Infrastructure boom on Botswana’s horizon

DEVELOPMENT

|
Image: By Botswana Government
Infrastructure boom on Botswana’s horizon

New analysis from Frost & Sullivan says the need to diversify Botswana's economy and expansion of the mining sector will drive infrastructure development in the country.

As a result, the transport and energy & power sectors are expected to see the most growth over the next decade. As the majority of projects are financed by the government, and the country is heavily reliant on revenues from the diamond mining industry, the economic recession continues to be the greatest restraint for infrastructure development.

Frost & Sullivan’s report, ‘Infrastructure Tracker: Botswana's Infrastructure Sector’, finds that there will be significant growth in the transport and energy and power infrastructure sectors in Botswana. This is as a result of the government's aim to expand the mining industry and stimulate economic growth by diversifying the economy.

"The discovery of considerable coal reserves is one of the greatest drivers for the development of improved transport infrastructure, and capacity building in the energy & power sector. Botswana's Morupule B power station is currently operating at 110% capacity and the country imports 97% of its energy requirement," noted Frost & Sullivan's Environmental & Building Technologies Industry Analyst, Sarah O'Carroll.

"The government is also trying to diversify its economy, in order to decrease its reliance on the mining sector. This is also a significant contributor to investment in infrastructure."

Botswana's rail network is in desperate need of expansion. The country has a single North-South rail corridor with three small branches, connecting only two of its neighbours, Zimbabwe and South Africa. An estimated USD8.4 billion will be invested in expanding the railway network. This investment will see Botswana connected to Namibia and Mozambique through two new rail links, allowing the efficient transportation of minerals for export. It is hoped that the improved rail network will also transform Botswana into a transport hub in southern Africa, with the country facilitating trade in the Southern African Development Community (SADC).

O'Carroll stated that transport infrastructure had not been upgraded and extended since the 1980's, increasing both the cost and time to transport manufactured goods and raw materials. Poor infrastructure in these sectors has ultimately restricted the development of new industries and the expansion of existing ones.

Infrastructure development in Botswana is driven by the government. The economic recession has reduced both government revenues, due to sharply decreased diamond prices, and foreign direct investment. This has greatly restricted the government's ability to carry out new infrastructure projects.

"The construction market contracted sharply during the economic recession," explained O'Carroll. "Although the country's growth rate is above 7%, the effects of the recession still linger and investors are reluctant to invest in new infrastructure projects. Government funds have been diverted to priority sectors and many ongoing projects have been put on hold, with future projects being delayed until such time as funding becomes available. The government is now also considering public-private partnerships as a means to develop infrastructure in Botswana."

Despite the challenges facing infrastructure development, there are over 30 multi-million dollar projects ongoing in Botswana. Investment in the transport and energy & power sectors accounts for 84.7% of USD12.81 billion of infrastructure development in the country.

"The Chinese have a high success rate of winning infrastructure project tenders in the country," said O'Carroll. "Because public funds are typically used for these projects, price is a key determinant in evaluating tenders. The Chinese' ability to undercut costs gives them a key advantage in the selection process. A company's ability to complete projects timely and within budget will, therefore, be crucial to winning tenders for infrastructure development projects in Botswana."



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE DEVELOPMENT NEWS

Dimension Data, Cisco to protect rhino by tracking people

In a bid to reduce rhino poaching in South Africa, Dimension Data and Cisco will leverage technology to proactively intervene and stop people entering game reserves illegally. Read More

Global partnership launches programme to save children affected by HIV in Lesotho

Mobile technology will be harnessed to help Lesotho combat the impact of HIV in a new global partnership programme. Read More

Rockefeller Foundation funds nonprofit bringing online business course to Africa

In May, the Center for Global Enterprise (CGE) will offer a unique online course designed to provide practical management expertise in emerging platform business models opening up new opportunities across Africa and the global economy. Read More

Ethiopia gearing up to transform education through technology

Microsoft and the Ministry of Education in Ethiopia are coming together to transform education, further innovation and develop employability. Read More

Next Einstein Forum launches global call for a new era in science and technology in Africa

The Next Einstein Forum has launched a global call for support for Africa’s scientific and technological emergence.  Read More

MTN Ghana rewards Heroes of Change for their selfless acts

Madam Paulina Opei, Founder of “Save our Lives Orphanage” and a trained nurse was crowned the overall winner of the MTN Heroes of Change Season II at the Accra International Conference Centre.  Read More

Egypt to launch digital hub to help Africa better track and control disease outbreaks

A new African Health Data and Disease Control Hub will serve as a data, information and communication portal for African citizens, governments and institutions. Read More

MTN Ghana set to collect 1,700 pints of blood for National Blood Bank

Ghanaians from all walks of life trooped to the various MTN’s “Save a Life” campaign blood collection centre across the country to donate their blood to support the National Blood Bank. Read More

Love comes to pupils of Tigo’s Shelter 4 Education Project

Valentine’s Day came early for the pupils and teachers of Obeng Yaw Basic School in Adeiso, and Tupaa MA Basic School in Ga South Municipality.  Read More

E-waste collection drive concludes in Côte D’Ivoire with over 70 tonnes collected

The Ericsson and MTN electrical and electronic equipment waste (e-waste) collection and awareness drive in Côte D’Ivoire has ended with more than 70 tonnes of e-waste collected.  Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor Networks

FEATURED STORY

Criticism over Remita borne out of ignorance, says SystemSpecsCriticism over Remita borne out of ignorance, says SystemSpecs

The CEO of SystemSpecs, the company behind the revenue-saving Nigerian Single Treasury Account (TSA) system, speaks to Biztechafrica.

IN DEPTH

IBM Opens First Cloud Data Centre in South AfricaIBM Opens First Cloud Data Centre in South Africa

IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.