Mining's 'go-to-guy' calls it a day

| Friday October 29, 2010 00:00

Mmegi: Kindly provide a brief background of your 24-year career in the government right up to the period of your departure.

Gabaake: I started my career as an Assistant Geologist at the Department of Geological Survey in July 1986. I transferred to the Department of Water Affairs in 1990 after completing my Masters Degree in groundwater hydrology at the University College of London. There I rose up to Director level in 2001 following a short stint at Ministry HQ as the first Performance Improvement Coordinator between 1999 and 2001.

I also spent two years as Deputy Permanent Secretary of Transport at the Ministry of Works and Transport and another two years between 2006 and 2008 as Permanent Secretary of Local Government. The two years at Local Government were probably the most challenging and at the same time most rewarding of my life in the public service. I got to serve ordinary Batswana and what I did daily directly impacted their lives. I moved back to the Ministry of Minerals, Energy and Water Resources (MMEWR) in April 2008 from where I retired this year from October.

Mmegi: In what way would you say the public service and/or government has changed in the course of your career?

Gabaake: There have certainly been some positive changes. The public service and/or government have increasingly become more aware of issues around quality, customer service and working towards outcomes. Today, you can get a water connection in some of the MMEWR service areas in less than 48 hours, whilst in the old days, it took months and months on average. Outside of MMEWR, there are clear improvements in the issuing of passports, as an example.

Over the last few years, we seem to have stalled and perhaps even started to go backwards, which is an irony because we currently have a President who really wants to drive performance. There is an increasing feeling of 'them and us' between leadership and the lower echelons of government. Employees volunteer their best effort and you cannot coerce world-class performance from staff.

It is about genuinely caring about them, appropriate and consistent rewards for behaviour that is consistent with the culture we want to build, encouraging and exploring thinking and ideas that are not consistent with your own and supporting general growth and development of your people. Leadership must be at the forefront and by example.

Mmegi: Successive leaders at MMEWR have all pointed the need for the establishment of a comprehensive diamond industry in Botswana, from rough to retail. What is your comment on the road travelled thus far in this regard?

Gabaake: The road we have travelled thus far is probably fine, but I think a lot more could have been done. We currently have a very good deal with De Beers in terms of the returns we get, but I think when you look at how a country uses minerals to drive development, it's more than what you get from taxes and royalties. There's still some value that can be gained from our relationship with De Beers.

Mmegi: Related to this, you leave MMEWR at a time when Government is negotiating new agreements with De Beers. Were you involved in the 2006 negotiations and what outcome do you hope for Botswana in the latest negotiations?

Gabaake: I was not involved in 2006 because I was still at Local Government. But as for the latest talks, my team and I produced the blueprint which concerns the terms of what we should aim for in negotiations. This blueprint has been approved by structures in Government and what's left is for the negotiating team to be effective in delivering that blueprint. In 2006, the Minerals Policy Committee was controlled by MMEWR through the PS, but this time around, the Committee's chairperson is in the Office of the President and I hope they will be able to deliver.

Mmegi: There are views that Botswana has not always been able to adequately interface with De Beers in negotiations over the years due to lack of technical expertise. How has this changed over the years, if at all?Gabaake: It's important that we have dedicated people looking at our interests in diamonds or De Beers. They have people or institutions looking after their interests and investments, most of which are here. You need a minimum set of skills within Government and the rest you can acquire from the private sector because some of these are the type of people you cannot retain in Government due to their remuneration.

For example, the lawyer we use in some of these agreements is the best in London and the United Kingdom and because you don't do these deals daily, there's no need to have him all the time within Government. However, with investment in mining being a continuous activity, there's need to build up skills within Government. At MMEWR, we believe we are not the same as other ministries - we are involved with big business and we must be an intelligent shareholder. We looked at other countries' approach to investment in mining and saw some private companies and other forms. My favoured model is a mining investment company with competent, experienced and qualified people across all government interests, from Debswana, BCL Mine, Tati, Botash and others.

These people could also look at other investment opportunities from the revenues coming in, which, as we know, will soon be declining. Overall, in skills development, I believe we have done a reasonable job, but there's always room for improvement in terms of structuring deals and always being on top of the game. You have to ensure that some value is not being creamed off by your partners. People can be very creative in diverting dividends from shareholders into some other venture. That's where you need to build capacity within Government.Mmegi: Apart from the University of Botswana, what is your view on further training and specialisation in the resources sector in Botswana?

Gabaake: The Botswana International University of Science and Technology (BIUST) and a Japanese university were trying a partnership around that. As a country, we have been in mining for some time and it's conceivable that we should be a centre of excellence in mining for the region and Africa. We have the mines and some have been operating for decades. There's a competitive advantage in that history.

Mmegi: Ideally, how would you suggest Botswana maximise the benefits from its massive mineral resources? How would you suggest the massive coal and other resources be managed?

Gabaake: Coal will be a big challenge for Botswana because it's mainly thermal. As a result, exports will encounter huge challenges of transport, and even with the Trans-Kalahari Railway, one would still struggle with margins and actually getting to the market. The railway line, however, is something definitely feasible and worth looking into. Strong studies need to be done into the issue of coal bed methane (CBM), underground coal gasification (UCG) and coal to liquids. People have been focusing on power stations to supply South Africa; while these are feasible, there are some serious challenges involved.

The thing that would be most viable without constraints is the CBM and UCG. The Coal Road Map has come about because we realised that for us to find another Jwaneng would be sheer luck and we looked for the next big source of revenue; we realised that coal offers opportunities for this country. However, its development cannot happen in a haphazard way where companies are doing things individually, without coherence and synergy within the industry. The roadmap must look at policy, infrastructure and other factors and have a blueprint in terms of how to unlock this potential. It will look at coal exports, CBM, UCG and the quality of coal. I believe CBM and UCG will give us immediate returns as a country and the roadmap is an extremely key project for this country.

Mmegi: What is your outlook for Botswana's energy situation?

Gabaake: The situation is still quite precarious. Morupule B is replacing the power supply we import from South Africa. From 2015, we will be running out of power again if we don't find something else firm to add to our generation mix other than what we are doing now. These projects require a number of years of planning and implementation before power is available and the Ministry is looking at a number of options; decisions will need to be made very quickly. The time to make those important decisions is now and we are actually running out of time.

We don't know whether the 300MW Mookane project will happen because there's an issue of costs. Therefore, it is important that we nail down our options. These should be laid down latest by the middle of next year. Anything else will leave us in a precarious position by 2015. We have a very competent team in the ministry and I believe with the wonderful minister we have and support from the rest of government, these matters are not beyond us.

Mmegi: What are your reasons for leaving Government?

Gabaake: I am a public servant at heart. When I started feeling I was spending too much energy and effort in defending what my ministry was trying to do for Batswana, I felt my time was up. Coupled with my health problems, I felt the honourable thing to do would be to step aside and let someone else take the MMWER baton. My inability to comfortably navigate the politics of the current civil service culture should not compromise the ability of MMEWR to continue doing the superb job that I think it is doing. However, I have assured the Minister and His Excellency that I would be available to serve them in a different capacity should they so wish. They have both been understanding and supportive.

Mmegi: What's next in your career?

Gabaake: In my heart, deep down, I'm a civil servant, but I want to go into the private sector for a while. If they invite me back to government, I might return, but I want to spend time in the private sector where I can make the same, if not a bigger contribution in the same space. Contributing to the country can be done in the private sector also.

I have decided that between now and December, I'm not committing to anything long term. I have also developed a passion for trading in stocks and I spend quite a bit of time on my laptop looking at my small portfolio.

Botswana gave me a wonderful opportunity to serve and I will always be grateful for that. I am humbled by all the support I received from ordinary Batswana and the people I have worked with. It's 24 years well spent and I have no regrets.