building world class skills for botswana’s coal and energy sector

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Page 1 of 22 BUILDING WORLD CLASS SKILLS FOR THE MINERALS, ENERGY AND WATER RESOURCES SECTOR Richard Neill and Nancy Diphupu Human Resource Development Advisory Council 1 The need for World Class Skills The record of Botswana’s performance makes for impressive reading. The country is ranked as an upper middle income economy by the World Bank and it is consistently ranked by a range of global comparative international assessments as being amongst the top four African countries across a range of issues including good governance, lack of corruption and so on. The key underpinning of this record of achievement is based on Botswana’s natural resource endowment which has helped to guarantee its prosperity. The warning signs are however clearly evident that this may not be the case in the future. Diamond revenues, at the level that Botswana has enjoyed up to now, are clearly not forever and alternative engines of growth need to be developed if Botswana is to compete and prosper in the future. A new development path has been elaborated in a range of official policies and strategies including Vision 2016: long term prosperity for all(1997); the Botswana Excellence Strategy(2008); the National Development Plan 10(2010) and the Economic Diversification Drive.’ (2011) The new growth path that each of these policy documents lays out for the future of Botswana is for: diversification of the primary resource base and further down processing of the minerals value chain; development of the private sector to drive a diversified, export focussed, service led economy based on high value add manufacturing and knowledge based industries. The challenge to create this new Botswana is proving to be formidable and there is a growing consensus that it is the quality and performance of the nation’s education and skills development system that will be the tool to unlock the nation’s potential and drive the transformation agenda. Education and skills matter fundamentally for the economic and social health of Botswana and the challenges confronting us are difficult and complex. Notwithstanding the progress that has been made since independence and the considerable amount of investment made by the Government our nation’s skills are not world class and we run the risk of undermining the gains that we have made as a nation over the last four decades. Productivity continues to trail behind our peers and competitors and our unemployment rate is unacceptably high. The population is very young and large numbers with an enhanced educational profile are ready to enter the labour force. Technological developments are occurring faster than we dreamed dramatically altering the way we work. Globally competitive pressures on all sectors of the economy are increasing as manufactured goods and services are traded across the world. The current challenges confronting the education and skills development sector are systemic, universal, and need to be addressed through a holistic and root and branch 1 The authors wish to acknowledge Dr M. Powell who prepared the Technical Report for the HRDAC which informed this paper.

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Richard Neill – Director Operations and Projects, and Nancy Diphupu- Head SHRD Planning, from the Human Resource Development Advisory Council (Botswana) has presented at the Botswana Coal and Energy Conference. If you would like more information about the conference, please visit the website: http://bit.ly/13MkVsy

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Page 1: Building World Class Skills for Botswana’s Coal and Energy Sector

Page 1 of 22

BUILDING WORLD CLASS SKILLS FOR THE MINERALS, ENERGY AND WATER RESOURCES SECTOR

Richard Neill and Nancy Diphupu

Human Resource Development Advisory Council1

The need for World Class Skills

The record of Botswana’s performance makes for impressive reading. The country is ranked as an upper middle income economy by the World Bank and it is consistently ranked by a range of global comparative international assessments as being amongst the top four African countries across a range of issues including good governance, lack of corruption and so on. The key underpinning of this record of achievement is based on Botswana’s natural resource endowment which has helped to guarantee its prosperity. The warning signs are however clearly evident that this may not be the case in the future. Diamond revenues, at the level that Botswana has enjoyed up to now, are clearly not forever and alternative engines of growth need to be developed if Botswana is to compete and prosper in the future. A new development path has been elaborated in a range of official policies and strategies including ‘Vision 2016: long term prosperity for all’ (1997); the ‘Botswana Excellence Strategy’ (2008); the ‘National Development Plan 10’ (2010) and the ‘Economic Diversification Drive.’ (2011) The new growth path that each of these policy documents lays out for the future of Botswana is for:

diversification of the primary resource base and further down processing of the minerals value chain;

development of the private sector to drive a diversified, export focussed, service led economy based on high value add manufacturing and knowledge based industries.

The challenge to create this new Botswana is proving to be formidable and there is a growing consensus that it is the quality and performance of the nation’s education and skills development system that will be the tool to unlock the nation’s potential and drive the transformation agenda. Education and skills matter fundamentally for the economic and social health of Botswana and the challenges confronting us are difficult and complex. Notwithstanding the progress that has been made since independence and the considerable amount of investment made by the Government our nation’s skills are not world class and we run the risk of undermining the gains that we have made as a nation over the last four decades. Productivity continues to trail behind our peers and competitors and our unemployment rate is unacceptably high. The population is very young and large numbers with an enhanced educational profile are ready to enter the labour force. Technological developments are occurring faster than we dreamed dramatically altering the way we work. Globally competitive pressures on all sectors of the economy are increasing as manufactured goods and services are traded across the world. The current challenges confronting the education and skills development sector are systemic, universal, and need to be addressed through a holistic and root and branch

1 The authors wish to acknowledge Dr M. Powell who prepared the Technical Report for the HRDAC which

informed this paper.

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approach. The fundamental challenges have been identified through a range of policies, plans and strategies over the last two decades. The key challenges are:

deteriorating learning outcomes (quality);

deteriorating labour market outcomes (relevance)

Despite success in increasing enrolments across the entire education system the most important challenge is the low and declining quality of the education provided. The declining academic achievement at both primary and secondary education levels as witnessed in the 2012 and 2013 JC (Junior Certificate) and BGCSE (Botswana General Certificate in Secondary Education) results has raised a high level of concern by Government which has demanded urgent change. Declining academic performance in the general education system and a rapid increase in tertiary education enrolments since 2007 inevitably means that a large number of unprepared students are entering tertiary education institutions who are bound to struggle with the more sophisticated and abstract learning demands of this level of education. From an international perspective the small proportion of Batswana students achieving only the lowest level benchmark in maths and science highlights the urgent need for the education system to focus its resources on improving learning achievement. In sum while great strides have been made in improving access this has clearly been at a cost affecting the quality of learning outcomes throughout the system. Alongside poor learning outcomes the education and training system is also characterised in term of poor labour market outcomes. Employment data shows that increasing numbers of young people aged 15-24 years with a higher level of educational attainment than their parents are classified as long term unemployed. A growing number of youth are neither in education, training or employment; employers are complaining about the lack of an appropriately educated and skilled workforce with the private sector in particular putting pressure on Government to relax the issue of work permits in order to recruit migrant workers. With a growing number of educated youth not being channelled into the workforce Botswana faces major structural disconnect between the education system and the labour market which has a consequent negative impact on economic growth and has the potential to cause social unrest. With the Government’s approval of the ‘National Human Resource Development Strategy’ (2009) there is recognition that in order to transform the nation to the next stage of development it is of critical and strategic importance to grow and develop the country’s most significant natural resource – its people whose potential is both untapped and vast. In sum the implementation of the Botswana of tomorrow will depend almost entirely on the skills and knowledge of its people. The prize for Botswana will be enormous – higher productivity, economic diversification, the creation of wealth, long term prosperity for all and societal transformation and social justice. In sum skills development is the most important lever within our control to create wealth and ensure the long term prosperity of our people. The Government has entered into a major undertaking to implement the ‘National Human Resource Development Strategy’ (2009) which commits the nation to a vision that ‘by 2022 it will be universally accepted that the quality, productivity and motivation of its people will be Botswana’s most valuable

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resource,’ a vision that we must all embrace to guarantee the long term prosperity of Botswana. The Minerals, Energy and Water Resource Sector

The Minerals, Energy and Water Resource (MEWR) sector is a key component in supporting Botswana’s economic and social well-being. Within NDP 10 the government’s aim is to formulate, implement and coordinate policies for the improved provision of minerals, energy and water resources. The MEWR sector has made a major contribution to Botswana’s development over the past decade, both in terms of GDP growth, employment creation and the improvement of the general wellbeing of the people.2 Table One below depicts the contribution of the sector to GDP for the period 2001 – 2011. Mining contributed 45% in 2001, with a steady decline over the years as a result of diversification from mining. In 2009, the mining contribution was at its lowest at 26.1, a result of the global economic recession that affected the sales of minerals, especially diamonds. The subsequent years show the recovery period post-recession. The Water and Energy sub-sector has had a minor growth since 2001. This is because they are basic needs and as such are not as profit intensive as compared to the mining subsector. Table 1: Contribution to GDP

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mining 45.0 42.0 36.3 37.1 38.0 42.5 40.8 40.9 26.1 31.2 32.3

Water & Energy

2.0

2.3

2.4

2.5

2.4

2.5

2.7

2.6

2.9

2.8

2.8

Total 47.0 44.3 38.7 39.6 40.4 45.0 43.5 43.5 29.0 34.0 35.1

Source: CSO

As illustrated in table 2 below the sector is changing. Despite the gaps in the data it is possible to see that the production of diamonds is expected to remain fairly constant until 2015, with some commentators expecting a significant decline after this period. This is in contrast with the significant growth in production that can be expected in the fields of coal with a doubling of output expected over a five year period, and copper where levels of production are predicted to increase from a base of 19,800 tonnes in 2008 to 72,500 in 2015. Table 2 Production and forecasts for Botswana’s Mining industry in ‘000 tonnes

Sub-sector 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Copper 19.8 23.6 25 25.4 29 48.5 61.1 72.5

Diamonds mc carets

31.8 34.3 33.6 34.2 17.7 30.8 32.4 33.2 33.7 34.4 35.1

Hard coal mn. tonnes

1.15 1.19 1.23 1.30 1.43 1.63 1.85 2.11

Nickel 20.8 22.8 25.7 21.9 22.9 23.8 24.6 25.6 26.7

PotAsh 279 255 279 263

Platinum (000 ounces)

24 19 17

Palladium (000 ounces

152 95 100

2 Republic of Botswana, National Development Plan 10, 2009

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The demand for skills is a derived one and it is important to have an understanding of the factors driving change in order to predict the future directions that the sector may be taking and what skills will be required in the future.

Within each of the three sub-sectors (minerals, energy and water resources) there are significant changes that affect the way they operate. In the mining sector emphasis has been given to diversification on a number of levels. One of the measures for supporting diversification has involved the establishment of Gaborone as a diamond hub, in an attempt to move the sector up the value chain and to improve the added value of diamonds. There are also structural shifts occurring within the mineral sector and in the near future, coal will contribute significantly to the country’s GDP. Other changes occurring within the mineral sub-sector include the need to address citizen empowerment and the growing importance of health and safety. Diversification The most significant political driver of change stems from the country’s Vision 2016 and the recently developed strategic plan 2009-2016 for minerals, energy and water resources. At the heart of the Vision 2016 are the two key result areas: (a) sustainable economic growth and competitiveness for diversifying Botswana’s economy and (b) a well-developed reliable infrastructure and institutions. There are a number of important dimensions that need to be taken into account in the move towards a sustainable and diversified economy with a developed infrastructure. First and perhaps most significantly is the diversification that occurs horizontally within the sector, particularly when a certain sub-sector will contribute more to employment and growth than another sub-sector. Secondly, and perhaps of more importance, is the movement up the value chain in the sector or sub-sector. Within the diamond sector an attempt is being made by the government of Botswana to move the industry up the value chain. This is part of the government’s strategy within NDP10 to facilitate the diversification of the diamond industry. As part of the diversification drive and to increase production of value-added goods within the mining sector, the Botswana Diamond Hub was established with support from the government to provide a diamond trading centre for rough and polished diamonds, as well as establishing downstream industries (cutting, polishing and jewellery manufacturing). To achieve this there have been companies formed, creating roughly 3,000 jobs.3 In 2011, DeBeers and the Government of Botswana announced that they had agreed to shift DeBeers’ aggregation and sorting operations from London to Gaborone by 2013, effectively making Gaborone the major sales point for the company’s diamonds. This will bring additional jobs to Botswana and may entail additional opportunities for diamond cutters, polishers and jewellers.4 There are possible implications for further jobs in downstream industries, particularly in security and finance. This movement up the value chain will add value to the production process and ensures that wealth is produced within Botswana, as opposed to overseas. A final dimension

3Republic of Botswana, National Development Plan; 2009

4http://www.debswana.com/Pages/Welcome.aspx

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relates to a strong infrastructure and related sectors within the value chain, all of which are also important to ensure the country moves along the path of diversification and sustainable growth. Amongst the most important anticipated changes associated with diversification and sustainable growth in the mineral sectors are shown in Figure 1 and cover the following features. Within the primary sector significant changes relate to the growth and relative decline of certain sub-sectors. The most significant changes include: the structural shifts from diamonds to coal, and to a much less extent copper and other minerals. Within the water sector a sub-sector that will be given increasing importance is that of sanitation, particularly in the light of government policy to shift responsibility to the water utility board. This means there will be an increased demand those at the national level for professionals who can deal with water purification and treatment, and at the domestic level this will translate into a demand for plumbers, pipe fitters and associated trades. In the energy sector the anticipation emphasis is more on sustainability and on greener energy forms. The sustainability aspects centre on the setting-up of more power plants, possible based on coal, while greener forms of energy would encompass solar and bio-gas. The development of human resources must reflect these changes, ensuring that provision can be proactive and facilitate change. For diversification into secondary markets a number of anticipated movements up

the value chain can be expected. Amongst the most well-known is the need to develop skills to support the establishment of a diamond hub, including those associated with the polishing and marketing of diamonds, and to a lesser extent jewellery making. At the heart of this process will be the transfer of De Beers sorting, valuing and selling activities from London to Gaborone. This will involve the transfer of around 250 people from London to Gaborone with the impact on the local job market not yet known. Other related skill areas cover those related to the cleaning and washing of coal, as well as skill areas that help produce methane from coal. At the tertiary level, emphasis must be given to the higher level skills associated with the transition to a knowledge based economy in the sector. The most noticeable skills surround senior management and consultancy, including those associated with feasibility studies, project planning and those related to raising venture capital. There are other science, engineering, technology and other management related skills associated with support services. Equally significant is the need to take into account those skills associated with the support services. A number of changes are occurring in the energy and water sectors

and they will have significant HRD and also HRM implications. The most important of these include the organisational changes occurring in the water utilities and the setting up of new structures.. Similarly, changes are occurring in the energy sector, including those associated with renewable energy and expanding output, all of which will have implications for the additional and skill sets. However, within the mining sector there a number of support services that are likely to grow over the next 5 years, particularly those associated with the diamond hub. Examples of these include the growth of security and also banking services.

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Figure 1: Skills and the Sector Value Chain

Tertiary

Knowledge and Skills

Important issues:

• move from

diamonds to

coal and other

minerals. • The increasing

importance of

sanitation • The movement

towards greener

energy sector

Primary Single Base level Industry Focus

Most important movements up the value chain, including the following:

1. The setting up of

the diamond hub

and the

polishing/marketi

ng 2. The manufacture

of methane 3. The cleaning and

washing of coal

Secondary

Diversified Product &

Market

High end skills within the sector , particularly those associated with knowledge based activities. Examples include management and consultancy skills related to feasibility studies, project plans and management

Support Sectors in value chain

The setting-up of the diamond hub will increase demand for security services and other related services, ICT, support services housing etc

Significant organisational structuring in the water sector and the move towards the expansion of existing energy forms, as well as the development of new ones

Skill Needs

Infrastructure

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7

From Diamonds to Coal Diamonds have been the mainstay of the country’s economy since their discovery in 1967, contributing 60.8% of total exports in 19805. As outlined earlier, the government, through the Debswana Diamond Company, owns four out of the five major mines6. However, the sub-sector is experiencing significant changes, the most noticeable being the reduction in the current reserves and the actual costs associated with mining diamonds. Following the reduction in reserves the mining companies are beginning to shift operations from open cast to deep mining. An example of this project is Cut 8, which has resulted in the Jwaneng pit going to a depth of over 800metres. Currently, Jwaneng is mining to a depth of 350metres and is expected to reach 624 metres by 2017. The project will now see the life of the Jwaneng mine extended by a further 7 years, ensuring continuous production until approximately 2024.7 Other minerals attracting interest within Botswana are copper and nickel. The

production of copper started in the early 1960s and it was only in the late 1960s that high grade copper was produced by Bamangwato Concession Limited (BCL), of which the government of Botswana owns 33% of the shares. Other important operations include the Mowana mine, which is Botswana’s only pure copper mine and 100% owned by Africa copper. Elsewhere the company Discovery announced a further 46% increase in the total inferred resources within the Maun Copper Project. Africa copper is increasing recoveries of copper at its Mowana mine and ASX-listed Discovery Metals are planning to implement a large scale project at Boseto mine, situated 100 km from Maun8. The production of nickel is attracting increasing interest in Botswana due to the rising prices on world markets. One of the most significant operations is the Tati project which has recently increased production by 20,000 tonnes per year. Another important development is the Tati Activox Growth project which is expected to increase nickel production to 43,000 tonnes per year. The interaction between the copper and nickel sectors and the energy sector is important to highlight. The production of these two minerals, require a considerable amount of power to produce the final product. For instance, BCL consumes a considerable amount of electricity, which amounts to just under 20% of the country’s total usage or 43% of Botswana Power Corporations own power generation. It is also a main consumer of the coal produced by Morupule Colliery Limited.9

Other minerals important to Botswana include soda ash, uranium and what is termed as “other mining”. There is a considerable global demand for potash, the majority of which is used as a product in the glass industry. The large mine for this mineral, named Botswana Ash has a productive capacity for soda ash of 500,000 tonnes per annum and an even greater 650,000 tonnes of salt per annum. The demand for potash exceeds the current supply, but this is not the case for salt. The potential for uranium production in Botswana is not known. Nevertheless, given the success of Botswana’s

5 Republic of Botswana, National Development Plan 6; 1985 6 The four major mines being: the Orapa mine, the Lethakane mine, the Lerala mine and the Jwaneng mine 7http://www.debswana.com/Pages/Welcome.aspx

8 See: www:miningmx.com/news/markets/Botswana

9http://www.bcl.bw/index.php?id=2

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neighbour, Namibia, in the exploration and mining or uranium, this has resulted in extensive exploration taking place in eastern Botswana and the discovery of deposits. The main challenge facing this sector is seeing through the sand cover. Despite these challenges, advances in exploration are taking place. Other minerals that could be expected to grow in Botswana include platinum and palladium, but production levels will start from a much lower level than the other minerals mentioned above. The overall expected composition of the mining sector and how it will change over time is shown in Figure Two. This outlines the structural shifts that are expected to occur in the mining sector over the next 10 years, including the transition from diamonds to coal and other minerals. The shift to coal is of great importance to Botswana is coal and it is estimated that, after South Africa, Botswana has the largest reserves in Southern Africa. Currently, Botswana only has one operating mine, the Morupule Mine, of which 93% is owned by Debswana. This mine is comprised of four main streams, out of which only the first is being mined. The estimated production of coal from this project over a seven year period will be around 891, 00 tonnes per year, with an estimated reserve of 5,080 Mt of coal. There is clearly un-tapped potential in Botswana for using coal as a source of fuel for power stations, as well as export. In the first of these areas, the Toronto-limited company LIC Energy is developing a power station with an integrated coal mine through the Mmamabula Energy project. This move must be seen against the large demand for electricity in Southern Africa which is expected to increase substantially over the next five years in response to rising domestic and commercial demand. The process of exporting coal from Botswana is complex. Given that current deposits have levels of ash and sulphur, it is not possible to export the coal without further washing and cleaning. The department of Energy Affairs undertook a beneficiation study, which led to the construction of a coal wash plant in 2007 by Morupule Colliery. This enabled the Colliery to expand its client base by supplying washed and improved quality coal. The situation facing the coal sector is made more complex by the fact that improved infrastructure is required to transport coal to the export market. Recently, a feasibility study has been undertaken for building a railway to transport coal and to decide whether this should run to the coast in Namibia, or to Maputo in Mozambique. A decision will be made soon on which is the most cost effective route. Many of these issues are explored in other sections. Another important bi-product of coal that needs to be highlighted is methane gas. A recent exploration has discovered coal-bed methane gas in the north eastern part of the country, estimated by the developers as a commercially viable quantity of 12 trillion cubic feet. Development of the gas fields has however been slow. According to Botswana Chamber of Mines, five companies are in the process of exploring for the coal-bed methane and two are in the feasibility stage. These companies have identified vast coal deposits and are waiting for the construction of the rail line that will be used in transporting the coal, mainly to China.

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Figure 2: Sub-sector outline of the mining and mineral sector in Botswana

Exploration Pre-feasibility

Feasibility & BFS

Project Financing

Development Production Closure

KSE

Gope

D

Diamonds

MEP

AK06

BK11

Coal

BK16

CBM

Tlou Energy

Bosetu

Dikoloti

Cu/Ni

Kihabe

Zn/Pb

ACAP

Uranium

Nata Energy

Anglo Coal

Asenjo

Rainbow Gas and Coal

Hana

Matshitama

Damtshaa

Orapa

Jwaneng

Mowana

BCL

Tati Nickel

MCL

Botash

Soda Ash & Salt

Lerala

Mupane

Gold

Tsabong

Aviva

Letlhakane MCL-expansion

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The Skills Demands of the Sector Given the changes that are occurring within these three sub-sectors it is important that the appropriate skills are available in Botswana, of the desired quality to facilitate the changes and restructuring identified above, and to ensure that no bottlenecks occur in production or delivery due to skill shortages or gaps. The only information available for tracing how skill levels have changed in the sector was obtained from the labour force surveys undertaken in 1995 and in 2005. This provides perhaps one of the best and only indications of the relative changes in skills levels within the sector10. When looking at the trends overtime it is useful to compare trends between the MEWR sector and those of the whole economy (see Figure 3). The following trends were evident:

Within the whole economy, excluding the MEWR sector there has been a reduction in the proportion of lower skilled workers over the 1995 to 2005 period.

Similarly, within the economy there has been a rise in the proportion of medium

and higher skilled workers over the same period, suggesting that overall

Botswana is becoming more highly skilled.

For the case of the water and electricity sub-sectors this follows a very similar

trend to the national economy, in that the proportion of low skilled workers is

decreasing and at the same-time the proportion of medium and highly skilled

workers is rising.

The data for the mining sector shows a very different picture. Over the 1995 to

2005 period there is only a very slight reduction in the proportion of low skilled

workers in the mining sector. This would suggest that minimal changes in skill

levels have occurred in this sub-sector.

Figure 3 Changes in skill levels

10

This data was analysed according to the categories of highly skilled, medium skilled, skilled and low skilled. The category of high skill covers the following occupations: legislators, administrators and managers, and also professionals. The medium skilled occupations refer to: technicians and associated professionals, clerks, service workers and skilled agricultural and related workers. The skilled occupations covered plant and related trade workers and machine operators. Finally, the low skilled occupations consists of elementary workers and agricultural and related labourers.

Mining 1995

Mining 2005

Water and Electricity 1995

Water and Electricity 2005

Other sectors 1995

Other sectors 2005

0 20 40 60 80 100

Highly skilled

Medium Skilled

Skilled

Low skilled

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Another form of skill gap could exist in relation to how the skill levels within the mining sector in Botswana compare to other resource based economies. Given the move towards a knowledge-based economy and the acquisition of skills it is important that Botswana has comparable skill levels with similar resource based economies. Data was available on the skill structure of the work force for the following countries: South Africa, Namibia and Canada and is shown in Figure 4. This data was obtained from each of the country’s labour force surveys and reveals a number of important trends. On the positive side the skill level of the work-force in Botswana’s mining sector is higher than that of neighbouring South Africa. The proportion of highly-skilled and skilled workers is much higher in the Botswana mining sector than in South Africa. On the down-side the skill levels amongst workers in Botswana are much lower for workers in the mining sectors than in Canada and Namibia. What is worrying is the fact that the skill level of workers in the Namibian mining sector is considerably higher than those in Botswana.

Figure 4: A comparison of skill levels in the mining sectors for mineral based economies

The evidence contained in the demand side analysis undertaken by the Human Resource Development Advisory Council points to the following conclusions. At the most broad level it is clear that Botswana has a significant gap that needs to be closed in the areas of poor work ethic and inadequately trained workforce, particularly when compared to other countries. Closing this gap will require preparation of work ready skills and an improvement in quality at all levels of the formal and tertiary education systems. The sector is also relatively low skilled and dominated by employees in lower level occupations. Which when compared to other mineral economies the skill levels tend to be much lower, suggesting that skills levels in the country do need to be raised. The HRDAC analysis has also identified the specific skill requirements for the sector that are in demand are shown in Table 4 below.

Namiba - 2008

Canada -2012

Botswana - 2005

South Africa - 2010

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Highly skilled

Middle Skilled

Skilled

Low Skille

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Table 4: List of skills that are in relatively high demand for the Minerals, Energy and Water Sector

Skill area Work readiness11

Occupational Area Occupation Cross cutting skill area

High skill Area Work readiness and work ethic across all occupational levels

Legislators, administrators & managers

Directors, waste water and treatment engineers, mining engineers, mechanical engineers, electrical engineers, commercial managers, HR managers, financial managers, project managers, rock blasting engineers

Managing HIV/AIDS, understanding legislation and project management, organisational development reporting writing and evaluation skills

Middle level skills

Technicians and associated professionals

Water treatment technicians, sanitation technicians, accounting technicians, bio gas technicians, rock blasting technicians, CAD technicians, air condition technicians, electrical technicians, mechanical technicians, electronic technicians

Industrial relations, health and safety

Low skill levels

Clerks, service workers, skill agricultural &related workers, craft and related workers, plant and machine operators

Heavy plant operators, cleaning and washing of coal, security officers, bank tellers,

Literacy and numeracy

Un-skilled Elementary occupations

Mining and quarrying labourers , construction and maintenance labourers, assembly and packing labourers

11

Note: work ready skills can be defined as the foundational level skills, the so called core or key skills, personal attributes deemed to have a market value, knowledge about how organizations work and how people in them do their jobs”

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Developing Skills for the Sector In the Minerals, Energy and Water Resources (MEWR) sector, it is essential that employers are supplied with the type and level of skills identified in the scarce skills list (Table 5.2). It is also important to ensure that these skills are of a desired standard that is recognised both nationally and internationally. Only through responding to such needs is it possible to ensure that the MEWR sector is provided with the skills to support improvements in productivity and the technical innovation that is occurring within the sector.

There are broad policy frameworks within human resource development and

education and training that influence the supply of skills to the MEWR sector. These

frameworks must be considered in the context of Vision 2016 and include the

National Human Resource Development Strategy, of which the HRD sector plans

are a key part. Other important frameworks for the development of the sector plans

are the National Development Plan 10 (NDP 10), the revised National Policy on

Education (RNPE, 1994), the Vocational Training Act (1998), the Ministry of

Education Strategic Plan 2011 – 2016.

Within the formal education system, the Revised National Policy on Education (1994) remains the blueprint in Botswana for improving efficiency and effectiveness of education and training’s outcomes, especially in response to the following objectives that are relevant to the supply of skills:

To raise educational standards at all levels;

To make further education and training more relevant and available to larger

numbers of people; and to provide life-long education to all sections of the

population, ensuring that employers have the work ready skills.

The Botswana Training Authority was established by the Vocational Training Act (1998). The Act effectively places all policy and quality assurance requirements under the supervision of BOTA. Over the past 8 years a number of tracer studies have been undertaken (BOTA 2005, 2010 and CITF 2006). The main findings (from industry’s perspective) suggest some possible skills mismatches between what was taught and what was expected by industry and also raised some quality issues. It is worth noting that most graduates rated their training highly. With a broad front of change and expansion occurring over many years, the education system is feeling the pressure of maintaining both the efficiency and effectiveness of the stated outcomes. It is evident through the many reports, reviews and tracer studies that the issue of quality in the provision and achievements of targets and outcomes continues to be a major challenge for the education and training system in Botswana. Great gains have been made, but as access to education and training has increased, the quality of the outcomes have become increasingly under question. This is evident in recent students’ performance in summative examinations (particularly the JCE and BGCSE), in employers’ feedback

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and also in global measures where data is available (e.g. international comparisons of mining economies). Over the past ten years, tertiary education has experienced a proliferation of private institutions offering a range of certificate, diploma and degree courses, particularly (but not only) in business studies, secretarial and computing courses. This has underlined the need for government regulations and mechanisms to try to ensure quality, but much remains to be done. The Botswana Credit and Qualifications Framework (BCQF) will be an essential tool in promoting quality and life-long learning, but remains to be completed. The managing body for the BCQF, the Botswana Qualifications Authority (BQA) is also in development. Its implementation, as a key organisation to support human resource development planning is a vital addition to the management of many of the quality elements relating to education and training outcomes (i.e. unit standards and qualifications) in Botswana. An analysis of the HRD supply side undertaken by the Human Resource Development Advisory Council for the Sector has identified the following:

There is an overriding problem with the quality of existing learning that is

evident at all levels. This is most evident in the poor work ethic and

inadequately trained work-force in Botswana, particularly when compared to

other countries;

Craft and technician level skills used within the mining sector are transferable

from one sub-sector to another sub-sector of mining, as well as outside of the

mining sector. This would appear to suggest the majority of workers in the

coal mining subsector can make the transition to other mining sub-sectors or

areas of employment. The overall evidence should appear to suggest that

there will be a continual demand for quality workers at the professional and

technician level, but these qualifications must have a recognised value and

provide the person with work ready skills.

With the improvements in the Zimbabwe economy and the expansion of the

country’s diamond sector, this could result in a significant number of

Zimbabwean workers returning home. There is no doubt that this hidden or

latent demand will create serious shortages in the future unless it is tackled.

There are not a lot of expatriate workers, but given the small number working

in the sector every person leaving could impact negatively on the workplace

and a reduction in a few numbers could create bottlenecks in production

unless they are tackled.

More specific demand for workers in the mining sector will occur with the

movement towards deep shaft mining and the increased demand for rock

blasting engineers and ventilation technicians.

Other new demands will relate to laser technicians associated with the cutting

of diamonds, but this is not expected to be large. There will also be a small

demand for polishing and jewellery making

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Other more generic skills that are in high demand in the sector include those

associated with project management, as well as other skills associated with

commercial management and finance. These skills can be expected to be

significant as there will be an increase in the numbers of small to medium

sized companies. Another important generic skill set in demand relates to the

area of Health and Safety.

There will also be an expansion in demand for certain skills associated with

down-stream industries, particularly those associated with the setting up of

the diamond hub in Gaborone, including those related to finance and security.

However, this demand is not likely to be large since the number of new jobs

being created is likely to be low.

In the case of electricity and water, the number of workers in these sectors is

small. Nevertheless, the most significant demands include project

management and HRM, particularly those skills associated with the

organisational restructuring occurring in the sector. Other significant demands

are likely to occur as a result of the setting up of the new turbines associated

with the increased generation of electricity, prompting a demand for

mechanical and electrical engineers, as well as technicians

Other skill areas that may become might important over the longer term

include the green jobs, including those associated with solar energy and

possibly the establishment of bio-gas plants. This would include photovoltaic

installers and technicians.

There have been issues raised in each of the main supply source areas that provide challenges for the MEWR sector in obtaining the knowledge and skills that they require to both improve and maintain their operations. The Human Resource Development Council is recommending a comprehensive range of strategic interventions as detailed in Table 5 that can be implemented in both the short (1-2 years) and medium to longer term (3-5 years). The recommended interventions affect all of the main supply areas i.e. formal education, tertiary education and workplace up-skilling, re-training and staff development programs. Decisions will need to be made by the sector (through the Sector Committee) on priorities that are best addressed through partnerships with other agencies (e.g. education and training bodies). The most important priority for the sector is to meet the supply of high demand skills (as outlined in Table 4) and thus this is included as the first recommendation. The planned interventions are intended to be strategic in as much as it outlines actions that can be incorporated into existing planning structures where on-going improvement is the aim. It is also dynamic in that it should be reviewed and added to in further versions of the sector plan as other issues and challenges arise.

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Table 5: Recommended short term and medium term strategies to address key challenges faced by the mining sector in the supply of skills

Area Challenges Recommended short term strategies Recommended medium-longer term strategies

High Demand Skills for the MEWR sector

High demand skills required by the MEWR sector need to be supplied. The skills span from High to Unskilled levels and include the supply of scarce skills that are a matter of priority.

Through the Sector Committee (SSTF):

Develop unit standards and/or explicit learning outcomes for each of the scarce skills;

Build curriculum around unit standards/learning outcomes;

Design qualifications at appropriate levels (knowledge, skills & achievement);

Obtain validation of the qualifications;

Decide delivery points for the training and work in partnership to develop skilled people (MEWR – education partnership)

In partnership with the Botswana Qualifications Authority (BQA) continue to monitor the quality and relevance of both existing and new qualifications. Make decisions on whether they are providing the necessary skills and numbers of trained people for the industry. The short-term strategy needs to be applied each time there is an identified need for new or revised skills

Formal Education

With increased access, this is affecting the quality of student performance and progress

There is no “quick fix” to improving the quality of educational outcomes. Attention needs to be given to addressing the elements of quality in combination i.e. leadership, teacher qualifications and experience, curriculum relevance, career advice, etc. For example, short term measures to improve the quality of education and training include:

merit selection of leaders, teachers and trainers

giving school leaders the resources and holding them accountable

MEWR sector-education agreement on support strategies for schools and teachers

Disseminating best practice and promoting centres of excellence

The new Education Sector Strategic Plan (ESSP) provides the main vehicle for addressing and improving all aspects of quality in education. The issues of quality raised by mining sector representatives need to be considered and where deemed to be longer term priorities, included in the ESSP. These quality issues include:

Leadership that is focused on teaching and learning;

Up-grading teachers’ and trainers’ qualifications and gaining experience that is relevant to industry;

Curriculum that provides the essential learning experiences as building blocks for courses and qualifications that are built to deliver on industry skills and standards; and

Institutional planning that is focused on the quality and improvement of student outcomes

The emphasis of secondary school is primarily on academic subjects

Develop an alternative stream that allows students to commence TVET courses in senior

Use pilot programs to decide whether the TVET stream c/should be expanded to only selected

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secondary (Form 4). Align courses to existing BNVQF (and eventually the BCQF). Develop a pilot(s) program in scarce skills courses e.g. Heavy Plant Mechanics (Certificate, BNVQF Level 1. Support technical skills development with life skills, entrepreneurship and other work readiness skills. Location of program needs further discussion

schools or if it is feasible as a system-wide model. Consider variations such as school + adjacent Brigade: senior secondary + technical college built on same campus. TVET option needs promotion and careful planning to consider issues such as image of TVET, industry standard equipment, specialised staff, work attachments, required modifications to current courses, etc.

There are skills gaps that need attention through the curriculum

The MEWR needs to be specific about the skill gaps that are of concern in the current curriculum (this applies equally to both the secondary and tertiary curricula). The best forums for this are the MEWR Sector Committee, the current SSTFs and the Botswana Qualifications Authority (eventually). Unit standards need to be turned into training standards or specific learning outcomes (when dealing with the higher tertiary levels - degree and above)

The forums that are already in place (or that are soon to be (e.g. the BQA) need to include a focus on curriculum relevance and flexibility as a continuous process. Skills development required by the MEWR sector is constantly changing as new equipment and improved processes are developed. Some qualifications will therefore be more appropriate for adaptation than others i.e. they address most of the skill needs at the right skill level. The BQA is in the business of constantly reviewing qualifications.

Implement the planned teacher training reforms to upgrade the qualifications of teachers

The plans for raising of entry levels, expanded course lengths and qualifications required for teachers at all levels of the formal schooling system need to be immediately implemented. The DTEF local sponsorship program needs to be used to continue up-grading and professional development activities. Teachers College’s staff (especially TVET and secondary) need to be recruited on the basis of industry experience as well as higher qualifications

The forthcoming ESSP should include leadership and teacher/trainer quality improvement programs as a priority. These programs should be linked to increased responsibility as well as increased accountability with suitable incentives (e.g. remote teaching allowance, promotional and transfer opportunities) provided wherever possible. Salary increases need to be linked to improved productivity in educational terms e.g. provision of more remedial support, extension classes for academically capable students, developing school enterprise programs.

Secondary teachers need more current and relevant skills to support the MEWR sector

Create opportunities for industry knowledge and skills transfer through formal and informal interactions with MEWR organisations and operations. Initiate a Teacher in Industry Placement Scheme (TIPS) that provides short-term placements in industry to work shadow or receive mentoring from MEWR training officers

The MEWR sectors plans to use Francistown and BCET as training sites provides an ideal opportunity for TIPS to be developed. Pairing teachers with industry counterparts will assist knowledge and skills transfer through structured work experiences. Where possible, other unrestricted sites could provide the same opportunities. Support for MEWR to develop

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or technical staff this program would be required e.g. concessions for working resident permits to be granted

Tertiary Education

The quality of some courses is low and not providing the scarce skills required by the MEWR sector

This is similar to the issue raised previously about the relevance and flexibility of curriculum and the courses developed from it. Again, the MEWR sector needs to be as specific as possible about the scarce skills required and to work through the established (and re-vitalised) forums to achieve the changes

Once established, the BQA will provide on-going monitoring of the relevance of qualifications for the purposes for which they were established i.e. the qualification can be deemed to be “fit for purpose”. The BQA will also work closely with sector committees to attend to issues of quality and skill shortages

Technical teachers need more current and relevant skills to support the MEWR sector

This is a similar issue to that raised previously regarding secondary teachers. However, this is a more important group to have recent industry experience to draw upon. The TIPS program also applies to this group, but there is a difference to secondary teachers. Most tertiary institutions should include a component of paid leave in their staff contracts for compulsory industry experience. This provides opportunities for current knowledge and skills to be acquired, with industry cooperation.

This issue requires attention through the registration of providers and the quality assurance processes that apply to their on-going operations as a training body. The provision of opportunities for staff to obtain current industry based experience should be part of a provider’s registration requirement and part of a staff member’s contract. This will require changes to current quality assurance processes i.e. registration of providers, accreditation (and eventually, once the BCQF and the BQA are in place) validation of qualifications

The National Internship Program needs re-focusing to provide more work readiness skills

A review of the NIP has just been completed (February 2013) and a policy is being developed. The policy will reflect the need for more of an education and training focus for NIP and the development of specific skills, including and especially, work readiness skills.

Linking the work of the NIP to an education and training provider is both a short term and longer term goal. The longer term aspect is the development of programs that will benefit NIP participants as well as meeting the MEWR sector’s (for example) needs. Inclusion of the NIP in the ESSP will help promote its importance as an education and training program

The MEWR sector requires more practical skills development included as part of tertiary courses

This relates to the comments made previously about curriculum relevance. The MEWR sector needs to be very specific about the skills that need to be included in specific courses at different levels leading to qualifications. The forums for achieving this are the Sector Committee, the SSTFs and eventually the BQA (who will have strong industry representation in many of their processes)

Once established, the BQA will provide on-going monitoring of the relevance of qualifications for the purposes for which they were established i.e. the qualification can be deemed to be “fit for purpose”. The BQA will also work closely with sector committees to attend to issues of quality and skill shortages

Industry-education forums need The MEWR sector has a number of existing There are longer term changes that will be created

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revitalisation e.g. sector committees, SSTFs

forums for making representation to and partnering with the education and training system. It will be important in both the short and longer term to keep the focus on quality of supply and improved outcomes for the benefit of all.

through the establishment of new bodies, e.g. the HRDC, the BQA. The existing industry-education interactive functions will not be lost and in fact there are opportunities for enhancement of these given the extra powers and greater focus on industry needs

Labour Market

The VTF is being underutilised by employers as a resource to assist workplace training

The BOTA review (2011) of the VTF provided a recommendation to increase the scope of training activities allowable under the VTF’s rules i.e. allow training at higher levels and increase the type of training. This is currently being positively considered and needs implementation as soon as possible

The VTF, with 11 000 contributing companies (including many from the MEWR sector) has the potential to provide the most relevant workplace-based training in Botswana. The use of the funds to improve skill shortages should also involve the education and training sector, both as recipients and suppliers. The industry-education partnership can be further strengthened through the prudent use of the VTF.

The plans for workplace-based qualifications, National Vocational Qualifications (NVQs) have not been completed

The MEWR sector, with training arms already in place in the larger companies, has the opportunity to develop the first NVQs in Botswana. A pilot program should be established once the BQA is in place.

This may also be a longer term strategy, depending on the establishment of the BQA. Although it is not critical to have the BQA in place to proceed, it will be an important facilitator and supporter for the development and recognition of workplace-based qualifications.

Current up-skilling and staff development short courses run by the large mining companies are not linked to formal qualifications

Credit is currently provided for all accredited BOTA short courses and part awards. It is possible to build a relevant qualification (based on scarce skills as part of the award) using current training programs run by mining companies. It would be possible for the mining company to partner with a TEI to provide the remaining course content leading to a qualification

This is another situation that is best managed by the BQA. In the meantime, the MEWR sector committee could work with BOTA or TEC to develop a model that allows workplace-based training to be linked to an existing or modified qualification – that meets the MEWR sector’s needs for high demand skills.

Difficulties in obtaining worker resident permits are both slowing and restricting the flow of skilled labour into Botswana

There is a level of frustration in the MEWR sector regarding the difficulty of getting worker resident permits for skilled labour. While it is important to be developing local people’s skills, it is necessary for external skills to be allowed in the interim. Some concessions need to apply here, especially when the MEWR sector are

This is not per se an education and training issue. However, where cooperation between industry and education is evident (e.g. counterpart pairing and workplace experience for teachers/trainers/tertiary staff), some concessions should be allowed. This is best negotiated through the HRDAC currently. Long term, this should be included in Memoranda of

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working in partnership to raise the skills of local secondary and tertiary education personnel

Understanding so that the conditions and requirements are clear.

In scare skills areas there is a high demand for workers and this has resulted in a situation where employers need to raise wage levels in order to recruit specific workers

Over the short term there is a need to implement a survey to find out the main HR issues that are facing companies and to identify how the situation can be tackled. There could be an argument for the HRDAC to support the implementation of an Investment in People program (for example)

The long term response will be to increase the pool of people with skills that are in high demand. This is more a systemic issue and related to many of the reforms identified above.

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