17 Mar 2015

Botswana is facing a serious challenge of diversifying its economy away from minerals.

In Selebi Phikwe for instance, the whole of Bobirwa area relies on the BCL mine for employment and other downstream activities.

However, given the mine’s lifespan is close to maturity, government has come up with the Selebi Phikwe Economic Diversification Unit (SPEDU) to diversify the economy of the region and promote sustainable development. 

One of the major projects earmarked for that purpose is a Agro processing plant. This is more so that while eastern Botswana is characterised by field crop and horticultural production finding a market for horticultural produce is a challenge. 

Consequently, the idea is to empower locals to sell their produce to the processing plant and gain income.  It is also to promote agriculture and to support the ISPAAD programme. Meanwhile, setting up of the processing plant is still at initial stage.

SPEDU communications manager, Mr Kenneth Boikhutshwane, says commencement of the project was planned for October 2014 but was delayed due to shipping of processing plant machinery from India as well as readiness of the premises where the plant will be set up.

Incidentally, all machinery has been delivered now while renovation of the BDC factory shells where the plant will be set up was to be completed by end of February. Mr Boikhutshwane says fitting of machinery will commence as soon as the premises are ready and the process may require about six weeks. 

Also, he adds, operation of the processing plant has been projected to commence in May. Currently, he says, they are still looking for assistance as the project is facing major financial constraints.

They need working capital to kick start operations immediately the plant has been fully assembled.  NFTRC who will be managing the project when it is operational is still in the process of sourcing funds.

In the meantime, the Office of the President financed the project at a tune of P6 million from which P3.6 million was utilised to purchase equipment and machinery.

The remaining P2.4 million has been put aside to purchase horticultural produce from farmers in the region after working capital has been availed and operations are ready to commence. Mr Boikhutshwane explains that roughly 30 jobs will be created for locals at the plant for now but they were expecting more in future. 

He says so far, four youth who were interns at SPEDU with engineering back ground were trained in India for a month on how to assemble the plant, operate it, and monitor its functions as well as to identify faults and repair them.

 In the meantime, the processing plant will produce canned and bottled horticultural produce. Farmers in the region and the rest of the country have been advised to form clusters or associations to sell their produce as a unit because it will be easier and beneficial.

The project is expected to rejuvenate the economy of the Selebi Phikwe region as more people will be economically empowered.  More jobs are expected in the sector as well, thereby helping to eradicate poverty and promote sustainable development. ENDS