28 Feb 2023

Incentives offered by government to companies to set up factories in the SPEDU region are bearing fruit.

More and more investors, particularly in the manufacturing sector, are taking advantage of the incentives to set base in the once vibrant copper nickel mining town.

One of them is StalDorwin PTY LTD, a local company manufacturing door frames, window frames and fly screens. The company relocated from Gaborone to Selebi Phikwe because of low rentals and incentives offered.

“Rental here is reasonable compared to Gaborone and Francistown,” said the man at the helm of StalDorwin, Mr Thari Ntshole.

The company imports coils of steel and window sections from South Africa, China and Spain which they turn into door and window frames as well as other products.

The SPEDU region was established to promote economic diversification from copper and nickel mining in the Selebi Phikwe area and investments in manufacturing, industry, tourism and agri-businesses. 

The region covers five constituencies of Selebi Phikwe East, Selebi Phikwe West, Bobonong, Lerala/Maunatlala and Mmadinare.

In addition to facilitating business in the region, government also introduced SPEDU specific investment incentives such as special tax incentives as well as 30 per cent direct government off-take. 

The direct off-take guarantees that 30 per cent of the goods produced would be procured by government.

StalDorwin operates a fully equipped 3 000m² factory in Selebi Phikwe and it has a broad market base extending beyond the borders of the SPEDU region.

“We supply our products anywhere throughout Botswana, but we do not sell to individuals," said Mr Ntshole, adding that their biggest customers were construction companies.

 He added that their products were also available at major hardware stores around the country such as Builders Mart, Builders World and Haskins. 

“We are also pursuing Botswana Housing Corporation to come on board,” he said.

Within two years of operation, the 100 per cent citizen owned company has employed 35 people, mostly from Selebi Phikwe and plans to employ more people in the future.

Mr Ntshole noted that there was a high demand for building materials and that he planned to double production with employees working on shifts.

However, he said there was stiff competition for the market from companies in neighbouring countries who sometimes sold sub-standard and cheaper products.

He said high quality products and service was his distinguishing feature.

 “Customer service has evolved due to the ever-changing needs and expectations of our customers and we have put time and effort into understanding the market and our customers,” he said.

Initially funded by the Citizen Entrepreneurial Development Agency, the company also approached commercial banks to increase production.

With tarred roads, electricity and other services easily accessible in the SPEDU region, more investors are expected to establish industries in the area while some will relocate from more expensive areas to operate from such as Gaborone and Francistown. BOPA