Connect with us
Advertisement

P100 million Milk project fails to take off


MilkAfrica, a joint project between Lobatse Town Council and a Zimbabwean refugee, which was expected to create around 500 jobs and supply the country with milk as from early 2015, has not started operations and is currently facing a lawsuit over a mere P16 000 debt.

The project was estimated at the value of P100 million.  The town council’s political wing has also started casting doubt over the project which was given 1375.4470 hectares of land by the Council. Molaodi Mantle, who sits in the MilkAfrica board and representing the council, had admitted in an interview that pressure is mounting on the Council leadership to produce a full report as to what is happening to the project or release the land back to be distributed to the general public for residential purpose.


“It is true that councillors are demanding answers, but we are still waiting for Mr Matibe to brief us. He is the one who can answer all the questions. As you know, we just have 10 percent share of the project and the 90 percent belong to the company,” explained Mantle.
The Councillors fear that the council could have been sold a dummy right from the beginning.

Allegedly, the company’s founder and Chief Executive Officer (CEO), Philemon Thambatshira Matibe, a Zimbabwean refugee, who lives in the United States of America had no or very little money to invest in the project, but planned to get loans from the local bank using the leased land as security. However, the council is said to have refused to sign off the land into his name or that of his company, Lobatse Dairy (PTY) Ltd, thus the delay of funding and launch of production.


The Council leased the big chunk of land to Lobatse Dairy for a duration of 25 years, a period which started in January 2013. According to the agreement, the company is to payout a minimum of P2 Million over that period to the council. At the end of the lease the land is to revert back to the Council, with an option to a single renewal of this lease.


As of this year the project should have already injected P100 000 to the council, but instead it is entangled in minor debts. “The whole project is misguided, everything is so confused. The workers have abandoned the premises, the owners are not always around and the council always washes its hands from the debt,” revealed Charles Tafa, a contractor who was hired to do some jobs for the construction.


Tafa who said he had collected his machinery from the seemingly abandoned project site, revealed that there are other contractor who are owed more money, like the one who supplied manure for the site. Tafa’s matter is currently before the Lobatse Magistrate court.
The former Member of Parliament for Lobatse, Nehemiah Modubule has also expressed doubt on the project.

This is what he had to say about the project which at inception, enjoyed the support of the former Vice President, Ponatshego Kedikilwe, “At the time when I was in parliament, I went to see Rre Kedikilwe about this project. At the time, some farmers, especially white farmers were complaining that MilkAfrica project was given such a big land such that it had closed passages to their farms, but I was told that the council is doing appraisable job.

My question to him was, since this man (Matibe) is a refugee on transit was it wise to invest this much on this project, was he to be trusted.” Modubule added that, he never believed in the project from the beginning but the council and the Vice President had a different view and even sent several employees to be trained for the job overseas, “some of who have not been able to complete their training because sponsorship is no longer coming through. Those from the Ministry of Agriculture have returned and resumed working from the Ministry.”


The Ministry of Agriculture was to partner or had partnered with the council on this project to ensure that the cultivation of the leased land is in accordance with good husbandry and the laws of Botswana, “in particular the Lessee shall comply with the provisions of any laws concerning the conservation of natural resources and good husbandry as defined by the Ministry of Agriculture and Ministry of Environment, Wildlife and Tourism from time to time.”  


The town clerk, Malebogo Kruger could not be reached for comment. Nonetheless, Councillor Mantle who sits in the MilkAfrica board had confirmed that the council still trust that the project will take off as promised. In fact, Mayor Kruger together with Mantle recently travelled to Kimberly, South Africa where they were to view the cattle stocked for the milk project. Mantle confirmed that they indeed saw the 580 cows, which were 3 months pregnant, but maintains that he does know whether they have been bought or not.


“It is Mr Matibe who can confirm the payment part,” Mantle pointed out. However one Councillor revealed that, “the Council leadership went to Kimberly under wrong impression that the cattle had been bought, only to learn from the seller that they have a blank cheque.”
But Mantle maintains that the allegation is not true and added that, from Kimberly they were to travel to Capetown to view the water purifying machines which are to form part of MilkAfrica plant. Nonetheless he declined to explain why the trip did not materialise rather saying it is the Mayor who has to answer some of the questions.


Meanwhile Councillors are breathing hard on the Mayor and her team and demand that the land be taken back and distributed to members of the public for residential purposes. The project was expected to bring back life to Lobatse following the transfer of High court and court of Appeal headquarters to Gaborone, which left the town almost abandoned. According to records the leased land shall be used solely for a dairy milking parlour, paddock and pasture establishment, milk processing, offices, staff housing and related amenities only. The lease of the land is to continue for a period of twenty five years.


POWER GAMES BEHIND THE PROJECT
The MilkAfrica project was not without impediments from the word go. Sponsors of the project had to force their way into the office of the then Vice President Ponatshego Kedikilwe for the project to go ahead. The Minister of Environment Wildlife and Tourism, Tshekedi Khama had refused to give the project and Environmental Impact Assessment certificate. He was first not convinced by the pitch from the Lobatse Council and the Zimbabwean investor. He made it clear that he will not grant the project an EIA.

Kedikilwe had to use his muscle reportedly reasoning that the Council was trying its best to create jobs. With all the drama unfolding Tshekedi Khama will feel vindicated and it remains to be seen whether the project will ever take off.

Continue Reading

News

Masisi to dump Tsogwane?

28th November 2022

Botswana Democratic Party (BDP) and some senior government officials are abuzz with reports that President Mokgweetsi Masisi has requested his Vice President, Slumber Tsogwane not to contest the next general elections in 2024.

This content is locked

Login To Unlock The Content!

Continue Reading

News

African DFIs gear to combat climate change

25th November 2022

The impacts of climate change are increasing in frequency and intensity every year and this is forecast to continue for the foreseeable future. African CEOs in the Global South are finally coming to the party on how to tackle the crisis.

Following the completion of COP27 in Egypt recently, CEOs of Africa DFIs converged in Botswana for the CEO Forum of the Association of African Development Finance Institutions. One of the key themes was on green financing and building partnerships for resource mobilization in financing SDGs in Africa

A report; “Weathering the storm; African Development Banks response to Covid-19” presented shocking findings during the seminar. Among them; African DFI’s have proven to be financially resilient, and they are fast shifting to a green transition and it’s financing.

COO, CEDA, James Moribame highlighted that; “Everyone needs food, shelter and all basic needs in general, but climate change is putting the achievement of this at bay. “It is expensive for businesses to do business, for instance; it is much challenging for the agricultural sector due to climate change, and the risks have gone up. If a famer plants crops, they should be ready for any potential natural disaster which will cost them their hard work.”

According to Moribame, Start-up businesses will forever require help if there is no change.

“There is no doubt that the Russia- Ukraine war disrupted supply chains. SMMEs have felt the most impact as some start-up businesses acquire their materials internationally, therefore as inflation peaks, this means the exchange rate rises which makes commodities expensive and challenging for SMMEs to progress. Basically, the cost of doing business has gone up. Governments are no longer able to support DFI’s.”

Moribame shared remedies to the situation, noting that; “What we need is leadership that will be able to address this. CEOs should ensure companies operate within a framework of responsible lending. They also ought to scout for opportunities that would be attractive to investors, this include investors who are willing to put money into green financing. Botswana is a prime spot for green financing due to the great opportunity that lies in solar projects. ”

Technology has been hailed as the economy of the future and thus needs to be embraced to drive operational efficiency both internally and externally.

Executive Director, bank of Industry Nigeria, Simon Aranou mentioned that for investors to pump money to climate financing in Africa, African states need to be in alignment with global standards.

“Do what meets world standards if you want money from international investors. Have a strong risk management system. Also be a good borrower, if you have a loan, honour the obligation of paying it back because this will ensure countries have a clean financial record which will then pave way for easier lending of money in the future. African states cannot just be demanding for mitigation from rich countries. Financing needs infrastructure to complement it, you cannot be seating on billions of dollars without the necessary support systems to make it work for you. Domestic resource mobilisation is key. Use public money to mobilise private money.” He said.

For his part, the Minster of Minister of Entrepreneurship, Karabo Gare enunciated that, over the past three years, governments across the world have had to readjust their priorities as the world dealt with the effects and impact of the COVID 19 pandemic both to human life and economic prosperity.

“The role of DFIs, during this tough period, which is to support governments through countercyclical measures, including funding of COVID-19 related development projects, has become more important than ever before. However, with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.” Said Gare.

Continue Reading

News

TotalEnergies Botswana launches Road safety campaign in Letlhakeng

22nd November 2022

Letlhakeng:TotalEnergies Botswana today launched a Road Safety Campaign as part of their annual Stakeholder Relationship Management (SRM), in partnership with Unitrans, MVA Fund, TotalEnergies Letlhakeng Filling Station and the Letlhakeng Sub District Road Safety Committee during an event held in Letlhakeng under the theme, #IamTrafficToo.

The Supplier Relationship Management initiative is an undertaking by TotalEnergies through which TotalEnergie annually explores and implements social responsibility activities in communities within which we operate, by engaging key stakeholders who are aligned with the organization’s objectives. Speaking during the launch event, TotalEnergies’ Operations and HSSEQ,   Patrick Thedi said,  “We at TotalEnergies pride ourselves in being an industrial operator with a strategy centered on respect, listening, dialogue and stakeholder involvement, and a partner in the sustainable social and economic development of its host communities and countries. We are also very fortunate to have stakeholders who are in alignment with our organizational objectives. We assess relationships with our key stakeholders to understand their concerns and expectations as well as identify priority areas for improvement to strengthen the integration of Total Energies in the community. As our organization transitions from Total to Total Energies, we are committed to exploring sustainable initiatives that will be equally indicative of our growth and this Campaign is a step in the right direction. ”

As part of this campaign roll out, stakeholders  will be refurbishing and upgrading and installing road signs around schools in the area, and generally where required. One of the objectives of the Campaign is to bring awareness and training on how to manage and share the road/parking with bulk vehicles, as the number of bulk vehicles using the Letlhakeng road to bypass Trans Kalahari increases. When welcoming guests to Letlhakeng, Kgosi Balepi said he welcomed the initiative as it will reduce the number of road incidents in the area.

Also present was District Traffic Officer ASP, Reuben Moleele,  who gave a statistical overview of accidents in the region, as well as the rest of the country. Moleele applauded TotalEnergies and partners on the Campaign, especially ahead of the festive season, a time he pointed out is always one with high road statistics. The campaign name #IamTrafficToo, is a reminder to all road users, including pedestrians that they too need to be vigilant and play their part in ensuring a reduction in road incidents.

The official proceedings of the day included a handover of reflectors and stop/Go signs to the Letlhakeng Cluster from TotalEnerigies, injury prevention from tips from MVA’s Onkabetse Petlwana, as  well as  bulk vehicle safety tips delivered from Adolf Namate of Unitrans.

TotalEnergies, which is committed to having zero carbon emissions by 2050,  has committed to rolling out the Road safety Campaign to the rest of the country in the future.

Continue Reading