Gabcon feels the economic Pinch

Container volumes in Botswana are continuing their downward spiral despite ongoing efforts to grow the business. According to Modise Koofhethile, managing director of the Gaborone Container Terminal (Gabcon), volumes have seen a significant drop in the past few years and are down by up to 45%. “It has been painful and we have been very challenged having to deal with the decreasing volumes,” he told FTW. “And while we have not posted any losses we have to take a hard look at how we do things and how we can turn this situation around.” He said in this regard he and executives at Gabcon had been extremely ambitious in their budgeting for the new financial year that kicked off in April. “We are hoping that business will pick up significantly and that volumes will increase as we move into 2015,” he said. According to Koofhethile, it is not just the container business that is under pressure in Botswana. “General business is suffering. Imports are down, with much of the contract and construction work having stopped in recent months while many planned projects did not take off. There have been a number of businesses that have closed down,” he said. But with agreements having been signed between Botswana and Namibia for the construction of the Trans Kalahari railway line, and in light of the massive coal finds in the country, he believes there is hope for the future. “The opportunities are there and it is all about being able to keep head above water through this tough economic time that we are currently facing.”