SPEDU failing manufacturers

Manufacturers’ businesses not operating while they pay rent, service CEDA loans SPEDU failing its mandate to facilitate for manufacturers in Selibe- Phikwe Warehouses not affordable to manufacturers Warehouses need power upgrade in the range of P400 00

SPEDU has been accused of failing to explicitly undertake its role in facilitating manufacturers in Selibe- Phikwe to access affordable warehouses for business operation and upgrading of their electricity from domestic to industrial level. Botswana Guardian has established that some manufacturers are just stuck in the mining town without operation as the electricity supply is not able to power their machinery. The mandate of SPEDU is to recruit and support businesses mainly in manufacturing.“Things are not what they preach. Currently there is no support to acquisition of factory warehouses. If an individual is to find a warehouse there is insufficient electricity to power our machinery, the industry is not equipped enough with electricity for industrial use. “This issue is not resolved yet and our machines worth millions are sitting on the ground while warranty is ongoing,” said one of the manufacturers speaking on condition of anonymity to Botswana Guardian during a visit to some of the warehouses. A majority of warehouses are owned by Botswana Development Corporation ( BDC) and it has not been easy for most of the manufacturers to access them. Apparently, there are some people in those warehouses but they are not doing anything as there is no production and yet they do not pay BDC rent and worst of all, refuse to vacate the warehouses. Meanwhile according to sources, the BDC warehouses are the only ones better- equipped for industrial use as opposed to private- owned warehouses allegedly opened by business people of Asian origin who refuse to upgrade power demands, which cost around P400 000.00.

“We relocated to Phikwe for manufacturing purposes. Seeing the way things are since our arrival, we remain with much scepticism about operating in the area. Apart from the issue of electricity, we don’t know if indeed we will benefit from the so- called incentives documented for the SPEDU region. “There should be an immediate upgrade of electricity in the whole industrial area, this is the most important issue for now,” another would- be investor said. According to the manufacturers they have been talking to SPEDU about engaging Botswana Power Corporation ( BPC) in the matter. Apparently, BPC does not have a budget for the electricity upgrade. “They want money to be paid upfront while us the manufacturing companies have to only pay for consumption not infrastructure development,” quipped another manufacturer who said he is paying P12 000 per month while his machinery lies idle. Some of the manufacturers have since stopped paying as there is no money to pay the rent due to nonproduction. Otherwise, the few that are functional are said to go to a maximum of P25 000 per month with 10 percent annual escalation.

Some have argued that SPEDU must intervene to make sure prices remain where they are. “The individual warehouses are at 60 amps, this is a domestic rate though, meanwhile most of machinery require about 300 amps, to upgrade to 300 amps we need to raise about P400 000.00. Please note that these projects are mostly funded by CEDA and during assessment of Loan applications there was no provision for the electricity upgrade hence no budget. “Yet at the same time it is not easy to get extra funds from CEDA for this purpose. Yet they have started to demand their monthly loan payments, and it remains impossible as there is no production ongoing hence no cash. SPEDU does not want to own up, keeps engaging BPC and CEDA which I find not necessary,” the source said. SPEDU has through its communications department failed to respond to a questionnaire sent to their Manager Corporate Communications, Shiellah Moribame- Moakofi, early this month and has not responded to follow- up enquiries on the matter.