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

comments powered by Disqus

MORE DEVELOPMENT NEWS

Samsung inspires soccer students with ‘I See Your Dream’ campaign in Ghana

Samsung has come out in support of youth football development in Ghana with a coaching camp for 44 young soccer students selected from two junior high schools from Accra Metropolis. Read More

Sustainable Energy Fund for Africa to support 72 MW solar PV power plant in Cameroon

The Sustainable Energy Fund for Africa (SEFA) approved at the end of 2014 a USD 777,000 preparation grant for JCM Greenquest Solar Corporation to support the development of a 72 MW Solar Photovoltaic (PV) power plant as the first renewable energy Independent Power Producer (IPP) in Cameroon.  Read More

One primary school pupil, one tablet: Dakar mayor

Khalifa Sall, the mayor of the Senegalese capital Dakar, has an ambitious plan to equip all the pupils of primary schools of his city with tablets. Read More

Tigo brightens Christmas for over 3,000 children and head porters

As part of its Corporate Social Responsibility (CSR) drive, mobile network operator, Tigo Ghana has climax its Christmas party for less privileged children and female head porters in Accra. Read More

Airtel, Rotary Club to provide clean water for school in Kajiado County

Bharti Airtel has partnered with Rotary Club of Nairobi East for a safe water harvesting project that will provide clean drinking and cooking water Enkeriyan Primary School in Kajiado County and the neighbouring community.    Read More

Airtel to offer mentorship programmes to Good Samaritan Orphans and Destitute centre

Bharti Airtel will offer mentorship programmes to the Good Samaritan Orphans and Destitute Centre in Kayole’s Soweto. The programme is part of the Airtel spirit where Airtel staff voluntarily give both time and expertise at individual and corporate level to positively impact the community. Read More

Airtel enables students in Siaya County to freely access learning materials online

Bharti Airtel now provides free data connectivity to Sigweng Karuoth Primary School in Siaya County, Kenya, as part of its efforts to support Kenya’s education system.         Read More

Nescafe inspires African bloggers at Start Conference 2014

The Nescafe Start Conference 2014 has ended in Accra with a call on young tech entrepreneurs to use their creative ideas and skills to generate innovative business enterprises that would help create job opportunities.  Read More

Huawei Ghana refurbishes Accra Central Library

Huawei Ghana has officially presented a new state of the art library to the Minister of Communication, Dr. Edward Omane Boamah, on behalf of the Ghana Library Authority.  Read More

Vodafone Ghana Foundation ends 2014 with “Bring a Cheer to Your Community” Campaign

Vodafone Ghana says it is receiving proposals from Non Governmental Organisations whose focus is on contributing to the quality of life in rural communities across the country. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

UCC launches 2015 ACIA awardsUCC launches 2015 ACIA awards

Uganda has launched the fifth Annual Communications and Innovation Awards, which celebrate and foster ICT innovation and achievement.

IN DEPTH

Kenya’s digital TV battle hots up Kenya’s digital TV battle hots up

Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.

COMPANY NEWS

Albany CTG, Microsoft, collaborate on School of Government Program

The University at Albany’s Center for Technology in Government (CTG) has announced its collaboration with Microsoft Corporation to deliver executive level training to government leaders in Africa ...

VMware reports fourth quarter and full year 2014 results

VMware, the global leader in virtualisation and cloud infrastructure, has announced financial results for the fourth quarter and full year of 2014.

MTN to empower African businesses with AWS Direct Connect

MTN Group today announced it would be the first African company to offer Amazon Web Services (AWS) Direct Connect to business customers across multiple countries on the ...