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.
Introduction
This report focuses on Botswana’s Construction Industry, with an emphasis on building construction, civil engineering, and specialised construction activities. Statistics Botswana’s Q4 2020 GDP report indicates the construction industry contributed P12.3bn (pula) (US$1.13bn) in 2020 compared to P13.4bn (US$1.23 bn) in 2019, accounting for 6.8% of GDP in both years. A total of 53,158 people were employed in the industry in Q4 2020, representing 7% of total employed people. Coronavirus has had a devastating effect on the global construction industry, with reports indicating that global construction industry revenues declined from US$11.2-trillion in 2019 to US$10.6-trillion in 2020. However, the industry is projected to recover to US$11.5-trillion in 2021. Botswana’s construction industry is showing signs of recovery and it is expected to play a role in reviving the economy through the creation of jobs.
Strengths
• Barriers to entry for small and micro-sized companies are low.
• Construction is key driver of economic growth.
• Government has a database of SMEs owned by youth for awarding government projects.
• Government support for local SMEs.
• The industry is one of the country’s largest employers.
• The industry serves all sectors of the economy.
Weaknesses
• Construction sites are hazardous workplaces.
• Cost overruns are common due to rising labour and materials costs.
• Delays in land allocation for infrastructure development.
• Delays in processing work and residence permits for foreign skilled personnel.
• Government is the main provider of projects.
• Lack of competitiveness among locally-owned companies.
• Profit margins are narrow.
• Projects delays are common and result in budget overruns.
• The industry is male dominated, and there is a shortage of highly skilled personnel.
Opportunities
• Demand for housing in cities and major towns.
• 3D printing of building materials and structures.
• Demand for modular structures for offices and health care facilities.
• Government rollout of infrastructure development in terms of its National Development Plan 11.
• High demand for public servants’ houses and student accommodation.
• Provision of green building systems.
• The development of building management systems for monitoring and controlling usage of utilities.
Threats
• Delays implementing large projects.
• Exchange rate volatility.
• Poor economy following the pandemic and lockdown.
• Workforce health and safety risks, projects delays and supply chain disruptions relating to coronavirus.
Outlook
The coronavirus pandemic has highlighted the need to provide potable water in villages, affordable housing, and improved basic services delivery to vulnerable communities. According to Fitch Solutions, Botswana’s construction sector will rebound over the long term. The National Development Plan 11 and the country’s emergence as a transportation gateway for the Southern Africa north-south corridor, and the opening of the Kazungula bridge will support construction sector expansion. Fitch Solutions expects the industry to grow by an annual average 3.8% between 2022-2030. This growth will be supported primarily by infrastructure projects in mining, water, and energy.
The Construction Industry in Botswana
2021
Full Report
R 1 900.00(ZAR) estimated $105.41 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.79 (USD)*
Table of Contents
[ Close ]| 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 |
