Connect with us
Advertisement

SPEDU brings yet another big project in selibe-phikwe area

Shiellah Moribame-Moakofi

SPEDU, Botswana’s investment promotion vehicle in the SPEDU Region has brought yet another immense project which will be situated adjacent to the town of Selebi Phikwe, dubbed “Selebi Phikwe Citrus Project.”

Commenting on the plan for the project,Manager Agribusiness- Maiba Samunzala, said the Selebi Phikwe Citrus Project is envisaged to become a model citrus development in Southern Africa and a flagship project in Botswana.

“This will be one of the largest flat units of citrus plantation in Southern Africa occupying one thousand two hundred hectares (1200ha) of land. This project has come at a very crucial time when our Government is seriously exploring means to create jobs. Such a project will therefore stimulate the town and restore economic activity within the SPEDU Region,” he said.

In line with Government’s efforts of diversifying the economy away from over reliance on the mineral sector, SPEDU’s critical role is to facilitate inward investment and economic diversification in the Region.

SPEDU started facilitating the project in May 2018 where engagements began between SPEDU itself, Botswana Investment and Trade Centre (BITC) and the investors. It has been a long journey which involved a number of negotiations which was done with due caution without compromise to both parties. This deal brings the number of SPEDU’s total projects to 70 in various sectors which are at different stages of development. Amongst these projects, forty-five (45) are at advanced stages of development.

Twenty-six (26) are citizen-owned companies in Information Technology (IT), Manufacturing, Agriculture and Construction;
Four (4) Government projects in Infrastructure Development and Agriculture;
Eight (8) Foreign-owned companies in Agriculture; and
Seven (7) Joint ventures in Manufacturing and Agriculture.

For his part, SPEDU Chief Executive Officer, Dr Mokubung Mokubung added that the project will be sitting on the Mmadinare Multi-Cooperative Society’s land, leased for a period of 33 years with an automatic renewal clause for a further 50 years. Dr Mokubung further indicated: “It was our responsibility that we ensure that clear steps are followed to allow for subleasing of the piece of land.

“A decision was further taken to approve a water quota and a reduced water tariff for this project. This decision was made considering the contribution envisaged from this project to the economy of Botswana. This project therefore will draw water from Letsibogo dam with an approved water allocation to the Project of 8 million cubic meters. Electricity supply will be from Botswana Power Corporation, while back-up generators will be present for pump stations as well as the pack house.

The development will be on a 1,500 hectare site, with 1,200 hectares of citrus orchards to be developed between 2020 and 2025 in two phases of development”, Mokubung added. The Selebi Phikwe Citrus (Pty) Ltd shortened as “SPC”, is foreign owned by South African (RSA) citizens. The RSA owners will manage the project with their highly experienced citrus growers personnel, with strong established track records in the industry, cumulatively spanning more than 50 years.

The location of the project was chosen on geo-political, economic and climatological merits including amongst others: Botswana’s stable political environment, amidst a mature democracy and a strong independent judiciary; Favourable business conditions, including attractive taxation and foreign exchange regulations, and a stable local currency with low annual inflation; Attractive long-term investment incentives; Good technical and agricultural conditions; and Adequate infrastructure and logistical access to markets.

Informed by the climactic factors particular to the site, the orchards will be planted with a range of citrus cultivars, including mandarins, Valencia oranges, seedless lemons and grapefruit. Although it will be one of the largest single citrus developments ever undertaken in Southern Africa, the development will only represent a maximum of 1.2% of the Southern African citrus plantings, all of which are mainly oriented towards overseas citrus demand markets. It is therefore not expected to have any destabilising effect on prices or industry dynamics.

The SPC project is being established at one of the most lucrative places in Botswana, as the SPEDU Region is strategically located even in the broader Sothern African Development Community (SADC) region.

The town of Selebi Phikwe is surrounded by 52 villages and rural settlements, and is located approximately 400 kilometers north of the capital city Gaborone. Selebi Phikwe serves as the commercial capital of the SPEDU Region. The town is home for 49,411 people, making up approximately a quarter of the entire population of the Region.

The Selebi Phikwe Citrus Project is forecast to create 1000 sustainable job opportunities at full capacity, with creation of both forward and backward linkages with other sectors. This Project would bring about growth and diversification of the agro industry, with spin-off effects that will generate other value chain business opportunities. The other benefits which would be brought by the Project include, increased level of exports, increased export revenue, technological and skills transfer, and import substitution.

Some of the areas in the SPEDU land pockets serves as a Special Economic Zone with the intention to support industrialisation through the economic sectors of Tourism, Manufacturing and Agro-Business in diversifying the economy.

This is in recognition of the inherent comparative advantages of the region evidenced by availability of ample surface and underground water resources. It is also the home of five of the country’s major dams, the Thune Dam, the Letsibogo Dam, the Lotsane Dam, the Dikabeya Dam and the Dikgatlhong Dam.

The region also boasts highly fertile soils and a climate conducive for agricultural, especially horticulture production. The availability of land for industrialisation in Selebi Phikwe and the region, infrastructure resources, abundant natural attractions, flora and fauna, natural resources such as granite, sandstone, marble and silica sands open up opportunity for industrialization.

Digital Version

13 AUGUST 2022 Publication

12th August 2022

This content is locked

Login To Unlock The Content!

 

Continue Reading

News

DIS blasted for cruelty – UN report

26th July 2022
DIS BOSS: Magosi

Botswana has made improvements on preventing and ending arbitrary deprivation of liberty, but significant challenges remain in further developing and implementing a legal framework, the UN Working Group on Arbitrary Detention said at the end of a visit recently.

Head of the delegation, Elina Steinerte, appreciated the transparency of Botswana for opening her doors to them. Having had full and unimpeded access and visited 19 places of deprivation of liberty and confidentiality interviewing over 100 persons deprived of their liberty.

She mentioned “We commend Botswana for its openness in inviting the Working Group to conduct this visit which is the first visit of the Working Group to the Southern African region in over a decade. This is a further extension of the commitment to uphold international human rights obligations undertaken by Botswana through its ratification of international human rights treaties.”

Another good act Botswana has been praised for is the remission of sentences. Steinerte echoed that the Prisons Act grants remission of one third of the sentence to anyone who has been imprisoned for more than one month unless the person has been sentenced to life imprisonment or detained at the President’s Pleasure or if the remission would result in the discharge of any prisoner before serving a term of imprisonment of one month.

On the other side; The Group received testimonies about the police using excessive force, including beatings, electrocution, and suffocation of suspects to extract confessions. Of which when the suspects raised the matter with the magistrates, medical examinations would be ordered but often not carried out and the consideration of cases would proceed.

“The Group recall that any such treatment may amount to torture and ill-treatment absolutely prohibited in international law and also lead to arbitrary detention. Judicial authorities must ensure that the Government has met its obligation of demonstrating that confessions were given without coercion, including through any direct or indirect physical or undue psychological pressure. Judges should consider inadmissible any statement obtained through torture or ill-treatment and should order prompt and effective investigations into such allegations,” said Steinerte.

One of the group’s main concern was the DIS held suspects for over 48 hours for interviews. Established under the Intelligence and Security Service Act, the Directorate of Intelligence and Security (DIS) has powers to arrest with or without a warrant.

The group said the “DIS usually requests individuals to come in for an interview and has no powers to detain anyone beyond 48 hours; any overnight detention would take place in regular police stations.”

The Group was able to visit the DIS facilities in Sebele and received numerous testimonies from persons who have been taken there for interviewing, making it evident that individuals can be detained in the facility even if the detention does not last more than few hours.

Moreover, while arrest without a warrant is permissible only when there is a reasonable suspicion of a crime being committed, the evidence received indicates that arrests without a warrant are a rule rather than an exception, in contravention to article 9 of the Covenant.

Even short periods of detention constitute deprivation of liberty when a person is not free to leave at will and in all those instances when safeguards against arbitrary detention are violated, also such short periods may amount to arbitrary deprivation of liberty.

The group also learned of instances when persons were taken to DIS for interviewing without being given the possibility to notify their next of kin and that while individuals are allowed to consult their lawyers prior to being interviewed, lawyers are not allowed to be present during the interviews.

The UN Working Group on Arbitrary Detention mentioned they will continue engaging in the constructive dialogue with the Government of Botswana over the following months while they determine their final conclusions in relation to the country visit.

Continue Reading

News

Stan Chart halts civil servants property loan facility

26th July 2022
Stan-Chart

Standard Chartered Bank Botswana (SCBB) has informed the government that it will not be accepting new loan applications for the Government Employees Motor Vehicle and Residential Property Advance Scheme (GEMVAS and LAMVAS) facility.

This emerges in a correspondence between Acting Permanent Secretary in the Ministry of Finance Boniface Mphetlhe and some government departments. In a letter he wrote recently to government departments informing them of the decision, Mphetlhe indicated that the Ministry received a request from the Bank to consider reviewing GEMVAS and LAMVAS agreement.

He said: “In summary SCBB requested the following; Government should consider reviewing GEMVAS and LAMVAS interest rate from prime plus 0.5% to prime plus 2%.” The Bank indicated that the review should be both for existing GEMVAS and LAMVAS clients and potential customers going forward.

Mphetlhe said the Bank informed the Ministry that the current GEMVAS and LAMVAS interest rate structure results into them making losses, “as the cost of loa disbursements is higher that their end collections.”

He said it also requested that the loan tenure for the residential property loans to be increased from 20 to 25 years and the loan tenure for new motor vehicles loans to be increased from 60 months to 72 months.

Mphetlhe indicated that the Bank’s request has been duly forwarded to the Directorate of Public Service Management for consideration, since GEMVAS and LAMVAS is a Condition of Service Scheme. He saidthe Bank did also inform the Ministry that if the matter is not resolved by the 6th June, 2022, they would cease receipt of new GEMVAS and LAMVAS loan applications.

“A follow up virtual meeting was held to discuss their resolution and SCB did confirm that they will not be accepting any new loans from GEMVAS and LAMVAS. The decision includes top-up advances,” said Mphetlhe. He advised civil servants to consider applying for loans from other banks.

In a letter addressed to the Ministry, SCBB Chief Executive Officer Mpho Masupe informed theministry that, “Reference is made to your letter dated 18th March 2022 wherein the Ministry had indicated that feedback to our proposal on the above subject is being sought.”

In thesame letter dated 10 May 2022, Masupe stated that the Bank was requesting for an update on the Ministry’s engagements with the relevant stakeholder (Directorate of Public Service Management) and provide an indicative timeline for conclusion.

He said the “SCBB informs the Ministry of its intention to cease issuance of new loans to applicants from 6th June 2022 in absence of any feedback on the matter and closure of the discussions between the two parties.”  Previously, Masupe had also had requested the Ministry to consider a review of clause 3 of the agreement which speaks to the interest rate charged on the facilities.

Masupe indicated in the letter dated 21 December 2021 that although all the Banks in the market had signed a similar agreement, subject to amendments that each may have requested. “We would like to suggest that our review be considered individually as opposed to being an industry position as we are cognisant of the requirements of section 25 of the Competition Act of 2018 which discourages fixing of pricing set for consumers,” he said.

He added that,“In this way,clients would still have the opportunity to shop around for more favourable pricing and the other Banks, may if they wish to, similarly, individually approach your office for a review of their pricing to the extent that they deem suitable for their respective organisations.”

Masupe also stated that: “On the issue of our request for the revision of the Interest Rate, we kindly request for an increase from the current rate of prime plus 0.5% to prime plus 2%, with no other increases during the loan period.” The Bank CEO said the rationale for the request to review pricing is due to the current construct of the GEMVAS scheme which is currently structured in a way that is resulting in the Bank making a loss.

“The greater part of the GEMVAS portfolio is the mortgage boo which constitutes 40% of the Bank’s total mortgage portfolio,” said Masupe. He saidthe losses that the Bank is incurring are as a result of the legacy pricing of prime plus 0% as the 1995 agreement which a slight increase in the August 2018 agreement to prime plus 0.5%.

“With this pricing, the GEMVAS portfolio has not been profitable to the Bank, causing distress and impeding its ability to continue to support government employees to buy houses and cars. The portfolio is currently priced at 5.25%,” he said.  Masupe said the performance of both the GEMVAS home loan and auto loan portfolios in terms of profitability have become unsustainable for the Bank.

Healso said, when the agreement was signed in August 2018, the prime lending rate was 6.75% which made the pricing in effect at the time sufficient from a profitable perspective. “It has since dropped by a total 1.5%. The funds that are loaned to customers are sourced at a high rate, which now leaves the Bank with marginal profits on the portfolio before factoring in other operational expenses associated with administration of the scheme and after sales care of the portfolio,” said the CEO.

Continue Reading
Weekend Post