Baeng- a shoe manufacturer with a difference

He argues Botswana can easily become a global hub for leather design Participating at GlobalExpo Botswana 2022 helps market his business

Assertiveness is what keeps Pelotshweu Baeng, a Mmadinare based businessman trading in leather manufacturing fashion products with the hope that one day he will have outgrown the small scale business.

Just picture this, subsequent to taking a decision that he wants to establish a leather manufacturing business, he sold some of his family assets and took short term loans from friends and relatives.

He sold his assets because he could not get a loan from his bank since his company’s account was less than 12 months old. Moving to Mmadinare turned out to be a great blessing. He is thankful that his new landlord, the Charles Matlhake family gave him some of his employees free accommodation and a property- which is his former bar- “to operate my business into with a deferred rent until the company is able to pay both rent and accumulated arrears”.

With the little that he had, he, together with his wife, Bathusi set up the business named International Shoe Manufacturing Centre ( PTY) in Gaborone in February 2022 trading in leather manufacturing business.

Some of their products are fashion shoes, work footwear ( ankle boots, half and full boots, school shoes, sandals, school bags, leather documents holder, jackets and luggage bags.

A month later he opted to relocate and establish himself in the SPEDU region, choosing the village of Mmadinare instead of the town of Selibe Phikwe.

Those who attended the just past GlobalExpo Botswana 2022 and visited his stall will agree that, the stocky bald headed Baeng has raised the bar much higher for a person who started the business just eight ( 8) months ago.

With each passing day Baeng is testimony of the possibility that Botswana can become a global hub for leather design and manufacturing, and the fact that local products can be globally associated with luxury for the benefit of our farmers and the realisation of “our national aspiration of building an export led economy”.

Baeng’s business idea was motivated by the English version of the Re- Set Agenda speech delivered by President Dr. Mokgweetsi Masisi.

“I felt challenged to be part of the new Botswana that feed its own people, creating value out of abundant raw materials in our country through manufacturing,

“I adopted an unwavering resolve to be part of the export led economy”.

“It was during this time that I realised that an opportunity has once again been presented for me to avoid inheriting my parent’s decades of poverty status and create a legacy for my children and grandchildren”.

Therefore, it became clear to Baeng that leather manufacturing has the potential to bring value addition to the livestock sector. So far, individuals, the private sector and government departments are showing positive response.

“We believe that if we maintain high quality, we will finally reach out to all local market segments and enter the export market. However, Parastatals are the ones that seem not to be forthcoming”.

Some of his challenges have to do with cash flow to finance running expenses and undue competition with imported goods especially foot wear. To litigate cash flow difficulties he seeks short term assistance from individuals and non- bank financial service providers.

As for competition from imported footwear he says there is need for a moratorium on such importation. He also faces low profitability margins.

“We need big orders and long term contracts in order to graduate from small scale to medium and later large scale. That is where there is profit.

He also bemoans that local shoe manufacturing skills are scarce hence the high training costs.

“We are starting a leather academy in order to fill the gap,” he said.

He gets some of his raw materials in the form of processed leather from neighbouring countries and is working with some individuals who use indigenous methods of tanning leather to use such leather to manufacture products.

Baeng has received support from government departments such as LEA which gives business advisory services and market access, SPEDU with market access and preferential support incentives, CEDA’s financial support and business advisory services while BOBS has provided him accreditation for his products

In fact, one of his biggest orders was funded by CEDA for the company to manufacture 215 pairs of school shoes for Serowe Administrative Authority ( Council).

“I think as local manufactures, we need to understand the local consumer patterns very well and be able to match them. A case for reference is the fact that Batswana have high taste of luxury, therefore, designing relevant products makes them easy to sell”.

Baeng could not be drawn to state what his capital investment was. His response was “We will answer this question in the next interview after audit. But, the company has a total of five ( 5) employees.”