BMI View: Botswana's construction sector has a positive growth forecast thanks to sustained interest in its mining sector , however , forecasts are downgraded, based on 3.1% average real growth for H1 2014 resulting in estimates of 4.1% year-on-year (y-o-y) for 2014 as a whole. Foreign investment continues to flow into the country driven by a stable business environment and strong project pipeline in power, water and mining-related projects.
The sector is set to strengthen in 2015 with BMI forecasting year-on-year (y-o-y) growth of 5.8%.We believe growth will remain robust over our 10-year forecast period (2014-2023), averaging about 8.9% per year between 2014 and 2023, based on a substantial pipeline of projects.
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. 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.
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 by ABB, are planned.
Key Trends And D evelopments
South Korea-based Daewoo Engineering & Construction secured a USD161mn contract to build a bridge over the Zambezi River between Zambia and Botswana. Previously Japan's China Major Bridge Engineering Company, Daewoo and a joint venture comprising Shimizu Corporation and South Africa-based Stefanutti, had been in the running. The project's work is expected to start in September and...
The Botswana Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Botswana Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Botswanan infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Botswana to test other views - a key input for successful budgetary and planning in the Botswanan infrastructure market.
- Target business opportunities and risks in the Botswanan infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Botswana.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.
These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).
Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:
Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.
Building Materials Overview
The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.
Business Environment Rankings
BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).
Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.