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Zambia culpable in delay of P2 billion Kazungula Bridge

Failure to make up readily available funds for construction of one of the biggest project in Southern Africa, the Kazungula Bridge, by Zambia may delay construction further hence a hindrance to Botswana which is showing positive progress.

The Kazungula Bridge Project is a P2 billion bilateral initiative between Botswana and Zambia referred as a multi-national and border crossing 923m long bridge at the confluence of the Zambezi and Chobe Rivers. In this project Botswana and Zambia should meet each other halfway to put together a state of the art crossover between the two countries.  

This project is divided into three separate contracts named “Packages.” Package 1 is taken by South Korea’s Daewoo E&C which is working on the construction of the 923m long by 18.5m wide bridge. Package 2 is the construction of the Botswana One Stop Border Post facility by Zhong Gan Engineering of China. Construction of One Stop Border Post on the Zambian side of the border which is referred to as Package 3 done by Foreign Economic Construction also from China.

However construction at the Zambian side of the border appears to be moving at a snail’s pace, BusinessPost understands that funds for the construction of the bridge from Botswana’s northern neighbours have not been forthcoming. Funds to be proceeded to Road Development Agency of Zambia from the country’s National Road Fund have been disappointing as per information received by this publication. Recently workers at the bridge downed tools pending payments which were delayed by the Zambian government.

Reports from Zambia suggests that the country failed to pay one contractor for the bridge an outstanding P140 million bill while Botswana managed to fulfil its part of commitments. Recently the Zambian government claimed to have proceeded 20 million Kwacha as its commitment, but the media reports in that country claims the money is not yet been paid.

Lending credence that Zambia has not been much forthcoming in the Kazungula Bridge project quickly, this week Minister of Transport and Communications Dorcas Makgato revealed that Package 3 or construction of One Stop Border Post on Zambian side is behind progress by16.38 percent. These utterances came amid reports that Zambia has been delaying in advancing funds for the projects causing workers strikes hence further delays.

“Zambian’s One Stop Border Post (Package 3) is currently at 57.6 percent progress to the planned 73.98 percent,” said Makgato when giving a presentation before parliament’s Committee of Supply. According to Makgato, those travellers between Botswana and Zambia who have been hoping to use the state of the art bridge this month as it was expected to have completed by now will have to wait until “mid 2020” as all packages are expected to have completed.

While Zambia seems to be dragging on the construction of the bridge, Botswana on the other hand is making a fair share as it is only far by progress by only 1.4 percent. Botswana’s One Stop Border Post project stands at 95.4 percent compared to 96.8 percent which was planned according to Makgato. The minister further revealed that construction of the bridge or Package 1 components is at 74 percent compared to 81 percent-observers blames this on Zambia’s unreliability when it comes to advancing funds.

One top Botswana government official who is a bit lenient on Zambia prefers that this country should add a side condition on this project-that Botswana finish all the remaining project and then Zambia pay Botswana at the end. According to this official, this will ensure that the bridge is not delayed. Zambia had started this project late when compared to Botswana, some of the factors that keep it on a back-foot and funding has only added salt to the wound, this publication understands.

When requesting for P1 402 436 080 for Roads Infrastructure Development for financial year 2019/20, Makgato had the Kazungula bridge in mind as she said the money will be used to continue implementation of the currently on-going projects like the bridge. The Kazungula project is jointly funded by governments of Zambia and Botswana with loans Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB).

The objective of the Kazungula Bridge is to reduce transit time for freight and passengers, decrease time-based trade and transport cost and improved border management operations from the new One Stop Border Facilities. The bridge completion is expected to boost regional integration and trade and will be a key route linking the strategic economic areas like Durban harbour to at least seven SADC countries.

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Business

Gambling Authority tender dangles as a jittery lottery quandary

30th November 2020
SEFALANA MD: CHANDRA CHAUHAN

Lucrative and highly anticipated national lottery tender that saw several Batswana businessmen partnering to form a gambling consortium to pit against their South African counterparts, culminates into a big power gamble.

WeekendPost has had a chance to watch lottery showcase even before the anticipated and impending national lottery set-up launches. A lot has been a big gamble from the bidding process which is now set for the courts next year January following a marathon legal brawl involving the interest of the gambling fraternity in Botswana and South Africa.

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The uncertainty of getting the next meal in Botswana

30th November 2020
uncertainty of getting the next meal

Households representing more than half of Botswana’s population-mostly residing in rural areas- do not know where their next meal will come from, but neither do they take into consideration the quality and/or quantity of the food they consume.

This is according to the latest Prevalence of Food Insecurity in Botswana report which was done for the 2018/19 period and represents the state of food insecurity data even to this time.
The Prevalence of Food Insecurity was released by Statistics Botswana and it released results with findings that the results show that at national level 50.8 percent of the population in Botswana was affected by moderate to severe food insecurity in 2018/19, while 22.2 percent of the population was affected by severe food insecurity only.

According to the report, this translates to 27 percent of the population being food secure that is to say having adequate access to food in both quality and quantity. According to Statistician General, Burton Mguni, when explaining how the food data was compiled, Food and Agriculture Organization of the United Nations (FAO), is custodian of the “Prevalence of Undernourishment (PoU)” and “Prevalence of moderate or severe food insecurity in the population based on the Food Insecurity Experience Scale (FIES)” SDG indicators, for leading FIES data analysis and the resultant capacity building.

“The FIES measures the extent of food insecurity at the household or individual level. The indicator provides internationally comparable estimates of the proportion of the population facing moderate to severe difficulties in accessing food. The FIES consists of eight brief questions regarding access to adequate food, and the questions are answered directly with a yes/no response. It (FIES) complements the existing food and nutrition security indicators such as Prevalence of Undernourishment.

According to the FIES, with increasing severity, the quantity of food consumed decreases as portion sizes are reduced and meals are skipped. At its most severe level, people are forced to go without eating for a day or more. The scale further reveals that the household’s experience of food insecurity may be characterized by uncertainty and anxiety regarding food access and compromising the quality of the diet and having a less balanced and more monotonous diet,” says Mguni.

The 50.8 percent of the population in Botswana which was affected by moderate to severe food insecurity are characterized as people experiencing moderate food insecurity and face uncertainties about their ability to obtain food. These people have been forced to compromise on the quality and/or quantity of the food they consume according to the report on food insecurity.

Those who experience severe food insecurity, the 22.2 percent of the population, are people who have typically run out of food and, at worst, gone a day (or days) without eating. According to the statistics, rural area population experienced moderate to severe food insecurity at 65 percent while urban villages were at 46.60 percent and cities/town were at 31.70 percent. Those experiencing the most extreme and severe insecurity were at rural areas making 33.10 percent while urban villages and towns were at 11.90 percent and 17.50 respectively.

According to a paper compiled by Sirak Bahta, Francis Wanyoike, Hikuepi Katjiuongua and Davis Marumo and published in December 2017, titled ‘Characterization of food security and consumption patterns among smallholder livestock farmers in Botswana,’ over 70 percent of Botswana’s population reside in rural areas, and majority (70%) relies on traditional/subsistence agriculture for their livelihoods.

The study set out to characterize the food security situation and food consumption patterns among livestock keepers in Botswana. “Despite the policy change, challenges still remain in ensuring that all persons and households have access to food at all times. For example, during an analysis of the impacts of rising international food prices for Botswana, BIDPA reported that food prices tended to be highest in the rural areas already disadvantaged by relatively low levels of income and high rates of unemployment,” said the study.

According to the paper, about 9 percent of households were found to be food insecure and this category of households included 6 percent of households that ranked poorly and 3 percent that were on the borderline according to the World Food Programme’s (WFP) definition of food security.

Media reports state that the World Bank has warned that disruption to production and supply chains could ‘spark a food security crisis’ in Africa, forecasting a fall in farm production of up to 7 percent, if there are restrictions to trade, and a 25 percent decline in food imports.

Food security in Botswana or food production was also attacked by the locust pandemic which swept out this country’s vegetation and plants. The locust is said to have contributed to 25 percent loss in production.

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Business

Solid demand for diamonds towards the ‘gift’ season

30th November 2020
Diamonds

Global lockdown have been a thorn in diamonds having shiny sales, but a lot of optimism shows with the easing of Covid-19 restrictions, the precious stones will be bought with high volumes towards festive season. The diamond market is however warned of the resurgence of Covid-19 in key markets presents ongoing risks amid the presence and optimist about the new Covid-29 vaccines.

The latest findings published as De Beers Group’s latest Diamond Insight ‘Flash’ Report, which looks at the impact of the pandemic on relationships and engagements, has revealed that in the US that more couples than ever are buying diamond engagement rings. Bridal sales is mostly the primary source of diamond jewellery demand in recent months, De Beers said.

According to De Beers, interviews with independent jewellers around the US revealed that the rate of couples getting engaged has increased compared with the period when Covid-19 first had an impact in the US in the spring.

“In addition, despite challenging economic times, consumers were spending more than ever on diamond engagement rings – often upgrading in colour, cut and clarity, rather than size. Several jewellers speculated that with consumers spending less on elaborate weddings and/or honeymoons in the current environment, they had more to spend on choosing the perfect ring,” said De Beers.

According to De Beers, a national survey of 360 US women in serious relationships, undertaken in late October in collaboration with engagement and wedding website, The Knot. This survey is said to have found that the majority of respondents (54%) were thinking more about their engagement ring than the wedding itself (32%) or the honeymoon (15%), supporting jewellers’ hypothesis that engagement ring sales were benefiting from reduced wedding and travel budgets in light of Covid-19 restrictions.

When it came to researching engagement rings, online was by far the predominant channel for gaining ideas/inspiration at 86% of consumers surveyed, with 85% saying they had saved examples of styles they liked, according to De Beers. According to the survey, only a uarter of respondents said they had looked in-store at a physical location for design inspiration.

“For many couples, the pandemic has brought them even closer together, in some instances speeding up the path to engagement after forming a deeper connection while experiencing lockdown and its associated ups and downs as a partnership. Engagement rings are taking on even greater symbolism in this environment, with retailers reporting couples are prepared to invest more than usual, particularly due to budget reductions in other areas,” De Beers CEO Cleaver said.

According to De Beers Group, its Diamond Insight Flash Report series is focused on understanding the US consumer perspective in light of Covid-19 and monitoring how it evolves as the crisis evolves. Also, the company said, it is augmenting its existing research programme with additional consumer, retailer and supply chain touch-basis to understand the pain points and the opportunities for stakeholders across the diamond pipeline.

Demand for diamonds is as hard and resilient as the precious stone itself. De Beers pocketed US$ 450 million in its recently held ninth rough diamond sales cycle, and the company says it is more flexible approach to rough diamond sales during the ninth sales cycle of 2020, with the Sight event extended beyond its normal week-long duration.

“Steady demand for De Beers Group’s rough diamonds continued in the ninth sales cycle of the year, reflecting stable consumer demand for diamond jewellery at the retail level in the US and China, and expectations for reasonable demand to continue throughout the holiday season. However, the resurgence of Covid-19 infections in several consumer markets presents ongoing risks,” said De Beers CEO Bruce Cleaver recently.

High expectations are on diamonds being a sentimental gift for holiday season or as the most fetished gift. However the ninth cycle was lower than the eighth which registered US$ 467 million. For the last year period which corresponds with the current one, De Beers managed to raise US$ 400.

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