Who Owns Whom

The Construction Industry in Botswana

Charles Chinya | Botswana | 06 October 2021

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.

Trends

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.

Report Coverage

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.

Table of Contents

PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
1.1. Industry Value Chain 7
1.2. Geographic Position 8
2. SIZE OF THE INDUSTRY 8
3. STATE OF THE INDUSTRY 10
3.1. Local 10
3.1.1. Corporate Actions 13
3.1.2. Regulations 13
3.1.3. Enterprise Development and Social Economic Development 15
3.2. Continental 15
3.3. International 20
4. INFLUENCING FACTORS 22
4.1. Coronavirus 22
4.2. Economic Environment 23
4.3. Rising Input Costs 24
4.4. Technology, Research and Development (R&D) and Innovation 24
4.5. Government Incentives and Support 25
4.6. Environmental Concerns 26
4.7. Labour 27
5. COMPETITION 28
5.1. Barriers to Entry 28
6. SWOT ANALYSIS 29
7. OUTLOOK 30
8. INDUSTRY ASSOCIATIONS 30
9. REFERENCES 30
9.1. Publications 30
9.2. Websites 31
APPENDIX 1 32
Summary Of Notable Players 32
COMPANY PROFILES 39
BANGO TRADING (PTY) LTD 39
CHINA CIVIL ENGINEERING CONSTRUCTION (BOTSWANA) (PTY) LTD 41
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LTD 43
CONCOR BOTSWANA (PTY) LTD 46
CONSOLIDATED CONTRACTORS COMPANY 48
CPP (BOTSWANA) (PTY) LTD 52
CUL DE SAC (PTY) LTD 54
EH CONSTRUCTION (PTY) LTD 56
ESTATE CONSTRUCTION (PTY) LTD 58
FLUOR DANIEL HOLDINGS (BOTSWANA) (PTY) LTD 61
IMAGE CIVIL ENGINEERING (PTY) LTD 63
KALCON (PTY) LTD 65
KHATO CIVILS BOTSWANA (PTY) LTD 67
OTLAADISA PROJECTS (PTY) LTD 69
RED EAST CONSTRUCTION (PTY) LTD 70
STEFANUTTI STOCKS BOTSWANA (PTY) LTD 72
TEAM ENGINEERS (PTY) LTD 74
THREE BOSES (BOTSWANA) (PTY) LTD 76
UNIK CONSTRUCTION ENGINEERING (PTY) LTD 78
UNIVERSAL BUILDERS (BOTSWANA) (PTY) LTD 80
WBHO CONSTRUCTION (PTY) LTD 82
WHARIC CONSTRUCTION (PTY) LTD 84
ZAC CONSTRUCTION (PTY) LTD 86
ZUTARI BOTSWANA (PTY) LTD 88