Hope springs eternal with Lobatse SEZ plan
The economy of Lobatse is expected to receive a boost from newly unveiled plans for further value addition at the Botswana Meat Commission (BMC). These plans include the launch of new products and derivatives from existing raw materials.
The border town’s economy has been struggling for years as key industries have underperformed, while other critical activities, such as the High Court, have moved to Gaborone.
BusinessWeek has learnt that under a campaign being led by the Special Economic Zones Authority (SEZA), the BMC is set for a revamp that will anchor the Lobatse Special Economic Zone.
BMC officials recently unveiled their ambitious plans during a meeting with the SEZA, the assistant ministers of agriculture and trade, as well as farmers and other stakeholders in the Lobatse area.
The BMC currently produces frozen and fresh beef as well as canned stew, pet food and corned beef.
Giving highlights of some of the planned value addition, BMC chief strategy officer, Brian Dioka said the parastatal produced 2,400 tonnes of carcass and blood meal last year, as well as 1,350 tonnes of tallow, all of these as by-products of slaughter. He noted that the carcass and blood meal had a potential value of P12.4 million, while the tallow had a potential of P9.1 million, through the production of value-added products such as dog food, bio-diesel and bone china tableware.
“Bone china is a durable, lightweight and elegant material that is used in the manufacture of tableware such as plates, bowls, mugs and teacups,” BMC officials explained.
“The manufacturing of bone china involves the crushing, degelatinising and calcining of cattle bones to produce bone ash. Production of bone china is labour-intensive, and the final product is highly-priced as it is globally considered a luxury.”
Meanwhile, BMC waste has the potential to produce 2,153 cubic metres of biogas per day, capable of generating 4,480kWh of electricity and 4,175kWh of thermal energy per day. The slurry and effluent waste produced at BMC can also be used to manufacture organic fertiliser, officials said.
The Lobatse cannery is also earmarked for a revamp that will address its current sub-optimal production caused by obsolete machinery and low cattle throughput.
“The plant currently churns out 45,600 cans per day at a value of P1.3 million,” BMC officials stated.
“With targeted plant upgrade, new machinery and consistent supply of raw material, BMC anticipates producing 307,200 cans per day at a value of over P7.7 million.”
SEZA acting director of policy and planning, Jayson Sechele told the meeting that further beneficiation and value addition at the BMC could spur economic diversification and industrialisation of the Lobatse Special Economic Zone.
Sechele said the plus-150,000 hides harvested at BMC every year could be processed at the envisaged Lobatse Leather Park and used to manufacture leather products such as shoes, soaps, detergents, car seats and oils.
“The hides are currently exported raw to South Africa, which is akin to exporting jobs. The Leather Park on its own can create over 5,000 jobs.
“So as SEZA we are very excited about the prospects at BMC,” Sechele said.
SEZA expects the master planning of the Lobatse SEZ to be completed by end of July after which the authority will commence with preparing a business case, urban and landscape designs to guide the future developments.
“With operational farms, electricity, readily available water and infrastructure, the Lobatse SEZ is an easy win whose development will create jobs and boost economic diversification,” Sechele said.