Boidus Focus - Vol 4, Issue 9 [Oct 2014]

by Kibo Ngowi

CONTINUED PAGES 04

Government Seizes Undeveloped CBD Plots

Botswana’s Property Market Platforms On The Rise

CBD EXECUTIVE SEMINAR 2014

CONTINUED IN CBD PULLOUT

by Kibo Ngowi

by Kibo Ngowi

OIDUS FOCUSBOTSWANA’S BUILT ENVIRONMENT NEWSPAPER

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

The Importance of Property Valuation

Lifestylenoted: Designer Secrets for Small Spaces

Claims, time bars and the JCC07 08 22

www.boidus.co.bw | | Volume 4, Issue 9 |OCTOBER 2014

BOIDUS EXCLUSIVE >BOIDUS FEATURE >

Held at Lansmore & Masa Centre on the 10th October 2014, Boidus Media brought together key high-level stakehold-ers to explore the investment opportunities in infrastructure development through Public Private Partnerships (PPP’s) that Botswana has to offer and to draw lessons from across the African continent.

Gaborone’s embattled CBD was once envisioned to be the commercial centre of the Capital City but various factors have made this dream increasingly un-likely to become reality. The latest twist in the CBD saga is a decision by govern-ment to seize no less than 5 plots in the

The need for dialogue amongst stake-holders in Botswana’s building and construction industry is increasingly being recognised as a vital neces-sity to ensure its continued survival. In September the 1st Annual Airport Junction Builder’s Expo and PPC Con-struction Summit was held while last Friday Boidus Media hosted our sec-ond annual CBD Executive Seminar. This week Ba-Isago University Col-lege and the Real Estate Institute of

area on the grounds that the registered owners failed to develop commercial property on their pieces of land. Boidus Focus finds out what this means for the CBD and the Botswana property market in general.

Botswana will jointly host a Real Estate Conference while the fourth annual Property, Investment, Lifestyle and Décor Expo simultaneously takes place at the same venue. These are indeed exciting times for Botswana’s built en-vironment industry and Boidus Focus is there to see it all. Find out what to expect from the upcoming Real Estate Conference and the Property, Invest-ment, Lifestyle and Décor Expo inside.

CONTINUED PAGES 06 & 22

Explores Infrastructure Development Through PPPs

AIIM: In pursuit of a successful PPP, some suggestions include;• Keepitsimpleandreplicatewhere

possible• SeePPPasapartnership,nota

masterservantrelationship• Goforthelowhangingfruit.Don’t

trythebigandfancyonefirst• Lettheprivatesectormakemoneyin

theprocess

BPOPF: There is capital to invest in Botswana’s Infrastructure Projects;• What'stheinfrastructuregap

inBotswana?• Pressureonexistinginfra-

structure• Needtorehabilitateand

developnewinfrastructure

Infrastructure Investment Opportunities• MiningMuseumopportunity-

SelibePhikwe• Revenue-generatingPPP-compli-

antFacilities(majorones)-Palapye» StaffResidences» StudentDormitories» UniversityFarms» UniversityAirStrip» UniversityShops

How will this affect the local property market? Boidus speaks to an Economist, DTRP, and a Lawyer

REIB and Baisago University Launches an Annual Property Conference

Exclusive feature-Boidus November Edition

Local NewsPage 2

BOIDUS FOCUSOctober 2014

Local NewsPage 2

News Briefs Compiled by Keeletsang P. Dipheko

The tender, which was awarded to K-Build Hardware and Ambica Trading, was suspended to allow the body to complete its investigations, following allegations of bid rigging. The authority alleged that the companies that won the tender colluded in their application. While only one tender was released, both companies won it, which convinced the commission to suspend it. Although the competition watchdog would not reveal what sort of bid rigging occurred, it stated that preliminary inquiries had established that there were evident con¬traventions of the Competition Act and other improprieties in the award of the tender.

COMPETITION COMMISSION LIFTS A MULTI MILLION PULA TENDER SUSPENSION

The Botswana Telecommunications Corporation Limited (BTCL) Initial Public Offering (IPO) has now reached an advanced stage. The Minister of Transport and Communications (MTC) Honourable Nonofo Molefhi has re-vealed that the IPO has been rescheduled to take place on Friday 7th November 2014. MTC, Public Enterprise Evaluation Privatisation Agency (PEEPA) and BTCL will soon commence a programme aimed at sensitising and educating the public on issues relating to the BTCL IPO. Government will be offering a total of 49% of the company’s shares: 44% will be for purchase by citizens and citizen companies while the remaining 5% will be retained for BTCL employees.

BTCL IPO REACHES ITS FINAL STAGE

The Minister of Infrastructure Science and Technology Honourable Johnie Swartz has urged the private sector to participate in Public Private Partnerships to help the government to deliver key projects. Swartz said there is an opportunity for the private sector to come and advise the government on how to go about implementing some of the projects which they are not able to execute due to limited resources. Projects for which government has hinted at partnering with the private sector in the past include the Walvis Bay Corridor, the Trans Kalahari Railway line, Kazungula Bridge and the Botswana International University of Science and Technology (BIUST).

GOVERNMENT CALLS ON PRIVATE SECTOR TO PARTICIPATE IN PPP PROJECTS

The Ministry of Transport and Communications has signed shareholders compact agreements with four of its parastatal organisations. The signing was done by the Minister and Board Chairpersons of parastatal bodies under the ministry including Botswana Fibre Networks, Botswana Railways, Botswana Telecommunications Corporation Limited and Civil Aviation Authority of Botswana. The shareholder compact aims to reinforce re-lations between the parastatal Board Chairpersons and ministry management and to align the performance expectations of Parastatals for effective monitoring. The minister explained that the shareholder compact would focus on effective monitoring of the parastatals’ performance expectations.

MINISTRY OF TRANSPORT AND COMMUNICATIONS TIES PARASTATALS TO PERFORMANCE CONTRACTS

Bank Gaborone has launched a free valuation campaign for home-buyers. ‘Mosasana home loan’ runs from 1st September to 31st December this year and aims to promote homeownership.

In an exclusive interview with Boidus Focus, Bank Gaborone Mar-keting and Corporate Communications Manager Sandra Mokobi said the bank was motivated to run this campaign by a desire to make homeownership more affordable. Homeownership in Bo-tswana can be quite expensive, she explains, especially because there are additional costs that one has to incur before securing the loan from a bank, including valuation and legal services.

Mokobi explained that Bank Gaborone offers three kinds of home loans: “The first kind allows you to buy property that already exists; you can also buy vacant land or acquire buildings which are divided into individual and commercial.” She added that free valuation ap-plies to individual property being purchased either by an individual or a business but the bank will only consider waving the valuation fee for a company that is acquiring a house for non-commercial purposes. The bank offers up to 90 percent of the open value mar-ket or purchase price of building cost.

Explaining how the campaign will make loans affordable, she said valuation is a prerequisite for securing a home loan; a person cannot be given a home loan by any bank until and unless they meet the criteria for the valuation of the property as it’s the valuation that will determine how much the bank can actually offer in terms of the loan. “It can get quite expensive, so if there is an instance where there is a fee that the client doesn’t have to pay it automatically makes it more affordable so we believe that taking the valuation of the client will definitely make it more affordable.” Sandra said they are also consid-ering the first time home buyers as they realised it can really assist those people who have only recently started working.

When asked why they decided to run the campaign during this period, Mokobi said they are targeting the time when people are looking for new things going into the New Year. It’s also a time when people are receiving bonus cheques so there seems to be ex-cess disposable income towards the end of the year. She said they will consider extending the campaign to run until January depend-ing on how it performs.

Bank Gaborone offers free valuationfor mortgagesBy Keeletsang P. Dipheko

Minister of Lands and Housing Honourable Lebonaamang Mokalake launched the Anti-Corruption Policy Statement in Francistown this past month. The policy seeks to develop and strengthen leadership manage-ment capacity and to encourage participation of staff in the fight against corruption. This is expected to be achieved through regular evaluation of corruption and risk prone areas, systems, procedures and processes by ensuring that projects have clearly formulated goals and deliverables. It will also provide guidance to employees, stakeholders, Internal Auditors and Corruption Prevention Committees on structures and proce-dures the Ministry has to counter corruption.

Mokalake raises fears of corruption scaring away investors in Botswana

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


AdvertisingPage 3


Boidus FeaturePage 4


Government Seizes Unde-veloped CBD Plots

An announcement in the Government Gazette, signed by President Khama, revealed that five plots in Gaborone’s CBD would be seized by government.

In the case of all five plots the decision has been taken due to the fact that “the registered owner of the said Lot failed to comply with condition 2(a) of the Deed of Fixed Period State Grant in that it failed to erect a building to be used for commercial purposes,” states the notice.

by Kibo Ngowi

• Lot54348,measuring 8, 774 metres square and leased to Mr. Benedict Mabeo since 4th March 2008;

• LotNo.54350, measuring 8, 844 metres square and leased to Estate Construction (Proprietary) Limited since 20th February 2009;

• Plot54366,measuring 10, 131 metres square and leased to M3 Consulting (Proprietary) Limited since 17th September 2013;

• Plot54363,measuring 9, 652 metres square and leased to Monatop (Proprietary) Limited since 27th September 2010;

• Lot54361, measuring 10, 241 metres square and leased to Keboife Holdings (Proprietary) Limited since 9th September 2008.

The announcement further states that Government would pay the regis-tered owners of each of the said plots 80 percent of the prices at which the properties were purchased from the state. “Any person objecting to such forfeiture must lodge a notice of ob-jection with the Attorney General with-in 30 days of the second publication of this notice, setting out the reason(s) why the said Deeds of Fixed State Grant should not be cancelled by the Registrar of Deeds,” it adds.

The potential economic impact of government’s de-cision to seize five pieces of land in one of the coun-try’s highest profile commercial precincts cannot be understated. Boidus Focus spoke to independent economist Mr. Keith Jefferies to gain more insight on the economic factors at play in the CBD.

BF: What effect is the enforcement of the CBD development covenant likely to have on the over-all property market?

KJ: Probably not much effect. The CBD market is saturated and the owners were not in a position to develop the plots, so the fact that they are being taken back and presumably will be reallocated at some point in the future is probably a good thing in terms of a proper phasing of CBD development, es-pecially if the reallocation is delayed for a while. It is also good that the terms of the land allocation con-tract and development covenant are being enforced – the failure to generally enforce development cov-enants has been a big weakness of the Botswana land allocation system. Having said that, two years is far too short a period for a development covenant given the magnitude of the developments required in the CBD, although, in this case, my understand-ing is that the repossession is actually taking place some five years after the lots were allocated, so in fact a lot of leniency has been shown to the owners and they were given several extra years to develop.

BF: What could have been some of the factors that contributed to peoples’ inability to develop?

KJ: Clearly the CBD property market is satu-rated, with a lot of development in a short period of time, so it is not surprising that the owners were unable to develop – there is insufficient demand to absorb even more space and hence further projects cannot be financed at the present time.

BF: What are your thoughts on the way the development of the CBD has generally been handled thus far?

KJ: The way in which the CBD development has been handled has many shortcomings. First, more attention should have been paid to the absorptive capacity of the market – it should have been obvi-ous that the market could not absorb a large vol-ume of development all being undertaken in one place in a short period of time. Hence the develop-ment should have been phased – which may have

AN ECONOMIST WEIGHS IN ON THE SEIZURE

CONTINUED FROM THE FRONTPAGE

All five plots are located in the Gaborone West Extension 9 of the CBD and they are:

required phased plot allocations or staged devel-opment covenants – such that the CBD properties were developed over a longer period, say 20 years, during which the market would be more able to ab-sorb the new space. Because of the lack of demand and absorptive capacity, it is obvious that financial institutions would be unable to finance develop-ments that did not have a market.

Second, the development of the CBD should have been done hand-in-hand with the provision of suf-ficient supporting infrastructure. The most obvi-ous gaps are the lack of access roads, particularly those across Nelson Mandela drive, which means that there is severe traffic congestion at peak hours. There also needs to be pedestrian access from the CBD to the bus rank, to avoid the very dangerous road crossing for pedestrians.

Third, there should have been more mixed use de-velopment (residential/commercial/ office) in order to help develop a more community feel rather than have the area dying at night. This would also allow development patterns to follow the needs of the market more closely, rather than being determined at the whim of planners, who may know very little about the market and what is commercially viable.

Fourth, government should be bound by its own rules regarding developments. For instance, the High Court should not have been exempted from the height requirements applicable to everyone else.

CONTINUED PAGE22


Consumer EducationPage 5

This educational column focuses on the types of mortgages offered at Botswana Building Society.

In the last segment titled “steps to follow when ap-plying for a mortgage loan”, we discussed the BBS mortgage requirements. We hope you were able to appreciatewhat we covered. We await any enquiries or clarity that you might seek pertaining to the require-ments which were discussed.

In this segment, we would like to explain the types of mortgage that BBS has so that you can identify one that is relevant to your needs. Therefore, the types of mortgage are:

Ordinary Mortgage LoanThis loan is for when one acquires a complete prop-erty or a complete structure.

Building LoanA building loan is used to develop property or to pur-chase an already existing but incomplete structure.

Refinance or further advanceThe loan is provided as an additional loan for the extension of an existing property. It can also be used for an already existing property improvement, such as swimming pool construction and paving the yard. The funds can also be used to buy another property or clear other existing loans. The requirements for this loan will, therefore, depend on the purpose for which the loan is being sought.

Re-AdvanceThe loan allows you to release funds or equity when the value of the property has gone up, or appreciated, and the loan amount has reduced. In this case there is non-involvement of Conveyancer or Attorney as Bonds are already registered in favour of the Society.

Free Hold Land FinancingThis loan allows you to purchase undeveloped land which has unrestricted ownership. Customers are given a period of seven years to repay the loan.

Home loanA home loan is acquired only when one purchases or builds a residential property.

Commercial loanThe loan is used to finance commercial and industrial property development or acquisition such as offices, shopping malls, warehouses, schools, multi residential property for rental, etc.

Interest rate structuresBBS has two mortgage interest rate structures, which help to determine the interest rate you pay and the loan tenure.

Variable Rate LoansA variable interest rate loan, also known as an adjust-

able interest rate loan, is one in which the interest rate charged on the outstanding balance varies as the bank rate changes. It is driven by the prime rate. As a result, your payments will vary with changes to the prime rate. Therefore, the fluctuations in instalments cannot be pre-determined.

Floating Rate LoansThe floating rate loan has a fixed rate of interest that is charged over the loan term of five (5), ten (10), fifteen (15) and twenty (20) years. The repayment amount, or the loan instalment, remains the same for the duration of the loan tenure during any of the periods indicated above.

Loan tenureLoan tenure refers to the period of the mortgage loan, from the date of the first disbursement to the last date, being the date of closure of loan.Individuals can be given a loan term of up to thirty years (30), which is repayable within the age of sixty five (65).

As for companies, they can qualify for a maximum term of twenty (20) years.

Loan AmountsBBS finances a minimum loan amount of P20, 000.00 for both residential and commercial loans. The maxi-mum loan is determined by the location of the prop-erty being financed. It will differ from one location to another, with urban centres offering higher amounts.The debt serving ratio for BBS must not exceed 40% of gross family income. That is, an applicant’s monthly instalment must be within, or 40% of their monthly gross income.

Loan to ValueLoan to value is a key risk factor that BBS uses to assess or to qualify mortgage loan applications. The analysis informs the BBS of its risk appetite based on some of the following key factors, theindividual affordability, the purchase price (price at which the property is being sold), or the construction sum in the case of building loans and all the above mentioned assessed against the current Open Market Value of the property for which the loan being sought.

BBS finances up to 90% of the Open Market Value for both individuals and companies in all urban centres, and between 50% and 80% in semi-urban and rural areas.

The Society finances property throughout the country. However, the property must be registered with the Deeds Office. For SHHA plots, they must be converted to Fixed State Grant for them to be considered for funding.

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 branches country wide for assistance.

In the next segment, we will share with you information on our savings and investment products. BBS offers a variety of savings accounts which can help one save for whatever purpose, including the acquisition of property.

Types of mortgages and mortgage loans offered by BBS

PRACTICAL ADVICE GUIDEOctober 2014Essay 2PART

1



REIB and Ba-Isago Organise Real Estate Conference

On the 16th and 17th of October the Real Estate Institute of Botswana (REIB) in collaboration with Ba-Isago Uni-versity College will host a real estate conference at Fairground Holdings in Gaborone.

REIB has already been conducting an-nual workshops for the past six years and Ba-Isago has participated in some of these events as a sponsor. Earlier this year, Ba-Isago developed a concept paper including various real estate in-dustry themes they wanted to explore in a conference and approached REIB for support. The two organisations de-cided to host a joint event combining REIB’s annual workshop with Ba-Isago’s envisioned conference.

Ba-Isago has been very visible in the real estate industry due to the institu-tion’s participation through training. The Real Estate Professional Act of 2003 declared that no person who hadn’t been trained in real estate could be registered as a real estate professional in Botswana. At the time many people who were actually working as agents did not have any formal qualifications in real estate so Ba-Isago targeted this gap and began offering a real es-tate certificate in 2008. To date they have trained more than 300 real estate professionals and developed the pro-gramme further to offer a diploma and a Bachelor of Commerce in real estate.

“So we are at the centre stage of human resource development in this particular field and we feel that we should contin-ue to lead in terms of developing more professionals in the sector,” says Ba-Isa-go Vice President, Academic Affairs and Research, Mr. Ruramayi Tadu. “We will continue to play a significant role in the real estate sector because we’ve iden-tified it as a niche market. Of course there are a number of other institutions that are offering the same programme but we are the pioneers in this particu-lar area and we will continue to lead by example. In future we would even want to offer programmes at higher levels than what we are currently offering. And we hope that our partnership with REIB will be a long lasting one because

by Kibo Ngowi

“For our members it will be a more of a refresher course,” says REIB Secretary General Ms. Marilyn Mosha. “Basically we want to put our professionals under one roof so they can learn from each other’s experiences and the trends in the real estate industry. As for the public, it’s for them to gain a greater appreciation of our profession.”

The Benefits of Street Trees

we are at the forefront of influencing their members through the knowledge we provide them in our classrooms and our interactions with them.”

Mosha says the event will form part of their members’ Continuous Profes-sional Development (CPD) and that those REIB members who attend will receive a certificate of attendance. She adds that REIB is hoping to at-tract members from across the coun-try to participate in the conference’s panel discussions so that the insights are not limited to the experiences of professionals operating in Gaborone: “This will allow us to broaden the conversation to incorporate experi-ences from all over the country.”

REIB marks its 20th year of existence this year and the sitting Executive Committee led by President Modiredi Maruping have taken it upon them-

selves to mark this milestone with a number of activities. Earlier this year REIB held an event to launch its Valu-ation Standards Committee Operat-ing Guidelines and Code of Ethics and Conduct, both of which are contained in the REIB Handbook, along with the Real Estate Act, the REIB Constitution, the REIB Rules and Regulations and the REIB Application Process. An identity card for all REIB members, developed to make confirmation of estate agents’ credentials easier for consumers, was also unveiled at the event.

The Benefits of Street TreesWhy should you as a city resident care about whether there are trees on your street, or on the streets nearby? Well, besides the obvious – that they make a street look more attractive – street trees are proven to provide numerous concrete benefits to residents in terms of proper-ty values, traffic calming, pedestrian friendliness, and crime reduction. Here are a few of the benefits of having street trees in a city.

1. Cars drive more slowly on streets with trees.Traffic moves more slowly on streets lined with trees. Trees have a calming effect, and drivers are at least sub-consciously aware that where there are trees, there are often pedestrians and children playing.

2. Street trees cut traffic noise.Street trees reduce the amount of en-gine noise created in the first place, because drivers go more slowly. But a line of large leafy trees can also absorb a great deal of noise. Even a line of smaller trees can be enough of a buffer to block traffic noise from reaching private yards and homes.

4. Trees improve air quality.Trees consume carbon dioxide and emit oxygen. In general, the more trees we plant, the better air we breathe.

5. Street trees increase property value.Streets with trees look more stable and prosperous. Families with chil-dren are more attracted to a neigh-borhood where they can picture themselves going for walks and letting kids play on the sidewalk. A neighborhood that looks cared for, with visible sidewalk activity, experi-ences less crime and especially fewer break-ins. (frinkpark.org)

3. Residents walk more on streets with trees.When cars drive more slowly, pedes-trians feel safer. In addition, curbs and trees provide a physical and psycho-logical buffer between sidewalk and car traffic that increases this feeling of safety. The busier the street, the more this safety buffer is needed. And of course, trees provide an environ-ment in which it is more pleasant to walk - something attractive and green to look at, shade in the summer, a can-opy from rain when needed.

Visit us: Gaborone Dam site Machell Drive www.sanitas.co.bw Call us: +267 393 1358


Guest ColumnistPage 7

by Othata Batsetswe / Financial Inclusion Specialist & Project Coordinator / Principal Finance Administrator/ Risk, Investmentand Development Specialist

THE IMPORTANCE OF PROPERTY VALUATION

There has been a great deal of success in devel-oping the property valuation market in Botswana; the greatest being the establishment of the Real Estate Institute of Botswana (REIB). Despite that success, certain challenges still remain and these are discussed below;

Lack of Adequate Data – One important factor which is a constraint on the use of open market value is the lack of data. The structural mecha-nism for collating property data in the country is weak and does not provide adequate information on which a valuer can rely to make an informed opinion about property values. This makes it dif-ficult to make critical analysis and achieve a sound basis for valuations using the open markets values. Apart from a few well established property firms and organisations that keep some form of data, it is difficult to find formally organised data for property valuation.

The effect of social elements which form an im-portant component of the value arrived at cannot be quantified but depend on the discretion of the valuer. This makes such data less reliable and sub-jective. Many valuations do not portray the true open market value of the property. The lack or absence of a Land Valuation Board within the gov-ernment institution, which would be mandated to collate research as well as manage and record all data on properties, means that government has not been able to efficiently carry out this function.

Unqualified Estate and Land Agents – Due to the rising demand for property, there has been a huge shift towards the real estate business. The emer-gence of block 10 and Gaborone North saw an influx of such characters. Most of these agents are not qualified and do not understand the factors that are necessary to be considered to determine property values. Their activities are having a nega-tive effect on property valuation because they do not seek professional advice on the property’s val-ue but determine it themselves. Due to the scar-city of knowledge of the property market and lack of adequate data, they do not assess the property values based on any sound economic analysis. They also charge commission for their services based on the income to be derived or expended on the property and some inflate such values in order to increase their earnings regardless of the effect this might have on the general level of property values. I’ve had dealings with about four valuation companies and the prices I got on one property were quite interesting. They ranged from P0.535 million to P0.95 million. This lack of stan-dardisation and analytical tools in property valu-ation has escalated the cost of property, taking away affordability.

Variances in Demand – Another factor which is a constraint in the valuation of properties is the cur-rent change in the character and variation of de-mand for properties, especially residential prop-erties. The relocation of Diamond Trade Centre (DTC) from London to Gaborone led to perceived prices, mainly driven by the known and perceived purchasing power of the foreign nationals that were seen as a huge market. This indeed worked in their favour and most of the property prices were arbitrarily decided between the parties and the money paid for the property was not neces-sarily subject to any valuation method or principle. This will obviously lead to arbitrarily high capital and rental values for residential properties, espe-cially in the urban areas.

High Inflation and Interest Rates – High inflation rates lead to unstable prices of products on the property market. This has created the tendency for property owners and the land/estate agents to quote property values well above what pre-vails on the open market without any economic analysis. This phenomenon results in an unstable property valuation environment, making it diffi-cult to determine with certainty the interest rate to adopt in valuations, especially for investment purposes. High inflation also causes an unstable cost of building materials and makes it difficult to analyse and use the cost method of valuations with any degree of certainty. Even when inflation

and interest rates decline, it usually does not lead to a reduction in the cost of building materials and property values because demand is high.

Land Tenure Issues – Land tenure under the com-munal landownership system is often difficult to determine and current conflicts of land owner-ship have led to unclear titles to land. This be-comes particularly difficult when valuation must be carried out for mortgages or compensation for land expropriated where the valuation for such purpose must be based on clear legal titles.

Other factors which constrain the use of the methods of valuation are inadequate knowledge of planning regulations and laws. This leads to a minimal recognition of planning laws on the value of properties though it should form an im-portant aspect of it. It is therefore always neces-sary to compare properties from similar neigh-bourhoods. This is difficult to achieve because there are many variations in neighbourhoods and many buildings are unique because they are con-

structed according to the taste and requirements of the owner and not according to a statutory building plan.

As a way forward to reduce user costs and en-courage home ownership, property valuations should be covered by the financing institutions. One of the commercial banks is already playing in that space and it’s just for the rest to follow suit. Mortgage loans increased by 43.3% in 2013. From January 2014 till June 2014, the mort-gages credit increased from P6.8bn to P7.5bn, reflecting a further 10% increment in demand for mortgages. Considering that home owner-ship is still at less than 10%, this also presents a business opportunity for banks. It’s about time they focus on 100% coverage of mortgages and efforts to encourage property ownership. Prop-erty valuation is very important to the growth of the economy and to ensure efficiency within the financial system.

* The writer writes in his personal capacity.

Development Management consultation is our core business.

More than two decades of experience in this field allows Tredinnick to help property developers and landowners achieve maximum potential from their prospective projects.

We control and orchestrate the process of development from beginning to end, review the investment opportunity, provide input on the business model, design efficiency & flexibility, the marketability, sustainability, the funding solutions and the costing with a view to implement projects for the best interests of clients (Government, Parastatal or Private).

1. Rail Park Mall 2. Travelodge3. Riverwalk4. iTowers

Tel: Fax:

+267 3900990+267 3956383

www.tredinnickproperty.co.bw

1

2

3

3

4


Guest ColumnistPage 8

For a more formal look, get a couch plus 2 arm chairs at straight angles. In a very tight living area, this sitting arrangement of a couch and a single arm chair at an angle works best. The table in the center can be an ottoman which will serve 2 functions of being a serving area and also extra seating when needed.

For this type of arrangement, you can use standing lamps instead of side tables to save space. Small scaled furniture with tall thin legs feels lighter and is suitable for smaller living areas.

12

3

MAIN BRANCH (Gaborone)Tel: 3933154/164Fax: 3933167Cell: 71598499, 75665656Plot 20596 Block 3 (next to Sefalana)

www.masterjoinerybw.com

Specialists in:•prefabricatedhousing,office,classroom&tuckshop

•dry-wallpartition•aluminiumproducts•woodenproducts•hardwarestore•shop-fittings•garagedoors

Our high tech computerized machines enables us to manufacture locally[moulding machine, cutting machine, wrap oven, drilling machine]

We manufacture, supply, and fit to meet your demands on all types of Joinery and Aluminium products.

APPRECIATIONS FROM TWINCO ENTERPRISESBHC, Lobatse Geography Bureau, Lobatse Mental Hospital, Lobatse Sports Stadium, SSKIA, F/town Airport, University of Botswana, I.H.S. Molepolole, Mogoditshane BDF, Glenn Valley BDF, Rakhuna BDF Camp, Gumare Primary School, Lobatse/Kanye City Council, Ministry of Trade, Kasane Muwana Lodge & many other clients.

Prefab cabins built on site, Counters, Aluminium (I.H.S. Molepolole)

Wardrobes, Kitchen cabinetry

Fireplaces, Kitchen cabinetry

Hand crafted wooden doors and panels

by Tshepiso Motlogelwa, Interior Designer - [email protected]

Lifestylenoted: Designer Secrets for Small Spaces

Having to deal with small or limited space in your home can be overwhelmingly frustrating if it is not designed well. Concerns about the en-vironment, energy, the cost of living and small land allocation are causing people to re-exam-ine their need for larger and larger homes.

Making the most of a small space is an exer-cise of mind over matter. Controlling clutter and expecting furniture and appliances to perform multiple functions takes some expert planning. You need to take full advantage of the space you do have by carefully selecting the items you bring into your home-the more multi-func-tional, the better. Remember that not every nice

For a very small bathroom like this one, use light shades of beige to give it an airy feel. The light shades also help to make it appear hygienic; but of course you have to maintain the clean look by cleaning the bathroom regularly.

Keeping accessories to a minimum and cutting down on clutter can help make a small space seem bigger than it is. The frosted glass doors in this small kitchen also helps to make the kitchen look spa-cious and less heavy.

piece of furniture will necessarily work for your space; an over-sized couch in a small lounge will not only make the space look unwelcoming but it will be a nightmare to maneuver the corners to try and clean the room.

With a growing focus on comfort and style with-out excess, more and more manufacturers are designing their products with smaller spaces in mind. Big style has never looked so small, so regardless of whether you live in a colossal dwelling or a miniature apartment, you can still achieve a comfortable home you love to live in.

Multi functional furniture

A horizontal striped wall in muted tones in this teenager’s bedroom makes the space look wider. Storage shelves on the walls provide smart storage solutions to minimize clutter.

321


AdvertisingPage 9


Home ImprovementPage 10

Sponsored bySponsored byDIY Projects - How to Repair Leaky Gutters & Downspouts

REPAIRING A LEAKING GUTTER FIXING A LOOSE DOWNSPOUTGutter joints, whether sealed with a rubber gasket or sealant, will deteri-orate over time and leak. The repair shown here uses gutter or silicone caulk. For gutters without joints, cut out the damaged section and replace it with a piece that is at least 2 in (5 cm) longer.

Materials and Tools: • cloth • gutter or silicone caulk • caulk gun

1. Disassemble the gutter joint by unclipping the gutter length from the joint clip (Image 1).

2. Remove the adjacent length of gutter to give you clear access to theinternalprofileofthejointclip(Image 2).

3. Dust out the joint, making sure that it is clean and dry (Image 3).

4. Apply gutter or silicone caulk around the edge of the gutter’s profile(Image4).

5. Reassemble the joint, fixing theclips securely back in place (Im-age 5).

6. Wipeawayanyexcesscaulkwithacloth (Image 6).

If downspout brackets become loose, joints in the pipe may fracture and cause water to run down the build-ing.Thismaycausewaterinfiltrationproblems, so loose pipes should be reattached immediately.

Materials and Tools: • drill • suitable fasteners and wall plugs

1. Slide the loose downspout bracket to slightly above or below its pre-vious position (Imags 1).

2. Hold the bracket in place, and mark where the new fasteners will need to go. Then drill pilot holes (Image 2).

3. Attach the bracket with the appro-priate fasteners. Use wall plugs on masonry (Image 3).

A leaky gutter can cause damage to roofing and soffits. Learn how to fix gutters, downspouts and how to re-point cement roofing. [Source: diynetwork.com]

OTHER CAUSES OF LEAKS• Theguttermightbeblockedandoverflowing.Unblockittofixtheproblem.• Looseattachmentsmaycausesaggingandoverflowing.Fixasforadownspout.• Agutterneedsaslopetodrainefficiently.Checkwhetheritneedsadjustingtothecorrectangle.• Cast-ironguttersmayrustandleak.Paintoftentoavoidthis.

Gutters and downspouts are critical to ridding the roof of water and getting it away from the home’s foundation. Gutters and downspouts are an impor-tant part of any roofing installation,but are elements that are sometimes overlooked. Gutters and downspouts arenotexpensive,andtheyplayavitalrole in the roof doing its job. For any house, it’s important to remove the water that runs off the roof as quickly as possible. The downspouts can be buried or positioned to carry that wa-ter away from the house.

EXPERT ADVICE ON GUTTERS AND DOWNSPOUTS

lmh1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPOBotswana`s biggest convergence at building supplies & services h

Boidus Expo Special: POST EVENT

news flash

On the 18th to the 21st of September 2014 Bo-tswana’s biggest convergence of building sup-plies and services took place at the 1st Annual Airport Junction Builder’s Expo & PPC Construc-tion Summit. More than 100 exhibitors repre-senting all the various profiles within the local construction industry were present at this first of its kind event which mainly consisted of private entities and included minor representation from government departments and parastatals.

Event organiser Mr. Christian Maisva says the event was a success as they achieved their goal of pro-viding a comprehensive showcase of Botswana`s construction industry to local consumers while si-multaneously offering industry players an oppor-tunity to meet, network and exchange ideas for the benefit of the industry as a whole.

The event’s main objective was to allow exhibitors to influence domestic consumer trends within Bo-tswana’s construction industry by raising aware-ness about locally available products and services.

The vast majority of the exhibitors were local enti-ties with roughly 10% being manufacturers and suppliers from South Africa, most of which were companies with local distributors or products they are launching into the Botswana market.

The event was powered by PPC-Cement which was the platinum sponsor and as such hosted the PPC Construction Summit on the 19th of September 2014. This exclusive conference brought together key stakeholders in an effort to address some of the major concerns of the domestic construction industry and positively influence its development.

There were 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 mainly focused on VIP business networking and the PPC Construc-tion Summit. On the public days there were product launches, raffles, discount shopping on building materials and services, entertainment and good clean family fun.

The official opening was conducted by The Hon-ourable Minister of Infrastructure, Science and Technology Johnnie K. Swartz.

Airport Junction and PPC-Cement would like to thank all the businesses that showcased their products and services as well as all the con-sumers who attended the 1st Annual Airport Junction Builder`s Expo & PPC Construction Summit.


CATERING AND REFRIGERATION

Also available: Full range Adhesives & Grout Tools & trims

THE PROFESSIONAL CHOICE

Gaborone West Industrial, New Lobatse Road, Gaborone (old CA Sales building) | T: +267 318 5316/21 - E: [email protected] while stocks last - E&OE

SPRING CLEARANCE

GABORONE

600x600 Ceramic & Porcelain Tiles from

500x500 Ceramic Tiles from

Various 400x400 Ceramic Tiles from

P144-99m2

VAAL Hibiscus top�ush includingmechanism & seat

P999-99

Ceramic tile adhesive

P33-99Porcelain tile adhesive

P69-99

P77-99m2 P67-99m2

Various 330x330 Ceramic Tiles from

P57-99m2

visit our stand between 18-21 September at the

exhibitor`s profiles

Minimum Thickness Needed

Blown inThickness

50mm

75mm

100mm

125mm

R-Value

1.31

1.97

2.63

3.29

Settled Thickness

50mm

75mm

100mm

125mm

Reduced Summer

Heat Flow %

76%

81%

87%

91%

Reduced Winter

Heat Flow %

61%

86%

89%

93%

If you have an event coming up, let us build a feature for you or help you manage it. Drop me a line and lets meet and talk.

[email protected]/75628493

www.boidus.co.bw

BOIDUSFEATURES

WITH SPECIAL THANKS TO OUR SPONSORS:

maitisong

Specialized cleaning • Innovative Solutions

CBD EXECUTIVE SEMINARBoidus Media’s STATE OF OUR CITIES

2014

Official Event Opening – Minister of Infrastructure, Science & Technology Hon. Johnie Swartz

• Private sector a strategic partner in government development agenda. Against this background Public Private Partnership Policy approved in 2009 – the objective of which is to create a conducive environment to facilitate the private sector to initiate implementation of strategic projects and partner with government for their implementation to benefit the economy.

• The PPP Policy resides at the Ministry of Finance and Development Planning and plans are at an advanced stage to establish a PPP Unit within that Ministry. Government recognizes that, through partnerships between government and the private sector, development of Botswana’s infrastructure and other services can be taken forward to the next level with equal share and benefits between government and investors for the good of the country.

BOCCIM President Mr. Leta Mosienyane • Current scenario: Quality of infrastructure has declined in recent years; Some projects at sub optimal levels, some are white elephants; Some are not

sustainable or viable.• BOCCIM views on areas of improvement: Better conceptualisation, planning, design and project management; More cost-benefit analysis; Sharper

focus on development objectives and outcomes; Understanding and commitment to socio- economic impact and implications; Encouragement of “value addition”; Involve private sector in the planning and management of infrastructure pre and post implementation; Understanding of related risks and their management; Prioritizing development projects on strength of socio economic potential; Subject all projects to cost benefit analysis.

• AIIM's Funds have invested in a diversified portfolio of infrastructure and infrastructure-related assets, including 39 acquisitions, eight disposals and four refinancing in South Africa, Zambia, Rwanda, Kenya, Nigeria, Cameroon and Cote d’Ivoire.

• AIIM was established in 2000 as a joint venture between Macquarie Group and Old Mutual Investment Group, which provides us with access to their global networks of international experience, insight and best practice methodologies.

• Already Apparent Trends to be Strengthened – Policy must support private sector involvement – Regulations for PPP must be developed so that the rules are known upfront.

• Government must be comfortable that the private sector are profit seeking – Risk and return are the main language that these parties speak – Government must not appeal to patriotism or other none risk / return related basis for decision making.

• More deals need to be done – An enlarged data set of experience can developed and used to inform future decisions.

• What makes a good PPP? Limited re-invention of the wheel; An implementing authority that knows what it doesn't know; Contract versus Partnerships; Not a political wish-list; Reasonable “development profit” expectation; Not too big; Affordable – but not under-priced; Projected to turn into a real project within two years; Reasonable “development profit” expectation.

• BotswanaSpecificPeculiarities–Small population country with low densification limits the extent to which direct “user pay” projects are sustainable on standalone basis.

• Good government and utility credit profile increases the scope for government and local utilities to sustain long term support and off-take contracts with private participants.

• Regionalisation plays a strong part in Botswana infrastructure plans as a result of the country being landlocked; Regional plans take longer to implement due to the consensus required for decisions to be made; Financial / credit profile of the various countries are not the same, further complicating matters; Externalities.

• A Case for Principal Controlled Insurance(PCI)– Any contract will have an obligation for one or more parties to arrange specified Insurance Cover. The majority of large construction projects are insured by the owner.

• Under a PCI – project owner controls insurance with cover extended to benefit: the owner, engineer, contractors,

sub-contractors, vendors, suppliers, consultants, lenders and other interested parties.

• ArgumentsagainstPCI’s– Contractors will argue – if they have a risk of loss on the contract works then they should insure the contract works?

• Owners will argue – risk of loss for delay in completion, they should insure the financial consequences of such a delay (Delay in Start-Up Ins.)

• The latter cannot be insured without the former.• ArgumentsinfavourofPCI’s– Interests of lenders have to be met in debt

financed projects.• Owner has multiple contracts and no single contractor has overall

responsibility for the works.• Phased start-up of a project’s complexities can be covered from “cradle to

grave”.• Owner or lenders wish to purchase Delay in Start-Up insurance.• Contractor’s viewpoint – important that PCI provides the equivalent cover that

would have been available had the contractor arranged his own insurance.• Alternatively the contractor should be permitted to arrange cover that

protects them for any Difference in cover (D.I.C/D.i.L/D.i.E/D.i.D).

CBD Event Opening(BOCCIM, Ministry of Infrastructure, Science & Technology)

Key Note Speaker – Investing in Infrastructure Development through PPPs in Botswana – African Infrastructure Investment Managers (AIIM), VuyoNtoi

Investing and Managing Risk in PPP infrastructure projects – Zurich Portfolio Head of Engineering for Sub-Saharan Region Jaun-PierreHolmes

WITH SPECIAL THANKS TO OUR SPONSORS:

maitisong

Specialized cleaning • Innovative Solutions


2014

Opportunities in Selebi Phikwe – SPEDU Marketing and Communications Manager Mr. Kenneth BoikhutswaneThe Pula Steel and Casting Manufacturing plant is one of the first pages of Polaris II to make it out of the shelves into brick and mortar.• Pula Steel will be the fully integrated steel manufacturing

company in the country and will invest P89 million on the project that will create 1000 direct jobs at full production.

• BIUST to team up with BCL in projects like mining museum, tourism enterprises and educational facilities for science and environmental research – P13.8 million.

• A project to set up a processing and packaging plant for horticulture produce in Selebi Phikwe is underway – P6 million.

• Pre-feasibility study by SPEDU has discovered good potential for various technologies such as solar power, biogas and waste-to-energy.

• A P100 million Platjan Bridge Project is planned.• There is potential for a vulture restaurant in the Tswapong area as

well as granite and marble quarrying in the Bobirwa Sub-District.

Opportunities in Francistown – Francistown Investment Forum Mr. Duna Phorego“City of Francistown: An investment Centre of choice by 2022 – A step forward to your investment”• Francistown has been designated a

Mining Supplies and Logistic Special Economic Zone with Tuli Block as Horticultural Special Economic Zone.

• Francistown as the regional administrative and commercial centre. The mining activities include gold, copper, nickel, diamonds, soda ash, coal and iron.

• Francistown Investment Company formed. To appraise projects potential and investment partners in partnership with BITC.

BIUST Investment Partner for Palapye – BIUST Vice Chancellor Professor Hilary Inyang

During the NDP-11 implementation period in which student enrolment at BIUST will grow from 4693 to 8251 students and staff, residential buildings, water supply and wastewater treatment systems, campus streets and monuments with lighting, auditoriums and security systems will be needed.• Approach 1: Direct Procurement by the Botswana Government.• Approach 2: Development of Facilities through PPP.• Approach 3: Private Sector Direct Investments.Management preferred that the split of approach be: Approach 1 (60%), Approach 2 (30%), and Approach 3 (10%).

In order to attach the private sector to engage in PPP, the profit margin and associated duration of investment recovery must be attractive. This implies that the facilities concerned must be revenue-generating and of scales and sizes that make them sustainable per business considerations. These are factors that were considered in the enrolment levels planned.

Investment Opportunities(Selibe Phikwe, Francistown & Palapye)

• The Botswana Public Officers Pension Fund is a defined contribution plan that was incepted in 2001; the Fund is controlled and ran by the Board of Trustees; the Board is made up of employee and employer representatives; there are 5 working committees of the Board.

• What concerns us – Crowding out the private sectors; Link between government project agency and financiers; from concept to investing stage; structuring and presenting

projects with primary focus on development and less on institutional primary focus being on attractive returns.

• The Board of Trustees of BPOPF are fully committed to the development of the country; the fund is hungry for viable investments in the country and we believe that the potential projects in Botswana are enough to absorb all our capital; the fund is ready for Public Private Partnerships.

• A team of experts engaged in project management, facilitating ownership, risk mitigation and tailoring solutions based on unique needs.

• Mature Presence: RSA, Botswana, Namibia and Swaziland; Emerging Presence: Lesotho, Mozambique and Zambia; Start-ups: Tanzania, Nigeria, India and Ghana.

• What we do – Deal Sourcing; Deal Structuring and Packaging; Credit Presentation; Approval and

Acceptance; Fulfilment Overview and Disbursement Overview.• Product Structure (CPF Loans)• Development Loans: Up to 24 Months for development loans; Interest only service

during construction; OR Interest roll up during construction• Term Loans: 60 to 120 months for term loans; Straight line amortising monthly or

quarterly; Stepped facilities; Residual options

Realising Institutional Investment in Botswana’s Infrastructures – BPOPF Acting General Manager, Investment Mr. M. Malindah

Commercial Property Financing Products – Mr. Patrick Katabua, FNB, Commercial Property Finance Africa (CPFA)


NDB, Your ultimate partner in property development.we offer• Competitive interest rates• Finance countrywide• Flexible loan terms

“Working together for a better future”

2014

REAL ESTATE CONFERENCE 2014

DATE: 16TH & 17TH OCTOBER 2014

VENUE:FAIRGROUNDS HOLDINGS,BOIPUSO HALL

Trends & Challenges of Real Estate in Botswana

THEME:

The Real Estate Institute of Botswana(REIB) and BA ISAGO University College are co hosting a Real Estate Conference.

• The new town and Country planning Act and all its instruments• Funding dynamics and opportunities in the current market conditions• Securing Land and Property ownership in Botswana• Botswana Property Development in the 21st Century• The roles of Real Estate Professionals in the 21st Century

• Commercial and Residential Real Estate Investors,• Real Estate Agents• Real Estate Valuers• Attorneys, Bankers• Architects

• Builders• Developers• Land Board• Council: Land Department• Ministry of Lands• Housing and Students

Highlights:

Key NoteSpeakers:

Who Should Attend:

REIB Member: P500.00 Per Person

Non-REIB Member: P1000.00 Per Person

Student: P300.00

Exhibitors: P5000.00

CONTACTS: (WENDY) Tel: (+267) 3930152 Cell: 72489932 Fax: (+267) 3930152 Email :[email protected]

(PHETSO / LESEGO) (Tel:(+267) 3957744 Fax: ( +267) 3957709 Email : [email protected] OR [email protected]

Kura Chihota is the recognizable face of the television show, “Ask the Property Experts” on Business Day TV Channel 412. Kura has grown into a sought after niche as a conference programme director and content speaker, being well known in the property industry he has successfully been the face and voice of many conferences locally and internationally.

Sponsors: Naledi Motors

Erwin RodeProperty Economist, Professional Valuer and Head of Research of Rode & Associates(Pty)ltd , Cape Town

DAY 1

DAY 2

For all your Home Improvement and Building Material needs

Get to Builders Warehouse.Get it done!

BUILDERS WAREHOUSE BOTSWANA:GABORONE: Airport Junction Shopping Centre, Plot No. 70665, A1 Road, Tel: 393 0533

FRANCISTOWN: Plot Number 31247, Mowana Park, Somerset West Industrial, Along A1 Road, Tel: 242 5200MONDAY TO FRIDAY: 7AM - 6PM; SATURDAY: 7AM - 4PM; SUNDAY AND PUBLIC HOLIDAYS: 8AM - 2PMwww.realtyafrica.com youtu.be/aF8zFLRf64U

A new and exciting way of funding your real-estate development. If you want to take advantage of being a real-estate investor, this is the place to be.

INNOVATIVE INVESTMENT

INSPIRING AFRICA

Erik Van EetenCO-FOUNDER & CFO

tel: +31-646201063tel: +27-110835861

email: [email protected]

skype: erick.van.eetenwww.realtyafrica.com

• FullRangeofDomestic,IndustrialandCommercialGlazing• AluminiumWindowsandDoorsaswellasSlidingFolding,• SlidingStacking• FramelessDoorsandPartitioning• FlashGlazing,SpiderGlazing• AluminiumCladding

ALUMINIUM & GLASS CENTER



Glass and Aluminium in Botswana

Actfit (Pty) Ltd is one of the largest companies in Botswana for architectural supplies, instal-lations, and maintenance, especially with re-gards to structural aluminium and glass. Boi-dus Focus spoke to Actfit Managing Director Imran Haddad, who has been involved in the manufacture of aluminium and glass for 14 years, to find out his views on the major chal-lenges affecting his industry.

Sourcing of raw materialsWe buy most of our materials from South Af-rica. There are roughly only four companies [in Botswana’s glass and aluminium industry] that always appear on the tender lists and compete with each other. And then there are various companies which are ‘suitcase com-panies’ started by people who don’t under-stand business – they do one or two projects and then close. That is the biggest challenge – that clients don’t understand that it is al-ways better to deal with companies where you will pay a fair price and be assured of confirmed quality approved by the Associa-tion of Architectural Aluminium Manufactur-ers of South Africa (AAAMSA). Our products last for 15 to 20 years and we are available for free service for six months after any proj-ect but these ‘suitcase companies’ often close within a few months of selling you a product and you are left stranded.

Competition with Chinese productsWhen we tender for a project, because we get products from South Africa, we price ac-cording to the price we buy and our competi-tors who also get products from South Africa quote around the same prices. But at the same time there are those local companies that are buying products from China.

I can’t say that Chinese products are bad. China has got quality as well but at the same time, what price are you paying? If you’re talking of a major difference in price between Chinese and us that means something is not right. A price difference of 15 or 20% we can understand but if there is a project quoted at

P700, 000 and the guy buying from China is quoting P400, 000, that means there are compromises in the quality. There are products from China that look exactly like ours on the surface but once you under-stand the feel you can understand that there is some

compromise on the quality. These prod-ucts are not just aluminium alone. There is a mixture of some other materials as well. It’s a combination and perhaps that’s why the price is cheap.

What often happens is a problem emerges with the product soon after it’s placed and since these products were sourced in Chi-na the client can’t rely on the maintenance services of the company. So we’re brought in to remedy the situation but we can’t be-cause while it may look like a South African product on the surface it is not the same.

The beauty of the SA products we are us-ing is that it doesn’t matter which company initially fits the product, any company in the country that works with glass and alumin-ium can be hired to do maintenance work on it. Lack of Consumer knowledgePeople are not knowledgeable when it comes to glass. That is the role that is sup-posed to be played by people like us who are manufacturers and who are ready to work with the architects to specify the prod-ucts; that is something we have been do-ing for quite a long time for those architects who are open to seeking our advice. What has been happening here is that there has been a copy paste in tender documents for the past 14 years. So if there was a mis-take in the document 14 years ago the same mistake is still appearing today. It’s because nobody has the time to go and educate the people.

Four years ago I was working with BHC to educate them on different types of win-dows. The aluminium specifications on the windows in the new BHC houses in Phaka-lane were specified by me. I spent two years

convincing BHC that aluminium was better to use than steel in the long run. They de-cided to use aluminium but they used Chi-nese companies and didn’t even give me a chance to tender. I’m not complaining about the fact that I spent two years there but rather the fact that after that I didn’t even get a chance to quote a price for a single house. The same tender document has been copied and pasted for years but over time products become obsolete and different products are introduced.

The whole point is that the people need to have knowledge about what they are talk-ing about. There are architects who ask for our advice on whether this can work on this building or not because since we are the manufacturers we are in a better position to advise the architects than the suppliers be-cause we are technical people. The special-ists who have been using the products on the site are the best people to give advice on the viability of using products on specific projects and we don’t mind filling that role. But most people are not doing this. They are going ahead with projects without the knowledge to do it correctly.


AdvertisingPage 19

BOIDUS FOCUSSeptember 2014


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]

PRESS RELEASE: FOURTH ANNUAL PROPERTY EXPO

The 2014 installment of the Property, In-vestment, Lifestyle and Décor Expo will take place from the 16th to the 18th of October at Ditshupo Hall at the Gabo-rone Showgrounds. Giving a background on the event, the event owner said: “The Property, Investment, Lifestyle and Décor Expo is an annual event that creates a platform for stakeholders in the property and related sectors to converge in order to promote trade, create dialogue and share industry relevant skills. The Expo does not focus solely on Property, but also on fringe industries that support it, thus the name,” said Mr. Sayi Dewa.

The Expo will consist of a series of ac-tivities along with the actual Exhibition, through which sponsors, exhibitors and other stakeholders will glean more in their vested area of interest. In partner-ship with Botswana Housing Corpora-tion (BHC), The BHC Property Investment Conference will take place on Friday the 17th, where avenues and methods of property development and investment in Botswana will be discussed. A stake-holder cocktail will also be in the line-

up, at which company representatives and individuals can network and share industry best practice.

The Expo currently has over 50 exhibi-tors on board, and the organizers are expecting more to sign up as D-day advances. Exhibitors have come from all types of businesses looking to ex-pand their horizon, from corporates to SMMEs in Real Estate, Interior Design, Property Finance, Home Décor and many others.

For their part the event organizers, In-cepta Communications, said: “Property, Investment, Lifestyle and Décor are a part of our everyday lives in one way or another. One is either a provider or a consumer, where you are building your dream house from scratch or are giving your current home or office a face-lift. We are therefore calling on all Batswana to come to the Property, Investment, Life-style and Décor Expo, and see the latest trends in various facets of property,” said Managing Director of Incepta Communi-cations, Thabo Majola.

Mortgage Affordability in BotswanaFinancial institutions control access to mortgage financing and as such are at the centre of any conversation about housing affordability. Boidus Focus spoke to Banker’s Association of Botswana Head Mr. O Mabusa to find out his views on the role banks are playing in making housing afford-able for Botswana’s population.

According to the 2011 Housing Finance in Africa Report by Finmark, approximately 60% of Botswa-na’s population do not qualify for mortgage loans. This situation has a long term effect on the prop-erty market and its growth. As Bankers’ Association of Botswana you represent the banking industry in Botswana. What are the steps that your members are taking to make mortgages affordable?

From a global perspective, it is indeed true that many Batswana would not be eligible for mort-gage loans. Eligibility for any loan is subject to a variety of qualifying criteria which include employ-ment status, income level, age and credit stand-ing of an applicant. Availability of serviced land has also to some extent played a role in restricting mortgage financing.

By virtue of the fact that many Batswana earn low incomes, they are more likely to fail the eligibility test, particularly if they apply for housing loans at a later age. This is why banks encourage citizens to seriously consider acquiring a house earlier in their lives and careers rather than late.

Several specific actions have been taken by banks to encourage the acquisition of mortgage loans to finance land and/or build houses. To mention a few of these:-

Virtually all the banks have established compre-hensive marketing strategies for their home loan products, offering highly competitive terms to eligible customers. Some banks fully finance eq-uity contributions, offering up to 100 percent mortgage financing, while others require flexible equity injections of up to 30 percent of the loan. To varying degrees, banks also finance additional costs associated with housing acquisition, such as valuations, bond registrations and other activities.

By offering pre-approved loans, banks ease the acquisition of housing by making it easier and more convenient for customers to make the right property choices and negotiate purchase prices. Banks offer flexible mortgage based financing op-tions to eligible customers such as debt consolida-tion and re-financing, both of which may have the positive effect of providing a margin of debt relief and convenient financing.

Even with all the up-front information offered by banks through the various channels, all banks provide customer advisory services through their mortgage credit departments, which helps cus-tomers to make the right selection of facilities.

Are there any available laws that govern the cost and/or sale of mortgage facilities to the consumer, especially with regards to mortgage rates?

While there are no laws governing the pricing of mortgage loans by commercial banks, there is a commercial incentive for banks to grow their as-set-backed loan exposures as a way of managing their balance sheet risks. Based on this fact, par-ticularly in view of the levels of unsecured credit in

the banking system, it can be noted that tremen-dous capacity still remains for banks to grow their mortgage exposures.

Using the income tax bracket as a crude reference cut-off point for low income earners, we can confidently point out the fact that mortgage loan entry thresh-olds (in terms of monthly income) on offer across the banking landscape are well within the reach of a rea-sonable segment of low income earners.

According to some estimates by independent econ-omists, household debt currently accounts for 17% of Botswana’s GDP. What are you as Banker’s As-sociation doing to educate Batswana on personal financial management? Experts have also argued that local banks have tightened their borrowing be-cause of people’s growing inability to pay back the loans obtained. Is this true?

As already indicated above, individual banks do educate their customers through their credit de-partments and also the rest of the public through the various intervention methods illustrated above.

However, it is important to note that an interpreta-tion of the absolute level of household borrowing in relation to GDP needs to be made in context, taking account of structural issues and the over-all macroeconomic conditions in Botswana. For that reason, it must be noted that the target of the public education provided by banks is not primarily to address the overall level of indebted-ness or credit default conditions. Rather, banks address this concern at a micro-level by enforcing their prevailing credit policies (whether such poli-cies are tight or loose) in line with the individual financial conditions of customers. But the Bankers’ Association is not aware of a general tightening of mortgage finance terms and conditions as a result of an escalation in non-performing exposures on

the mortgage book. BoB financial statistics (July 2014) reveal that mort-gages went up by more than 50 percent in the past 12 months. What do you believe is driving this rise in demand?

In the absence of a deeper understanding of the specific characteristics of the mortgage growth component, we believe this to partly represent a lagged net effect of the positive efforts made by banks to market their mortgage financing offer-ings. We can also attribute the increase in part to the positive VAT relief signals made by Govern-ment in respect of first time home buyers. Much as refinancing could explain the growth to some extent, we do not believe this is a significant factor as it would tend to have a neutral overall impact on credit in the banking system.

How do you see the state of the mortgage market in Botswana developing in the immediate future es-pecially in the space of micro-lending for property?

Mortgage finance has tremendous potential in terms of its contribution to banking sector prof-itability and citizen affluence. For both reasons, banks will continue to support mortgage business. Mortgage business optimism also arises from the expected positive spinoffs arising from the various Government reforms such as the VAT relief for first home buyers and the national land reform policy initiative which will hopefully serve to make it eas-ier to register and collateralise tribal land. In spite of this exciting potential outlook, we need to note that mortgage investment, like any other invest-ment in property, is subject to changing economic and market conditions. Hence banks, as with indi-vidual investors, will continuously review their ac-quisitions, scaling them up and down in response to prevailing conditions.

by Kibo Ngowi


AdvertisingPage 21

Branches throughout Botswana tel: (+267) 3922656 www.buildersworldgabz.com

Builders World is proud to participate on the 1st annual builders expo exhibitions. We thank our customers for there support for the last 25 years of service to the country.

WE BUILD WITH YOU!

25 YEARS OF REPUTABLE SERVICE

A passion for quality, friendly services and trust of cus-tomers got us to where we are today, and with your com-mitment we continue to light the way into the future.

1st Annual Airport Junction Builders Expo highlights BUILDERS WORLD

Get the best insurance for yourself, your property and

your business.

Because anything can happen...

Visit www.bic.co.bw Call 360 0500

Houseowners policy has been designed spe-cifically for residential properties, which are not multi tenanted and generally owned and oc-cupied by the same person/s and or tenanted. Financial institutions will insist that there is a Houseowners policy in force when they offer a mortgage and many banks also insist that the insurance is arranged through them unless sat-isfactory alternative arrangements are made.

Whilst this arrangement is deemed to be condi-tional selling the institution is able to ensure that the premium is paid monthly or annually and the policy is not cancelled.

Whilst Houseowners policies differ the core per-ils are the same and the differences really being cosmetic with various add on's. The policy not only covers acts of God but also various other perils including negligence. The main perils are as follows;

• Fire, lightning, explosion• Storm, wind, water, snow• Bursting, leaking overflowing of apparatus.• Theft• Impact• Rent• Liability

There are number of lesser defined events which are too numerous to discuss in this article. There are also conditions applicable which vary from policy to policy.

The theft cover is for fixtures and fittings and does not relate to furniture or personal posses-sions which is covered under a different policy (Householders policy)

Generally a fire causes the most damage and in addition to paying the cost of repairs the policy will also pay for alternative accommodation or if rented the loss of rent for the period of re-in-statement. This also applies to damages caused by any other peril mentioned.

The policy will also respond if you become legally liable to pay compensation for accidental death, bodily injury or illness or accidental loss or dam-age to property. This is normally limited to P 2 500 000.

Below are few pointers to avoid a claim being de-clined and or adjusted downwards.

• The buildings must be insured for the current replacement value which must be adequate for the 12 month period. The value of the

land should be excluded. This value must include costs such as demolition, debris re-moval and professional fees.

• The sum insured must not represent the amount of the mortgage, especially if the property was purchased some time ago.

• Ensure that the description of the buildings is accurate. If there are thatch roofs, timber frames they must be mentioned.

• Complete the proposal form as accurately and as honestly as possible giving exact de-tails about previous losses and claims.

• Policies are quite clear about the duty to min-imize any potential loss. Don’t expect to be indemnified if there is undue exposure to the property insured. This also relates to lack of maintenance.

Our homes, to most of us, represent our biggest investment. Fires in houses, especially winter, severe storms, high winds can cause extensive damage to properties, even those well main-tained. The cost of repairs can have a devastat-ing financial impact. A Houseowners policy is one of the least expensive. People often tend not to insure their houses once the mortgagee is paid. This could result in a second mortgage to pay for the repairs.

Is Your Property Adequately Covered?by Alan David-Andersen, Risk Management Consultant, BIC



Roofing is one of the most expensive components of a building. The roof gives the house its final shape and be-comes a covering for the whole building, thus protecting it from the weather and providing the aesthetic finish to the building as designed by the architect.

Since building a rood tends to be expensive, people have always tried to find ways of cutting costs. Unfortunately, these savings are usually accompanied by serious com-promises to structural adequacy in the choice of mate-rial and workmen used to carry out the assembling and roofing.

With rising cases of failing roofs, building structures need to be engineered, supervised and constructed with ap-proved material and only competent artisans must be hired to carry out the work.

In Gaborone alone there are numerous cases of roof fail-ures. Roof failures become evident after several years, long after the freelance roof erectors would have forgot-ten about the job. Most of the time they will not even be contactable for recourse. With this in mind, it becomes crucial to ensure that every building is roofed with truss-es meeting acceptably safe standards. Any spans above 6500mm must be pre-fabricated in a licensed factory governed by the regulations of a system provider under the arm of The Institute of Timber Construction.

Every roof needs an independent design to cater for its unique loading. These loads may include a variety of materials such as water tanks, geysers and solar heat-ers, air conditioners and ducting, kitchen canopies, the-atre lights or even X-ray units for use in hospitals. For these loads to be accommodated without overloading the structure, a set of parameters have to be adhered to. These design parameters include truss configuration, batten or purlin spacing, truss spacing and the type of roof cover to be used.

Ready-made trusses are manufactured by companies licensed by roof system suppliers in South Africa and regulated by the Institute for Timber Construction (ITC-SA). The ITC-SA’s primary aim is to regulate the design, manufacture and erection of prefabricated nail plated trusses in structural applications, and continuously re-search, develop and maintain the standards for the in-dustry. The ITC-SA works very closely with SABS, SATAS, ECSA and NHBRC and the four systems – Alpine Auto-mation, International Truss Systems, MiTek Industries S.A., and Multinail Africa – that each provide the software, which enables fabricators to design timber structures. Fabricators are responsible for timber quality control, de-sign knowledge, manufacturing quality procedures, site

documentation and inspection of the installed trusses to check adherence to drawings and erection details. Upon satisfactory installation as per standard practice, the fab-ricator issues a Roof Erection Certificate of Compliance to the owner. Currently, the ITC-SA is lobbying for the registration of all fabricators in Botswana to this institu-tion so that they may be audited regularly to ensure that the industry upholds the set standards.

Since 2005, the Botswana Bureau of Standards (BOBS) has formulated BOS 139 – The manufacture and erec-tion of timber trusses. This encompasses all the regula-tions and practices to be followed to ensure structural adequacy and proper quality roof trusses are made and installed for the safety and protection of the end user.

With all this having taken place as steps in the right direc-tion towards safe, legal roofs from design to certification, a lot is still to be done in terms of their implementation. Ever since the occurrence of the economic recession, home builders and to some extent developers, have abandoned the safe roofing method as described above and have instead opted to listen to their pockets.

We are in an era whereby over 60% of the roofing taking place is being done on site and in most if not all cases without any approved engineered roof design aiding the construction and installation of the trusses. Timber is readily available in most hardware shops, some of it of very low grade, having been primarily produced for furniture and other non-structural purposes. It is sold off the shelf so carpenters buy it and go to make trusses on site. Some roofs can successfully withstand the test of time but others fail in various ways when they succumb to the pressure of the unplanned loading.

There have been numerous reports of roofs slumped (sagging) due to structural inadequacy. The greatest challenge is that these effects may only start appearing after several years. Should there be a problem, the house owner will generally have no recourse for remedy and will end up in tedious and costly civil litigation.

For the future, there is great need for protecting the end user from eventual disaster. More effort is required to regularize the industry and implement the standards set by BOBS. This will in turn give home builders and prop-erty developers peace of mind and their money’s worth. In life it’s always best to do it right the first time. Remedy is costly and frustrating so prevention is always better than cure.

Tony Silemba is a Roof Design Technician with Truss - Tech, a company that specialises in the design, manufacture and supply of roof trusses to the construction industry.

New Era College Lecturers Mr. Motlogelwa (LEFT) and Mr. Mapolanka

New Era College offers an Advanced Diploma in Construction Industry accredited by City & Guilds.

The programme has three different en-try levels. The certificate is a one-year programme open for entry by form 5 leavers while the two-year programme is a Diploma open for entry by National Craft Certificate (Brigades) holders. Fi-nally, the three year programme is an Advanced Diploma only open to those with a Diploma though special cases can be considered on an individual basis. The first year is highly practical and the following two years, while still practical, also have an emphasis on the theoretical aspects of construction.

“The syllabus has both knowledge re-quirements and practical competen-cies,” explains Construction Industry lecturer Mr. Reuben Motlogelwa. “To achieve the practical competencies, we have a building where students prac-tice how to build, plaster and paint simple wall structures. There is also a separate area where students can prac-tice paving.”

“We also carry out site visits,” adds Con-struction Industry lecturer Mr. Tsholo Mapolanka. “If we identify a site where we feel students can learn something

we organize a trip to take them there so they can view these things we talk about in the classroom. Recently we finished building labs for the construc-tion department where we are going to be doing soil mechanics and other activities.”

The department currently has more than 800 students and more than 25 academic staff including 6 technicians. Professional attachments are compul-sory immediately following the first and second years of the programme which each last for roughly two months.

If you’re not yet sure why you should enroll in Construction Industry at New Era College Mr. Mapolanka can explain: “Construction is a fundamental indus-try because it employs a lot of people. It can be used to help the government initiative of reducing unemployment because one project can have a huge multiplier effect that creates jobs for a thousand people. Before any place can be developed socially or economically it has to be developed through con-struction so it means we are the mother of every economy.”

Construction Dept Stats

800+ Students25+Academic Staff

6 Technicians

Upon allocations of plots they are agreements are made between De-partment of Lands and the individuals /companies. And there is also the devel-opment covenant; if one is not doing as per the agreement government has no choice but enforce what has been agreed.

How do you think this will affect the out-look of the CBD and the property market in general?

As a department we are interested to see the CBD developed as a unit, for it

to be marketable and compete global-ly. If there are still vacant unmaintained spaces they devalue those properties adjacent to them that have developed.

How does your department feel about the development of the CBD area thus far?

There has been quite impressive prog-ress, and the area is shaping up to give the city an attractive image. So far a total of 30 plots out of 41 are fully de-veloped or developments are ongoing.

Various companies have recently been

The Department of Town & Regional Planning (DTRP) are the custodians of Gaborone’s CBD and coordinate a CBD Advisory Committee, consisting of vari-ous members of both the public and private sector, which advises the Ga-borone City Council on how to handle the area. Boidus Focus spoke to DTRP Planner and CBD Advisory Committee Secretariat Mr. B. Mokgethi to learn the CBD custodians’ thoughts on the re-cently announced land seizure.

As custodians of the CBD what are your views on the repossessions?

The CBD’s custodians react to the seizureCONTINUED FROM THE PAGE 04

What you need to know about roofing your houseby Tony Silemba

quoted as saying that competition in the property market is intensifying es-pecially with regards to office space. For instance RDC have taken the decision to convert some of their vacant office space into apartments. Are you at all con-cerned about the viability of the CBD in the current property market, especially with intense competition for prime ten-ants with other urban precincts such as Fairgrounds Office Park?

The CBD is developing as a mixed use precinct accommodating civic facilities, commercial uses and residential uses. This in itself is intended to ensure the viability of the CBD by allowing sup-porting activities to the predominant commercial uses in the area to ensure

that the CBD remains a vibrant space to both do business and to live. Nonethe-less, the CBD is intended for long term development as it is the single largest commercial precinct in the Country.

In your view what are the main chal-lenges that have prevented the CBD from reaching its full potential? How do you think these can be overcome?

The CBD is continuing to develop as planned. From a town planning per-spective however, the only challenge currently which the government is in the process of addressing, is the devel-opment of more accesses into the CBD to make it more permeable and easy to access.

Government Seizes Undeveloped CBD Plots


AdvertisingPage 23

HOW TO CONTACT USInterested companies and individuals can contact us at the following;

EXECUTIVE DIRECTORCONSTRUCTION INDUSTRY TRUST FUNDTel: 3911362 Fax: 3906380 (GABORONE)

Tel: 6240900 Fax: 6240 901 (KAZUNGULA)

www.citf.co.bw email: [email protected]

GABORONE MAIN CENTREBUILDING CONSTRUCTION

SOFT SKILLS

ENGINEERING CONSTRUCTION

BRICKLAYING/PLASTERING TILING CARPENTRY SHUTTERING CONCRETING SITE SURVEYING STEEL FIXING SCAFFOLDING ERECTION

& INSPECTION PAINTING

ESTIMATING & TENDERING SUPERVISORY & SITE MANAGEMENT SAFETY HEALTH & ENVIRONMENT BUSINESS SKILLS

RIGGING ELECTRICAL WELDING PLUMBING

Like us

on facebook

Your Competency Based Modular Training CentreCOURSESOFFERED

CONSTRUCTIONINDUSTRY

TRUSTFUND


Professional PracticePage 24

by Euan Massey and Natalie Reyneke

Claims, time bars and the JBCC

The claims provisions in construction contracts are probably the most important provisions of a contract in the contractor’s mind, because the majority of claims clauses in standard form con-struction contracts contain a time bar. The time bar essentially means that a contractor will not be entitled to an extension of time nor any extra compensation under the contract if it does not submit its claim for such within a defined period of time.

In this edition of Boidus Focus, we will be look-ing at pertinent amendments to the clauses re-lating to the revision to the dates for practical completion and what ramifications, if any, these amendments may have to the contractor, paying particular attention to the time bars.

Both the fifth and sixth editions contain a con-tractor’s entitlement to the revision of the date for practical completion. The contractor’s entitle-ment to such revision is split up into 2 types of revision – the first being a revision WITHOUT an adjustment to the contract value, and the sec-ond being a revision WITH an adjustment to the contract value. The entitlement to the revision is subject to the provision, by the contractor, of no-tification of such entitlement.

The dreaded time bar clause is found at Clause 29.4.3 of the fifth edition and Clause 23.4.2 of the sixth edition. There are some significant changes to this clause which require closer examination. In this regard, the differences between the fifth and sixth editions are highlighted below (note that where words have been deleted in the sixth edi-tion, these are struck through and where words have been added, these are italicised – the result

Contact our admissions department today.

Plot 36158, Block 8 Gaborone BotswanaPO Box 402134 Gaborone Botswana

www.neweracollege.ac.bw [email protected] neweracollegebotswana

+267 3933533/584+267 3933541

+267 73933533 / 71374587 / 72881887Library Cell: +267 74787870

Certi�cate, Diploma and Advanced Diploma Electrical and Electronic Engineering

Certi�cate, Diploma and Advanced Diploma Telecommunication Systems

Certi�cate, Diploma and Advanced Diploma Construction Industry

Certi�cate, Diploma and Advanced Diploma Accommodation Operation and Services

Certi�cate, Diploma and Advanced Diploma Travel Tourism and Hospitality

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

Programmes on o�er:

COLLEGENEW ERAARTS SCIENCE TECHNOLOGY

of which is the transformation of Clause 29.4.3 of the fifth edition, into Clause 23.4.2 of the sixth edition):

“… the contractor shall … within twenty (20) working days from the date upon which the contractor became aware of becoming aware or ought reasonably to have become aware of the potential such delay, notify give notice to the principal agent of his the intention to submit a claim for a revision to the date for of practical completion or any previous revi-sion thereof resulting from such delay, fail-ing which the contractor’s right to claim shall lapse shall forfeit such claim.

In addition, Clause 29.5 of the fifth edition has been somewhat amended as follows:

“… the contractor shall, submit a claim for the revision of the date of practical completion to the principal agent within forty (40) working days, or such extended period the principal agent may allow of the delay ceasing, sub-mit such claim to the principal agent, failing which the contractor shall forfeit such claim from when the contractor is able to quantify the delay in terms of the programme.”

The first significant change to Clause 29.4.3 is “from the date upon which the contractor be-came aware of becoming aware or ought reason-ably to have become aware of the potential such delay”. By changing the word “potential” delay to “such” delay, this implies that the time for sub-mission of the notice of claim only starts running from the time that the delay is actually felt by the contractor, and not from when he foresees the

delay happening.

This is somewhat similar to clause 8.4 in the FIDIC Red Book, where the entitlement to an extension to the time for completion arises if and to the ex-tent that the completion “is or will be delayed by” the various listed events. There has recently been an English court decision (Obrascon Huarte Lain SA v Her Majesty’s Attorney General for Gibraltar) where, in the judge’s view, this suggested that the extension of time can be claimed either when it is clear that there will be delay (a prospective delay) or when the delay has been at least started to be incurred (a retrospective delay). While this deci-sion is not a JBCC related decision, the principles appear to be consistent with the amendment of the JBCC to the use of the words “such delay” – in other words, a retrospective delay instead of a prospective delay.

The remainder of the amendments to the Clause are relatively insignificant and it should be noted that the basic principles to the lodgement of claims by the contractor have remained largely unchanged.

The time bar that was contained in Clause 29.5

of the fifth edition has been removed completely from the sixth edition. Previously the contractor could lose his claim if he did not submit his de-tailed claim within the prescribed time limit. Now, even though there is still a prescribed time limit, a failure by the contractor to submit a detailed claim within such prescribed time limit does not seem to carry any consequences.

Conclusion

In conclusion, the claims provision for a revision to the date for practical completion has been somewhat relaxed. While the time bar for the submission of the initial claim has not been re-moved altogether, it appears as though the draft-ers of the sixth edition wanted the clause to read as wide as possible and only have the time for commencement of the 20 days period for sub-mission of the notification to commence once the delay is actually being felt by the contractor. In addition, the removal of the time bar for the submission of the fully detailed claim certainly takes the pressure off contractors, although it is surprising that as a compromise for employers, no alternative consequences for late submission were provided.


Editor’s Note / Guest ColumnistPage 25

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 COLUMNISTSAkheel Jinabhai Euan Massey & Natalie ReynekeOthata BatsetsweTony SilembaTshepiso MotlogelwaBO

IDU

S TE

AM

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]

Editor’s Note: Thank you for making the 2014 CBD Executive Seminar a Success

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:

LAND TENURE IN BOTSWANAby Akheel Jinabhai

WHAT IS LAND TENURE?Land tenure can be described simply as the re-lationship, whether legally or through custom, among people with reference to land. Within this relationship there are rules which govern how property rights (right to occupy, right to use, right to have access, right of way, etc.) are to be allocated in relation to land. A tenure system would therefore seek to regulate who can use what portion of land for a specified period and give the conditions of such granting of rights.

Terms to Consider in Relations to Land Tenure• State land-refers to land that is owned by the

Government of Botswana and can be found in rural and urban areas.

• Freehold land refers to land in which you can enjoy ownership in perpetuity (forever).

• Tribal land refers to land that was formally ad-ministered by Chiefs but is now under the cus-tody of decentralised land boards.

• Registered Leases – A lease of 10 years or more registered with the Deeds Registry is considered as immoveable property. If the applicant wants to register a portion then the application should be accompanied by a diagram approved by the Director of Surveys and Mapping. Once regis-tered, the Lease is mortgageable.

• Conveyance is the legal process of transferring property from one person to another.

• Deed of transfer is a document used in con-veyancing to transfer real property from its le-gal owner to another party.

• Customary Grant of Tribal Land – This grant is available to citizens only. Land held under this grant cannot be encumbered. This grant can be converted into a common law grant of lease. If such approval is granted then the land can be mortgaged once the lease is registered at the Deeds Registry.

• Agricultural Land – This can be State land, Freehold land or Leasehold land. In terms of the Land Control Act of Botswana (Cap 32:11), citizens or majority citizen owned entities shall be given preference in purchasing the same. If a non-citizen wishes to purchase the same, the transaction has to be advertised first and the consent of the Minister of Lands and Housing obtained.

Prior 1966When the foreign settlers came to Botswana (Then known as British Bechuanaland Protectorate) in the 1800s they set a proclamation which made the laws that were in force in the Cape Colony (pres-ent day South Africa) enforceable in the Protector-ate. This proclamation meant that all land that was previously owned by the indigenous people who were the Basarwa was now converted into Crown land meaning the land belonging to the Queen of England. However, before these changes there were practices in places which were not totally abolished by this proclamation.

Before Independence, Botswana had customary rules and procedures which governed land rights. One important feature of that system was the right of avail (being granted land by virtue of being a tribesman). This right was not by the discretion of the Chief or his elders. The Chief was expected to provide land (residential, grazing and arable) for all the inhabitants of his tribal territory. The tribesmen were duty bound to protect and conserve his land. Even though technical concepts like ownership were unknown, rights to land, especially residen-tial, were exclusive and permanent. In terms of ar-able land, the allocation was made by the heads of families. The size of the extended family was taken into consideration. The land would be allocated to the family permanently and they had a right to

Akheel Jinabhai is the Founder and Managing Partner of Akheel Jinabhai & Associates

On the 10th of October Boidus Media returned to Lansmore Masa Square to hold the second installment of an event we held for the first time last year. Boidus Media continually strives to create platforms for progressive dialogue between key stakeholders in the Botswana built environment industry and stakeholder gatherings such as this seminar form a crucial part of this endeavour.

In May 2013 we brought together key stake-holders of Gaborone’s new CBD development including investors, development owners, government leaders and industry champions, to share ideas and opportunities about the CBD. This time, with the CBD still at the cen-tre of commercial development, we put the spotlight on the issue that’s being touted as the key to unlocking Botswana’s development potential going forward – Private Public Part-nerships (PPP’s).

Under the theme ‘Investing in Infrastructure Development through PPP’s in Botswana’ the CBD Executive Seminar 2014 brought together PPP Policy Makers, International experienced PPP experts, Private Equity Funders, Local Pen-sion Funds, Local Property Development Com-pany Owners and Fund Managers to discuss how PPPs can be used to kick-start Botswana’s development. It was truly a remarkable event consisting of some insightful presentations and perceptive discussions.

The President of BOCCIM Mr. Leta Mosienyane and the Minister of Infrastructure, Science and Technology Hon. Johnie Swartz gave the pro-

ceedings a dignified start highlighting the chal-lenges that exist in Botswana’s construction industry and the crucial role public and private sector collaboration can play in overcoming them. The key note speaker Vuyo Ntoi of Afri-can Infrastructure Investment Managers (AIIM) opened the eyes of attendants to how great op-portunities in infrastructure development are being unlocked across the African continent.

We heard from Zurich about insuring and managing risk in PPP infrastructure projects, from FNB about commercial property financ-ing products, from the BPOPF about realising institutional investment in Botswana’s infra-structure and from BITC about Special Eco-nomic Zones. Crucially, representative from Selebi Phikwe, Francistown and Palapye spoke about the infrastructure investment opportu-nities that exist in these towns as they each aim to position themselves as major urban centres within the next ten years. All this made for a comprehensive roadmap on how PPP’s can be used to shape infrastructure develop-ment in Botswana.

Boidus Media would like to extend our grati-tude to everyone who made this event the resounding success it was, including our VIP guests, delegates, presenters and reporters. We would especially like to thank our spon-sors, without whom this event would not have been possible. They are First National Bank (FNB), National Development Bank (NDB), Zur-ich, Masa Centre, Maitisong, RPM, Fine Brands, Gourmet Grill Masa, The Patriot on Sunday and Kutz & Tutz. Le kamoso.

request a new field if the one they occupied lost its fertility.

If an area was not used as a residential space or as arable land, then it was automatically considered as grazing land. There were no fences so everyone had a right to graze their livestock anywhere and cattle roamed freely.

After 1966When Botswana gained independence in 1966, the State Land Act was formulated which turned Crown land (owned by British Monarchy) into State land. This Act gave the President power to be able to dispose of this State land. This land, especially urban land, is administered by Central Government and Local Government Councils. The establishment of the Tribal Land Act provided the establishment of tribal land boards therefore tak-ing tribal land control from the Chiefs and vesting it on the land boards. The vesting of such pow-ers in the land boards was placed in trust for the benefit of all citizens of Botswana. The Tribal Land Act did not change the customary rules entirely but just vested the authority in the land boards and allowed for certificate as proof of ownership of land. The Act went further to provide for grant-ing of common law leases. At the time this was a major innovation from the way things had been done all along.

In 1966 the bulk of the nation’s land was tribal land (49%), a small amount (4%) was freehold land and the balance was state land (47%). By 1980, a lot of state land had been converted to tribal land, whilst a vast amount had also been converted and pur-chased as freehold land. The figures now changed to tribal land (69 %), freehold (6 %) and state land (25%). To date, the figures are also slowly increas-ing. What the Government seeks to do is to in-crease tribal land at the expense of both freehold and state land.

In urban areas state land is allocated on a deed of fixed period state grant which is registered with the Deeds Registry. This grant is usually for a 99 year period. In relation to commercial plots, the grants are for a 50 year period. In low income areas, state land was normally allocated by way of a certificate of rights which has now been taken away in favour of the deed of fixed period state grant. In order to assist people in these areas the Self Help Housing Agency (SHHA) was formed. SHHA was formed in every town in Botswana to allocate land to citizens. This land is not subject to title deed registration and is only held by a certificate of rights. The owner needs the authority of the township authority to alienate the property. This land cannot be mort-gaged as it cannot be diagrammed. The certificate of rights can be converted to a Deed of Fixed Peri-od State Grant if the land is properly surveyed and consent granted.

The Sectional Titles Act, No. 7 of 1999 introduced a new form of ownership of immoveable property in Botswana. This title gives the holder real rights to a specific portion (unit) of a building. The area which is not part of the unit is held as common property by all unit owners. We shall discuss this form of ownership of property, in detail, in future articles to come.

The above is meant only as a brief introduction to the land tenure in Botswana. The information giv-en is general and is not intended as legal advice.


AdvertisingPage 26


AdvertisingPage 27

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 28

Documents

Boidus Focus - Vol 4, Issue 9 [Oct 2014]