07 Dec 2022

Discussions between Botswana Development Corporation (BDC) and a technical partner eyeing investment in Milk Afric are expected to be completed early next year.

This was said by Lobatse deputy mayor, Mr Phemelo Masisi when addressing a full council session on Tuesday.

He informed councillors that the potential investor was looking to expand dairy operations to Botswana and in the process assist BDC to commence Milk Afric operations.

“A working session whose objective was to negotiate and conclude all capital and operational structures of the project between BDC, the investor and some of the government delegates and parastatals, was held 1-4 September 2022.

Discussions with the technical partner are anticipated to be concluded during the quarter ending 31st March 2023,” said the deputy mayor.

Mr Masisi further pointed out that BDC was in the process of developing additional infrastructure required for the project’s operationalisation citing construction of a road and a bio fence.

“The objective is to develop infrastructure that is inevitable such that once agreements with the technical partner have been reached, the corporation will then focus on the core structures such as calf and cow housing facilities, a cow hospital and a feed barn,” said Mr Masisi.

Milk Afric, a dairy project, was started in 2016 as a public-private-partnership in Lobatse headed by BDC with production initially anticipated to commence in 2019.

Envisaged to increase milk production in Botswana and boost employment opportunities in Lobatse, the project however experienced a series of delays and last year the original technical partner pulled out. 

That left BDC looking for a new technical partner.

In June, Lobatse mayor Mr Mosimanegape Dithebe informed council that some investors from Dubai were interested in joining the project.

On another project, Mr Masisi informed councillors that implementation of the Lobatse Clay Works turnaround plan, which commenced in May, was progressing well. 

He said all plant equipment had been removed and transferred to  different manufacturers for refurbishment.

“During the dismantling of the equipment, five local companies were engaged as subcontractors and 34 jobs created. The first batch of equipment is expected early December 2022 and installation will commence immediately and is expected to take six months to be completed,” Mr Masisi said.

The deputy mayor said as part of its market re-entry strategy, the company participated in the just-ended Global Expo 2022 and undertook public outreach initiatives.

The aim was  to generate literacy on its offerings and raise awareness that the company was working on re-opening, he said.

Mr Masisi said once operational, the company was expected to generate 141 jobs and contribute towards import substitution. Ends