09 Jul 2017

 Minister of Investment, Trade and Industry, Mr Vincent Seretse recently toured the United Refiners Botswana (URB) Holdings whose core business is edible oil refinery and seed crushing.

Briefing Mr Seretse, the company’s managing director, Mr Mmoloki Tibe said the business was in the process of developing a strategy for backward integration by establishing a crushing facility within the proximity of the refinery.

“The other strategy is to develop a sunflower cropping plant in Botswana within the Pandamatenga community.

“The strategy will achieve a reduction in cost for the procurement of raw oil together with securing of a reliable supply source of raw oil,” he said

He also said it would have a multiple effect on the local community by empowering citizens and creating a downstream value chain within the agricultural sector.

Mr Tibe also noted that they sold one third of their oil in Botswanal, and exported the rest  to countries such as Angola, Zambia and the Democratic Republic of Congo (DRC) where an export market existed.

He explained that the cost of oil were lower than manufacturing costs in Botswana since the foreign companies established were in business for too long.

Furthermore, he also noted that other foreign companies dumped blended products and sunflower oil in Botswana at a price lower than the manufacturing cost to deter local competition.
In his response, Minster Seretse said he would discuss with relevant authorities for possible solutions. ENDS