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Frost & Sullivan: Significant Infrastructure Growth Expected for Botswana over the Next Decade

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Frost & Sullivan: Significant Infrastructure Growth Expected for Botswana over the Next Decade PR Newswire CAPE TOWN, South Africa, Sept. 5, 2012 - Transport and energy & power segments to expand the fastest CAPE TOWN, South Africa, Sept. 5, 2012 /PRNewswire/ -- The need to diversify Botswana's economy and expansion of the mining sector will drive infrastructure development in the country. As a result, the transport and energy & power sectors are expected to see the most growth over the next decade. As the majority of projects are financed by the government, and the country is heavily reliant on revenues from the diamond mining industry, the economic recession continues to be the greatest restraint for infrastructure development. New analysis from Frost & Sullivan (http://www.environmental.frost.com), African Infrastructure Tracker: Botswana's Infrastructure Sector, finds that there will be significant growth in the transport and energy & power infrastructure sectors in Botswana. This is as a result of the government's aim to expand the mining industry and stimulate economic growth by diversifying the economy. "The discovery of considerable coal reserves is one of the greatest drivers for the development of improved transport infrastructure, and capacity building in the energy & power sector.
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Frost & Sullivan: Significant Infrastructure Growth Expected for Botswana over the Next Decade
PR Newswire CAPE TOWN, South Africa, Sept. 5, 2012
- Transport and energy & power segments to expand the fastest CAPE TOWN, South Africa, Sept. 5, 2012 /PRNewswire/ -- The need to diversify Botswana's economy and expansion of the mining sector will drive infrastructure development in the country. As a result, the transport and energy & power sectors are expected to see the most growth over the next decade. As the majority of projects are financed by the government, and the country is heavily reliant on revenues from the diamond mining industry, the economic recession continues to be the greatest restraint for infrastructure development. New analysis from Frost & Sullivan (http://www.environmental.frost.com), African Infrastructure Tracker:Botswana's Infrastructure Sector, finds that there will be significant growth in the transport and energy & power infrastructure sectors inBotswana. This is as a result of the government's aim to expand the mining industry and stimulate economic growth by diversifying the economy. "The discovery of considerable coal reserves is one of the greatest drivers for the development of improved transport infrastructure, and capacity building in the energy & power sector.Botswana's Morupule B power station is currently operating at 110% capacity and the country imports 97% of its energy requirement," noted Frost & Sullivan's Environmental & Building Technologies Industry Analyst, Sarah O'Carroll. "The government is also trying to diversify its economy, in order to decrease its reliance on the mining sector. This is also a significant contributor to investment in infrastructure." Botswana's rail network is in desperate need of expansion. The country has a single North-South rail corridor with three small branches, connecting only two of its neighbours,ZimbabweandSouth Africa. An estimated$8.4 billionwill be invested in expanding the railway network. This investment will seeBotswana connected toNamibiaandMozambiquethrough two new rail links, allowing the efficient transportation of minerals for export. It is hoped that the improved rail network will also transformBotswanainto a transport hub in southernAfrica, with the country facilitating trade in the Southern African Development Community (SADC). O'Carroll stated that transport infrastructure had not been upgraded and extended since the 1980's, increasing both the cost and time to transport manufactured goods and raw materials. Poor infrastructure in these sectors has ultimately restricted the development of new industries and the expansion of existing ones. Infrastructure development inBotswanais driven by the government. The economic recession has reduced both government revenues, due to sharply decreased diamond prices, and foreign direct investment. This has greatly restricted the government's ability to carry out new infrastructure projects.