Boidus Focus - Vol 4, Issue 8 [Sep 2014]

by Keeletsang Dipheko & Kibo Ngowi

CONTINUED PAGES 04, 17

Can Botswana Grow its Glass Production Industry?

The Drive to Position Francistown as a Centre of Investment

China or Local - Where to buy your building materials

CONTINUED PAGE 18CONTINUED PAGES 03, 16

by Kibo Ngowi

by Kibo Ngowi

Last month the City of Francistown hosted the Francistown Investment Forum as part of its bid to position Botswana’s ‘Capital of the North’ as the lead economic hub in Southern Africa by 2022. Boidus Focus pres-ents highlights of this first of its kind

conference and an insight from Econ-omist Othata Batsetswe [see page 07]on the potential models Francistown can adopt to access funding for the important matter of infrastructure funding.

OIDUS FOCUSBOTSWANA’S BUILT ENVIRONMENT NEWSPAPER

Registered at GPO as a Newspaper | P8.00 (Including VAT)

How F/town City Can Exploit PPPs for Infra-structure Development

Lifestylenoted:Man Cave Design Therapy

Understating A Perfor-mance Bond, Its Purposes And Implications?

07 08 22www.boidus.co.bw | | Volume 4, Issue 8 | SEPTEMBER 2014

BOIDUS EXCLUSIVE >BOIDUS FEATURE >

Glass production has been identi-fied as an untapped market that Bo-tswana has the potential to exploit. In an exclusive interview with Boi-dus Focus a Director of the leading

glass supplier in Botswana shares his insight on the country’s glass market and its prospects for the future.

In recent years Botswana has seen a growing trend of local consumers turning east for their building material needs to Chinese suppliers and this development has not been without controversy. Boidus Focus speaks to suppliers and regulators in an effort to find out what buyers need to keep in mind when choosing between local or Chinese materials.

A P120 million market with the potential to rise through exports

B O I D U SM E D I APLATFORMS

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OIDUS FOCUSwww.boidus.co.bw

Registered at GPO as a Newspaper | Volume 3, Issue #2

Botswana’s Architecture design & Urban Landscape Newspaper | M A R C H 2 0 1 3NEWS | page 02

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Disentangling the Web – A Look at Infrastructure Project Management

PRACTICE | pages 14, 18

Buy or Build a new Home: The Pros and Cons

HOUSING | page 16The Idea of Eco Cities: Need for harmony between policy and green initiatives

BUILDINGS | page 06A Luta Continua on the Land QuestionAirport Roof Gone with the Wind

>>> CONTINUED PAGE 07

BOIDUS EXCLUSIVE >BOIDUS EXCLUSIVE FEATURE >

BDC FAIRSCAPE PRECINCT, The Realm of Splendor - Live, Work & Play With Breath taking Views

by HK Mokwete

by Kibo Ngowi

by Kibo Ngowi & HK Mokwete

FNB’s CBD HQ – Intelligent Corporate Architecture

“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”

>>> CONTINUED PAGE 04>>> CONTINUED PAGES 08, 13

First National Bank (FNB) has moved into its newly built headquarters in Gaborone’s rapidly developing Cen-tral Business District (CBD). Located in plot 54362, the Head Office called First Place, boasts the banks’ “one-stop-shop” capability. With an expansion of

The current debate in parliament over a budget allocation request of P195 million for the purposes of augment-ing funds to either- acquire or build a new office block to house the Office of

With stakes high in Botswana of-fice market, Botswana Development Corporation’s Fairscape Precinct is set to raise the bar of what quality office space is by delivering an A-grade mixed use development which will see work, play and live become

the office facilities accommodating all the Bank’s divisions such as Electronic Banking, Private Banking, Property Fi-nance, WesBank, Firstcard to mention but a few, customers get a full bouquet of FNBB products under one roof.

reality in one area.

The Iconic tower which has been slowly emerging off the skyline of Fairgrounds is setting unmissable view of a gleaming honey comb lattice structure with unparalleled

views from across the City. Boidus was recently given exclusive tour of the construction site to experience first hand this exciting project as it becomes reality.

The Relocation of the Office of The President - Is it the Right Move Or Not?

the President (OP) is missing the big-ger picture of what should be debated when procuring the office space for the ‘Highest Office in the Land.’

Office of the President

Public Piazza

Birds-eye view



NEWS | page 02


Botswana’s Architecture Design and Urban Landscape Newspaper | J U N E 2 0 1 3

Guide to School Programmes: 2013 Built Environment Ca-reers Guide

EDUCATION | pages 15

How ready is Botswana for the Inevitable Change towards Global Decarbonisation targets?

SUSTAINABILITY | page 06Government to Promote Intro-duction of Residential Develop-ment into the CBD

EDITORIAL | page 04Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant


>>> CONTINUED PAGES 08, 13, 18

The Boidus Media, State of our Cities- CBD Executive Seminar recently held at Masa Centre was by any measure a resounding success. The Seminar event brought together for the first time ever in Botswana, key stakehold-ers of the New CBD development such as investors, development own-ers, government, industry champions

and the public in sharing of ideas and opportunities about our upcoming CBD. Envisaged as the future heart of Gaborone City, the CBD is slowly tak-ing shape and the seminar sought to make it a centre stage focus of discus-sions and professional deliberations. In this Boidus Focus Special, find event abstracts:


by Boidus Admin

Government to Promote In-troduction of Residential Development into the CBD

IntroductionThank you to the organizers for inviting DTRP to contribute to this important and highly topical seminar.

In organizing it, BOIDUS have directly responded to our concern that it is easy to be critical and identify perceived

failings of the CBD concept but more challenging to come up with solutions where problems have been identified. That is what we hope the seminar will concentrate upon.

From a DTRP standpoint, the forum

by Kibo Ngowi / H. Killion Mokwete


Red East Construction: Award Winning Chinese Contractor Boidus Focus sat down with the Manag-ing Director of Red East Construction, a Subsidiary of the Zhengtai Group Mr Zhu Dexiang to try and understand what has set this Chinese construction

company apart from its counterparts and defied the perception of poor con-struction workmanship as a uniquely Chinese problem.

Event Feature: State of our Cities- CBD Executive Seminar Eventby Kibo Ngowi & HK Mokwete

Bringing together key CBD stakeholders such as landowners and develop-ers to engage on issues that affect their developments and investment

Top: Guests and delegates at the CBD EventBottom: Architect and Urban Designer Jo Noero from Noero Architects and University of Cape TownRight: Hon. Assistant Minister of Trade and Industry, Keletso J. Rakhudu, officially opening the event

Renowned experts in branding, business and marketing.

Interactive session for learning and networks.

Exhibition withthe latest innovation.

Certification of attendance.

Latest trendsand technology.

P500June 21-22University of Botswana

(FOR BOTH DAYS)

P300student price for both days

*PRICE PER DAY FORINDIVIDUALS OR PAYP500 FOR BOTH DAYS.

FOR INDIVIDUALAND CORPORATETICKETS CONTACT+267 72 49 51 71

FIND CREATIVE

ANSWERS TO COMMERCIAL

QUESTIONS. IDEAS EXPO BOTSWANA is an event designed to combine the best of creativity, business and technology in which participants are invited to give talks, do demonstrations, and show their work.

As you reflect on the ‘challenges and opportunities’ of devel-oping a CBD, I would like to encourage all of you to think of this as what our generation will be remembered for having done, not only for this City, but for the nation, albeit through the toughest times.Assistant Min. of Trade & Industry, Hon. Keletso J. Rakhudu

A Successful CBD represents among other things; • A success CBD Image of the city and the country • Generation of the country’s prosperity• Successful partnership between the Government & PVT sectorDimitri Kokinos: Portfolio Structuring Manager (Stanlib)

Extract Seminar Paper Presentation by Jobe Ofetotse, DTRP



NEWS | page 02


Botswana’s Architecture Design and Urban Landscape Newspaper | S E P T 2 0 1 3

It’s Time to Envision A Better Built Detroit. Are Architects Ready?

PROF PRACTICE | pages 16

Barclays Bond Switching Campaign: Boidus Speaks to Barclays Home Loans Manager

FINANCING | page 18Are Property Valuers influenced by Borrowers and Lenders?

EDITORIAL | page 05Global Design Giant, AECOM Completes Takeover of DAVIS Langdon Botswana


Botswana’s Property Index for year 2012 released by IPD indicate a slight fall in total return but still returned a healthy 17.9% The figures is a fall from last year’s return of 20.9%. Botswana recently joined the only other country

in Africa region (South Africa) in col-lating of a Property Index by IPD, the leading provider of worldwide critical business intelligence, including ana-lytical services, indices and market in-formation, to the real estate industry. >>> CONTINUED PAGES 08,13>>> CONTINUED PAGE 04

by Kibo Ngowi

Government & Private Sec-tor Sorting Out Construction

by Boidus Admin


Kazungula Bridge - The Gate-way To African Mainland

Underlying all of the engineering in-genuity, bridges play a critical role in bringing trade hubs, communities and other trade benefits to communities. In Kazungula, the Ferry, which used to play the mobile bridging element, might be seeing the last of its heroic days. Plagued with problems such as delays of up to days especially in rainy season, accidents and others, the bridging of

Botswana’s Property Outper-forms Equity (DCI), Bonds (BBI) - IPD 2012by HK Mokwete

IPD produces more than 120 indices, as well as almost 600 portfolio bench-marks, across 32 countries enabling real estate market transparency and performance comparisons.

Othata Batsetswe: FinMark Stan Garrun: Executive Director & Head of South Africa, IPD Dr Keith Jefferis: EConsult Botswana

The final piece of the ‘trans-Kalahari’ corridor

the mighty Chobe River’s 400m width will soon be an issue of the past. The new proposed bridge will not only con-nect communities on both side of the Chobe and Botswana and Zambia but also open a corridor of trade and goods services to the heart of Africa. The bridge will complete the missing part in the so called ‘trans-Kalahari’ corridor.

MIST, BOCCIM & Industry Professional Task Force

After more than four reports and nu-merous attempts by international con-sultants to formulate and implement regulatory standards for our ailing con-struction industry over the space of 20 years, the drive to put real action into solving the industry’s underlying prob-lems be gaining momentum. A task force headed by MIST, through Deputy PSP, Ulf Sodderstrom, BOCCIM, Profes-

sional Associations such as AAB, ABCON, BIDP, BIE, TBBA, and other stakeholders are laying out the foundation to what will be Botswana’s CI Regulator. The all pow-erful body will have authority and over-reaching powers over all that is construc-tion across both government and private construction activities.

The IPD Botswana Property Consultative Index 2012 Indicates Decline in Total Returns

Botswana South Africa Australia

Total Return% 12 months 17.9% 10.4% 6.2%

CapitalAll Property

2,850.2(BWP million)

204,844 (ZARmillion)

1BWP : 1.18ZAR

7,164.8(€m)

1BWP : 7.75€

FNBB ROUNDTABLE DISCUSSION - DECEMBER 2013AFFORDABLE HOUSING MARKET OPPORTUNITIES

BREAKFAST FORUM SERIES - SEPTEMBER 2013BOTSWANA PROPERTY MARKETSTATE OF OUR CITIES - MAY 2013

CBD EXECUTIVE SEMINARSTATE OF OUR CITIES - APRIL 2012

DESIGNER’S FORUMBREAKFAST SEMINAR SERIES - MARCH 2012

HOUSING AFFORDABILITY IN BOTSWANA

Professionals Information Seekers

StudentsOrganization Affiliations[ ]

BOIDUS FOCUSSeptember 2014

Local NewsPage 2

The Botswana Stock Exchange listed property companies, Turnstar Holdings and RDC Prop-erties Limited, have both indicated there are ‘hardening investment’ yields as the market is becoming increasingly ‘competitive.’ An RDC statement noted that the property market in Bo-tswana is becoming more competitive especial-ly within Gaborone as a result of the increased supply of available office and retail space. The other top property player, Turnstar, warned in its report that there is already evidence of de-clining base rentals and hardening investment yields due to an oversupply of office space and shopping centres around the city.

At the centre of the concerns is the new Central Business District (CBD) in Gaborone which has, in recent years, experienced rapid development with dozens of companies constructing property in the area. Unfortunately, this rapid growth has been driven more by government policy than by market demand.

The CBD Master Plan envisioned a phasing strategy that would allow the CBD to grow in-crementally through three phases and over 20 years. The original pragmatism has since been replaced by a directive requiring all plots in the new CBD to be developed within two years of land award. Commenting on this approach, then Director of Knight Frank Stephen Wyatt was quoted as saying, “In practice it cannot possibly work. If everyone started construction as they should the market will crash.”

by Keeletsang P. Dipheko

Turnstar, RDC warn of intensi-fying commer-cial property competition

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News Briefs Compiled by Keeletsang P. Dipheko

Press Release [01 September 2014]In a previous statement released by Botswana Insurance Company Limited (BIC), dated 9 May 2014, the company stated that it was in the pro-cess of discussing a potential acquisition. BIC is pleased to announce that it has purchased the general lines insurance book of BIHL Insurance Company Limited. Regulatory approvals for the transaction have been obtained and all legal documentation pertaining to the acquisition has been finalized.

The transition has brought on board additional skills from BIHL Insurance Company Limited to the BIC head office. Stakeholders can rest as-sured that the highest standards with regards to continued service delivery and product quality will be maintained through BIC’s robust service delivery model.

Clients with queries should contact BIC head office.

BIC - SURE! ACQUISITION

The Ministry of Labour and Home Affairs has revealed that most workplace injuries take place in the building and construction sector and that the majority of those applying for Workman’s Compensation are men. According to the figures, 1,173 work related injuries were recorded in 2011, 1,251 in 2012 and 1, 127 in 2013 and statistics indicate that male employees are injured far more often than their female counterparts.

CONSTRUCTION SECTOR MEN MOST VULNERABLE TO WORKPLACE INJURIES

Botswana Innovation Hub (BIH) in collaboration with the South-ern African Innovation Support (SAiS) Programme hosted the inaugural National Innovation Award (NIA) ceremony recently. The awards were split into two categories. The grand prize of P5, 000 in the Engineering and Mining Design Competition went to Aubrey Ramakoba and Tshepo Gaogane for designing a mechanism to produce synthetic gypsum. The grand prize of P50, 000 in the National Biotech and Cleantech Competition went to Reuben Kerobale who created a fast burning water-proof bio capsule that makes a fast cooker for all conditions.

BIH HOSTS INAUGURAL NATIONAL INNOVATION AWARDS

The Ministry of Infrastructure, Science and Tech-nology held a construction Pitso (conference) recently and during the Pitso the Acting Direc-tor of the Department of Building Engineer-ing Services Mr. Ketsile Kutoro indicated that the process of unbundling mega projects has begun. The projects include Shakawe primary hospital, two police projects and maintenance for 23 senior secondary schools. MIST included three other ministries: Local government and rural development; Works and Transport; and Minerals, Energy and Water Resources, to allo-cate the unbundling of mega projects.

CONSTRUCTION PITSO RESOLUTIONS LEAD TO UNBUNDLING OF MEGA PROJECTS

General Electric Co (GE.N) has pledged to invest $2 billion in Af-rica by 2018 to boost infrastructure, worker skills and access to energy. U.S. companies still have opportunities to catch up to China, Europe and Japan, who have made bigger strides in in-vesting in the fast-growing continent, GE Chief Executive Officer Jeffrey Immelt said. GE’s investments include deals to work on increased electric grid reliability during peak power demands in Algeria and to generate uninterrupted power for the Nigerian National Petroleum Corp’s state oil refinery. (Reuters)

GE TO INVEST $2 BILLION TO BOOST AFRICAN ENERGY, INFRASTRUCTURE


Boidus Main FeaturePage 3

Suitably qualified contractors are invited to submit tenders for the electrical installation for Botswana Innovation Hub Icon Building development on Plot 69184, Block 8, Gaborone.

Approximately 22,000m2 office development com-prising of 2 office blocks ranging from 2 to 4 storeys in height to be constructed by others on Plot 69184, Block 8, Gaborone.

All relevant information regarding the tender, as well as the specific requirements are set out in the tender documents. The following is provided to assist prospective tenderers:-

1. A non-refundable cash fee of BWP1500.00 shall be payable upon collection of the documents.

2. Prospective tenderers are advised that submissions will only be accepted from contractors registered with PPADB who can produce proof that they are registered for electrical works in PPADB CODE 02 Electrical, Sub Codes 01 04, 06, & 07 Grades E “Unlimited” or equal for contractors not registered in Botswana.

3. Prospective tenderers must include valid Tax

Tender Documents can, with effect from the 1st September 2014, be obtained from:-

THE PROJECT COMPRISES THE FOLLOWING WORKS AS BRIEFLY DESCRIBED BELOW:

The Chief Executive OfficeBotswana Innovation HubPlot No. 50654Machel DriveBag 00265GaboroneBotswana

Telephone: +267 391 3328Facsimile: +267 391 3289

Clearance Certificate or Exemption Certificate in their technical submissions.

4. The tender will take the form of a ‘two envelope’ process, whereby the technical part of the submission (capacity, capability and experience) will be adjudicated before the opening of the financial part of the submission. Financial submissions will only be considered from tenderers who attain 70% or more in the technical submission.

5. No expenses in respect of the preparation and/or submission of the tenders will be reimbursed.

6. Tenders shall be delivered to First Floor, Botswana Innovation Hub Offices, Maranyane House, Plot 69184, Machel Drive, Gaborone, not later than 10.00am on 29th of September 2014.

7. Any faxed or emailed proposals, or those received after the stipulated closing time will not be eligible for consideration.

8. Tenderers are encouraged to attend a pre-tender meeting to be held on site on the 9th September 2014, starting at 11:30am. The meeting is to give the bidders a chance to seek any clarification regarding requirements.

Enquiries may be addressed to Mr Mothusi George at AMA Projects (PTY), LTD, P. O Box 1127, Mogoditshane; Fax No. +267 3951668 Email Address: [email protected] and copied to Mr Alex Monchusi at [email protected] and Mr S. Campar at [email protected]

Innovation ishappening here...come and join us.

PROPOSED BOTSWANA INNOVATION HUB CENTRAL BUILDINGPLOT 69184, BLOCK 8, GABORONEELECTRICAL CONTRACTORS - ADVERTISEMENT

China or Local - Where to buy your building materialsCONTINUED FROM THE FRONT PAGE

by Keeletsang Dipheko & Kibo Ngowi

Mabel Bannerman is an agent who plies her trade by assisting ho-meowners to acquire building materials from China. Her venture into the world of importing goods began in 2008 when she was building her own house in Block 8 and decided to go China to buy materials. Unfortunately the service she received was unsatisfac-tory as she was not made aware of the extra charges that come with purchasing and shipping materials.

While reeling from the poor service she received Bannerman learned that there were many other Batswana buying materials from China and experiencing the same problems she encoun-tered. She saw this as an opportunity to create a business that would assist Batswana homeowners to buy Chinese materials. She has now been helping people to acquire building materials from China for the past five years and while she was operating infor-mally for the first year she now has a registered company.

Bannerman says she does everything for her clients, includ-ing finding out what they want, applying for Visas and booking flights. She has two employees in China who guide her custom-ers. When the customers arrive in China, Bannerman’s employees collect them from the airport, get them checked into hotels, and then take them to specific shops to find the materials they want to buy. “Every month I help about five people to buy materials from China and the response is good because people come to me knowing that they will get materials in China for a fair price,” says Bannerman.

Asked what influences people to abandon local materials in fa-vour of shopping abroad, especially in China, Bannerman ex-plained that though most materials sold locally are imported from the same place, people still go to China themselves for the variety:

Bannerman explains that it is a misperception that everything in China is cheap. Most people leave Botswana thinking that they are going to buy materials at a cheap price, “but cheap stuff also has its own effect; price determines the quality,” says Bannerman. She adds that the cheap materials look the same as the best qual-ity ones but prices differ which shows that other materials are more valuable than others.

Bannerman explains that the challenge they face is that some products in China have a brand name known worldwide like Sam-

sung and because it is a well-known brand name there is less difference on the price range from other countries:

Although most of the materials in Botswana are from China some are from South Africa which also has a good industry with good

“You will find that a Samsung fridge that you purchase at Game shop with P10 000 you will buy at P7000 from China because it’s a brand name for the whole world. People go to China and expect to buy it at P2000 but it is not possible.”

quality as they are capable of manufacturing their own materials. However, Bannerman cautions that sometimes people buy mate-rials from China and then rebrand in their own name. In conclusion, she advises people to do research before going to China and to see the value of finding somebody knowledgeable to guide them: “For them to leave Botswana without somebody to show them quality goods means they would obviously end up buying low quality stuff. Countries are different so going there

without somebody to help you means you’ll end up meeting someone on the street who will drive you to buy poor materials.”

“China has got the best quality and variety of materials but it also depends on the budget of the customer. Obviously if your budget is not that much you will get low quality materials but we don’t offer people low quality because there is no point in someone leaving Botswana for low quality material.”


Boidus FeaturePage 4

8-36 tons Bulk transport (tiper)Contract distribution servicesRefrigerated trucksDeliveries of sand, gravel & aggregates

Consolidations from JohannesburgCrane trucksTruck and from-end loader hire

Behind kgale quarries/private bag B06 We also have offices in Johannesburg

ROADFREIGHT

“I would say current glass sales in Botswana amount to around P120 million annually but with many contractors bringing in their own glass from abroad it’s difficult to determine the exact quantities involved,” says Mr. Jeff Thom-son. Thomson is one of two partner Directors of Delta Glass & Aluminium, one of Botswana’s foremost suppliers of specialised glass prod-ucts and architectural aluminium applications. Thomson is in charge of the glass division of the company while his partner Grant Stacy oversees aluminium. “Five years ago when the govern-ment was putting up infrastructure all over the place it was almost double what it is now.”

Thomson explains that when government was still active in the construction industry it actually encouraged local procurement of materials so many local suppliers did well out of the arrange-ment. Now the situation is quite different be-cause the rapid growth in private development has been accompanied by a trend of architects and main contractors becoming increasingly se-lective in their procuring methods. Price is the

decisive factor now so most of them prefer to import materials from China and South Africa where companies can afford to sell their prod-ucts at far cheaper prices than local suppliers. As a result, local companies in glass and other building aspects have benefitted very little from the recent growth of major urban precincts such as the new CBD and Fairgrounds Office Park.

Botswana has been judged by some to have sand of a good quality to produce high-grade glass. In fact in 2011 it emerged that Botswana Development Corporation (BDC) had partnered with China based Shanghai Glass Manufactur-ing Company to build a major glass production plant in Palapye at a cost of over P500 million but problems between the two partners led the project to collapse.

When posed with the question of Botswana’s potential to create a robust glass production industry Thomson responds with a mixture of scepticism and optimism. Firstly he indicates that huge deposits of alluvial silica are known to be available in Palapye and Mahalapye and that another key ingredient soda ash is also available

Can Botswana Grow its Glass Production Industry?by Kibo Ngowi

CONTINUED FROM THE FRONT PAGE

locally. However, he does say the magnitude of the proposed glass project in Palapye was po-tentially unsustainable:

“From press releases we understand the plant was capable of producing around 450 tonnes of glass per day and that’s probably Botswana’s to-tal monthly consumption... South Africa has just two huge float plants which currently service the SADC countries and in fact the output of the two float plants has been reduced.”

Thomson believes the key to establishing a glass production industry within Botswana lies in selling outside the country’s borders as there is potential to export large volumes of glass, es-pecially up North in countries such as Zambia, Malawi and Tanzania. Some of these countries currently import from Egypt and it would be cheaper for them to buy from Botswana if that were possible.

Delta Glass & Aluminium was established in 2003 and in 2010 PG Africa bought a majority stake in the company though it still operates more autonomously than the 26 PG Africa branches spread across the continent. Delta employs six-teen personnel in the glass division and four in the aluminium and Thomson is proud of the fact that they have been able to resist the temptation to automate their operations which would lead to a reduction in the staff complement.

“Instead of going the automated machinery route we’ve remained one of the few relatively large operations still cutting and processing glass by hand,” says Thomson. “We’ve got three cutting teams in our warehouse and it’s amazing what they produce. In fact foreign experts and other suppliers from South Africa have come to look at our operation and they can’t believe that we still process glass by hand. Most opera-tions in South Africa have overhead cranes and

“The establishment of foreign markets to handle the vast quantities produced would be fundamental to the project’s long-term survival and this would need to be secured from the onset,” says Thomson. “The local market could pick up the value added benefits in the laminating process creating safety and tinted performance glass with the possibility of the establishment of coating facilities.”

automatic cutting tables with a very small staff complement but with us it’s very labour-inten-sive and we’ve kept it like that for the last 10 years and our guys have been with us since we first started the business.”

Exploring frontiers for growth outside the coun-try’s borders is something Thomson believes is a necessity for his own company as well: “Bo-tswana is pretty much saturated at the moment. We’ve actually reached a point now where un-less the government carries on with develop-ment, we’re not going to grow much more. We actually supply projects up in Zambia at the moment because a lot of our customers have actually been awarded contracts up there. Just this year, seven of our regular customers have actually opened up their own branches in Zam-bia and they’re buying all their glass from Delta.”

While there may be no room for growth there

is still a domestic demand for glass and Thom-son has noted an increased focus on the use of energy efficient performance products in an effort to reduce energy costs in buildings. “We have noticed more residential develop-ments including solar products in their con-struction. The focus now is energy savings. In South Africa legislation has been passed to include performance glass in all buildings and this trend will eventually filter through to Bo-tswana as our architects and specifiers begin to understand the long-term benefits of these products.”

Delta Glass & Aluminium has been responsible for a number of high-profile projects includ-ing the Sir Seretse Khama and Francistown Air-ports; the Square, Prime Plaza, and the Industrial Court, all in the CBD; as well as the Diamond Trading Company facility and Debswana Head-quarters.


Consumer EducationPage 5

This educational column focuses on the documents required when one applies for a mortgage at Bo-tswana Building Society

Botswana Building Society (BBS) regularly receives inquiries from potential customers about the process of applying for a mortgage loan, types of loans, require-ments and the turnaround time from submitting a loan application to approval. In an attempt to address the latter, this issue will focus on the documents required from individuals when they apply for a mortgage loan for the first time.

• Payslip - A pay slip will prove whether you are in a steady financial position or not. Thus a payslip plays a decisive role in acquiring a loan. BBS must be certain that the person will be able to give regular installments and the loan will not become bad credit. Payslips clearly establish the financial credential of a person.

• Three months bank statement - BBS also requires a bank statement reflecting salary. These statements include information on debits and credits on the bank account. It is one of the only sure ways that an individual’s cash flow can be determined. In other words, how is he/she spending income and how much income is the individual actually receiving?

• Certified copy of your National Identification Card (Omang) or Passport for non Batswana for identification.

• Copy of Marriage Certificate or Decree Abso-lute where applicable.

• Letter confirming employment. • Structural Survey Report - The report opens your

eyes to all of the potential or actual problems in your new home. The surveyor identifies problems and correspondingly advises on what needs to be done to rectify them. It is suitable for any property, old or new. It is particularly useful if the property is older or has been extended or altered or perhaps been kept in a poor state of repair. This means that your decision about which house to make an offer for is more informed from the start.

• Valuation report - A valuation is a property inspec-tion carried out with the sole purpose of estimating the value of the property. This value will also be used to assess how much money you qualify for. A valu-ation is, therefore, not a survey. It is a very limited inspection compared to a survey. That is why it can-not not be used as the only indication of whether to buy a property.

• Copy Of The Title Deed - A deed is a signed legal instrument which is used to grant a right. It is executed and acknowledged under the seal and in the presence of an attorney evidencing the right of ownership to a property described therein.

• Offer letter - An offer letter should come from a seller stating the property in question, have an ad-dress, a price and any other terms you would have discussed. It should be signed by both you (the buyer) and the seller.

In addition to documents discussed above, the fol-lowing will apply if you are in need of a building loan.

• Approved plan – Consult an architect of your choice who will then design a plan for you. Be sure to make them aware of how much you qualify for, lest they exceed your budget by designing something you

cannot afford. Being satisfied with the plan designed, you will now submit it to the city/town council for assessment. The plan can either be approved or re-turned to you with alterations. In the event that your plan is rejected, patiently work on the amendments and submit it again or make a new one all together. However, the second option might be costly. None-theless, have the plan finalised and approved.

• Three quotations from construction companies (Labour & material inclusive) - Engage three contrac-tors who will assess the plan and work on estimates of how much the structure is likely to cost. The estimates will be inclusive of both labour and building materi-als. You then have to ensure that a tender evaluation report, with regard to these quotations is done.

• Tender evaluation report - A tender evaluation is an assessment of all vendor proposals you acquired. It ensures that specifications and pricing are cor-rectly done and in line with your requirements. It helps to identify tender deficiencies and missing information. A detailed tender evaluation report will also enable you to negotiate the best terms and conditions for your project.

All the requirements stated above are necessary to either acquiring a building loan or buying a house. Therefore, applicants are advised to ensure that they have all the required documents to avoid unnecessary delays.

Please also note the followingAt BBS the turnaround time for processing a mortgage loan application is 48 (forty-eight) hours.

It is also important for you to be aware of any credit reports about your financial history before you apply for a mortgage loan because the reports play an im-portant role in the mortgage approval process and in determining the interest rate and other loan terms that BBS will offer you. If you have not looked at your credit report, you might later be surprised by its contents which might include errors.

Finally…Buying a home or building one is not as difficult as you might think. Even if you are short on funds the process will be a lot smoother if you familiarise yourself with your real estate market and narrow down your wants and needs before you start viewing houses.

You might also encounter issues during your applica-tion process, some specific to your location and your transaction, that can best be explained and handled by your local real estate agent, your lender, your attorney, your closing agent (a person who coordinates the closing of loan documents and disbursing of funds), or others who are helping you complete the home buying transaction. More importantly, never hesitate to ask questions. Ask as many questions as necessary to understand the entire home buying process. This is because you are making a long term commitment and spending a major amount of money. You will feel much better about the transaction if you stay informed and understand what is happening every step of the way.

BBS has Sales Consultants who are well informed, trained and always ready to assist you. You may reach them at 3971396 or visit any of our branch-es country wide for assistance.

In the next installment, which shall be next month, we will discuss types of mortgages. It will range from purchasing an already built house, building a house and purchasing land across the country.

Steps to follow when applying for a mortgage loan

PRACTICAL ADVICE GUIDESeptember 2014Essay 1PART

1


SustainabilityPage 6

by Phenyo Motlhagodi

Brands addressing sustainability for the consumer - The Africa Solution

SUSTAINABILITY TODAY

The challenge for Africa in address-ing the sustainability shortcomings in consumer products is that coun-tries other than South Africa (and I’m thinking Botswana here) do not man-ufacture themselves. They therefore lack the ability to change lifestyles in a suitable manner to their regions or live up to the expectations of their consumer tastes. With the manu-facture of top quality products from Zimbabwe having come to a halt, we depend almost entirely on South Af-rica and its standards; so great is the country’s influence that its consumer needs are imposed on the rest of the region. What the brands in SA pre-scribe forms the perceptions of what brands are capable of providing and seemingly what we the general con-sumer deserves, and there lies the challenge.

Brands in the past have easily formed perceptions about what we deserve. This however is slowly changing in manufacturing countries (and that leaves us, Botswana, out) where con-sumers with the advent of social me-dia are more literate and can directly engage with brands. As consumers in a country like Botswana, what it seems we can almost control and dictate is service (and even that’s a hard act) but the products are out of reach, espe-cially imported (SABS approved) qual-ity products.

Back to my challenge: sustainability, and in this case, sustainable brands (products) are essential not only as a question of logic backed by the argument for sustainability, but also for the bottom line; the cost saving in the future and sometimes imme-diately. There’s lots of debate about the role of brands in helping people to live more sustainable lives. Bold sustainability ambitions are pushing the boundaries of sustainable busi-ness and innovation. The issue is really around how companies can use their brand power to shift us onto a more sustainable path and create brand value as they do it? The bigger issue for us (Botswana) is how can we even have a say in this process when the brands (manufacturers) almost seem not to consider our opinion when we are so far removed from the process (think South African retailers and how they treat us as compared to the con-sumers in their home territory)? This has gotten me thinking and exploring opportunities for collaboration be-tween manufacturing and consuming countries or markets.

Africa, for most of who will read this publication, is not one big country, but one could borrow for Africa from one big country like America that has its separate states functioning almost like different countries (for instance an architect practising in one state of

America would not necessarily be able to do so in another state as a result of different laws which to some extent are informed by market/consumer expectations). America, in creating a connection between brands, sustain-ability and the end user, has set up an interesting non-profit organisa-tion, Forum For The Future. Accord-ing to their website and other refer-ence points, it was formed to bring together a group of leading brands to explore the challenge of achieving sustainability.

Since 2012 they have run a series of roundtables and workshops for sus-tainability and marketing practitioners. The Sustainability and Brands Round-table is a forum for over 20 brands to swap experiences, know-how and pro-pose solutions in a confidential, non-competitive space. Household names like B&Q, Innocent, John Lewis and Burberry have explored how to en-gage their marketing team on sustain-ability, created compelling campaigns designed to resonate with mainstream consumers, and delved into case stud-ies showing how brands are activating sustainability now.

Think of this in an Africa sense; domi-nant brands from South Africa, Zimba-bwe, Kenya and Nigeria actively sitting together with advertising men and women from all of Africa (particularly the big consumers such as Botswana), merchants, and consumer behaviour analysts, all looking at addressing sus-tainability in the way we build.

Forum For The Future designs sessions to support brand marketers and their sustainability colleagues to progress on their individual challenges. They then harness the power of the brands around the table to give them new in-sights and strategies to take forward in their organisations. The companies that take part are clear on the oppor-tunity that sustainability offers brands and consumers. Through diagnosing and then working on their individual challenges, the roundtable members have forged much closer working re-lationships between sustainability and marketing teams and, as a result, opened up conversations in their or-ganisations that would have previously been off limits. They have discovered how to use their brand personality to really connect with people on issues that can seem technical or abstract if not communicated right, which with-out argument we will agree is a reality with building materials. On this forum, brands have been inspired through case studies and expert speakers that have given them the confidence and the tools to start activating sustainabil-ity through their own brand. And they have forged a strong network of lead-ing brands that have led the consumer on sustainability in 2014.

Forum for the Future is an established leader in thought and actions. They operate at the cutting-edge of sus-tainable development, working with key decision makers on sustainabil-ity strategies and multi-stakeholder projects to transform entire systems. They’ve changed hearts and minds through their work and have been instrumental in shifting the way lead-ing companies and commercial sec-tors operate. In the public arena they have assisted governments, cities and public service providers in developing and delivering services which offer a better way of life to the people they serve.

The retail sector has a huge influence on the behaviour of both suppliers and customers; and it has shown real leadership over recent years with Fo-rum for the Future playing a key role in many progressive initiatives.

Public sector organisations spend vast amounts of money every year and with that spending come the ability to deliver sustainable outcomes through purchasing more sustainable products and services. Forum For The Future has worked with many public sector organisations to provide training, ad-vice on policies and develop practical tools to help them put sustainable public procurement into practice. It’s not just in the USA. In the UK, the Forum-led Community Energy Coalition is creating a powerful col-laboration of more than 30 influential civil society organisations and energy practitioners to motivate and empow-er communities into owning, generat-ing and saving energy together.

Similarly, Tomorrow Makers (previ-ously known as ‘Engineers of the 21st Century’) was established with the support of government and the par-ticipation of 14 leading companies to work with younger engineers and their employers to raise awareness of the key role they could play in tackling sustainability problems. There is some food for thought for the region, but it has to start with informed consumers and profession-als who work with these products, country by country to look at form-ing synergies with others in the region and delivering on sustainability. That is how organisations like Forum For The Future have been set up, and that seems to be one solution to sustain-ability for a huge continent like Africa.

Phenyo Motlhagodi is a seasoned Radio Personality and a St Louis Top 40 under 40 finalist

Facebook: Phenyo MotlhagodiTwitter: PhenyoOnRadio

Drought tolerant landscapes & the concept of xeriscapingXeriscaping focuses on plant choices suited to the native climate, through the use of water conservation methods such as mulch, and calls for homeowners to minimize water-guzzling lawns by using the natural terrain as part of the garden design. As you will see from the following photos, many natural elements such as stone and wood blend seam-lessly to form elegant minimalist landscapes; these landscapes are easy to care for and provide a modern counterpoint to many home styles.

Landscape design using the seven principles of xeriscape gardening makes sense, especially in Botswa-na and other areas typically hit by droughts. Use of natural plants and stones adds beautiful shades of gray and green to the garden without costly watering.

This backyard oasis contains many xeriscaping elements. The use of wide stone floored spaces and rocks as decorative elements, adds dramatic flourishes without plants that drink a lot of water.

Zen-like charm creates an overall feel of simplicity and serenity in this drought tolerant landscape. Bamboo is a tough plant that thrives in most any condition. Rocks add a great pro-tective layer, allowing moisture to penetrate the soil but decreasing the amount of evaporation.

A clean, modern look exemplifies this border. Drought resistant plants like these use less water than other plants, and the thick mulch at their base pre-vents water evaporation and loss. Dramatic lights along the concrete path highlight the plants and create stunning shadows at night.

Xeriscape gardens incorporate ap-propriate plant material, such as this ornamental grass, that thrives under harsh conditions.

Mulching remains a core principle of xeriscaping. A 5-10 cm layer of mulch retains moisture and provides opti-mal soil conditions in the garden.

No matter where you live, designing a garden to use minimal water makes sense. Many plants such as succulents thrive in desert environments.

“

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Guest ColumnistPage 7

The Francistown Investment Forum has made it clear that the people responsible for Francis-town’s development have a vision that seeks to position the city as an investment hub, a gate way to the north of Botswana and even to the north of the Southern African region.

Much like any other city, Francistown has had its challenges and in my opinion the biggest has been population. That’s the first thing you get to appreciate as soon as you hit the mall business area;there are very few parking spaces, too many people, hooters everywhere and people scurry-ing all over the place. Though the above can be considered as a constraint, the business eye sees purchasing power, opportunity and prospects for growth. Francistown has the potential to grow be-yond what we see today if the right partnerships are struck for its infrastructure development.

The city has not always enjoyed the blessing of land, in contrast to the other emerging urban centres. However, the Francistown Investment Unit Project Coordinator Mr. Sylvester Toteng be-lieves that the contentious issue of land is simply a misconception as the city has plenty of avail-able land for development, contrary to popular belief. It is therefore paramount that this land be availed to kickoff the required infrastructure de-velopment for Francistown.

Infrastructure investments are generally associat-ed with significant economic benefits which can be increases in short-term output or long-term growth. The vast majority of estimated relation-ships with GDP are found to be positive and to show a return to infrastructure investment over and above that of investment in the capital stock more generally. This is not surprising given that firm activities are almost always built on under-lying infrastructure such as water, electricity, gas and transport; Francistown City happens to be blessed with all the above. Shashe dam has al-ways ensured a safe and consistent water supply and if Shashe fails, Ntimbale and Letsibogo dams are not far off so electricity concerns are now a thing of the past.

Most of the internal roads have recently been refurbished and the railroad passes through the city. With that rosy picture drawn, Francistown still requires a lot of infrastructure to address some of the social service requirements like sew-age reticulation, modernisation of the buildings, clean and safe spaces for recreation, parking lots and other aspects. There is also the requirement arising from the need to maintain, upgrade and replace existing infrastructure related assets.

The wider economic benefits of infrastructure can be realised only if projects are approved and re-ceive sufficient financing. This requires that the government is able to issue debt. However, the following constraints on the provision of capi-tal by the public sector might suggest that this is not possible. Investor demand—the cost of credit and ability of government to place certain amounts of debt in the market, given investors’ demand for government debt; Cost of debt, the cost of credit, default risk and the credit rating of the government debt; and Supranational limits—for example, limits on debt and deficit introduced by the SADC under the Finance & Investment Protocol for ease of monitoring and controlling macroeconomic related challenges like long term fiscal policy requirement for sustainable levels of

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How Francistown City Can Exploit PPPs for Infrastructure Development

debt and deficit in the long term given the target level of indebtedness and projections for tax rev-enues and expenditure.

In a bid to overcome these difficulties, govern-ments are seeking private investment in infra-structure from ‘novel’ sources (including sov-ereign wealth funds, pension funds, and other investors) and governance models. The most recent within the African region takes the form of Public Private Partnerships, which have involved long-term contracting between the public and private sector. Under these contracts, the private sector party has been required to provide the

up-front financing for the infrastructure, and has then received payment from the public sector for providing it with a stream of services.

Public Private Partnerships aim to provide a means by which synergy between the two sec-tors may be achieved in reality. Despite popular-ity around the world, a unanimous definition of PPPs is yet to be agreed upon. Indeed, there have been almost as many attempts to define PPPs as there have been PPP projects, and there are widespread differences in what the term is taken to encapsulate. The OECD has provided a defi-nition that distinguishes PPPs from more tradi- CONTINUED PAGE 20

tional procurement methods on the basis of the amount of risk transferred to the private sector. One can define a Public Private Partnership as an agreement between the government and one or more private partners ... according to which the private partners deliver the service in such a manner that the service delivery objectives of the government are aligned with the profit objectives of the private partners and where the effective-ness of the alignment depends on a sufficient transfer of risk to the private partners.

The major difference between PPPs and tradi-tional public procurement models is that the public sector does not purchase an asset in a PPP; rather it purchases a stream of services under specified terms and conditions. In other words, the private sector finances and builds the infra-structure, and it retains ownership of the asset at least until the end of the contract. Most contracts are structured to a period of up to thirty years. Different models fit within the broad PPP concept


Guest ColumnistPage 8

by Tshepiso Motlogelwa, Interior Designer

Lifestylenoted: Man Cave Design Therapy

Mismatching is perfectly fine. For a man’s home, it is actually encouraged.

An accent chair in the room provides a gentle-men’s feel without being too cheesy. A roughed look for the industrial guy.

Wall art in a room provides an additional focal point.

A gray focal wall provides a masculine touch.

Adding pops of colour in the form of artwork & accessories will give the room some character.

Men have a terrible reputation when it comes to décor. It is assumed that they are either indiffer-ent, sluggish or simply tasteless. Guys generally buy things that they actually intend to use - an otherwise good habit, except when it comes to furnishing your home. Sure, you need some-where to sit, and a place to set your coffee mug, but your home will look incomplete without a few completely functionless, decorative objects.

Incorporating small, sculptural items like wooden tribal figurines, perhaps a globe, and even an ani-mal skull will go a long way in transforming your man cave into a home.

A man’s home should feel collected not deco-rated. If you want to avoid making your home look somewhat too feminine and overly deco-rated, combine items from different times and places, like an antique chesterfield sofa alongside a modern accent chair.

For the urban man, style is no longer simply pair-ing your tie with your blazer. Its the food you cook, the drinks you drink, the books you read, and well, the kind of space you live in.

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Home ImprovementPage 10

Sponsored bySponsored byDIY Projects - Bathroom How-To Projects

HOW TO REFINISH A BATHTUBIn just a few hours, you can change the look of your bathtub by refinishing it. [Source: diynetwork.com]

HOW TO REPLACE A BATHROOM FAUCETYou can save a great deal of money and spiff up your bathroom’s appearance by installing a new faucet yourself. [Source: diynetwork.com]

Step 1: Remove the Existing FixtureTurn off the water supply at the valves under the sink or at the main water-supply valve. Loosen the supply tubes at the hot and cold valves. Use the ba-sin wrench to loosen and remove the compression nut at the faucet stem. Remove the nut holding the faucet to the sink, and remove the faucet.

Step 1: Prepare the TubRemove any anti-slip strips with a cleaner and degreaser. Wash the tub with an abrasive cleanser. Scrub the tub with an abrasive pad and Lime-A-Way.

Step 2: Sand the TubSand the tub with 400-600 grit wet sandpaper. There are a couple of rea-sons for this: • First, when you sand the surface

you’ll be removing any grime or gloss that’s left over from the cleaning.

• Second, when you rough up the surface, it will give you good ad-hesion for the coating.

Tip: When you’re sanding, it’s best to use wet sandpaper so the grit can be rinsed away while you’re working.

Step 3: Apply the PaintMix the epoxy and paint it on with a brush and roller.Note: Small bubbles will appear on the surface as you paint, but as it dries

Step 2: Remove the Existing Pop-Up DrainRemove the nut above the P-trap, and loosen the nut attached to the P-trap. Remove the P-trap. Remove the pop-up lever from the drain. Loosen

the lock nut holding the drain to the sink. Unscrew the drain and the drain flange.

Step 3: Secure the Faucet to the SinkPlaceTeflonpasteortapeonthefau-cet stems. If your faucet has a rubber gasket, install it on the base of the fau-cet before inserting the faucet stems in the appropriate holes in the sink. If your faucet doesn’t include a gasket, run a line of caulk under the faucet before installing it.

Secure the nuts holding the faucet to the sink. Tighten the nuts by hand then give them another quarter-turn with the basin wrench. Connect the supply tubes to the faucet stems. Ap-ply Teflon paste to the shutoff valvethreads, and tighten the coupling nuts to the faucet-supply stems. Do not over tighten.

Step 4: Attach the Drain Housing to the FlangeApply caulk to the underside of the drainflange,andpressitintothedrainhole. Place the lock nut on the drain housing, then place the metal washer and the gasket on the housing. Screw thedrainhousingtightlytotheflange.If the flangebegins to rotate, hold itsteady by inserting the plastic handle of your pliers

Step 5: Place the Pop-Up DrainDrop the pop-up drain into place, keeping the hole for the control pin toward the rear of the sink. Place the bail lever in the side hole of the drainassemblysothecontrolpinfitsthrough the appropriate hole in the pop-up drain. Set the drain rod into the hole in the faucet, and attach the connecting link to the faucet rod by tightening the attached screw. Make sure the pop-up is up and the drain rod is down, then attach the bail le-ver to the connection link, using the V-clip. The pop-up should go down when the lever is pulled up.

Step 6: Clean the Supply Tubes and Check for LeaksAttach the new drain extension to the P-trap. Clean the supply tubes by removing the aerator from the faucet and turning on the water. While the water is running, check for leaks. Shut the water off after you’re certain there are no leaks and replace the aerator.

its self-leveling properties will elimi-nate the bubbles.• Brush in one direction only. • Brush on a couple of smooth, thin

coats. • Feather the edges as you paint to

avoid a hard line between paint-ed areas.

• Apply two light coats one hour apart.

Step 4: Caulk the CornersCaulk around the tub, corners of the tile walls and around the corner shelves.Tip: You can use denatured alcohol for cleanup when caulking.

On the 18th to the 21st of September 2014 Botswana’s biggest convergence of building supplies and services will take place at the 1st Annual Airport Junction Builder’s Expo & PPC Con-struction Summit. 120 exhibitors rep-resenting all the various profiles within the local construction industry are ex-pected to be present at this first of its kind event which will mainly consist of private entities and include minor rep-resentation from government depart-ments and parastatals.

Event organiser Mr. Christian Maisva says the idea to host this event was born out of the desire to provide a platform that could offer a compre-hensive profile of Botswana`s con-struction industry to local consumers while simultaneously offering industry players an opportunity to meet, net-work and exchange ideas for the ben-efit of the industry as a whole.

The event’s main objective is to allow exhibitors to influence domestic con-sumer trends within Botswana’s con-struction industry by raising awareness about locally available products and services.

The vast majority of the exhibitors will be local entities with roughly 10% be-ing manufacturers and suppliers from South Africa, most of which are com-panies that have local distributors or have products they are looking to launch into the Botswana market.

The event is powered by PPC-Cement which is the platinum sponsor and as such will also be hosting the PPC Construction Summit on the 19th of September 2014. This exclusive con-ference will bring together key stake-holders in an effort to address some of the major concerns of the domestic construction industry and positively influence its development.

There will be two business days, the 18th and the 19th of September 2014, and two public days, the 20th and 21st of September 2014. On the first two days the activities will mainly be focused on VIP business networking and the PPC Construction Summit. On the public days there will be product launches, raffles, discount shopping on building materials and services, enter-tainment and good clean family fun.

The official opening will be conduct-ed by The Honourable Minister of In-frastructure, Science and Technology Johnie K. Swartz.

BUILDERS EXPO 2014

WHY YOU SHOULD ATTEND

www.airportjunctionevents.comAirport-Junction-Builders-Expo

Botswana's Biggest Convergence of Building Supplies and Services

Business Days:

18-19 September 2014

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20-21 September 2014

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» FOR THE CONSUMER:This Builder`s Expo provides an opportunity to experience, appreciate, com-pare and buy into the products and services offered at the show.

» FOR THE EXHIBITOR:The Airport Junction Builder`s Expo is designed to improve brand exposure for all industry brands represented by allowing all exhibi-tors to have a more interactive engagement with their costumers.

Airport Junction would like to invite to all Batswana to come and join us at the 1st Annual Airport Junction Builder`s Expo & PPC Construction Summit. Entrance is only P10 on the public days and those who would like to attend the VIP Business days can call +267 74242809. Tickets are available from Airport Junction Centre management or from any PPC-Cement retailers in Botswana where if you buy 10 bags of PPC Cement you get a free a ticket which will not only allow you entry into the Expo but also give you a chance to win fantastic prizes from PPC.

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18-21 september 2014

1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPOBotswana`s biggest convergence at building supplies & services h

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Certi�cate, Diploma and Advanced Diploma Reception & Front O�ce Services

+267 3933533/584+267 3933541

+267 73933533 71374587 / 72881887

Visit us at Stall 6318th - 21st September 2014



The premier supplier and local manufacturer of concrete

roof tiles in Botswana

ROOF TILESAPACHE

Bring your plan and we can estimate the quantity of the tiles and accessories that you

will require to roof your house or structure.

With the aid of in-depth knowledge and technological expertise, we help you estimate the quantity of tiles to suite your building needs thus making it easier for you to purchase an accurate amount to save money on roof tiles. We manufacture high quality concrete roof tiles which is being sold all over the country and abroad at factory prices.

We manufacture three different profiles namely the Double Roman, theTuscan and the Shingle. The tiles come in a range of 5 wonderful colours- Terracotta, Red, Charcoal, Brown and Tan. Special orders are also available like two tones, which is two colours mixed together, “farm style”. We also have V-ridges, Gable rolls, Hip starters and Rake Verges as accessories to cater for all your tilling needs.

To date Apache commands a formidable customer base comprising of members of the public, who very often are referred to Apache by building contractors for our strong high quality, never fading concrete roof tiles.

Apache Roof tiles have received the BOBS stamp of approval and are work-ing hand in hand with Botswana Bureau of standards to ensure that every tile is of excellent quality.

ROOFING IS NO LONGER A NIGHTMARE, FOR WHICH ONE HAS TO THINK BEYOND BORDERS.

Daniel Jansen Van Rensburg Managing Director+267 74474291+267 3902306+267 3902354 (FAX)

email: [email protected]: www.apacherooftiles.com

Plot 1126 Nkoyaphiri Mogoditshane Gaborone BotswanaPO Box AD671 ADDGaborone, Botswana

Advertorial

Established on the 8th of February 2008, we have evolved to become,what is today considered as one of the largest concrete rooftile manufacturers in Botswana. We offer a comprehensive choice ofinterlocking concrete tile designs to suit every building design fromprestigious high-end private dwellings to cost-conscious group hous-ing. Apache Roof Tiles started off with 11 Batswana employees andhave tripled to 31 since then empowering the locals.

V-Ridge

Double Roman

Terracotta Red Charcoal Brown Tan

TILES

FITTINGS & SUNDRIES

COLOUR RANGE

Tuscan Shingle

Gable Roll Rake Verge Hip Stater /V-Hip Stater

Operating in Botswana since 1897, Haskins is one of the oldest and most recognisable building material suppliers in the country, with four branches spread across the coun-try in Gaborone, Francistown, Palapye and Kasane. Boidus Focus spoke to Chief Manag-er Mr. Andrew Field to learn from his experi-ence on the do’s and don’ts of buying Chinese building materials.

How do you source your materials?Over time we have established strong relation-ships with strong international brands relative to our industry (Honda, Cobra, Dulux, Gedore, Geberit and Bosch to name a few). Quality is the main criteria in our purchasing strategy for new or alternative products. Once our tech-nical manager, who is a qualified engineer, is satisfied with a product, we then negotiate a competitive price.

Why don’t you source any materials from China? We do source certain materials from China, but we are very particular about who we deal with. There are many manufacturers in China producing quality goods but the challenge is finding them. We have invested an enormous amount of time and money into understand-ing the Chinese manufacturing environment and we have developed a network of reli-able and knowledgeable people in China to assist us. New suppliers are carefully vetted, new products are extensively tested and each shipment is checked before despatch. An increasing number of Batswana are going over to China to buy building materials and fit-tings. Why do you think this is happening? The lure of cheap materials is tempting when individuals are trying to make best use of their budget. The perception is that you

China or Local - Where to buy your building materialsby Keeletsang Dipheko & Kibo Ngowi


can source quality materials at a fraction of the cost.

What would you advise consumers to take into consideration when choosing between buying local or sourcing in China? Be careful. There is a saying: “you only get what you pay for…..” If there is a saving of more than 20% on what appears to be an equivalent prod-uct then it is probably inferior quality. Having been to China, we have experienced dealing with middlemen and the owners of factories. The danger of dealing with middlemen is that they are able to purchase the same product from different factories so the sample quality may differ greatly from the delivered quality. Lack of backup can also create maintenance problems and expenses. The initial cost is low, but you pay significantly more in the medium to long term. Consider plumbing fittings and taps for example. The taps may look no differ-ent from Cobra, but the quality of the brass and internal components could be inferior, and with the hard water in Botswana, will start cor-roding within 2 years. There is unlikely to be af-ter sales support from the Chinese supplier and you will end up having to replace the taps at a far greater cost than the initial saving.

Do you think that Batswana sourcing their ma-terials in China will negatively impact Haskins? No, we do not. It is easy to source materials in China but it is difficult to get it right. Our business and our strategy are to source qual-ity goods and our long history in Botswana is testament to that. We have experience in testing materials, assessing suppliers and knowledge of the local market. Some con-sumers will always source for themselves but most will rely on Haskins to provide quality goods with after sales backup.

The Botswana Bureau of Standards (BOBS) is the official body responsible for all issues re-lated to standardisation and quality assurance at the national level. Boidus Focus contacted the organisation to find out more about their role in ensuring the quality of building materi-als sold within the country.

Do building material suppliers have to under-go any quality inspections for their products?Suppliers of building materials do not un-dergo quality inspections unless the prod-ucts they supply are covered by manda-tory standards and/or are covered under the Standards Certification Scheme. Most of the standards for building materials are volun-tary, which means they are not enforced by BOBS. However, government regulators such as the Building Regulations Board can en-force building standards through the nation-al building regulations. Outside mandatory standards and the certification scheme, the role of BOBS is to make relevant standards available for the building industry profes-sionals to use to verify quality of materials used in projects.

INTERVIEW WITH BOTSWANA BUREAU OF STANDARDS (BOBS)

INTERVIEW WITH HASKINS

Are building materials coming from outside the country inspected for quality? Not all building materials imported are in-spected for quality. It is only those listed in the Standards (Import Inspection) Regula-tions (SIIR) that are inspected for quality and compliance with the specified mandatory standards by Botswana Bureau of Standards.

What actions can consumers within the country take if they discover they have been sold defective materials? Consumers can report such issues to the De-partment of Trade and Consumer Affairs.

Does this apply to both materials bought with-in and outside the country? Department of Trade and Consumer Affairs would be in a better position to respond.

What would you advise consumers to consider in ensuring that the building materials they pur-chase are of a satisfactory level of quality?Consumers should insist on materials that have been certified by Certification bodies such as BOBS, SABS, and others.

BOIDUS FOCUSAugust 2014

The premier supplier and local manufacturer of concrete

roof tiles in Botswana

ROOF TILESAPACHE

Bring your plan and we can estimate the quantity of the tiles and accessories that you

will require to roof your house or structure.

With the aid of in-depth knowledge and technological expertise, we help you estimate the quantity of tiles to suite your building needs thus making it easier for you to purchase an accurate amount to save money on roof tiles. We manufacture high quality concrete roof tiles which is being sold all over the country and abroad at factory prices.

We manufacture three different profi les namely the Double Roman, theTuscan and the Shingle. The tiles come in a range of 5 wonderful colours- Terracotta, Red, Charcoal, Brown and Tan. Special orders are also available like two tones, which is two colours mixed together, “farm style”. We also have V-ridges, Gable rolls, Hip starters and Rake Verges as accessories to cater for all your tilling needs.

To date Apache commands a formidable customer base comprising of members of the public, who very often are referred to Apache by building contractors for our strong high quality, never fading concrete roof tiles.

Apache Roof tiles have received the BOBS stamp of approval and are work-ing hand in hand with Botswana Bureau of standards to ensure that every tile is of excellent quality.

ROOFING IS NO LONGER A NIGHTMARE, FOR WHICH ONE HAS TO THINK BEYOND BORDERS.

Daniel Jansen Van RensburgManaging Director+267 74474291+267 3902306+267 3902354 (FAX)

email: [email protected]: www.apacherooftiles.com

Plot 1126 Nkoyaphiri Mogoditshane Gaborone BotswanaPO Box AD671 ADDGaboroneBotswana

Advertorial

Established on the 8th of February 2008, we have evolved to be-come, what is today considered as one of the largest concrete roof tile manufacturers in Botswana. We offer a comprehensive choice of interlocking concrete tile designs to suit every building design from prestigious high-end private dwellings to cost-conscious group hous-ing. Apache Roof Tiles started off with 11 Batswana employees and have tripled to 31 since then empowering the locals.

V-Ridge

Double Roman

Terracotta Red Charcoal Brown Tan

TILES

FITTINGS & SUNDRIES

COLOUR RANGE

Tuscan Shingle

Gable Roll Rake Verge Hip Stater /V-Hip Stater




Annemarie Featherstone is a glass and alumini-um expert with 32 years worth of industry expe-rience behind her. “Glass is my passion,” she says. “It’s what I do best and I always enjoy designing and being creative on that aspect of any build-ing.” She’s employed by PG Group as part of the GSA (Glass South Africa) Project Team and in her role as a project manager she assists profession-als and consumers with the correct glass specifi-cations “fit for purpose” for each project.

GSA is a corporate member of the Association of Architectural Aluminium Manufacturers of South Africa (AAAMSA), a non-profit organisa-tion which acts as the ‘watch dog’ of the South African building industry. Featherstone is cur-rently the Chairperson of AAAMSA and part of the organisation’s mandate is to assist the South African Bureau of Standards (SABS) to write

INTERVIEW WITH GLASS EXPERT ANNEMARIE FEATHERSTONE specifications to be passed by legislation in or-der to assist the building industry. Most recent-ly, a regulation on energy efficiency was passed in South Africa and in Featherstone’s words, “it actually puts the onus onto the architect to be the person to do a sign-off on any commercial or residential dwelling. In other words they are the responsible person that whatever is speci-fied has to go into that building.”

The regulation is SANS 10400 PART XA and the working document is SANS 204 (SANS stands for South African National Standards). The architect works from the SANS guidelines when drawing plans, making sure that the plans comply before they are submitted at Council. Once they are approved the architect hands them over to the contractor but the architect is still responsible to sign off that whatever is built is in accordance with the plans originally proposed at the Council.

The legislation deals specifically with how the glass used affects the energy efficiency of a building.

She advises consumers to consult with the ar-chitect and the mechanical engineer respon-sible for their building to give them the correct criteria of what is required for the energy effi-ciency of that particular building. Featherstone adds that glass is just one of many energy ef-ficiency factors that need to be considered: “It doesn’t help to just do the glass and the aluminium compliance; all your other things need to comply as well. So it is not only a stand-alone; it is actually a combination of the whole building sector to get the proper solution for the building.”

Delta glass is part of Featherstone’s employer the PG group and as a project manager she was tasked with looking after the Botswana area so she recently visited the country to conduct some training on glass, energy efficiency and technical issues.

Based on her general observations Feather-stone says that the state of glass and buildings in the country is a mixed bag: “My observation

“Glass has a huge effect on a building’s energy efficiency,” says Featherstone. “In the long run it can actually save you quite a bit of money, especially if you have the right configurations in double glazing. You can reduce your energy bill by at least two thirds of your monthly consumption if you use it in the way that it’s designed to be used.”

Can Botswana Grow its Glass Production Industry?by Kibo Ngowi


LETS TALK ROOFING……Timber trusses: Past, present & the future.

Timber is probably the most versatile material known to man. Its many useful properties make it suitable for use in the manufacture of many industrial and household products as well as for structural applications.

Timber is a renewable resource- it is grown in forests which, if managed properly, the trees can be harvested and replanted or re-grown. It is also a durable product –timber joinery can last for an average of 35 years. It is easy to reuse, recycle or breakdown into compost after use. It is also highly efficient in use and is an excellent insulator. And last but certainly not least, timber adds a timeless, rich and beautiful organic aesthetic finish to any build-ing it graces. By strategically harvesting individual trees, managed forests remain a natural eco-system capable of sequestrating massive amounts of carbon, whilst maintaining the valuable biodiversity balance of our planet.

Trusses can be described as a number of timber members joined together in a triangular pattern to form a sturdy frame to carry the roof covering and all others loads on the roof. Fabricators are respon-sible for timber quality control, design knowledge, manufacturing quality procedures, site documenta-tion and inspection of the installed trusses to check adherence to drawings and erection details.

It is therefore crucial to ensure that for every build-ing to be roofed with trusses properly to acceptable safe standards, a roof truss design is acquired for the building.

www.cnonline.co.bw

We are Botswana’s leading corporate fur-niture supplier and have been in operation since 1989. We hold the exclusive Botswa-na franchise for CN Business Furniture, the prestigious South African company with 9 branches in South Africa.

Having worked for years with interior de-signers, corporate layout specialists and on large corporate projects, we have now rebranded and redesigned our own space here in Gaborone. Whilst in the past we re-lied on catalogues and design software to display our furniture to customers, we now have a dedicated showroom to display our ranges in all their full-size glory.

Please allow us the opportunity to wel-come you into our working haven and to introduce you to our ranges of: executive

and operator desking and seating; recep-tion furniture; soft seating; boardroom furniture; screens and partitions; training and educational furniture; restaurant, cafe and canteen furniture and storage and fil-ing systems.

Our furniture is of the highest quality, with most products holding a 5 year warranty. We showcase ranges for all budgets includ-ing pieces designed and imported from Italy. We provide delivery and installation, so that you can order in the knowledge that your furniture will be set-up in your office to your exacting specifications.

We understand that you spend an average of 264 days at work each year. Let us help you spend those days surrounded by the beautiful office furniture you deserve.

Reliance Office Supplies

RELIANCE OFFICE SUPPLIES (PTY) LTD t/a CN (Cecil Nurse) BUSINESS FURNITUREPlot 1247, Haile Selassie Rd, Old Industrial, Gaborone | P.O. Box 1084 Mogoditshane, Botswana Tel: +267 3956578 | Fax: 3974377 | Email: [email protected]

in Botswana is that there are some really good materials out here and there are also some re-ally bad materials. I have for instance seen a building in town where the glass is glazed the wrong side around and that is not going to be energy sufficient for the building at all because the product is used incorrectly.

Part of my portfolio is not only to specify the right product but also to educate the installer as to how to use the product.” She does believe that it would go a long way for the Botswana Bureau of standards (BOBS) to adopt similar legislation to that of SABS, adding that the challenge for any country is for the legislation to keep up with the constantly evolving tech-nology and that both South Africa and Botswa-na could improve in this regard.

Featherstone intends to arrange a conference for architects and quantity surveyors in Bo-tswana during which she will do a presentation on issues such as product knowledge and en-ergy efficiency. “Our focus is to enrich people and to enrich the architect on what is the latest technology out there, and there are so many wonderful products to use as long as you use them in the right configurations,” says Feather-stone. “So that is my focus for next year. It’s to come and do a conference for the architects, quantity surveyors, installers and anybody else that’s interested.”


Boidus FeatureSeptember 2014

P.O. Box 1047, Mogoditshane Gaborone Plot 23 & 24 Mogoditshane Industrial Tel: (267) 397 4907 Fax: (267) 390 1748

...Quality guaranteed

Prefabricated trusses now made in BotswanaManufacturers of Channels, Purlins, Battens & Trusses

Benefits of working with Dezzo Roofing solutions: » Light-weight aluminium and zinc coated steel » Custom-made to installation coated steel requirements » Sure economical and cost effective solutions » A locally based, citizen owned company manufacturing

zinc aluminium, lightweight roofing systems in Botswana. » Designed by registered professional structural engineers » No rotting, warping or terminte infestation » Corrosion-resistant » Lightweight - easily transported in knock down kit form or

assembled » Ideal for Residential, Civic, and Industrial buildings

The Drive to Position Francistown as a Centre of Investmentby Kibo Ngowi


Key decision makers from the private and public sectors descended upon Francistown between the 19th and 21st of August for the Francistown Investment Forum, a conference aimed at facilitating discussions to position the city as the lead economic hub in Southern Africa by 2022. These were some of the key presentations delivered at the conference:

Welcome Address – His Worship the Mayor of the City of Francistown Hon. James Kgalajwe.

Official Opening – His Honour the Vice President of the Republic of Botswana Dr. Ponatshego H.K Kedikilwe.

FIF14 Marketing Director Mr. Gadzanani Makopola

Rep-Ministry of Trade and Industry Mr. Mphethe

Botswana Housing Corporation CEO Mr. Reginald Motswaiso

Mr. Boyce Sebetela

Botswana Investment and Trade Centre (BITC) CEO Mr. Letsebe Sejoe


AdvertisingPage 19


Professional PracticePage 20

In this edition of Boidus Focus, we will be looking at the sixth edition amend-ments to the appointment and author-ity of principal agents and agents, as well as the effects for both the em-ployer and the contractor in the case of the principal agent or the agent not performing in terms of the contract.

The definition of “principal agent” has not changed much from the fifth edi-tion of the JBCC (edition 5.0 July 2007) to the sixth edition (edition 6.1 March 2014). The definition of “agent” in the fifth edition is:

“A party named in the contract data and/or appointed by the employer to deal with specific aspects of the works.”

The sixth edition defines an “agent” as:

“An entity appointed by the employer to deal with specific aspects of the works.”

In the fifth edition, clause 5.0 sets out the terms and conditions surrounding the employer’s agents. Clause 6.0 does so in the sixth edition. We have pre-pared a table setting out the compari-son between the fifth edition and sixth edition processes for ease of reference.

The motivation behind the changes made between the fifth and sixth edi-tions, arose from an inherent discontent expressed by contractors, with regards to principal agents that fail to execute their duties in terms of the contract. This resulted in contractors not know-ing where they stand when, for exam-ple, claims for extensions of time have been submitted and the principal agent fails to determine such claim. The fifth edition contained no express provi-sions which entitle a contractor to refer a matter to adjudication or arbitration when a principal agent failed to act in terms of the contract.

by Euan Massey and Natalie Reyneke

JBCC Principal Agents and Agents

At the outset (sub-clause 5.1), the em-ployer warrants that the principal agent, as stated in the contract data, has full authority and the obligation to act in terms of the agreement. In compari-son, sub-clause 6.1 of the sixth edition includes that the principal agents has authority “to bind” the employer. The reason for the addition of the words “to bind” the employer by the drafting committee was based on the fact that principal agents were often not aware of the effect that their actions had on the employer. By setting it out clearly in sub-clause 6.1, the committee hopes to drive the point home that the actions of the principal agent bind the employer.

The addition, in clause 6.1, of the sen-tence “the principal agent has no au-thority to amend this agreement” has been included. This is simply to bring the sixth edition in line with other stan-dard form contracts, which set out, for example, that the engineer has no au-thority to amend the agreement.

Sub-clause 6.2 of the sixth edition empowers the employer to appoint agents, which agents are listed in the contract data. The fifth edition allows the employer to appoint further agents with the contractor being informed

thereof. This does not seem to be al-lowed under the sixth edition. However, after clarifying this point with a member of the drafting committee, it was not the intention of the drafting committee that all agents to be appointed under the contract are required to be listed in the contract data. In the sixth edition, the employer may appoint agents, as long as notice of such is given by the employer to the contractor. The princi-pal agent is to specifically give notice to the contractor where authority to issue contract instructions and perform du-ties for specific aspects of the works is delegated to agents.

Clauses 5.3.1 – 5.3.3 of the fifth edition have been removed in the sixth edition. The reason behind this removal was, firstly, based on the efforts of the draft-ing committee to shorten the contract, and secondly, resulting from the fact that the duties of the principal agent form part of his professional appoint-ment and such duties are already set out in various clauses of the contract. When the principal agent delegates any of these duties, he notifies the con-tract under clause 6.2.

Clause 6.5 of the sixth edition intimates that where an agent fails to act or is un-able to act, the employer is required to appoint another agent. On initial read-ing of clause 6.5, it appeared to the writer that the use of the word “agent” in the clause excluded principal agents from the clause’s operation. This does not however seem to be the intention of the drafting committee, and it was intended for the word “agent” to in-clude reference to a “principal agent” as well. The writer is not convinced that this intention has been clearly set out, taking the definitions of “agent” and “principal agent” into account.

To deal specifically with contrac-

Clause 5th Edition – process Clause 6th Edition – process

5.1 Employer warrants that principal agent has full authority to act in terms of the agreement.

6.1 Employer warrants that principal agent has full authority to act and bind the employer in terms of the agreement.

Employer shall appoint agents as stated in the contract data and may appoint further agents with the contractor being informed thereof.

Employer may appoint agents to deal with specific aspects of the works. [CD]

Principal agent only party having authority to bind the employer, except where agents issue contract instruction under delegated authority [5.3.2].

Principal agent has full authority to act and bind the employer in terms of the agreement.

Principal agent only party empowered to [5.3]:• Issue contract instructions (except as provided

for in [5.3.2]);• Delegate to other agents authority to issue

contract instructions and perform such duties as may be required for specific aspects of the works, provided that the contractor is given notice of such delegation

• Receive notices on behalf of employer

Principal agent to notify contractor where such authority to issue contract instructions and perform duties for specific aspects of the works is delegated to agents.

Should principal agent or any agent be unable to act or cease to be an agent, the employer shall inform the contractor of the new principal agent or agent to be appointed.

Where any agent fails to act in terms of the delegated authority, the contractor shall give notice to the principal agent to rectify such default… where such default has not been recti-fied the contractor may give notice to suspend the works.

Where any agent fails to act, is unable to act or ceases to be an agent, in terms of this agreement, the employer shall appoint another agent within 5 (five) working days of the date of such notice from the contractor.

Sanction for failure by the employer to appoint a principal agent / agents [5.1-2.4] is termination [38.1.2].

Sanction for failure by the employer to appoint another principal agent / agents [6.5] is suspen-sion and termination [28.1.5] and [29.14.6].

tor’s concerns regarding the principal agent’s failure to act in accordance with the contract, the drafting committee have included the words “fails to act” in numerous additional clauses of the sixth edition. Clause 6.5 is the first of such clauses.

The most significant of the changes to the fifth edition, with regard to the prin-cipal agent’s failure to act, are the chang-es to the dispute resolution clause.

In the fifth edition, contractors believed that a contractor could only refer a “disagreement” to the dispute resolu-tion process. By the inclusion of the phrase “the action or inaction of the employer (or principal agent or agent)” into clause 30.1, contractors could im-mediately refer a failure by the principal agent to act (which may ultimately re-sult in, for example, a claim for an ex-tension of time being deemed refused) to the dispute resolution process. Ul-timately, contractors would have pre-ferred to change the words “deemed refused” to “deemed accepted” but the drafters felt that this would place too large of a burden on employers.

ConclusionAt the end of the day, contractors were frustrated with principal agents not acting in terms of the contract. They believed that they had no recourse, and were left hanging to figure it all out at the end of the contract. As a re-sult, the drafting committee have used words which make contractors aware of the fact that they can act against the employer as a result of the prin-cipal agent’s inaction. Hopefully, the clarity provided to contractors in the sixth edition, will result in contractors confidently enforcing their contractual rights, and employers ensuring that they appoint competent and punctual principal agents and agents.

by Othata Batsetswe / Financial Inclusion Specialist & Project Coordinator / Principal Finance Administrator

How F/town City Can Exploit PPPs for Infrastructure DevelopmentCONTINUED FROM PAGE 07but, in line with the definition given above, the operation of the asset is always the responsibility of the private sector party. Each of these models allocates different levels of risk to the private sec-tor party.

Depending on the needs of Francistown City these three models can be considered:

Build–Develop–Operate: The private sector par-ty buys or leases an existing asset from a public agency, invests capital to enhance and develop the infrastructure, and then operates it according

to the terms of a contract with a public agency.

Build–Own–Operate: The public agency awards a single contract which bundles the construction and operation of the infrastructure to a private en-tity. The public agency is responsible for specifying the design of the project, but ownership of the as-set remains with the private agency once it is built.

Build–Operate–Transfer: The private entity is responsible for the construction of the infra-structure according to the design specifications agreed to by the public agency and subsequently operates the infrastructure for a specified period

of time under a contract or franchise agreement with the agency. At the conclusion of the con-tract, ownership and operation of the infrastruc-ture is transferred to the public agency.

There is need for keenness on the part of the city managers to ensure that the greatest benefit is to the customers through efficiency gains from such partnerships while costs remain affordable. The signing of these deals should also conform to the rules and regulations governing infrastruc-ture developments at a national level. At the end of the day, town councils may have to corpora-tize (Corporatisation is changing the structure of

a government or semi-government body so that it operates on business lines, with a mandate to trade profitably and an obligation to account to the government for its financial performance) to maximise the benefits from these noble ven-tures. Corporatisation will ensure that councils continue to enjoy the credit ratings assigned to the government which will make them even more creditworthy and attractive for joint partnerships. Corporatisation also provides a better model to privatisation. Corporatisation and privatisation provides the opportunity to do it right.

The writer writes in his personal capacity


Editor’s Note / Guest ColumnistPage 21

MANAGING EDITORH. Killion Mokwete

DEPUTY EDITORKibo Ngowi

STAFF WRITERKeeletsang P. Dipheko

ACCOUNTSNgwewabo Mokwete

ART DIRECTORBridget T. MacKean

GRAPHICS ASSISTANTTaelo Maphorisa

SALESTara Michelle TheronTebogo SekwenyaneThabo Sarona

DISTRIBUTIONMartha Rooi

GUEST COLUMNISTSEuan Massey & Natalie ReynekeOthata BatsetswePhenyo MotlhagodiReuben LekorweTshepiso MotlogelwaBO

IDU

S TE

AM

Building materials are literally the build-ing blocks of any construction project. Whether one is building a small one-roomed project or a grand development, a trip to the building material outlet will set you back at least a few thousand Pula. As Botswana turns 48, the history of our building materials remains divided be-tween indigenous materials used pre-dominantly in vernacular construction and modern building materials dominat-ed by foreign imports from various coun-tries across the world.

These imports have served us well over the years, even before the Botswana Bu-reau of Standards (BOBS) came into exis-tence, when there was a lack of local qual-ity standards. A sort of unwritten law for selling and trading of quality imports ex-isted across the old material dealers who set up depots, general dealers and coop-eratives across the country. Botswana’s development landscape has therefore largely taken care of itself over the years without an organized building materials dealers association. However, the status quo has recently been shaken by the ar-rival of new material dealers on the scene.

The arrival of Chinese building contrac-tors and subsequently the Chinese mate-

BOIDUS F O C U S SUBSCRIBE NOW

to Botswana’s BUILT ENVIRONMENTN E W S P A P E R

To get your copy delivered to your door, send your details to:

KILLION[GABORONE]t +267 75505291e [email protected]

WADA[FRANCISTOWN]t +267 71480679e [email protected]

by H. Killion Mokwete, RIBA Chartered Architect

Editor’s Note: Something must be done to assure Quality in Building Materials Supplies

rial imports has spiked the waters. Seeds of suspicion regarding quality have been sown and building consumers with direct access to cheap materials from Chinese suppliers are beginning to ask questions as they discover that their buildings are deteriorating faster than expected; the biggest test that the Chinese material im-ports face is to prove their quality. The de-terioration of the majority of public proj-ects constructed by Chinese contractors is not helping the situation.

The arrival of BOBS and the development of material quality standards is a welcome improvement, but the pace of setting out these standards is too slow. During the years that BOBS has been operational, a lot of unscrupulous suppliers looking to make a quick buck have cropped up and defrauded unsuspecting consum-ers. A quick way forward in arresting the situation needs to be put in place and this should involve the introduction of standards with effective monitoring tools. Over and above this, the local building material suppliers need to come together to protect the industry from the invasion of poor quality products. A building mate-rials suppliers association with the interest of the industry and consumers at heart needs to be established.

CONSUMER RIGHTS CONCERN-ING DEFECTIVE PRODUCTS

According to E Khan, contract of pur-chase and sale is a mutual agreement that imposes reciprocal obligations on the parties – the buyer and the seller. The essence of the contract is that there will be an agreement on the identity of the thing sold and the price to be paid for it and the parties are at liberty to agree on other terms though not obliged to do so.

Each party to the contract will be bound by those obligations which he or she has expressly or impliedly undertaken or those that are imposed by statute or the common law.

The primary obligations of the seller are to take due care of the subject matter of sale until it is handed over to the purchas-er; to make it available to the purchaser; and to transfer ownership if he has it or can procure it. In appropriate circum-stances the seller is obliged to warrant that the item sold is fit for the purpose for which it is sold; that it is of reason-able quality and that it is free from latent defects. A latent defect consti-tutes an impairment of the usefulness of the thing sold and is not discover-able upon reasonable inspection by an ordinary person (not an expert).

This latter obligation on the part of the seller, however, arises by operation of the law, regardless of the intention of the par-ties at the time of contracting although it may be excluded by agreement. In cases where the warranty has not been exclud-ed, the seller has a duty to disclose and to assume responsibility for all the latent defects that render the item sold either wholly or partially unfit for the purpose for which it was bought.

The usual remedies available to the pur-chaser in the event of breach of the sell-er’s duty to warrant against latent defects are the actioredhibitoria, an action for cancellation of the contract and restora-tion of each party to his or her original position as far as possible and actioquan-timinoris, an action for the reduction of the purchase price. In the latter case the purchaser chooses the option to keep the defective item. The purchaser will therefore be entitled to the difference be-tween the purchase price and the value of the item in its damaged or defective state. Apart from the above, compensa-tory damages may also be claimed by the purchaser in appropriate circumstances.

There is also the Consumer Protection Act, administered under the Ministry of Trade and Industry. It establishes the Consumer Protection office to provide for protection of the interests of consumers

by means of investigation, prohibition and control of unfair business practice; to disseminate consumer related informa-tion and to provide for matters connect-ed with and incidental thereto.

Imported MaterialsThere have been news stories released al-most on a daily basis relating to the safe-ty and the quality of Chinese products. Despite this, many Batswana, particularly in this era where construction activity is growing, continue to import building ma-terials from China. We have now accepted that global trade in manufactured goods has become a fact of life but Botswana citizens must have basic information that will empower them to make informed de-cisions about potential risks and how to manage and mitigate them.

Enforcing the agreements of sale and availing oneself of the remedies dis-cussed above in the case where the par-ties are in Botswana, the contract is con-cluded in Botswana and the item sold is also in Botswana, may not present any difficulties. However it’s a different ball game when one is dealing with foreign suppliers or manufacturers. The Con-sumer Protection Act has no extra ter-ritorial application. With foreign suppli-ers who do not have assets in Botswana, courts normally do not have jurisdiction to adjudicate on the issues that may arise between the parties to the contract thus making it difficult to enforce such contracts in general and even harder to deal with issues that are not explicitly set forth in the contract.

Consumers should therefore have more detailed contracts and specification when dealing with foreign suppliers. Some of the issues that could be includ-ed in such agreements are the remedies and damage provisions acceptable to the consumer. For example, a consumer may not want a supplier to disclaim con-sequential damages or any damages at all or that the only remedy available is replacement. In case you are a retailer, you require indemnity from the supplier or manufacturer to hold you harmless in the event of a product liability claim or law suit. Do you want to personally de-fend the case or do you want to make it clear you control the defence? Further-more, one needs to think about how he/she is going to enforce the agreement if necessary; will you have to sue in China? If so, do you possess the funds to do so? Are the laws there written in English or mandarin or any other language? Will they agree to submit to jurisdiction in Botswana? If they submit, which law should be applied by our courts? These are some of the questions a consumer needs to ask in order to make an in-formed purchasing decision.

* Reuben Lekorwe is a partner at Baoleki At-torneys, a firm of attorneys that specializes in commercial, corporate law and compli-ance and Regulation.

by Reuben Lekorwe*

Boidus (Pty) Ltd.P. O. Box 50097, GaboronePlot 2930, Ext. 10, Gaboronet ew

+267 3182209 / [email protected]

www.boidus.co.bwFind Boidus on: Visit our website:


Professional PracticePage 22

by Boidus Admin

Bonds are provided as useful means of creating financial security for the Employer for the Contrac-tor’s failure to perform his contractual obligations. Generally, a bond is an arrangement under which the performance of one party (A) to another party (B) is backed up by a third party (C). What hap-pens is that C promises to pay B a sum of money if A fails to fulfil the relevant duties. In this context A is commonly known as the principal debtor or simply principal; B is called the beneficiary; and C is called the bondsman, surety or guarantor.

In the construction context, such back-up is likely to come from one of the two sources below: (a) Parent Company Guarantee – the contractual performance of one company within a corporate group is underwritten by other members of the group; or (b) Bonds – normally provided (at a price) by a financial institution such as an insur-ance company or a bank.

The obligations most commonly guaranteed by bonds or guarantees are as follows:• Payment: For example, the Employer’s duty to

pay the Contractor or the Contractor’s duty to pay a Sub- Contractor. A Contractor may also provide a bond in favour of the Employer, in return for an early release of retention money or, indeed, completely replacing the retention provisions. If defects are then found in the building, the Employer can call on the bond, rather than the retention money, to finance the necessary remedial work.

• SpecificObligations: Such as a promise by a Sub-Contractor not to withdraw a tender. This may be of practical importance where, say, a main Contractor tenders on the basis of bids re-ceived from domestic subcontractors. If the main Contractor, having been awarded the job, finds that a Sub-Contractor’s bid is no longer open for acceptance, the main Contractor may then have

to pay a significantly higher price to another sub-contractor for that part of the work.

• Performance of the contract in general:This is the most common type of bond, in which every aspect of the Contractor’s perfor-mance is guaranteed. The contract frequently requires a bond, normally to a level up to 10% of the contract sum.

The usual form of bond used in Botswana is a Per-formance Bond which guarantees the Contrac-tor’s performance of the contract with an under-taking to be bound in a specified sum until (and unless) such performance is achieved. Upon the Contractor’s failure to perform in full, the Employ-er is entitled to call on the surety (or bondhold-er) to make good the loss, up to the maximum amount of the bond. Since a bond is a contract of guarantee, it requires to be evidenced in writ-ing. Further, since the Employer gives no consid-eration (save that the Contractor must include the cost of the bond in his price for the works) the bond must be made by deed. The construction contract and the bond are inter-related, since the bond is a tripartite transaction involving the par-ties to the construction contract and the bond.

Nonetheless the bond is a separate and wholly independent legal document enjoying autonomy from the construction contract. In that sense the bond is independent of the construction contract.

Performance bonds are traditionally categorized as being of two types. The first type is the‘con-ditional’ bond, where the surety agrees to pay if and when certain specified conditions are satis-fied. The most likely condition would be any de-fault (i.e. breach of contract) by the Contractor. The principal characteristics of this type of bond are namely:

• It is a contract of guarantee whereby the surety (guarantor, i.e. the Insurance Company / Bank) accepts ‘joint and several’ responsibility for the performance of the Contractor’s obligations under the engineering and construction con-tract (i.e. the principal contract); and

• The surety only becomes liable upon the op-eration of the ‘trigger clause’, i.e. proof of a de-fault/breach of the terms of the principal con-tract, and the Employer (beneficiary) sustaining loss as a result of such default/breach.

The second type of bond is the ‘unconditional’ bond which entitles the beneficiary to call upon the surety for payment whether or not there has been default under the principal contract, provid-ed only that the call is not fraudulent. These bonds exhibit the following characteristics:

• It is a pledge by the surety (guarantor, i.e. the Insurance Company / Bank) to indemnify the beneficiary (i.e. the Employer) merely when de-mand is made upon him by the latter;

• It entitles the beneficiary to call upon the sure-ty for payment whether or not there has been default under the principal contract provided only that the call is not fraudulent

The duration of a guarantee depends upon the terms in which it is given. If no specific time limit is mentioned, then a surety for the Contractor’s per-formance is not released by completion or even by the final certificate but remains liable, as does the Contractor, for any breach of contract which comes to light within the relevant limitation period.

Generally, as a rule, a performance bond remains in force until the stated discharge date which is usu-ally either after practical completion of the works or after making good any defects. However, should the practical completion or making good of de-fects occur earlier than the bond date, the bond cannot be recalled or withdrawn unless the client agrees to an earlier release date. Furthermore, a performance bond is not an insurance policy which normally is a contract of indemnity under which the insured is indemnified in the event of loss, sub-ject to the adequacy of the sum insured.

Moreover, there are three parties under a perfor-mance bond (i.e. the Contractor, the client and the surety company) as opposed to two under an insurance policy (i.e. the insurer and the insured). Once a bond is issued, it cannot be cancelled un-til the stated discharge date or until the subject matter of the indemnity has been completed satis-factorily, however, an insurance policy can be can-celled before its expiry date.

The financial limits of liability are invariably ex-pressed in the contract of guarantee. It should be made clear, in order to avoid disputes, whether in-terest on money due, and legal costs, are included in the overall limit. It is also worth noting that some bonds provide for the entire sum guaranteed to become payable on any breach by the principal, re-gardless of how serious or trivial that may be. If this is the case, the provision is likely to be struck down as a ‘penalty’ and the beneficiary will be entitled only to so much of the sum as will compensate for the actual loss which has been suffered.

Understating A Performance Bond, Its Purposes And Implications?

ATTENTION CONTRACTORSLET US TAKE YOUR RISK

Tel: +267 31 88015Plot 142, Unit 1Kgale Mews [Opposite Game City, next to ē voice]

www.beci.co.bw

BECI is the only credit insurer in Botswana, set up in 1996. The primary function of BECI is the granting and development of credit insurance. The company has evolved through time into issuance of other related products, such as Construction Guarantees and related guarantees. BECI has been instru-mental in the development of credit discipline in the country.

BECI is a subsidiary of Botswana Development Corporation

BECI provides guarantees to ensure that your con-tract will be performed according to its terms. In the event that the contract is not performed, BECI will pay damages if the contractor cannot.

BECI surety bonds, or guarantees, include:• Bid/tender bond• Performance bond• Advance payment bond• Retention bond• Letters of intent

BECI also provides insurance cover for:• Contractor’s All Risk, and• Worker’s Compensation

With construction insurance from BECI, you can get on with your contract works without having to worry about the risks that often come with a project.

BUILD WITH CONFIDENCE

LOSS, DAMAGE AND INJURY

For over 15 years, BECI has been helping entrepreneurs in Botswana to minimise credit risks, improve cash flow and focus on what really matters: growing their businesses.


AdvertisingPage 23

PO Box AD 214 ADD Gaborone Botswana

Tel: (+267) 3925395 Fax: (+267)3925350

Company Profile Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of experience over the years in Botswana Architectural Glass and Aluminium supply market. Delta Glass & Aluminium is Botswana’s foremost supplier of an enormous variety of specialised glass products and Architectural aluminium applications such as Shop front systems, Curtain Wall, windows and doors, shower cubicles, skylight and Louvers and numerous other products that complement the Fenestration Industry. As an active member of the Botswana Bureau of Standards technical advisory committee we at Delta Glass & Aluminium combine the technical expertise of the most experienced glass and aluminium designers and engineers in Southern Africa to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with systems and products that have been carefully engineered and thoroughly tested to comply with the most stringent performance specifications. Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distribution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.

Suppliers of:Architectural Aluminium & Glass, Curtain Wallings, Shower and Patio Doors

Plot 53609, Unit 7Gaborone West IndustrialGaborone, Botswana

Tel: (+267) 3925384 / 95Fax: (+267) 3925350Cell: (+267) 71321032Email: [email protected]

COMPANY PROFILE

Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of experience over the years in Botswana Architectural Glass and Alu-minium supply market. Delta Glass & Alu-minium is Botswana’s foremost supplier of an enormous variety of specialised glass products and Architectural aluminium applications such as Shop front systems, Curtain Wall, windows and doors, shower cubicles, skylight and Louvers and numer-ous other products that complement the Fenestration Industry.

As an active member of the Botswana Bu-reau of Standards technical advisory com-mittee we at Delta Glass & Aluminium combine the technical expertise of the most experienced glass and aluminium designers and engineers in Southern Afri-

ca to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with sys-tems and products that have been care-fully engineered and thoroughly tested to comply with the most stringent perfor-mance specifications.

Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distri-bution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.

PO Box AD 214 ADD Gaborone Botswana

Tel: (+267) 3925395 Fax: (+267)3925350

Company Profile Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of experience over the years in Botswana Architectural Glass and Aluminium supply market. Delta Glass & Aluminium is Botswana’s foremost supplier of an enormous variety of specialised glass products and Architectural aluminium applications such as Shop front systems, Curtain Wall, windows and doors, shower cubicles, skylight and Louvers and numerous other products that complement the Fenestration Industry. As an active member of the Botswana Bureau of Standards technical advisory committee we at Delta Glass & Aluminium combine the technical expertise of the most experienced glass and aluminium designers and engineers in Southern Africa to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with systems and products that have been carefully engineered and thoroughly tested to comply with the most stringent performance specifications. Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distribution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.

Suppliers of:Architectural Aluminium & Glass, Curtain Wallings, Shower and Patio Doors

Plot 53609, Unit 7Gaborone West IndustrialGaborone, Botswana

Tel: (+267) 3925384 / 95Fax: (+267) 3925350Cell: (+267) 71321032Email: [email protected]

COMPANY PROFILE

Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of experience over the years in Botswana Architectural Glass and Alu-minium supply market. Delta Glass & Alu-minium is Botswana’s foremost supplier of an enormous variety of specialised glass products and Architectural aluminium applications such as Shop front systems, Curtain Wall, windows and doors, shower cubicles, skylight and Louvers and numer-ous other products that complement the Fenestration Industry.

As an active member of the Botswana Bu-reau of Standards technical advisory com-mittee we at Delta Glass & Aluminium combine the technical expertise of the most experienced glass and aluminium designers and engineers in Southern Afri-

ca to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with sys-tems and products that have been care-fully engineered and thoroughly tested to comply with the most stringent perfor-mance specifications.

Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distri-bution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.


AdvertisingPage 24

As most Batswana are facing the challenge of accommodation, Botswana Housing Corporation (BHC) is currently encouraging its tenants to purchase their rented houses through its “Selling to Sitting Tenants Campaign”.

During the exhibition at the 2014 Consumer Fair, BHC informed visitors that their mandate is to provide accommodation to Batswana and this campaign empowers Batswana to unlock their net worth through home ownership.

BHC Marketing Manager, Ms. Pinkie Tau said BHC gives people the chance to own property in prime land. Tau explained that the campaign was bearing fruits since people are now seeing the value of buying their houses. “Buying is more than shelter; rental provides occupational benefit only, but

buying a house gives equity for realization of future aspirations while rented property cannot be used for such,” said Tau.

She said most people have been renting their property for ages and since the commencement of the campaign some are beginning to purchase the houses they are occupying.

The one year campaign which is expected to come to an end in March 2015 is available to anyone who has been renting the BHC houses anywhere in Botswana. As part of the encouragement, BHC has a value proposition which includes a discount on the valuation price, a P7 500 renovation voucher and zero administration fees.

The Corporation is also raising awareness about the interest rate, which is at its lowest in years, making this an opportune

time to purchase a house. The company has partnered with banks such as First National Bank, Stanbic Bank, Banc ABC, Standard Chartered Bank and National Development Bank to facilitate acquisition of property to Batswana through favourable loan arrangements.

The following were cited as some of the reasons to purchase a house from BHC:Tried and tested: Old Stock of BHC houses have been tried and tested and since you have or are living in one, you know exactly what you are getting. Buying into a Community: BHC houses exist within a community and therefore you are able to buy into the character of a community you like. Proven Market Appreciation of BHC Houses: Because BHC houses are built on prime areas and adequately serviced; their property values have been proven to appreciate rapidly over time.

Captions

1. Balomeletsi Bafedile, Mar-keting Officer and Phenyo Mpolokang, Estates Officer answering questions from customers at the stall

2. Children having fun at the BHC stall

3. Rachobo Tlhoolebe, Senior Es-tates Officer assisting custom-ers at the stall

4. Stall visitors filling in the crossword puzzle for a chance to win

5. Boitumelo Muzanywa, Mar-keting intern and Thebeitsile Nkhutlelang, Research Officer, explaining BHC products and services to stall visitor

BHC PROMOTES HOME OWNERSHIP AT THE CONSUMER FAIR

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