Mining slump puts Bots under pressure

Like many other southern

African countries, Botswana

is taking strain as a result of

the mining slump.

“Like many of our neighbours we

have very little manufacturing to

fall back on and so when mining is

put under pressure it is felt across

the spectrum,” said Lucas Barreto,

chairman of the Freight &Customs

Clearing Agents Association of

Botswana (FCCAAB).

“Trade has been extremely slow

in recent months with volumes not

really picking up significantly.”

He said freight forwarders were

also feeling the pinch.

“The problem is further

exacerbated by the fact that in those

areas where there is development the

opportunities are going to big foreign

companies rather than locals.”

He said the planned railway link

to Namibia from Botswana was one

example. The Kazungula bridge

project, currently under way across

the Zambezi River, was another.

“The bulk of the work is done

by foreign companies and big

multi-nationals. The smaller local

companies are not getting any of the

benefit.”

The Zambia government, in

an attempt to prevent this from

happening, has exempted duties for

all imported material being used for

the bridge.

“It was a very clever move by the

government as all of the contractors

are going to Zambia and working on

the project from there as they don’t

have to pay any duties on imported

material for the bridge.”

He said the Botswana traders and

transporters were not expecting to

see much benefit from the massive

multi-million dollar project.

“There is a lot of competition

regionally and so countries like

Botswana are going to have to get

more aggressive as they compete

for business,” he said. “At the same

time there is not enough trust and

so many multi-nationals that could

pass on work to local business

are unsure about joining with

companies here. We are going

to have to work hard to change

perceptions and find ways of

benefiting from big projects in our

country.”

In those areas where there is

development the opportunities

are going to big foreign companies

rather than locals.

CAPTION

Curios on sale in Botswana for the growing number of

tourists. Tourism has been targeted by government as

a growth sector in an effort to diversify its economy

away from mineral resources such as diamonds.