23 Jul 2013

The continuation of widespread electricity load-shedding is one of the biggest detractors for economic performance and confidence in the second quarter of 2013, says an economic report from Econsult, a local economic firm.

According to the report, loadshedding had been highly disruptive across the private sector, with inevitable implications for costs and productivity.  The report stated that although Botswana Power Corporation (BPC) had given assurances that supplies would be restored to normal by the end of July with the full commissioning of the new Morupule B power station, their failure to honour such commitments in the past, “actions will speak louder than words”.

The report also highlighted that power outages were being compounded by water shortages and restrictions in the south of the country, a problem that would take much longer to resolve. The report further stated that the ongoing power and water shortages were indicative of a deeper problem of poor planning and project management in the public sector.

It said while Morupule B might be the most extreme example, there were a number of other major projects that had been started late, completed late or not at all, been badly designed, had gone over budget, or not delivered the benefits or services that had been anticipated. “The long and the short of it is that public money is being wasted and the nation is being deprived of essential infrastructure, which is in turn holding back development,” it said.

The report observed that it was essential that proper attention was devoted to proper planning, selection, design and management of public sector investment projects. “Maybe this means doing fewer projects, but doing them better. It certainly means developing improved capacity within government and parastatals to plan and manage projects. If not, it is certain that future growth will be hindered and Botswana’s reputation for good governance and management will be in jeopardy,” it advises. ENDS