The Construction Industry in Botswana
Botswana’s construction industry contributed 6.8% of GDP in 2020 and employs over 50,000 people. The sector has over the years experienced numerous challenges including skills, capacity development and lack of competitiveness of local companies and it continues to be dominated by foreign companies, particularly when it comes to major projects. There are signs of recovery in the sector from the effects of the pandemic, and it is expected to play a role in reviving the economy through the creation of jobs.
The government continues to be the industry’s major client, financier, regulator and operator, and public expenditure drives the construction industry. The primary focus of infrastructure development is the provision of clean water and sanitation, power generation infrastructure, road infrastructure and hospitals and schools. Current projects include three hospitals, two senior secondary schools and a police station. Most of the high-value civil engineering and construction projects in the country are undertaken by foreign-owned construction companies. Demand for housing and public amenities is high in Gaborone and Francistown, and property developers are increasingly focused on gated communities and estate development. There is a shortage of accommodation for public servants and a shortage of student accommodation.
This report focuses on Botswana’s construction industry, with an emphasis on building construction, civil engineering, and specialised construction activities. It includes information on the state of the sector, key trends and developments and regulations and corporate actions. There are profiles of 24 companies including Khato Civils Botswana, which partnered with a local company to construct a 100km water pipeline project from Masama to Gaborone and Chinese contractors such as China Civil Engineering Construction Botswana and China State Construction Engineering Corporation. Profiled local subsidiaries of South African companies include Stefanutti Stocks Botswana and Concor Botswana while locally-owned companies profiled include EH Construction, which is involved in civil construction, major building construction and bulk earthworks.