Sunday, February 28, 2021

Strong recovery expected in infrastructure and construction sectors

Botswana’s infrastructure report has indicated that the infrastructure and construction sector of Botswana is heading into a strong recovery from previous growth rates that were below expectations. For 2015, analysts expect the sector by a stable 5.7 percent before surpassing the 9percent mark in 2016. Crucial for the increase in growth is the energy and power development plans and growing investments in the mining industries.

The sector is set to return to increased growth in 2015, with forecasting year-on-year (y-o-y) growth of 5.7 percent.

”We believe growth will remain robust over our 10-year forecast period (2014-2023), averaging about 7.8percent per year between 2015 and 2024, based on a substantial pipeline of projects. Growth will remain above 9percent between 2016 and 2018, before settling around the 9percent mark,” the report reads.

It further reveals that the biggest source of value creation is likely to remain electricity and water investments. The country is working hard to reduce its reliance on South Africa for electricity supply and cater to growing domestic demand from its mining sector. According to the report there are a number of projects being developed and due to come online over the medium term. These include the long-delayed Morupule B coal-fired plant, which has had its implementation date pushed back several times. International companies are also expanding their business and investing in new mining projects.

In the water sector, severe droughts have left water levels in existing dams low, while ageing pipelines are preventing significant movement of water from areas with more supply. Consequently, water rationing occurs frequently. Investment in dams and pipelines, such as the construction of a 360km plant automation system at a water pipeline and pump station are also in the pipeline.

The timeframe of the current government’s National Development Plan (NDP) 10 has been extended until the end of March 2017. It will be followed by NDP 11, starting April 2017. The reason for the delay is to enable new parliamentarians to participate in drafting NDP 11.

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