. We have no knowledge of members being prosecuted for any wrongdoings in their contracts with Government or private contracts.”

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

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

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

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

On the other hand contractors need to improve their education and productivity to remain competitive, however, van Rensburg stated that the current economic prospects of little or no work do not motivate contractors to do that; consequently when work eventually comes there is shortage of skills and expertise.

“With little or no work there can be no planning for education and productivity and as a result, when work does come out, there is a shortage of capacity in the industry, therefore the proposal to Government by BOCCIM in collaboration with construction industry bodies, for better planning and execution of public projects. Botswana and its economy is too small to have the luxury of not planning public spending properly.”

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

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

Main Feature Page 10

BOIDUS FOCUS Thursday 01 March, 2012

Tourism Investment & Real Estate Development Opportunities in Botswana

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

Chobe, which of course brought money and tourists in Botswana, but its time the industry look for something different, or rather change a location. There are so many opportunities out there to diversify the tourism products.

• Lily Rakorong

OPPORTUNITIES FOR DIVERSIFYING THE TOURISM PRODUCT According to Ms Lily Rakorong, public relations and marketing manager of Hospitality and Tourism Association of Botswana (HATAB), opportunities in Botswana’s Tourism sector are immense.

She said the industry is prime for investment; even with all the existing hotel developments that are present; there is still constant shortage of hotel beds in the country. She specifically highlighted that because tourism cuts across all sectors of the economy, value chain opportunities associated with tourism are plentiful. Asked about the opportunities for the built environment in the tourism sector, Ms Lily Rakorong said the Tourism industry in Botswana is still small and there are opportunities in infrastructure development such as hotels, motels, cultural and heritage centres, entertainment and many other related services. ‘Our industry offers not alternative to wildlife based products. If visitors want to do something else apart safaris, what else can they do? In our cities, where are entertainment areas, nightclubs, theatres, cultural activities….the list is endless’ The Botswana Tourism industry has for the past pride themselves with ‘must see’’ places like Okavango Delta and

• •

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

• Licensing: Botswana’s Travel & Tourism institutional structure is currently too complex and bureaucratic according to World Travel & Tourism Council (WTTC). WTTC/ Oxford Economics recommend that Botswana Tourism Organization become a ‘one-stop shop’ for tourism investors – a similar role

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

Funding Capital Tourism Investments Access to land Training

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

BTO is also however noted to acknowledge problems in Botswana tourism sector. Some of the challenges includes poor infrastructure. BTO executive, Tafa Tafa, mentioned, in recent press reports access, especially air access is one of the problems facing the tourists coming to Botswana. For that reason most of them use road in order to save costs.

He said limited flight on existing routes, lack of scheduled flight linking different tourists attractions were also impacting on the tourism industry. In order to address such problems he said, there is a need for continuous consultation and dialogue between stakeholders in the aviation industry & tourism sector.

Note: This essay was prepared with reference to WTTC 2011 Report Botswana.

All graphs and statistics - WTTC Report

Unexplored Opportunities for Investment According to a report by The World Conservation Union, ‘A Guide to Starting a Tourism Enterprise in Botswana’, there is a long list of exciting, new and unique services and products to select from for the type of tourismrelated business that are prime for investment: Accommodation in Infrastructure Hotels, Motels Guest house/Bed & Breakfast (B&B), Backpackers’ hostels, Ranch, farm, cattle post lodgings, Tourist campsites, and picnic sites Travel and Guide Travel and tour operations, Photographic safaris, hunting safaris Travel/tour agencies/sub-agencies, guiding services, walking trails Bird watching tours, Horse riding, Hot air ballooning, Parachuting Extreme and Outdoor Activities • Desert/bush survival courses, Fishing (commercial) camps, Houseboats, Camping equipment hire • Boat station, Film industry outfitter • Eco Tourism • Traditional cuisine - restaurants, cafes, food stalls/outlets, Traditional bars • Cultural centres, Dance and theatre groups, Traditional storytelling and games, Gathering veld products and tracking wildlife, Traditional music, Curio and craft factories, Curio and craft, outlets, Visits to traditional healers - medicine Flora and Fauna Snake/reptile parks, aviaries, butterfly farms, Botanical gardens Archi-tourism, Urban Tourism Landmarks and iconic developments, City landmarks and urban culture

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

BOIDUS FOCUS Thursday 01 March, 2012

Boidus Exclusive Page 11

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

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

by Boidus Admin

>>> FROM PAGE 01

Contact: Dr HENRI COMRIE Email: henri@comwilkcape.co.za BF: You have just delivered a lecture at the University of Botswana, could you briefly share with our readers what the core theme or focus of your lecture was?

HC: I have a strong link to the University of Botswana through Moemedi Gabana who teaches in the School of Architecture and who invited me to give the lecture. I met Moemedi at Oxford Brookes University where we both studied ten years ago. The lecture was a general overview of my work in practice and focused more on my architecture work than my urban design work.

In the talk I tried to demonstrate how contextual influences generated different responses in each of the projects. I would like to return at some time in the future to give a more focused lecture on my urban design work.

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

HC: I studied architecture at the University of Pretoria where I graduated in 1991. This was followed by postgraduate studies in urban design at the University of the Witwatersrand where I obtained a Masters degree in Urban Design in 1995. I won a Commonwealth Scholarship in 1999 and studied towards a PhD in urban design at

Oxford Brookes University and the University of Greenwich under Professor Richard Hayward from 2000 to 2003.

My architecture is greatly influenced by an urban environmental awareness. I have practiced as an architect in South Africa, Namibia and the United Kingdom and I have enjoyed working at different scales, from small family houses to large public projects such as the Cape Town Stadium. The majority of work was won through architectural competitions.

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

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

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

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

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

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

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

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

HC: It was nice to prove the Afro-pessimists sitting in America, Europe and Australia wrong! A project of this significance is a once in a lifetime opportunity that brought the best out in everyone, from the professionals, to the city officials, to the labourers on site.

It was a major boost for South Africa’s confidence. The sort of pressure that this project created made it possible for people to forget their petty differences and to work towards a common cause. The words ‘’team effort” and “powers of human endeavour” assumed a new meaning for me.

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

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

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

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

HC: Densification is without a doubt the silver bullet of sustainable practice. In Africa we intuitively shy away from this because of our strong attachment to the land...

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

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

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

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

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

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

BF: Architecture is increasingly dominated by technology and new software.

What type of software does your firm use and how is this helping you achieve the design you aim for?

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

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

By the time the recession has blown over architects’ professional status will have been eroded and a precedent of poor buildings will be evident.

On the down side, I cannot fail to notice that new developments generally disappoint at one fundamental level and that is the way in which buildings meet and relate to other buildings at the pedestrian level...

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

Property / Financing Page 12

BOIDUS FOCUS Thursday 01 March, 2012

Property Market Outlook for 2012

Business Development Manager Nkwebi Maswikiti

by Boidus Admin / Contact: Nkwebi Maswikiti, Email: maswikiti@bbs.co.bw

terms of options for youth going into 2012?

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

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

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

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

NM: Definitely a seller’s market right now with property sale prices bordering on the high side. Botswana’s property market has stayed surprisingly resilient during both the recession and the rumoured double dip considering that no mass repossessions or land seizures have been reported due to the government and local industries bearing the full brunt of the recession’s adverse effects by consciously making the decision not to layoff workers.

This decision translated to a somewhat stable income stream on households on a micro level leading to insulation of the average Motswana from feeling the full extent of the recession as felt by the first world countries.

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

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

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

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

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

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

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

NM: My belief is that property investment is a timeless endeavour; I believe that one must strike at a good property deal without blinking however, be wary of the prevailing property environment when making investment decisions. For instance; The following questions must be considered.

• Location, Location, Location? need I say more?

• What type of property would one like to invest in?

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

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

• Is there a market out there for this type of property in terms of rental or is there a prevailing value added benefit one would receive from owner occupation?

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

NM: One must understand that banks look at 3 major aspects when looking at an applicant who is applying for a loan; 1. Affordability 2. Security 3. Client & portfolio risk When a client is considering investing in property he/ she must be able to prove that they can afford the repayment, this is done by submitting proof of income streams i.e. payslips, bank statements and financial statements.

Client must also submit all relevant identity documents.

The client must be able to prove beyond benefit of doubt that the security (being the property) is in good condition and in a reasonable location (some banks don’t finance certain locations as they are viewed too risky).

The next step which I feel should be the first is that the prospective investor must show immaculate account conduct at least 6 months in advance of applying for the loan.

This is to me the most important step because it directly affects the interest rate corresponding to the risk the bank is taking in lending to the client. Banks have a tendency to convert risk to revenue therefore high interest charge on a loan translates to your credit and risk rating.

The last step is to find a potential property investment.

Work out your value benefit or profit margins should you decide to sell (Present and future). After having completed these entire steps one can approach the banks for financing assistance.

2012 BUDGET SPEECH EXTRACT

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

by Boidus Admin / Source: MFDP Development Budget

Maintenance of Government Assets

69. Madam Speaker, as indicated in the Budget Strategy Paper for 2012/13, priority has been given to on-going projects, refurbishment of existing infrastructure, poverty eradication initiatives and projects aimed at reducing unemployment. The recommended development budget for the 2012/13 financial year is P10.06 billion.

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

71. The second largest allocation of 20.9 percent goes to the Ministry of Transport and Communications at P2.10 billion to cover on-going and new projects that include the Kasane Airport, Charleshill to Ncojane road and Tonota to Francistown road as well as associated bridges of Shashe, Tholodi and Tati.

The allocation also covers the cost of construction of the new Kazungula and Thamalakane bridges. In addition, an allocation of P100 million has been made towards the e-government programme.

The Ministry of Local Government at P1.18 billion takes the third largest share. Prominent among the Ministry’s development initiatives are the Ipelegeng and Village Infrastructure projects.

These take a major share of the budget at P530 million and P272.2 million, respectively and account for 68 percent of the total Ministry’s development budget. In addition, an allocation of...

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

...The remaining Ministries/Departments share the remainder of the development budget.

74. Project implementation, management and overall cost; continue to be a challenge in Government. This is largely due to delays in start and completion of projects, over specification of designs, and change in scope of on-going projects which result in cost overruns. To address this problem, the Department of Buildings and Engineering Services has instituted audit and inspection teams to review and audit all project designs and monitor implementation of projects with a view to introducing stringent controls to avert over specification of designs, change in scope of on-going projects as 18 well as contain costs within budget. Furthermore, the Public Finance Management Reforms Programme introduced in my Ministry will also assist in addressing the issue of timely implementation of projects through the introduction of procurement plans; adoption by 2016 of a three year estimate of fiscal aggregates; and having three year rolling estimates for the budget instead of discrete annual budgets as is the case now. These initiatives will allow for better planning and implementation of programmes and projects.

Industry Stakeholders Response to the Budget Speech, 2012-13 The 2012/2013 Budget speech has been released recently and it continued austerity measures of 2011/2012, especially with the continued freeze of both new government projects and employment.

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

“The Construction Industry will probably close down even further with more job losses and company closures as well as losses of trained and skilled personnel in the process.”

- ABCON, Nic van Rensburg

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

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

- AAB, Jode Anderson

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

- BOCCIM, Bino Magano

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

- CRSG, Allen Wang

BOIDUS FOCUS Thursday 01 March, 2012

Comments Page 13

by H. Killion Mokwete, RIBA Chartered Architect

We are meeting after the Budget Speech for 2012/2013 by the Ministry of Finance and Development Planning which continued government austerity measures to achieve a balanced budget in 2012. Affected most is the Construction Industry, especially the building sector. Although the austerity measures will resonate well with International Monetary authorities such as IMF and others, the reality on the ground is greatly bleak for professionals and firms. Government’s continued cut on new projects is, at best, making it terribly difficult for many to stay relevant. Although in most established economies cut backs on government side are offset by the private sector, the section in our local economy might be greatly different.

The Bailout proposal for the construction industry submitted to the Ministry of Finance and Development Planning was a sign of the dire straits the industry is in. The fact that nothing was done in favour of maintenance work is very worrying.

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

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

The Construction industry, however, needs to explore ways of picking up self reliance and making good out of a bad situation. The industry needs to introspect and come together and explore ways and chances of diversification in the economy. The industry can not wait for government to change its mind while the industry continues to lose personnel and back-bone.

The industry needs to look for alternative opportunities not only within our borders but also beyond our borders within the big African market.

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Debate: Budget Speech Response and Feedback

Boidus Botswana: So the budget speech came and went without much of a fuss.

Obviously our tabloid papers are distracted by our circus politics while the budget is relegated to the inner pages. My question is; with so much money allocated to the renovation and maintenance of government buildings again…which are these buildings and who is eligible to this lucrative work? Is it open to established architects and the usual industry professionals or is this a new niche market for the Tenderpreneurs with the inside info?

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

cated for their maintenance

Jan Wareus: I'm really astonished - remember that the Minister is educated

by World Bank and IMF, as well as Mogae was a pupil of Thatcher. And he is now actually apologising like Mr Greenspan for past mistakes, if you read with some sense of history. He is givng us a second chance, indeed! I see much positive things in his budget speech!

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

Parliamentry Debates

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

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

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

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

Lastly, and on a more general term, in-

vest money in something that you are passionate about.

Boidus Botswana: SHORTAGE OF ACCOMMODATION FOR CIVIL SERVANTS HASSLE There is a nationwide shortage of accommodation for civil servants in Botswana, including Tswapong North Constituency.

Housing for public officers in the district is provided through district and institutional housing programme whereby either new housing units are constructed or purchased from the market.

However minister of lands and hosing Mr. Mokalake says given the ever growing demand for houses by public officers coupled with the limited financial resources, He is unable to definitively state the time period within which to solve the nationwide shortage of accommodation for civil servants.

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

“I wish to state that due to competing national priorities, Government alone cannot solve the accommodation shortage for public officers. In this regard, Government continues to implement various programmes aimed at enhancing home development and facilitating home ownership in the country in partnership with stakeholders.

These amongst others include; provision of housing through BHC, allocation of plots to individuals and private companies and guarantee of loans to civil servants through Government Employee Motor Vehicle and Residential Advance Scheme, as well as through BBS (Botswana Building Society).”

KILLION

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

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

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

Boidus Pty. Ltd. POSTAL ADDRESS > P.O. Box 50097, Gaborone mail@boidus.co.bw PHYSICAL ADDRESS > Ko-i-nor House, Office 11 Main Mall, Gaborone

NTHWANA, on 'Budget Speech 2012' [www.boidus.co.bw]

send your details to:

I like the way you phrased it “..spending your way out of the recession”

KILLION

THABO

TSHIAMO

+267 755 05 291 killion@boidus.co.bw

+267 71501301 thabo@boidus.co.bw

+267 751 41 236 tshiamo@boidus.co.bw

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

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

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

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

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 Thursday 01 March, 2012

Process of Obtaining Tourism Related License in Botswana

by Boidus Admin

Obtaining tourism related licence is a very challenging process in Botswana.

According to WTTC, Botswana’s Travel & Tourism institutional structure is currently too complex and bureaucratic.

Though Botswana has seen tremendous growth in its tourism industry since its real inception the processes of obtaining a licence is a challenge, Up

to 15 different government authorizations can be requested at the present time to initiate and operate a campsite or lodge. However this process needs to be simplified, especially if smaller, local investors are to be encouraged.

The WTTC encourage a one stop shop for tourism investors in a similar role to the one undertaken by the Botswana

Export Development and Investment Authority for other industries.

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

LICENCES FROM THE DEPARTMENT OF TOURISM

[Based a report by the World Conservation Union, ‘A Guide To Starting A Tourism Enterprise In Botswana', By Pete Hancock And Frank Potts’] The most important licence from the Department of Tourism is the Tourism Enterprise Licence. Everybody wishing to carry out tourism operations, including community-based tourism enterprises requires it. When the Tourism Act was passed in 1992, it became law for all tourist enterprises to be licensed. The First Schedule of the Act describes four categories of tourist enterprises, each of which has its own licence.

4 types of Tourism Enterprise Licences Category Tourist Enterprise • Operations that offer facilities only on site, such as hotels, motels, guest houses* and apartments; • Operations that offer facilities on and off site, such as tourist camps, lodges, caravans, hunting camps and tented tourist camps, which also operate tours which require the services of professional guides or professional hunters licensed under the Wildlife Conservation and National Parks Act, 1992; • Operations that offer facilities off site only, such as safari tour operators, and any enterprise that receives and transports travellers and guests, providing them with sleeping accommodation and food beverages in equipment that is not geographically fixed; and • Operations that act as agents only, such as travel agents.

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

The procedure to obtain a Tourism Enterprise Licence Fill in the application form in detail. The application form is written specifically for companies, not for Trusts, although Community Trusts definitely have to have Tourism Enterprise Licences. This means that when a CBO completes the application form, it is advisable to get some assistance from the nearest Tourism Office. For example, where the application form refers to the Directors of the Company, the information required is about the members of the Board of Trustees. Other questions though, apply in both cases e.g. questions about existing premises apply to companies and Trusts; > Attach a copy of the Deed of Trust in the case of a CBO; > Include the details of the members of the Board of Trustees e.g. their Omangs, CVs etc.; > Include a copy of the Head-lease for a CHA (if any), and the Title Deed or Lease Agreement for any other land used for the business (if any). Most community-based tourism enterprises to date have been centred around community CHAs, and the Head-lease is important to show the Tourism Licensing Board that the community has proper, legal access to the necessary land. However, the CBO may have offices or other tourism ventures inside or outside the CHA e.g. a bookings office in a nearby town, and this is where Title Deeds or lease agreements come in. The Land Board needs to be sure that the enterprise they will be licensing complies with other regulations; > Eight copies of the Business Plan must be submitted.

This is straightforward - can you see how important your business plan is? Without it, you will not be able to obtain a Tourism Enterprise Licence; > Technical/architectural drawings and plans for any buildings approved by Council must be attached. If the proposed tourism business requires any buildings e.g. tourist

accommodation, booking office, restaurant, curio shop etc. (especially in towns or villages) the plans must be approved by Council and submitted with the application; > and finally, the Certificate of Change of Land Use must be attached, where applicable. This Certificate would be needed in a case when, for example, a residential plot is intended for use as a commercial plot, and the change in use has been approved by Land Board.

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

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

DIY and Home Improvements How to Lay Laminate Flooring

by Boidus Admin / Source: www.channel4.com

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

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

Budget Packs start from around P74.95per sq metre Time One to two days for a room less than 20sq metre Skill Medium You will need: Laminate floor packs, Adhesive (unless you've chosen 'click-together' flooring), Underlay, Craft knife, Drill, 20mm wood bit, Panel saw, Tape measure, Spacer blocks, Fitting tool & edging block (unless you've chosen 'click-together' flooring), Hammer, Try square, Panel pins, Quadrant moulding Step 1: Lay the Underlay Take off any inward-opening doors before starting work to make the job easier. Remove your shoes when fitting the boards to avoid grit on your shoes marking the surface. Vacuum the floor to remove any grit and fit either underlay boards or a purpose-made sheet underlay. This will dampen the noise when walking on the boards and give a cushioning effect to make the floor 'feel' more comfortable.

Step 2: Lay the First Board

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

National Licensing Authority This is in the Ministry of Trade and Industry, and issues the following licences (some of which may be needed for certain tourism-related businesses): ….Travel agency licence; Hairdressing licence; General trading licence; Pharmacy licence; Fresh produce licence; Filling station, garage and workshop licence; and Dry cleaning and laundry licence.

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

When applying for any of the above-mentioned licences, your application should be supported (where relevant) by the following documents: • Health Inspector’s Report on premises or approved plans: • Title Deed or lease agreement; • Bank statements to indicate financial position or source of income; • Deed of Trust; • Covering letter explaining how the business is to be operated; and • Letters from prospective suppliers and buyers to indicate market area to be covered.

Place plastic spacers at 60cm intervals along the longest straight wall and lay the first row of boards with the groove side facing the wall, starting from a corner. The spacers must be wide enough to form the recommended expansion gap all around the edge of the floor. The ends of the boards are tongued and grooved which are joined by squeezing a bead of glue along the top of the tongue and groove. Click together flooring won't need adhesive. You will probably need to cut the last board of the row to fit. Mark it with a try square and saw, with the finished surface facing up.

Step 3: Work Flow Begin the next row, starting with the off-cut of the board used at the end of the first row. Always stagger the end joints of adjacent rows by at least 30cm. Use the fitting tool to push the ends of the boards together as you work. Continue across the room, pushing the completed rows firmly together and adding more plastic spacers along the two side walls. Force each board together by gently tapping the edge block against the grooved side of each board.

Step 4: Working Around Pipes Make holes for central heating pipes by marking the position of the pipe on the board to be laid. Drill a hole about 5mm larger in diameter than the pipe.

Make two angled saw cuts from the edge of the board to the sides of the drilled hole. Fit the board and carefully glue the small off-cut wedge behind the pipe. There must an expansion gap all the way around the pipe.

Step 5: Finishing Off Either replace the skirting board over the new boards or fix a decorative quadrant moulding over the expansion gap around the edge of the floor. Pin the moulding to the skirting board and paint or varnish. Finally, fit a metal or wooden threshold over the edge of the flooring at all doorways.

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

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