‘Tough times ahead as volumes contract’

Freight forwarders and transport
operators alike are feeling
the pinch in Botswana where
volumes are down despite growth
in the economy.
According to Tsimane Brixton
Mogami, managing director of
Zebra Shipping in Gaborone,
things were looking up earlier in
the year, but since June there has
been a major volume decline.
“We were all preparing for a
peak season but instead we now
have a quiet time on our hands
where there is not much else to
do but sit and wait it out. The first
global recession hit Botswana
quite badly and now there is talk
of a second recession. It does
not bode well for business in a
landlocked country.”
This is despite Botswana’s
economy growing by 9.6% in the
second quarter of 2011 compared
to the 2.2% contraction in the first
quarter of the year.
“We have had some other major
factors which have impacted
negatively,” said Mogami, “such
as the foot and mouth disease
that has hit the beef industry, our
second largest market.”
The huge influx of Chinese into
the market has also resulted in
many companies feeling the pinch.
“The Chinese for the most part
don’t use local companies or labour
and prefer to do it all themselves.
These turnkey projects are not
benefiting local business as much
as they should,” said Mogami.
And with transport costs
exceptionally high as in most of the
SADC region, freight forwarders
and transporters are in for a rough
time, he said.