05 Aug 2019

Nata-Gweta legislator, Mr Polson Majaga has requested government to consider designating Sowa Town as a Special Economic Zone.

Tabling the motion in Parliament, Mr Majaga said Sowa Town could be transformed into a salt producing hub due to its proximity to a huge salt pan where sodium carbonate was mined.

He noted that the main economic activity in Sowa Town was driven by Botswana Ash (Botash). He also noted that it was the largest producer of natural sodium products in the region, producing soda ash and salt with the current production capacity of the mine estimated at around 300 000 tonnes and 650 000 tonnes of salt per annum.

“At the moment, Botash is only involved in the mining production of soda ash and salt which is then shipped off in its raw form to neighbouring countries and other markets for processing, noting that there are no beneficiation activities emanating from the mining of soda ash and its downstream products,” he said.

By allowing for beneficiation to happen in Sowa Town, Mr Majaga said there were a number of economic activities that could be undertaken as part of a well-thought out beneficiation programme leading to the creation of jobs in the Sowa Town area and the country at large.

 He said the processing of soda ash locally could also generate employment from soda by-products like production of glass and related products, production of powdered paste and soap detergents and production of salt products.

He argued  that investors could take advantage of inceptives provided through SEZs and proximity to the products that were being mined to create jobs and contribute to the country’s Gross Domestic Product if new businesses were set up in Sowa Town.

He added that Sowa Town could contribute to efforts aimed at diversifying the country’s economy by increasing its manufacturing base and making Botswana a key player in the manufacturing of products that were widely used across the world.

Notwithstanding the possible benefits of the SEZs, Mr Majaga said government had an important role to play in terms of making sure that the regulatory framework did not only encourage businesses to operate freely and competitive, but also to uphold the rule of law of as well.

 He said in some cases, the establishment of SEZs had resulted in the exploitation of workers through low wage levels, lack of training as well as the use of trainees to lower wage costs.

 Debating the motion, Specially elected MP and Minister of Mineral Resources, Green Technology and Energy Security, Mr Eric Molale supported the motion, saying Sowa Town had a comparative advantage on the mining of soda ash and salt, tourism and the potential of a transport hub.

 He said the Ministry of Mineral Resources, Green Technology and Energy Security was already in the process of intensifying the minerals beneficiation drive, with Sowa Town mines inclusive.

 Mr Molale further highlighted that Sowa Town had a natural comparative advantage of being a Special Economic Zone due to its positioning and proximity to one of the largest salt pans in the world. ENDS