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BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER | Vol. 5, Issue 5 | MAY/JUNE 2015
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HOME IMPROVEMENT
DIY Special: How to install
Ceramic Floor Tiles
PROFESSIONAL PRACTICE
LOCAL NEWS
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Turnstar Set to Retain Position as
Largest Property Company p3
MAIN FEATURE
Finding Alternative Property
Financing Solutions
• The Botswana banking industry is in dire straits and the property market has not been spared from this decline in the fortunes of local banks. • Fewer morgatge solutions are available on the market than ever before. • In the midst of this climate there is still a need to access funding for property development outside the established norm. Boidus Focus explres some of the alternatives available in the market. By Kibo Ngowi
Making Subcontracting
Make Sense
Get to Builders Warehouse.
Get it done! SPEAK TO US ABOUT A TRADE ACCOUNT! BUILDERS WAREHOUSE BOTSWANA: GABORONE: Airport Junction Shopping Centre, Plot No. 70665, A1 Road, Tel: 00267 393 0533
FRANCISTOWN: Plot Number 31247, Mowana Park, Somerset West Industrial, Along A1 Road, Tel: 242 5200
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Understanding
Mortgage Bonds By Akheel Jinabhai
A creditor who advances money to a debtor usually requires the debtor to provide some form of security for the repayment of the debt. There is personal security and real security. For the purpose of this article we are more concerned with real security. In instances of real security, a borrower (mortgagor) offers his immovable
BUILDING WITHOUT A BANK: Boidus Focus Speaks to leading building materials suppliers to explore their financing schemes
CROWDFUNDING –
The Future of Raising Capital, writes ^ Erik van Eeten
ERIK VAN EETEN IS A CO-FOUNDER OF REALTY AFRICA
How Institutional Investors can play a role in Funding Property and Infrastructure Development, writes OTHATA BATSETSWE, AN INDEPENDENT ECONOMIST.
Botswana Insurance Company:
Construction Insurance Defects Exclusions
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p3,4,5,6
The Real Estate Advantage:
The Peculiar State of Stocks Versus Real Estate in Botswana
State-of-the-art Campus Indoor Sports Centre By Arnold Tombo
Built at a cost of over P300 million and boasting an arena with the capacity to seat more than 5000 people, the University of Botswana has just completed construction of
Design pad:
Project Feature Regent Lodge
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property to a lender (mortgagee) as security for the repayment of a debt. The mortgagor can be an individual, company, close corporation, partnership or trust. The mortgagee (e.g. a Bank) will cause a mortgage bond to be registered over the immovable property as security for the fulfilment of the mortgagor’s obligations. p7
Inside The UB
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LET US TAKE CARE OF YOUR ASSETS AND ACHIEVEMENTS WHILE YOU FOCUS ON YOUR VISION. Ground Floor West Wing Plot 67977 Fairgrounds Private Bag BRS15 Gaborone, Botswana TEL: +267 3105137 FAX: +267 3105139 Email: richard@sunshineinsurance.co.bw Mobile: +267 7411104 Email: weston@sunshineinsurance.co.bw Mobile: +267 47762621
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a state-of-the-art indoor sports centre. Boidus Focus takes you inside the multi-million pula facility which is the first of its kind in Botswana..
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LOCAL NEWS P2
BOIDUS FOCUS MAY 2015
NEWS BRIEFS May 2015
Compiled by Keeletsang P. Dipheko
Standard Chartered, BIC Partner to provide Insurance Solutions
VISION
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The company specializes in waterproofing products, in conducting maintenance in basements, concrete roofs, IBR roof sheets, elevator pits, dams, tiled roofs, as well as asbestos roofs, Our products are 09001 certified by Burea VERITAS Quality international. Our main aim is to use highly qualified team who had specialized training in installation of various products Pizmond Investments (Pty) Ltd also supplies the following:» Waterproofng products. » Mining equipment. » Lubricants. » Roof coating products (paints) » Flooring chemical (epoxy Floorings) » Expansion joint sealants Plot 8901, Unit 1 Maruapula MISA Building PO Box EA 741, EAH Gaborone, Botswana
Standard Chartered Bank of Botswana, through its subsidiary the Standard Chartered Bank Insurance Agency, has partnered with Botswana Insurance Company Limited to distribute general insurance solutions to its rapidly growing client base. The expected distributed General Insurance solutions include Motor Protection, Homeowners Protect, Card Protect, Fire and Buildings Combined Protect and Goods in Transit Protect. Standard Chartered Bank Wealth Management leads the way in product innovation and has a proven track record of rolling out innovative solutions for Retail, Commercial, Corporate and International clients. However, insurance in Botswana continues to be difficult to access for the vast majority of people.
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BHC records lower results Botswana Housing Corporation has recorded a lower financial performance than expected in the year 2013/14 reporting period due to Phakalane’s sewerage infrastructure delays. The corporation’s annual report shows that revenue went down by 36 percent from P467 million recorded in 2013 to P300 million in 2014. The lower than expected financial performance is attributed to the corporation’s inability to sell the recently completed 516 housing units in Phakalane due to sewage infrastructure development in the area. However the corporation’s rental income stream remained virtually unchanged at P186.6 million, compared to P186.7 million because the corporation has not increased its rental charges since 2004.
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The Francistown stadium will miss the June 8 handover deadline. According to the contractor China Jiangsu International, the facility will be handed over to the government before the end of July this year. Project Manager James Tasethabi says the contractor had requested a 35-day extension. He said the contractor is doing remedial works and has requested that the June 8 deadline be extended by 35 days. MIST Permanent Secretary Dikagiso Mokotedi said the contractor requested an extension because of delays caused by the Christmas break and other minor remedial works that kept on cropping up during renovations.
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Airport expansion to boost business Selibe Phikwe Economic Diversification Unit (SPEDU) and Bango Trading have signed a Memorandum of Understanding to facilitate the beginning of the airport refurbishment project which took place on May 18 at the SPEDU offices. Bango Trading has been awarded a tender to refurbish Selibe Phikwe airport at a cost of P14.7 million. SPEDU Chief Executive Officer Dr. Mokubung Mokubung urged Bango Trading to complete the project within the stipulated time and budget to avoid cost escalations and any setbacks. He said that after the airport project had been completed they would approach airlines such as Air Botswana and South African Airways to use it. Find these stories and more at:
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BOIDUS FOCUS APRIL 2015
BOIDUS FEATURE P3
Turnstar Set To Retain
Position as Largest Property Company
BAD TIMES for Botswana Banks By Kibo Ngowi
By Kibo Ngowi
Turnstar Holdings, the largest BSE-listed property company (by property value) with property assets of P1.8 billion, is set to retain its dominant position on the back of strong performance and an expansion of both of its key properties. Presenting the company’s financial results for the year ended 31 January 2015, Turnstar Managing Director G.H. Abdoola revealed positive trends including a rise in group revenue by 6 percent and a rise in group profit (before tax and fair value adjustment) of 8 percent. The group’s portfolio consists of 9 properties in Botswana and 4 in Tanzania but the largest share of the value is in the two large retail developments Game City in Gaborone and Mlimani City in Dar es Salaam.
Despite already being the largest shopping centre in Botswana, Game City is undergoing an expansion to include additional retail space with a fashion avenue, a restaurant area with a food court, as well as an entertainment area and a parkade. According to Gulaam, the additional space is 80 percent pre-let. Meanwhile, Mlimani City is being expanded to include additional retail and commercial space along with a basement parking, additions to the Conference Centre and a Botanical Garden. According to Gulaam, this additional space is fully pre-lent. Once completed, the undergoing expansions are expected to push Turnstar’s property value up past P2 billion and further solidify its position as a market leader.
QS Body Raises Funding
Through Events &
Government Support By Kibo Ngowi
Botswana’s Quantity Surveyor fraternity continued their drive to achieve selfregulation on the 22nd of May when the Institute of Botswana Quantity Surveyors (IBQS) and the Quantity Surveyors Registration Council (QSRC) jointly hosted a fundraising dinner gala at the Gaborone Sun Hotel.
Backed by government, the Botswana QS community has been on a fast-track to achieve self-regulation that began with the passing of the QSRC Act in August 2013 in Parliament. In April 2014 the founding members of the Council were appointed before officially launching their activities in July 2014. In March this year the QSRC received its first subvention of P1.6 million from government and now, according to QSRC Chairman Gontse Kgosiemang, the organisation in the process of securing an office space and will soon also begin its search for a registrar. Permanent Secretary in the Ministry of Infrastructure, Science & Technology
Dikagiso Mokotedi, who was also on hand for the occasion, emphasised that government is fully committed to supporting self-regulation for the construction industry. He underscored that it was a tough sell to convince the powers that be that government should financially support the establishment of bodies such as the QSRC when no such assistance has been given to bodies such as those regulating lawyers and doctors. He was able to convince them that it is imperative for government to do so because construction is a matter of national interest. He however warned that government subventions are temporary and are only meant to help these bodies reach a point of self-sufficiency. The funds raised during the dinner, along with a golf day the sister organisations held recently, will be shared between the IBQS and the QSRC. The dinner event was sponsored by Ba-Isago University College and Botswana Insurance Company.
The Botswana banking industry is in dire straits. Econsult Botswana revealed in their economic review for the 2014 third quarter that profitability for commercial banks dropped sharply with the post-tax return on equity falling from 55 percent in 2006 to 25 percent in 2013.
is why the Bank of Botswana (BoB) has a stipulation that every bank needs at least a 5% reserve deposited with the BoB for every amount of money it gives out (The reserve requirement was recently revised downwards from 10% in March 2015 so as to stimulate the banking sector).
Meanwhile, over the past five years, liquidity in the banking industry, as represented by outstanding Bank of Botswana Certificates (BoBCs), has declined from P17.7 billion as at end-2010 to P4.6 billion in February 2015. The property market has not been spared from this decline in the fortunes of local banks but to understand how we arrived at this current predicament some background information is necessary.
The property market in Botswana was experiencing rapid growth largely driven by access to credit. This however began to change a few years ago when Linah Mohohlo, Governor of the BoB, introduced a number of contractionary regulatory changes that resulted in reduced deposits and declining liquidity, effectively ending the honeymoon of high profit margins for local banks.
The Bank of Botswana sets a bank rate; that rate +1 is called Prime and banks then set their interest rates using Prime as the base rate. For instance, if the bank rate is 8% then Prime is 9%; so if a bank gives you a loan at Prime +2 you’re paying 11% interest on your loan. Banks make part of their profit from the interest rate of the loans they give out. Banks have many sources of money but the key source is deposits. When people save their money with a bank, that money collects interest and increases as a result, but in order to turn a profit, this interest rate isn’t as high as the interest rate banks charge people and businesses who borrow money from the bank. The difference between what rate the bank charges on loans and what it accords depositors is their profit margin or what is called Net Interest Income (NII). Of course this is an oversimplification of the banking system. There are many other factors at play and a healthy bank with proper risk management systems in place aims to always have enough money to pay out those seeking to withdraw from their savings. One of the factors that lead to an economic crash is a run on the banks caused by some panic which causes people to withdraw all their money and leads to the whole economic house of cards crashing down. This
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“Going forward, banks will need to be more innovative in attracting and appropriately remunerating deposits,” Mohohlo said at the BOCCIM National Business Conference last year. “Banks are transiting from a high interest rate environment, rapid balance sheet growth and relatively high profits on the back of high interest rate spread, to a period of low interest rate environment and a more competitive market. The resultant reduction in interest rate margins is indeed a welcome development for customers.” One of the regulatory changes directly affecting the banks was the Central Bank’s reduction of the bank rate; for the consumer, the effect of this has been that those who took out loans before the bank rate was reduced are now paying less monthly instalments on their loans, due to the rate adjustment. Meanwhile the bank rate reduction also has the effect of making saving with a bank a less attractive option as the interest by which the money appreciates in value has been reduced so people instead grow their money through other options such as investing in shares on the Botswana Stock Exchange, placing their funds with fund managers such as Stanlib and BIFM as well as employing saving schemes Continues PAGE 5
BOIDUS FEATURE P4
BOIDUS FOCUS MAY 2015
Building Without a Bank: Building Materials Suppliers Financing Schemes By Peggy Dipheko
JAMAL TRADING COMPANY | MANAGER MR. BABU
HASKINS | MANAGER ANDREW FIELD
Customers are allowed to change the goods if they want; left over goods are also collected by truck and the money automatically goes to your account.
“People can build a house the cheapest way with good quality materials without stepping into a bank,” says Jamal Trading Company Chief of Marketing Didarul Islam Bhuiyan. At Jamal they have a policy for customers who want to build without bank loans. You can open an account with Jamal Trading Company with a minimum of P1000and then deposit money on a monthly basisor whenever you have money. Ifyou don’t have a plan Jamalprovides a free 3Dhouse plan which includes roofing elevation; if you do have a plan Jamal provides a free quotation. After you have built the foundation they can provide you with a plan but they usually prefer to connect you with an architect. When the building process starts materials are collected but you collect materials equivalent to the money you have in your account. The account gives value because it comes with a special price for all materials which is even lower than the discounted price. Materials are delivered within a 40km radius for freeand with a minimal charge for fuel when delivering to locations outside a 40km radius.
Bhuiyan insists that they do not allow customers to take their money back out of the account once it has been deposited – the money in the account is strictly for development.“We don’t give the money until the property has been developed; we block people from taking the money because once you build it is something you will still have in future.” Jamal Trading also does interior design and landscaping for free in addition to offeringadvice on what materials to use for the finishing touches. Unlike a bank loan, no interest is charged on this policy. “The policy has low price but no interest; we don’t give people materials on credit because with credit there is high interest so we encourage them to open an account,” insists Bhuiyan. “The owner is working with the builder directly; everything you use for the house is new and what you want from the start.” Bhuiyan urges people to build their own property as with this policy the property is yours because you have built it with your own money; once complete the property can also help you pay for other expenses such as medical aid. This also frees clients from the potential embarrassment of their properties being taken away by the bank.“People should always think of developing property first, rather than jumping intopaying medical aid and other expenses out of their own pockets,” asserts Bhuiyan.
you are building through a bank Haskins liaises with the bank to ensure payment is done on progress of the project. It is only once this communication channel has been established that Haskins begins to work with the builder to get the right materials: “We sit down with clients to understand what they need and make sure they collect the right materials.”
“At Haskins we don’t have a policy for people who want to build a house without a loan,” Haskins Manager Andrew Field told Boidus Focus. “However we do help in some instances when the project is not finished and more materials are needed.” According to Field, the assistance they provide is for instances in which a customer who was buying materials for building is unable to finish the project due to an inability to buy enough materials. Haskins gives materials to such customers on credit to be paid within two months. “We don’t fund long term projects,” stresses Field. Haskins prefers to deal with clients who are buying in cash or through a bank loan so the credit facility is used in only a few cases. If
them after scrutinising the individual’s income patterns. Shaikh says the system is based on salary; before they can approve anyone, Builders World reviews the individual’s salary and bank state-
“We provide a credit facility to Government employees and employees of Parastatals,” says Majoka Head of Sales Love Majoka. “Our assessment criteria are more flexible than the banks and – best of all – we don’t require any form of security.” Majoka says for one to qualify for this service the client only needs to bring a payslip to allow the store to assess the credit amount that can be offered to them. Thereafter, the client can take a look at the instalments and size up the affordability: “If the client is happy with the quotes and instalments, they sign and we deliver the goods. Our repayments are collected from source and by
effect the client doesn’t have to come in to pay the instalments every month. The process is easy and quick.” Like other building material merchants, Majoka Hardware encourages people to build their own property as buying comes with many disadvantages. At the moment, buying might look cheaper due to the high rate of property purchasing going on in the market. “Hiring a professional contractor company could be up to five times more expensive than using a local labourer,” cautions Majoka. “Residential properties that are bought ready-made have many layers of margins – contractors, developers, estate agencies, suppliers and sales people, amongst others. We bypass all these by providing an individual with all the goods needed to build; all they need to do is find a local labourer who can build for them at a reasonable cost.”
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Field says the issue of whether it is good to buy or build depends on the area in which the property is located because in some areas if you fix or renovate you might not get the money back: “In most cases it is cheaper to build because you can get the land cheaper but people should be careful when they renovate. At times it is cheaper to buy; currently it is cheaper to buy than to build in Gaborone.”
BUILDERS WORLD | DIRECTOR MR SHAIK
MAJOKA HARDWARE Majoka Hardware is a rising giant in Botswana’s Building Material and Supplies industry and the organisation has already developed a system for clients seeking property financing options outside of the banking sector.
For Haskins to approve a customer who wants to build with their materials the customer has to be employed by a reputable company known by Haskins and possess a cheque book. All these things are being done so that Haskins can have assurance of compensation in case the customer fails to pay the full cost of the materials. During the building process the bank processes each payment before the builder can move on to the next stage of development.
Builders World’s mission is “to be the people’s first choice when considering the purchase of any product or service which the group offers.” Working towards this task, the company has a system called a ‘Post Dated Cheque Account System’. According to Builders World Director Salim Shaikh, this facility is offered to people with permanent jobs and allows them to acquire materials and pay at a later date agreed upon by both parties. Most of the customers who benefit from the system are civil servants. A few customers without permanent jobs also benefit but the organisation only approves
ments; after this process a sales agent sits down with the customer to understand his/her needs and how the company can best satisfy these needs. After approval, the credit limit is based on the customer’s salary and payable over the course of three to four consecutive months. “This system is the best system because there is no interest,” says Shaik. “The process is slow to build but when you build the house it is totally yours.” Shaikh says he understands that people will at times prefer to buy but he encourages people to build their own houses. He explains it is cheaper and allows one to build a property of their own taste with the material they like, depending on availability of resources: “People must build their own houses; it is always better than buying a finished house.”
EDITORIAL 5
BOIDUS FOCUS MAY 2015
BAD TIMES for Botswana Banks Continued from PAGE 3
from insurance houses such as Botswana Life, which often offer above bank rate returns. This means that the banks have fewer deposits, which in turn means they have less money to loan out and therefore less interest income. Additionally, since the majority of mortgage loans are prime linked, the interest received on existing loans has also declined, meaning even less income for banks. By December 2014, Statistics Botswana revealed that there was a four percent decline in total deposits held by local banks from P53.6 million to P51.5 million. Deposits of resident private businesses fell by P961 million while those of parastatals fell by P460 million. Due to a lack of corresponding growth in deposits, the industry’s loan to deposit ratio rose from 47 percent in 2007 to 88 percent in 2014, leaving some banks almost fully lent. The result of this is that banks feel reluctant to give out any more mortgage loans. The reality is that the current liquidity constraints mean that the banks just don’t have the money to loan out; and those banks that do have the capability to give out mortgage loans charge
a higher rate on those loans at rates which are less attractive to consumers. According to the 2015 Monetary Policy Statement, the annual increase in mortgage lending decreased from 40.1 percent to 18.4 percent while unsecured lending fell from 19.6 percent to 5.3 percent between 2013 and 2014. A source close to one of the leading banks in the country confirmed to this publication that the bank has closed its mortgage department. People can still apply for mortgages but obviously it is far harder to be approved for a mortgage loan than it previously was and the fortunate few who do get their loan approved get their money through some other channels and not the closed mortgage department.
means customers will continue to look for alternative sources of financing, which in turn leads to a continued decline in deposits and therefore profitability. Many banks are feeling the crunch of the current situation and making cutbacks where they can. For instance, both Standard Chartered Bank and Capital Bank recently retrenched large portions of their staff. The local banks’ falling prosperity came at a time when, because of escalating property values, many Batswana have been gradually eating away at the value of their properties through equity releases and loan consolidations.
The official word from the bank is that this department is still open and the bank in question is mum on the closure of their mortgage department for the same reason that all banks are reluctant to open up about the current financial difficulties. Lack of liquidity means slower credit growth which leads to slower economic growth.
As a result, banks have been forced to foreclose many of their property mortgages. However, the same banks find themselves in a quandary because they are unable to sell their repossessed properties as liquidity has been compressed. There are too many foreclosures in Botswana’s residential property market. Too many people are desperate to shed off their properties in the face of limited demand. Therefore property prices are expected to go down.
The inability of banks to give out loans
However, it’s not all gloom and doom. Ex-
Construction Insurance – Defects Exclusions By Christopher Burton
When considering the defects exclusion, the basic policy must have no limitation to the scope of cover provided, for defective design, materials and workmanship, prior to the incorporation of the exclusion. The operative clause will typically read: “The insurers will indemnify the insured in respect of physical loss of or damage to any of the property insured arising during the period of insurance from any cause not excluded.” The defects exclusions address three aspects:
In this fourth article I would like to look at some of the different defects exclusion clauses available to illustrate the variety and complexity of works damage wordings. Contract works insurance policies provide varying degrees of cover for defects and while the wording of these clauses may be subtle, they can have a dramatic impact on a policy’s response to a claim. Damage as a result of defects during the construction of a project can often be significant, potentially running into the millions of Pula. It is for this reason that it is critical to fully understand and appreciate the subtle but important differences in coverage available under an insurance contract.
• Defects of design, plan, specification – The design, production of main plans drawn up by the architects, planners, designers and technicians; • Defects of Materials – Materials that are outside of the design criteria and are not fit for purpose; • Defects of Workmanship – Relates to construction and assembly work that is incorrectly undertaken either on-site or off-site. There are several sets of defects wordings used internationally including “DE” wordings written by the Lloyds of London and “LEG” wordings written by the London Engineering Group. Looking at the “DE” wordings of which there are five:
perts believe that while property prices will certainly decrease, the current situation will not lead to a full-on property market crash. The Botswana economy will likely emerge from these dark times and keep moving forward but in the midst of this climate there is still a need to access funding for property development, meaning that alternative sources of funding outside of the banking sphere are now more important than ever. Boidus Focus explores some of these alternative funding options.
• DE1 – Excludes all loss or damage due to defective design, materials or workmanship (either direct or in consequence); • DE2 – Excludes property that is ‘defective’ and property that relies for its support on the defective property including access costs but provides cover for other insured property that is free of defect but is damaged by the defective property; • DE3 – Excludes property that is ‘defective’ including access costs (direct or consequential) but provides cover for the remainder of insured property that is free of such defect and is damaged by the defective property; • DE4 – Excludes any component part or individual item that is defective including access costs (direct or consequential) but provides cover for other parts or items of the insured property that are free of defect and damaged by the defective part; • DE5 – Provides full cover for both defective and non-defective property provided there is damage to non-defective insured property as a result of the defect. No cover exists for the costs of improvements to the original design, plan, specification, workmanship or materials. The trigger for cover under DE2 to DE5 is that damage must be caused to other property which is free from such defect but is damaged in consequence of the defect. Not surprisingly, the DE5 wording is difficult if not impossible to
negotiate. Many insurers see little difference between DE3 and DE4 wordings. DE4 wordings are available locally but the problem of what access costs are covered remains as some commentaries state that no access costs are covered even where there is consequential (and therefore indemnifiable) physical damage. The basic DE4 wording states: “The costs necessary to replace repair or rectify any component part or individual item of the property insured which is defective in design plan specification materials or workmanship but this exception shall not apply to other parts or items of the property insured damaged as a consequence of such defect.” One solution is to add an additional clause - Removal to Gain Access. This clause (notwithstanding the DE4 exclusion) extends cover to include the costs of demolition, dismantling, removal, destruction or opening up and thereafter the costs of reinstalling and/or replacing any component part or individual item of the property insured which is free of defect and which has of necessity had to be demolished or destroyed in order to gain access to that component part or individual item of the property insured which has been damaged. Contract works policies, as can be seen, are both complex and varied.
GUEST COLUMNIST P6
BOIDUS FOCUS MAY 2015
CROWDFUNDING –
INSIDE THE UB STATE-OF-THE-ART
Raising Capital
By Kibo Ngowi
By Erik van Eeten
Over the past five years liquidity in the banking industry, as represented by outstanding Bank of Botswana Certificates (BoBCs), has declined from P17.7 billion as at end-2010 to P4.6 billion in February 2015. By the end of 2014, nearly all commercial banks tightened their loan and credit lending criteria as the loan/ deposit ratio in the banking sector rose to unprecedented levels. Traditional banking has limitations with the ability to lend linked to the available deposits, reserve ratios, interest rates and other factors. However, alternative investment and funding opportunities, such as peer-to-peer investing and crowdfunding, have become a viable avenue for investment in the property sector, particularly in the commercial segment. Most local developers borrow from Botswana-based commercial banks to develop property. A few large listed entities, such as Letlole La Rona, New African Properties, RDC Properties and Primetime Holdings can raise funding through their listings on the Botswana
Stock Exchange. Indeed, Primetime recently launched a bid to raise P96.8 million for a new development from its unit-holders. However, crowdfunding will open up property development in Botswana to a global investor audience and could be the answer to liquidity problems in Botswana, especially in the commercial property and large-scale development space. So potential developers of all sizes go from the current constrained liquidity situation where virtually nobody is willing to lend on reasonable terms, to exposure to investors with potentially trillions worth of capital parts, of which they are willing to invest in Botswana property. With crowdfunding, investor access is not limited to investors in Botswana; it has the potential to attract investment from people outside the country. Liquidity in international markets has stabilised and so, automatically, crowdfunding opens up the potential for investment from these markets, where trillions worth of capital is available to invest in worthwhile projects and transactions. The crowdfunding platform gives investors from anywhere around the globe access to property investments in southern Africa. From a rural dweller to a high- flying banker or investment executive, they share the same access to the same opportunities. This democratisation of property investment is unprecedented on the continent. Also, it provides new opportunities to developers to showcase their projects to a global audience and build a public track record. This broadens the scope for both developers and investors and offers them a viable non-traditional alternative for promoting, funding and investing in property development. Erik van Eeten is a co-founder of Realty Africa, a new property crowdfunding platform soon to be launched in Botswana. You can learn more by visiting www.realtyafrica.com
Indoor Sports Centre Continued from the FRONT PAGE
The University of Botswana has just completed construction of a state-of-the-art Campus Indoor Sports Centre. Boidus Focus takes you inside the multi-million pula facility which is the first of its kind in Botswana. The building, which is composed of a four storey structure, is primarily built out of concrete and steel. The façade appears in mammoran/gamma zenith finish and glazing. The facility will be mainly used for various indoor sporting codes. There are also laboratories, classrooms and offices for the Department of Physical Education. The academic side has distinctive floors but the rest of the facility is structured in a stadia shape. The arena is currently marked for four sporting codes – volleyball, basketball, badminton and netball – and it is possible that in future other indoor sporting codes could be played in this facility. The stadia seats around 3600 people but when the arena floor is also used it can seat up to 5600 people. The playing surface has a diameter of 45 metres and at the roof level the diameter is 99 metres. Other sporting codes are accommodated with four squash courts, a martial arts studio, an aerobics room and two gyms, which are all on the periphery under the stadia. “Every university must have a facility like this,” said UB Acting Director of Institutional Planning Mr. Phonan Jackalas in an interview with this publication. He further explained that the all the space in the facility is functional. Construction began in 2009 and while the project was originally scheduled to reach completion in mid-2012, it was only completed in March this year due to construction challenges. The cost of construction, including cost escalations, is around P329 million. It is envisioned that all students and staff at the University of Botswana will be able to use the facilities. It is possible that the public may be allowed to use the facility; however the modalities for use of the facility have not been established.
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OIDUS FOCUS Registered at GPO as a Newspaper | Volume 3, Issue #4
BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER
www.boidus.co.bw |
Sustainability Today: 06 Starting blocks with
change Botswana’s Architecture Design and Urban Landscape Newspaperclimate | JUN E 2013
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NEWS | page 02
EDITORIAL | page 04
Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant
Government to Promote IntroHow ready is Botswana for duction of Residential Developthe Inevitable Change towards BOIDUS FEATURE > Decarbonisation targets? ment into the CBD Global
SUSTAINABILITY | page 06
| Volume 4, Issue 7 | AUGUST 2014
Education Feature: Factors to Consider 18 When 15 Botho University Builds Establishing Francistown Campus
Sector Regulation
EDUCATION | pages 15
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Guide to School Programmes: 2013 Built Environment Careers Guide
BOIDUS EXCLUSIVE >
by Kibo Ngowi Bringing together key CBD stakeholders such as landowners and developers to engage on issues that affect their developments and investment
BR Properties - Botswana’s first Parastatal Property Investment Subsidiary by Kibo Ngowi
BR Properties is a pioneer organisation as it is the first example of a
company established to commercially exploit the real estate assets of a Botswana Government enterprise. The performance of this company will serve as a test case for many other
company apart from its counterparts
ing Director of Red East Construction, a
and defied the perception of poor con-
Subsidiary of the Zhengtai Group Mr Zhu Dexiang to try and understand what has set this Chinese construction
struction workmanship as a uniquely Chinese problem. >>> CONTINUED PAGE 07
The Boidus Media, State of our CitiesCBD Executive Seminar recently held at Masa Centre was by any measure
“I would say that as an engineer, especially in the construction field, experience is crucial, which is why firms tend to only hire engineers with a high amount of experience for senior project roles. And that’s understandable to me, because as much as you can go to school and read books, there’s no substitute for actually being involved in a project...” - Matlhodi Keaikitse
Government to Promote Introduction of Residential Development into the CBD
and the public in sharing of ideas and opportunities about our upcoming CBD. Envisaged as the future heart of
a resounding success. The Seminar
Gaborone City, the CBD is slowly tak-
event brought together for the first time ever in Botswana, key stakeholders of the New CBD development
ing shape and the seminar sought to make it a centre stage focus of discussions and professional deliberations.
such as investors, development owners, government, industry champions
In this Boidus event abstracts:
As you reflect on the ‘challenges and opportunities’ of developing a CBD, I would like to encourage all of you to think of this as what our generation will be remembered for having done, not only for this City, but for the nation, albeit through the toughest times. Assistant Min. of Trade & Industry, Hon. Keletso J. Rakhudu
“In this line of work you need to put yourself in a position where you have interest
and ownership Extract Seminar Paper Presentation by Jobe Ofetotse, DTRP of the projects you’re deal-
ing with because structural engineering is a sensitive field in that we are dealing Focus Special, find Introduction failings of the CBD concept but more with peoples’ safety. We are putting up Thank you to the organizers for inviting challenging to come up with solutions which are going to house lives DTRP to contribute to this important where problems havestructures been identified. A Successful CBD represents among other things; and highly topical seminar. That is what we hopeso theyou seminar will approach this profession can’t • A success CBD Image of the city and the country Felix Chavaphi Portfolio concentrate upon. • Generation of the country’s prosperity as simply a job. You have to see it as a of Botswana Library at a cost of P54 • Successful partnership between the Government & PVT[TOP] sector University In organizing it, BOIDUS have directly responsibility and a privilege.” Dimitri Kokinos: Portfolio Structuring Manager (Stanlib) million with Murray & Roberts responded to our concern that it is easy From a DTRP standpoint, the forum [BOTTOM] Gaborone Shopping - Tapa Moseki >>> CONTINUED PAGES 08, 13, 18 >>> CONTINUED PAGE 04 to be criticalTaxi and Rank identify perceived Complex by Boidus Admin
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departments with ambitions of creating similar entities. Boidus Focus met
with BR Properties Managing Director Oarabile Zhikhwa to explore the brief history and long-term ambitions of her organisation. >>> CONTINUED PAGE 05
LEFT: Felix Chavaphi, MIDDLE: Tapa Moseki, RIGHT: Matlhodi Keaikitse
Top: Guests and delegates at the CBD Event Bottom: Architect and Urban Designer Jo Noero from Noero Architects and University of Cape Town Right: Hon. Assistant Minister of Trade and Industry, Keletso J. Rakhudu, officially opening the event
TO COMMERCIAL
ANSWERS QUESTIONS.
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PRACTICE | pages 14, 18
Buy or Build a new Home: The Pros and Cons
Disentangling the Web – A Look at Infrastructure Project Management
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HOUSING | page 16
BOIDUS EXCLUSIVE >
“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”
by Kibo Ngowi & HK Mokwete
IDEAS EXPO BOTSWANA is an event designed to combine the best of creativity, business and technology in which participants are invited to give talks, do demonstrations, and show their work.
GABORONE tel:3951001 fax:3951003
The Idea of Eco Cities: Need for harmony between policy and green initiatives
Felix Chavaphi, founder of Norcon Group; Tapa Moseki, partner at Engineering CBD Executive Seminar Event Partners International; Matlhodi Keaikitse, partner at Ezra’s Contracting Services Realm of Splendor - Live, Work & Play With Breath taking Views
Boidus Focus sat down with the Manag-
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Meet three of Botswana’s best Event Feature: State of our CitiesBDC FAIRSCAPE PRECINCT, The rising engineers
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Interactive session for learning and networks.
Exhibition with the latest innovation.
Certification of attendance.
Latest trends and technology.
FNB’s CBD HQ – Intelligent Corporate Architecture by Kibo Ngowi
First National Bank (FNB) has moved into its newly built headquarters in Gaborone’s rapidly developing Cen-
the office facilities accommodating all the Bank’s divisions such as Electronic Banking, Private Banking, Property Fi-
tral Business District (CBD). Located in
nance, WesBank, Firstcard to mention
plot 54362, the Head Office called First Place, boasts the banks’ “one-stopshop” capability. With an expansion of
but a few, customers get a full bouquet of FNBB products under one roof. >>> CONTINUED PAGE 07
Birds-eye view
A Fresh Approach to Buiding a Home - Inside House Agolen II
by Leago Public Piazza
Sebina
As stakes an architect, opportunity to inopposed viewed, With high in the Botswana ofreality one area. to the way it is usually views from across the City. Boidus building offers, not only the as being static. There is no other ficedesign market,a Botswana Development was buildrecently given exclusive tour of Corporation’s is ofThe which been such the construction site to experience creation of aFairscape physical Precinct expression the Iconic ing tower typology thathas embodies a nosetbuilding to raise the barbut of also what the quality slowly emerging off the skyline first hand itself, possibility tion of architecture thanofthe house, the this exciting project as it office space is by delivering an A-
Fairgrounds is setting unmissable becomes reality. for architecture to mould the life and most basic and primal form of shelter grade mixed use development which view of a gleaming honey comb memories of its inhabitants. Therefor human beings. will see work, play and live become >>> CONTINUED PAGES 08, 13 lattice structure with unparalleled
fore, one could argue that architecture should be thought of as being alive as
Office of the President
The Relocation of the Office of The President Is it the Right Move Or Not? by HK Mokwete
The current debate in parliament over a budget allocation request of P195
the President (OP) is missing the bigger picture of what should be debated
million for the purposes of augment-
when procuring the office space for the
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‘Highest Office in the Land.’ >>> CONTINUED PAGE 04
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The Future of
EDITORIAL P7
BOIDUS FOCUS MAY 2015
Understanding Mortgage Bonds By Akheel Jinabhai
Continued from the FRONT PAGE
WHAT IS A MORTGAGE BOND? A mortgage bond is based on an agreement in terms of which the mortgagor borrows money from the mortgagee and agrees to pass a mortgage bond over a specific immovable property in favour of the mortgagee as security to the mortgagee for the repayment of the loan. All immovable property, improved or unimproved, that is registrable in a Deeds office can be mortgaged. This includes sectional title property. If the mortgagor defaults, the mortgagee may, in principle and after following certain legal procedures, sell the property to recoup the money owed to it. The mortgage bond covers the land and all improvements thereon, including improvements made after the bond was registered, e.g. alterations to the existing building structures on the property. A mortgage bond can only be registered with the permission of the legal owner of the property. Property held in joint ownership can be mortgaged only if all the co-owners give their consent. A person married out of community of property can mortgage his/her own immovable assets without spousal consent. However, if persons are married in community of property, one spouse may not mortgage the joint immovable assets without the other spouse’s written consent. The limited real right which is embodied in the mortgage bond is only conferred on the mortgagee after the bond has been registered at the Deeds Registry. To effect registration, a mortgage bond must be prepared by an admittedconveyancer, signed by the mortgagor and lodged at theDeeds Registry for examination and formal registration. In practice, an endorsement is made on the Title Deed of the property which is mortgaged, which records the details of the bond so registered.
takes steps to sell the property in execution; or where the mortgagor is declared insolvent.
A QUICK GUIDE TO THE BOND REGISTRATION PROCESS Step 1 – Receipt of Instructions from Creditor (Bank) – Receipt of instructions from the Creditor (Bank) to register the bond. Step 2 – Preparation of Documents – Obtain a deeds office printout for the property and the cli-
ent to check for any interdicts, insolvencies or other caveats that may be registered against the client or the property. Obtain the title deed from client and prepare the bond documents for signature. Step 3 –Signature of Documents – Contact the client and arrange for signature of the documents and payment of costs. Step 4 – Lodgement of Bond Documents – Proceed with lodgement. If a transfer is involved, lodge on request of the transferring attorney.The deeds take 7-10 days to be examined in the deeds
after due notice has been given to the mortgagor.
office;if passed, they move onto registration; if rejected, for an error, theyare uplifted, corrected by the conveyancer and then re-lodged. The examination process starts again. This will continue until it is passed and registered. Step 5–Registration – On the day of registration, the bond and the other linked transactions are registered at the Dees Registry. The originals are delivered by the bond conveyancer to the Bank, who tenadvises the client of registration.The Bank thereafter processes all necessary payments in terms.
WHAT ARE THE CONSEQUENCES OF FAILURE TO PAY INSTALMENTS? Foreclosure is the term describing the procedure that is followed when the mortgagor defaults on instalments. If the mortgagor fails to fulfil his/her obligations towards the mortgagee, the latter can enforce its rights against the mortgagor by calling up the bond and obtaining a court order authorising a sale in execution of the mortgaged property
Cancellation of a mortgage bond
Cancellation of a mortgage bond must be registered in the Deeds office and occurs upon complete fulfilment by the mortgagor of his/her obligations to the mortgagee. A ‘Consent to Cancellation’ document is signed by the mortgagee and lodged by the conveyancer at the Deeds Registry for cancellation of the mortgage bond. After same is passed and registered, the title deed of the property is endorsed with the necessary information, reflecting that the mortgage bond has been cancelled. The title deed can then be returned to the mortgagor bond free and the cancelled bond to the mortgagee for records purposes. The above is meant only as a brief introduction toMortgage Bonds and the registration process in Botswana. The information given is general and is not intended as legal advice. Akheel Jinabhai is the Managing Director of Akheel Jinabhai & Associates
Our precision simply comes standard..
• Repayment of the loan – The mortgagor must repay the capital debt and interest to the mortgagee on the terms set out in the loan agreement. • Use of the property – The mortgagee does not obtain rights of use and enjoyment of the mortgaged property as this is retained by the mortgagor. However, the mortgagee may place restrictions on the mortgagor’s ownership rights. For example, a mortgage bond usually stipulates that the mortgagor may not, without the written consent of the mortgagee, grant servitude over the property in favour of a third party. • Right to sell and transfer – The mortgagor cannot transfer the property to a third party unless provision has been made for the outstanding debt to be paid in full and the bond cancelled; or for the release of the property from the operation of the bond with the written consent of the mortgagee. The cancellation or release of the property normally takes place simultaneously with the transfer of the property to a third party.
WHAT IS THE “ADDITIONAL SUM” REFERRED TO IN THE MORTGAGE BOND? The mortgage bond secures not only the principal obligation of the debtor, but also ancillary expenses which the mortgagor may incur in respect of the loan in certain circumstances, such as the legal costs in respect of foreclosure. Therefore, a bond document makes provision for an “additional sum” over and above the amount borrowed to cover such ancillary expenses. The additional amount is separate from the capital amount and is not included in the repayments. It only becomes relevant when the mortgagor defaults and the mortgagee
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WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE MORTGAGOR?
GUEST COLUMN P8
BOIDUS FOCUS APRIL 2015
Making Subcontracting
Make Sense by Natalie Reyneke
Subcontractors are generally engaged by contractors to perform specialised areas of the work in the project, which may involve an element of design (for example air conditioning, or elevator installations). There are other reasons too, such as, inter alia, the requirements of particularly high standards or urgency in completing sufficient tender documentation for tenders to be called for the main contract. Under traditional construction relationships the employer has elected to contract only with the contractor. The employer has a single relationship and generally manages a single direct chain of responsibility to the contractor. Most standard form construction contracts, therefore, strictly prohibit the contractor from introducing other contractors to perform either whole or part of the construction works without the Employer’s involvement in appointing a subcontractor. However, for various reasons, as stated above, either the Employer or the contractor may introduce other contractors, usually performing a specialist service and/or construction activity, into the construction project to execute specific components of the construction works. These contractors are generally referred to as subcontractors. At page 390 the authors of Keating on Construction Contracts (Eighth edition, 2006) summarise the position of the subcontractor under the typical subcontract arrangement as follows: “.. A subcontractor who has entered into a contract with a contractor to which the employer is not a party has no cause of action against the employer for the price of work done or goods supplied under his contract unless he sues under a valid assignment..” The typical standard form subcontract is gener-
ally designed to achieve a mirror image of the contractual provisions under the main contract. Not in the sense that every single term in the main contract should be incorporated in the subcontract (some will not be relevant) but rather that each and every obligation, liability or risk the main contractor has under the main contract is passed down to the subcontractor so far as it relates to the subcontract works. The reason for this is obvious. Both the contractor and the employer want the Subcontractor to execute the subcontract works of the same quantity, quality and value as the construction work under the main contract. Typical standard forms of subcontract, therefore, generally provide for the subcontractor to have towards the contractor the identical obligations in regard to the subcontract works as the contractor has towards the employer in terms of the main contract for the subcontract works. This arrangement is referred to as a “back-to-back” contractual relationship between the Contractor and the Subcontractor. Since the subcontract is concluded directly between the contractor and the subcontractor, the employer has no contractual relationship with the subcontractor at all. The contractor, therefore, remains strictly liable under the main contract for any and all default by the subcontractor in executing the sub contract works irrespective of the existence of the subcontract. The contractor must, therefore, take special care in preparing the subcontract documentation to ensure that the obligations and liabilities in re-
spect of the subcontract works are passed down to the subcontractor. The quick and easy approach to preparing “back-to-back” contractual documents may seem desirable because it may
save some time and money in the short term but it is extremely dangerous.
“It is a further term of this agreement that the clauses and provisions of the main contract between the contractor and the employer shall ap-
There are a number of principles in play when it comes to determining liability between a contractor and its subcontractor. Not all clauses can be simply stated to be back-to-back. Take for example the case of Geary, Walker & Co. Ltd v W Lawrence & Son. In that case the parties agreed that the “terms of payment for the work… shall be exactly the same as those set forth in clause 30 of the [main]… contract.” The amount of retention under the main contract would exceed the sum payable to the sub-contractor under the sub-contract by the end of the project. The Court of Appeal decided that the terms of the main contract in respect of the payment were applicable and also that retention should be withheld. However, the payments would be in the same proportion as the proportion of the sub-contract sum to the main contract sum. There was therefore, by implication, a pro-rata of the amount of retention by reference to the main contract payment mechanism.
ply to the subcontract, where applicable.”
Regardless of the conditions of subcontract, the contractor remains responsible to the employer for all aspects of the subcontract (see for example sub clause 4.4 in the 1999 FIDIC Red Book). As such, the contractor is still responsible for managing the timeous completion of the subcontract works and payment of the subcontractor in accordance with the subcontract conditions regardless of any issue that could arise between the contractor and the employer. The main contract and subcontract are two separate contracts and the matching or integration of similar “back-to-back” obligations is often unsatisfactory and may result in undesired consequences. Therefore a general “back-to-back” clause will often result in an incongruent interpretation of the subcontractor’s obligations. These interpretation issues often lead to disputes.
In Darling & Hodgson (Pty) Limited v Asphalt & General Contractors Ltd 1969 (3) SA 328 (W) a dispute arose regarding the wording of the following back-to-back clause:
The issue centred on whether or not a particular dispute resolution provision of the main contract (and the obligations created thereunder) could be imposed onto the subcontractor or whether certain clauses only could be applied on the use of the words “where applicable”. Nicholas J held at 331 C: “..In the present case, there have been incorporated into the subcontract only such terms of the main contract as “are applicable”, that is, such terms as are capable of being applied to the sub– contract. In considering whether any provision is capable of being applied, regard must, I think, be had to the terms of that provision as they appear in the main contract. If so, regarded, the provision cannot be applied to the subcontract, then it cannot be said to be applicable. It is not, in my view, permissible to submit the provision to the Procrustean process of amputation and amendment so as to render it applicable, at any rate the absence of some indication in the subcontract to that effect, such as that which might be afforded by a direction that the provisions of the main contract shall apply mutatis mutandis...” The court held that the particular clause was not applicable to disputes between the parties as it concerned (i.e. was applicable to) disputes between the Department of Transport and General Contractors Limited only. The clause was, therefore, not part of the subcontract. We have seen, too often, a subcontract which while appealingly short and sweet for the parties involved in the drafting, considering and signing of it (ie. the back-to-back type of subcontract) leads to a lack of clarity as far as the interpretation of the subcontract is concerned. It is therefore advised that both contractors and subcontractors alike put a little extra time into the consideration of the exact terms and conditions of each subcontract. Yes, it is possible to make a subcontract back-to-back but the subcontract must be able to be read as a stand-alone agreement, which can actually function as such.
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GUEST COLUMN P9
BOIDUS FOCUS MAY 2015
The Real Estate Advantage:
The Peculiar State of Stocks Versus
Real Estate in Botswana By Sethebe Manake
Introduction The real estate market typically speaks to the trading and investment of land and its developments. It includes all uses of land, including but not limited to agriculture, commercial, retail and residential uses. One may invest in real estate directly through the acquisition or development of said property or indirectly through investing in investment vehicles that in turn take on the direct investment burden. In Botswana most indirect real estate investment is carried out through the stock exchange and collective schemes. With the collective schemes one cannot determine or ascertain their individual exposure to any specific asset class as all funds are pooled and allocated according to the determinations of the manager. The stock market generally refers to a market place where the trading of company shares is undertaken. In Botswana this happens at the Botswana Stock Exchange, which has recently been automated in order to improve transaction frequency. Investing is noted as one of the best ways for anyone to create wealth and become financially independent. Many are the times when people wonder: When does it make sense to invest in real estate versus the stock market? And we have investigated this question with recognition of the peculiar state in Botswana. In this comparison, stock exchange real estate counters will be recognised as stock investment and not real estate, particularly because of the characteristics of the investment. Botswana’s investment environment, where the two are concerned, is particularly different from most other markets because of the lack of liquidity and volatility of its stock exchange. And the generally simplistic investment approach to property investment executed in the country. We undertook an intensive review of local and international literature on the two different asset classes, and interviewed local professionals in both fields, as well as the typical investor. Our belief is that through this approach we will be able to determine the market movements of both asset classes, how investors generally perceive them in the local context and that it
will ultimately lead us to determining when, if there is such a time, that it makes sense for one to invest in the real estate market as opposed to the stock market in Botswana. When we talk about when it makes sense, it is clear that it is not about a specific date or duration. The question is: At what point would it make sense? It should be apparent that there is a time when the conditions of investing in the stock exchange make the case for investing in real estate more compelling.
Findings and Analysis The Botswana Stock Exchange (BSE) consists of a foreign and a domestic board which carries shares for different companies operating in different sectors. These include financial services, mining prospecting, real estate and others. One trades on the stock exchange through registered stock brokers. The trading of stocks is a highly regulated system. In terms of knowledge about the investment type, people are aware of the availability of the stock exchange for investment; however they do not yet understand how it works. Typically the local bourse does not trade in high volumes; in as much as the exchange and listed companies inform the public about their activities and investment opportunities when presented, the market responds very slowly to activities. Where one would expect a company activity to spark interest on a specific stock, this is generally not seen on the ground. Much of the trading of stock is conducted by asset managers and as such they transact large volumes less frequently. The real estate market however receives a lot of interest in the local market. The government policy that allows for allocation of land for free to individuals makes entry possible for anyone over the age of 18. Other government policies emphasise the importance of property ownership and highly discourage the trading of property, particularly when undeveloped.
ing valuations and property prices, and to some extent, the unaffordability of available developed property for most people; this unaffordability extends to bare land as well, particularly post first allocation. The question that stands is: With all this happening, when does it make sense for one to invest in real estate versus the stock exchange? Typically on international platforms the comparison between the two speaks to elements of: • Liquidity: it takes longer to sell property than to sell stocks should one choose to disinvest. • Capital: property requires higher capital input than stocks to invest. • Returns: the returns on the stock exchange are high relating to high risk while real estate presents high returns and low risk. • Effort: investing in the stock exchange is a game of “invest, watch and know when to get out,” while with real estate one has to actively manage to get good returns. The time when it would make sense to invest in real estate versus the stock market would be when the following conditions are true: • When it takes an equal amount of time or less to sell property as it does stocks. • When the capital requirement for property investment is the same as that of the stock exchange. • When returns and effort are directly matched or inverse.
to the World By Lebogang Disele
Elevate (verb) – 1. To move or raise to a higher place or position; lift up 2. To raise to a higher state, rank, or office; exalt; promote… 3. To raise to a higher intellectual or spiritual level… 4. To raise the spirits, put in high spirits. 5. To raise (the voice) in pitch or volume…” (dictionary.com) The 2015 Maitisong Festival set out to elevate the arts in Botswana, from visual to performing and everything in between. It is my humble opinion that it did this in all definitions of the term. It increased the profile of the country’s arts industry both in terms of the place they hold in people’s minds and in the way that they are perceived in terms of quality. It transported spectators to places far and wide, challenged them intellectually and carried them through emotional journeys that they could not have expected. Above all, it coloured the city of Gaborone with hope and optimism that there can be more to this industry than just ‘hobbies’ as the arts are often seen to be. The Maitisong Festival raised the voices of artists to show their mettle, to prove that they too have what it takes to compete on a global platform. But now that the Festival has come to an end, what next? Well, the hustle and bustle of creating, reworking and developing productions must continue as artists push to make their debuts on international stages. Maitisong Festival Director Gao Lemmenyane continues to stand by his word that this needs to be the real profit of performing at the festival, Continues PAGE 18
In the case of Botswana one is able to get free land and one cannot get free stocks. The volumes of trade of real estate, in comparison to those of stocks, indicate that the investment sector is more liquid. With regards to the effort required to achieve high returns in real estate, active management is essential. However there are instances and opportunities of high returns achieved simply from sale of allocated land. At the end of the day, each time we looking to invest in stocks or property, make sure you have the right professional advice and assess each investment on its own merit and not as a general asset class.
Issues of concern in real estate have been ris-
Happy Investing!
LET US ENSURE THAT YOUR VISION IS WELL PROTECTED AND MEMORABLE. Sustaining and Supporting Botswana’s Growth: Ground Floor West Wing Plot 67977 Fairgrounds Private Bag BRS15 Gaborone, Botswana TEL: +267 3105137 FAX: +267 3105139 Email: richard@sunshineinsurance.co.bw Mobile: +267 7411104 Email: weston@sunshineinsurance.co.bw Mobile: +267 47762621
From Gaborone
Conclusion
The trading of real estate by law must be conducted through registered real estate professionals; however there is a recognisable amount of real estate that is traded outside of this law.
The total solution in one brand
The Maitisong Festival 2015:
PUBLIC NOTICE Foodbank Botswana is a non– profit organization (NGO) duly registered as a trust, under registration no: MA453/2014 of deeds registry. Foodbank is the largest food relieve nonprofit making organization worldwide. Foodbank is an independent charity organization that aims to deliver nutrition, healthy food. Foodbank prevents food waste and protect the environment. As a cautionary measure, members of the public are informed that Foodbank Botswana is not licensed financial institution. However, exceptional retrospective approval was granted by Bank Of Botswana in accordance with section 3(2) of the Banking Act (Cap 46:04) to use the word “BANK” as part of our trade name. For further information please contact 3105821 or 76253655.
HOME IMPROVEMENT P10
BOIDUS FOCUS MAY 2015
DIY Projects - How to Install Ceramic Floor Tiles [Source: www.diynetwork.com]
3. Build Up Rows
As you progress, insert spacers flat on the floor (image 1). The tile will probably be deep enough for spacers to be covered later with grout. Otherwise, use thin cardboard as spacers.
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the cut tile fits the gap. Apply adhesive to the floor or back of the tile, and insert it into place.
Use a level to check that tiles lie flush with each other (image 2). Continue laying tiles until all the uncut ones are down. Allow the adhesive to dry, and remove the furring strips.
6. Make a Right-Angled Cut
Mark the area of the tile that needs to be cut. Place the tile in an electric cutter. Wear gloves and keep your hands clear of the blade. Wear goggles. When the cut has reached the end of the first marked line, turn the tile around. Cut along the second guide line, to make the right angle.
1. Determine Layout
Dry-lay a few tiles to mark your starting point. You may choose to use the edge and corner of the room as a rough guide. Mark the outer edge of the tiles (image 1). Draw a pencil line to mark where to position your wooden furring strip. This provides an accurate guide against which to lay the tiles (the wall or the corner may not be straight). Fix the furring strip along the pencil line. In this example, the subfloor is plywood, so screws may be inserted. For a concrete subfloor, drill pilot holes using masonry bits, then plug the holes and insert screws. Position a second furring strip at a precise right angle to the first one.
2. Apply Adhesive
Mix adhesive with a power stirrer. Mix as much as you can use in about an hour. Apply the adhesive in the right angle made by the furring strips (image 1). Position the first tile on the adhesive, butting it up against the two furring strips. Gently press the tile into position (image 2).
7. Grout the Tiles 4. Make Straight Cuts
Measure the gap left by the furring strip between tile and wall, so that you can cut a tile to fit (image 1). Measure at each end of the tile to allow for variations in the width of the gap. Subtract the grout gap, and mark off the resulting distances on the tile edge with a felt-tip pen (image 2). Place the tile in a score-and-snap cutter, aligning marks with the cutter’s guides. Push the cutting wheel away from you, across the tile, to score a line between the marks. Lower the handle to snap the tile along the line (image 3). Use a tile file on the cut edge. Check that
5. How to Cut Curves
Wearing gloves and keeping hands clear of the blade, use a wet-cutting tile saw to cut straight lines into the curve (image 1). Continue with a series of straight cuts, and break off the unwanted section. Smooth the curve by steering the tile around the blade (image 2).
Grout the tiles once adhesive is dry. Mix the grout to a smooth, stiff paste. Apply with a grout spreader and remove excess with a damp sponge. Finish with a grout shaper (image 1). When grout is dry, use a mild detergent to clean off any powdery residue (image 2). Some natural tiles may then need sealing.
FEATURE P11
BOIDUS FOCUS MAY 2015
ALUMINIUM & GLASS CENTER
How Institutional Investors can play a role in Funding Property & Infrastructure Development By Othata Batsetswe
Continued from the FRONT PAGE In Botswana there are many institutions investors, these are considerable large organisations that have considerable large cash that need to be invested. Institutional investors face fewer protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves. A closer look at the Botswana’s economy shows that there are many organisations that are partly owned by government that remains that believe part of their duty is just to make money and pay tax and that’s not enough (and
by the way my take is that a parastatal should be selfsustaining with 5 years of being setup). Companies like Motor Vehicle Accident Fund, Botswana Pension Fund, Botswana Insurance Holdings, Debswana Pension Fund just to mention a few have healthy balance sheet and guaranteed returns to an extent that they should have diversified their role in the economy to assist government set up the much need facilities. The pensions fund management companies with their guaranteed contribution from government could embark on addressing more needed infrastructure that the economy needs. The developments at the CBD entail large building as to how the issue of traffic congestion can be addressed the same private sector feels that its government duty they forget that their business depend on ease of access more than anything. However an opportunity that exists is that the MVA can instead build bridges that can link government enclave directly to CBD and then have more of those going into Phase 1, 2 and Block 3, the spaghetti roads. They can then just charge a fee, a minimum fee of P10 for the whole day access, people will always pay for convenience. That way the company gets to have a healthy balance sheet from such a huge investment.
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The other area where institutional investors can play a role are in the area of affordable and dignified housing. There is shortage of accommodation in Gaborone and other areas. The private sector can partner with BHC to construct such affordable housing, if Debswana built 8 houses, two bedroomed houses for P1.2 m then the same initiatives can be replicated in Gaborone for the same cost, give govt duty to provide land (terms and conditions will apply) then the private sector can build affordable house to meet the demand. This of course will then call for a regulated rental prices which is what the economy needs right now. The institutional investors can also make commitment to contribute 0.002 of the total returns to finance critical social projects that the economy needs and these social infrastructure programme could entail investing in the smooth running of the sewerage system across the country. The pandemic of breakouts is high that
LET US TAKE CARE OF YOUR NEEDS WHILE YOU FOCUS ON YOUR VISION: Engineering Covers and all types of bonds The total solution in one brand Ground Floor West Wing Plot 67977 Fairgrounds Private Bag BRS15 Gaborone, Botswana TEL: +267 3105137 FAX: +267 3105139 Email: richard@sunshineinsurance.co.bw Mobile: +267 7411104 Email: weston@sunshineinsurance.co.bw Mobile: +267 47762621
it requires a coordinated private sector led strategy and this is also a way of saying ‘thanking you’ to the customers because if a pandemic breaks out then there will be no clients. Other opportunities for such a pooled social responsibility entails seeing beyond, govt is now worried about supplying water to the nation, the private sector is complaining about how business is going to affected. The vision required is not for them to think about slowdown, the continuity models for setting up in a semi arid country entails finding ways to keep going when the rains don’t come. The private sector could embark on expanding the Gaborone dam by digging it deeper, investing into research on how evaporation can be minimized. They should be coordinating initiatives to ensure that there is sufficient water in the dams, what will be wrong with transporting water in the same manner that we buy petrol from South Africa and that’s a private sector opportunity.
The Public Private Partnerships model that most governments are embarking on has always worked well if correctly implemented. The so much talked about South African roads are a clear indication of how a coordinated planning effort between the private sector and government can always deliver the much needed projects. The SADC HQ is also one of the best models, for P200m. As a finance, economist and risk specialist a, closer look at the model and plan will cost govt P500m minimum. The PPP model advocates for services to be paid for by the user not the taxpayer as it has always been the case, however care should be taken that do not take a rate of return that is higher than the government’s bond rate as it has always been the case with most charges in Botswana.
ADVERTORIAL P12
BOIDUS FOCUS MAY 2015
CENTRE FOR RESEARCH, ENTREPRENEURSHIP & PROJECT MANAGEMENT CREPM is a Business Unit of BA ISAGO University College. Its goal is to provide quality market - driven research and corporate training in its endeavour to contribute meaningfully to human resources development in Botswana and beyond. CREPM’s vision is to be a regional Centre of Excellence.
The following BOTA accredited programmes are on offer
CREPM 2015 TRAINING CALENDAR DAYS
JAN
Courses are offered at Gaborone, Francistown & Maun Campuses
COURSE
COST
FEB
Performance Management System
P2,500.00
3
12-14
Customer Care
P2,500.00
3
14-16
Occupational Health and Safety
P2,500.00
3
Finance for Non-Finance Managers
P2,500.00
3
Introduction to Project Management
P2,500.00
3
Project Planning, Monitoring and Evaluation
P2,500.00
3
14-16
Research Methods and SPSS
P3,500.00
5
26-30
Advocacy and Lobbying Techniques
P2,500.00
3
19-21
Excel/Spreadsheet
P1,500.00
2
19-20
Advanced Excel
P1,500.00
2
Computers Skills
P1,500.00
2
15-16
Database
P1,500.00
2
22-23
19-20
Word Processing
P1,500.00
2
20-21
26-27
ICDL (Continuous)
P5,400.00
19-21
MAR
2-4 4-6 11-13
13-15
APR
7-9
23-25
27-29
21-23
16-18 18-20
JUN
3-5
14-16 9-11
MAY
10-12 20-22
28-30
3-5
6-8 27-29
16-20
17-19 24-26
4-8 10-12
8-10
2-4
1-2
4-5
Computers 5-6 4-5
30-31
8-9
7-8
9-10
15-16
21-22
23-24
28-29
11-12 18-19
22-23
25-26
17-19
8-10
9-11
24-26
15-17
5-7
22-24
19-21
Real Estate Property Valuation
P2,500.00
3
Property Marketing
P2,500.00
3
Property Economics and Finance
P2,500.00
3
Introduction to Building Technology
P2,500.00
3
Introduction to Property Law
P2,500.00
3
26-28
Property Valuation and Financing
P2,500.00
3
13-15
23-25
Employment Relations
P2,500.00
3
20-22
3-5
Training and Development
P2,500.00
3
Organisational Behaviour
P2,500.00
3
27-29
Business Communication
P1,500.00
2
26-27
16-17
27-28
Small Business Management
P1,500.00
2
19-20
4-5
7-8
Business Plan Preparation
P1,500.00
2
Business Management
P2,500.00
3
28-30
Assess Candidates Against Standards
P1,500.00
2
19-20
Determine Training Methods
P1,500.00
2
Facilitate a Training Session
P1,500.00
2
Produce Assessment Instruments
P1,500.00
2
Prepare Learning Resources
P1,500.00
2
26-27
Work in TVET as a Practicing Trainer
P1,500.00
2
29-30
Plan for a Facilitation of a Training Session
P1,500.00
2
Demonstrate Time Management in the Workplace
P1,500.00
2
13-14
Word Process a Word Document
P1,500.00
2
20-21
2-4 21-23
9-11 16-18
4-6 11-13
26-28 28-30
25-27
16-18 23-25 1-3
27-29
Human Resources Management 10-12
18-20
24-26
2-4
13-15
4-6
8-10
20-22
11-13
15-16
18-20 22-24
Entrepreneurship and Business Management 26-27
4-5
19-20
25-27
29-30
18-19 28-29
25-27
30-31
14-15
5-6
2-3
21-22
12-13
24-26
Certificate in Vocational Education and Training 2-3 22-23
9-10 4-5
1-2
11-12 16-17
19-20 29-30 27-28
23-24
18-19
Growing with Quality
26-27 28-29
20-21
BQA
Take advantage of the BOTA levy fund in up-skilling your employees. Centre for Research, Entrepreneurship and Project Management (CREPM) Plot 54831, Block 7, Corner of Western Bypass (Motsete Road and Mogoditshane Road), Gaborone Tel.: (+267) 3957744 • Fax: (+267) 3957709 Email: crepm@baisago.co.bw
15-16
13-14 25-26
Registered & Accredited
8-9
9-10 16-17
MAUN CAMPUS Plot 394, Mabudutsana Ward, corner of Moremi 3 Road and Mogalakwe Road, Maun Tel.: (+267) 6867021 • Fax: (+267) 6867021 Email: maun.campus@baisago.co.bw
1-2
22-23 29-30
7-8
Book Now!
FRANCISTOWN CAMPUS Haskins Building, Plot 1602/3, Off Sam Nujoma Road, Light Industrial Site, Francistown Tel.: (+267) 2418780 • Fax: (+267) 2418778 Email: francistown.campus@baisago.co.bw
GUEST COLUMNIST P13
BOIDUS FOCUS MAY 2015
Design Pad:
Office Interior Design Matters By Tshepiso Motlogelwa, Interior Designer- tsmotlogelwa@gmail.com
The lodge has a homely warmth to it with restful tones of earth colours used throughout to add to this inviting interior. The family suite comes with a spacious bedroom, an adjacent room with two single beds and an en-suite bathroom. This suite has a balcony with breath-taking views of the hills. Regent Lodge currently offers breakfast only to guests staying at the lodge and because of its close proximity to Game City mall, guests also have the option of dining at their preferred restaurants.
Nestled within the captivating views of Kgale Hill and conveniently located a stone’s throw away from Game City shopping complex, the recently opened Regent Lodge is indeed a home away from home. Regent Lodge has a total of 15 rooms with one family suite, a bachelor room and six single rooms while the rest are double rooms. Assistant Manager Tonny Manabalala says they already had their first customers booked in on the day of the official opening – 4th May.
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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] Regent Lodge is part of the luxury and upscale Regent Select Hotel which was opened in August 2014. Quizzed on why they saw the need to open another lodging facility, PR and Marketing Manager Lyllian Abrahamsson told us that the new lodge will enable them to accommodate the spill overs from Regent Select Hotel while also attracting its own guests from Commerce Park and Kgale Mews. Lyllian says the lodge targets the travelling business man and the corporate market; with plug in points for laptops and other devices, a lockable safe, wireless internet, spacious rooms and ensuites, this indeed makes it ideal for their targeted market.
Specialists in: • prefabricated housing, office, classroom & tuck shop • dry-wall partition • aluminium products • wooden products • hardware store • shop-fittings • garage doors
Fireplaces, Kitchen cabinetry
Wardrobes, Kitchen cabinetry
Prefab cabins built on site, Counters, Aluminium (I.H.S. Molepolole)
Porta Cabins and Wood Related Work, Timber Doors, Windows Manufactures, Shop Fitters, Kitchen Cupboards, Joinery Specialist.
MAIN BRANCH (Gaborone)
Tel: 3933154/164 Fax: 3933167 Cell: 71598499, 75665656 Plot 20596 Block 3 (next to Sefalana)
www.masterjoinerybw.com
GUEST COLUMNIST P14
BOIDUS FOCUS MAY 2015
COLONIAL SCIENCE AND SUSTAINABILITY
By Jan Wareus
Now is the time to rethink; globalisation was a oneway road to bring resources to the now post-industrial nations, a “kiss-of-life” for the neo-colonial powers. In this situation it is futile to hope that non-industrial nations will follow the same trajectory as the now postindustrial nations did once upon a time (e.g. building factories, hiring workers with salaries enough to be consumers, providing services and generating ample profits). We can now see that it wasn’t forever self-sustaining there and it will never happen here.
POCKET GARDENS TINY JEWEL-LIKE GARDENS Softening the hard scape of concrete or stone paving, steps or walls with pocket gardens can give you the look of a well-established landscape in a short time. Certain plants lend themselves to these exquisite little gardens, particularly those plants that drape and billow naturally. Especially valuable specimens are those plants that have the ability to colonize dry soil among stones, such as Sempervivum and Jovibarba. As the colony grows the chicks fall to the ground to create an intriguing textural tapestry. Thyme varieties that stay low growing even when flowering such as a Thymus pseudolanuginosus and Elfin thyme are valued for creating a soft edging to steps, or cascading over a bank or slope. Planted at the edge of patios, brick walkways or paved areas these drought tolerant steppable plants give the whole area a feeling of romance and antiquity. Steps specially constructed with small cavities and fissures can be planted with Armeria, Iberis or alpine plants which relish the dry well drained conditions. They’ll enhance the landscape with flowers in succession and textural foliage throughout the seasons. Favorite varieties of Sedum ground covers and even tender succulent plants are great drought tolerant choices for jewel like pocket gardens. Pay particular attention to the type of soil that you plant the hardy succulents into. Other xeric plants and ground covers can spill over the edge of a walkway, or even be planted around the base of a trough or container of succulents placed on a patio. Investigate plants that are easy to maintain and not invasive, as the tight confines can be difficult to renovate.
So, are we forced to continue digging holes and exporting our (also finite) untreated resources – raw copper, coal and other stuff – from the earth? Many western and eastern countries seem to think so and often discourage African nations from beneficiating and processing their natural resources prior to export. And when possible beneficiation is there, it’s easily killed off by the big ones; now we hear we’re too lazy and spoiled by huge salaries! Follow the Groove’ by Oscar Reutersvärd (1997) is a perfect metaphor for our situation – progress and sustainability can’t meet as intended!
We live in a time when semantics are changing and texts are full of abbreviations. So now I’m told that COAD, the plague miners and stone-pit workers share with heavy smokers, is ‘chronic obtrusive air-ways disease’. However, we all share the COED – ‘chronic obstructive economic decline’, with enormous consequences for both rich and poor, both developed and developing countries. We are now at a point when our entire civilisation has entered what John Kenneth Galbraith called “the twilight of illusion”. We are at a point at which the end of a forever growing industrial economy is nothing but a short historical process, clearly and visibly declining. To make this understood we have to search for a realistic understanding of the troubled future ahead of us and a meaningful way of responding to it. That’s my reason for these writings and extremely important for what Roman Grynberg flippantly labels “so-called economists”. In my opinion, we are all “so called” somethings, whether it is town planners, architects, engineers or you name it. But we do, or should, have professional ethics. Our civilisation is on a head-on collision course with our planetary limits of growth and this is often, and unfortunately, treated as an economical/technical problem that can be corrected by reading a neo-colonial answer book. But by doing so we are following the same trajectory of overshoot that terminated so many other civilisations in the past. What we are experiencing now is a permanent economic decline and precisely what many scientists pointed out about peak oil and the finite resources many decades ago – it will not necessarily be a sudden collapse, a slow decline for industrial societies but quicker for African countries, knocking on the progress door. And, contrary to intelligent thinking, the faith in limitless progress is the basis for most national budgets and for economic writers in our papers here. In general, we seem to be totally unaware that we are on a slope, a decline, with economical failures – a crisis here and a crisis there (power, water, education here; regional catastrophes and wars there) with oil, gas and resources always in the background.
Visit us for all your gardening requirements Gaborone Dam site, Machel Drive Call us: +267 393 1358 www.sanitas.co.bw
But it is no longer necessary to speculate about what kind of future the end of cheap, abundant energy will bring to the industrial world and the countries that are hoping to mirror their old status. The package has already been delivered and the hope the aspiring developing countries had in their legitimate right to become industrialised is fading quickly.
Let’s note the following regarding what most developing countries have been through: • Destruction, the Terra Nullius concept – destroy cultures and get vacant land (the initial stage of colonialism – from 1750 and still on-going); • Dual Laws – one for colonialists another for indigenous people – a money saver! • Introducing Colonial Sciences – proving there are Subject people to Master ones – mostly Aryans/ Caucasians; • Economic Neo-Colonialism – globalisation, freetrade, de-regularisation of laws and cutting domestic expenses (for us – not for themselves). Consequently, I cannot but understand the situation that most developing countries are in today. There was hardly any coherent alternative to the massive neo-liberal economic concept from western development institutions and charitable donors for newly independent developing countries, then. The “hidden” conditions were just as important as the job was for new architects and town planners like me. But there were serious consequences when the developing countries applied this kind of out-dated, high cost, western, somewhat out-dated technology (an inheritance from the colonial powers, I insist) – mostly concerning infrastructure and utility services that we more or less copied from the west. Obviously, not considering the problems developed countries had with aging infrastructure networks and service delivery and the end cost for it when energy became expensive and became impossible when “eternal progress” was less than 8% a year. By the late sixties it was obvious that the infrastructure sector was falling apart in the west – maintenance was neglected and cost of delivery was escalating quickly – especially after the first oil bubble burst in the early seventies. There were huge external costs never assumed and environmentalists started their whistleblowing. For some economists, these dangers had been written on the wall – for example E F Schumacher (with his famous book “Small is Beautiful”) advised that developing countries must find ‘an appropriate technology’ approach and localised production and delivery of service. But the ‘appropriate’ development authorities were handcuffed by their former colonial masters. And the western infrastructure warehouses were full of stuff to send to new “independent” countries often almost gratis. The producing of out-dated, conventional stuff could go on and supporting the workers at home. This approach is still in full swing. And developing countries were ever so grateful until they had to pay the full price. Continues PAGE 16
ADVERTORIAL P15
BOIDUS FOCUS MAY 2015
SUPPLIER OF:
ARCHITECTURAL ALUMINIUM & GLASS, CURTAIN WALLING, SHOWER AND PATIO DOORS
SHARING EXPERTISE FOR OPTIMUM RESULTS The Expo DGA recently held at Phakalane Golf Estate Hotel Resort allowed specialists from South Africa to talk directly to the local market about new products and trends in the aluminium fenestration industry. “One of the guest speakers looked at glass, the technical aspects, energy efficiency and safety standards,” explained Stacy, “which we feel will have immense benefits as product knowledge in Botswana is limited in this area.” One of the featured products – now available in Botswana through DGA – is the Glass Curtain Wall System. Stacy highlighted that this system allows for versatility, faster installation, the highest safety standards and durability. The new Crealco Infinity Internal Glass and Board partitions are now also available through DGA, with single or double glass, or wood veneer panels inserted into the system, also allowing for blinds to be incorporated. Stacy underscored that this system is an “Architects dream,” offering options that can incorporate timber or clip aluminium doors, venetian blinds as well as electrical and networking cables. These also come with removable power skirting, accommodating plug points. “Most of the products we manufacture and offer on-site solutions support for, save energy, offer acoustic value, save time and money, and look amazing,” asserts Stacy.
boidus media
We strictly comply with safety standards set by institutions such as those seen below and are working closely with BOBS for developing and implementing these in Botswana.
PLOT 23609 UNIT 7 GABORONE WEST INDUSTRIAL TEL: (+267) 3925384/95 FAX: (+267) 3925350 CELL: (+267) 71321032 EMAIL: grantstacydelta@gmail.com
EDUCATION P16
BOIDUS FOCUS MAY 2015
UB Architecture Exhibition 2015 By Arnold Tombo
COLONIAL SCIENCE & SUSTAINABILITY Continued from PAGE 14
Thus, we have out-dated (and inappropriate) infrastructure and service delivery systems here and elsewhere among many developing countries; more than century-old infrastructure models from densely populated European countries (from times when energy was cheap) even in sparsely populated areas in Africa. That was what, we realise today, created the chaos. When I arrived in Gaborone in early 1979, Gaborone had its own electricity plant. The delivery plant moved about 400 km north of the City. And we are losing a third of its energy on the way back here and another third lost in imperfect western wiring in the consumer’s home. And now we must pay for it. When we experience power and water cuts and blocked sewers, we mustn’t put all the blame on our utilities and its staff. The technology was wrong for a start and not appropriate – leading me to realise that the physical planning was also very wrong. But on this, I remember that Gaborone was never meant to have more than for 25-30,000 people. And then more “Gaborones” needed to be built and connected with communications. To me, that had been appropriate planning. In short – we jumped onto the wrong train a few stops from the end station. There is an immense task for planners and utilities in the close future and there’s more to say about our African experience. We’ll see!
The Department of Architecture and Planning at the University of Botswana recently hosted its student architecture exhibition. This annual exhibition presents student work from the courses of architectural design, technology, and visual design at the department, produced during the past semester. Boidus Focus was on hand to marvel at the work of the next crop of Botswana Architects. Phakalane Golf Estate Hotel Resort Managing Director Lesang Masang was the guest speaker of the event and during his keynote address he said, “The challenge is that architecture affects us psychologically: it is the environment that we live in; it is what we look at; and it is the commercial space that we use so all I ask from you is that we are not expected to be all the same or uniform. There are certainly eccentric talented student architects and there are eccentric clients out there that are willing to try out something different and new to design buildings that do not even need air conditioning to operate; they can use materials that are cheaper, quicker and lighter.” Lesang went on to highlight that while there are buildings in the developed world that are part brick part wood, Botswana is yet to take advantage of solar energy despite enjoying sunshine all year round. The exhibition has now developed into a significant event on the Architecture Department’s calendar and proved to be invaluable to those who are involved in the built environment industry as it provides important details of products and services to the public. “The whole aim of the exhibition is to showcase talent, creativity, craft and design within the faculty,” says Architecture Student Association President Kagiso Gaborone. “When you walk in you see the wild imagination that is a part of our profession; as architects we are always sketching and thinking of ideas; the more formulated ideas that lead to refined developments and designs are those displayed in the exhibition.” Gaborone goes on to explain that the exhibition has assisted students in finding internships and jobs at firms both locally and internationally as firms from places as far as Cape Town are invited. The association is now speaking to universities from outside of Africa to collaborate with UB on the exhibition. Gaborone says the goal of the exhibition is to raise aware-
ness among students and educators about the relationship between good design and effective teaching and learning. “We feel as the Student Association that there is limited exposure for Botswana architects within our own country,” laments Gaborone when discussing the exhibition’s contribution to the community. “We rely on architects from outside the country; we should have more influence in our buildings in Botswana as this will help us grow stronger as a country and this is a goal that the architecture community, students and practitioners, is working towards.” The work exhibited is a collection of student projects from their recent year, which showcases critical research and design investigations of cities and projections of possible futures for an increasingly urbanised planet. The collection of work celebrates a plurality of approaches taken by the Architecture professors and their students in imagining alternative urbanisms set within the contexts of two cities— Gaborone and Francistown.
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Fifth year architecture student Tariro Ncube’s project is described as a synthesis of detailed urban/cultural analysis into the realistic architectural proposition of sustainability in a much-needed attempt to heal the Gaborone CBD. “The design involves sustainability and trying to gel various aspects of our environment to make places such as the CBD areas where we express ourselves as Batswana,” says Ncube. “The CBD is a blank blockish essence and it is taken from these areas that used to be populated by trees so I took that as the inspiration to design a building that breathes and changes like a tree.” “Showcasing our work helps us to get jobs; I myself got hired in one of the local Architecture firms (Pinagare Architects) after they saw my work and there are also those who are getting hired because they were the best performing students,” Fourth year Architecture student Kefilwe Motsie told us. “We get a chance to mingle with people from the industry with vast experience, which helps, because after this stage you have to develop a portfolio in order to apply for your Master’s programme or look for a job so they can advise you on the structural elements and functionality of your design; they can also give you general advice on how to further your career.” The Exhibition is housed at the new Faculty of Engineering and Technology, University of Botswana, will run until the end of winter and is open to the public.
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EDITOR’S NOTE P18
BOIDUS FOCUS MAY 2015
EDITORS NOTE
Could the Banking Liquidity Crisis Lead to a Property Market Crash?
The Maitisong Festival 2015: From Gaborone to the World Continued from PAGE 9
Further, Born Around Here, a workshopped play directed by Gao Lemmenyane has also been invited to the Artscape Theatre in Cape Town for the Heritage Festival in September. This invite follows the attendance of the Artscape Creative Manager, Mandla Mbothwe, and the Artistic Director of The State Theatre in Pretoria, Aubrey Sekhabi, at the Festival this year.
By H. Killion Mokwete, RIBA Chartered Architect
With local financial institutions facing liquidity problems, property lending has all but grounded to a halt. Mortgage products that used to be floated for home ownership and property development have all but disappeared before our very eyes. Of course, most, if not all mortgage lenders will tell you all is well, but on the ground the situation is bleak. It has become almost impossible to qualify for property loans in the face of tighter demands for loan affordability. Mortgage departments in some of the key banks have been ‘restructured’ into small units, primarily tasked with looking after the currently held stock. The repercussions of this current unfolding financial conundrum have fast-tracked a property market bubble burst which long had the potential to happen given the combination of skyrocketing property prices and lack of adequate supply. Now, what could unfold as a result of banks shutting their mortgage gates will unravel much more than just the construction industry itself. Lessons from the USA property bubble of 2008, although of different magnitude, show that loss of employment across frontline industry sections will be crippling; property repossession will skyrocket; and effects will still be felt long after the crisis has abated. In the US, as the housing bubble deflated, industries that heavily depend on demand
from residential construction began to suffer considerable losses in employment. From 2006 to 2009, employment in mortgage and non-mortgage loan brokers, as well as in real estate credit, dropped by 54.5 percent and 44.0 percent, respectively. The drop in wood product manufacturing was 35 percent while cement and concrete product manufacturing sunk by 24.4 percent; both industries experienced losses in employment. Other areas that took a hit were manufacturing, wholesale trade, retail trade, real estate, as well as of course the financial sector. Most of these sectors experienced losses in business which in return resulted in loss of employment and again resulted in housing repossessions.With other areas of the economy dependent on the housing market, when homeowners have positive equity in their homes, they tend to spend more money in consumer purchases. When that equity becomes a negative debt, they tend to spend less. Because banks and investors are likely to be slow in moving money back into the housing market, economic recovery may be slow as well. It is therefore worrying that in Botswana it appears little is being done, not just to stabilise liquidity in banks, but to encourage banks to lend mortgage loans to avoid what seems to be an impending crash.
BOIDUS TEAM May 2015 MANAGING EDITOR
H. KILLION MOKWETE
STAFF WRITER ACCOUNTS
NGWEWABO MOKWETE
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The groundwork has been laid and it remains for both artists and spectators to support festivals such as this in order to continue to elevate the status of the arts in Botswana. As Lemmenyane points out, it gives us an opportunity to share our stories with the rest of the world, such as Born Around Here, which examines the impact of Apartheid on Botswana. Such stories remind us of our connection to each other as Africans and as people by highlighting our shared struggles.
MARTHA ROOI
GRAPHICS ASSISTANT
DEPUTY EDITOR
KIBO NGOWI
not just monetary gain. Morwa: the Rising Son is evidence of this as its creator and performer, Tefo Paya, makes the transition to full-time artist with a South African tour from Pretoria (Drama for Life South African Theatre Season, The State Theatre) to Cape Town (African Youth Theatre and Dance Festival, Artscape) and to Grahamstown (National Arts Festival and National Schools Festival) over the next two months.
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