13 Dec 2020

The Assistant Minister of Investment, Trade and Industry, Mr Molebatsi Molebatsi has told Parliament that government approved implementation of the leather industry park at Lobatse in 2015.

He said this in response to a question from the  Jwaneng-Mabutsane Member of Parliament, Mr Mephato Reatile.

Mr Molebatsi said following the approval, the preparatory work ensued, which involved setting up the Special Purpose Vehicle called the Leather Industry Park Pty Ltd in 2016. He revealed that the environmental impact assessment report was approved in 2017; detailed designs and drawings of the project were approved in 2018, while a building permit was also issued in 2018.

The assistant minister pointed out that initially, government was to partner with a technical partner and contribute 50 per cent equity each and after unsuccessful identification of the technical partner in December 2019, they took a decision to review the business and funding model of the project. 

“The revised business model entailed government providing basic infrastructure which covers development of the Common Effluent Treatment Plant, Secure Landfill facility, administration block, basic infrastructure and one fully equipped tannery for commissioning the infrastructure and technologies, while the private sector finances components such as tannery buildings, factories and warehouses to operationalize the park,” he said.

He said the tender for construction of the bulk infrastructure had been evaluated and was currently being adjudicated and expected to be awarded in January 2021, adding that construction was anticipated to commence before the end of the 2020/21 financial year and planned to be completed in 18 months.

Mr Molebatsi said the remaining infrastructure would be developed as soon as basic infrastructure had been completed.

Parliament also learnt that the ministry had also been engaging with relevant authorities, both public institutions and communities to put in place enabling facilities such as livestock improvement strategies, rehabilitation of slaughter facilities and establishment of hide collection centres, skills development and recruitment of tannery operators to facilitate efficient operation of the park.

Mr Reatile had asked the minister to update Parliament on the leather park project and how far the ministry was on its development. ends