Selebi-Phikwe citrus investors plot P200m expansion
Lewanika Timothy | Monday March 2, 2026 06:00
The P200 million expansion comes barely a few years after the initial P500 million investment that established what is now regarded as the country’s largest citrus development.
The project, located near Selebi-Phikwe, has already developed about 880 hectares under irrigation and planted approximately 1.1 million citrus trees.
Speaking at a recent agriculture investment forum in Gaborone, board chairperson Deon van der Westhuizen revealed the additional capital injection would support scaling up production and market diversification.
“We will be expanding our investment to around P750 million where we will produce over 40,000 tonnes of fruit,” he said. “We are also looking into expanding our target markets looking at where price is the best, the new markets we are looking into are the UAE, China and India.”
At full production, the project is expected to ramp output from the current range of 27,000 tonnes toward between 35,000 and 40,000 tonnes of fruit annually.
Management has indicated that the farm is on track to reach positive cash flow within seven years of establishment, with 2027 marked as a critical milestone for financial break-even.
The operation currently employs about 350 permanent staff, making it one of the largest private agricultural employers in the region and a key anchor in the economic diversification of Selebi-Phikwe following the closure of BCL, the town’s copper-nickel mine.
Beyond the immediate expansion, investors have also outlined plans for a new development linked to the Dikgatlhong Dam, with an estimated capital outlay of between P500 million and further land development spanning 700 to 900 hectares.
The dam has been central to irrigation-driven agriculture in the region, supporting government’s broader strategy to boost domestic food production and exports.
However, van der Westhuizen cautioned that macroeconomic pressures could complicate expansion plans if not managed carefully.
“We must be careful as a country, the cost of money has gone up, what you would get as the cost of money last year has gone up by 100% this year. Exchange rate changes have also upped the cost of equipment, fertilizers and inputs,” he said.
His remarks come at a time when businesses across sectors have flagged rising borrowing costs and currency movements as key risks to capital-intensive projects.
For an irrigation-based operation reliant on imported equipment, agrochemicals and specialised inputs, exchange rate volatility can significantly affect project costs and margins.
The Selebi-Phikwe Citrus project has been widely cited in previous policy discussions as a flagship example of large-scale commercial agriculture taking root in Botswana’s eastern corridor.
The farm’s scale, export orientation and long-term capital structure distinguish it from smaller horticultural ventures that have historically dominated the sector.
Investors say market diversification will be central to sustaining returns, particularly in a global citrus market characterised by fluctuating prices and stiff competition from established producers in Southern Africa and South America.
Entry into Asian markets such as China, Vietnam and India is expected to provide alternative demand channels beyond traditional destinations in the Middle East.
With total investment set to reach three-quarters of a billion pula, the project represents one of the largest single private commitments in Botswana’s agricultural sector to date.
Its next phase will test both market access ambitions and the resilience of long-gestation agricultural investments in a higher interest rate and volatile exchange rate environment.