Business

Schweppes lines up Phikwe Citrus supply deal

Selebi Phikwe Citrus Farm
 
Selebi Phikwe Citrus Farm



The planned supply relationship could connect Selebi-Phikwe Citrus’ expanding orchards with Schweppes’ proposed agro-processing operation, creating a local value chain stretching from commercial fruit production to beverage manufacturing.

Schweppes is a leading Zimbabwean manufacturer and distributor of non-carbonated still beverages and cordials, known for products like Mazoe and Orange Crush. According to the Botswana Investment and Trade Centre’s (BITC) latest investment pipeline, consultations are underway to allocate approximately 800 hectares to Schweppes from land held by Lesabokwe Trust.

Selebi-Phikwe Citrus is separately negotiating with the same community trust for about 1,300 hectares to expand its production. Lesabokwe Trust represents Robelela, Tshokwe and surrounding communities.

The two proposed developments would give Schweppes access to citrus production within the same agricultural area whilst providing Selebi-Phikwe Citrus with a major industrial buyer for part of its output.

The supply arrangement could reduce Schweppes’ dependence on imported fruit and concentrates whilst creating a stable domestic market for citrus produced around Selebi-Phikwe and Dikgatlhong.

However, details of the proposed relationship, including purchasing volumes, prices, product specifications, and the duration of any supply agreement, have not yet been disclosed.

BITC chief executive officer, Keletsositse Olebile, during a stakeholder update, identified the Selebi-Phikwe Citrus expansion as one of the major projects in the agency’s investment pipeline. He said BITC continued to facilitate both new and expanding investments around Dikgatlhong Dam, with agriculture and agro-processing amongst the priority sectors.

Selebi-Phikwe Citrus currently operates a 1,840-hectare farm east of Selebi-Phikwe on land owned by the Mmadinare Multipurpose Cooperative Society.

The operation produces navel and Valencia oranges, grapefruit, lemons, and premium mandarins for local and export markets.

Recently, the company announced plans to invest a further P500 million to increase its acreage and production capacity.

Selebi-Phikwe Citrus chief executive officer, Pieter Scholtz, said the next phase of expansion was expected to create 1,500 jobs.

“This next phase will see an additional P500 million investment, and we expect it to create 1,500 new jobs,” he said.

The proposed Schweppes operation would introduce an additional processing and purchasing component to the area’s growing citrus industry. It could also strengthen the case for investment in irrigation, cold storage, packaging, electricity, and transport infrastructure around Dikgatlhong.

Both projects remain subject to the conclusion of land negotiations and regulatory approvals. A formal offtake agreement between Schweppes and Selebi-Phikwe Citrus has also not been publicly disclosed.

If concluded, the partnership would mark a significant shift from exporting raw agricultural produce towards building a domestic citrus-processing value chain.