The City of Juba, the new Capital of Republic of South Sudan
On Friday 08 July 2011, the world welcomed a new independent country to the map; Republic of South Sudan. South Sudan, which broke free from what used to be Sudan governed from Khartoum, will now have its own government with its own capital in the city of Juba. As a new country comes into being, opportunities and new potential relationships await investors and businesses internationally. Western countries and their private companies are already forming relationships, both on national and economic bases.
The built environment in general stands to benefit from these raw opportunities of building new cities, new buildings and new national symbols of South Sudan. The City of Juba, which is currently characterized by slums, is to undergo a 7billion US dollar re-planning, most of which will be funded by private investors. Canadian firms in partnership with Sudanese firms are already drawing up master plans for the capital city and the second city of Wabu, which is also to be developed. The new republic also boasts of oil reserve, much of Sudan’s 480,000 barrels-a-day oil comes from the newly established South Sudan.
These opportunities are there for our local CI companies to explore. In fact the rest of sub-Sahara Africa is there to be explored, including our neighbouring relatively similar economies such as Namibia, Mozambique and Malawi. Botswana has over the years maintained a strong economy and superiority of its currency, but our firms have been slow to maximise from the buying potential of our currency. More often our local firms are more than happy to bring in international partners for opportunities here, but rarely venture out into the wider economy of Africa to take advantage of other opportunities.
Our local CI is experiencing a slump in new projects, characterised by Government’s freeze of all new projects announced in the 2011-12 budget. This freeze exposes the over reliance of our CI on government. The only projects that are still going ahead are those deemed of ‘national importance’ such as the Botswana Innovation Hub (BIH), North-South Water Carrier project, and Mmamabula Energy Project (MEP), but sadly these mega projects are out of reach for many of our local small companies under current procuring methods. Therefore in order to survive, the local CI needs to begin weaning itself from government tenders and venture into other African markets.
It is very encouraging to see local firms such as Turnstar Holdings keeping their own in countries like Tanzania and Kenya. Letshego and others too are venturing out to what really is the wider market with good opportunities. Other design firms such as Moralo Designs and MPI are currently establishing themselves in West Africa. While many local firms have tried to set up in SA, the CI market there has proven to be very conservative and hard to penetrate. This is the feeling I got from local firms who regularly partner with South African firms for local work. Ironically they can’t get much partnership work on the South African side.
Our local CI firms need to actively look for opportunities in other developing economies across Africa for expanding their services. Countries such as Kenya, Ghana, Tanzania, Mozambique, Namibia and others present credible opportunities for diversification.
© 2011, Boidus. All rights reserved.
Hi, Killion
I am with BG News and get an opportunity now and again to go through your articles. I must say this particular installment is deficient coming from a scholar of your repute.
I have no beef with the need for our local CI to venture into Africa for opportunities, but it is rather simplistic to suggest that local private investors should abandon the lucrative domestic market with its mega-projects dominated by foreign firms and take flight to foreign countries. Rather as a scholar I expect your column to challenge with authority, the current procurement methods that block our firms out. Why are they not able to access funding from our local banks, including our financing institutions such as CEDA, VPB, NDB etal? Why are they unable to take advantage of the strong local currency, and do show what the benefits of a strong currency are for a local firm.
Investment is also not a culture in Botswana, and this is apparent from the lack of any meaningful foreign investment undertaken by any one of our fat cats, big guns, millionaires etal. Why is this so? What can the CITF do to exert the independence of the local CI firms from over-reliance on govt. tenders? Please interrogate these and related issues in depth to inform our citizen economic empowerment policy. In new democracies like South Africa and Namibia they already have Black Economic Empowerment Act, but with our four-decades self-rule we don’t even have a policy, but a raft of inhibiting pieces of policies and laws designed to lock the citizen out.
Regards
EM
Posted by EM | 20. Jul, 2011, 9:07 pmThank you for a brief well written article. I must say I’m of the same sentimental view that the CI must venture into other territories. Such a move will be of significant value not only to the companies but also to the local construction industry and Botswana economic well-being.
The skills and knowledge associated with different region will be explored to enhance CI portfolios.
Posted by Sony Kurmar | 20. Jul, 2012, 2:17 am