26 Feb 2020

Government has approved P292 million for development of the leather industry park in Lobatse.

That was said by investment, trade and industry assistant minister, Mr Karabo Gare in Parliament on February 26.

Mr Gare explained that the funds would be used to service the park, construct common effluent treatment plant, secure landfill facility, factories, warehouses administration block and a fully equipped tannery.

He said the park was anticipated to create about 4 700 jobs at the initial stage and 7 000 jobs at full capacity.

Mr Gare was responding to a question from Molepolole North Member of Parliament, Mr Oabile Regoeng who had asked the minister to update Parliament on progress of the Lobatse Leather Industry Park project.

Mr Regoeng also wanted to know whether adequate development funds and early operational funds had been secured.

He also asked if the project development partners and their capital contribution had been identified and already relocated to Lobatse.

Also, the legislator wanted to know when construction would start, its stage and the expected completion date.

The minister was also to state whether technical expertise had been sourced as the proposed project was highly complex and technical as well as the envisaged job opportunities to be created when the park was fully operational.

Mr Gare said it was important to develop the tannery to allow for commissioning of the basic infrastructure such as the common effluent treatment plant and any related technologies.

He said P13 million was available for pre-project preparations including project management and technical advisory services.

The technical model of the leather industry park, he said had envisaged government identifying technical partners who were to contribute 50 per cent of the cost of the project and provide technical expertise. 

However, he explained that after careful consideration, further consultations and professional advise, it was realised that the model was not practical or sustainable, hence the need to review it.

He said both the business and financial models were reviewed in December 2019 taking into account the current development in the sector both locally and globally.

Again, he said revised models entailed government constructing and enabling infrastructure and the private sector leasing out tanneries, factories and warehouses.

“Recruitment of tannery operators and leather products manufacturers will start in March this year and will be undertaken simultaneously with construction of the park,” he said.

Following approval of the revised models, Mr Gare said Local Enterprise Authority (LEA) directed project managers to verify the estimated cost of the park because time had elapsed since they were last prepared. 

Mr Gare said the invitation to tender for construction of the leather park industry was scheduled to be published in March this year and would run for six weeks to allow bidders time to respond.

He said construction was expected to commence in June this year and would run for a period of 18 months.

Further, he said services of experienced technical advisors had been secured to ensure compliance with requisite standards throughout development of the project.

Given the magnitude and complexity of the project, Mr Gare said LEA was developing an appropriate government structure which would set rules, procedures and other guidelines for management of the project.

He added that the authority was also working closely with other strategic partners such as the Ministry of Agricultural Development and Food Security, Botswana Power Corporation, Botswana Investment and Trade Centre, Special Economic Zones Authority and Botswana Meat Commission to facilitate implementation of the project.

He also indicated that a stakeholders’ map had been developed and consultations had been undertaken with various stakeholders to ensure successful project implementation. Ends