Magang Dreams Big, Sees Glimpse....

Maverick managing director of Phakalane Golf Estate Lesang Magang strongly believes opportunities still stretch out ahead of Botswana's economy amid several barriers which straddle fragmented efforts by government and private sector to boost economic activities in the country.

Talking exclusively to The Business Diary magazine two days before his birthday which falls on the 9thof July at the golf estate's club house, Magang a young business magnate managing a family business consisting of a golf course, conference centre and a property arm poured out his sentiments on what has drawn back Botswana from being the most preferred destination for investment in Africa. With the best political climate conducive for business highlighted by rating agencies both local and international, the country's efforts have not been sharp enough to promote economic activities and diversification of the economy according to Magang whose concern for detail is out of this world. Magang cited impediments such as government red tape in the Ministry of Labour and Home Affairs, stereotype myths imprinted in the nation, failure to think outside the box and other challenges as part of the blockades to luring wealth investors into the country. ''There is an opportunity for Botswana to reposition itself as one of the top places, a preferred destination in Africa and even compete at par with South Africa," said Magang adding that government should not only look West for investments. 'The West at the moment is broke and even before there were not putting as much direct investment, maybe into mining and banking indirectly." Magang says narrow-minded focus has resulted in the country's failure to create employment so much needed in the country. 'We have been arrogantly drunk with the money for diamonds, imagine if diamonds mine shut down. We still have not created as much employment, therefore at the end of the day in order to diversify this economy we should also be able to attract major investment from China that will coax other investors to come here," he advised. Without taking away any credit from various parastatals and government departments that have embarked on numerous investor seeking tours, Magang said the promotion agencies cannot extensively cream-sell Botswana compared to a resident investors already satisfied with service delivery in the country.

"Potential Chinese investors would rather listen to another Chinese say am doing better in Botswana versus one working for a promotion agency." Magang said all the government efforts being done to promote the country are sometimes hampered by immigration officials whose turn around time for issuing visas frustrates potential investors. He pointed out that parastatals genuinely go out to attract investors but immigration officials dampen that noble effort. "Imagine a Chinese billionaire (who) wants to come to Botswana and it takes him up to three weeks to get a visa," said Magang. To support his argument, he said currently Chinese are prepared to make an investment of 58 million pula in factory shells to be rented out or sold to other Chinese investors wishing to set up base in Botswana. "I have now met a very different breed of Chinese who are very of1 wealthy, very young and would like to base here but we do not treat them with respect as investors They just want to locate here just because of the advantages of being in Botswana," added Magang narrating how many of them complain of poor service delivery from immigration officers. He said when such cases are reported to Ministers, surprise is uttered as the answer because the top says one thing but the bottom move in a different rhythm. Magang bemoaned such a trend and expressed that it was unfortunate that superiors at the Home Affairs and Labour were not always at the boarder gates everyday saying it's a culture that needs to be controlled.

He said the country needs to open up and allow swift traffic into the country to heighten economic activities, however, he emphasized that the window of opportunity should not be misused to allow any irrelevant entrants into the country, but to give potential investors and professional the envisaged warm welcome that they deseNe. 'If a Zimbabwean is a professional please come in, if you are Chinese and you are an investor please come in. Let us make it easy for markets that we ask from. We can make Botswana be the capital for anyone who wants to do business in Africa. Let the wealthiest Chinese to come into Botswana. Let them know that within one week, they can get a visa," Magang stressed. 'It's not about populations but it's all about positioning yourself to think smarter because you have got other resources that the others do not have."

The astute estate owner says more traffic into the country will encourage more direct flights into Botswana; the nation should also look at the positive aspects of that move. "Every country with a posh suburb attracts the posh, wealthy people whom amongst some of them could be drug dealers, but at the end of the day, it is the work of Interpol to track them down."
Switching from national issues to the future of Phakalane Golf Estate Magang shared with The Business Diary team plans by his company to bring a cosmopolitan feel, a cosmopolitan value and status in the context of Phakalane whose value has over the past years shot up by 16% as a result of landscaping. He said the whole project will gobble close to 120 million pula.

He said to achieve the goal was not an easy task since he still spend more time trying to convince financial houses that Phakalane is sustainable for the envisaged development, even after twenty years of having its plan in existence. Following the recent announcement of the on-going construction of a four star hotel coupled with a health spur expected to be operational next year which many believe will add value to the tourism sector in Gaborone, Phakalane Golf Estate is coming up with a unique concept for a business centre in the middle of Phakalane developed along the lines of Melrose, an up-market suburb in Johannesburg, South Africa. The business centre is expected to have a hotel, offices and up market apartments targeting young professionals and university students making Phakalane a complete village with all the available needs.

Another development also in the pipeline is a secure Estate dubbed Thobo Hamlet with 220 plots whose major attraction will a one hectare immaculately manicured central communal park to provide safe playing place for children. Magang said despite the fact that financiers are taking their time to lend a helping hand, the company has managed to create an up market suburb comparable to most exclusive suburbs of South Africa.

"Phakalane has been offering a unique product, we want to ensure and realize that we offer value for money, a suburb that is equally to the best in South Africa and best destinations worldwide," said Magang his wish is to get a million millionaire roaming around the world with a Botswana residential address. "We are embarking on the biggest extension of Phakalane, although there is a global problem, we are trying to position ourselves to be ready when the rest of the world wakes up out of this economic slump to ensure that investors that will come to Phakalane in the next 10 to 12 months, will say Phakalane is the location where you can base and the lifestyle in Botswana is of a high quality." Quizzed if his company is gearing up for the liberalization of markets through Free Trade Area (FTA) pushed under Southern Africa
Development Committee agenda, Magang sounded positive on the move, "It is definitely within our plan that we want to see Phakalane being replicated in other parts of Africa, because other parts in Africa have a similar background in the sense that they do not have urban area like Phakalane in much as they have nice areas." "A lot of people would like to see the duplication of Phakalane because our vision is to have complete well craft industrial, commercial and residential estates coined with the golf estate which is a tall order for any developer in the region outside South Africa to try and do,"

However, he mentioned that the company's main focus is to develop and complete Phakalane after which the company will have the scope to partner with the right people outside Botswana and hopefully be able to raise the right equity funding through pension funds in the country, He continued that there was so much equity in pension funds that can be used to invest in property in countries with big populations and huge demand for accommodation citing Angola which needs to build a million houses in the next two years. Magang's swansong was a challenge to Government to take a leaf from the humble growth of Phakalane Golf Estate which has managed to attract influential personalities to buy properties there such as the chief justice, former president and other high ranking officials "In the same way that Phakalane has grown from, we can attract investment into Botswana that will remain for years." He said that will create an economy like Dubai, and more importantly making sure that locals may have money in the process.

He said one key thing that the nation misses in the whole equation of boosting the economy is defining what the country wants; which is making all locals enjoy the benefits. 'There should be no professionally qualified Motswana who should not get a job in Botswana to justify it, we Batswana are not reproducing quick enough, we are not. We should take advantage of the people that are there, to say how we can make Botswana the Best for an investor to come here," "Let's try and be masters of our own destiny as best as we can, Partner and grow to make Botswana the Dubai and Switzerland of Africa. Attract wealth people some of them wealthier than Botswana but immigration officials," he added. "I am not saying I have all the
vision, my company or my board of directors but all am saying is that countries have been built by the vision of various men and women and we just have got to admit that and we still have got big plans that can get Botswana where it needs to get. I have got so many ideas I can churn them year in year out."

The Hurdles and Success of Phakalane Golf Resort and Hotel

Phakalane was originally an agricultural farm, focusing mainly on cattle ranching. The Sim family, of Irish descent, acquired the farm from the South Africa Chartered Company in 1903, for £240 Sterling.
Elizabeth Sim inherited the farm from her husband and it was transferred to her in 1928, and subsequently to George Sim, from whom the Magang family purchased the property in 1976. The Magang family is therefore the third owners of the farm that has become part of the Gaborone Development Area. After seven years of continuous struggle for planning permission from Government and various public authorities, Phakalane Estates development was approved in principle in 1985. Rnal approval was authorised in 1989 and the actual infrastructural development commenced in 1989, ten years after the initial application in 1978.
The development of Phase One was a joint venture between Phakalane Estates (Pty) Ltd. (family company) and the Botswana Development Corporation.

In 1992, Phakalane Estates alone commenced the development of Acacia Park, which is a combination of residential and rail serviced industrial plots. The development of Phakalane by the Magang family certainly became the forerunner to private estate property developments in
Botswana. The unique development is a major breakthrough in property development by the private sector. Phakalane - a residential, commercial and industrial estate designed for the new millennium. It was the vision of one man, David Magang, supported by his wife Dorcas, that over two decades ago led to the planning of an extensive redevelopment of the family farm into a progressive and far-sighted private sector initiative - in fact, it is the precursor of the private township in Botswana.

In a careful blend of taste and attention to detail, Phakalane's infrastructural services have been laid out to conform to engineering and aesthetic standards which, in many cases, exceed the requirements of local city councils - and often parallel prestige developments not only in other progressive African countries but also those in developed European, Australian and American cities. Phakalane is an estate offering everything dreams are made of. Children and families are able to enjoy the quiet surrounds unhindered by the hustle and bustle of city life. Cycling, jogging, walking and of course golf, are daily pastimes for families in Phakalane. The suburb is the most sought-after address in Botswana and the increase in property values and media coverage of the lifestyle bears testimony to this. The Estate is a showcase of what the private sector and Botswana can do.