CAAB owes close to P21 million in lease payments

Cathrine Moemedi
CAAB CEO: Bao Mosinyi (Pic credit: MCKT)

The Civil Aviation Authority of Botswana (CAAB) owes approximately P21 million in lease payments to various land boards.

This huge financial burden was confirmed by CAAB Chief Executive Officer (CEO), Bao Mosinyi during a recent media engagement in Maun.

CAAB is responsible for Botswana’s four international airports in Gaborone, Maun, Francistown and Kasane, as well as two major airports in Gantsi and Selibe Phikwe.

Additionally, the authority manages 23 strategic airfields utilized for high-profile activities, including presidential and ministerial movements, security operations, and medical evacuations.

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“These airstrips are run by CAAB and collectively, they do not make up to P1, 000. They are expensive to maintain, needing about two employees each to attend them,” Mosinyi noted.

Previously, CAAB paid a nominal fee of P100 per year for these leases.

However, after regulatory reviews in 2022, the fees increased significantly to P2,300 annually.

The cost surged even further when airstrip fees were set at P55 per square meter.

“The cost is not properly chargeable to any revenue, which is why there is a need for government intervention,” Mosinyi explained, adding that although P55 per square meter might seem reasonable, the total amount becomes overwhelming when applied to entire airports.

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Mosinyi highlighted ongoing discussions with the minister and land boards about the unsustainability of the current fees.

CAAB owes lease payments for 2022, 2023, and the current year, unable to meet these obligations due to the non-revenue-generating nature of the airstrips.

Despite these financial challenges, CAAB remains focused on its strategic goals.

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Mosinyi revealed that CAAB recently launched a five-year strategic plan aimed at transforming the authority into a high-performance civil aviation entity.

The plan emphasizes revenue growth, targeting P500 million annually, improving operational efficiency, and effectively implementing International Civil Aviation Organisation standards.

To align with international standards, CAAB has also signed regulations for drones and consumer protection.

Mosinyi underscored the importance of generating revenue and controlling costs to ensure the organization’s sustainability. As CAAB navigates its financial hurdles, it remains committed to advancing Botswana’s aviation sector.

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