Work starts on developing Sowa Town SEZ
Correspondent | Monday November 20, 2023 06:00
This was revealed by SEZA CEO, Lonely Mogara, at the sixth Mayor’s Forum in Nata on Wednesday. Mogara revealed that Parliament approved the declaration of Sowa Town as an SEZ in August 2019 and mandated the Authority to develop, manage and regulate it.
The 59.8-hectare SEZ has been earmarked as a chemical manufacturing hub, primarily because of its abundant sodium resources.
“Sowa Town is home to Botash Mine, which has the potential to produce 650,000 tonnes of salt and 300,000 tonnes of soda ash per annum. These can be beneficiated within the proposed SEZ to create employment,” said Mogara.
He added that salt can be used as a bleaching agent, dye and in the manufacture of polyvinyl chloride. Soda ash, on the other hand, is used in the manufacture of glass, chemicals, fertilisers, detergents, food additives and recycling of base metals. Value chain opportunities at Botash include the manufacturing of feedstock, naphtha and natural gas, as well as brine and stock salt.
Further downstream, there are opportunities for marketing, sales and distribution of these chemicals in sectors such as agriculture, automotive, construction, manufacturing, consumer products, packaging, water treatment as well as textiles and apparel.
Explaining the rationale behind the Mayors Forum, Mogara explained that SEZA recognises that local authorities are crucial for the efficient facilitation of SEZs.
“Local authorities are critical partners in infrastructure development and delivery of the SEZA mandate. “They approve SEZ investors’ applications for planning, building and occupation permits. “They also grant approvals for industrial licenses for manufacturing companies,” said Mogara.
The partnership with local authorities will help SEZA achieve an inclusive ringfencing reform, and ensure the free flow of information. Key focus areas for the Mayor’s Forum will include referral of investors for establishment in the different localities, efficient facilitation of investors, issuance of permits and licenses, infrastructure and property development, designation of SEZs as well as joint monitoring and evaluation of the SEZ programme.
The feasibility study for the Sowa Town SEZ comes just after the launch of Botash’s five-year strategy, named “Double in Five, Safely,” through which the firm aims to attain sustainable growth, innovation and expansion. In the strategy, Botash plans to double its earnings before tax through the enhancement of logistics, efficient plant operations, new product development and market expansion. Apart from expanding its production of soda ash, Botash plans to integrate its food-grade salt business over the next few years.
Botash – the largest producer of natural sodium and related products in Botswana – is owned 50% by the government of Botswana, while the remaining shareholding resides with South Africa-based chemicals company, Chlor Alkali.
Over the years, Botash has opened offices in South Africa, dealing primarily with sales and marketing of soda ash. The South African office and depot, situated in Alrode, Alberton, is operated by Botash’s sister company – Botswana Ash South Africa.