Botswana has adopted policies in its construction industry aimed at developing its citizen
contractors to a standard comparable to any other. Towards this end, it has instituted a
number of interventions one of which is to provide these contractors with an advance loan
to enable them mobilize on site. This facility greatly enhances their chances of success.
This study is an evaluation of this scheme and provides a valuable feedback on the scheme’s
effectiveness, its shortcomings as well as offering some suggestions as to how its
administration can be improved. This it does through a critical analysis of the performance
of beneficiaries over a six-year period, identifies reasons for their failure and tries to address
concerns of the key players in the application of the scheme.
The major findings are that the scheme has not been as successful as expected. The biggest
problem seems to be the diversion of loan funds from their intended purpose. Rigorous
sustained training of contractors and monitoring of their progress in skills attainment is the
recommended solution. The Government’s intervention should also target other role players
in the industry for support including emerging suppliers and plant leasing companies, to
break down existing monopolistic structures.