Originally BR had only 67% shares in Rail Park mall
Botswana Railways has acquired all the shares available at Rail Park mall. The government parastatal initially had a 67 percent control in the property and has now paid P135 million to take charge of the remaining 33 percent.
The 33 percent was initially under the ambit of BIFM and Tradinik. The multimillion Rail Park mall was officially opened on 23 April 2012. After three and a half years in operation, the value of the mall more than doubled to P600 million.
Botswana Railways believes that it has hit the jackpot following the latest transaction. BR Properties (Pty) is also intending to build similar shopping malls in Francistown and other places to commercially exploit Botswana Railways land with private partners.
The land where Rail Park mall is built belongs to Botswana Railways; it was a dormant piece of land which was used as a station office leased to a company called JTTM. During the official opening, the then Vice President, the late Lieutenant General Mompati Merafhe hailed Botswana Railways as a desirable economic enabler that has managed to convert a barren eight hectare piece of land into a lucrative business venture that’s now hosts one of the leading shopping centres in Botswana.
Botswana Railways believes that the move to own a mall will ease the burden on government to finance BR and thereby avail funds for other national projects. BR says it has managed to unlock value from its movable and immovable assets such as the commercial exploitation of land as we have seen with the Rail Park Mall.
Satar Dada is a director with no shares at Rail Park mall, appointed to represent the interest of Botswana Railways. It is believed that he was influential in the BR acquisition. However some industry players are sceptical about BR’s move to buy out BIFM and Tradinik.
The two companies have vast experience in property management, and may well use the P135 million to set up another project that could rival Rail Park mall. Effectively Dada is the only remaining businessman after the departure of BIFM and Tradinik. Tradinik owns about 30 properties around the country, including the twin towers at the Central Business District in Gaborone.
The arguments being thrown around is that the two companies have existing client relations, and know how to manage them – a commercial aspect that BR is not rich with. They have been accustomed to the business of managing huge properties, maintaining them, and dealing with other service providers for maintenance, among other things.
However, Botswana Railways appears ready to up its game and get on with business.
Owning Rail Park mall is expected to diversify BR income base, help BR to realize its turnaround strategy objectives, and hopefully reduce dependence on government funding. The parastatal sees itself as a role model to other government entities because it has found better use of unutilised land; building better offices to effect operations, among other advantages.
Railpark Mall is currently under the management of Khumo Properties, a company owned by BIFM and Tradinik. Khumo properties is an experienced company when it comes to project management, client management, lease agreements, facilities management and other related matters.
Botswana Railways may have to contend with a situation where it has to rope in BR properties, its subsidiary, to manage the mall. This will come at a price, because the organisation will have to up its game and recruit more talent and sufficient skill in order to compete in the market.
BR Properties (Pty) Ltd is a 100% subsidiary of Botswana Railways whose core mandate is to unlock the potential of BR’s real estate through sound property management and development practices. BR Properties (Pty) Ltd came about from the revision of the Botswana Railways Act in 2004, which allowed for commercialization of Botswana Railways’ land.
BR Properties, as a vehicle, exploits Botswana Railways prime land along commercial lines by partnering with private sector, individuals and public institutions / organizations with up to date property management practices.
In April 2012 BR Properties (Pty) Ltd opened Rail Park Mall in Gaborone on an 8-hectarce piece of Botswana Railways land. The Rail Park Mall was developed in partnership with the private sector.
Contacted for comment, Kebabonye Morewagae who is the Botswana Railways Corporate Communications Manager indicated that they could not comment much on the transaction because it has not been finalised.
For so many years, Botswana has been trying to be a self-sufficient country that is able to provide its citizens with locally produced food products. Through appropriate collaborations with parastatals such as CEDA, ISPAAD and LEA, government introduced initiatives such as the Horticulture Impact Accelerator Subsidy-IAS and other funding facilities to facilitate horticultural farmers to increase production levels.
Now that COVID-19 took over and disrupted the food value chain across all economies, Botswana government introduced these initiatives to reduce the import bill by enhancing local market and relieve horticultural farmers from loses or impacts associated with the pandemic.
In more concerted efforts to curb these food crises in the country, government extended the ploughing period for the Southern part of Botswana. The extension was due to the late start of rains in the Southern part of the country.
Last week the Ministry of Agriculture extended the ploughing period for the Northern part of the country, mainly because of rains recently experienced in the country. With these decisions taken urgently, government optimizes food security and reliance on local food production.
When pigs fly, Botswana will be able to produce food to feed its people. This is evident by the numbers released by Statistics Botswana on imports recorded in November 2020, on their International Merchandise Trade Statistics for the month under review.
The numbers say Botswana continues to import most of its food from neighbouring South Africa. Not only that, Batswana relies on South Africa to have something to smoke, to drink and even use as machinery.
According to data from Statistics Botswana, the country’s total imports amounted to P6.881 Million. Diamonds contributed to the total imports at 33%, which is equivalent to P2.3 Million. This was followed by food, beverages and tobacco, machinery and electrical equipment which stood at P912 Million and P790 Million respectively.
Most of these commodities were imported from The Southern African Customs Union (SACU). The Union supplied Botswana with imports valued at over P4.8 Million of Botswana’s imports for the month under review (November 2020). The top most imported commodity group from SACU region was food, beverages and tobacco, with a contribution of P864 Million, which is likely to be around 18.1% of the total imports from the region.
Diamonds and fuel, according to these statistics, contributed 16.0%, or P766 Million and 13.5% or P645 Million respectively. Botswana also showed a strong and desperate reliance on neighbouring South Africa for important commodities. Even though the borders between the two countries in order to curb the spread of the COVID-19 virus, government took a decision to open border gates for essential services which included the transportation of commodities such as food.
Imports from South Africa recorded in November 2020 stood at P4.615 Million, which accounted for 67.1% of total imports during the month under review. Still from that country, Botswana bought food, beverages and tobacco worth P844 Million (18.3%), diamonds, machinery and fuel worth P758 Million, P601 Million and P562 Million respectively.
Botswana also imported chemicals and rubber products that made a contribution of 11.7% (P542.2 Million) to total imports from South Africa during the month under review, (November 2020).
The European Union also came to Botswana’s rescue in the previous year. Botswana received imports worth P698.3 Million from the EU, accounting for 10.1% of the total imports during the same month. The major group commodity imported from the EU was diamonds, accounting for 86.9% (P606.6 Million), of imports from the Union. Belgium was the major source of imports from the EU, at 8.9% (P609.1 Million) of total imports during the period under review.
Meanwhile, Minister of Finance and Economic Development Thapelo Matsheka says an improvement in exports and commodity prices will drive growth in Sub-Saharan Africa. Growth in the region is anticipated to recover modestly to 3.2% in 2021. Matsheka said this when delivering the Annual Budget Speech virtually in Gaborone on the 1st of February 2021.
He said implementation of the African Continental Free Trade Area Agreement (AfCFTA), which became operational in January 2021, could reduce the region’s vulnerability to global disruptions, as well as deepen trade and economic integration.
“This could also help boost competition and productivity. Successful implementation of AfCFTA will, of necessity, require Member States to eliminate both tariffs and non-tariff barriers, and generally make it easier to do business and invest across borders.”
Matsheka, who is also a Member of Parliament for Lobatse, an ailing town which houses the struggling biggest meat processing company in the country- Botswana Meat Commission, (BMC), said the Southern African Customs Union (SACU) recognizes the need to prioritize the key processes required for the implementation of the AfCFTA.
“The revised SACU Tariff Offer, which comprises 5,988 product lines with agreed Rules of Origin, representing 77% of the SACU Tariff Book, was submitted to the African Union Commission (AUC) in November 2020. The government is in the process of evaluating the tariff offers of other AfCFTA members prior to ratification, following which Botswana’s participation in AfCFTA will come to effect.”
Women continue to shadow men in politics – stereotypes such as ‘behind every successful man there is a woman’ cast the notion that women cannot lead. The 2019 general election recorded one of Botswana’s worst performances when it comes to women participation in parliamentary democracy with only three women elected to parliament.
Botswana’s former Minister of Health, Professor Sheila Tlou who is currently the Co-Chair, Global HIV Prevention Coalition & Nursing Now and an HIV, Gender & Human Rights Activist is not amused by the status quo. Tlou attributes this dilemma facing women to a number of factors, which she is convinced influence the voting patterns of Batswana when it comes to women politicians.
Professor Tlou plugs the party level voting systems as the first hindrance that blocks women from ascending to power. According to the former Minister of Health, there is inadequate amount of professionalism due to corrupt internal party structures affecting the voters roll and ultimately leading to voter apathy for those who end up struck off the voters rolls under dubious circumstances.
Tlou also stated that women’s campaigns are often clean; whilst men put to play the ‘politics is dirty metaphor using financial muscle to buy voters into voting for them without taking into consideration their abilities and credibility. The biggest hurdle according to Tlou is the fallacy that ‘Women cannot lead’, which is also perpetuated by other women who discourage people from voting for women.
There are numerous factors put on the table when scrutinizing a woman, she can be either too old, or too young, or her marital status can be used against her. An unmarried woman is labelled as a failure and questioned on how she intends on being a leader when she failed to have a home. The list is endless including slut shaming women who have either been through a divorce or on to their second marriages, Tlou observed.
The only way that voters can be emancipated from this mentality according to Tlou is through a robust voter education campaign tailor made to run continuously and not be left to the eve of elections as it is usually done. She further stated that the current crop of women in parliament must show case their abilities and magnify them – this will help make it clear that they too are worthy of votes.
And to women intending to run for office, Tlou encouraged them not to wait for the eleventh hour to show their interest and rather start in community mobilisation projects as early as possible so that the constituents can get to know them and their abilities prior to the election date.
Youthful Botswana National Front (BNF) leader and feminist, Resego Kgosidintsi blames women’s mentality towards one another which emanates from the fact that women have been socialised from a tender age that they cannot be leaders hence they find it difficult to vote for each other.
Kgosidintsi further states that, “Women do not have enough economic resources to stage effective campaigns. They are deemed as the natural care givers and would rather divert their funds towards raising children and building homes over buying campaign materials.”
Meanwhile, Vice President of the Alliance for Progressives (AP), Wynter Mmolotsi agrees that women’s participation in politics in Botswana remains a challenge. To address this Mmolotsi suggested that there should be constituencies reserved for women candidates only so that the outcome regardless of the party should deliver a woman Member of Parliament.
Mmolotsi further suggested that Botswana should ditch the First Past the Post system of election and opt for the proportional representation where contesting parties will dutifully list able women as their representatives in parliament.
On why women do not get elected, Mmolotsi explained that he had heard first hand from voters that they are reluctant to vote for women since they have limited access to them once they have won; unlike their male counterparts who have proven to be available night or day.
The pre-historic awarding of gender roles relegating women to be pregnant and barefoot at home and the man to be out there fending for the family has disadvantaged women in political and other professional careers.