Business

Phikwe citrus project eyes European market

Coming up: The Phikwe citrus project is one of the country’s biggest private sector investments targeting the export market PIC: FACEBOOK
 
Coming up: The Phikwe citrus project is one of the country’s biggest private sector investments targeting the export market PIC: FACEBOOK



The P500 million Selebi-Phikwe citrus project is expected to produce its first harvest of lemon, oranges, grapefruit and naartjies in January next year.

On Wednesday, Ministry of Trade and Industry permanent secretary, Malebogo Morakaladi, told Business Week that talks are being advanced with the EU, while steady progress is also being made with other potential markets.

“The project is going accordingly and there has been progress,” she said. “We are finalising with the Europeans and also in advanced talks with other potentials including the United States of America, to export to them as well.”

From the first harvest, at least 70% of the produce is due to be exported internationally, while the remaining will be sold locally and in other countries on the continent.

The country’s current annual citrus production is estimated at 3,165 metric tonnes, which represents just 2.64 percent of local demand.

A small percentage of the project’s annual production will be set aside for agro-processing into fruit juice and other products.

Besides the EU and the US, other targeted markets included Canada, the United Kingdom, the Middle East, Asia, China, and Japan.

Meanwhile, developments have been progressing well at the citrus farm with the completion of a 12,000 square metre packaging warehouse whose full system will be tested and commissioned in December this year.

Once fully complete, the project will be one of the largest consolidated citrus developments in Southern Africa with a planned production capacity of 70,000 tonnes per annum. It will transform the landscape of citrus production in Botswana and contribute to economic growth as a whole, providing a source of employment for up to 1,500 people (permanent and seasonal). In addition, the project will provide indirect benefits to the local economy such as increased economic activity and food supply.

The project currently employs around 228 workers.

Once complete, the project, which is situated on a 1,500-hectare site, will house over 1,200 hectares of citrus fruit by 2025.

Government invested P300 million into the project, which is being undertaken as a collaboration between Mmadinare Multi-Purpose Cooperatives and Blydevallei International South Africa. Byldevallei Citrus investor, Pieter Scholtz, is leading the Selebi Phikwe project with 30% equity held by a group of local investors.