21 Oct 2015

The establishment of Pula Steel is testimony of the government’s commitment to facilitate the private sector to grow the economy and create quality sustainable jobs, says Acting  President, Mr Mokgweetsi Masisi

Officially opening the steel manufacturing plant in Selebi Phikwe on Tuesday (October 20), Mr Masisi said  the opening of the plant was befitting after the launch of the Economic Stimulus Programme (ESP) which seeks to stimulate economic diversification and growth, generate employment opportunities and contribute to poverty eradication.

He said the move was also in line with President Lt Gen. Seretse Khama Ian Khama’s Independence Day message which emphasised the commitment of the government to create jobs for Batswana. 

He noted that Pula Steel was the first company in the country that processes scrap metal into billet, and that it would further process billet into steel products such as rebar and other products.

He explained that the first phase of the production process would produce billet that would be exported to other countries. He added that in eight months the production process would add a second phase which would produce rebar and other products. 

The Acting President said the first phase of the project would employ 250 people while the second phase would increase the number to 1 000 workers. 

Mr Masisi  noted that steel was a basic commodity required by any developing economy for infrastructural developments, mines and construction.

Mr Masisi also noted that  the Southern African Development Community (SADC) imported P36 billion worth of steel in 2014, and that the local demand amounted to P775 million. He added that the local demand was primarily met by South Africa and China which supplied 50 per cent and 40 per cent respectively. 

The Acting President said  the establishment of Pula Steel has created an opportunity for other investors to invest in downstream projects such as the production of nuts and bolts, screws and nails.

“As government, we continue to create an environment for the private sector to thrive and we have also repeatedly stated that jobs will only grow if there is successful private sector activity,” he said.

He  said the government has enacted a law which restricts the export of scrap metal without satisfying local foundries first. 

He  urged BCL Mine, SPEDU and Pula Steel to work together to develop the region  into an industrial and minerals processing centre in order to attract other investors

Mr Masisi commended all parties involved in the Pula Steel project, and in particular the BCL Mine for its visionary leadership under the Polaris II strategy which contributed to the initiation of the steel manufacturing project. Ends