Infrastructure seen as premier investment opportunity
Isaac Pinielo | Friday October 17, 2014 16:47
During the seminar, the investors explored investment and other opportunities within the Gaborone prime CBD as well as in other central business hubs across the country like Francistown, Selibe Phikwe and Palapye as they are deemed potential areas for huge infrastructural investment.
The Frost & Sullivan Report 2012 - Infrastructure Tracker has established that there would be significant growth in the transport, energy and power infrastructure sectors in Botswana, which is attributed to the government’s aim to expand the mining industry and stimulate economic growth by diversifying the economy.
An expert in urban designs, Leta Mosienyane, who is also president of the Botswana Confederation of Commerce Industry and Manpower (BOCCIM), concurs.
He indicated that infrastructural development would provide an environment where local business capacity and manpower skills thrive and develop.
Mosienyane said his organisation was always lobbying government to liberalise the investment and financing of infrastructure through the private sector. He added that BOCCIM had spearheaded and engaged government several times on this matter.
He noted that this would in turn drive economic diversification and boost the economy’s regional and international competitiveness.
Mosienyane however regretted that the quality of infrastructure in Botswana had declined over the years. He attributed this to the fact that some projects are at sub-optimal levels while others are white elephants. He also stated that some projects are not sustainable or viable, which results in high operations costs and lack of capacity to maintain them.
Earlier on investment analyst, Vuyo Ntoi, had advised investors that while infrastructure businesses have many attractive investment characteristics, they require significant ongoing management to deliver to the community and investors. Ntoi is regional director of the African Infrastructure Investment Managers (AIIM), which endeavours to capitalise on the growing number of African infrastructure investment opportunities.
Adding to the discussions, Minister of Infrastructure, Science and Technology, Johnnie Swartz, said Botswana had huge potential to provide infrastructure comprising buildings as well as civil infrastructure through Public Private Partnerships (PPPs). He singled out roads, railways, dams, educational and medical facilities, office and staff accommodation as strategic areas of developmental needs for which government require private sector participation.
“The provision of the above mentioned primarily remain the responsibility of government. We must provide untapped area with potential for those who have the requisite skills and resources to play a meaningful role,” he said.
Project coordinator for the Francistown Investment Forum, Tebogo Duna, highlighted that there are a lot of investment opportunities in infrastructure. He said the city boasts an international standard airport, good rail and road connectivity, abundant water, land resources and reliable energy supply endowed with rich untapped mineral resources and diverse culture. Duna added that the city, dubbed the “Ground gate way to greater Africa and the rest of the world”, would give investors access to a market base of at least 200 million people within the SADC region.