Business

Cities survey projects steady growth for Gaborone

The report says Gaborone has grown from 37.969 to 39.416 value indexes between 2014 and 2015 respectively.

According to the African Cities Growth Index (AGCI), which was assembled by research methodologist Professor George Angelopulo, of the University of South Africa, and sponsored by Mastercard and released on Monday, the index focus on ranking urban cities looking at indicators like electricity, water, sanitation, health and household consumption.

The report, which says population contribute to urban cities growth also mention industrialisation as the only way that constitutes to development while showing that the changing and fast growing cities in Africa could be locations of economic transformation for the continent.

The report further says the AGCI also assesses economic factors, but also includes aspects of forms of (an extended city or town comprising of the built-up area of a central place usually a municipality) and suburbs linked to a continuous urban area and a range of social indicators.

However, the report says while it is not an explicit measure of inclusive growth, it reflects the inclusive growth potential of cities.  Of the cities featured in the ACGI, each is grouped according to three classes; large cities – population over one million, medium cities – population between 500,000 and one million and small cities – population under 500,000. 

Thirty-one cities show an increase from last year’s index, while 18 show a decline in index value from 20. Gaborone, São Tomé and Port Louis show medium to low growth potential. Gaborone has steady a GDP and household consumption growth, the highest percentage of the population with cellular subscriptions, and the highest level of political stability.

Its regulatory quality is second only to Port Louis and its control of corruption is the highest in the 2015 ACGI.

Port Louis in Mauritius displays low economic inequality and a diversified, upper income economy, and is the highest ranked of all African countries in the World Economic Forum’s Global Competitiveness Index.

 Its fall in the rankings is primarily related to difficulties experienced in further growth and consumption. Currently, Botswana  faces electricity and water shortages that are hampering economic development.

The minister of Minerals, Energy and Water Resources, Kitso Mokaila has promised the nation that the problems are not insurmountable and would be solved in the near future.

Recently, in a bid to improve the electricity situation in the country, government chose a joint venture between Marubeni and South Korean, Posco Energy, as preferred bidders to expand the Morupule B power plant by a further 300MW at a cost of P8.1 billion.  The project will start next year and will be commissioned in 2020. However, politicians from across the political spectrum are saying that government is not treating the shortage of water and electricity with the urgency it deserves.

The mayor of Gaborone, Kagiso Thutlwe said obviously for a city to grow, it has to have sufficient supply of electricity and water.