Mining Sparks F/town Economic Growth

By Wanetsha Mosinyi
Correspondent | Monday April 16, 2007 00:00

 

 Demand for office and retail space in the city has also grown quite significantly this year.  Tati Company Property Manager Ogaisetse Khama said the outlook for office and retail space demand is going to get even higher as the mining boom keeps on boosting other sectors of the Botswana economy.  Khama noted that after the devaluation of the Pula, many businesses lost their cash flows, which slowed them down but since last year they have recovered and were now demanding space for rent.

Tati Company owns Nswazi Mall, Barclays Plaza and Blue Jacket Square and Khama added that they are doing well as Nswazi Mall has 100 percent occupation of retail and office space.   Nswazi houses shops like Pep, Ackermans, and Topline and Spar is the anchor shop at the complex.   Both Barclays Plaza and Blue Jacket Square have between 90 percent and 95 percent occupation and he said this is due to the fact that they are in the heart of the Central Business District (CBD). Some of Tati Company's retail rental space ranges from P55 to P100 per square metre and office space from P35 to P55 per square metre.  When summed up, the rentals are between P1, 500 up to P7,000 or more.  Khama noted that as the demand for space increases, prices are likely to rocket.   'The prices are determined by the market and if it's their property, owners will increase the rentals.  So we anticipate the rates to increase in the next five years,' he asserted.  He also alluded to the fact that the complex is located next to the taxi and bus rank, including Ntshe House, which is a Government Enclave.   'Our buildings are well maintained and its another factor that works in our favour.  It is also convenient because Ntshe House people and other workers want to be closer to services.'  Khama, however, acknowledged that the city's CBD is getting overcrowded and there is a likelihood of office and retail complexes moving away from the core to the periphery. 

The near fully capacity of office and retail space in the CBD has however sparked a nightmare as parking space is small and cannot accommodate all the motor vehicles for office workers and shoppers.   Khama said the parking problem is of great concern but it is compounded by the Francis City Council (FCC), which allocates one parking bay to a certain measured square metre of the building regardless of those buildings being double storey or more type of building. Galo Shopping Centre, Nzano Centre and Golden Valley Mall also have a near full capacity retail and office occupation.   Ngilichi House, which houses Meriting Spar, has a 100 percent office space occupation. 

The retail sector in Francistown has also benefited immensely from Zimbabweans who frequent the city to buy their groceries, clothing and other household goods. The old CBD has however been transformed into a little Chinese town, as their shops are all over the former prime area of Francistown.   Some of the shops have been divided into two to maximise the space, business and profit.   Zimbabweans can be seen every morning in queues before the shops even open to buy as much of the cheap goods as possible.
The anticipated mining boom has also resulted in many companies relocating and others starting up in the city. This has also triggered a demand for warehouses in the light industrial area.   Last year, demand for executive houses, mainly from the mines, was at its highest peak and the trend has continued this year.  

It has been established that Tati Nickel Mine is in negotiations with the proposed Golf Estate and Tachila Nature Reserve to build such houses for its executives at those prime areas.

Property for rentals has also escalated as more and more people migrate to the country's second city.   Another factor that is going to impact on the accommodation on the city is the flood of students who are sponsored by the government to study in local institutions.  

In Francistown, NIIT and Baisago University have admitted hundreds of students and with their allowances, they have the purchasing power to impact on the retail and accommodation sectors.