Water crisis: unscrupulous business men selling tap water to the poor
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Unscrupulous business men are exploiting the gullible people by selling tap water at high prices to the general public in the Southern District a disastrous move that cuts across the whole country – due to the ongoing water crisis.
The water supply deficiency in Botswana has therefore led to some dubious individuals, both legally and in some instances illegally, buying water at the corporation and later re-selling to innocent citizens at exorbitant prices. This notwithstanding that tap water is an essential human right matter and therefore that governments across the world including Botswana have an obligation to make it available to all citizens particularly the underprivileged.
However Botswana continues to face acute shortage of water supply in many areas despite all efforts by Water Utilities Corporation (WUC) to make the water available to all and sundry. Weekend Post investigations have revealed that some truck drivers carrying big water tanks are capitalising on the scarcity of water in the Southern part of the country and cashing approximately P60 000 in profits monthly.
“There is generally no water supply in Kanye. The taps are dry. Some people now abuse us. They put those big water tanks in their trucks to buy at WUC at cheap prices then re-sell this water to the desperate community of Kanye. This situation continuously remains a concern to the public,” an irate elderly who preferred not to be mentioned also confirmed. This publication has followed around 20 different trucks in a day coming back and forth around 10 times to fetch the WUC low-priced water continuously at the corporation.
The trucks, 5 tonnes to 7 tonnes, are strong enough to carry water tanks (Jojo’s) holding a capacity of 1000 litres to 5 000 litres or more. Weekend Post has turned up information that while WUC sells the 1000 litres (1 cubic litres) full of water at a paltry P39.20, they then go on to sell 2500 litres at a whopping P 300 per tank. P 2500 litres would cost rarely P100.
Indications suggest that in essence they make a profit of more than P200 every P2500 litres of water tank. They fetch the water 10 times, where they are always lined up in their numbers, making a daily profits of P2000. In an average one month, one truck can wallop close to P60 000 in water profits. The truck water drivers are also not regulated as they can sell at their own prices which might be heftier than the known charge.
“So we end up buying this water although we do have taps at homes. The water crisis is taking a toll on us. WUC does not even frequently and timely attend to leaking pipes and this happens while at home there is no water supply,” another village elder told Weekend Post. It is understood that WUC has justified the development citing that the truck water entrepreneurs reason that they have been assigned by the community to fetch them the water and in return attracting a fee to assist fuel their cars.
The fuel fee however has not been stipulated as some believe the P200 per truck per trip is too much as the trucks are just local. The selling of water to the public has been going on since 2009 when the water crisis took its toll in the country. This happens notwithstanding that lack of access to water is seen as a life and death predicament.
Meanwhile the United Nations General Assembly has, on 28 July 2010, through Resolution 64/292 explicitly recognised the human right to water and sanitation and acknowledged that clean drinking water and sanitation are essential to the realisation of all human rights. When contacted for a comment, Kanye WUC General Manager Ditiro Mogotlhwane confirmed to Weekend Post that indeed they do sell water to some truck drivers at very low prices but not aware if they re-sell it at inflated prices.
He stated: “a once off ration to a maximum of 10000 litres at a rate of P39.95/1000 litres is sold to individuals who cannot get water in their areas and customers who require large water quantities. Truck drivers are engaged by individuals who buy water from WUC bulk filling points.” The General Manager justified that water supply has been challenging for Kanye and Moshupa Villages and has been deteriorating overtime following years of drought and borehole yield decline/drying up.
He highlighted that the current abstraction averages around 7900m3/day against a combined demand of 15000m3 per day and therefore this translates to a supply deficit of approximately 7000m3/day. The situation, he added that has been worsened in the recent months by frequent power and equipment failure resulting in prolonged water shortage and slow recovery on the distribution network. Other villages around Kanye, he said are also affected by inadequate water supply and are largely sustained by the Corporation bowsers.
Mogotlhwane emphasized that management centre does not have capacity to bowser water to individual or business premises and as such individuals who cannot get water in their areas are therefore allowed to buy water to meet their needs and make own arrangements to fetch the water. On the lucrative reselling of water the WUC head honcho said WUC is not aware of the water resale activity from its sources. “It should be noted that WUC does not knowingly sell water to people who resell it. The reselling of water if any is done behind WUC’s back.”
According to the General Manager, water bowsing is employed where the Corporation has placed potable tanks (JoJos) in strategic places within the village, bowsing to public institutions (schools, hospitals and offices) and other places which keep emanating due to the continuous challenges where our bowser would stop at a station for customers to fetch water, an inefficient exercise considering the number of bowsing points.
Kanye alone, Mogotlhwane pointed out that, has more than 50 points to service excluding surrounding villages adding that the management center has also been out-sourcing bowsing, where some of the outsourced bowsers or trucks with Jojos may be mistaken as private sellers.On what WUC is doing to address the water situation, the Corporation boss stated that “the Kanye Mmamashia North South Carrier (NSC) connection is underway and expected to complete by July 2019 as a sustainable solution to Kanye water situation.”
Currently, he further observed that four boreholes have been drilled, equipped and interconnected around Dilokwana and Gasegogwane areas and that three are currently operational and yielding approximately 1700m3/day which splits between the two villages. He said the project was commissioned in December 2018 when WUC had operational challenges due to frequent power failures.
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FaR property assets value clock P1.47 billion
FaR Property Company (FPC) Limited, a property investment company listed on the Botswana Stock Exchange, has recently announced its exceptional financial results for the year 2023. The company’s property asset value has risen to P1.47 billion, up from P1.42 billion in the previous year.
FPC has a diverse portfolio of properties, including retail, commercial, industrial, and residential properties in Botswana, South Africa, and Zambia. The company owns a total of 186 properties, generating rental revenues from various sectors. In 2023, the company recorded rental revenues of P11 million from residential properties, P62 million from industrial properties, and P89 million from commercial properties. Overall, the company’s total revenues increased by 9% to P153 million, while profit before tax increased by 22% to P136 million, and operating profit increased by 11% to P139 million.
One notable achievement for FPC is the low vacancy rate across its properties, which stands at only 6%. This is particularly impressive considering the challenging trading environment. The company attributes this success to effective lease management and the leasing of previously vacant properties in South Africa. FPC’s management expressed satisfaction with the results, highlighting the resilience of the company in the face of ongoing macroeconomic challenges.
The increase in profit before tax can be attributed to both an increase in income and effective control of operating expenses. FPC managed to achieve these results with fewer employees, demonstrating the company’s efficiency. The headline earnings per linked unit also saw an improvement, reaching 26.92 thebe, higher than the previous year.
Looking ahead, FPC remains confident in its competitiveness and growth prospects. The company possesses a substantial land bank, which it plans to develop strategically as opportunities arise. FPC aims for managed growth, focusing on consumer-driven developments and ensuring the presence of supportive tenants. By maintaining this approach, the company believes it can sustainably grow its property portfolio and remain competitive in the market.
In terms of the macroeconomic environment, FPC noted that inflation rates are decreasing towards the 3% to 6% range approved by the Bank of Botswana. This is positive news for the company, as it hopes for further decreases in interest rates. However, the fluctuating fuel prices, influenced by global events such as the war in Ukraine and oil output reductions by Russia and other Middle Eastern countries, continue to impact businesses, including some of FPC’s tenants.
FPC’s property portfolio includes notable assets such as a shopping mall in Francistown with Choppies Hyper as the anchor tenant, Borogo Mall located on the A33 main road near the Kazungula ferry crossing, and various industrial and commercial properties in Gaborone leased to Choppies, Senn Foods, and Clover Botswana. The company also owns a shopping mall in Mafikeng and Rustenburg in South Africa.
The majority of FPC’s properties, 85%, are located in Botswana, followed by 12% in South Africa and 3% in Zambia. With its strong financial performance, competitive position, and strategic land bank, FPC is well-positioned for continued growth and success in the property market.
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BPC Signs PPA with Sekaname Energy
The Botswana Power Corporation (BPC) has taken a significant step towards diversifying its energy mix by signing a power purchase agreement with Sekaname Energy for the production of power from coal bed methane in Mmashoro village. This agreement marks a major milestone for the energy sector in Botswana as the country transitions from a coal-fired power generation system to a new energy mix comprising coal, gas, solar, and wind.
The CEO of BPC, David Kgoboko, explained that the Power Purchase Agreement is for a 6MW coal bed methane proof of concept project to be developed around Mmashoro village. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy in the energy mix. The use of coal bed methane for power generation is an exciting development as it provides a hybrid solution with non-dispatchable sources of generation like solar PV. Without flexible base-load generation, the deployment of non-dispatchable solar PV generation would be limited.
Kgoboko emphasized that BPC is committed to enabling the development of a gas supply industry in Botswana. Sekaname Energy, along with other players in the coal bed methane exploration business, is a key and strategic partner for BPC. The successful development of a gas supply industry will enable the realization of a secure and sustainable energy mix for the country.
The Minister of Minerals & Energy, Lefoko Moagi, expressed his support for the initiative by the private sector to develop a gas industry in Botswana. The country has abundant coal reserves, and the government fully supports the commercial extraction of coal bed methane gas for power generation. The government guarantees that BPC will purchase the generated electricity at reasonable tariffs, providing cash flow to the developers and enabling them to raise equity and debt funding for gas extraction development.
Moagi highlighted the benefits of developing a gas supply industry, including diversified primary energy sources, economic diversification, import substitution, and employment creation. He commended Sekaname Energy for undertaking a pilot project to prove the commercial viability of extracting coal bed methane for power generation. If successful, this initiative would unlock the potential of a gas production industry in Botswana.
Sekaname Energy CEO, Peter Mmusi, emphasized the multiple uses of natural gas and its potential to uplift Botswana’s economy. In addition to power generation, natural gas can be used for gas-to-liquids, compressed natural gas, and fertilizer production. Mmusi revealed that Sekaname has already invested $57 million in exploration and infrastructure throughout its resource area. The company plans to spend another $10-15 million for the initial 6MW project and aims to invest over $500 million in the future for a 90MW power plant. Sekaname’s goal is to assist BPC in becoming a net exporter of power within the region and to contribute to Botswana’s transition to cleaner energy production.
In conclusion, the power purchase agreement between BPC and Sekaname Energy for the production of power from coal bed methane in Mmashoro village is a significant step towards diversifying Botswana’s energy mix. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy. The government’s support for the development of a gas supply industry and the commercial extraction of coal bed methane will bring numerous benefits to the country, including economic diversification, import substitution, and employment creation. With the potential to become a net exporter of power and a cleaner energy producer, Botswana is poised to make significant strides in its energy sector.
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UDC deadlock: Boko, Ndaba, Reatile meet
It is not clear as to when, but before taking a festive break in few weeks’ time UDC leaders would have convened to address the ongoing deadlock surrounding constituency allocation in the negotiations for the 2024 elections. The leaders, Duma Boko of the UDC, Mephato Reggie Reatile of the BPF, and Ndaba Gaolathe of the AP, are expected to meet and discuss critical matters and engage in dialogue regarding the contested constituencies.
The negotiations hit a stalemate when it came to allocating constituencies, prompting the need for the leaders to intervene. Representatives from the UDC, AP, and BPF were tasked with negotiating the allocation, with Dr. Patrick Molotsi and Dr. Philip Bulawa representing the UDC, and Dr. Phenyo Butale and Wynter Mmolotsi representing the AP.
The leaders’ meeting is crucial in resolving the contentious issue of constituency allocation, which has caused tension among UDC members and potential candidates for the 2024 elections. After reaching an agreement, the leaders will engage with the members of each constituency to gauge their opinions and ensure that the decisions made are favored by the rank and file. This approach aims to avoid unnecessary costs and conflicts during the general elections.
One of the main points of contention is the allocation of Molepolole South, which the BNF is adamant about obtaining. In the 2019 elections, the UDC was the runner-up in Molepolole South, securing the second position in seven out of eight wards. Other contested constituencies include Metsimotlhabe, Kgatleng East and West, Mmadinare, Francistown East, Shashe West, Boteti East, and Lerala Maunatlala.
The criteria used for constituency allocation have also become a point of dispute among the UDC member parties. The issue of incumbency is particularly contentious, as the criterion for constituency allocation suggests that current holders of UDC’s council and parliamentary seats should be given priority for re-election without undergoing primary elections. Disadvantaged parties argue that this approach limits democratic competition and hinders the emergence of potentially more capable candidates.
Another disputed criterion is the allocation based on the strength and popularity of a party in specific areas. Parties argue that this is a subjective criterion that leads to disputes and favoritism, as clear metrics for strength and visibility cannot be defined. The BNF, in particular, questions the demands of the new entrants, the BPF and AP, as they lack a traceable track record to support their high expectations.
The unity and cohesion of the UDC are at stake, with the BPF and AP expressing dissatisfaction and considering withdrawing from the negotiations. Therefore, it is crucial for the leaders to expedite their meeting and find a resolution to these disputes.
In the midst of these negotiations, the BNF has already secured 15 constituencies within the UDC coalition. While the negotiations are still ongoing, BNF Chairman Dr. Molotsi revealed that they have traditionally held these constituencies and are expecting to add more to their tally. The constituencies include Gantsi North, Gantsi South, Kgalagadi North, Kgalagadi South, Good Hope – Mmathethe, Kanye North, Kanye South, Lobatse, Molepolole North, Gaborone South, Gaborone North, Gaborone Bonnignton North, Takatokwane, Letlhakeng, and Tlokweng.
The resolution of the contested constituencies will test the ability of the UDC to present a united front in the 2024 National Elections will depend on the decisions made by the three leaders. It is essential for them to demonstrate maturity and astuteness in resolving the constituency allocation deadlock and ensuring the cohesion of the UDC.