Mmadinare Cooperative calls for investment in citrus spinoffs
SELEBI-PHIKWE: In an endeavour to foster economic growth, the Mmadinare Multipurpose Cooperative Society Limited (MMCSL) has extended an invitation to other cooperatives in Botswana and investors to participate in the spinoffs from the mammoth Selebi-Phikwe Citrus (SPC) project.
Currently, MMCSL leases its 1,500-hectare land to SPC under a 50-year agreement, generating annual rental income that exceeds P900,000. As part of the lease agreement, MMCSL has the opportunity to purchase a 10% stake in SPC, valued at over P40 million, a venture currently beyond its financial means.
MMCSL has also been granted the first right of refusal for various spinoff opportunities at SPC. These include juice concentrate production, an agency to sell third-grade fruits remaining in Botswana, a filling station, and wooden pallets for packaging produce for local and international markets.
Chairperson of MMCSL, Motlamorago Gaseitsiwe, emphasised the cooperative’s openness to partnering with external investors to capitalise on these spinoffs and create more job opportunities for Batswana. “We invite other cooperatives to join forces with us by investing in the citrus spin-offs.
“We also invite all other interested investors to reach out to us,” he said recently, during the various events that marked the first harvest at SPC.
Gaseitsiwe told Mmegi that he is very optimistic that investors and other cooperatives across the country will explore the opportunity to partner with MMCSL. “We haven’t initiated talks with potential investors or interested cooperatives yet.
“However, we anticipate receiving proposals starting in April and exploring investment options related to the spinoffs. We were just waiting for the first harvest,” he stated, emphasising the feasibility of SPC’s spinoffs.
“Regarding acquiring the 10% shareholding at SPC, we have just initiated the process. We are considering directly purchasing the shares with financial institutions’ assistance,” he added.
Speaking at the event to officially mark the first harvest at SPC, President Mokgweetsi Masisi urged Batswana to fully exploit the opportunities within the citrus industry occasioned by the commissioning of SPC and create further exports from secondary industries to create more jobs.
“It is my wish to see our private sector taking up opportunities in the citrus industry value chain such as research and development, product compliance and testing laboratories, manufacturing of fruit juice, lemonades and jams, seedlings production as well as fertiliser and pesticides production, just to mention a few,” Masisi said.
This year, SPC is projected to yield approximately 9,000 tonnes of citrus fruits, including lemons, grapes, and oranges. Production is expected to grow on an annual basis as the trees gain maturity.
The trees at SPC are expected to reach full production capacity by age 16, thereby augmenting the supply capacity for both domestic and international markets yearly.
This year, 25% of the farm’s produce will be directed to the local market, significantly reducing Botswana’s citrus import bill.