Leather Park now awaits board appointment

Pauline Dikuelo | Friday December 11, 2020 14:34

 

Leather Park now awaits board appointment

Appearing before Parliament’s State Enterprises and Statutory Bodies Committee on Wednesday, CEO, Racious Moatshe said LEA has completed the evaluation of the project and is waiting for its adjudication.

'We had anticipated that the project would start in December, but we are still waiting for our parent ministry to appoint a board that will do the adjudication,' he said.

The leather park has been in the pipeline since 2014 with little progress, a fact that has frustrated authorities and residents in the border town.

The project entails the development of a complex for different tanneries supported by the Botswana Meat Commission. It will comprise primary infrastructure such as a common effluent treatment plant, sewage treatment plant, and others. The government has said the plant could employ up to 10,000 employees when fully functional, marking a sustainable economic diversification effort.

The leather park funding and business model were approved last December.

According to LEA, an experienced technical director has been engaged to assist in the implementation of the project. Moatshe said the director is expected to commence his role in January next year.

Early this year, the Special Economic Zones Authority (SEZA) said the leather park business case had to be reviewed to ensure that the business is profitable. SEZA said it emerged that the leather that is available locally is not enough to run a profitable operation when it comes to the leather park.

The ministry initially developed the Leather Industry Strategy in 2012. According to the ministry, the Leather Park is highly technical and needs specialised expertise and experience both at construction and operational stages. Once operational, the park is expected to supply the private sector with hides and skins, raw to finished leather tanneries, and the manufacturing of different leather products. These products include shoes, belts, jackets, and others thereby playing an instrumental role in stimulating economic activity.