Modubule calls for Lobatse's own EDU
Gothataone Moeng | Monday December 2, 2013 17:14
To rescue the town, Modubule asked Parliament to request for government to establish an Economic Diversification Unit (EDU) similar to the Selebi-Phikwe Economic Diversification Unit (SPEDU).
He also wants the town to be declared an industrial town, and that its historical significance and scenic beauty should be exploited adding that it should also be a tourist area.
In a motion presented before the House on Friday, Modubule argued that the economy of Lobatse faces stagnation, and because of this major employers either relocate to Gaborone or close shop.
He argued that Lobatse's proximity to towns such as Gaborone means that it faces major competition for private investment necessary for the stimulation of local economic development and the creation of employment opportunities.
He cited the closure of the Lobatse College of Education as an example of employment opportunities that are taken from residents of the town.
Modubule cited that some of the challenges facing one of the country's oldest towns are the closure of private companies such as Ben Rose Industries, Lobatse Tile Limited and beleaguered companies such as Lobatse Clay Works and the Botswana Meat Commission.
'Due to its dependence on beef production, it should be declared an industrial town to achieve economic growth and sustainable employment.
Tourism and manufacturing can also be used to diversify the economy. This can be strengthened by investment promotion capacity through introduction of programmes similar to the SPEDU,' said the MP.
Modubule said government should play a leading role in establishing the Lobatse Diversification Economic Unit to further the economic development and promotion of investment in the town. He also called for the private sector to boost diversification by driving innovation and economic activity in under-exploited sectors.
In her response, the Minister of Trade and Industry Dorcas Makgato-Malesu said although she understands the arguments extended by Modubule for focusing on diversifying the economy, she opposed the motion.
She said the setting up of SPEDU was a special case as Selebi-Phikwe depended primarily on the copper-nickel mine and it was recognised that the life of the mine was threatened.
She said she does not oppose doing a feasibility study to see what needs to be done to revive the Lobatse economy, adding that she believed local authorities with her ministry could do the research.
Economic diversification is a national drive, and if her ministry starts singling out specific cities and towns, then other regions would want the same, and that would not be sustainable, she said.
She argued that the future is not dire for Lobatse as government is currently setting up a Leather Park in the town in excess of P250 million, as well as Milk Africa, a dairy plant that is also slated for Lobatse.
Vice President Ponatshego Kedikilwe said he is sentimental about the town of Lobatse as it is where he earned his first salary, but said the country as a whole has major challenges.
The decline in economic activity in Lobatse could not be denied, the economic diversification drive should be approached at a national level with resources being shared by all regions, he said.