Steel plant targets P3bn import market
Lewanika Timothy | Monday August 17, 2026 06:00
Once operational, the firm will be the country’s first major downstream steel-processing facility, with directors already aiming at supporting the country’s solar power industry, which relies heavily on galvanised steel.
The facility will have a planned production capacity of about 100,000 tonnes a year, equivalent to roughly 220 tonnes a day. Construction is expected to be completed by December, with production targeted for the first quarter of 2027.
In a market update, Galvanizing Botswana directors shared that Botswana’s rapidly growing industrial sector was in need of steel and steel by-product services, which were mainly expensive due to importation costs.
“Botswana’s mining, construction, energy and agricultural sectors depend heavily on steel, from structural frameworks and reinforcing bar to fencing, poles and mining equipment, nearly all of which must currently be shipped to South Africa for galvanising and trucked back, adding cost, time, and a steady drain on foreign exchange. “A local plant is designed to substitute for those imports, shorten turnaround times, and keep more value inside Botswana’s borders,” directors shared.
Trade data shows that Botswana imported roughly $114.9 million worth of iron and steel in 2023, whilst imports of articles of iron or steel amounted to another $130.1 million. Combined, the two categories represented more than P3 billion worth of product.
South Africa remains the dominant source of that dependence, but the figures also suggest that Botswana's exposure is not limited to raw steel. A significant portion of the import bill consists of products that have already undergone fabrication, finishing or other forms of downstream processing.
Galvanising is a downstream stage in the steel value chain in which fabricated steel is coated in molten zinc to protect it against corrosion and extend its service life. The process is widely used in construction, mining, agriculture, energy, and infrastructure.
The company expects the plant to employ more than 800 people at full operation, including more than 50 engineers involved in research and development.
The development marks a shift from Botswana's traditional position in the steel value chain. Whilst the country has established merchants, fabricators, and engineering businesses, higher-value processing activities have largely remained outside the country, leaving local companies exposed to the availability, pricing, and logistics of regional suppliers.
The vulnerability of that model has become more pronounced as South Africa's own steel industry has come under sustained pressure.
ArcelorMittal South Africa, the country's largest steel producer, has been grappling with weak demand, high electricity and logistics costs, excess global capacity, and competition from imports. The company wound down its long-steel operations in 2025, further weakening a steel value chain on which much of the region depends.
For Botswana, the deterioration of South Africa's steel industry highlights the risks associated with concentrating critical industrial capacity outside the domestic economy.
The plant will allow locally fabricated steel to be finished in Botswana rather than being transported across the border for galvanising before returning to the domestic market. It could also create a domestic market for fabricators supplying mining, construction, agriculture, and energy projects.
Directors at Galvanizing Botswana shared that they had identified major renewable-energy developments, including the 120MW Mmadinare Solar Cluster and 100MW Jwaneng Solar Plant, alongside more than 500MW of additional projects in the pipeline, as potential sources of demand for galvanised steel.
“Botswana’s solar energy sector is expanding rapidly, with projects such as the 120MW Mmadinare Solar Cluster and the 100MW Jwaneng Solar Plant, alongside smaller stations in Bobonong and Shakawe, and more than 500MW of additional capacity in the pipeline, all requiring extensive galvanised steel for panel mounting, fencing, and transmission structures,” directors shared.
Solar mounting structures, fencing, transmission infrastructure and other energy-related installations are all steel-intensive applications.
The company's proposed 100,000-tonne annual capacity would therefore be substantial relative to Botswana's current domestic processing base, although it will not eliminate the country's need for imported steel.
Steel plants are, however, no new investment talk for the country. Selebi-Phikwe already hosts the Pula Steel company, which manufactures steel billets from scrap metal. In January, the company said it is in the process of installing a rolling mill to manufacture finished products for the domestic market.