Exponential Investments Pty Ltd, a Botswana-registered company established by fellow countrymen a few years back, publicly unveiled its P78 million property located at the ever busy Central Business District (CBD) on Thursday.
Although relatively unknown, Exponential Investments Pty Ltd, we have been told, was initially set up by 16 members made up of individuals and companies who share a common vision of coming together as Batswana to develop an “A” grade property. It is an investment that will surely give all its stakeholders a good return based on what they have initially put in.
After formation, the company then acquired a prime corner plot in the CBD measuring 7000sqm for the price of P4 million. The concept for the project was to develop an eight storey office park that will address the shortage of office space in Gaborone. Fast forward to 2014 and it is mission accomplished for Dumi Lopang, the chairman of the company together with his business associates whose number has since risen to 61 after allowing more Batswana to join.
In a quick chit-chat with Sunday Standard at one of his offices at Finance Park on Friday, Lopang indicated that the thinking behind the project was to try and get as many young Batswana involved, as they felt that it was a great opportunity and platform for them to make a meaningful investment in a large scale “A” grade property development project.
We have also been told that at the beginning of the project, its promoters decided to have a minimum contribution of P100 000.00. The investment is open to individuals, companies, partnerships and consortia. There was no limit on the investment that one entity can make.
In our view, the project is a clear example of true enterprise and what collaboration between citizens can do to contribute to the economic development of our country.
To those who are familiar with the business language, they will tell you that Exponential Investments is just another form of cooperative (koposare) or a form of credit union movement. These kinds of movements usually begin with a simple idea but expand hugely.
We fully agree with Trade Minister, Dorcus Malesu that business development, creativity and innovation are the heart of Botswana’s Economic Diversification Drive initiative which aims to promote the growth of a vibrant and globally competitive private sector. Exponential Investments Pty Ltd.’s way of raising funds is innovative. It is quite unique and should be emulated.
There is no doubt that the 2008 unsettled financial environment we’ve all experienced has caused some of our fellow citizens stress. This is why the need for people to dedicate themselves to helping others has never been more important. Exponential Investments has indeed proved that that Batswana, like other people could achieve a better standard of living for themselves and others by working together.
As the dust settles and the Exponential House gets full occupancy, the financial well-being of its shareholders members will surely rebound if it ever went down. Perhaps it is worth noting at this juncture that the project was ushered in through a new debt free business model with zero capital from banks and other financial institutions. Do we need to state that it is rare to hear of projects of this magnitude without loans and huge debts?
The Bottom-line however is that savings mobilization is a key component in any development endeavor as it is believed to be the surest way of increasing income and boosting productivity in the attempt to eradicate poverty.
Dumi Lopang and his business associates should not be ashamed to go ahead and publicly share their strategies as a way of social corporate responsibility. Generally cooperative strategies are education and training as well as evaluation and mentorship, developing a savings culture, promoting of a savings mobilization culture and most importantly change of attitude and dependence syndrome.
Through savings there will be capital accumulation leading to investments hence economic growth and ultimate development. A high saving economy accumulates assets faster, and thus grows faster, than does a low saving economy. #Let us form those saving cooperatives and make further investment.