Boidus Focus - Vol 5, Issue 7 [July 2015]

OIDUS FOCUS Registered at GPO as a Newspaper P15.00 (Including VAT)

BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER | Vol. 5, Issue 6 | june/july 2015

www.boidus.co.bw

HOME IMPROVEMENT

DIY Special: How to

Repair a Leaky Spigot p11

PROFESSIONAL PRACTICE

LOCAL NEWS

BPOPF invest P300 million

In CBD Mixed-Used

p2

Contractual Privity Between

Employer & Subcontractor p10

MAIN FEATURE

IPD Index Reveals

Slowdown in Botswana Property Market

By Kibo Ngowi

“It Remains The Best”

iTowers Fights For Mixed Use Supremacy With Second Tower

By Kibo Ngowi When the first tower of the iTowers development was opened in 2013 it was easily Botswana’s tallest building with an elevation of 19 storeys but the second tower, which is almost completely pre-sold and is at an advanced stage of construction, will dwarf it at

a height of 28 storeys. Appleby’s Director Batanani Nkhumisang talks to Boidus Focus about the vision behind iTowers and why he believes it remains the best development of its kind in Botswana.

p3, 7

ARC Set To Kick-start

Registration of Architects

By Kibo Ngowi

The Botswana investment property sector is experiencing a slowdown, with ungeared total returns falling from 21.5% in 2013 to 11.5% in 2014, according to the fourth “IPD Botswana Annual Property Consultative Index”, released last late last month. First launched in 2012, the index measures ungeared total returns to directly held standing property

investment for the year ending December the previous year. The total returns hovered around 20% in the first three IPD reports (20.8% for 2011; 19.5% for 2012; and 21.5% for 2013) so the current level of 11.5% marks a significant drop from the trend of previous years.

Botswana Insurance Company:

The Real Estate Advantage:

Professional Indemnity Insurance Cover

p15

p5

Ten Years of Market Trends

p8

LET US TAKE CARE OF YOU WHILE YOU FOCUS ON YOUR VISION.

Sustaining and Supporting a Better Tomorrow: 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

As part of a wider effort to establish a fully regulated environment for Botswana’s construction industry, the Architects Registration Council (ARC) will this year begin the process of registering all the country’s architecture

professionals. Boidus Focus spoke to ARC Chairperson Mr. Goitsemodimo Manowe to learn more about how this process will be carried out and how it will benefit the public at large.

p6, 15

Design pad:

Furniture Restoration & Repurposing

p14

BOIDUS FOCUS JUNE/JULY 2015

LOCAL NEWS P2

NEWS BRIEFS June 2015

Compiled by Keeletsang P. Dipheko

BPOPF invest P300 million In CBD Mixed-Used Including Hilton hotel

The Botswana Public Officers Pensioners Fund (BPOFP), in partnership with M3 Consultants, Hilton Brand Worldwide and Fleming Asset Management, has invested P300 million to build a five-star Hilton Garden Inn Hotel in Gaborone’s new CBD, opposite the iTowers.

The 148-room hotel is expected to take 18 to 24 months to construct.

During the groundbreaking ceremony last week, BPOFP Acting CECO Lesedi Moakofhi said the birth of Hilton hotel is a turning point for the BPOPF’s investment strategy. The M3 Company has developed the designs of the building while the Fleming Asset Managers coordinated the project, while Wharic Construction Company has won the tender to build a multi-million Pula garden which will form part of the complex.

Business Assist Flyer - Print.pdf 1 2/25/2015 12:10:49 PM

Moakofhi added that their desire is to see Batswana’s retirement savings meaningfully develop the country and also give a positive return on investment to shareholders. Hilton Garden Inn is well known by guests around the globe for its upscale facilities. Hilton Hotels have been operating for 90 years and have a presence in 94 countries on 6 continents comprising some 4,300 hotels. The project will also create employment, boost wealth for pensioners and contribute to the economy.

Everyone is switching to

BHC raises P43m from sitting tenants’ campaign

Don’t let your business suffer...

C

M

Y

CM

MY

CY

CMY

K

Invoicing Quotations Inventory Control Customer Contacts Purchase Orders Supplier Contacts Payroll Financial Reports Employee Management Deposits, Expenses & Bills With Point Of Sale* Extensive Reports

BUSINESS MANAGEMENT SOFTWARE

Get Business Assist to improve:

The Botswana Housing Corporation’s (BHC) sitting tenants campaign, which was launched last year, generated about P43 million as at March 31, 2015.

About 44 Batswana managed to buy houses, seeing BHC attain a 29 percent increase in sales of the old stock as compared to the year 2013/14. The campaign has now been extended to March 2016 and the corporation has resolved to continue the campaign under the same value proposition and terms and conditions. On the value proposition, low cost houses are given a 5.5 percent discount, while medium cost gets 3.5 percent discount and high costs gets a 2.0 percent discount.

ESS BUSIN S T S I S

A

ement

ag ess Man ete Busin s “Compl For Businesse e Softwar ” es Of all Siz

NAL

FESSIO

PROF

D ct of

rodu

Ap

NEW EDITION “2015”

(PROFESSIONAL) OR (EXPRESS)

D TTESS

R

ENTERPRISE SYSTEMS & SOLUTIONS

“Quality Assured, Service Guaranteed”

tel/fax: (+267) 390 2766 | mobile: (+267) 73456638 Plot 104, Unit 5B, Gaborone International Commerce Park enquiries@dottess.com | www.dottess.com

SS

TE OT

Expert shocked by lack of land–focused CSOs An expert on issues of Land, Dr. Fibian Lukalo, who is the Director of Research and advocacy of the Kenya National Land Commission, has expressed shock at the non-existence of land focused civil society groups in Botswana. The civil society’s primary role is to keep the government on its toes and hold it accountable. He said several countries’ progress on issues of land is a result of the civil society’s interventions and presence. They do not only keep the government under pressure but also offer alternative solutions to the problems.

Find these stories and more at:

www.boidus.co.bw

BOIDUS FOCUS JUNE/JULY 2015

BOIDUS FEATURE P3

iTowers Fights For Mixed Use Supremacy with Second Tower

ALUMINIUM & GLASS CENTER

By Kibo Ngowi

Continued from the FRONT PAGE “We identified a gap in the market,” Appleby’s Director Batanani Nkhumisang tells me when I ask him about the vision behind creating the iTowers development. iTowers was developed through a partnership between the developers Tredinnick Botswana and ODE while Appleby’s is responsible for the sale and letting of space in the buildings.

“We wanted to create a development which could accommodate residential, office and leisure – basically a place where you live, work and play all in one area.”

Mixed use developments are somewhat of a growing trend in Gaborone. A few years ago the city had no real developments of this kind to speak of but now there are at least three high profile mixed use properties in Botswana’s Capital City.

One is Masa Centre, located a short walking distance down the road from iTowers, and the other is BDC Tower, located on the other side of town in Fairground Office Park. Along with iTowers, all three offer a mix of leisure, retail and residential space but Nkhumisang insists that iTowers remains the best option.

“Clearly, in terms of location, you can’t compare other locations to the CBD,” says Nkhumisang. “CBD is the hub. It’s where everything is going to be, both in terms of business and living. Secondly, iTowers offers spectacular views, in terms of height. iTowers South is going to be significantly higher than all other buildings in the city. So you’re paying for a premium space here and I have no doubt that it remains the best.”

When the first building of the iTowers development (iTowers North) was opened in 2013 it was easily Botswana’s tallest building with an elevation of 19 storeys but the second building (iTowers South), which

is almost completely pre-sold and is at an advanced stage of construction, will dwarf it at a height of 28 storeys. There is also a three-storey building called the Hub located in between the two towers.

Built at a cost of about P200 million, iTowers North is predominantly commercial with most of the building being taken up by office space; the ground floor has a few retailers such as a coffee shop, salon, travel agent and other shops, while the first floor is for restaurants.

There is currently only one restaurant, Liban, which serves Mediterranean cuisine, but another restaurant, which will cover two thirds of the floor space on the first floor, will be opening before the end of this year.

Sky Lounge, a café with some of the best views in Gaborone, thanks to its placement on the top floor, is a big attraction for the tower but the most intriguing space in the tower is one very few people get to see – the penthouses.

The building has four penthouses all positioned on the 16th and 18th floors. Each penthouse covers a around 550sqm (an average low-cost house in Botswana only covers around 150sqm). This includes four en-suite bedrooms, a spacious kitchen, and a roof terrace on the 19th floor.

Two penthouses will be available on short-term letting but Appleby’s is still working on the pricing, while two are owner-occupied.

Nkhumisang says he is happy with the performance of the first tower as all spaces in the building have been sold except for three units. What usually happens is that an investor will buy a space and then use Appleby’s to find a tenant to occupy the space.

Appleby’s didn’t deal with any one particular bank to support the investors who acquired spaces in the Continues PAGE 7

[

ONE STOP FOR ALL YOUR ALUMINIUM & GLASS REQUIREMENTS POSTAL P O Box 402772 Gaborone Botswana

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

]

Full range of Domestic, Industrial and Commercial Glazing, Aluminium Windows and Doors as well as Sliding Folding, Sliding Stacking, Frame-less Doors and Partitioning, Flush Glazing, Spider Glazing, Curtain Walling, Aluminium Cladding, Granite Cladding, Euro profile Doors & Windows (tilt & turn)

TEL (+267) 3938452 (+267) 3939264 (+267) 3939228

FAX (+267) 3938453

BOIDUS FOCUS JUNE/JULY 2015

BOIDUS FEATURE P4

HOW TO GET A BUILT ENVIRONMENT QUALIFICATION

By Arnold Tombo

Bachelor of Interior Architecture at Limkokwing University

Diploma in Electrical & Electronic Engineering at New Era College

Bachelor of Architecture at the University of Botswana

SAME N. DISEKO

KAGISO BIATHEI

TUMELO MOSEBI

Born in 1989, Same N. Diseko, graduated with a Bachelor of Interior Architecture Degree from Limkokwing University in 2012. Same proudly declares that she was the top student in her class every year and that in 2012 she received an Industrial Award of Excellence.

Mr. Kagiso Biathei holds a level 3 IVQ Technician Diploma in Electrical & Electronic engineering which he was awarded in June 2014 from New Era College. He is now in his final year of study in the Advanced Electrical & Electronic Engineering Diploma programme, on track to graduate in June 2015. Kagiso says his plan is to enter the industry in order to get exposure in various fields of the profession and then return to school to pursue a degree.

Mr. Tumelo Mosebi graduated from the University of Botswana with a Bachelor of Architecture Degree in 2012 and is currently employed as a Studio Manager at Gabana Architects in Extension 10, Gaborone.

“Starting university is an exciting life-event, full of changes, challenges and many demands on individual resources and capabilities,” says Same. “Particularly with my course, one should have the motivation and interpersonal skills that drive an individual to do a practical course.”

“I developed an interest in electrical engineering at an early age,” recalls Kagiso. “The first time I saw a torch is when it all started.” He grew up in the village of Karakubis where there was no electricity at the time. In this environment, the locals would use paraffin lamps and candles for lighting, Kagiso explains: “A torch was something which was protected and given much attention and to my surprise it was controllable through an on-and-off switch, as opposed to candles or paraffin lamps which were easily blown away by wind, and I found this fascinating.”

Same studied Design and Technology during her junior and senior secondary studies, developing a strong interest in the subject, so when she was applying for university she was eager to opt for something related to design.

“To excel in my programme you should be passionate, detailoriented and eager to learn new things,” says Same. “Because in Interior Architecture you deal with materials and colours so you need to be open-minded enough to explore. You should know how to draw or sketch but above all is the passion because, with that, everything else will fall into place.”

Kagiso enrolled for the programme at New Era College with his National Craft Certificate (NCC). The programme takes four years to complete up to Degree level and the student has to serve as an apprentice in a company during every semester break for those four years. “So it requires a lot of training and experience in field work to be a competent Degree holder, other than just holding a degree but not knowing much about the profession,” says Kagiso.

He will complete his Advanced Diploma in Electrical & Electronic Engineering programme this month (June) and has also registered an OC Electrical company with Public Procurement and Asset Disposal Board (PPADB).

Same also emphasises that successful students have realistic expectations about study and how to balance it with their work and social life: “You should develop a strategy that will allow you to excel in your studies. Every time the semester started I would cut off friends and stop going to parties so it was just school and home. Whenever I didn’t understand something in class I would ask the lecturer and lecturers would often send me to other classes to help other students.”

Kagiso says the key to performing well in this programme is to have interest, be determined and be good in maths and sciences.

But he insists there’s more to university life than lectures, tutorials and late night cramming. “Discover the opportunities available to get the most out of your university experience and along the way, build your networks, develop your skills and increase your employment and business opportunities,” urges Kagiso.

Same is currently employed as an Interior Architect at Val Interiors in Bontleng, Gaborone. She performs various other duties for the company such as marketing, public relations and administration; she also acts as the personal assistant to the Company Director.

Same says that going to university is a life-changing experience that gives one the opportunity to define their career path. The environment necessarily forces the development of the student, their mind, thoughts, opinions, and identity. Whether or not this is their first time, students have to juggle aspects of life such as money, accommodation, health, practical work, assignments and future career plans. This can be overwhelming, especially when they face unexpected setbacks.

Kagiso says his company is developing a project that is predicated on the fact that saving energy today is a number one priority, in Botswana, for most businesses and households. “I have come up with a project that I believe could help address the national crisis that we find our beloved country in, that is shortage of electricity,” enthuses Kagiso. “I have designed an electrical circuit that will reduce energy consumption, lead to a reduction in the electricity bill and also help in the reduction of the load during peak demand periods.”

“It gets tough but don’t give up,” insists Same. “When you go to school, don’t just go there because you have nothing to do. Interior Architecture is a tough course so you should have focus in order to excel. You should impress industrial moderators during your project presentations; this has helped me because I never struggled to find attachment or work opportunities, and when you finish, don’t expect to get hired immediately; you must be prepared to start and run your own thing.”

BOIDUS

MEDIA

PLATFORMS Boidus (Pty) Ltd.

P. O. Box 50097, Gaborone Plot 2930, Ext. 10, Gaborone +267 3182209 | mail@boidus.co.bw

Kagiso says he wants to give all stake holders, including NGO’s, government departments, parastatals, professionals, political leaders and individuals one important message: “Gone are the days when the youth of Botswana were not playing a pivotal role in the economy; we are burning full of ideas that need support in order to be implemented and it is our dream to drive this economy forward.”

PUBLICATION OIDUS FOCUS

Mosebi insists that becoming an Architect should only be pursued if you are truly passionate about it, and not because you want to look cool. “I was motivated by the fact that Botswana is still a developing country,” he says. “I wanted to contribute to the physical development of my country; I wanted to ultimately design something that my country will identify itself with.”

Mosebi insists that in order to excel as an architect, one has to be creative: “Architects are inventors of spaces; you create and articulate space for human occupation so you need to think outside the box.”

He goes on to list other qualities that are vital for practitioners of this trade: “You should have problem solving skills because you’ll be expected to create spaces that respond to the environment; you also have to be aware of issues happening around you, whether it be the political climate, economic environment, community virtues or family dynamics; you need to have good presentation skills as you will communicate your ideas to clients in the simplest terms possible; and finally, time management is crucial because you have to balance the demands of architecture with other aspects of your life.”

If you’re the kind of person who likes to work with your hands, then architecture is the right profession for you. In architecture, you get to work with your hands. It’s not just about reading and writing all the time; you must have a hands-on approach on many assignments as you’ll be expected to do things such as building scale models, developing surveys and interacting with people; it’s a very active field. “You need to be focused, determined to work hard, and willing to make many sacrifices,” warns Mosebi.

“Time management and proper prioritisation of things is crucial. When I was in school I put my studies first and everything came second,” Mosebi told me by way of explaining the strategy he used to finish his programme well in time. Being dedicated to your career is an important factor in any profession, but with architecture, you need to be willing to devote a great deal of hours; it requires a lifetime commitment to continued education.

Being an architecture student is more than just drawing and building. It involves social skills, knowledge of engineering, maths, science, construction, dedication and drive, and most importantly, the ability to design. Mosebi emphasises this and says, “Architecture goes beyond designing a nice building; it involves seeing a sketch evolving into a fully functioning building, and the whole process is a journey on its own.”

MEDIA EVENTS

Registered at GPO as a Newspaper | P8.00 (Including VAT)

OIDUS FOCUS

BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER

www.boidus.co.bw |

Sustainability Today: 06 Starting blocks with

Botswana’s Architecture Design and Urban Landscape Newspaperclimate | J U Nchange E 2013 www.boidus.co.bw

NEWS | page 02

EDITORIAL | page 04

Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant

Intro Government to Promote IntroHow ready is Botswana for Develop duction of Residential Developthe Inevitable Change towards BOIDUS FEATURE > Decarbonisation targets? ment into the CBD Global

| 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

SUSTAINABILITY | page 06

www.boidus.co.bw

Guide to School Programmes: 2013 Built Environment Careers Guide

BOIDUS EXCLUSIVE >

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

Botswana’s Architecture design & Urban Landscape Newspaper | M A R C H 2 0 1 3 NEWS | page 02

BUILDINGS | page 06

A Luta Continua on the Land Question Airport Roof Gone with the Wind

The Idea of Eco Cities: Need for harmony between policy and green initiatives

Meet three of Botswana’s best Event Feature: State of our CitiesBDC FAIRSCAPE PRECINCT, The rising engineers

HOUSING | page 16

PRACTICE | pages 14, 18

Buy or Build a new Home: The Pros and Cons

Disentangling the Web – A Look at Infrastructure Project Management

P8.00 (Including VAT)

BOIDUS EXCLUSIVE FEATURE >

BOIDUS EXCLUSIVE >

BOIDUS EXCLUSIVE FEATURE >

P8.00 (Including VAT) BOIDUS EXCLUSIVE >

Chavaphi, founder of Norcon Group; Tapa Moseki, partner at Engineering CBD Executive Seminar Event Felix Partners International; Matlhodi Keaikitse, partner at Ezra’s Contracting Services Realm of Splendor - Live, Work & Play With Breath taking Views

by Kibo Ngowi Bringing together key CBD stakeholders such as landowners and develop ers to engage on issues that affect their developments and investment

BR Properties - Botswana’s first Parastatal Property Investment Subsidiary

“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”

by Kibo Ngowi & HK Mokwete

by Kibo Ngowi & HK Mokwete

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.

by Kibo Ngowi / H. Killion Mokwete

The performance of this company will serve as a test case for many other

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

>>> CONTINUED PAGE 07

LEFT: Felix Chavaphi, MIDDLE: Tapa Moseki, RIGHT: Matlhodi Keaikitse

“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

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

The Boidus Media, State of our CitiesCBD Executive Seminar recently held

and the public in sharing of ideas and opportunities about our upcoming

at Masa Centre was by any measure a resounding success. The Seminar

CBD. Envisaged as the future heart of Gaborone City, the CBD is slowly taktak

event brought together for the first time ever in Botswana, key stakehold-

ing shape and the seminar sought to make it a centre stage focus of discusdiscus

ers of the New CBD development such as investors, development own-

sions and professional deliberations.

In this Boidus Focus Special, find

ers, government, industry champions

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

by Boidus Admin

A Successful CBD represents among other things; • A success CBD Image of the city and the country Felix Chavaphi Portfolio • Generation of the country’s prosperity • Successful partnership between the Government & PVT[TOP] sector University of Botswana Library Dimitri Kokinos: Portfolio Structuring Manager (Stanlib) million with Murray & Roberts

at a cost of P54

[BOTTOM] Gaborone Taxi Rank Shopping Complex >>> CONTINUED PAGES 08, 13, 18 Plot 7 at a cost of P2million with Murray & Roberts

“In this line of work you need to put your yourself in a position where you have interest and ownership of the projects you’re dealing with because structural engineering is a sensitive field in that we are dealing with peoples’ safety. We are putting up structures which are going to house lives so you can’t approach this profession as simply a job. You have to see it as a responsibility and a privilege.”

- Tapa Moseki >>> CONTINUED PAGE 04 >>> CONTINUED PAGES 03, 04, & 06

FIND CREATIVE

TO COMMERCIAL

ANSWERS QUESTIONS.

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.

Renowned experts in branding, business and marketing.

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

the office facilities accommodating all

into its newly built headquarters in Gaborone’s rapidly developing Cen Cen-

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-stop-

but a few, customers get a full bouquet of FNBB products under one roof.

shop” capability. With an expansion of

>>> CONTINUED PAGE 07

Birds-eye view

A Fresh Approach to Buiding a Home - Inside House Agolen II

by Leago Public Piazza

Office of the President

Sebina

As an architect, the opportunity to design a building offers, not only the creation of a physical expression of the building itself, but also the possibility for architecture to mould the life and memories of its inhabitants. Therefore, one could argue that architecture should be thought of as being alive as

opposed to the way it is usually viewed, views from across the City. Boidus as being static. There is no other was buildrecently given exclusive tour of the construction site to experience ing typology that embodies such a nofirst hand tion of architecture than the house, the this exciting project as it most basic and primal form of shelter for human beings. >>> CONTINUED PAGES 08, 13

The Relocation of the Office of The President Is it the Right Move Or Not?

by HK Mokwete

The current debate in parliament over

the President (OP) is missing the big-

a budget allocation request of P195 million for the purposes of augment augment-

ger picture of what should be debated when procuring the office space for the

ing funds to either- acquire or build a new office block to house the Office of

‘Highest Office in the Land.’ >>> CONTINUED PAGE 04

CBD EXECUTIVE SEMINAR - Oct 2014 CBD EXECUTIVE SEMINAR - May 2013 DESIGNER’S FORUM - Apr 2012 BOTSWANA PROPERTY MARKET - Coming soon 2015 BOTSWANA PROPERTY MARKET - Sep 2013 HOUSING AFFORDABILITY IN BOTSWANA - Mar 2012

>>> CONTINUED PAGE 14

P500

(FOR BOTH DAYS)

June 21-22

University of Botswana

P300

student price for both days

*PRICE PER DAY FOR INDIVIDUALS OR PAY P500 FOR BOTH DAYS. FOR INDIVIDUAL AND CORPORATE TICKETS CONTACT +267 72 49 51 71

>>> CONTINUED PAGES 04, 08

FNBB AFFORDABLE HOUSING MARKET - Dec 2013

[

SOCIAL MEDIA Professionals Information Seekers Students Organization Affiliations Find us online:

]

www.boidus.co.bw

BOIDUS FOCUS JUNE/JULY 2015

BOIDUS FEATURE 5

IPD Index Reveals Slowdown in

Botswana Property Market

By Kibo Ngowi

added to their portfolios.

It’s also important to note that at least two other large property vehicles active in the Botswana market are not included in these figures. There’s RDC Properties, which had a property portfolio of close to P1bn (P950, 300, 000) as of 31 December 2014, and New African Properties, which had a property portfolio of over P1bn (P1, 170, 000, 000) as of 31 January 2015.

IPD Botswana Annual Property Index - Results for the year to 31 December 2014

Continued from the FRONT PAGE The Botswana investment property sector is experiencing a slowdown, with ungeared total returns falling from 21.5% in 2013 to 11.5% in 2014, according to the fourth “IPD Botswana Annual Property Consultative Index”, released last late last month. The index is produced by IPD, a recently acquired subsidiary of MSCI Inc. (NYSE: MSCI), a US-based provider of equity, fixed income, hedge fund stock market indexes, and equity portfolio analysis tools.

First launched in 2012, the index measures ungeared total returns to directly held standing property investment for the year ending December the previous year. The total returns hovered around 20% in the first three IPD reports (20.8% for 2011; 19.5% for 2012; and 21.5% for 2013) so the current level of 11.5% marks a significant drop from the trend of previous years.

The index is sponsored by Botswana Insurance Fund Management (BIFM) and is based on asset level data collected from six leading local property investment portfolios. The participating companies have changed over the years but currently these six are Botswana Insurance Fund Management Property Portfolio, Debswana Pension Fund, Letlole La Rona Limited, Motor Vehicle Accident Fund, Primetime Property Holdings Limited and Turnstar Holdings Limited.

The latest edition covers P3.3bn in capital value but trends in the rise of capital value over the three indexes also indicate a slowdown. Capital value rose by more than 50% between 2011 and 2013, from P2bn to P3.3bn, but negligibly by less than 5% between 2013 and 2014, from P3.3bn to 3.4bn. It should be noted that this capital growth includes any acquisitions and developments that the portfolios covered have

There are also various other companies that have invested in property, despite the fact that property is not their core business. For instance, First National Bank Botswana (FNBB) built its own headquarters building, dubbed First Place, in the CBD area of Gaborone. So the IPD Index is by no means a definitive overview of the Botswana property market, although the data it covers does offer the most detailed indication of industry performance currently available.

With returns of 16.8%, industrial was the highest performing sector of the period with retail, office and industrial all hovering around 10%. All four of these sectors have experienced a drop from the returns of the previous year however, with industrial seeing a 10% drop compared to 2013 when it recorded returns of 26.7%.

In a press release from MSCI, Stan Garrun, Head of South African Real Estate, MSCI noted that the index’s figures show that the falls in total return are being seen across the board, with all of the main sectors experiencing a similar drop in the region of 1000 bps. He added that despite a fall in total returns across the board, it appears that the factors that support the property sector – low vacancy rates and rental yield – remain strong.

“Landlords are seeing a rise in passing rents, particularly within the Retail and Residential sectors, which is in line with inflation.

Capital value growth declined in all property sectors though still positive at 2.0% on aggregate. This slower growth reverses the bullish view of the year before, perhaps reflecting a more cautious attitude among valuers after a run of particularly strong returns for the three years ending December 2013. The data for 2014 shows that the market is normalising,” concluded Garrun.

Sethebe Manake is the Managing Director of Vantage Properties, a property consultancy firm with a focus on property market research, and was a guest speaker at the recent launch of the IPD Index in Gaborone.

For her part, Manake commented that a drop in the capital growth indicates that during the year under assessment, valuations conducted on the specific portfolios were conservative and that a conservative approach to valuation is a response to the perspective of future market trends in those specific sectors and locations of exposure.

“It is to be noted that the participating portfolios are highly exposed in Gaborone,” she goes on to say. “So much of the index is based on Gaborone market trends; therefore the performance of the office sector is not surprising to a watchful eye.”

The total returns measured on the index are indicative of the returns achieved without a cost of finance component which generally reduces the total return for the investor, and at a time when cost of finance is between 10% to over 16%, a total return level of 11.5% is not attractive for the average investor who uses leverage for growth or expansion, concludes Manake.

Subscribe to Boidus Focus Newspaper now for 1 copy per month for a year at P 180 and stand a chance to win 3 indigenous trees from Mokolodi Indigenous Nurseries

SUBSCRIBE NOW

and get your copy delivered to your door, send your details to: tel:+267 3182209 cel: +267 73805898 email: mail@boidus.co.bw

mobile: +267 71301083/+267 77063055 email: walkabout@info.bw Mokolodi Indigenous Nurseries is a supplier of water-wise drought resistant plants

SPECIALISTS IN LED LIGHTS AND ENERGY SAVING LAMPS

ED LIGHTS is not only a highly exclusive, designer inspired, modern lighting distributor it is also a phenomenon in Botswana. Our ever expanding product range provides lighting solutions to most sectors and popular in homes, office, retail spaces manufacturing and hospitality environments across the country.

All light fittings carry a one year waranty.

Unit 10,Western Industrial Estate, BDC Complex, Block 3 Industrial, Gaborone Tel: 391 3506 Fax: 391 3864 www.edlights.co.bw OPEN ON SUNDAYS

Suppliers of: Architectural, commercial, Domestic and industrial lighting Service Offered: Lighting Layouts & Designs, Technical Expertise and Lighting Consulting

Crystal Chandalier Lights Modern Kitchen Lights Garden Lights Living Room lights

www.boidus.co.bw

BOIDUS FOCUS JUNE/JULY 2015

BOIDUS FEATURE P6

ARC Set to Kick-start Registration of Architects

By Kibo Ngowi

ing certificate,” explains Manowe. “So there’s a distinction: being registered means you can be employed as an architect but you can’t practice, practice meaning to offer your services to the public as a professional, until you have a practicing certificate.”

Architects Registration Council (ARC) Chairperson Mr. Goitsemodimo Manowe

The road to establishing a regulatory environment for Botswana’s architects began in earnest in 2010 when the Architects Registration Council (ARC) started discussions with government to amend the Architects Registration Act. Chief amongst the Council’s concerns, ARC Chairperson Mr. Goitsemodimo Manowe tells me, was that the Act didn’t provide for the ARC to receive seed funding to kick-start its activities. This was amended and in March of this year the Council received its first subvention from government.

Since then the organisation has managed to appoint a Registrar who is expected to begin his duties at the start of July, while the actual registration process is planned to run from this September to January 2016, although the Council is at liberty to extend the time period and deadline for registration.

Another concern was that the Act didn’t include the categories of Draftsperson and Technologist, which are well known to be active in the architecture industry, so the Act now includes three categories – Architects, Technologists and Draftspersons. But there are clear limitations on what level of work Draftspersons and Technologists can be expected to perform.

The original Act also provided that once registered, an architect would be registered for life, so the ARC recommended that this be changed.

The Amendment Act now provides for an annually renewed practicing certificate. Now there will be three fees architects have to pay: the application fee, registration fee and the practicing fee. The application and registration fees are once-off payments while the practicing fee is an annual subscription that only applies to practicing architects, technologists or draftspersons; employees of architectural firms who work under the supervision of a practicing architect, technologist or draftsperson do not need a practicing certificate. To obtain a practicing certificate, one has to show proof of prior engagement in a project or score a minimum number of points in a Continuing Professional Development (CPD) program.

“Now with registration you remain on the register for life provided that you haven’t done anything that can be seen as misconduct or warrant that you to be struck-off the register but you can’t practice until you have acquired a practic-

“There’s a saying that if you pay peanuts you’ll get monkeys,” Manowe says when I ask him how registration of architects will benefit consumers.

“So I don’t understand how someone developing a P20 million project would want to pay a draftsperson P5, 000 for what they call a plan because there are issues of professional accountability and those are long-term. They even go into the operation and maintenance of the project.

When you finish your project on site you need to develop the manual on how to manage the facility so that it continues to function the way it’s supposed to function, so the work of an architect

doesn’t end with just producing plans as people call them. It involves professional accountability, quality of service and value for money.”

“Registration will help consumers to separate the crooks from the professionals because, for now, the public doesn’t know who’s an architect and who’s not. Anybody can claim to be an architect and surely we don’t want that status-quo to continue.”

Furthermore, consumers will be able to address their complaints of improper conduct on the part of architects, technologists or draftspersons to the ARC and the Council will undertake an investigation, after which, if they conclude the consumer was wronged, they will pay out some compensation, taken from a fidelity fund established specifically for this purpose. Every registered architect, technologist or draftsperson, who obtains a practicing certificate, will have to

pay an annual fee towards the fidelity fund and the ARC will not be able to dip into it to support operational costs, explains Manowe. The fund will be specifically for the purpose of compensating aggrieved consumers of architectural services.

Manowe highlights that there is a difference between professional liability covered by insurance and impropriety or negligence. Professional liability insurance covers an architect for sincere and unforeseen mistakes that result in defective products and this should be covered by professional liability insurance, but impropriety is when an architect deliberately cheats a client or acts improperly. The fund will only compensate members of the public who have suffered loss due to impropriety or professional negligence on the part of a registered architect, technologist or draftsperson.

Continues PAGE 15

BOIDUS FOCUS june/JULY 2015

GUEST COLUMNIST P7

iTowers Fights For Mixed Use Supremacy with Second Tower

Winter gardening tips Winter is the best time to get planting and preparing the garden for the new growing season.

In very cold regions where frost occurs, some plants that are tender may need to be protected from frost burn. Spray a little water on them in the early morning to melt the frost. Vegetables and succulents are susceptible to frost burn.

You will find landscape fabric at a large hardware store or garden centre that can be used to cover plants that are susceptible to damage by frost.

fruit. Cut at a 45 degree angle.

Feed with 3.1.5 and kraal manure after pruning.

Lawns don’t look great or grow a lot in winter. Many lawns get invaded by runner/golden moles during the winter. These little fellows love lawn caterpillar. Treat the lawn for caterpillar and you will get rid of the moles.

Roses and ornamentals need to be pruned in July. I am a great believer in more is better in this regard. All too often, I see roses that are not pruned down hard and this doesn’t allow for healthy growth and flowering during the summer months.

Two thirds of the rose bush can be taken down.

Lawns also need aerating (spiking), during winter and then feeing with a good root stimulating fertilizer such as 2:3:2.

Make sure all the dead and hard wood is removed at the base of the plant. Prune at a 45-degree angle away from the bud so that water/ rain does not rot the new bud. It’s best to seal with a pruning gel after plants have been cut.

Aim to create a vase shape after pruning; cut out all the stems that grow through the middle of the plant, as you only want the green healthy stems to remain. Sometimes two to three stems is all that will remain, but they will flourish during the growing season as the roots will be able to feed them with all their zeal.

After pruning, feed roses with a good rose fertilizer and cover the base of the plant with a kraal manure or mulch. Remember to always water after fertilizing.

Fruit trees also need to be pruned and fed. Ensure all old and diseased wood is removed. Cut branches that grow through the middle of the tree and shade other branches.

Shaded branches will not provide fruit. Direct sun on new buds will encourage healthy growth and

Remember not to cut lawns too low during winter as it can cause disease. I also don’t recommend any top dressing through winter – rather wait until spring.

Mulching all beds and especially newly planted bulbs. This will retain moisture in the soil and keep weeds from germinating around the new plants. Make sure all beds are turned and kept weed free.

Most plants love a well turned, aerated soil.

Hydrangeas need pruning like roses. Add lime to the base of these plants and also to all stone fruits.

Lime improves soil PH and allows for plants to gain all the good stuff in the soil. Making for a healthier flower and better fruiting tree.

Winter is the best time to plant trees and shrubs. The plant roots develop fast and get lots of deep watering from the abundant rainfall in spring and growth is exponential during summer.

Contrary to what many of us think, winter is a good time to add colour to your garden: Pots and bed borders look lovely with flowering violas, cinerarias and primulas. I am a huge fan of Aloes and succulents in the garden, and they flower throughout winter.

Arum lilies and Clivias look lovely in shaded areas and the lovely Leptospermum (tea bush) add a lovely shape and contrast to most beds. Azaleas are very popular winter flowering plants.

So get the wellies on, switch the TV off and get the whole family into the garden this weekend. I promise it will be rewarding for all. (GoSouthOnline)

Visit us for all your gardening requirements Gaborone Dam site, Machel Drive Call us: +267 393 1358 www.sanitas.co.bw

Continued from page 3 building; a variety of financial institutions supported the acquisitions. Interestingly, the construction of both the first and second tower has been entirely self-funded by the developers Tredinnick Botswana and ODE. Expected to reach completion by February 2016 at a total cost of roughly P200 million, the 28-storey iTowers South will be a departure from the business model of the first tower as it will contain predominantly residential space. “From

our experience on the first tower we realised the demand was in residential so we quickly changed our concept for the second tower,” says Nkhumisang. He goes on to proudly declare that the building was 98% pre-sold before the earth works even begun so there are only six units remaining. The residential units in this tower range from P850, 000 upwards.

When the second tower reaches completion next year, iTowers will have solidified its place on the Gabz City skyline.

GUEST COLUMNist P8

BOIDUS FOCUS june/JULY 2015

The Real Estate Advantage:

Ten Years of

Market Trends

By Sethebe Manake

The growth rate of real estate prices in Botswana has caused great concern amongst all stakeholders in the recent past so we undertook an analysis of trends over the past 10 years.

another. In 2012 however we see Rs4 building cost rates reflecting a significant variation between itself and other property types. The Rs6 dropping in building rates applied in 2013.

Land Rates applied between 2005 and 2015 In order to measure the trends we assessed land rates that have been applied on 100 properties randomly selected between January 2005 and January 2015. This assessment provides evidence of growth in the land rates on the different locations over the years. It also provides real estate professionals some perspective on the movements in land rates from one year to the next, indicating years where economic drivers were active in specific locations.

Valuation Rates applied between 2005 and 2015 Valuations over the past 10 years were assessed based on the Open Market Value determined on different property types, at various locations in Botswana. The purpose of this assessment is to measure the growth of values of different property types in the different locations in Botswana, over the past 10 years.

Gaborone land rates provide evidence of constant growth on the land rates year-on-year since 2008.

The average year-on-year growth rate of Gaborone land rates is 33%. Oodi started seeing growth in 2011.

We do not have enough evidence on other locations such as Francistown, Palapye, Mahalapye, Selibe Phikwe, Maun and Kasane to make an assessment on them. However, the high activity in those locations gives rise to the expectation of a corresponding high growth in land rates.

This trend is important to determine key growth

locations within the country and track growth levels across the board of a property type when in a specific location. Valuation methods used and age of the property were taken into consideration to ensure that the comparison of a specific property type is linked to a similar property in another location. Only property types with sufficient data samples were used in this assessment.

The graph above is an illustration of the average open market value of each property type located anywhere in Botswana, from January 2005 to December 2013. The growth in Open Market Value of each property type indicates the growth in demand of each property type valued anywhere in Botswana.

Average Land Rates of different locations in Botswana over 10 years

Our precision simply comes standard..

Building Costs rates applied between 2005 and 2015 In order to adequately compare building cost rates over the years for property in Botswana, a criteria was set to develop a standardised way of categorising the properties under assessment. We took into consideration differentiation factors of properties that were far out of the category that they would ordinarily fall under, and normalised them to ensure that they do not affect the rates for the property category in that year.

..when it comes to your hoisting Solutions.

Hoisting Solutions is the fastest growing hoisting and crane hire company in Botswana, offering services in Minning, Industrial, Construction, Private & Commercial Sectors.

We are, and we seek to remain, the fastest growing crane company in Botswana becoming the first company of choice by offering our stakeholders outstanding quality service through attention to detail & good business ethics at all times.

Rs1 – Low income stand-alone, 2.5 bedrooms with 1 shower and toilet; Rs2 – Middle income standard, 3 bedrooms 2 bathrooms, single garage; Rs3 – High income standard, 3 bedrooms or more, 3 bathrooms or more, double garage; Rs4 – Apartments, 1 bedroom/1 bathroom apartment; Rs5 – Apartments 2 bedrooms, 1 bathroom apartment; Rs6 – Townhouses, 3 bedrooms within a complex/gated community; Rs7 – Golf Course Residential; Rs8 Large high income Residential located in plot of more than 4 hectares. Source: Vantage Properties

For the purposes of this assessment, only property types with a large enough sample size were included. Rs2, being the property type with a significant property sample over the duration of the period under assessment, is able to illustrate growth trends in the building cost rates.

It is quite evident that over the years the building cost rates for the different property types fall within an acceptable range from one property type to

P O Box 2342, Gaborone Botswana.

Tel/Fax Cell Email Website

: : : :

(267) 392 2911 (267) 73922910/1 cranes@hoistings.co.bw www.hoistings.co.bw

d&h advertising

A further analysis of the different neighbourhoods within locations has been made, but the sample size per neighbourhood was not sufficient for one to measure and report on trends.

BOIDUS FOCUS JUNE/JULY 2015

GUEST COLUMNIST P9

LESSONS FROM THE BHC CONFERENCE ON AFFORDABLE SUSTAINABLE HOUSING

By Olegona Chibua

FOR ALL YOUR NEEDS IN:

The first Botswana Housing Corporation (BHC) Housing Conference was recently held at the Gaborone International Convention Centre. To call it the BHC Housing conference is a misnomer.

Instead, the theme “Providing sustainable affordable accommodation in Botswana” inscribed on the conference brochure elevates the discussion to a national level, and even beyond, and sets the tone for what similar future discussions should focus on.

The discourse on sustainable affordable housing in general has long been overdue. Whether the hype of the conference lingers long enough to enable meaningful dialogue, policy change and implementation thereafter, or not, it is undeniable that being the first of its kind, the conference has to be considered a success, at least for taking place and bringing forth issues of relevance to the main topic of discussion.

It could also be said that the timing was critical considering that banks are currently grappling with liquidity issues. Our country is also faced with serious challenges with regards to the provision of basic necessities such water and electricity to the general populace.

Speakers shared experiences and engaged on the subject of whether sustainable affordable housing in Botswana is indeed achievable. The expectations were managed in the remarks of BHC CEO Reginald Motswaiso who shared that the purpose of the conference is to aim for a common solution to make housing not just affordable but also sustainable. “Along the way, the conference would have to re-look at what Botswana considers sustainable and affordable in order to address the current challenges”, he said. He reiterated that in order for that to be possible, it has to be acknowl-

edged that no one has a monopoly on the solutions of the challenges of sustainable affordable housing.

As such, this thrust the responsibility on everyone to understand that the housing challenges we face as a nation are not going to be solved without collective effort, and for housing, that effort will be from developers, banks, industry professionals, private sector players, parastatals, government and non-governmental organisations.

ALL TYPES OF KITCHENS EXCLUSIVE UPMARKET KITCHENS: WOODEN & PAINTED KITCHEN DOORS WARDROBES WALK IN CLOSETS COUNTER TOPS SPECIALISED GRANITE COUNTERS PROCESSED AND MANUFACTURED IN-HOUSE SUSPENDED CEILING » SPECIALISED PARTITIONING.

» » » » » » » »

The approach of a collective effort discussed at this conference struck a chord with me. Four years ago, the world converged in Durban, Kwazulu Natal for the Conference of Parties Convention (COP 17) was held in Africa for the first time and I happened to be part of it. I had been invited to be part of the delegation comprising 58 representatives accompanying the then Minister of Environment, Wildlife and Tourism, Kitso Mokaila.

By virtue of being one of the co-founders of Botswana Green Building Council, I found myself, like other delegates, having to discuss the global fight against Global Warming, which is another challenge we are facing in the 21st Century.

For me, the choice had already been made as two of my colleagues and I had joined hands a year earlier by founding Botswana Green Building Council, with the aim of bringing national awareness on the need to make buildings that are environmentally responsible and resource efficient throughout their lifecycle. The construction industry is responsible for a third of all greenhouse gases and accounts for nearly 40% of all energy consumption; As such, if each person or each country can do their part and contribute towards Continues PAGE 13

CONTACTS

P O Box 202356 Bontleng Gaborone Botswana BROADHURST BRANCH tel: (+267) 3165772/6 fax: (+267) 3165779 shaila@lumbercitywoodguys.com

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

Household Insurance, Motor Vehicle Insurance and Workman’s The total solution in one brand

FRANCISTOWN tel: (+267) 241 6067 fax: (+267) 241 6069 PALAPYE tel: (+267) 4922336 fax: (+267) 4922337

BOIDUS FOCUS JUNE/JULY 2015

PROFESSIONAL PRACTICE P10

Is Contractual Privity Between Employer and

Subcontractor Created in Nominated Subcontracts?

By Natalie Reyneke In our previous article we examined some of the pitfalls of back–to–back subcontracting arrangements. In this article we will examine contractual privity that may or may not be created between the employer and a nominated subcontractor.

a non-performing nominated subcontractor.

The English cases are discussed below: NORTH WEST METROPOLITAN REGIONAL HOSPITAL BOARD V BICKERTON

While there is no obvious contractual privity, as between the subcontractor and the employer, both the proper execution of the work and payment are normally made dependent, in the typical standard form of subcontract, upon approval by the engineer under the main contract, and upon payment by the employer to the main contractor under the terms of the main contract.

What is the effect on the usual provision in such contracts of a provision in the main contract giving the employer the right to make payment for work done directly to the subcontractor in certain defined circumstances? Such provisions are usual in nominated subcontracts. Do provisions such as this not create some contractual privity as between the employer and the subcontractor, at least as regards rights to payment and consequently as regards as well?

In theory, nomination of subcontractor provides the employer with the advantage of choosing his own specialist contractor and agreeing a price and the terms of contract with him. Many of the standard forms currently used in Southern Africa contain provisions allowing an employer to appoint a nominated subcontractor and then obliging a contractor to employ such nominated subcontractor at his own risk.

There are a string of English decisions which offer an interesting insight into how the appointment of nominated subcontractors may attract risk to employers. Facts similar to the below cases have not yet, to the best of our knowledge, come before the courts in South Africa, nor in Botswana. This has not, however, deterred contractors from attempting to use these decisions to sway the courts to find that they are absolved of liability in the case of

In this case the nominated sub-contractor was insolvent and went into liquidation before starting work on site. The liquidator did not affirm the contract. The contractor asked for a variation order nominating a further sub-contractor, but the employer refused. Instead, the employer asked the contractor to complete the works, which the contractor agreed to do without prejudice to his contractual rights. The contractor then brought a claim for additional costs.

The Court of Appeal held that the employer was bound to make a second nomination, and as the employer had failed to do that the contractor’s claim was valid.

The House of Lords dismissed the appeal. The contractor did not have the right nor the duty to carry out the nominated subcontractor’s work as the whole purpose of the contractual provisions were that the work would be carried out by a nominated sub-contractor designated by the employer. If, therefore, the original nominated sub-contractor “dropped out” there was an implied duty on the employer to make a further nomination.

As a result the contractor was entitled to recover money in respect of further work that he had done on the basis of quantum meruit.

This decision indicates that it is a breach of contract for an employer to fail to re-nominate a nominated subcontractor in the first place, or re-nominate them as appropriate and such actions impede the execution of the contractor’s own work.

PERCY BILTON LTD V GREATER LONDON COUNCIL

In this case a nominated sub-contractor went into liquidation during the course of the works. The ar-

chitect knew that he needed to re-nominate, but there was some delay in re-nomination. The main contractor requested an extension of time because the replacement nominated sub-contractor could not complete the work within the original timeframe.

The House of Lords held that a distinction needed to be made between the period of time lost by the withdrawal of the first nominated sub-contractor, and then the period of time required in respect of the subsequent nominated sub-contractor. The delay caused by the original sub-contractor was not covered by the contract provisions and therefore the contractor was not entitled to any extension of time, and the time not being that large meant that the completion date remained unaffected.

However, the subsequent delay resulting from the defendant’s failure for several months to re-nominate was covered by the contract. The contractor therefore was awarded further time in respect of the replacement sub-contractor’s delay, but not the first. The result was that the contractor was liable for liquidated damages for his failure to complete as a result of the inability to obtain an extension of time in respect of the original subcontractor’s liquidation.

The sequential contract analysis is helpfully set out on page 801 of the judgment, which in summary comprises: • The general rule is that the main contractor must complete the work by the date for completion. If he does not he is liable for liquidated damages; • The exception to the payment of liquidated damages is if the employer prevents the main contractor from completing his work; • The general rules may be amended by the express terms of the contract; • The contract in question amended the general rules; • Withdrawal of a nominated sub-contract was not caused by the fault of the employer nor covered

by the provisions of the contract; • Therefore, a nominated sub-contractor withdrawal falls under the general rule and the main contactor takes the risk; • However, delay by the employer in re-nominating was an express term within the contract entitling the main contactor to an extension of time.

RHUDDLAN BOROUGH COUNCIL V FAIRCLOUGH BUILDING LTD

In this case, the employment of the nominated subcontractor Gunite was determined by the main contractor. The architect issued a re-nomination requiring the work to be completed by Mulcaster.

Gunite had been paid for work which was subsequently condemned. In a subsequent certificate the amount certified for the work carried out by Gunite was reduced. By that time Gunite was insolvent. It was held that the employer was entitled to be credited with the reduced value of work carried out by Gunite. The loss, therefore, fell upon the main contractor.

The traditional classification of the subcontract as a separate contractual arrangement between the contractor and the subcontractor precludes the subcontractor from acquiring any rights under the main contract. The problem here again may be that the traditional contractual model is inadequate to cope with the complex type of contractual relationship which the modern form of subcontracting really needs to make it work properly as a legal phenomenon in the construction industry.

Contractors usually require the assistance of subcontractors to complete large construction projects. Standard form contracts usually require that the contractor be responsible for its subcontractors. These provisions usually apply to nominated subcontractors as well, an area of construction contracts which can be highly contentious.

Contractors need to be aware that they may find themselve liable for losses caused by nominated subcontractors which were not envisaged when the contracts were negotiated and entered into.

Perhaps the only way to save contractors from this fate would be to include any acts or omissions by the nominated subcontractor as an employer’s risk; however this would fundamentally change the risk profiles in the standard form contracts.

MDA Abdulla Consulting (PTY) Ltd’s individually tailored professional services cut across all contractual and commercial aspects of construction, engineering and mining projects and include specific competencies in:

Project Commercial Structuring Training Commercial and Contractual Administration Claims Management Consulting Dispute Resolution Construction Adjudication Innovative solutions and services to the construction, engineering and mining industries

OIDUS FOCUS Registered at GPO as a Newspaper | P8.00 (Including VAT)

OIDUS FO CUS

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

www.boidus.co.bw

NEWS | page 02

EDITORIAL | page 04

Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant

Intro Government to Promote IntroHow ready is Botswana for duction of Residential DevelopDevelop the Inevitable Change towards BOIDUS FEATURE > Decarbonisation targets? ment into the CBD Global

| Volume 4, Issue 7 | AUGUST 2014

Education Feature: 15 Botho University Builds Francistown Campus

Factors to Consider 18 When Establishing Sector Regulation

EDUCATION | pages 15

SUSTAINABILITY | page 06

www.boidus.co.bw

Guide to School Programmes: 2013 Built Environment Careers Guide

Meet three of Botswana’s best

BOIDUS EXCLUSIVE >

OIDUS FO CUS

BOIDUS EXCLUSIVE >

by Kibo Ngowi Bringing together key CBD stakeholders such as landowners and develop ers to engage on issues that affect their developments and investment

NEWS | page 02

BUILDINGS | page 06

A Luta Continua on the Land Question Airport Roof Gone with the Wind

The Idea of Eco Cities: Need for harmony between policy and green initiatives

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

departments with ambitions of creating similar entities. Boidus Focus met

company established to commercially exploit the real estate assets of

with BR Properties Managing Director Oarabile Zhikhwa to explore the brief

The performance of this company will serve as a test case for many other

organisation.

a Botswana Government enterprise.

history and long-term ambitions of her >>> CONTINUED PAGE 05

“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

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

The Boidus Media, State of our CitiesCBD Executive Seminar recently held

and the public in sharing of ideas and opportunities about our upcoming

at Masa Centre was by any measure a resounding success. The Seminar

CBD. Envisaged as the future heart of Gaborone City, the CBD is slowly taktak

event brought together for the first time ever in Botswana, key stakehold-

ing shape and the seminar sought to make it a centre stage focus of discusdiscus

ers of the New CBD development such as investors, development own-

sions and professional deliberations.

In this Boidus Focus Special, find event abstracts:

ers, government, industry champions

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

by Boidus Admin

A Successful CBD represents among other things; • A success CBD Image of the city and the country Felix Chavaphi Portfolio • Generation of the country’s prosperity • Successful partnership between the Government & PVT[TOP] sector University of Botswana Library Dimitri Kokinos: Portfolio Structuring Manager (Stanlib) million with Murray & Roberts

at a cost of P54

[BOTTOM] Gaborone Taxi Rank Shopping Complex >>> CONTINUED PAGES 08, 13, 18 Plot 7 at a cost of P2million with Murray & Roberts

“In this line of work you need to put your yourself in a position where you have interest and ownership of the projects you’re dealing with because structural engineering is a sensitive field in that we are dealing with peoples’ safety. We are putting up structures which are going to house lives so you can’t approach this profession as simply a job. You have to see it as a responsibility and a privilege.”

- Tapa Moseki

>>> CONTINUED PAGE 04

>>> CONTINUED PAGES 03, 04, & 06

FIND CREATIVE

TO COMMERCIAL

ANSWERS QUESTIONS. Renowned experts in branding, business and marketing.

GABORONE tel:3951001 fax:3951003

FRANCISTOWN tel:2412301 fax:2412308

PALAPYE tel:4920300 fax:4920721

KASANE tel:6250124 fax:6250528

Disentangling the Web – A Look at Infrastructure Project Management

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 Central Business District (CBD). Located in plot 54362, the Head Office called First Place, boasts the banks’ “one-stopshop” capability. With an expansion of

LEFT: Felix Chavaphi, MIDDLE: Tapa Moseki, RIGHT: Matlhodi Keaikitse

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.

QUALITY PRODUCTS AND SERVICE FOR OVER 116 YEARS

PRACTICE | pages 14, 18

Buy or Build a new Home: The Pros and Cons

BOIDUS EXCLUSIVE >

by Kibo Ngowi & HK Mokwete

>>> CONTINUED PAGE 07

suppliers of building materials, hardware, industrial supplies & machinery

HOUSING | page 16

P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >

“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”

by Kibo Ngowi & HK Mokwete

by Kibo Ngowi / H. Killion Mokwete

win

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

Botswana’s Architecture design & Urban Landscape Newspaper | M A R C H 2 0 1 3

P8.00 (Including VAT)

Event Feature: State of our CitiesBDC FAIRSCAPE PRECINCT, The rising engineers 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 EXCLUSIVE FEATURE >

the office facilities accommodating all the Bank’s divisions such as Electronic Banking, Private Banking, Property Finance, WesBank, Firstcard to mention 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

Office of the President

Sebina

As an architect, the opportunity to

design a building offers, not only the creation of a physical expression of the building itself, but also the possibility for architecture to mould the life and memories of its inhabitants. Therefore, one could argue that architecture should be thought of as being alive as

opposed to the way it is usually viewed, views from across the City. Boidus

as being static. There is no other was buildrecently given exclusive tour of the construction site to experience ing typology that embodies such a nofirst hand tion of architecture than the house, the this exciting project as it most basic and primal form of shelter for human beings.

>>> CONTINUED PAGES 08, 13

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 million for the purposes of augment augmenting funds to either- acquire or build a new office block to house the Office of

the President (OP) is missing the bigger picture of what should be debated when procuring the office space for the ‘Highest Office in the Land.’ >>> CONTINUED PAGE 04

>>> CONTINUED PAGE 14

P500

(FOR BOTH DAYS)

June 21-22

University of Botswana

P300

>>> CONTINUED PAGES 04, 08

student price for both days

*PRICE PER DAY FOR INDIVIDUALS OR PAY P500 FOR BOTH DAYS. FOR INDIVIDUAL AND CORPORATE TICKETS CONTACT +267 72 49 51 71

SUBSCRIBE NOW

To get your copy delivered to your door, send your details to:

+267 3182209 +267 73805898 mail@boidus.co.bw

Boidus Media

Subscribe to Boidus Focus Newspaper for 2 years at P 360 and recieve 1 copy every month. You stand a chance to win a Garmin GPS NUVI 42 worth P 1 300 from Haskins.

BOIDUS FOCUS june/JULY HOME IMPROVEMENT P10 2015

home improvement P11 BOIDUS FOCUS JUNE 2015

DIY Projects - How to Repair a Leaky Spigot A dripping faucet quickly adds up to substantial costs on your water bill. Here's how to repair an outdoor spigot that has a leak due to a faulty stem.

4. Seal the New Joint

Use solder and a propane torch to seal – or “sweat” – the new joint. Use the tip of the flame to heat the joint – not the solder – to achieve the best adhesion (pictured).

[Source: www.diynetwork.com]

Tools • • • • •

hacksaw sandpaper propane torch safety glasses pipe cutter

5. Insert New Pipe Into the Wall

Materials

• • • •

Sponsored by Sponsored by

tinning flux solder replacement stem copper pipe

3. Insert New Pipe Into Fitting

Brush a coating of tinning flux to the outside of the end of the pipe inside the fitting (pictured).

Tinning flux improves the adhering capabilities of solder. Insert the end of the new pipe into the new fitting.

Once the connection has been completely sealed with solder, allow it to cool, and feed the end of the new pipe through the hole in the wall (pictured). Once the pipe has been fed through the hole, and the new fitting is flush against the wall, cut off the excess pipe on the back side of the wall using the pipe cutter.

7. Solder the Pipe in Place

Cut the appropriate length of pipe. Rough up the pipe ends, apply tinning flux, and solder the new length of copper pipe in place at the coupling as well as the new 90-degree fitting to complete the connection (pictured).

1. Remove the faucet

First, turn off the main water supply to your home. Inspect the stem on the old spigot closely so that you can purchase a comparable replacement at your home center.

Locate the pipe that feeds the faucet from backside of the wall. Use a hacksaw to cut pipe at the bend, just on the other side of wall from the faucet (pictured), allowing faucet assembly to be removed.

2. Cut off the Corroded Pipe

the the the the

Use a pipe-cutter to cut off the length of copper supply-pipe that has become corroded (pictured). Use medium-grit sandpaper to rough up the ends of the replacement copper-pipe, and inside the new faucet fitting.

6. Install Fitting Onto Pipe

Using the same soldering technique, install a 90-degree fitting onto the pipe (pictured). Take a measurement from the new fitting to the end of the supply-line pipe to determine the length of new copper pipe that you’ll need.

8. Turn the Water Back on

Once the solder-seals have all cooled, and the connections been double-checked, turn the water main back on and check the new faucet for proper operation. You may want to apply a bead of caulk around the outer edge of the new connection to prevent water from leaking through the opening in the wall.

BOIDUS FOCUS june/JULY 2015

GUEST COLUMNIST P12

The Foreclosure Process

By Akheel Jinabhai

Once a mortgage bond is granted by the creditor, there is usually a foreclosure clause in the agreement to protect the interest of the creditor. The foreclosure clause is mainly to ensure that the creditor does not lose the money that has been advanced and allows the creditor to call up the security that has been offered in the mortgage bond.

Brief Introduction to the Foreclosure Clause The two key clauses in any mortgage agreement are the foreclosure clause and the acceleration clause. These clauses – usually combined in one clause – entail the strongest entitlement of the mortgagee, namely the right to call up the bond or claim foreclosure thereof.

Here is an example of a typical clause to this effect in a mortgage agreement, as quoted in NDB v Gobuamang 2007(3) BLR 421 (HC): “In the event of the mortgagor failing to pay any amount due in terms of the bond or committing a breach of any other provision of the bond, then all amounts whatsoever owing to the mortgagee by the mortgagor should forthwith be payable in full, notwithstanding the exercise by mortgagor of any other rights granted in terms of the bond, and the mortgagee might institute proceedings for the recovery thereof and for an order declaring the mortgaged property executable.”

The court also held that as soon as the mortgage is foreclosed, the mortgagee is entitled to a court order declaring the property executable. If this were not the case, it would lead to absurd consequences, since the mortgagee would have a right but no remedy, something that, according to the court, cannot be correct.

The legal consequences and nature of a mortgage are that once the property becomes executable the immovable property is hypothecated (pledged by law to a specific purpose) and the mortgagee can claim the real right afforded it by the mortgage and sell the hypothecated property, in the event of the mortgagor's default. An implied right like this can arise by operation of law (in terms of the nature of a mortgage) or as a result of the parties' intention. The court has over time mentioned that the logic behind this approach is that the payment of the debt is irrevocably bound to the mortgage, seeing that the mortgage secures the debt.

The mortgagee’s right to have the property sold in execution follows automatically from its act of calling up the mortgage and that this right is only qualified by the rule that a court must authorise the sale.

Upon Triggering the Foreclosure Clause The mortgagee has no inherent right to sell the property privately but has to employ the available mechanisms of the law, since a parate executie clause and a pactum commissorium, which grants the mortgagee the right to circumvent the court's intervention, are both invalid. The pactum commissorium is a clause in terms of which the mortgagee automatically becomes owner of the hypothecated property upon the mortgagor’s default. The clause permitting parate executie is a clause in terms of which the mortgagee may effect a private sale of the hypothecated property without first obtaining the court's permission.

These clauses are unlawful because they permit the mortgagee to take the law into its own hands by bypassing judicial oversight: The Court, in the case of Tswaing v Van Schalkwyk 1979-80 BLR 149, adopted the principle which states that clauses that amount to a pactum com-

cludes court applications, obtaining of a judgment order and an order declaring the property executable, obtaining a writ of execution, the attachment of the property by the sheriff, and the auction.

missorium are an illegality. Now, the authorities are unanimous that while this species of pact is allowed in sale, it is illegal in pledge as being unduly oppressive to debtors.

The same position was alluded to and amplified in the case of Molome v Quick Cash 2001 (2) BLR 93.

Justice Marumo noted that pactum commissorium was illegal, but when commenting on the legality of parate executie, stated that, “In the case of a pledge for movables, such a clause is valid and is enforceable against the pledgor.”

Procedure for enforcing the foreclosure clause The mortgagee shall first make an application to court seeking that the property be executable.

The sale in execution process entails all the procedural aspects, requirements and so forth, leading towards and culminating in a public auction. It in-

The primary circumstance under which the mortgagee can have the property sold is when the mortgagor defaults on his or her loan repayment instalments. The mortgagee’s cause of action is consequently based on the mortgagor’s breach of contract.

After obtaining a judgment in its favour, the judgment creditor can enforce the judgment by the process called execution. A judgment is a prerequisite for sale in execution and the mortgagee consequently has to prove the debt owed to it by the mortgagor. There are three requirements or steps before it can be said that execution has been levied: The granting of a valid writ of execution; the attachment of the debtor’s property (unless he or she pays the amount of the writ plus costs); and a sale by public auction of the attached property.

Writ of Execution; Attachment by Sheriff A writ of execution is a document, requested by the party in whose favour any judgment of the court had been pronounced, issued by the Registrar of the High Court, directed to the Deputy Sheriff, ordering him or her to take possession of as much of the debtor’s property as will realise by public sale the amount of the judgment and the costs incurred in satisfying it.

The sale in execution and various matters incidental to or consequential upon it are conducted by the Deputy Sheriff. Upon attachment, the possession, custody and control of the property pass into the hands of the Deputy Sheriff who executes the writ of execution. Consequently, after attachment, the mortgagee is not in control of the property.

Although in theory the Deputy Sheriff is in control of the attached property, in reality the mortgagor often remains in control until the auction and after he or she abandons possession voluntarily or is evicted.

Continues page 13

BOIDUS FOCUS JUNE/JULY 2015

GUEST COLUMNISTS P13

Foreclosure Process

Continued from PAGE 12 Even though the normal sequence of execution is to first execute against movables and thereafter against immovables, the court has the power to alter this sequence, as is most often the case with mortgages.

PUBLIC AUCTION The Deputy Sheriff must appoint a day and place for the sale of the property. Following attachment, it is necessary to prepare the conditions of sale and the notice of sale and to advertise the sale. The primary purpose of giving notice of the sale is to inform the public of what is being sold in order to attract bidders so as to realise as high a price as possible for the property. Obtaining as high a price as possible is important if justice is to be served towards both the mortgagee and mortgagor. Justice requires that the mortgagee’s claim be satisfied and that the mortgagor’s debt is repaid, hopefully leaving a surplus large enough to start over with. The sale in execution must take place in the district in which the attached property is situated and must be conducted by the Deputy Sheriff of that district. The property must be sold by way of public auction and the sale is subject to the real rights of third parties in the property unless those persons agree otherwise.

The auction takes place under the authority of the Court. Therefore, when ownership is acquired over property bought at auction, it occurs under the auspices of the law and is authorised and guaranteed by the public authorities.

A sale by public auction without reserve is completed and a valid agreement of sale comes into being at the fall of the hammer, on the terms and conditions set out in the conditions of sale that are displayed, pronounced or read out by the auctioneer. The sale is complete when the final bid is accepted by the Deputy Sheriff and at this point his or her authority to further sell the property ceases. The conditions of sale are signed to record and have certainty over the oral contract and its content, as concluded by the auction sale, and to ensure that the auctioneer and the purchaser were bound thereto by reason of their signature.

Unless a preferent creditor stipulates a reserve price, the sale is without reserve and the property must be sold to the highest bidder. This leaves the Deputy Sheriff with no discretion other than to accept the highest bid. If the reserve price is not reached, there is no sale, unless the interested parties concur to allow the property to be sold to the highest bidder. Alternatively, where the reserve price has not been reached, the court can order the property to be put up for sale again without reserve. When the Deputy Sheriff disposes of property by way of sale in execution, he or she acts as an executive of the law and not as an agent of any person. As part of the execution process, when the Deputy Sheriff commits him or herself to the conditions of sale, he or she does so in his or her own name according to his or her statutory authority and may also enforce it as such. This power is implicit in the duty to pass transfer in terms of the court rules,

which oblige the Deputy Sheriff to do anything necessary to register the transfer. In other words, the sale in execution of immovables consists of two distinct transactions, namely the sale itself and the transfer of the property. In transferring the property the Deputy Sheriff acts not as principal but as statutory agent of the judgment debtor.

Once sold in execution, the property may be transferred by the Deputy Sheriff free of all bonds. The sheriff must give transfer to the purchaser against payment of the purchase price and upon performance of the conditions of sale, and may for that purpose do anything necessary to effect registration of transfer.

Furthermore, anything so done by the Deputy Sheriff is as valid and effectual as if he or she was the owner of the property. Ownership of the attached immovable property does not pass upon the sale in execution but only upon formal transfer by the Deputy Sheriff to the purchaser in execution.

At the sale, a contract comes into existence between the Deputy Sheriff and the purchaser. Neither the judgment creditor, nor the judgment debtor is a party to this contract. The obligation to deliver the property to the purchaser remains the obligation of the Deputy Sheriff. The purchaser’s obligation to pay the price remains enforceable by the Deputy Sheriff and not the judgment creditor. The purchase price must be paid to the Deputy Sheriff, who immediately pays it into the account of the relevant court, where it is kept until transfer to the purchaser has been completed.

After the costs and charges of execution have been subtracted from the proceeds, the claims of preferent creditors (ranking in priority according to their legal order of preference) will be satisfied.

At the end of the execution proceedings, after the proceeds had been paid over to the Deputy Sheriff (or mortgagee) the limited real right of mortgage is extinguished. This is a consequence of the principle that the mortgage is accessory to the principal debt.

It is not necessary for the property to be transferred to the new owner first, because the mortgage comes to an end as soon as the debt is extinguished. However, even if the proceeds are not enough to cover the debt, the mortgage is still extinguished upon transfer of the proceeds to the mortgagee. For the remaining debt, the mortgagee only has a concurrent claim. If the property is sold in execution for more than the value of the outstanding debt, the surplus must be handed over to the mortgagor. This is in accordance with the general principle that the creditor may not be enriched by the security transaction. The sole purpose of the real security right is to secure payment of the principal debt and not to enrich the mortgagee.

The above is meant only as a brief introduction to the foreclosure 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

LESSONS FROM THE BHC CONFERENCE ON AFFORDABLE SUSTAINABLE HOUSING Control Act is required and it must be centralised to monitor credit rating for the bankable quarter of the population, in order to reduce risks to banks and simultaneously shorten times needed for individual mortgages to be approved and processed.

Continued from PAGE 9

reducing emissions in the construction sector, then change can indeed occur.

The lessons from the BHC Housing Conference resonate with the discussions of COP 17. Coincidentally, the first COP in Africa in 2011; the first World Green Building Convention in Africa in Cape Town, South Africa in 2013; the first Botswana Energy Conference in Gaborone in 2014; and now the first BHC Housing Conference in Botswana in 2015 all have one thing in common – “Sustainability”. Sustainability is a matter we should all work hard to pursue in order to find lasting solutions to our modern and future challenges.

The speakers and panellists lined up at the BHC housing conference dwelled for the most part on the issue of affordability.

Whether it was by design or by lack thereof that sustainability was not equally explored in depth, it still remains a crucial element in the equation. However, findings on the subject from various speakers went as far as charting a new course through which ideas could be shared as to how we can tackle our current challenges with regards to the subject matter.

One panel discussion sought to answer the question of affordable housing through the lens of financiers who are also a critical stakeholder in the value chain of sustainable affordable accommodation. It revealed that only around 600 000 Batswana are bankable. This is not to say they are eligible to financing for home ownership. Most people in this group have opted for renting over buying property simply because the market price for a low income house is P500, 000.

This is not affordable for the majority of this bankable group.

One worrying fact is that for most, securing an auto loan is easy compared to when seeking finance for property. There is a serious need for all stakeholders to re-look at the policies and other instruments to ease off the delays. A Credit

LET US ENSURE THAT YOUR VISION IS WELL PROTECTED AND MEMORABLE. Sustaining and Supporting Botswana’s Growth: 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

The input from the CEOs of the Housing Associations of Namibia, Lesotho and Swaziland who were invited also weighed in to share their experiences and challenges from their respective countries. Their experience, collectively, is not dissimilar to ours.

The stage has now been set. And on it, we will work on finding the answers. Another conference seems inevitable though to confront these issues further and map the way forward. The lack of time for the presentations and Question and Answer sessions and at the conference meant that there is a lot that needs to be discussed, and a whole lot more of people who need to be part of this discussion, from the private sector, government, parastatal organisations and academia. Academia was not evidently present and their role in educating a future generations is vital.

Finally sustainable affordable housing may have been on centre stage, but at the very core, it is about finding solutions to the challenges of the 21st Century which are common to all, and are as vast as they are related. These, therefore cannot be detached from one another, and in solving one challenge, it is essential to think about all challenges. Drought, global warming, housing, unemployment, poverty, resource scarcity, energy and water shortages, food security and many more are here for everyone to face. However big the challenges may be, even the smallest of contributions towards solving them is necessary, and will go far in making a difference.

At the opening of the Housing conference, the motivational speaker, Moshe Seloko, shared a quote from Albert Einstein: “We cannot solve our problems with the same thinking we used when we created them.” This was a call to all to acknowledge that it requires the right mindset to win a marathon.

Olegona Chibua is an architect at BHC and is writing in his personal capacity.

BOIDUS FOCUS JUNE/JULY 2015

INTERIOR DESIGN P14

Design Pad:

Furniture Restoration

& Repurposing

By Tshepiso Motlogelwa, Interior Designer- tsmotlogelwa@gmail.com It can be tempting to try and restore a piece of furniture yourself, but there are certain home projects that should be left to trade professionals. Truth be told, home project do-it-yourselfers, from novices to veterans, simply don’t have the same level of resources as trade professionals, be it training, technical skill, tools or an intuitive eye.

SoulBeat Interiors Managing Director Agripa Mbulawa gives us some insight on furniture restoration.

BF: What furniture items can be restored or repurposed?

PAINT OR STAIN? Once you’ve decided to refinish your furniture, you’ll need to decide what kind of finish you want on it. Whether you paint or stain your piece depends on the look you’re going for.

be able to find something durable enough for your needs.

If your project is made of a thin wood veneer over plywood that will not take much sanding, or if the surface has sustained heavy damage and chipping and needs to be repaired with wood filler, then painting may be your best option, as paint covers over a multitude of sins.

CONSIDER THE USE One thing to keep in mind is that a painted surface can be more vulnerable to chipping and heat damage (i.e. bubbling from setting a hot bowl on the surface) than stained and sealed surfaces, which is something to consider when refinishing a high-traffic piece.

AM: Over time, furniture and wood surfaces can become scratched or suffer structural, joint instability and loss of tension in springs. Water rings, burns, stains and other damage are also common. SoulBeat Interiors offers furniture repairs and upholstery as a convenient alternative to costly furniture replacement.

TWINCO ENTERPRISES (PTY) LTD.

Master

BF: To what extent of wear and tear can a fur-

Joinery & Aluminium

niture item be eligible for restoration? Are there old furniture items that can be deemed to be beyond repair?

AM: There is no state that can deem a piece of furniture irreparable. From minor wear and tear to the worst state of damage, any piece can be restored to its original or even better state.

That being said, there is such a huge variety of paint finishes available — from hard, oil-based enamels to standard latex — that you will likely

We manufacture, supply, and fit to meet your demands on all types of Joinery and Aluminium products.

BF: Why should a customer restore instead of buying a new furniture item?

Our high tech computerized machines enables us to manufacture locally

AM: Most of the time people replace their fur-

[moulding machine, cutting machine, wrap oven, drilling machine]

niture, not because they no longer love their set, but because they are unaware that they can remodel or refurbish the existing piece for which they have sentimental attachment. Most of all, people do not know that they can save up to 50% expenditure on furniture by simply restoring or upholstering their pieces instead of replacing them.

WHEN NOT TO REFINISH WOOD FURNITURE SKIP FOIL-LAMINATED MDF Some ‘wood’ furniture from the last three or four decades might look like wood, but is actually made of particleboard, MDF, or veneer over plywood. If it’s a cheap mass-manufactured piece made of particleboard or MDF with a foil or laminate finish, don’t bother refinishing, as it won’t be worth your time, and even paint won’t adhere well to the smooth, plastic-like surface.

Hand crafted wooden doors and panels

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

BOIDUS FOCUS june/JULY 2015

FEATURE / GUEST COLUMNISTS P15

Artists’ Managers: Is It Really Management?

ARC Registration of Architects should be available to anyone who wants to apply a month before the registration process begins.”

By Kabelo Rapinyana

Much like everything else in business, be it cooperate, industrial or manual, the role of management is an ever-evolving one. In the olden days, the role of a music artist’s manager was limited to signing the artist to a contract, booking events for the artist to perform in front of large crowds, and promoting that artist’s music as much as possible. The manager was little more than a liaison between the powerful record labels and performance venue owners. Now the game has changed from a simple middleman role to a layered and complex business model.

Today, in Botswana’s vibrant and accelerated arts scene, where words like royalties, contracts, and copyright are becoming the norm, the manager’s responsibilities have expanded.

The manager now has to be concerned about building a brand and developing a business model that will outlive the one-take shows.

All artists’ managers must value their artists as something for which brand equity needs to be developed. Further, they need to leverage that equity and establish strategic partnerships that ensure maximum visibility for the artist and thus create direct sustainable revenue streams. In our overly simplistic artist management model the norm for a manager is to: write a proposal; get a sponsor; put on a show; and then wait for the next sponsor. All those hours spent writing proposals and delivering

presentations at corporate offices should be spent developing a strong business model that can sustain the artist going forward.

The problem that has plagued Botswana’s art industry for far too long is that most artists’ managers are unprepared to do business.

Most of them are not trained managers but rather a friend or even a relative of the artist or simply someone with an interest in the arts.

So, through no fault of their own, they will wander aimlessly in a market that punishes inexperience harshly. Thus, most will fail before they even start, but there are some who will take the time to learn business fundamentals and change the game. Even as an independent artist the fundamentals of doing business need to live in you; the transition from a onetime act to a formidable brand with excess revenue streams needs sharp business skills and a well-devised business model.

Certainly the above is quite generalised, but many successful artists’ managers have thought of these principles and put them into practice to great effect. My advice to potential artists’ managers with no business skills: pick up a book; search the internet; make a call; and start learning how to add brand equity to your next artist.

So let’s go get educated and inspired and start building something of marketable value.

Continued from p6 On the issue of liability insurance, Manowe mentions that the ARC also wants to add a provision to the regulations that regulates the proportion between the amount of insurance cover and the value of work being done. “People can have a cover of half a million Pula when they are doing projects of up to P600 million,” says Manowe.

“There is no relationship between the professional indemnity cover and the value of the work being done. We want to establish a relationship that is reasonable so we don’t overexpose the client to that kind of risk.”

I put it to Manowe that completing the registration process for architects in a space of five months would seem rather ambitious when engineers took longer than a year to complete their registration process and he responds that the architects have been preparing for it for years.

“For years we have been compiling what South Africans call a fact file which contains all the information one needs to apply to be registered in Botswana. We’ve developed it specifically for the Council and it will make the process of registration easier for everyone. It’s at the draft stage and

Manowe does concede that there are things that the ARC wants to adopt from the engineers such as the use of a computerised database. In fact, he goes on to add that there are plans for the regulators of architects, engineers and quantity surveyors to meet as a group and find out what is common between the three professions such that the provisions in their regulations are similar for the benefit of consumers.

The discussions, on the registration regulations, between the ARC and government that began in 2010 are nearing the finish line. Manowe says they have reached a stage where they are submitting the final corrections of the draft regulations.

They currently have the second draft from the AG’s chambers and are in the process of looking at it and submitting comments. These regulations have to be in place by the time the registration process starts later this year.

As a parting shot, Manowe warns the public to begin taking greater care in which architects they engage: “I would advise the public to use the available mechanisms to ensure the architects they engage are properly qualified such as visiting the Architects Association of Botswana (AAB).

Because the last thing you want is for you to have a major project and come December you’re being told that these people should have never touched your project. So exercise caution and if necessary seek advice from the AAB on which firms can provide quality service.”

Professional Indemnity Insurance – The Importance of Having Adequate Insurance Cover

By Nokuthaba Mtunzie In the past few years we have seen a rise in the number of professional indemnity (PI) insurance claims against practitioners in various professions such as Consulting Engineering, Architects, Quantity Surveyors and Project managers.

Professional indemnity is a form of liability insurance which helps protect an organisation from the financial effects of negligent acts, errors or omissions that are made whilst carrying out their professional duties.

These professional organisations should consider purchasing as high a limit of indemnity as they can possibly afford in order to ensure that any future claim does not have a detrimental effect on their cash flow or even cause the closure of the operation. There is no set formula for calculating the limit of liability that should be purchased, however certain factors can be considered when endeavouring to determine how much cover to

effect. These include the number and nature of projects together with their value. Obviously the larger the amount of work handled and the higher the value of the projects the greater the chances of incurring a claim and the greater the value.

The limit of indemnity under a PI policy is inclusive of costs and expenses in addition to the amount of any award that may be made against an organisation. Therefore low limits of indemnity tend to be exhausted by legal expenses before any award can be paid. In these instances any further expenses or award(s) are for the insured’s own account!

It also should be noted that professional indemnity limits are normally “any one loss and in the annual aggregate” rather than general liability covers which are “any one loss.” This means that cover under a PI policy of P 1,000,000 would be-

come exhausted following two P 500,000 claims assuming there is no reinstatement provision.

This aspect needs to be considered when considering indemnity limits.

Consider the following example of a claim: A consulting engineer negligently specifies the incorrect mode of construction for a building which is subsequently damaged by wind during erection. The loss was P 17,000,000 and the insurance cover was P 1,000,000. The insurance company honoured the claim and paid P 1,000,000. This left the consulting engineer with an outstanding debt of P 16,000,000. Most organisations would not survive and the partners would undoubtedly have to sell off their personal assets to cover all or part of their liability.

It is for this reason that principals when engaging the services of a professional should insist on adequate levels of professional indemnity cover

that are commensurate with the nature and size of the anticipated project.

Doubling the limit of indemnity does not necessarily double the cost of insurance and it is therefore advisable to obtain a variety of options when obtaining quotations. Consideration should be given to the limit of indemnity as well as the amount of any deductible or first amount payable that is to be carried by the organisation. The higher the deductible is, the lower the cost.

My advice is therefore to purchase as much professional indemnity insurance as the organisation can economically afford which in return will provide you with peace of mind that comes from knowing that in the event of an insured claim occurring, there is adequate cover in place.

Nokuthaba Mtunzie is an Underwriting Specialised Lines Manager at BIC

BOIDUS FOCUS june/JULY 2015

ADVERTISING P16

BOTSWANA QUALIFICATIONS AUTHORITY CONFERS UNIVERSITY STATUS TO BA ISAGO UNIVERSITY COLLEGE ON 2ND JUNE 2015

GABORONE, FRANCISTOWN & MAUN CAMPUS

31st July 2015

July

Intake GABORONE CAMPUS Plot 54831, Block 7, Corner of Western Bypass (Motsete Road and Mogoditshane Road), Gaborone Email: gaborone.campus@baisago.co.bw Tel.: (+267) 3957744 • Fax: (+267) 3957709

MAUN CAMPUS Plot 394, Mabudutsana Ward, corner of Moremi 3 Road and Mogalakwe Road, Maun Email: maun.campus@baisago.co.bw Tel.: (+267) 6867021 • Fax: (+267) 6867021

Growing with Quality

12

R

13

P 1 A

R

A - 31 M

FRANCISTOWN CAMPUS Haskins Building, Plot 1602/3, Off Sam Nujoma Road, Light Industrial Site, Francistown Email: francistown.campus@baisago.co.bw Tel.: (+267) 2418780 • Fax: (+267) 2418778

BOIDUS FOCUS JUNE/JULY 2015

INTERNATIONAL NEWS P17

Africa’s Growth Cities Attract Increased Foreign Real Estate Investment crease in activity involving overseas investors and South African funds over the last two years.

Chinese investors’ involvement in large-scale development and infrastructure projects across Africa has been particularly eye-catching. However, the Knight Frank report also identifies nine South African-based funds that have raised significant volumes of capital to invest in real estate projects across the Sub-Saharan region. These investors will develop a wave of modern investable assets that will do much to improve the size and maturity of African property investment markets over the next few years.

ESCOM building (left) in Luanda, tallest building in the city and first of four towers which make up the Sky Center condominium

Increased numbers of international investors are investigating opportunities in African real estate markets, attracted by the continent’s startling economic and demographic growth prospects.

According to Knight Frank, which published its Africa Report 2015 last month, the population of Africa will quadruple to over four billion by 2100, with nearly one billion of these people in Nigeria alone. This is arguably the single most important demographic trend that will shape the world over the course of this century.

HIGHLIGHTS: * By 2100 nearly 40% of the world’s population will live in Africa, and by with the large majority of these being in the continent’s fastgrowing cities * Nigeria is now the largest economy in Africa; with GDP estimated at $594.3bn, followed by South Africa ($341.2bn) * Sub-Saharan Africa is one of the world’s most rapidly developing economic regions, and it is projected that 13 of 20 fastest-growing global economies over the next five years will be in Africa * Luanda in Angola has one of the highest prime office rents in the world at US$150 per sq m per month, driven by demand from the oil and gas sector, and an extreme lack of availability GROWTH STORY The largest cities of Sub-Saharan Africa are growing at a rapid pace; Luanda’s population is forecast to increase by more than 70% during the 20102025 period, while Dar es Salaam, Kampala and Lusaka are expected to double. Allied to strong economic growth, this is creating increased demand for good quality real estate of all types.

The retail sector has seen a huge increase in activity as a result of the rise of the urban middle class and the expansion of South African retailers such as Shoprite and Pick n Pay into the rest of Africa. Modern shopping malls are a relatively new concept in much of Africa, but a spate of new malls has been developed in key cities such as Accra and Nairobi.

Francois Staples, Joint CEO and Co-Founder of Galetti Knight Frank, said “The growth of Africa’s cities and economies will do much to define the global socio-economic landscape over the coming decades. These major long-term trends are driving the construction of high quality real estate across the continent. The most visible demonstration of this is the rise of the modern shopping centre concept in cities such as Nairobi, Lagos and Accra, but there are development opportunities in all property sectors.

“Large volumes of good quality commercial and residential property are needed to support the continuing African growth story, presenting excellent opportunities for global funds looking to

diversify or enter into African markets.”

FOREIGN AND EXTERNAL INVESTMENT Africa’s growth potential has led to a notable in-

Tony Galetti, Joint CEO and Co-Founder of Galetti Knight Frank, commented “We have seen rising interest in Africa from an increasingly diverse range of international investors, developers and occupiers in recent years. The inflow of investment from China into Africa has been well publicised, but there is also growing activity involving

investors from elsewhere, including the rest of Asia and the Middle East. Meanwhile, an increasingly significant flow of capital has emerged from South Africa into other African markets.

“A prime example is the likes of RMB Westport who are involved in office and retail projects in Angola, Ghana and Nigeria. The South African property market has become highly competitive, and it has become increasingly difficult to achieve consistent growth due to a lack of high quality investment grade stock. As a result, property funds and institutional property owners such as Atterbury, Stanlib and Resilient are targeting the rest of the African continent for growth opportunities.”

“While many African countries remain challenging places in which to do business, there are high-growth opportunities across Africa for those able to those able to navigate their way through the markets,” concludes Staples. (Africa Property News)

BOIDUS FOCUS JUNE/JULY 2015

EDITOR’S NOTE P18

EDITORS NOTE

Architects Registration Must Hit the Ground Running

By H. Killion Mokwete, RIBA Chartered Architect

Finally, the road to professionalising architectural practice in Botswana has reached the home stretch with the on-going process of recruiting a Registrar for the Architects Registration Council. This long journey was often led astray by past incidences which saw the repeated premature termination of efforts to create a register of architects. Now that all the legal instruments to create a register of architects and regulate them in Botswana are ready, it is worth recapping why this is such an important process which is long overdue.

THE ARCHITECTS’ REGISTRATION BODY WILL HAVE TO: * Implement standards of professional conduct and practice expected of persons registered as Architects under the 2008 Act. * Take disciplinary action against any of its members found to be practicing unacceptable professional conduct or serious professional incompetence. * Ensure consumer protection, both in government and private work, and make certain that registered professionals will promote the integrity of the architecture profession.

This will mean the keeping of a register containing the names of all practicing architects in the country (including technol-

ogists and draftsmen), thereby ensuring that the consumer can confirm the credentials of any architect practicing in Botswana. This will also mean that the Council will prescribe the process of education that one has to achieve to become a registered architect in this country.

This will be sweet music to most people, as for the first time, the profession will become truly professional and therefore as professionals, we will be expected to act and be treated as such. The architect’s profession will properly become answerable to both the law of the land and the consumer. Professional standards will be set up which will inform a code of conduct that is expected of any registered member.

More importantly, the Council will be able to prosecute those claiming to be architects while not properly qualified. It is actually incredible how we made it this far with a profession where anyone can be an ‘architect’ and get away with it. This sort of thing does not happen in other professions such as medicine or law. Consumers know that they are protected by law from unscrupulous individuals practicing those professions without the appropriate skills and qualifications. The architecture profession of Botswana cannot wait any longer to count itself amongst Botswana’s regulated professions.

BOIDUS TEAM June 2015 MANAGING EDITOR

H. KILLION MOKWETE BUSINESS DEVELOPMENT

PHENYO MOTLHAGODI

STAFF WRITER

KEELETSANG DIPHEKO NGWEWABO MOKWETE

GUEST COLUMNISTS

GRAPHICS ASSISTANT

TAELO MAPHORISA SALES

DEPUTY EDITOR

KIBO NGOWI

ACCOUNTS

ART DIRECTOR

BRIDGET MACKEAN

TARA MICHELLE THERON TEBOGO SEKWENYANE JENAMO MOLATHWA

SETHEBE MANAKE ARNOLD TOMBO NATALIE REYNEKE AKHEEL JINABHAI OLEGONA CHIBUA KABELO RAPINYANA NOKUTHABA MTUNZIE TSHEPISO MOTLOGELWA

DISTRIBUTION

MARTHA ROOI

www.boidus.co.bw

OIDUS FOCUS SUBSCRIBE NOW to Botswana’s Built Environment Newspaper

To get your copy delivered to your door, send your details to:

+267 3182209 mail@boidus.co.bw

BOIDUS FOCUS JUNE/JULY 2015

ADVERTISING P19

(monthly publication, 3 copies /issue. P540 /year (exvat)

> Get Free 3D Kitchen & Bedroom Cupboard Design

Your Project Partner

Wardrobes

Doors

Wooden Flooring

Counter Tops

Cabinet Handles

Rhino Cornices & Medallions

ADVERTISING P20

BOIDUS FOCUS JUNE/JULY 2015