Boidus Focus - Vol 4, Issue 9 [Oct 2014]

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BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER

www.boidus.co.bw | Importance of 07 The Property Valuation

| Volume 4, Issue 9 |OCTOBER 2014

Designer 08 Lifestylenoted: Secrets for Small Spaces

time bars 22 Claims, and the JCC

BOIDUS FEATURE >

CBD EXECUTIVE SEMINAR 2014

Exclusive feature-Boidus November Edition

BOIDUS EXCLUSIVE >

Explores Infrastructure Development Through PPPs

by Kibo Ngowi

Government Seizes Undeveloped CBD Plots

How will this affect the local property market?

Boidus speaks to an Economist, DTRP, and a Lawyer

by Kibo Ngowi Gaborone’s embattled CBD was once envisioned to be the commercial centre of the Capital City but various factors have made this dream increasingly unlikely to become reality. The latest twist in the CBD saga is a decision by government to seize no less than 5 plots in the

AIIM: In pursuit of a successful PPP, some suggestions include; • Keep it simple and replicate where possible • See PPP as a partnership, not a master servant relationship • Go for the low hanging fruit. Don’t try the big and fancy one first • Let the private sector make money in the process

BPOPF: There is capital to invest in Botswana’s Infrastructure Projects; • What's the infrastructure gap in Botswana?

• Pressure on existing infrastructure • Need to rehabilitate and develop new infrastructure

Infrastructure Investment Opportunities • Mining Museum opportunity Selibe Phikwe • Revenue-generating PPP-compliant Facilities (major ones )- Palapye »» Staff Residences »» Student Dormitories »» University Farms »» University Air Strip »» University Shops

Held at Lansmore & Masa Centre on the 10th October 2014, Boidus Media brought together key high-level stakeholders to explore the investment opportunities in infrastructure development through Public Private Partnerships (PPP’s) that Botswana has to offer and to draw lessons from across the African continent.

CONTINUED IN CBD PULLOUT

area on the grounds that the registered owners failed to develop commercial property on their pieces of land. Boidus Focus finds out what this means for the CBD and the Botswana property market in general.

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Botswana’s Property Market Platforms On The Rise

REIB and Baisago University Launches an Annual Property Conference

by Kibo Ngowi The need for dialogue amongst stakeholders in Botswana’s building and construction industry is increasingly being recognised as a vital necessity to ensure its continued survival.

In September the 1st Annual Airport Junction Builder’s Expo and PPC Construction Summit was held while last Friday Boidus Media hosted our second annual CBD Executive Seminar.

This week Ba-Isago University College and the Real Estate Institute of

Botswana will jointly host a Real Estate Conference while the fourth annual Property, Investment, Lifestyle and Décor Expo simultaneously takes place at the same venue. These are indeed exciting times for Botswana’s built environment industry and Boidus Focus is there to see it all. Find out what to expect from the upcoming Real Estate Conference and the Property, Investment, Lifestyle and Décor Expo inside.

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Local News Page 2

BOIDUS FOCUS October 2014

News Briefs

Compiled by Keeletsang P. Dipheko

Mokalake raises fears of corruption scaring away investors in Botswana

Bank Gaborone offers free valuation for mortgages

By Keeletsang P. Dipheko

Minister of Lands and Housing Honourable Lebonaamang Mokalake launched the Anti-Corruption Policy Statement in Francistown this past month. The policy seeks to develop and strengthen leadership management capacity and to encourage participation of staff in the fight against corruption. This is expected to be achieved through regular evaluation of corruption and risk prone areas, systems, procedures and processes by ensuring that projects have clearly formulated goals and deliverables. It will also provide guidance to employees, stakeholders, Internal Auditors and Corruption Prevention Committees on structures and procedures the Ministry has to counter corruption.

BTCL IPO REACHES ITS FINAL STAGE The Botswana Telecommunications Corporation Limited (BTCL) Initial Public Offering (IPO) has now reached an advanced stage. The Minister of Transport and Communications (MTC) Honourable Nonofo Molefhi has revealed that the IPO has been rescheduled to take place on Friday 7th November 2014. MTC, Public Enterprise Evaluation Privatisation Agency (PEEPA) and BTCL will soon commence a programme aimed at sensitising and educating the public on issues relating to the BTCL IPO. Government will be offering a total of 49% of the company’s shares: 44% will be for purchase by citizens and citizen companies while the remaining 5% will be retained for BTCL employees.

COMPETITION COMMISSION LIFTS A MULTI MILLION PULA TENDER SUSPENSION

Bank Gaborone has launched a free valuation campaign for homebuyers. ‘Mosasana home loan’ runs from 1st September to 31st December this year and aims to promote homeownership.

The tender, which was awarded to K-Build Hardware and Ambica Trading, was suspended to allow the body to complete its investigations, following allegations of bid rigging. The authority alleged that the companies that won the tender colluded in their application. While only one tender was released, both companies won it, which convinced the commission to suspend it. Although the competition watchdog would not reveal what sort of bid rigging occurred, it stated that preliminary inquiries had established that there were evident con¬traventions of the Competition Act and other improprieties in the award of the tender.

In an exclusive interview with Boidus Focus, Bank Gaborone Marketing and Corporate Communications Manager Sandra Mokobi said the bank was motivated to run this campaign by a desire to make homeownership more affordable. Homeownership in Botswana can be quite expensive, she explains, especially because there are additional costs that one has to incur before securing the loan from a bank, including valuation and legal services.

MINISTRY OF TRANSPORT AND COMMUNICATIONS TIES PARASTATALS TO PERFORMANCE CONTRACTS

Mokobi explained that Bank Gaborone offers three kinds of home loans: “The first kind allows you to buy property that already exists; you can also buy vacant land or acquire buildings which are divided into individual and commercial.” She added that free valuation ap-

The Ministry of Transport and Communications has signed shareholders compact agreements with four of its parastatal organisations. The signing was done by the Minister and Board Chairpersons of parastatal bodies under the ministry including Botswana Fibre Networks, Botswana Railways, Botswana Telecommunications Corporation Limited and Civil Aviation Authority of Botswana. The shareholder compact aims to reinforce relations between the parastatal Board Chairpersons and ministry management and to align the performance expectations of Parastatals for effective monitoring. The minister explained that the shareholder compact would focus on effective monitoring of the parastatals’ performance expectations.

GOVERNMENT CALLS ON PRIVATE SECTOR TO PARTICIPATE IN PPP PROJECTS The Minister of Infrastructure Science and Technology Honourable Johnie Swartz has urged the private sector to participate in Public Private Partnerships to help the government to deliver key projects. Swartz said there is an opportunity for the private sector to come and advise the government on how to go about implementing some of the projects which they are not able to execute due to limited resources. Projects for which government has hinted at partnering with the private sector in the past include the Walvis Bay Corridor, the Trans Kalahari Railway line, Kazungula Bridge and the Botswana International University of Science and Technology (BIUST).

ROADFREIGHT 8-36 tons Bulk transport (tiper) Contract distribution services Refrigerated trucks Deliveries of sand, gravel & aggregates

Consolidations from Johannesburg Crane trucks Truck and from-end loader hire

Behind kgale quarries/private bag B06 We also have offices in Johannesburg

plies to individual property being purchased either by an individual or a business but the bank will only consider waving the valuation fee for a company that is acquiring a house for non-commercial purposes. The bank offers up to 90 percent of the open value market or purchase price of building cost.

Explaining how the campaign will make loans affordable, she said valuation is a prerequisite for securing a home loan; a person cannot be given a home loan by any bank until and unless they meet the criteria for the valuation of the property as it’s the valuation that will determine how much the bank can actually offer in terms of the loan.

“It can get quite expensive, so if there is an instance where there is a fee that the client doesn’t have to pay it automatically makes it more affordable so we believe that taking the valuation of the client will definitely make it more affordable.” Sandra said they are also considering the first time home buyers as they realised it can really assist those people who have only recently started working.

When asked why they decided to run the campaign during this period, Mokobi said they are targeting the time when people are looking for new things going into the New Year. It’s also a time when people are receiving bonus cheques so there seems to be excess disposable income towards the end of the year. She said they will consider extending the campaign to run until January depending on how it performs.

BOIDUS FOCUS October 2014

Advertising Page 3

Boidus Feature Page 4

BOIDUS FOCUS October 2014

Government Seizes Undeveloped CBD Plots

by Kibo Ngowi

AN ECONOMIST WEIGHS IN ON THE SEIZURE The potential economic impact of government’s decision to seize five pieces of land in one of the country’s highest profile commercial precincts cannot be understated. Boidus Focus spoke to independent economist Mr. Keith Jefferies to gain more insight on the economic factors at play in the CBD.

BF:

What effect is the enforcement of the CBD development covenant likely to have on the overall property market?

KJ: Probably not much effect. The CBD market

CONTINUED FROM THE FRONT PAGE

An announcement in the Government Gazette, signed by President Khama, revealed that five plots in Gaborone’s CBD would be seized by government.

In the case of all five plots the decision has been taken due to the fact that “the registered owner of the said Lot failed to comply with condition 2(a) of the Deed of Fixed Period State Grant in that it failed to erect a building to be used for commercial purposes,” states the notice.

The announcement further states that Government would pay the registered owners of each of the said plots 80 percent of the prices at which the properties were purchased from the state. “Any person objecting to such forfeiture must lodge a notice of objection with the Attorney General within 30 days of the second publication of this notice, setting out the reason(s) why the said Deeds of Fixed State Grant should not be cancelled by the Registrar of Deeds,” it adds.

All five plots are located in the Gaborone West Extension 9 of the CBD and they are: • Lot 54348, measuring 8, 774 metres square and leased to Mr. Benedict Mabeo since 4th March 2008; • Lot No. 54350, measuring 8, 844 metres square and leased to Estate Construction (Proprietary) Limited since 20th February 2009; • Plot 54366, measuring 10, 131 metres square and leased to M3 Consulting (Proprietary) Limited since 17th September 2013; • Plot 54363, measuring 9, 652 metres square and leased to Monatop (Proprietary) Limited since 27th September 2010; • Lot 54361, measuring 10, 241 metres square and leased to Keboife Holdings (Proprietary) Limited since 9th September 2008.

is saturated and the owners were not in a position to develop the plots, so the fact that they are being taken back and presumably will be reallocated at some point in the future is probably a good thing in terms of a proper phasing of CBD development, especially if the reallocation is delayed for a while. It is also good that the terms of the land allocation contract and development covenant are being enforced – the failure to generally enforce development covenants has been a big weakness of the Botswana land allocation system. Having said that, two years is far too short a period for a development covenant given the magnitude of the developments required in the CBD, although, in this case, my understanding is that the repossession is actually taking place some five years after the lots were allocated, so in fact a lot of leniency has been shown to the owners and they were given several extra years to develop.

BF:

What could have been some of the factors that contributed to peoples’ inability to develop?

KJ:

Clearly the CBD property market is saturated, with a lot of development in a short period of time, so it is not surprising that the owners were unable to develop – there is insufficient demand to absorb even more space and hence further projects cannot be financed at the present time.

BF:

What are your thoughts on the way the development of the CBD has generally been handled thus far?

KJ:

The way in which the CBD development has been handled has many shortcomings. First, more attention should have been paid to the absorptive capacity of the market – it should have been obvious that the market could not absorb a large volume of development all being undertaken in one place in a short period of time. Hence the development should have been phased – which may have

required phased plot allocations or staged development covenants – such that the CBD properties were developed over a longer period, say 20 years, during which the market would be more able to absorb the new space. Because of the lack of demand and absorptive capacity, it is obvious that financial institutions would be unable to finance developments that did not have a market.

Second, the development of the CBD should have been done hand-in-hand with the provision of sufficient supporting infrastructure. The most obvious gaps are the lack of access roads, particularly those across Nelson Mandela drive, which means that there is severe traffic congestion at peak hours.

There also needs to be pedestrian access from the CBD to the bus rank, to avoid the very dangerous road crossing for pedestrians.

Third, there should have been more mixed use development (residential/commercial/ office) in order to help develop a more community feel rather than have the area dying at night. This would also allow development patterns to follow the needs of the market more closely, rather than being determined at the whim of planners, who may know very little about the market and what is commercially viable.

Fourth, government should be bound by its own rules regarding developments. For instance, the High Court should not have been exempted from the height requirements applicable to everyone else.

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BOIDUS FOCUS October 2014

PART

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Consumer Education Page 5

Essay 2

PRACTICAL ADVICE GUIDE

October 2014

Types of mortgages and mortgage loans offered by BBS

This educational column focuses on the types of mortgages offered at Botswana Building Society.

In the last segment titled “steps to follow when applying for a mortgage loan”, we discussed the BBS mortgage requirements. We hope you were able to appreciatewhat we covered. We await any enquiries or clarity that you might seek pertaining to the requirements which were discussed.

In this segment, we would like to explain the types of mortgage that BBS has so that you can identify one that is relevant to your needs. Therefore, the types of mortgage are: Ordinary Mortgage Loan This loan is for when one acquires a complete property or a complete structure.

Building Loan A building loan is used to develop property or to purchase an already existing but incomplete structure.

Refinance or further advance The loan is provided as an additional loan for the extension of an existing property. It can also be used for an already existing property improvement, such as swimming pool construction and paving the yard.

The funds can also be used to buy another property or clear other existing loans. The requirements for this loan will, therefore, depend on the purpose for which the loan is being sought.

Re-Advance The loan allows you to release funds or equity when the value of the property has gone up, or appreciated, and the loan amount has reduced. In this case there is non-involvement of Conveyancer or Attorney as Bonds are already registered in favour of the Society.

Free Hold Land Financing This loan allows you to purchase undeveloped land which has unrestricted ownership. Customers are given a period of seven years to repay the loan.

Home loan A home loan is acquired only when one purchases or builds a residential property.

Commercial loan The loan is used to finance commercial and industrial property development or acquisition such as offices, shopping malls, warehouses, schools, multi residential property for rental, etc.

Interest rate structures BBS has two mortgage interest rate structures, which help to determine the interest rate you pay and the loan tenure.

Variable Rate Loans A variable interest rate loan, also known as an adjust-

able interest rate loan, is one in which the interest rate charged on the outstanding balance varies as the bank rate changes. It is driven by the prime rate. As a result, your payments will vary with changes to the prime rate. Therefore, the fluctuations in instalments cannot be pre-determined.

Floating Rate Loans The floating rate loan has a fixed rate of interest that is charged over the loan term of five (5), ten (10), fifteen (15) and twenty (20) years. The repayment amount, or the loan instalment, remains the same for the duration of the loan tenure during any of the periods indicated above.

Loan tenure Loan tenure refers to the period of the mortgage loan, from the date of the first disbursement to the last date, being the date of closure of loan.Individuals can be given a loan term of up to thirty years (30), which is repayable within the age of sixty five (65).

As for companies, they can qualify for a maximum term of twenty (20) years.

Loan Amounts BBS finances a minimum loan amount of P20, 000.00 for both residential and commercial loans. The maximum loan is determined by the location of the property being financed. It will differ from one location to another, with urban centres offering higher amounts.

The debt serving ratio for BBS must not exceed 40% of gross family income. That is, an applicant’s monthly instalment must be within, or 40% of their monthly gross income.

Loan to Value Loan to value is a key risk factor that BBS uses to assess or to qualify mortgage loan applications. The analysis informs the BBS of its risk appetite based on some of the following key factors, theindividual affordability, the purchase price (price at which the property is being sold), or the construction sum in the case of building loans and all the above mentioned assessed against the current Open Market Value of the property for which the loan being sought.

BBS finances up to 90% of the Open Market Value for both individuals and companies in all urban centres, and between 50% and 80% in semi-urban and rural areas.

The Society finances property throughout the country.

However, the property must be registered with the Deeds Office. For SHHA plots, they must be converted to Fixed State Grant for them to be considered for funding.

BBS has Sales Consultants who are well informed, trained and always ready to assist you. You may reach them at 3971396 or visit any of our branches country wide for assistance.

In the next segment, we will share with you information on our savings and investment products. BBS offers a variety of savings accounts which can help one save for whatever purpose, including the acquisition of property.

Boidus Feature Page 6

BOIDUS FOCUS October 2014

REIB and Ba-Isago Organise Real Estate Conference

by Kibo Ngowi

The Benefits of Street Trees Why should you as a city resident care about whether there are trees on your street, or on the streets nearby? Well, besides the obvious – that they make a street look more attractive – street trees are proven to provide numerous concrete benefits to residents in terms of property values, traffic calming, pedestrian friendliness, and crime reduction.

Here are a few of the benefits of having street trees in a city.

1. Cars drive more slowly on streets with trees.

3. Residents walk more on streets with trees.

Traffic moves more slowly on streets lined with trees. Trees have a calming effect, and drivers are at least subconsciously aware that where there are trees, there are often pedestrians and children playing.

When cars drive more slowly, pedestrians feel safer. In addition, curbs and trees provide a physical and psychological buffer between sidewalk and car traffic that increases this feeling of safety. The busier the street, the more this safety buffer is needed. And of course, trees provide an environment in which it is more pleasant to walk - something attractive and green to look at, shade in the summer, a canopy from rain when needed.

On the 16th and 17th of October the Real Estate Institute of Botswana (REIB) in collaboration with Ba-Isago University College will host a real estate conference at Fairground Holdings in Gaborone.

REIB has already been conducting annual workshops for the past six years and Ba-Isago has participated in some of these events as a sponsor. Earlier this year, Ba-Isago developed a concept paper including various real estate industry themes they wanted to explore in a conference and approached REIB for support. The two organisations decided to host a joint event combining REIB’s annual workshop with Ba-Isago’s envisioned conference.

2. Street trees cut traffic noise.

Street trees reduce the amount of engine noise created in the first place, because drivers go more slowly. But a line of large leafy trees can also absorb a great deal of noise. Even a line of smaller trees can be enough of a buffer to block traffic noise from reaching private yards and homes.

4. Trees improve air quality.

Trees consume carbon dioxide and emit oxygen. In general, the more trees we plant, the better air we breathe.

5. Street trees increase property value.

Streets with trees look more stable and prosperous. Families with children are more attracted to a neighborhood where they can picture themselves going for walks and letting kids play on the sidewalk. A neighborhood that looks cared for, with visible sidewalk activity, experiences less crime and especially fewer break-ins. (frinkpark.org)

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Ba-Isago has been very visible in the real estate industry due to the institution’s participation through training.

The Real Estate Professional Act of 2003 declared that no person who hadn’t been trained in real estate could be registered as a real estate professional in Botswana. At the time many people who were actually working as agents did not have any formal qualifications in real estate so Ba-Isago targeted this gap and began offering a real estate certificate in 2008. To date they have trained more than 300 real estate professionals and developed the programme further to offer a diploma and a Bachelor of Commerce in real estate.

“So we are at the centre stage of human resource development in this particular field and we feel that we should continue to lead in terms of developing more professionals in the sector,” says Ba-Isago Vice President, Academic Affairs and Research, Mr. Ruramayi Tadu. “We will continue to play a significant role in the real estate sector because we’ve identified it as a niche market. Of course there are a number of other institutions that are offering the same programme but we are the pioneers in this particular area and we will continue to lead by example. In future we would even want to offer programmes at higher levels than what we are currently offering.

And we hope that our partnership with REIB will be a long lasting one because

we are at the forefront of influencing their members through the knowledge we provide them in our classrooms and our interactions with them.”

REIB marks its 20th year of existence this year and the sitting Executive Committee led by President Modiredi Maruping have taken it upon them-

“For our members it will be a more of a refresher course,” says REIB Secretary General Ms. Marilyn Mosha. “Basically we want to put our professionals under one roof so they can learn from each other’s experiences and the trends in the real estate industry. As for the public, it’s for them to gain a greater appreciation of our profession.”

Mosha says the event will form part of their members’ Continuous Professional Development (CPD) and that those REIB members who attend will receive a certificate of attendance.

She adds that REIB is hoping to attract members from across the country to participate in the conference’s panel discussions so that the insights are not limited to the experiences of professionals operating in Gaborone: “This will allow us to broaden the conversation to incorporate experiences from all over the country.”

selves to mark this milestone with a number of activities. Earlier this year REIB held an event to launch its Valuation Standards Committee Operating Guidelines and Code of Ethics and Conduct, both of which are contained in the REIB Handbook, along with the Real Estate Act, the REIB Constitution, the REIB Rules and Regulations and the REIB Application Process. An identity card for all REIB members, developed to make confirmation of estate agents’ credentials easier for consumers, was also unveiled at the event.

BOIDUS FOCUS October 2014

Guest Columnist Page 7

THE IMPORTANCE OF PROPERTY VALUATION

by Othata Batsetswe / Financial Inclusion Specialist & Project Coordinator / Principal Finance Administrator/ Risk, Investment and Development Specialist There has been a great deal of success in developing the property valuation market in Botswana; the greatest being the establishment of the Real Estate Institute of Botswana (REIB). Despite that success, certain challenges still remain and these are discussed below; Lack of Adequate Data – One important factor which is a constraint on the use of open market value is the lack of data. The structural mechanism for collating property data in the country is weak and does not provide adequate information on which a valuer can rely to make an informed opinion about property values. This makes it difficult to make critical analysis and achieve a sound basis for valuations using the open markets values.

Apart from a few well established property firms and organisations that keep some form of data, it is difficult to find formally organised data for property valuation.

The effect of social elements which form an important component of the value arrived at cannot be quantified but depend on the discretion of the valuer. This makes such data less reliable and subjective. Many valuations do not portray the true open market value of the property. The lack or absence of a Land Valuation Board within the government institution, which would be mandated to collate research as well as manage and record all data on properties, means that government has not been able to efficiently carry out this function.

High Inflation and Interest Rates – High inflation rates lead to unstable prices of products on the property market. This has created the tendency for property owners and the land/estate agents to quote property values well above what prevails on the open market without any economic analysis. This phenomenon results in an unstable property valuation environment, making it difficult to determine with certainty the interest rate to adopt in valuations, especially for investment purposes. High inflation also causes an unstable cost of building materials and makes it difficult to analyse and use the cost method of valuations with any degree of certainty. Even when inflation

and interest rates decline, it usually does not lead to a reduction in the cost of building materials and property values because demand is high.

structed according to the taste and requirements of the owner and not according to a statutory building plan.

Land Tenure Issues – Land tenure under the communal landownership system is often difficult to determine and current conflicts of land ownership have led to unclear titles to land. This becomes particularly difficult when valuation must be carried out for mortgages or compensation for land expropriated where the valuation for such purpose must be based on clear legal titles.

As a way forward to reduce user costs and encourage home ownership, property valuations should be covered by the financing institutions.

One of the commercial banks is already playing in that space and it’s just for the rest to follow suit. Mortgage loans increased by 43.3% in 2013.

From January 2014 till June 2014, the mortgages credit increased from P6.8bn to P7.5bn, reflecting a further 10% increment in demand for mortgages. Considering that home ownership is still at less than 10%, this also presents a business opportunity for banks. It’s about time they focus on 100% coverage of mortgages and efforts to encourage property ownership. Property valuation is very important to the growth of the economy and to ensure efficiency within the financial system.

Other factors which constrain the use of the methods of valuation are inadequate knowledge of planning regulations and laws. This leads to a minimal recognition of planning laws on the value of properties though it should form an important aspect of it. It is therefore always necessary to compare properties from similar neighbourhoods. This is difficult to achieve because there are many variations in neighbourhoods and many buildings are unique because they are con-

* The writer writes in his personal capacity.

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Unqualified Estate and Land Agents – Due to the rising demand for property, there has been a huge shift towards the real estate business. The emergence of block 10 and Gaborone North saw an

influx of such characters. Most of these agents are not qualified and do not understand the factors that are necessary to be considered to determine property values. Their activities are having a negative effect on property valuation because they do not seek professional advice on the property’s value but determine it themselves. Due to the scarcity of knowledge of the property market and lack of adequate data, they do not assess the property values based on any sound economic analysis.

They also charge commission for their services based on the income to be derived or expended on the property and some inflate such values in order to increase their earnings regardless of the effect this might have on the general level of property values. I’ve had dealings with about four valuation companies and the prices I got on one property were quite interesting. They ranged from P0.535 million to P0.95 million. This lack of standardisation and analytical tools in property valuation has escalated the cost of property, taking away affordability.

Variances in Demand – Another factor which is a constraint in the valuation of properties is the current change in the character and variation of demand for properties, especially residential properties. The relocation of Diamond Trade Centre (DTC) from London to Gaborone led to perceived prices, mainly driven by the known and perceived purchasing power of the foreign nationals that were seen as a huge market. This indeed worked in their favour and most of the property prices were arbitrarily decided between the parties and the money paid for the property was not necessarily subject to any valuation method or principle.

This will obviously lead to arbitrarily high capital and rental values for residential properties, especially in the urban areas.

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Guest Columnist Page 8

BOIDUS FOCUS October 2014

Lifestylenoted: Designer Secrets for Small Spaces

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by Tshepiso Motlogelwa, Interior Designer - tsmotlogelwa@gmail.com Having to deal with small or limited space in your home can be overwhelmingly frustrating if it is not designed well. Concerns about the environment, energy, the cost of living and small land allocation are causing people to re-examine their need for larger and larger homes.

Making the most of a small space is an exercise of mind over matter. Controlling clutter and expecting furniture and appliances to perform multiple functions takes some expert planning.

You need to take full advantage of the space you do have by carefully selecting the items you bring into your home-the more multi-functional, the better. Remember that not every nice

piece of furniture will necessarily work for your space; an over-sized couch in a small lounge will not only make the space look unwelcoming but it will be a nightmare to maneuver the corners to try and clean the room.

With a growing focus on comfort and style without excess, more and more manufacturers are designing their products with smaller spaces in mind. Big style has never looked so small, so regardless of whether you live in a colossal dwelling or a miniature apartment, you can still achieve a comfortable home you love to live in.

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For a more formal look, get a couch plus 2 arm chairs at straight angles.

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For this type of arrangement, you can use standing lamps instead of side tables to save space. Small scaled furniture with tall thin legs feels lighter and is suitable for smaller living areas.

In a very tight living area, this sitting arrangement of a couch and a single arm chair at an angle works best. The table in the center can be an ottoman which will serve 2 functions of being a serving area and also extra seating when needed.

Multi functional furniture

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Hand crafted wooden doors and panels

Our high tech computerized machines enables us to manufacture locally [moulding machine, cutting machine, wrap oven, drilling machine] A horizontal striped wall in muted tones in this teenager’s bedroom makes the space look wider. Storage shelves on the walls provide smart storage solutions to minimize clutter.

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Fireplaces, Kitchen cabinetry

Keeping accessories to a minimum and cutting down on clutter can help make a small space seem bigger than it is. The frosted glass doors in this small kitchen also helps to make the kitchen look spacious and less heavy.

Wardrobes, Kitchen cabinetry

Prefab cabins built on site, Counters, Aluminium (I.H.S. Molepolole)

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BOIDUS FOCUS October 2014

Advertising Page 9

Home Improvement Page 10

BOIDUS FOCUS October 2014

DIY Projects - How to Repair Leaky Gutters & Downspouts

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REPAIRING A LEAKING GUTTER

FIXING A LOOSE DOWNSPOUT

Gutter joints, whether sealed with a rubber gasket or sealant, will deteriorate over time and leak. The repair shown here uses gutter or silicone caulk. For gutters without joints, cut out the damaged section and replace it with a piece that is at least 2 in (5 cm) longer.

If downspout brackets become loose, joints in the pipe may fracture and cause water to run down the building. This may cause water infiltration problems, so loose pipes should be reattached immediately.

Materials and Tools:

• cloth • gutter or silicone caulk • caulk gun

1. Disassemble the gutter joint by unclipping the gutter length from the joint clip (Image 1).

2. Remove the adjacent length of gutter to give you clear access to the internal profile of the joint clip (Image 2).

3. Dust out the joint, making sure that it is clean and dry (Image 3).

4. Apply gutter or silicone caulk around the edge of the gutter’s profile (Image 4).

5. Reassemble the joint, fixing the clips securely back in place (Image 5).

6. Wipe away any excess caulk with a cloth (Image 6).

OTHER CAUSES OF LEAKS • • • •

The gutter might be blocked and overflowing. Unblock it to fix the problem.

Loose attachments may cause sagging and overflowing. Fix as for a downspout.

A gutter needs a slope to drain efficiently. Check whether it needs adjusting to the correct angle.

Cast-iron gutters may rust and leak. Paint often to avoid this.

Materials and Tools:

• drill • suitable fasteners and wall plugs

1. Slide the loose downspout bracket to slightly above or below its previous position (Imags 1).

2. Hold the bracket in place, and mark where the new fasteners will need to go. Then drill pilot holes (Image 2).

3. Attach the bracket with the appropriate fasteners. Use wall plugs on masonry (Image 3).

EXPERT ADVICE ON GUTTERS AND DOWNSPOUTS Gutters and downspouts are critical to ridding the roof of water and getting it away from the home’s foundation.

Gutters and downspouts are an important part of any roofing installation, but are elements that are sometimes overlooked. Gutters and downspouts are not expensive, and they play a vital role in the roof doing its job. For any house, it’s important to remove the water that runs off the roof as quickly as possible. The downspouts can be buried or positioned to carry that water away from the house.

1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services

Boidus Expo Special: POST EVENT

On the 18th to the 21st of September 2014 Botswana’s biggest convergence of building supplies and services took place at the 1st Annual Airport Junction Builder’s Expo & PPC Construction Summit. More than 100 exhibitors representing all the various profiles within the local construction industry were present at this first of its kind event which mainly consisted of private entities and included minor representation from government departments and parastatals.

Event organiser Mr. Christian Maisva says the event was a success as they achieved their goal of providing a comprehensive showcase of Botswana`s construction industry to local consumers while simultaneously offering industry players an opportunity to meet, network and exchange ideas for the benefit of the industry as a whole.

The event’s main objective was to allow exhibitors to influence domestic consumer trends within Botswana’s construction industry by raising awareness about locally available products and services.

The vast majority of the exhibitors were local entities with roughly 10% being manufacturers and suppliers from South Africa, most of which were companies with local distributors or products they are launching into the Botswana market.

news flash

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The event was powered by PPC-Cement which was the platinum sponsor and as such hosted the PPC Construction Summit on the 19th of September 2014. This exclusive conference brought together key stakeholders in an effort to address some of the major concerns of the domestic construction industry and positively influence its development.

There were two business days, the 18th and the 19th of September 2014, and two public days, the 20th and 21st of September 2014. On the first two days the activities mainly focused on VIP business networking and the PPC Construction Summit. On the public days there were product launches, raffles, discount shopping on building materials and services, entertainment and good clean family fun.

The official opening was conducted by The Honourable Minister of Infrastructure, Science and Technology Johnnie K. Swartz.

Airport Junction and PPC-Cement would like to thank all the businesses that showcased their products and services as well as all the consumers who attended the 1st Annual Airport Junction Builder`s Expo & PPC Construction Summit.

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1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services

exhibitor`s profiles

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75mm

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3.29

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2014

CBD EXECUTIVE SEMINAR Boidus Media’s STATE OF OUR CITIES

CBD Event Opening

(BOCCIM, Ministry of Infrastructure, Science & Technology) BOCCIM President Mr. Leta Mosienyane • Current scenario: Quality of infrastructure has declined in recent years; Some projects at sub optimal levels, some are white elephants; Some are not sustainable or viable.

• BOCCIM views on areas of improvement: Better conceptualisation, planning, design and project management; More cost-benefit analysis; Sharper focus on development objectives and outcomes; Understanding and commitment to socio- economic impact and implications; Encouragement of

“value addition”; Involve private sector in the planning and management of infrastructure pre and post implementation; Understanding of related risks and their management; Prioritizing development projects on strength of socio economic potential; Subject all projects to cost benefit analysis.

Official Event Opening – Minister of Infrastructure, Science & Technology Hon. Johnie Swartz • Private sector a strategic partner in government development agenda. Against this background Public Private Partnership Policy approved in 2009 – the objective of which is to create a conducive environment to facilitate the private sector to initiate implementation of strategic projects and partner with government for their implementation to benefit the economy.

• The PPP Policy resides at the Ministry of Finance and Development Planning and plans are at an advanced stage to establish a PPP Unit within that Ministry. Government recognizes that, through partnerships between government and the private sector, development of Botswana’s infrastructure and other services can be taken forward to the next level with equal share and benefits between government and investors for the good of the country.

Key Note Speaker – Investing in Infrastructure Development through PPPs in Botswana – African Infrastructure Investment Managers (AIIM), Vuyo Ntoi

Investing and Managing Risk in PPP infrastructure projects – Zurich Portfolio Head of Engineering for Sub-Saharan Region Jaun-Pierre Holmes

• AIIM's Funds have invested in a diversified portfolio of infrastructure and infrastructure-related assets, including 39 acquisitions, eight disposals and four refinancing in South Africa, Zambia, Rwanda, Kenya, Nigeria, Cameroon and Cote d’Ivoire.

• AIIM was established in 2000 as a joint venture between Macquarie Group and Old Mutual Investment Group, which provides us with access to their global networks of international experience, insight and best practice methodologies.

• Already Apparent Trends to be Strengthened – Policy must support private sector involvement – Regulations for PPP must be developed so that the rules are known upfront.

• Government must be comfortable that the private sector are profit seeking – Risk and return are the main language that these parties speak – Government must not appeal to patriotism or other none risk / return related basis for decision making.

• More deals need to be done – An enlarged data set of experience can developed and used to inform future decisions.

• What makes a good PPP? Limited re-invention of the wheel; An implementing authority that knows what it doesn't know; Contract versus Partnerships; Not a political wish-list; Reasonable “development profit” expectation; Not too big; Affordable – but not under-priced; Projected to turn into a real project within two years; Reasonable “development profit” expectation.

• Botswana Specific Peculiarities – Small population country with low densification limits the extent to which direct “user pay” projects are sustainable on standalone basis.

• Good government and utility credit profile increases the scope for government and local utilities to sustain long term support and off-take contracts with private participants.

• Regionalisation plays a strong part in Botswana infrastructure plans as a result of the country being landlocked; Regional plans take longer to implement due to the consensus required for decisions to be made; Financial / credit profile of the various countries are not the same, further complicating matters; Externalities.

• A Case for Principal Controlled Insurance (PCI) – Any contract will have an obligation for one or more parties to arrange specified Insurance Cover. The majority of large construction projects are insured by the owner.

• Under a PCI – project owner controls insurance with cover extended to benefit: the owner, engineer, contractors,

• • • • • • • • •

sub-contractors, vendors, suppliers, consultants, lenders and other interested parties.

Arguments against PCI’s – Contractors will argue – if they have a risk of loss on the contract works then they should insure the contract works?

Owners will argue – risk of loss for delay in completion, they should insure the financial consequences of such a delay (Delay in Start-Up Ins.) The latter cannot be insured without the former.

Arguments in favour of PCI’s – Interests of lenders have to be met in debt financed projects.

Owner has multiple contracts and no single contractor has overall responsibility for the works.

Phased start-up of a project’s complexities can be covered from “cradle to grave”.

Owner or lenders wish to purchase Delay in Start-Up insurance.

Contractor’s viewpoint – important that PCI provides the equivalent cover that would have been available had the contractor arranged his own insurance.

Alternatively the contractor should be permitted to arrange cover that protects them for any Difference in cover (D.I.C/D.i.L/D.i.E/D.i.D).

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Commercial Property Financing Products – Mr. Patrick Katabua, FNB, Commercial Property Finance Africa (CPFA) • A team of experts engaged in project management, facilitating ownership, risk mitigation and tailoring solutions based on unique needs.

• Mature Presence: RSA, Botswana, Namibia and Swaziland; Emerging Presence: Lesotho, Mozambique and Zambia; Start-ups: Tanzania, Nigeria, India and Ghana.

• What we do – Deal Sourcing; Deal Structuring and Packaging; Credit Presentation; Approval and Acceptance; Fulfilment Overview and Disbursement Overview.

• Product Structure (CPF Loans) • Development Loans: Up to 24 Months for development loans; Interest only service during construction; OR Interest roll up during construction • Term Loans: 60 to 120 months for term loans; Straight line amortising monthly or quarterly; Stepped facilities; Residual options

2014

CBD EXECUTIVE SEMINAR Boidus Media’s STATE OF OUR CITIES

Realising Institutional Investment in Botswana’s Infrastructures – BPOPF Acting General Manager, Investment Mr. M. Malindah • The Botswana Public Officers Pension Fund is a defined contribution plan that was incepted in 2001; the Fund is controlled and ran by the Board of Trustees; the Board is made up of employee and employer representatives; there are 5 working committees of the Board.

• What concerns us – Crowding out the private sectors; Link between government project agency and financiers; from concept to investing stage; structuring and presenting projects with primary focus on development and less on institutional primary focus being on attractive returns.

• The Board of Trustees of BPOPF are fully committed to the development of the country; the fund is hungry for viable investments in the country and we believe that the potential projects in Botswana are enough to absorb all our capital; the fund is ready for Public Private Partnerships.

Investment Opportunities

(Selibe Phikwe, Francistown & Palapye)

Opportunities in Selebi Phikwe – SPEDU Marketing and Communications Manager Mr. Kenneth Boikhutswane

Opportunities in Francistown – Francistown Investment Forum Mr. Duna Phorego

The Pula Steel and Casting Manufacturing plant is one of the first pages of Polaris II to make it out of the shelves into brick and mortar.

• Pula Steel will be the fully integrated steel manufacturing company in the country and will invest P89 million on the project that will create 1000 direct jobs at full production.

• BIUST to team up with BCL in projects like mining museum, tourism enterprises and educational facilities for science and environmental research – P13.8 million.

• A project to set up a processing and packaging plant for horticulture produce in Selebi Phikwe is underway – P6 million.

• Pre-feasibility study by SPEDU has discovered good potential for various technologies such as solar power, biogas and wasteto-energy.

• A P100 million Platjan Bridge Project is planned.

• There is potential for a vulture restaurant in the Tswapong area as well as granite and marble quarrying in the Bobirwa Sub-District.

“City of Francistown: An investment Centre of choice by 2022 – A step forward to your investment” • Francistown has been designated a Mining Supplies and Logistic Special Economic Zone with Tuli Block as Horticultural Special Economic Zone.

• Francistown as the regional administrative and commercial centre.

The mining activities include gold, copper, nickel, diamonds, soda ash, coal and iron.

• Francistown Investment Company formed. To appraise projects potential and investment partners in partnership with BITC.

BIUST Investment Partner for Palapye – BIUST Vice Chancellor Professor Hilary Inyang During the NDP-11 implementation period in which student enrolment at BIUST will grow from 4693 to 8251 students and staff, residential buildings, water supply and wastewater treatment systems, campus streets and monuments with lighting, auditoriums and security systems will be needed.

• Approach 1: Direct Procurement by the Botswana Government.

• Approach 2: Development of Facilities through PPP. • Approach 3: Private Sector Direct Investments.

Management preferred that the split of approach be: Approach 1 (60%), Approach 2 (30%), and Approach 3 (10%).

In order to attach the private sector to engage in PPP, the profit margin and associated duration of investment recovery must be attractive. This implies that the facilities concerned must be revenue-generating and of scales and sizes that make them sustainable per business considerations. These are factors that were considered in the enrolment levels planned.

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2014

CBD EXECUTIVE SEMINAR Boidus Media’s STATE OF OUR CITIES

REAL ESTATE CONFERENCE 2014 The Real Estate Institute of Botswana(REIB) and BA ISAGO University College are co hosting a Real Estate Conference.

THEME: Trends & Challenges of Real Estate in Botswana

DATE: 16TH & 17TH OCTOBER 2014

VENUE: FAIRGROUNDS HOLDINGS, BOIPUSO HALL

DAY 1

Key Note Speakers:

Kura Chihota is the recognizable face of the television show, “Ask the Property Experts” on Business Day TV Channel 412.

Kura has grown into a sought after niche as a conference programme director and content speaker, being well known in the property industry he has successfully been the face and voice of many conferences locally and internationally.

REIB Member:

P500.00 Per Person

Non-REIB Member: P1000.00 Per Person

DAY 2 Erwin Rode Property Economist, Professional Valuer and Head of Research of Rode & Associates(Pty)ltd , Cape Town

Student:

P300.00

Highlights: Who Should Attend:

• • • • •

The new town and Country planning Act and all its instruments Funding dynamics and opportunities in the current market conditions Securing Land and Property ownership in Botswana Botswana Property Development in the 21st Century The roles of Real Estate Professionals in the 21st Century

•

Commercial and Residential Real Estate Investors, Real Estate Agents Real Estate Valuers Attorneys, Bankers Architects

• • • •

• • • • • •

P5000.00

Builders Developers Land Board Council: Land Department Ministry of Lands Housing and Students

Sponsors:

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CONTACTS: (WENDY) Tel: (+267) 3930152 (PHETSO / LESEGO) (Tel:(+267) 3957744

Exhibitors:

Fax: ( +267) 3957709

Cell: 72489932

Fax: (+267) 3930152

Email :reibinfo@gmail.com

Email : phetso.kgosiemang@baisago.co.bw OR lesego.ramaloko@baisago.co.bw

1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services

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BUILDERS WAREHOUSE BOTSWANA: GABORONE: Airport Junction Shopping Centre, Plot No. 70665, A1 Road, Tel: 393 0533 FRANCISTOWN: Plot Number 31247, Mowana Park, Somerset West Industrial, Along A1 Road, Tel: 242 5200 MONDAY TO FRIDAY: 7AM - 6PM; SATURDAY: 7AM - 4PM; SUNDAY AND PUBLIC HOLIDAYS: 8AM - 2PM

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1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services

Glass and Aluminium in Botswana

P700, 000 and the guy buying from China is quoting P400, 000, that means there are compromises in the quality. There are products from China that look exactly like ours on the surface but once you understand the feel you can understand that there is some compromise on the quality. These products are not just aluminium alone. There is a mixture of some other materials as well. It’s a combination and perhaps that’s why the price is cheap.

Actfit (Pty) Ltd is one of the largest companies in Botswana for architectural supplies, installations, and maintenance, especially with regards to structural aluminium and glass. Boidus Focus spoke to Actfit Managing Director Imran Haddad, who has been involved in the manufacture of aluminium and glass for 14 What often happens is a problem emerges years, to find out his views on the major chal- with the product soon after it’s placed and since these products were sourced in Chilenges affecting his industry. na the client can’t rely on the maintenance services of the company. So we’re brought Sourcing of raw materials We buy most of our materials from South Af- in to remedy the situation but we can’t berica. There are roughly only four companies cause while it may look like a South African [in Botswana’s glass and aluminium industry] product on the surface it is not the same. that always appear on the tender lists and compete with each other. And then there are various companies which are ‘suitcase companies’ started by people who don’t understand business – they do one or two projects and then close. That is the biggest challenge – that clients don’t understand that it is always better to deal with companies where you will pay a fair price and be assured of confirmed quality approved by the Association of Architectural Aluminium Manufacturers of South Africa (AAAMSA). Our products last for 15 to 20 years and we are available for free service for six months after any project but these ‘suitcase companies’ often close within a few months of selling you a product and you are left stranded.

Competition with Chinese products When we tender for a project, because we get products from South Africa, we price according to the price we buy and our competitors who also get products from South Africa quote around the same prices. But at the same time there are those local companies that are buying products from China.

I can’t say that Chinese products are bad.

China has got quality as well but at the same time, what price are you paying? If you’re talking of a major difference in price between Chinese and us that means something is not right. A price difference of 15 or 20% we can understand but if there is a project quoted at

The beauty of the SA products we are using is that it doesn’t matter which company initially fits the product, any company in the country that works with glass and aluminium can be hired to do maintenance work on it.

Lack of Consumer knowledge People are not knowledgeable when it comes to glass. That is the role that is supposed to be played by people like us who are manufacturers and who are ready to work with the architects to specify the products; that is something we have been doing for quite a long time for those architects who are open to seeking our advice.

What has been happening here is that there has been a copy paste in tender documents for the past 14 years. So if there was a mistake in the document 14 years ago the same mistake is still appearing today. It’s because nobody has the time to go and educate the people.

Four years ago I was working with BHC to educate them on different types of windows. The aluminium specifications on the windows in the new BHC houses in Phakalane were specified by me. I spent two years

mhlh convincing BHC that aluminium was better to use than steel in the long run. They decided to use aluminium but they used Chinese companies and didn’t even give me a chance to tender. I’m not complaining about the fact that I spent two years there but rather the fact that after that I didn’t even get a chance to quote a price for a single house. The same tender document has been copied and pasted for years but over time products become obsolete and different products are introduced.

The whole point is that the people need to have knowledge about what they are talking about. There are architects who ask for our advice on whether this can work on this building or not because since we are the manufacturers we are in a better position to advise the architects than the suppliers because we are technical people. The specialists who have been using the products on the site are the best people to give advice on the viability of using products on specific projects and we don’t mind filling that role.

But most people are not doing this. They are going ahead with projects without the knowledge to do it correctly.

BOIDUS FOCUS October 2014

Advertising Page 19

Boidus Feature Page 20

BOIDUS FOCUS September 2014

Mortgage Affordability in Botswana

by Kibo Ngowi

Financial institutions control access to mortgage financing and as such are at the centre of any conversation about housing affordability. Boidus Focus spoke to Banker’s Association of Botswana Head Mr. O Mabusa to find out his views on the role banks are playing in making housing affordable for Botswana’s population.

According to the 2011 Housing Finance in Africa Report by Finmark, approximately 60% of Botswana’s population do not qualify for mortgage loans.

This situation has a long term effect on the property market and its growth. As Bankers’ Association of Botswana you represent the banking industry in Botswana. What are the steps that your members are taking to make mortgages affordable?

From a global perspective, it is indeed true that many Batswana would not be eligible for mortgage loans. Eligibility for any loan is subject to a variety of qualifying criteria which include employment status, income level, age and credit standing of an applicant. Availability of serviced land has also to some extent played a role in restricting mortgage financing.

By virtue of the fact that many Batswana earn low incomes, they are more likely to fail the eligibility test, particularly if they apply for housing loans at a later age. This is why banks encourage citizens to seriously consider acquiring a house earlier in their lives and careers rather than late.

Several specific actions have been taken by banks to encourage the acquisition of mortgage loans to finance land and/or build houses. To mention a few of these:-

Virtually all the banks have established comprehensive marketing strategies for their home loan products, offering highly competitive terms to eligible customers. Some banks fully finance equity contributions, offering up to 100 percent mortgage financing, while others require flexible equity injections of up to 30 percent of the loan.

To varying degrees, banks also finance additional costs associated with housing acquisition, such as valuations, bond registrations and other activities.

By offering pre-approved loans, banks ease the acquisition of housing by making it easier and more convenient for customers to make the right property choices and negotiate purchase prices.

Banks offer flexible mortgage based financing options to eligible customers such as debt consolidation and re-financing, both of which may have the positive effect of providing a margin of debt relief and convenient financing.

Even with all the up-front information offered by banks through the various channels, all banks provide customer advisory services through their mortgage credit departments, which helps customers to make the right selection of facilities.

Are there any available laws that govern the cost and/or sale of mortgage facilities to the consumer, especially with regards to mortgage rates?

While there are no laws governing the pricing of mortgage loans by commercial banks, there is a commercial incentive for banks to grow their asset-backed loan exposures as a way of managing their balance sheet risks. Based on this fact, particularly in view of the levels of unsecured credit in

PRESS RELEASE: FOURTH ANNUAL PROPERTY EXPO

The 2014 installment of the Property, Investment, Lifestyle and Décor Expo will take place from the 16th to the 18th of October at Ditshupo Hall at the Gaborone Showgrounds. Giving a background on the event, the event owner said: “The Property, Investment, Lifestyle and Décor Expo is an annual event that creates a platform for stakeholders in the property and related sectors to converge in order to promote trade, create dialogue and share industry relevant skills. The Expo does not focus solely on Property, but also on fringe industries that support it, thus the name,” said Mr. Sayi Dewa.

The Expo will consist of a series of activities along with the actual Exhibition, through which sponsors, exhibitors and other stakeholders will glean more in their vested area of interest. In partnership with Botswana Housing Corporation (BHC), The BHC Property Investment Conference will take place on Friday the 17th, where avenues and methods of property development and investment in Botswana will be discussed. A stakeholder cocktail will also be in the line-

the banking system, it can be noted that tremendous capacity still remains for banks to grow their mortgage exposures.

Using the income tax bracket as a crude reference cutoff point for low income earners, we can confidently point out the fact that mortgage loan entry thresholds (in terms of monthly income) on offer across the banking landscape are well within the reach of a reasonable segment of low income earners.

According to some estimates by independent economists, household debt currently accounts for 17% of Botswana’s GDP. What are you as Banker’s Association doing to educate Batswana on personal financial management? Experts have also argued that local banks have tightened their borrowing because of people’s growing inability to pay back the loans obtained. Is this true?

As already indicated above, individual banks do educate their customers through their credit departments and also the rest of the public through the various intervention methods illustrated above.

However, it is important to note that an interpretation of the absolute level of household borrowing in relation to GDP needs to be made in context, taking account of structural issues and the overall macroeconomic conditions in Botswana. For that reason, it must be noted that the target of the public education provided by banks is not primarily to address the overall level of indebtedness or credit default conditions. Rather, banks address this concern at a micro-level by enforcing their prevailing credit policies (whether such policies are tight or loose) in line with the individual financial conditions of customers. But the Bankers’ Association is not aware of a general tightening of mortgage finance terms and conditions as a result of an escalation in non-performing exposures on

the mortgage book.

BoB financial statistics (July 2014) reveal that mortgages went up by more than 50 percent in the past 12 months. What do you believe is driving this rise in demand?

In the absence of a deeper understanding of the specific characteristics of the mortgage growth component, we believe this to partly represent a lagged net effect of the positive efforts made by banks to market their mortgage financing offerings. We can also attribute the increase in part to the positive VAT relief signals made by Government in respect of first time home buyers. Much as refinancing could explain the growth to some extent, we do not believe this is a significant factor as it would tend to have a neutral overall impact on credit in the banking system.

How do you see the state of the mortgage market in Botswana developing in the immediate future especially in the space of micro-lending for property?

Mortgage finance has tremendous potential in terms of its contribution to banking sector profitability and citizen affluence. For both reasons, banks will continue to support mortgage business.

Mortgage business optimism also arises from the expected positive spinoffs arising from the various Government reforms such as the VAT relief for first home buyers and the national land reform policy initiative which will hopefully serve to make it easier to register and collateralise tribal land. In spite of this exciting potential outlook, we need to note that mortgage investment, like any other investment in property, is subject to changing economic and market conditions. Hence banks, as with individual investors, will continuously review their acquisitions, scaling them up and down in response to prevailing conditions.

www.cnonline.co.bw

up, at which company representatives and individuals can network and share industry best practice.

The Expo currently has over 50 exhibitors on board, and the organizers are expecting more to sign up as D-day advances. Exhibitors have come from all types of businesses looking to expand their horizon, from corporates to SMMEs in Real Estate, Interior Design, Property Finance, Home Décor and many others.

For their part the event organizers, Incepta Communications, said: “Property, Investment, Lifestyle and Décor are a part of our everyday lives in one way or another. One is either a provider or a consumer, where you are building your dream house from scratch or are giving your current home or office a face-lift.

We are therefore calling on all Batswana to come to the Property, Investment, Lifestyle and Décor Expo, and see the latest trends in various facets of property,” said Managing Director of Incepta Communications, Thabo Majola.

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and operator desking and seating; reception furniture; soft seating; boardroom furniture; screens and partitions; training and educational furniture; restaurant, cafe and canteen furniture and storage and filing systems.

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Our furniture is of the highest quality, with most products holding a 5 year warranty.

We showcase ranges for all budgets including pieces designed and imported from Italy. We provide delivery and installation, so that you can order in the knowledge that your furniture will be set-up in your office to your exacting specifications.

Please allow us the opportunity to welcome you into our working haven and to introduce you to our ranges of: executive

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BOIDUS FOCUS October 2014

Advertising Page 21

BUILDERS WORLD

1st Annual Airport Junction Builders Expo highlights Builders World is proud to participate on the 1st annual builders expo exhibitions. We thank our customers for there support for the last 25 years of service to the country.

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Is Your Property Adequately Covered?

by Alan David-Andersen, Risk Management Consultant, BIC

Houseowners policy has been designed specifically for residential properties, which are not multi tenanted and generally owned and occupied by the same person/s and or tenanted.

Financial institutions will insist that there is a Houseowners policy in force when they offer a mortgage and many banks also insist that the insurance is arranged through them unless satisfactory alternative arrangements are made.

•

Whilst this arrangement is deemed to be conditional selling the institution is able to ensure that the premium is paid monthly or annually and the policy is not cancelled.

The theft cover is for fixtures and fittings and does not relate to furniture or personal possessions which is covered under a different policy (Householders policy)

Whilst Houseowners policies differ the core perils are the same and the differences really being cosmetic with various add on's. The policy not only covers acts of God but also various other perils including negligence. The main perils are as follows;

Generally a fire causes the most damage and in addition to paying the cost of repairs the policy will also pay for alternative accommodation or if rented the loss of rent for the period of re-instatement. This also applies to damages caused by any other peril mentioned.

• • • • • • •

The policy will also respond if you become legally liable to pay compensation for accidental death, bodily injury or illness or accidental loss or damage to property. This is normally limited to P 2 500 000.

Fire, lightning, explosion Storm, wind, water, snow Bursting, leaking overflowing of apparatus.

Theft Impact Rent Liability

There are number of lesser defined events which are too numerous to discuss in this article. There are also conditions applicable which vary from policy to policy.

Below are few pointers to avoid a claim being declined and or adjusted downwards.

• The buildings must be insured for the current replacement value which must be adequate for the 12 month period. The value of the

Because anything can happen...

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land should be excluded. This value must include costs such as demolition, debris removal and professional fees.

The sum insured must not represent the amount of the mortgage, especially if the property was purchased some time ago.

Ensure that the description of the buildings is accurate. If there are thatch roofs, timber frames they must be mentioned.

Complete the proposal form as accurately and as honestly as possible giving exact details about previous losses and claims.

Policies are quite clear about the duty to minimize any potential loss. Don’t expect to be indemnified if there is undue exposure to the property insured. This also relates to lack of maintenance.

Our homes, to most of us, represent our biggest investment. Fires in houses, especially winter, severe storms, high winds can cause extensive damage to properties, even those well maintained. The cost of repairs can have a devastating financial impact. A Houseowners policy is one of the least expensive. People often tend not to insure their houses once the mortgagee is paid.

This could result in a second mortgage to pay for the repairs.

Boidus Feature Page 22

BOIDUS FOCUS October 2014

New Era College offers an Advanced Diploma in Construction Industry accredited by City & Guilds.

What you need to know about roofing your house

by Tony Silemba

Roofing is one of the most expensive components of a building. The roof gives the house its final shape and becomes a covering for the whole building, thus protecting it from the weather and providing the aesthetic finish to the building as designed by the architect.

Since building a rood tends to be expensive, people have always tried to find ways of cutting costs. Unfortunately, these savings are usually accompanied by serious compromises to structural adequacy in the choice of material and workmen used to carry out the assembling and roofing.

New Era College Lecturers Mr. Motlogelwa (LEFT) and Mr. Mapolanka

The programme has three different entry levels. The certificate is a one-year programme open for entry by form 5 leavers while the two-year programme is a Diploma open for entry by National Craft Certificate (Brigades) holders. Finally, the three year programme is an Advanced Diploma only open to those with a Diploma though special cases can be considered on an individual basis. The first year is highly practical and the following two years, while still practical, also have an emphasis on the theoretical aspects of construction.

“The syllabus has both knowledge requirements and practical competencies,” explains Construction Industry lecturer Mr. Reuben Motlogelwa. “To achieve the practical competencies, we have a building where students practice how to build, plaster and paint simple wall structures. There is also a separate area where students can practice paving.”

“We also carry out site visits,” adds Construction Industry lecturer Mr. Tsholo Mapolanka. “If we identify a site where we feel students can learn something

we organize a trip to take them there so they can view these things we talk about in the classroom. Recently we finished building labs for the construction department where we are going to be doing soil mechanics and other activities.”

The department currently has more than 800 students and more than 25 academic staff including 6 technicians.

Professional attachments are compulsory immediately following the first and second years of the programme which each last for roughly two months.

If you’re not yet sure why you should enroll in Construction Industry at New Era College Mr. Mapolanka can explain: “Construction is a fundamental industry because it employs a lot of people.

It can be used to help the government initiative of reducing unemployment because one project can have a huge multiplier effect that creates jobs for a

thousand people. Before any place can be developed socially or economically it has to be developed through construction so it means we are the mother of every economy.”

Construction Dept Stats 800+ Students 25+Academic Staff 6 Technicians

With rising cases of failing roofs, building structures need to be engineered, supervised and constructed with approved material and only competent artisans must be hired to carry out the work.

In Gaborone alone there are numerous cases of roof failures. Roof failures become evident after several years, long after the freelance roof erectors would have forgotten about the job. Most of the time they will not even be contactable for recourse. With this in mind, it becomes crucial to ensure that every building is roofed with trusses meeting acceptably safe standards. Any spans above 6500mm must be pre-fabricated in a licensed factory governed by the regulations of a system provider under the arm of The Institute of Timber Construction.

Every roof needs an independent design to cater for its unique loading. These loads may include a variety of materials such as water tanks, geysers and solar heaters, air conditioners and ducting, kitchen canopies, theatre lights or even X-ray units for use in hospitals. For these loads to be accommodated without overloading the structure, a set of parameters have to be adhered to. These design parameters include truss configuration, batten or purlin spacing, truss spacing and the type of roof cover to be used.

Ready-made trusses are manufactured by companies licensed by roof system suppliers in South Africa and regulated by the Institute for Timber Construction (ITCSA). The ITC-SA’s primary aim is to regulate the design, manufacture and erection of prefabricated nail plated trusses in structural applications, and continuously research, develop and maintain the standards for the industry. The ITC-SA works very closely with SABS, SATAS, ECSA and NHBRC and the four systems – Alpine Automation, International Truss Systems, MiTek Industries S.A., and Multinail Africa – that each provide the software, which enables fabricators to design timber structures.

Fabricators are responsible for timber quality control, design knowledge, manufacturing quality procedures, site

The CBD’s custodians react to the seizure CONTINUED FROM THE PAGE 04

The Department of Town & Regional Planning (DTRP) are the custodians of Gaborone’s CBD and coordinate a CBD Advisory Committee, consisting of various members of both the public and private sector, which advises the Gaborone City Council on how to handle the area. Boidus Focus spoke to DTRP Planner and CBD Advisory Committee Secretariat Mr. B. Mokgethi to learn the CBD custodians’ thoughts on the recently announced land seizure.

Upon allocations of plots they are agreements are made between Department of Lands and the individuals / companies. And there is also the development covenant; if one is not doing as per the agreement government has no choice but enforce what has been agreed.

As custodians of the CBD what are your views on the repossessions?

As a department we are interested to see the CBD developed as a unit, for it

How do you think this will affect the outlook of the CBD and the property market in general?

to be marketable and compete globally. If there are still vacant unmaintained spaces they devalue those properties adjacent to them that have developed.

How does your department feel about the development of the CBD area thus far?

There has been quite impressive progress, and the area is shaping up to give the city an attractive image. So far a total of 30 plots out of 41 are fully developed or developments are ongoing.

Various companies have recently been

documentation and inspection of the installed trusses to check adherence to drawings and erection details. Upon satisfactory installation as per standard practice, the fabricator issues a Roof Erection Certificate of Compliance to the owner. Currently, the ITC-SA is lobbying for the registration of all fabricators in Botswana to this institution so that they may be audited regularly to ensure that the industry upholds the set standards.

Since 2005, the Botswana Bureau of Standards (BOBS) has formulated BOS 139 – The manufacture and erection of timber trusses. This encompasses all the regulations and practices to be followed to ensure structural adequacy and proper quality roof trusses are made and installed for the safety and protection of the end user.

With all this having taken place as steps in the right direction towards safe, legal roofs from design to certification, a lot is still to be done in terms of their implementation.

Ever since the occurrence of the economic recession, home builders and to some extent developers, have abandoned the safe roofing method as described above and have instead opted to listen to their pockets.

We are in an era whereby over 60% of the roofing taking place is being done on site and in most if not all cases without any approved engineered roof design aiding the construction and installation of the trusses. Timber is readily available in most hardware shops, some of it of very low grade, having been primarily produced for furniture and other non-structural purposes. It is sold off the shelf so carpenters buy it and go to make trusses on site. Some roofs can successfully withstand the test of time but others fail in various ways when they succumb to the pressure of the unplanned loading.

There have been numerous reports of roofs slumped (sagging) due to structural inadequacy. The greatest challenge is that these effects may only start appearing after several years. Should there be a problem, the house owner will generally have no recourse for remedy and will end up in tedious and costly civil litigation.

For the future, there is great need for protecting the end user from eventual disaster. More effort is required to regularize the industry and implement the standards set

by BOBS. This will in turn give home builders and property developers peace of mind and their money’s worth.

In life it’s always best to do it right the first time. Remedy is costly and frustrating so prevention is always better than cure.

Tony Silemba is a Roof Design Technician with Truss - Tech, a company that specialises in the design, manufacture and supply of roof trusses to the construction industry.

quoted as saying that competition in the property market is intensifying especially with regards to office space. For instance RDC have taken the decision to convert some of their vacant office space into apartments. Are you at all concerned about the viability of the CBD in the current property market, especially with intense competition for prime tenants with other urban precincts such as Fairgrounds Office Park?

The CBD is developing as a mixed use precinct accommodating civic facilities, commercial uses and residential uses.

This in itself is intended to ensure the viability of the CBD by allowing supporting activities to the predominant commercial uses in the area to ensure

that the CBD remains a vibrant space to both do business and to live. Nonetheless, the CBD is intended for long term development as it is the single largest commercial precinct in the Country.

In your view what are the main challenges that have prevented the CBD from reaching its full potential? How do you think these can be overcome?

The CBD is continuing to develop as planned. From a town planning perspective however, the only challenge currently which the government is in the process of addressing, is the development of more accesses into the CBD to make it more permeable and easy to access.

BOIDUS FOCUS October 2014

Advertising Page 23

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Professional Practice Page 24

BOIDUS FOCUS October 2014

Claims, time bars and the JBCC

delay happening.

by Euan Massey and Natalie Reyneke

The claims provisions in construction contracts are probably the most important provisions of a contract in the contractor’s mind, because the majority of claims clauses in standard form construction contracts contain a time bar. The time bar essentially means that a contractor will not be entitled to an extension of time nor any extra compensation under the contract if it does not submit its claim for such within a defined period of time.

In this edition of Boidus Focus, we will be looking at pertinent amendments to the clauses relating to the revision to the dates for practical completion and what ramifications, if any, these amendments may have to the contractor, paying particular attention to the time bars.

Both the fifth and sixth editions contain a contractor’s entitlement to the revision of the date for practical completion. The contractor’s entitlement to such revision is split up into 2 types of revision – the first being a revision WITHOUT an adjustment to the contract value, and the second being a revision WITH an adjustment to the contract value. The entitlement to the revision is subject to the provision, by the contractor, of notification of such entitlement.

The dreaded time bar clause is found at Clause 29.4.3 of the fifth edition and Clause 23.4.2 of the sixth edition. There are some significant changes to this clause which require closer examination. In this regard, the differences between the fifth and sixth editions are highlighted below (note that where words have been deleted in the sixth edition, these are struck through and where words have been added, these are italicised – the result

of which is the transformation of Clause 29.4.3 of the fifth edition, into Clause 23.4.2 of the sixth edition): “… the contractor shall … within twenty (20) working days from the date upon which the contractor became aware of becoming aware or ought reasonably to have become aware of the potential such delay, notify give notice to the principal agent of his the intention to submit a claim for a revision to the date for of practical completion or any previous revision thereof resulting from such delay, failing which the contractor’s right to claim shall lapse shall forfeit such claim.

In addition, Clause 29.5 of the fifth edition has been somewhat amended as follows:

This is somewhat similar to clause 8.4 in the FIDIC Red Book, where the entitlement to an extension to the time for completion arises if and to the extent that the completion “is or will be delayed by” the various listed events. There has recently been an English court decision (Obrascon Huarte Lain SA v Her Majesty’s Attorney General for Gibraltar) where, in the judge’s view, this suggested that the extension of time can be claimed either when it is clear that there will be delay (a prospective delay) or when the delay has been at least started to be incurred (a retrospective delay). While this decision is not a JBCC related decision, the principles appear to be consistent with the amendment of the JBCC to the use of the words “such delay” – in other words, a retrospective delay instead of a prospective delay.

The remainder of the amendments to the Clause are relatively insignificant and it should be noted that the basic principles to the lodgement of claims by the contractor have remained largely unchanged.

The time bar that was contained in Clause 29.5

of the fifth edition has been removed completely from the sixth edition. Previously the contractor could lose his claim if he did not submit his de-

tailed claim within the prescribed time limit. Now, even though there is still a prescribed time limit, a failure by the contractor to submit a detailed claim within such prescribed time limit does not seem to carry any consequences.

Conclusion In conclusion, the claims provision for a revision to the date for practical completion has been somewhat relaxed. While the time bar for the submission of the initial claim has not been removed altogether, it appears as though the drafters of the sixth edition wanted the clause to read as wide as possible and only have the time for commencement of the 20 days period for submission of the notification to commence once the delay is actually being felt by the contractor.

In addition, the removal of the time bar for the submission of the fully detailed claim certainly takes the pressure off contractors, although it is surprising that as a compromise for employers, no alternative consequences for late submission were provided.

“… the contractor shall, submit a claim for the revision of the date of practical completion to the principal agent within forty (40) working days, or such extended period the principal agent may allow of the delay ceasing, submit such claim to the principal agent, failing which the contractor shall forfeit such claim from when the contractor is able to quantify the delay in terms of the programme.”

The first significant change to Clause 29.4.3 is “from the date upon which the contractor became aware of becoming aware or ought reasonably to have become aware of the potential such delay”. By changing the word “potential” delay to “such” delay, this implies that the time for submission of the notice of claim only starts running from the time that the delay is actually felt by the contractor, and not from when he foresees the

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BOIDUS FOCUS October 2014

Editor’s Note / Guest Columnist Page 25

Editor’s Note: Thank you for making the 2014 CBD Executive Seminar a Success On the 10th of October Boidus Media returned to Lansmore Masa Square to hold the second installment of an event we held for the first time last year. Boidus Media continually strives to create platforms for progressive dialogue between key stakeholders in the Botswana built environment industry and stakeholder gatherings such as this seminar form a crucial part of this endeavour.

ceedings a dignified start highlighting the challenges that exist in Botswana’s construction industry and the crucial role public and private sector collaboration can play in overcoming them. The key note speaker Vuyo Ntoi of African Infrastructure Investment Managers (AIIM) opened the eyes of attendants to how great opportunities in infrastructure development are being unlocked across the African continent.

In May 2013 we brought together key stakeholders of Gaborone’s new CBD development including investors, development owners, government leaders and industry champions, to share ideas and opportunities about the CBD. This time, with the CBD still at the centre of commercial development, we put the spotlight on the issue that’s being touted as the key to unlocking Botswana’s development potential going forward – Private Public Partnerships (PPP’s).

We heard from Zurich about insuring and managing risk in PPP infrastructure projects, from FNB about commercial property financing products, from the BPOPF about realising institutional investment in Botswana’s infrastructure and from BITC about Special Economic Zones. Crucially, representative from Selebi Phikwe, Francistown and Palapye spoke about the infrastructure investment opportunities that exist in these towns as they each aim to position themselves as major urban centres within the next ten years. All this made for a comprehensive roadmap on how PPP’s can be used to shape infrastructure development in Botswana.

Under the theme ‘Investing in Infrastructure Development through PPP’s in Botswana’ the CBD Executive Seminar 2014 brought together PPP Policy Makers, International experienced PPP experts, Private Equity Funders, Local Pension Funds, Local Property Development Company Owners and Fund Managers to discuss how PPPs can be used to kick-start Botswana’s development. It was truly a remarkable event consisting of some insightful presentations and perceptive discussions.

BOIDUS TEAM

The President of BOCCIM Mr. Leta Mosienyane and the Minister of Infrastructure, Science and Technology Hon. Johnie Swartz gave the pro-

Boidus Media would like to extend our gratitude to everyone who made this event the resounding success it was, including our VIP guests, delegates, presenters and reporters.

We would especially like to thank our sponsors, without whom this event would not have been possible. They are First National Bank (FNB), National Development Bank (NDB), Zurich, Masa Centre, Maitisong, RPM, Fine Brands, Gourmet Grill Masa, The Patriot on Sunday and Kutz & Tutz. Le kamoso.

MANAGING EDITOR

ART DIRECTOR

DISTRIBUTION

H. Killion Mokwete

Bridget T. MacKean

Martha Rooi

DEPUTY EDITOR

GRAPHICS ASSISTANT

GUEST COLUMNISTS

Kibo Ngowi

Taelo Maphorisa

STAFF WRITER

SALES

Keeletsang P. Dipheko

Tara Michelle Theron Tebogo Sekwenyane Thabo Sarona

Akheel Jinabhai Euan Massey & Natalie Reyneke Othata Batsetswe Tony Silemba Tshepiso Motlogelwa

ACCOUNTS

Ngwewabo Mokwete

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LAND TENURE IN BOTSWANA

by Akheel Jinabhai

WHAT IS LAND TENURE?

Land tenure can be described simply as the relationship, whether legally or through custom, among people with reference to land. Within this relationship there are rules which govern how property rights (right to occupy, right to use, right to have access, right of way, etc.) are to be allocated in relation to land. A tenure system would therefore seek to regulate who can use what portion of land for a specified period and give the conditions of such granting of rights.

Terms to Consider in Relations to Land Tenure

• State land-refers to land that is owned by the Government of Botswana and can be found in rural and urban areas.

• Freehold land refers to land in which you can enjoy ownership in perpetuity (forever).

• Tribal land refers to land that was formally administered by Chiefs but is now under the custody of decentralised land boards.

• Registered Leases – A lease of 10 years or more registered with the Deeds Registry is considered as immoveable property. If the applicant wants to register a portion then the application should be accompanied by a diagram approved by the Director of Surveys and Mapping. Once registered, the Lease is mortgageable.

• Conveyance is the legal process of transferring property from one person to another.

• Deed of transfer is a document used in conveyancing to transfer real property from its legal owner to another party.

• Customary Grant of Tribal Land – This grant is available to citizens only. Land held under this grant cannot be encumbered. This grant can be converted into a common law grant of lease. If such approval is granted then the land can be mortgaged once the lease is registered at the Deeds Registry.

• Agricultural Land – This can be State land,

Freehold land or Leasehold land. In terms of the Land Control Act of Botswana (Cap 32:11), citizens or majority citizen owned entities shall be given preference in purchasing the same. If a non-citizen wishes to purchase the same, the transaction has to be advertised first and the consent of the Minister of Lands and Housing obtained.

Prior 1966

When the foreign settlers came to Botswana (Then known as British Bechuanaland Protectorate) in the 1800s they set a proclamation which made the laws that were in force in the Cape Colony (present day South Africa) enforceable in the Protectorate. This proclamation meant that all land that was previously owned by the indigenous people who were the Basarwa was now converted into Crown land meaning the land belonging to the Queen of England. However, before these changes there were practices in places which were not totally abolished by this proclamation.

Before Independence, Botswana had customary rules and procedures which governed land rights.

One important feature of that system was the right of avail (being granted land by virtue of being a tribesman). This right was not by the discretion of the Chief or his elders. The Chief was expected to provide land (residential, grazing and arable) for all the inhabitants of his tribal territory. The tribesmen were duty bound to protect and conserve his land.

Even though technical concepts like ownership were unknown, rights to land, especially residential, were exclusive and permanent. In terms of arable land, the allocation was made by the heads of families. The size of the extended family was taken into consideration. The land would be allocated to the family permanently and they had a right to

request a new field if the one they occupied lost its fertility.

If an area was not used as a residential space or as arable land, then it was automatically considered as grazing land. There were no fences so everyone had a right to graze their livestock anywhere and cattle roamed freely.

After 1966

When Botswana gained independence in 1966, the State Land Act was formulated which turned Crown land (owned by British Monarchy) into State land. This Act gave the President power to be able to dispose of this State land. This land, especially urban land, is administered by Central Government and Local Government Councils. The establishment of the Tribal Land Act provided the establishment of tribal land boards therefore taking tribal land control from the Chiefs and vesting it on the land boards. The vesting of such powers in the land boards was placed in trust for the benefit of all citizens of Botswana. The Tribal Land Act did not change the customary rules entirely but just vested the authority in the land boards and allowed for certificate as proof of ownership of land. The Act went further to provide for granting of common law leases. At the time this was a major innovation from the way things had been done all along.

In 1966 the bulk of the nation’s land was tribal land (49%), a small amount (4%) was freehold land and the balance was state land (47%). By 1980, a lot of state land had been converted to tribal land, whilst a vast amount had also been converted and purchased as freehold land. The figures now changed to tribal land (69 %), freehold (6 %) and state land (25%). To date, the figures are also slowly increasing. What the Government seeks to do is to increase tribal land at the expense of both freehold and state land.

In urban areas state land is allocated on a deed of fixed period state grant which is registered with the Deeds Registry. This grant is usually for a 99 year period. In relation to commercial plots, the grants are for a 50 year period. In low income areas, state land was normally allocated by way of a certificate of rights which has now been taken away in favour of the deed of fixed period state grant. In order to assist people in these areas the Self Help Housing Agency (SHHA) was formed. SHHA was formed in every town in Botswana to allocate land to citizens.

This land is not subject to title deed registration and is only held by a certificate of rights. The owner needs the authority of the township authority to alienate the property. This land cannot be mortgaged as it cannot be diagrammed. The certificate of rights can be converted to a Deed of Fixed Period State Grant if the land is properly surveyed and consent granted.

The Sectional Titles Act, No. 7 of 1999 introduced a new form of ownership of immoveable property in Botswana. This title gives the holder real rights to a specific portion (unit) of a building. The area which is not part of the unit is held as common property by all unit owners. We shall discuss this form of ownership of property, in detail, in future articles to come.

The above is meant only as a brief introduction to the land tenure in Botswana. The information given is general and is not intended as legal advice.

Akheel Jinabhai is the Founder and Managing Partner of Akheel Jinabhai & Associates

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BOIDUS FOCUS October 2014

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BOIDUS FOCUS October 2014