According to the Knight Frank report, 2023, the global property market is expected to grow by 3,6% between 2022 and 2023 with Africa expected to be one of the fastest-growing regions. In line with this prediction and in light of the positive impact of the revised Transfer Duty Act, we anticipate the property market in Botswana to remain resilient with an increase in young homeowners being the sustaining force. With the anticipated increase in buyer power, how are local developers and the country fairing with global trends such as ESG and green buildings?
In line with the Sustainable Development Goals, Pillar 3 of Botswana’s Vision 2036 emphasises the development of a sustainable environment as a key factor in economic transformation. At a national level, the commitment is that “Botswana will have a low carbon footprint, with a society that is aware of and resilient to the consequences of climate change. Our planning and decision-making will take cognisance of vulnerabilities and provide for the implementation of appropriate mitigation and adaptation measures.” These sentiments are aligned with Botswana’s undertakings in terms of the Paris Agreement 2015, the aim of which is to develop actions by countries in order to address building-related emissions or improve energy efficiency.
During the life and maintenance of a building, buildings use energy, materials, water, generate waste, and emit potentially harmful atmospheric emissions. From 2017, CO2 emissions from buildings and construction globally have been on the rise, a decline was seen from 2020 due to the pandemic and reduced construction globally but not as a result of any long-term decarbonising strategy in the sector. To address this, there is a need for climate-compatible development, particularly in urban areas known as “green conveyancing.”
Green conveyancing requires the incorporation of environmental considerations into property transactions with the aim of reducing the environmental impact of property transactions. This is achieved by considering a property’s energy efficiency, carbon emissions, and other environmental factors. It involves additional tasks such as checking for energy efficiency certificates, assessing a property’s sustainability credentials, and taking into account how one can reduce the environmental impact of their property. The aim being to avoid increasing levels of carbon emissions, waste generation, refurbishment and alterations of the property, water and energy consumption.
Green conveyancing allows developers, investors, buyers and renters to consider any property transaction’s environmental, social and governance elements. The focus is on conducting business ethically in all three areas. Governments globally, including Botswana are introducing policies, standards and regulations to promote environmental sustainability in the property sector. We have seen numerous developments across the world employing environmentally responsible and resource-efficient materials throughout the building life cycle.
To ensure sustainability is measurable, a critical aspect of green conveyancing is the adoption of green building rating tools which are utilised to assess and recognise a building meeting sustainability standards. The World Green Building Council has developed rating standards adopted and utilised globally by regional and country-specific green councils. Though Botswana is yet to adopt its own certification standards, through the utilisation of the South African Green Council standards, the Botswana Green Building Council has certified as green buildings, 3 buildings being Mashatu Terrace, Prime Plaza and the PWC headquarters.
Although it may be some time before Botswana fully implements the development of green buildings, we have seen some encouraging developments in the area of green energy an aspect of sustainability in the sector. Two key examples are Airport Junction Mall and Sebele Mall. This use of solar energy has been facilitated by the Botswana Power Corporation rooftop installation programme (BPC RTS Programme) in its efforts to create sustainable development.
The BPC RTS Programme allows domestic, commercial and industrial consumers to install grid-tied ground or rooftop-mounted solar systems on their properties and allows consumers to generate electricity for their own use from solar panels and sell any excess back to Botswana Power Corporation. The applicable capacity limits on the BPC RTS Programme are as follows:
| Property type | Capacity |
| Residential | 35 KW |
| Commercial and Industrial | 1 MW |
Any excess power generation through a consumer’s rooftop installation will be sold to BPC and credited to the consumer’s next bill. A further example is the Botswana Innovation Hub building which through design elements has incorporated sustainability. By using a concept known as an “energy blanket” roofscape the roof design incorporates large overhangs to passively shade the building’s interior volumes, mechanisms to collect and reuse water, and both passive and active photovoltaic systems to harness solar energy.
Though Botswana’s building laws still focus primarily on structural integrity and safety, with increased global and national pressure on ESG and sustainability we foresee more developments from both a policy and legislative point. Through sectoral partnerships and collaborations, the Botswana Green Building Council aims to have high-performance buildings and to drive the adoption of green building certification in Botswana. Working with the Botswana Bureau of Standards, the Botswana Green Building Council has an ongoing project to redevelop the Botswana building standards, especially around energy standards.
Even in the absence of any legislative obligation, it is clear that long-term sustainability must be at the forefront of every new development and the maintenance of all existing developments. If your internal policies do not require this, it is likely that from an ESG perspective, your funders, investors, customers and tenants may place that obligation on you as a developer. Therefore, you must familiarise yourself with global trends in this area of sustainability and ensure compliance.
Further information on the BPC RTS Programme may be obtained at https://rts-applicationform.azurewebsites.net/ and https://www.bera.co.bw/downloads/Electricity/Botswana%20Rooftop%20Solar%20Guidelines%201-Pager.pdf
**Ends**
Should you require any assistance and information regarding this growing trend and property-related transactions please feel free to contact us at info@peolegal.co.bw or +267 3975779.
The information contained in this Legal Brief was intended for our clients and correct to the best of the author’s knowledge at the time of publication. Before making any decision or taking any action, you should consult the contacts listed here.