Gaborone dam and Molatedi dam have been declared failed projects by the Water Utilities Corporation (WUC)
Potential investors in the mining sector this week paid a courtesy visit to Botswana to solicit information on the business environment – in particular whether it’s currently conducive for conducting copper mining, WeekendPost can reveal.
This publication has gathered that the investors, who visited this country through a consultancy, want to set up a mining venture by processing copper into final products as it has been exported to other countries while raw.
It is understood that Business Botswana, formerly Botswana Confederation of Commerce Industry and Manpower (BOCCIM) facilitated their business visit as they viewed it as local investment opportunity despite the country going through water and power crises.
This publication has established that the investors will henceforth weigh their options of investing after gathering first hand and sufficient information on water as well as power conditions in the country.
“Yes it is true Business Botswana brought the investors here, and basically they are doing preliminary investigations in terms of trying to establish the business environment in Botswana especially with regard to the water state of affairs,” a highly classified source at Water Utilities revealed this week, while preferring not to mention the consultancy or names of the investors.
According to the top official, the investors want to establish where they can position the mining venture in terms of water status. The investors are said to have also come to meet different stakeholders like Botswana Power Corporation (BPC), Mining companies, Ministry of Minerals, Energy and Water Resources (MMEWR) among others; as they try to explore chances of investment.
“We need to give them facts in this regard. We need to tell them the truth about the current situation we are facing as well as how we are stabilizing the water situation,” the WUC highly placed source indicated.
“So in our view what matters is where they place their investment. If they intend to place it in the south for sure they will face difficulties as severe water crises is felt in the south.”
He said if government is to attract investors, it needs to inject more funds into various projects by Water Utilities so as to help improve the water situation, and at the same time bridging the unemployment gap.
According to the source, funding either from government, loans or private sector remains a big issue in the matter as the corporation continuously tries to lure them to invest in the water sector so as to implement their projects line up and ultimately reach water security. The country has been plunged with a worsening water crises situation and last week it reached an all-time low level – a predicament the immaculate source who sits in the Corporation executive confesses.
According to a WUC statement, Bokaa dam has almost dried up following Gaborone dam which has absolutely dried up at the moment.
“Bokaa dam is currently at 3.5% and might fail at any time. The failure of Bokaa dam will translate into reduced supply as well as a loss of one more source of water for the Greater Gaborone area, following the failure of Gaborone dam – which dried up completely in December 2014,” WUC Corporate Communications Manager Matida Mmipi said in a statement released last week.
As a result, Mmipi states that, with effect from today (Saturday), water rationing days will be intensified from three to four days a week in Gaborone – a move the investors might find arduous for business.
Currently, she said, the Greater Gaborone area’s sources of water are the Bokaa dam, Molatedi dam (also on line to dry up) and the North South Carrier 1 (NSC 1) which transfers water from Dikgatlhong dam to the South. Bokaa dam currently produces 19 million litres a day and NSC 1 harvests 60 million litres a day while Molatedi dam churns out 9.7 million litres per day.
However the Greater Gaborone area’s average water demand is said to be standing at 125 million litres a day. This therefore means the area is running on a water deficit of 37.7 million litres a day and this is expected to drop further, due to the anticipated close down of Bokaa in a few weeks.
In addition, and as a matter of fact, the source told Weekend Post that Bokaa dam is virtually considered failed and Molatedi dam is going down loose as well. “To tell you the truth our hopes are now on rainfall – that is where we can get the water,” he pointed out.
Apart from that he hinted that they put their last hope on the Masama West Well-fields project which is on the offing but would take almost 12 months to be operational. Masama project, which is currently being tested, will augment water to the Greater Gaborone area, and when fully functional it will inject 30 million litres into the NSC 1 a day to water Greater Gaborone area. Masama is 100km from Gaborone en-route Francistown.
Meanwhile NSC 1 which transmits water from the second largest dam, Dikgatlhong, after Gaborone dam feeds the northern part of the country, and additionally augments the south in the current arrangement. In the south the water crises is attributed to flat land and high rate of evaporation.
It is also understood that NSC 1 was never implemented to solve the water problem in the south completely but to augment it, as Greater Gaborone cannot rely on dams from the north as they will eventually dry up, even faster, too.
Information gathered also suggests that Water Utilities is looking for a fourth pump station to push more water to the South with more pressure. With more water in the pipeline, there is likelihood of a breakdown and the fourth pump would serve as back up (spare). The simple logic is that when one pump is down the other would be running.
Although the pipelines used for NSC 1 are said to be of sub-standard material, the project is fully built and now functional. “The Pipelines materials are not exactly what we wanted, we needed steel,” the immaculate source highlighted.
Currently, there is an ongoing project to replace the entire 26 km pipeline as there are already a number of leaks (around 7 to 8) in it. “These leaks cannot be repaired, the repair would take longer as water would have to be drained out of the pipeline (and it’s huge) followed by excavation and then the repairing, so the whole pipeline needs to be replaced. That is why this project is running parallel to the pipeline.”
Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.
The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.
Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa
A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.
COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”
According to Moribame, Start-up businesses will forever require help if there is no change.
“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”
Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”
Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.
Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.
“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.
For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.
“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.
Letlhakeng:TotalEnergies Botswana today launched a Road Safety Campaign as part of their annual Stakeholder Relationship Management (SRM), in partnership with Unitrans, MVA Fund, TotalEnergies Letlhakeng Filling Station and the Letlhakeng Sub District Road Safety Committee during an event held in Letlhakeng under the theme, #IamTrafficToo.
The Supplier Relationship Management initiative is an undertaking by TotalEnergies through which TotalEnergie annually explores and implements social responsibility activities in communities within which we operate, by engaging key stakeholders who are aligned with the organization’s objectives. Speaking during the launch event, TotalEnergies’ Operations and HSSEQ, Patrick Thedi said, “We at TotalEnergies pride ourselves in being an industrial operator with a strategy centered on respect, listening, dialogue and stakeholder involvement, and a partner in the sustainable social and economic development of its host communities and countries. We are also very fortunate to have stakeholders who are in alignment with our organizational objectives. We assess relationships with our key stakeholders to understand their concerns and expectations as well as identify priority areas for improvement to strengthen the integration of Total Energies in the community. As our organization transitions from Total to Total Energies, we are committed to exploring sustainable initiatives that will be equally indicative of our growth and this Campaign is a step in the right direction. ”
As part of this campaign roll out, stakeholders will be refurbishing and upgrading and installing road signs around schools in the area, and generally where required. One of the objectives of the Campaign is to bring awareness and training on how to manage and share the road/parking with bulk vehicles, as the number of bulk vehicles using the Letlhakeng road to bypass Trans Kalahari increases. When welcoming guests to Letlhakeng, Kgosi Balepi said he welcomed the initiative as it will reduce the number of road incidents in the area.
Also present was District Traffic Officer ASP, Reuben Moleele, who gave a statistical overview of accidents in the region, as well as the rest of the country. Moleele applauded TotalEnergies and partners on the Campaign, especially ahead of the festive season, a time he pointed out is always one with high road statistics. The campaign name #IamTrafficToo, is a reminder to all road users, including pedestrians that they too need to be vigilant and play their part in ensuring a reduction in road incidents.
The official proceedings of the day included a handover of reflectors and stop/Go signs to the Letlhakeng Cluster from TotalEnerigies, injury prevention from tips from MVA’s Onkabetse Petlwana, as well as bulk vehicle safety tips delivered from Adolf Namate of Unitrans.
TotalEnergies, which is committed to having zero carbon emissions by 2050, has committed to rolling out the Road safety Campaign to the rest of the country in the future.