Boidus Focus - Vol 3, Issue 7 [Oct 2013] by Boidus Botswana

OIDUS FOCUS Registered at GPO as a Newspaper | Volume 3, Issue #7

Botswana’s Architecture Design and Urban Landscape Newspaper | OCTOBER 2013

www.boidus.co.bw

LOCAL NEWS | page 02

BOIDUS EXCLUSIVE | page 08

PROPERTY | page 14

SUSTAINABILITY | page 16

Establishing the Engineers Registration Board

PrimeTime’s African Expansion Strategy; Interview with Primetime’s Sandy Kelly

BHC Looks to Cement More Private Partnership Opportunities in Property Development

Alternative Investment Opportunities - Energy Sector

P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >

Botswana’s Property Market Opportunities Remain Unexplored: Review of Market Status by Kibo Ngowi & HK Mokwete

At the Property Market Breakfast Forum recently held at GICC, Property Experts delivered critical reviews on the current state of the property market. The discussions highlighted opportunities both current and future but most importantly also highlighted weakness that are beginning to emerge in the Market.

Property Market has generally been a good investment: • Positive real returns • Especially attractive in an environment of low interest rates (negative real rates) • An important asset for both institutions and individuals • Still a large amount of investment in property

But imbalances are appearing, markets are distorted • Danger of over investment • Leads to falling rental yields and poor returns for investors • Knock on impact on banks • Inadequate supply of affordable housing • unbalanced lending - too much lending for retail and commercial property, not enough for residential

[Top Left]: Attendees at the event; [Top Centre]: Keith Jefferis from Econsult answering questions from delegates; [Top Right]: Stan Garrun, the Executive Director of IDP South Africa answering questions from delegates; [Bottom]: From left, Ms Tiny Kgatlwane (BIFM), Victor Senye (Chairperson for BITC and BTO), Reginald Motswaiso (CEO BHC), Martin Hoko (Premierwealth), Stan Garrun (IDP South Africa)

>>> CONTINUED PAGE 02

Botswana’s Institutional Investors Called to Invest Capital in Local Infrastructure Development

Botswana’s Drive to a Knowledge Economy Presents Opportunities for Property Investment

Opportunities in Investments through Special Economic Zones Vehicles-BITC by Kibo Ngowi & HK Mokwete

by Othata A.O. Batsetswe

Botswana’s private sector has one of the largest returns. A closer look at the annual reports of different institutions will show that even with the 2008 global economic meltdown, the private sector in the country still managed to achieve most of the set return. This consistent growth is more evident in the financial services sector but take note that Botswana’s financial services sector is mostly foreign owned, even with those claiming to be locally owned just serving as fronts for the foreign private investors.

Source: Botswana Innovation Hub

Victor Senye

>>> CONTINUED PAGE 04

The Botswana government has embarked on a drive to transform the country from a resource–based econ-

omy to a knowledge-based economy and this move comes with massive opportunities for property investment.

BOTSWANA PROPERTY MARKET

BREAKFAST FORUM 24 t h September 2013 at GICC

[Top]: Presenter David Tsheboeng from Botswana Innovation Hub; [Bottom]: Presenter Lonely Mogara from BITC

>>> CONTINUED PAGE 06

T N E V E L A I C E P S A Boidus Media Event

BREAKFAST FORUM SPECIAL: Local News Page 2

BOIDUS FOCUS October 2013

Botswana’s Property Market Op- LOCAL NEWS FEATURE portunities Remain Unexplored: Establishing the Engineers RegReview of Market Status istration Board by Kibo Ngowi & HK Mokwete

by Boidus Admin

Boidus Focus sat down for an exclusive interview with the Registrar of the Engineers Registration Board (ERB) Armando V Lionjanga to gain some insight on the long journey ERB has traversed to become the first regulatory body for construction industry professionals.

FROM PAGE 01 >>> Property in Botswana has generally been a good investment generating positive real returns, benefitting from the low interest rate environment and proving to be an important asset for both institutions and individuals. However imbalances are appearing that are distorting the market: there is a danger of an overinvestment leading to excess supply of retail and commercial property. This in turn can lead to falling rental yields and poor returns for investors. The more this begins to happen we may witness rampant business failures which will cause a knock on impact on the banks.

We should also recognise that much of the development is being driven not by underlying economics but rather by rules and regulations such as the development covenant on commercial CBD plots; Pension fund rules on local asset holdings in the retail sector; and Land availability and planning/zoning rules for residential property. The role of Parastatals such as the BHC and BDC has also not evolved over time in response to changing economic circumstances.

Another imbalance is the danger of excess demand for residential property; the inadequate supply of affordable housing in Botswana already has the potential to create serious social problems that will affect the entire economy. There is simply

Overall the positive aspects of the Botswana property market are that it is an active, buoyant property sector which provides an investible asset; it is mostly private sector driven; and that there are no evident signs of major financial imbalances. The negative aspects are the unbalanced development; gaps in affordable housing and development outside of Gaborone; and a tendency towards boom and bust cycles which can be disruptive.

too much bank lending for retail and commercial property while there is not enough for residential. Another concern is that these developments are concentrated in Gaborone while other urban centres of the country remain neglected. And an important point to recognise is that the kind of property investment currently being perpetuated doesn’t directly address long-term economic needs – Botswana needs investment in export-focused activities and not enough property investment supports this.

There needs to be a policy evolution in land, zoning and planning rules; the role and mandate of Parastatals, particularly BHC and BDC, needs to be updated; the secondary impact of decisions needs to be examined more closely; provision of public infrastructure needs to increase; and there is a dire need to focus on removing or reducing market distortions in order to allow development decisions to reflect real economic and social needs not artificial rules and restrictions.

Property Investment & Construction Expo October 2013 by Boidus Admin

The 5th of September was a landmark day for the engineering profession in Botswana that had been 15 years in the making. A special ceremony was held at Gaborone International Convention Centre where the Honourable Minister of Infrastructure, Science and Technology Johnnie Swartz officially announced the commencement of statutory registration of professional engineers. It was way back in 1998 when the Engineers Registration Act was passed in Parliament but this was followed by a decade of near silence. The wheels only truly began turning in 2008 when the Act was reviewed and amended. The founding Board of Directors was appointed in April, 2010 with a composition including three members from the Botswana Institute of Engineers (BIE), three selected by the Minister of Science, Infrastructure & Technology, and the sitting President of the BIE as the seventh member. The Board appointed Armando Lionjanga as the first Registrar of the ERB in February, 2011 for a contract period of three years commencing 1st March, 2011. The founding Registrar, who acts as the Managing Director of the organisation, was given this lengthy contract period to allow ample time to establish a functioning organisation. Lionjanga explains that the main difference between ERB and BIE is that while both organisations seek to ‘promote the highest standards of engineering practice in Botswana’ ERB has the additional mandate to ‘protect the welfare and interest of the public in the engineering practice’ and to do this they have the weight of the law behind them to punish offenders. The registration of an engineer consists of two parts: firstly, the engineer is registered and thus added to a register of professional engineers within Botswana; secondly the engineer has to apply for a practicing certificate and once that certificate is issued the applicant will be legally allowed to provide professional engineering services. The certificate is valid for one year from the date of issuance and the ERB has the power to strike the engineer off the list and revoke their practicing license in the case of unethical practice or any activities that ‘cast doubt on their professional ability’. ERB has mandated a one year period for the registration exercise meaning that by 5th September 2014 only registered Engineers will be legally allowed to practice in Botswana. Lionjanga explains that the biggest challenge he and his colleagues faced in establishing the ERB was financing. So the board continually engaged government to provide additional funding and the call was finally heeded in April 2013 when MIST gave out an additional P5million with the ERB’s annual budget of P1million. Five months later ERB was able to commence statutory registration. However, the ERB has been encouraged to find alternative money-generating activities to eventually become a self-sustaining organisation; the first of these will be the annual registration fees paid by all registered engineers. The subvention also allowed the ERB to engage the services of a technical advisor in the form of Professor Kai Sang Locke from Singapore who has been involved in the formation of regulatory bodies for the engineering profession in different parts of the world and was commissioned for a ten-week contract to advise on technical issues related to the creation of a regulatory body. A three-year strategic plan commissioned by a human resources consultancy firm was adopted in May 2012 and suggested that the ERB should have a staff complement of 17 but under budget restrictions this number was revised down to 8 which includes the Registrar, a personal assistant to the Registrar, a Standards Manager, an ICT Manager, a Registration Officer, a Driver, a General Office Cleaner and a Receptionist/Clerk. Lionjanga is clear on the need for regulatory bodies in Botswana’s construction industry and what he hopes they can achieve: “It’s very important that the professions that are at the forefront of the construction industry – such as quantity surveyors, architects, and engineers – should be regulated by statute to ensure that only qualified and experienced professionals in those disciplines are actually awarded work in this country. This will weed out the unsatisfactory situation where non-qualified professionals have been coming here and getting away with a lot of murder. This initiative seeks to close that chapter by bringing construction industry professionals into a regulated environment.”

Source: propertyexpobotswana.com

The Property Investment and Construction Expo is a leading expo for Real Estate investment decisionmakers from all relevant property and construction sectors brought together in the same place, at the same time. This year it was held at Boipuso Hall between the 11th and 13th of October.

This expo offers you the ideal platform to meet potential new business partners, secure deals, generate product sales and to lay the groundwork for new and existing sustainable business opportunities in Botswana’s Property Investments and Construction sectors.

The offices of the ERB are located in Kgale View Terrace, Gaborone and Lionjanga says contact details will soon be available to the public in order for them to forward any complaints regarding professional practice of engineers. The establishment of the ERB heralds a new chapter in the history of Botswana’s construction industry that will go a long way to foster and enforce professionalism, first among engineers and then amongst the other professions that will move towards their own forms of regulation on the back of the momentum generated by the ERB.

BOIDUS FOCUS October 2013

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Advertising Page 3 BOIDUS FOCUS Monday 31 October, 2011

BREAKFAST FORUM SPECIAL: Institutional Investors Page 4

BOIDUS FOCUS October 2013

BOTSWANA PROPERTY MARKET BREAKFAST FORUM SPECIAL: INSTITUTIONAL INVESTORS

The Property Market Outlook for Institutional Investors

urbanisation and population growth; the impact of globalisation; and efforts by both the public and private sector to stimulate the national economic agenda.

by Kibo Ngowi

There are important challenges to be overcome however which go a long way to explaining the case of limited local investment in property such as the need for a conducive policy framework; government contribution to primary bulk infrastructure; the risk management involved in pension fund investing; the fact that control of a large portion of assets remains in the hands of the government; and poor professional supervision of projects. With all that said there are still great opportunities in the Botswana property market such as Residential land servicing

Mr Victor Senye, the Managing Director of Haighs Investments (Pty) Ltd and former CEO of Bifm delivered a presentation on the institutional investors and the Botswana property market. Haighs Investments (Pty) Ltd is a wholly citizen-owned company established in 2006, with Mr. Victor J. Senye as the Managing Director whose core business is in the area of property development and investment services. The company’s transaction pipeline includes such developments as Airport Junction Mall and Fairgrounds Office Park and Haighs is currently part of a joint venture offering property asset management to the pension industry in Botswana.

The key points Senye highlighted in expounding the virtues of property as a viable investment were: the insufficiency of traditional asset classes to deliver the return; the need for companies to create assets to match the liability profile; the need for companies to seek alternative assets in order to create risk mitigation through diversification; the value of property as a hedge against inflation; and the value of property as an income stream and source of capital value appreciation. Senye also highlighted that the investment landscape in Botswana has changed due to a number of factors including: the government revenue base being put under increasing pressure; a significant impact on services resulting from mass

to feed the high demand for plot ownership; PPP – First provider of capital to Government utilised properties; Infrastructure development such as dams, pipelines, airports and sewage; and Parastatals land bank development.

Sector

Opportunity

Infrastructure

Road Networks • Gaborone multi-nodal networks (replacing of roundabouts) • Gaborone multi layered transit systems • CBD Road connections and other infrastructures

Energy

Coal power plants Alternative energy systems • Solar plant research systems –Kalahari desert • Rural electrification projects

Water

Dredging Existing Damns New private water sources Water Conservation Research • Grey water harvesting infrastructure • Rain cloud making technology research

Housing

Affordable housing infrastructure and research Housing funds and alternative housing Technologies

Botswana’s Institutional Investors Called to Invest Capital in Local Infrastructure Development by Othata. A. O. Batsetswe BA Economics & Population Studies, Master of Finance & Control Post Graduate Certificate in Risk Management (EXP), Project Management. [The author writes in his personal capacity] FROM PAGE 01 >>> My assumption has always been that this massive foreign ownership can also be partly blamed on the limited use of the country’s vast assets and financial returns to stimulate economic diversification in the country. The most common challenge has always been that the government still has a heavy hand in infrastructure development but what is never discussed is the question as to whether the private sector ever ask government where they can pitch. That’s for another day. Ever since the Excellence Strategy the private sector has always remained mum and kept a long distance to participate in the economic diversification drive. For Botswana to develop there is need for an attitude change especially in the Boards that are responsible for making investment decisions. Investment is the ability to add value in service provision. In Botswana there are many institutional investors, these are considerable large organisations that have considerably large cash that needs to be invested. Institutional investors face fewer

protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves. A closer look at Botswana’s economy shows that there are many organisations partly owned by government that believe their duty is just to make money and pay tax and that’s not enough (and by the way my take is that a parastatal should be self-sustaining within 5 years of being setup). Companies like Motor Vehicle Accident Fund, Botswana Pension Fund, Botswana Insurance Holdings, Debswana Pension Fund just to mention a few have healthy balance sheets and guaranteed returns to an extent that they should have diversified their role in the economy to assist government set up the much needed facilities. The pensions fund management companies with their guaranteed contribution from government could embark on addressing more needed infrastructure that the economy needs. The developments at the CBD are sure to cause major traffic congestion problems yet the same private entities building in the area believe it is up to government to put up infrastructure, neglecting the fact that ease of access is crucial to their business success. However an opportu-

nity that exists is that the MVA can instead build bridges that can link government enclave directly to CBD and then have more of those going into

Phase 1, 2 and Block 3, the spaghetti roads. They can then just charge a fee, a minimum fee of P10 for the whole day access. People will always pay for convenience. That way the company gets to have a healthy balance sheet from such a huge investment. The other area where institutional investors can play a role is in the area of affordable and dignified housing. There is a shortage of accommodation in Gaborone and other areas. The private sector can partner with BHC to construct such affordable housing. If Debswana built 8 houses, two bedroomed houses for P1.2 m then the same initiatives

>>> CONTINUED PAGE 05

BOIDUS FOCUS October 2013

BREAKFAST FORUM SPECIAL: Institutional Investors Page 5

Botswana’s Institutional Investors Called to Invest Capital in Local Infrastructure Development

by Othata A.O. Batsetswe

FROM PAGE 04 >>> can be replicated in Gaborone for the same cost, give govt duty to provide land (terms and conditions will apply) then the private sector can build affordable housing to meet the demand. This of course will then call for regulated rental prices

Fund

which is what the economy needs right now. The institutional investors can also make a commitment to contribute 0.002 of the total returns to finance critical social projects that the economy needs and these social infrastructure pro-

Short Description

gramme could entail investing in the smooth running of the sewerage system across the country. The pandemic of breakouts is high that it requires a coordinated private sector led strategy and this is also a way of saying ‘thank you’ to the customers because if a pandemic breaks out then

Estimated Net Worth

Some Key Projects

As at 31 December 2011 portfolio market value was P2.4 billion with an overall asset allocation as follows: • Equities 55.7% • Fixed income 21.6% • Property Investments 4.7% • Cash & cash equivalents 18.0% Offshore investments Assets placed with Blackrock Investment Management increased from P234.6 million ($37 million) in December 2010 to P333.4 million ($45.3 million) in December 2011.

Motor Vehicle Accident Fund

As at the 31st March 2012, the assets of this portfolio were invested mainly in The Botswana Pub- equities/shares with a lower lic Officers Pension allocation to bonds and cash, Fund (BPOPF) and alternative investments such as property.

Botswana Insurance Holdings

Emerging Market Equities, 20.18% Offshore Hedge Funds, 2.11% Offshore Cash, 1,16% Offshore Bonds 8.53% Developed Market Equities 29.33%

Africa Funds (Domestic Asset Status) 0.73% Domestic Private Equity 5.34% Domestic Property 0.39% Domestic Cash 5.63% Domestic Bonds 9.10% Domestic Equities 17

Sanlam Limited, a multifaceted financial services group that is highly respected across Africa, is the majority shareholder in the BIHL Group with a 53% shareholding.

The Group has total assets of P12.2 billion. In 2010, Revenue: > Net premium income increased by 29% to P1.6 billion > Fee income increased by 14% to P137 million > Value of new business increased by 16% to P132.3 million

The Fund is currently (2010) invested 58% Bonds and Cash, 4% Property. The Fund portfolio investments were in line with and within the pre determined ranges of its strategic asset allocation and rebalancing limits at the end of 31 December 2011.

At 31 December 2010, the Fund value was P3.2 billion, up by P200 million up from previous years’s valuation of P3billion.

-Ombudsman HQ-2008 -SADC Head Quarters-2009 -Rail Park Mall-2010

there will be no clients. Other opportunities for such a pooled social responsibility entails seeing beyond: govt is now worried about supplying water to the nation while the private sector is complaining about how business is going to affected. The vision required is not for them to think about slowdown, the continuity models for setting up in a semi arid country entails finding ways to keep going when the rains don’t come. The private sector could embark on expanding the Gaborone dam by digging it deeper, and investing into research on how evaporation can be minimized. They should be coordinating initiatives to ensure that there is sufficient water in the dams. What would be wrong with transporting water in the same manner that we buy petrol from South Africa? That’s a private sector opportunity. The Public Private Partnerships model that most governments are embarking on has always worked well if correctly implemented. The much talked about South African roads are a clear indication of how a coordinated planning effort between the private sector and government can always deliver the much needed projects. The SADC HQ is also one of the best models, for P200m. As a finance, economist and risk specialist a, closer look at the model and plan will cost govt P500m minimum. The PPP model advocates for services to be paid for by the user not the taxpayer as has always been the case, however care should be taken that we do not take a rate of return that is higher than the government’s bond rate as it has always been the case with most charges in Botswana.

NNO ME LOAN Debswana Pension Fund

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Gaborone >Tel: +267 3952801 | Fax: 3971044 • Francistown >Tel: +267 241 6044 | Fax: +267 241 6065 • Maun > Tel: 686 0316 | Fax: 686 0645 Palapye >Tel: +267 492 0552 |Fax: +267 492 0551 • www.ndb.bw

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WORKING TOGETHER FOR A BETTER FUTURE

BREAKFAST FORUM SPECIAL: Special Economic Zones Page 6

BOIDUS FOCUS October 2013

Botswana’s Drive to a Knowledge Economy Presents Opportunities for Property Investment

Opportunities in Investments through Special Economic Zones Vehicles-BITC by Kibo Ngowi

Diamond Hub and BITC. After this stage the SEZ programme will be taken to Fairgrounds Office Park also in Gaborone and then on to other urban centres across the country such as Lobatse, Selebi Phikwe and Francistown. Under the SEZ programme international investors can enjoy a tax holiday of up to 10 years if the company commits an investment of P5 billion or

more; creation of at least 2500 jobs; at least 15% of turnover spent on R&D and at least 30% of the investment on spin off businesses. At the lower end of the scale international investors can enjoy a tax holiday of a year with investment of at least P156 million; creation of at least 80 jobs; at least 2.5% of turnover spent on R&D and at least 5% of the investment spent on spin off businesses.

SSKI Airport

Transport Hub

SEZ BIH

Diamond Hub

SEZ (Special Economic Zones) Selected Sites in Botswana; BITC • SSK International Airport in Gaborone: Multi-use SEZ; CAAB, BIH, BITC, Diamond Hub.

• Selibe Phikwe: Selibe Phikwe Economic Diversification Unit (SPEDU) ,BCL Polaris II, Iron steel, Copper and Metal, Logistics hub etc..

• Fairgrounds area in Gaborone: Financial services and corporate HQ village.

Serviced Land (BIH) FROM PAGE 01 >>> The Botswana Innovation HUB (BIH) represents an aggressive strategy to attract science and technology companies to set up in Botswana and this presents a golden investment opportunity for property investors. BIH has land to develop ranging from P850 to P1200 per square metre which can be acquired on long terms leases. BIH

also has flexible partnership schemes to share the cost of land and equity with shares drawn out proportionally to investment. BIH boasts a total of 41 plots of variable sizes for long term leases to develop and 36 Hectares available for spin off businesses in manufacturing & production. The Botswana Investment and Trade

Centre (BITC) will be the custodian of the Special Economic Zone (SEZ) programme aimed to overcome barriers to both trade and Foreign Direct Investment (FDI). The organisations in the area surrounding Sir Seretse Khama International Airport (SSKIA) will be the launching pad for the SEZ programme which in addition to BIH includes Civil Aviation Authority (CAA),

A Science and Technology Park: Partnership opportunities with BIH • • • • • • •

Fully Serviced Plots total of 57 hectares. Total of 41 plots of variable sizes for long term leases to develop. Tenant Mix – Science & Technology & Related Business Support. Zoning is mixed use developments 36 Hectares Available For Spin Off Businesses – Manufacturing & Production Further Subdivision Of Land Prime location : proximity to the airport, the diamond trading centre, shopping malls, Botswana Bureau Of Standards, Free Enterprise Zone area, • Tax Incentives, Labour Dispensation, Superior ICT Infrastructure, Superior Bandwidth Scenario A

Scenario C

Contribution

Partner

BIH

Contribution

Partner

BIH

Land

P 0 Mil

P 25 Mil

Land

P 0 Mil

P 25 Mil

Equity/Cash

P 50 Mil

P 25 Mil

Equity/Cash

P 75 Mil

P 0 Mil

50%

75%

25%

Scenario B

Scenario D

Contribution

Partner

BIH

Contribution

Partner

BIH

Land

P 0 Mil

P 25 Mil

Land

P 25 Mil

Equity/Cash

P 30 Mil

P 05 Mil

Loan/Equity

P 75 Mil

Loan

P 20 Mil

50%

100%

• Lobatse: Beef, leather and biogas park. • Greater Palapye: Integrated coal value addition, dryport logistics, coal power generation and export SEZ in the vicinity of.

• Selebi-Phikwe: Horticultural SEZ in the Tuli Block Area. • Francistown: Mining & logistics and downstream value-addition hub. • Pandamatenga : Agricultural SEZ.

Proposed general incentives for SEZs (Special Economic Zones) in Botswana; BITC Tax holiday under Development Approval Order for companies that meet the criteria below: No. of Years

INVESTMENT (Billion Pula)

No. of Job (at least)

% of turnover spent on R&D

Pula Value of Spin offs (of at least)

2500

15.00

30% of the investment

2.5

1250

12.50

25% of the investment

1.25

625

10.00

20% of the investment

0.625

312

7.50

15% of the investment

0.3125

156

5.00

10% of the investment

0.15625

2.50

5% of the investment

a. 15 % tax for companies that do not meet TABLE above b. Machinery and equipment can be imported duty free c. 200 % tax deductible training costs d. No foreign exchange control e. No income tax for the first 5 executive positions for the first five years f. Automatic issuance of work and resident permits the first five executive positions and subsequent permits to be issued by SEZA. g. More incentives are being proposed to better the ease of doing business climate in Botswana and specifically in the SEZ sites.

BOIDUS FOCUS October 2013

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BOIDUS FOCUS October 2013

PrimeTime’s African Expansion Strategy by Kibo Ngowi

In his presentation at the Boidus Property Market Breakfast Forum, PrimeTime Property Holdings Limited (PrimeTime) Executive Director Turnie Morolong, touched on their expansion ambitions for the African region. Boidus Focus sat down for an exclusive interview with PrimeTime Managing Director Sandy Kelly to gain a deeper insight into the company’s moves up Africa. Within Botswana, PrimeTime Property Holdings Limited is a force to be reckoned with boasting a portfolio that consists of 21 properties spread across the country. Late last year PrimeTime completed its first venture outside of Botswana’s borders with the purchase of two properties from British security firm G4S. The purchase is on a ‘sale and lease back’ contract that will run over an initial 10year lease period. The deal is for two properties, located in Lusaka and Kitwe, for roughly ZK8 million (P12.5 million), with the intention to substantially upgrade the properties in the near future.

company get a foothold as far afield as West Africa. The countries that the company would consider include Mozambique, Uganda, Rwanda, Tanzania, Kenya and Ghana. “All the big South African players talk about going into the region but they talk about going in there with R1 billion or $100 million plus,” says Kelly commenting on the large South African investors already active up Africa such as Investec, Sanlam, Liberty Properties, RMB, Atterbury and Actis. “In contrast our strategy is to take bite-sized opportunities which are more easily fundable and less risky. We know that market. We’re probably a market leader with regards to smaller office blocks such as Prime Plaza and smaller shopping malls like Sebele Centre. So the model we have here we believe we can apply there. And because these are smaller chunks we are operating in a space that is too small for the other active investors.”

financial crisis was a wake-up call for everyone in Botswana that the country is a single-product economy, reliant on diamonds, so “it would be a mistake to have all our eggs in one basket. We need assets outside the country.” Secondly, there are no less than five listed property funds on the Botswana Stock Exchange along with other major investors active in the country, “so the competition for limited opportunities is very strong. Though Time Projects (PrimeTime’s development managers), does have developments in the pipeline those are too limited for us to rely on solely.” The last and probably most crucial reason is that they have recognised immense property investment/development opportunities in other parts of Africa. “It’s a good story out there,” says Kelly. One example Kelly points out as a general opportunity for property players looking into the African region is that of the large demand for low-cost housing in relatively underdeveloped Zambia: “We’ve got the recipe for mass low to medium-cost housing because that’s how Time Projects started with the housing developments in Kgale View and Block 6 and more recently Boiketlo Estate in Phakalane, so we’re confident in housing construction. And these opportunities are going to exist substantially across Africa. If you consider that the population of Africa is going to double by 2050 and both development and urbanisation are on the rise there’s going to be a huge demand for affordable housing.” There are some difficult challenges in entering these foreign markets however. In Zambia Kelly notes the main challenge is that the government bond rate is 12.5% so you can only get funding realistically at 15% which is too high. An even more pressing concern from a property development perspective is that of construction cost.

This is just the start of an expansion plan north-

Kelly says there are three reasons PrimeTime has taken the decision to look outside of the country

“In Zambia where there isn’t much skill but the resources are available the cost of construction may be 30% higher than what it is in Botswana or South Africa; in Ghana or Nigeria it may be as high as one and a half times but in a place like Angola the

wards into the African region that may see the

for opportunities. The first is that the 2008 global

cost may be two or three times greater. But then

in East Africa it may actually be cheaper because the resources such as materials and skills are more readily available.” While plans are still at a speculative stage Kelly notes they are in the process of getting comfortable with Mozambique following indications from banks such as FNB, Investec and Stanbic at the recent Africa Property Investment Summit in Johannesburg that the banks can get adequate security on title in that country. However there are concerns in places including Mozambique about the reliability of the land tenure system. “Botswana is very solid in terms of its legal system. If somebody sells you a piece of land you can go to the deeds registry and it’s 100% solid that so and so owns this piece of land. And you can buy it from them or if there’s an allocation of land it’s completely above board. Those things are questionable in certain places such as Mozambique where there have been cases of people being allocated a piece of land from the Governor of the province only for the land to be repossessed for reasons that don’t add up. They’re trying to address those problems. The stories are endless in places like East Africa and Nigeria. You’ve got to do a thorough due diligence check to make sure somebody is actually selling a piece of land that belongs to them. So there are huge challenges in terms of land tenure there.” These aren’t the only challenges in the region but Kelly and his team are not daunted because for those who can overcome the obstacles the rewards are sweet: “The opportunities up Africa are good because it’s generally dollar income that people are chasing and whereas you may be able to fund at 6 or 7% cost of borrowing in dollars you may be able to develop at 10 or 11% return on your property. Typically the developers will be developing at 10, 11% and the likes of Sanlam, the long term property investors will be buying at 8% so there’s an opportunity for the developer to actually take the risk and develop. With the dollar returns, borrowing at 6% and getting a long-term return of even 8% does make sense. So we actually need to go out there and do it. It is hard work but the opportunities are there.”

BOTSWANA PROPERTY MARKET BREAKFAST FORUM SPECIAL: IPD BOTSWANA INDEX

Lessons from the IPD Botswana Index

by Kibo Ngowi

Stan Garrun, the Executive Director of IPD, South Africa reflected on what tentative lessons have been gained from two years of producing an IPD report on the Botswana market.

2011

20.0

2012

15.0 10.0 5.0 0.0 -5.0

Botswana Hong Kong China Taiwan Indonesia Malaysia South Africa Canada USA Australia New Zealand South Korea Switzerland Sweden Poland Austria Finland France Czech Republic Norway Germany Denmark Japan Belgium UK Ireland Italy Netherlands Portugal Hungary Spain

Residential and industrial property have been the best performing sectors off a base of high capital growth. Office sector trailed behind all the sectors although it posted a positive capital growth. Low vacancies were recorded across all the sectors in Botswana while office tops the list with an annual average vacancy rate of 1.9%. Operating costs in all sectors still stable except in the retail sector which registered a slight increase. Globally, Botswana was one of the emerging markets which recorded a significant property growth in 2012.

25.0

%pa

It is important to note that the data collected for the report was from only 7 property funds – Turnstar Holdings, PrimeTime, Letlole Larona, Wharic Construction, Debswana Pension Fund, Bifm and MVA Fund – which is far too small a sample to give a truly representative view of the Botswana property market. Nonetheless the IPD report is still the closest thing to a complete picture of Botswana property available. According to the IPD Botswana Index the return on property in 2012 was a strong 17.9% which was however a fall of 3.1% from the 21% return recorded in 2011.

African returns globally attractive

Contributors to the database:

BOIDUS FOCUS October 2013

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BOIDUS FOCUS October 2013

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The annual Broll property report 2013

glObal ECONOmiC OuTlOOk

by Boidus Admin / Source: www.broll.co.za

GLOBAL ECONOMIC OUTLOOK The outlook for an upturn in world growth in 2013 is brighter than that of 2012 when the risk lay with renewed recession across a number of major economies. Economic conditions improved modestly in the third quarter of 2012 (Figure 1), with global growth increasing by approximately 3 percent. The main sources of acceleration were emerging market economies, where activity increased broadly as expected, and the United States, where growth exceeded expectations. Financial conditions stabilised, while bond spreads in the Euro area declined and prices for many risky assets, notably equities, rose globally. Capital flows to emerging markets remained strong.

in 2013. As the Eurozone and US economies recover, there is clearly potential for companies’ earnings and share prices to rise further. This in turn could have a positive indirect effect on financing conditions as banks become more inclined to lend to households and companies.

Growth in emerging market and developing economies is on track to reach 5.5 percent in 2013. Nevertheless, growth is not projected to rebound to the high rates recorded in 2010–11. Supportive policies have underpinned much of the recent acceleration in activity in many economies. Given the assumption of lower commodity prices in 2013, weakness in advanced economies will undoubtedly weigh on external demand, as well as on the terms of trade of commodity exporters. Economic growth in sub-Saharan Africa is expected to remain robust, with a rebound from flood-related output disruptions in Nigeria contributing to overall growth in the region

Sourced from oxford economics/imf report

The outlook for an upturn in world growth in 2013 than that of 2012 when the risk lay with renewed across a number of major economies. economic conditions improved modestly in the third quarter of 2012 (figure 1), with global growth increasing by approximately 3 percent. the main sources of acceleration were emerging market economies, where activity increased broadly as expected, and the united States, Figure 1: gloBAl gdp growTh

glObal ECONOmiC OuTlOOk

SUB-SAHARAN AFRICA- Comparable property trends Sourced from oxford economics/imf report

Emerging & developing economies

Figure 2: g World

Advanced economies

www.broll.co.za

7% 6%

Emerging & developing economies

2% 0 -2%

where growth exceeded expectations. financial conditions stabilised, 0 while bond spreads in the euro area declined and prices for many 2011 2012 2013 risky assets, notably equities, rose globally. capital flows to emerging source: imf staff estimates markets remained strong. The annual Broll property report 2013 >> global economic outlook

Figure 1: gloBAl gdp growTh

Figure 2: gdp ForecAsTs, % pA

World

2013 – 2017

Advanced economies

Difference to trend

2011

2012

2013 source: imf staff estimates

The annual Broll property report 2013 >> global economic outlook

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-2%

6% 4%

The outlook for an upturn in world growth5%in 2013 is brighter 4% than that of 2012 when the risk lay with renewed recession 3% across a number of major economies. 2% economic conditions improved modestly in the third quarter of 2012 (figure 1), with global growth increasing by approximately 3 percent. the main sources of acceleration were emerging market economies, where activity increased broadly as expected, and the united States,

where growth while bond sp risky assets, n markets rema

sources: economist intelligence unit

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BOIDUS FOCUS October 2013

BHC Looks to cement more Private Partnership Opportunities in Property Development by Boidus Admin property and has done so with considerable success in the past.

CHALLENGES • Sourcing of funds for developments • Cost of construction – affordability • Availability of land in strategic areas • Lack of infrastructure

FUTURE OUTLOOK • Look for more partnership/ joint venture opportunities • Consider Cluster/ Gated residential developments/ Sectional Titles • Consider packaged developments

BOIKETLO ESTATE; Construction of 147 houses in Phakalane in partnership with Time Projects

Some of the property developments BHC has completed with private sector cooperation in the past include the construction of 147 houses for the Boiketlo Estate in Phakalane and the Lot 5129 Office Park in Central Gaborone both through partnerships with Time Projects. BHC has also collaborated with Plaza Centre to develop Galo Shopping Mall in Francistown and Lot 7 in Gaborone Station. A neglected avenue for development opportunities in Botswana’s growing property market is the Botswana Housing Corporation (BHC) private partnership scheme. Speaking during his presentation at the Boidus Property Market Breakfast Forum BHC CEO Mr. Reginald Motswaiso explained that the parastatal is willing to enter partnerships with private entities to develop

Motswaiso explained that potential partners can approach BHC with land or capital investment and the partnership can take the form of an equal partnership in which parties equally share in the proceeds of sale or rental or a non-equal partnership where investment by the parties is not equal and they share in the proceeds in a way that is proportional to their investment.

GALO SHOPPING MALL in Partnership with Plaza Centre

This is a partnership between BHC and Time Projects (Pty) Ltd. The partnership is developing some 147 housing units at Phakalane for sale to the general public. As at end of March 2008 some 114 plots had been sold. The development period for the land which

The partnership is between BHC and Plaza Centre (Pty) Ltd. The partnership is running a commercial centre in Francistown trading under the name and style GALO. By the end of March 2008 the centre was 99% occupied.

was originally bought from Phakalane Estates expired early last year. The development period was renewed for 1 year after an amount of P1.5 million was paid to Phakalane Estates. The partnership recorded a profit of P790 267.00 as at 31st December 2007.

The partnership made a profit of P1.63 million as per its audited financial statement for the year ended 30th April 2008. The partnership recorded a profit of P799 267.00 as at 31st December 2007.

LOT 5129 in Partnership with Time Projects

The partnership is between BHC and Time Projects (Botswana) (Pty) Ltd. The partnership is running an office building on plot 5129 Gaborone. The office block is fully let to Bank Gaborone.

The audited financial statements for the partnership for the financial year ended 31st December 2007 show that the partnership made a small profit of P724 740.00 compared to last financial year’s loss of P20 451.00.

BOIDUS FOCUS October 2013

BREAKFAST FORUM SPECIAL: Real Estate Page 15

Real Estate Institute of Botswana (REIB); an Overview by Boidus Admin

Professionals Act, which established the Real Estate Advisory Council with the responsibility of certification of Property Professionals. The Real Estate Institute of Botswana is the only recognized professional body in Botswana representing the interests of the property profession.

and diffusion of knowledge relating to all activities in (A) above and related subjects and, iv. Promoting such legislation as may be necessary to achieve the proper control of all persons engaging to wish to engage in any of the activities in (A) above.

Objectives

To promote proper conduct and good relations between members and provide for the amicable settlement of disputes among members.

To unite in one body all persons participating in the profession of an auctioneer, estate agent, valuer or property manager. To promote and encourage high standards of professional practice in relation to property valuation, estate agency, property management, property auctioneering and related activities by; i. Establishing and maintaining a code of professional conduct and practice for members and, ii. Preventing illegal, dishonorable, improper and objectionable practices by members and, iii. Providing opportunities for the acquisition

Real Estate Institute of Botswana is the leading professional body representing the interest of Property Surveyors. It promotes and encourages high professional and ethical conduct in respect of the profession concerned with the management and development of land and property. A Brief Background The Real Estate Institute of Botswana was established in 1994, primarily due to unsavoury behavior of certain individuals who robbed the public of their hard earned money by masquerading as

To protect and promote the interests of members, the property professions, and the public in relation to any of the activities of members included in (A) above. To promote legislation and amendments to the law in relation to any of the activities in (A) above. To establish and maintain good relations with other professional bodies in Botswana, to establish links with similar societies in other countries and support any international bodies with similar objectives.

qualified and experienced property professionals. The formation of the Institute was against the backdrop of unprecedented high growth rates of the economy in the late 80’s and early 90s which led to Kgabo Commission. The Kgabo Commission focused on land problems in Mogoditshane and peri-urban areas. Visionary members of the profession in the country saw a need for serious intervention to protect the image of the profession and restore public trust. What was to follow was sustained advocacy for consumer protection and lobbying of government by the Institute, which led to the enactment of the Real Estate

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BOIDUS FOCUS October 2013

SUSTAINABILITY TODAY

Alternative Investment opportunities - Energy Sector by Phenyo Motlhagodi This month’s column is in line with Boidus Media’s recently held Botswana Property Market Breakfast Seminar that was underpinned by the IPD report and addressing at length, the alternative investment opportunities that are part of the property/development value chain. The Southern Africa Development Community has an abundance of energy resources; however it is lagging behind the rest of the continent in electrifying its rural settlements and providing adequate power for its commercial centres. Only 24% of rural settlements in SADC are electrified compared to the 36% managed by the East African power pool and 44% by West Africa. Wider access to power services is still a challenge and an even greater challenge to investment. That said, there are efforts being forged to bridge the energy gap. The big debate is; how to best go about

it and take advantage of the investment potential that exists within that gap. The SADC region currently has installed power capacity of 55 Giga Watt of which 74% is provided for by coal, 20% by hydropower, 4% by nuclear and 2% by diesel according to recent stats. There are plans in place to grow the grid so that peak loads go up to 77 GW by the year 2020 and then 115 GW by 2033. This is where the investment opportunity is presented, and equally, the challenge. As exciting as all this sounds, the biggest hurdle currently is policy and its certainty, or lack of. Its coherence too is a major factor. Even though different SADC member states seem to be formulating policy for sustainability, in the general sense, cutting across energy i.e. South Africa and Botswana, there is still great need for real investor assurance on the stability of the energy sector. There needs to be set policy essentially so that it does not seem to be self-contradictory or contradicting any policy that ad-

dresses sustainability. In the last issue I spoke at length about this, drawing comparison from the rest of the world and bringing it back to Botswana to say; it is welcomed that we are now looking at regulatory bodies in as far as buildings, Climate Change and the more general sustainability issues, but it is crucial that the left knows what the right hand is doing, especially if the different bodies and their policies should be complimenting each other. This is the only way that the investor can start to consider any state or region in a serious manner. Infrastructure development has been one of the biggest constraints too. The said challenges in mind, investment potentials, targets and projections etc. The frustration is that, as it is, industrial productivity is steadily growing in the region (Botswana included) and the World Bank is said to have anticipated an increase in electricity demand by 40% over the next 10 years. All of this

20MW Gemasolar Plant: highest value of any production solar plant in the world [Source: theenergycollective.com]

Torresol Energy has announced the commissioning of its Gemasolar CSP electrical plant. It went on-line 5/24/2011, with a maximum output of 19.9 MW, and 15 hours of thermal energy storage, which allows it generate power 24 hours per day many months per year. The plant (formerly called Solar Tres when the business partners were different), is located near Seville, Spain (the Andalucía region). The annual electrical output of 110 MWh/year equates to a capacity factor of 63.1%. This is the highest value of any production solar plant in the world. This is not quite baseload, but it would need half the fossil fuel backup of PV technology. It would also have one third of the transmission cost of PV (making the best solar choice for projects

like http://www.desertec.org/ ). The secret of the high capacity factor is the sunny location (expected 270 productive days/year), and a solar field that is so oversized that significant summer collection is discard in order to get more operating hours during the rest of the year. Gemasolar is the first commercial central tower plant equipped with a molten nitrate salt thermal energy storage system, first demonstrated by the US DOE at the Solar Two plant in Barstow California in 1998 (ignoring the very small French Themis experiment). The Spanish engineering company SENER (part owner of Torresol) has apparently developed their own molten salt technology since Boeing/Rocketdyne (which built the Solar Two receiver) left the project.

Source: renewableenergymagazine.com

is happening parallel to the urgent need of improving the quality of life in the rural areas by electrifying them. Some progress is with the hydropower plants in Mozambique, DRC, Lesotho and along the Zembezi River. There is a lot riding on this energy fulfilment i.e. the relationship between energy supply and country GDP growth. As economists have been saying; without power, there is no investment. As it is, the estimates are that out of 365 days, at least 55 are without power. A quick survey on any business sector or category that depends on electricity will show you how much they lose per day in Pulas using say a diesel backup generator. One local car dealership said they were spending a minimum of BWP 1200 per day during load shedding as is still the case in some areas like Mochudi. Going forward in the energy investment case for SADC some experts have strongly called for African solutions in addressing our challenges. This is purely based on the huge size of Africa compared to USA, China etc. and other African dynamics (our challenges are unique to us). This will determine what will be a reliable energy source for us. The argument here is that Africa must steer clear from the idea that renewables can substitute the traditional source (coal) to supply our core power demands. The one solution then given is that on the basis the Chinas, USAs and Canada’s’ development (150 years)has been through or partly coal mining, developing countries like Botswana be allowed to continue to use coal as the world looks for a greener solution. Renewables then for Africa must be dedicated to rural settlements. The West would have to swiftly have move to renewables as the have enjoyed a development head start. Some say, nay, this would further provide the West with more opportunities if we lag behind i.e. employment in green economy. To some extent one corner is saying; there is great investment potential, but maybe not now and maybe not as grand as we see. In the case of Botswana, there is still much to be done even in the traditional sense as we still struggle with our supply via BPC and the Morupule ambitions. Is it then time to look at the issue of privatisation? There are lessons from some of

Africa, in the past week Nigeria had a significant hand over of about 15 power stations to private firms. So some African solutions have been along that line of thinking; deregulation of the industry to allow for private participation. Currently only 17 countries have done so and those in the know say it is nearly not enough to entice investment either. Private firms are driven by profit, obviously with risk, but the risk needs to be palatable too. Where we are today is gloom as the state power supplier is not only the supplier but the regulator too any this situation is synonymous with Africa. In going forward, what is clear is that with all the mining springing up again through Botswana and Africa, we have to be realistic, especially with the figures and facts in front of us and apply a great sense of businessman-ship in our navigation. In looking at what would be ideal, some of the solutions thrown forward and the challenges we face; the short to medium term is not going to be a multi country grid (collaboration) to get the power up or to be used as an approach to get investment. This would mean a tedious exercise of getting through the different African regulatory framework before we could realise a drop of the finances. Unless the states fund it themselves, the hiccup there though is the African deficit. Countries in that regard are first told to sort out their own infrastructure. This however is just one school of thought. The essence of this month’s column was to put forward some facts, current discussions and expert opinion to stimulate some real debate in going forward and looking at alternative investments in Africa, particularly within energy. This comes at a time when coal mining is a huge conversation. Now go on, discuss and by all means, invest. But one certainty will be that whatever Africa’s move is in energy, it will have to be an appropriate technology for us. It could certainly be an energy mix (gas, nuclear, coal, wind, solar and hydro) but it has to be sensible or the investment potential will disappear. Follow Phenyo online: Twitter: @PhenyoOnRadio Facebook: Phenyo Motlhagodi

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BOIDUS FOCUS October 2013

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BREAKFAST FORUM SPECIAL: Editors Note Page 18

BOIDUS FOCUS October 2013

Reflections on the Breakfast Seminar

EDITOR’S NOTE

Gratitude and Reflections Breakfast Seminar Sticking Points on Breakfast Seminar IPD Botswana Annual Property Consultative 1. IPD Data a. What the fall means by H. Killion Mokwete, RIBA Chartered Architect Index IPD b. Botswana Property Less companiesAnnual submitting data means less reliability of the data Index Results for the year to 31 December 2012 c. IDP data alone not enough to give Results insight for theinto year to 31 December 2012 market. 2. How high can she Fly-Are

This edition of Boidus Focus focuses on the recent Botswana Property Breakfast Seminar recently organized and held at GICC on the 23rd of October. The event which was planned and executed around the notion of opening a window into Botswana’s property market to the region was a success and thanks to our sponsors and partners, it was also viewed by regional viewers across the continent on CNBC Africa. This marked the first time that a property related event from Botswana was made accessible to the international audience. For us, the local property market in Botswana remains lucrative and has matured enough to want to reach new heights and penetrate new opportuniIPD Botswana Annual Property Consultative Index ties within the region. The local market in pursuance ofTotal FDIreturn and op% portunities within other emerging markets needs to find 12a months place of its own, where mostly the South African counterparts are already domiAll Property 17.9 nant with practically no competition. Retail 16.6 Office

Boidus Team EDITOR H. Killion Mokwete COPY EDITOR Peta McAdam DESIGN Bridget T. MacKean

The IPD Botswana Annual Property Consultative Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next and in 2012 returned 17.9%

Income return %

Capital return %

Professional Industry Bodies Need to step off the fence 12 months

12 months

gabana architects gabana architects gabana gabana gabana architects All Property Retail

Income return %

Office

12 months

17.9 16.6

Capital return %

15.2

12 months

11.0

6.3

10.6

5.5

11.7

3.2

The local building industry28.4 scene is slowly but surely 12.5 11.0 6.3 Residential 24.4 for interaction such 8.8 developing its own platforms 10.6 5.5 Other* as our recently held Botswana Property Breakfast 11.7 3.2 *No results published for confidentiality reasons. seminar, CBD Executive Seminar, Property Expo and 12.5 14.3 others. All these platforms are a testimony Comparative Data 8.8 14.4 of our Equities 7.7 and more importantly local markets coming of age Bonds offer various platforms for6.3the property investor to Inflation 7.4 network and share ideas. Data sources: BSE All Share, BSE Bond Index, CSO Botswana CPI National

It is no good to always talk of a troubled industry, 14.3 14.4 with recession, professionalism issues, lack of access to regional markets -and yet we shun platforms meant to offer a springboard out of such. At all the past events, we have had support from the professions but not satisfactory. -An event or offer of platform to discuss issues of real- estate ought to pack a room full of Real Estate players in the industry to discuss their bread and butter issues. We however have time and IPD Botswana Annual Property Consultative Index database profile Our local professional bodies however need to take again witnessed other institutions that do business Capital value Capital value Number of properties Number of funds BWP (m) % a proactive- role in participating, partnership and attending and supporting initiatives in our industry in All Property 2,850.2 100.0 103 7 acting as necessary 1,463.0 patron to all of these initiatives. absentia of the core players in the industry. Retail 51.3 18 5 Industrial

15.2

Industrial 28.4as PrimeA good few local firms within the listed property space such Residential 24.4 Time, Turnstar, Narprop have already seen and grabbed opportunities Other* outside our borders. This presents for us as Boidus a good platform *No results published for confidentiality reasons. for which we can begin exploring broadcast opportunities to tell this story to the international investor, hence Comparative Data our partnership with CNBC Africa. Our partnership with CNBC A above all is based on7.7exploiting Equities Bonds across the region through print 6.3 their market reach dominance media Inflation (Forbes Africa), Digital (ABN Digital and Television, (CNBC A7.4Channel). Data sources: BSE All Share, BSE Bond Index, CSO Botswana CPI National Office Through these platforms we will continue to leverage opportunities Industrial for business across Botswana and we hope your business can become IPD Botswana Annual Property Consultative Index database profile Residential part of our clientele as well. Capital value Capital value Other BWP (m)

Consultative

All Property

2,850.2

100.0

Retail

1,463.0

51.3

Office

661.7

23.2

661.7

23.2

279.4

9.8

157.9

5.5

10.1 Number of funds

Number of properties 288.3

The figures above represent the full coverage of the IPD Botswana Annual Property database as at December 2012. The IPD Botswana Annual Property Consultative Index employs only fully revalued103 assets from that database. 7

18 21

gabana architects 7

Industrial 9.8 26 4 JOURNALISM GUEST279.4 COLUMNISTS Residential 5.5 27 4 Kibo Ngowi Othata157.9 Batsetswe Other 10.1 11 2 Phenyo288.3 Motlhagodi SALES The figures above represent the full coverage of the IPD Botswana Annual Property database as at December 2012. The IPD Botswana Annual Property Consultative Index H.employs Killiononly Mokwete fully revalued assetsPHOTOGRAPHY from that database. Thabo Sarona Mokgweetsi Phetabosigo DISTRIBUTION Roy Selebalakhai

Plot Number: 2930 Pudulugo Crescent, Extension 10, Gaborone Botswana Opposite University of Botswana Po box 50933 Gaborone Botswana Telephone (+267)3915981 Cell: 75225633 Email:ml_gabana@hotmail.com Plot Number: 2930 Pudulugo Crescent, Extension 10, Gaborone Botswana Opposite University of Botswana Po box 50933 Gaborone Botswana Telephone (+267)3915981 Cell: 75225633 Email:ml_gabana@hotmail.com

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Gabana Architects was formed in 2009 by Mr Moemedi Gabana, a Chartered Architect with Royal Institute of British Architects (RIBA). Gabana is a graduate of Oxford School of Architecture, one of the leading schools of architecture in the world, based in Oxford, United Kingdom.

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Gabana Architects offers services including Architectural designs, Project management, Urban design with special emphasis on Mixed Use development, planning applications and negotiations with council, Interior design, Brief formulation, Facilities management, Landscaping and Master planning. The company has already made its mark by entering major design completions for Water Utilities Head Quarters and Botswana innovation HUB.

The firm is based on the ethos of cutting edge design approach where the word “impossible” doesn’t exist during the design process, site analysis and evaluation. We leave no stone unturned in the search for ideas and finding the client solution.2930 We Pudulugo are not afraid to ask the client to draw as part ofOpposite the solution finding process!!The client is Plot Number: Crescent, Extension 10, Gaborone Botswana University of Botswana totally the search for theTelephone design solution no matter big or small the project is. Our ideas emerge Poinvolved box 50933inGaborone Botswana (+267)3915981 Cell: how 75225633 Plot Number: 2930 Pudulugo Crescent, Extension 10, Gaborone Botswana Opposite University of Botswana Plot Number: 2930 Pudulugo Crescent, Extension 10, Gaborone Botswana Opposite University of Botswana Po box 50933 Gaborone Botswana Telephone (+267)3915981 Po box 50933 Gaborone Botswana Telephone (+267)3915981 Cell: 75225633 from the intersection ofCell: many75225633 active minds and imaginations. Email:ml_gabana@hotmail.com Email:ml_gabana@hotmail.com

Email:ml_gabana@hotmail.com

send your details to: GABORONE

FRANCISTOWN

KILLION

WADA

T: +267 75505291 E: killion@boidus.co.bw

T: +267 71480679 E: mail@boidus.co.bw Gabana Architects stall at the Property Expo 2013

Find Boidus on

Plot Number: 2930 Pudulugo Crescent, Extension 10, Gaborone Botswana Opposite University of Botswana Po box 50933 Gaborone Botswana Telephone (+267)3915981 Cell: 75225633 Email:ml_gabana@hotmail.com

BOIDUS FOCUS October 2013

BREAKFAST FORUM SPECIAL: Event Programme Page 19

PRESENTERS AT THE EVENT AND TOPICS OF DISCUSSION WELCOME REMARKS AND EVENT OPENING Ms Tiny Kgatlwane [CEO, BIFM]

Tiny joined BIFM as Chief Executive Officer in August 2010 with a wealth of experience in the pensions and asset management industry. Tiny has over 20 years of experience in the financial services industry with knowledge acquired while working at Standard Chartered Bank, Barclays Bank and most recently Debswana Pension Fund, where she was at the helm of the organization for four years.

THE RELOCATION OF DTC TO GABORONE Paul Rowley [De Beers]

Mr. Rowley is the Senior VP of Midstream Operations at De Beers based in Gaborone, Botswana. Prior to this, Paul acted as Managing Director of DTC Botswana, where he was responsible for the sorting and valuing of Debswana’s diamond production. In this capacity, Paul was a member of the DTC Executive Committee in London and served on the boards of DTC Botswana and Namibia DTC.

Mr. Alan Phemelo Boshwaen is the founding Chief Executive Officer (CEO) of the Botswana Innovation Hub (BIH) since June 2011. Prior to his current position he was the founding CEO of the Botswana International Financial Services Centre (IFSC) which he pioneered in 2003. Mr Boshwaen in the past held a range of senior management and executive positions in the private sector banking and mining industry.

HOUSING AND PROPERTY INVESTMENT - BHC Mr Reginald Motswaiso [CEO, BHC]

UNPACKING THE IPD BOTSWANA INDEX 2012 Stan Garrun [Executive Director of IPD, South Africa]

Mr. Reginald Motswaiso is the Chief Executive Officer of the Botswana Housing Corporation (BHC). Reginald joined the BHC from Standard Chartered Bank, Botswana, first as a Finance Director. He went on to become the Executive Director responsible for Finance, IT, Human Resources and the Turn Around Strategy. Reginald is a Fellow Chartered Certified Accountant (FCCA) and a Chartered Management Accountant (ACMA).

FUTURE PLANS FOR SPECIAL ECONOMIC ZONES Mr Letsebe Sejoe [Acting CEO, BITC]

Stan Garrun is Executive Director of IPD in South Africa, which became a subsidiary of IPD Holding UK in 2002 and now part of MSCI Inc. Stan is responsible for the development of the IPD business and services in South Africa. Stan holds a B.Com. degree. He has been a senior manager at the Argus media group, a director at Group 5/Everite, Strategic Services manager for SAPOA and CEO of SAPIX, the predecessor to IPD in SA.

BOTSWANA’S INSTITUTIONAL INVESTORS Mr Victor Senye [Chairperson for BITC and BTO]

Letsebe is the Acting Chief Executive Officer at the Botswana Investment & Trade Centre (BITC), Botswana’s new national investment promotion agency (IPA). Prior to this role he served as the Acting Chief Executive Officer of the former IFSC Company and served as a Business Support Services Manager at Standard Chartered Bank Botswana. He is a Director on BoFiNet Board of Directors and is Chairman of the Finance & Audit Board Committee.

THE PROPERTY MARKET & BOTSWANA ECONOMY Dr. Keith Jefferis [Director of Econsult]

Mr Victor Senye is the Managing Director of Haighs Investments (Pty) Ltd where he is responsible for property development and investment services. Previous to this Mr Senye was the CEO of Bifm, during which time Bifm experienced remarkable growth in profits and assets. He is currently the Chairperson of the Botswana Investment and Trade Centre (BITC) and Botswana Tourism Organisation (BTO).

BOTSWANA’S LISTED PROPERTY ENTITIES Turnie Morolong [Property Director, PrimeTime]

Keith Jefferis is a macroeconomist and financial sector specialist, who is Managing Director of Econsult Botswana (Pty) Ltd, and is a former Deputy Governor of the Bank of Botswana. His current activities include work on a range of macroeconomic, financial and other development issues in Botswana and elsewhere in sub-Saharan Africa. He is accredited to the IMF Technical Assistance Experts Register.

PACKAGING & STRUCTURING YOUR INVESTMENT Martin Mongameli Hoko [MD, Premierwealth]

Turnie is the property director of Time Projects (Botswana) (Pty) Limited, and has been with the company for the last 7 years. He was previously employed by a major Botswana private corporation as a group property administrator and has over 15 years’ experience in property management.

BUYING, PROCURING & MANAGING PROPERTY Maje Maje [REIB]

Martin Hoko has been the Managing Director of Premierwealth since 2005, where he directs the overall strategy for Premierwealth, with particular emphasis on raising the financial literacy levels of professionals and business owners. Mr Hoko is also a full member of the Institute of Marketing Management, member of the Financial Planning Institute, and a registered Financial Life Planner, and a Certified Financial Planner.

On behalf of BOIDUS MEDIA, a great THANK YOU to all of our sponsors:

Maje Maje is the co founder of Apex Properties. He is an expert in valuation and advisory services. He is the current president of the Real Estate Institute of Botswana (REIB) and a board member of the Real Estate Advisory Council (REAC).

WHY BOIDUS? • the consumer of the built environment needs to be in a position to access information regarding what the architectural industry is up to • a platform for discussion and discourse needs to be created where open, earnest discussions on important issues take place

Mr. Alan Boshwaen [CEO, Botswana Innovation Hub]

AND REACH YOUR CUSTOMERS

BOTSWANA’S INNOVATION AMBITIONS

FRANCISTOWN WADA T: +267 71480679 E: mail@boidus.co.bw

BREAKFAST FORUM

ADVERTISE YOUR PRODUCTS HERE

BOIDUS MEDIA EVENT

GABORONE KILLION T: +267 75505291 E: killion@boidus.co.bw

BOTSWANA PROPERTY MARKET

BREAKFAST FORUM SPECIAL: Event in Photos Page 20

BOIDUS FOCUS October 2013

24th September 2013 at GICC

BOTSWANA PROPERTY MARKET

BREAKFAST FORUM

BREAKFAST SEMINAR PRESENTERS [clockwise from top left]: Reginald Motswaiso (BHC CEO), Keith Jefferis (Econsult), Pauly Rowley (De Beers), Tumie Morolong (Primetime), Stan Garrun (IPD South Africa), Martin Hoko (Premierwealth), Lonely Mogara (BITC), Victor Senye (Chairperson for BITC and BTO), Maje Maje (REIB), David Tsheboeng (BIH)