F/town bears the brunt of collapsed mining
Pini Bothoko | Friday April 22, 2016 10:16
Thakadu’s sister company ACM’s Mowana Mine in Dukwi followed suit and stopped operations in November 2015 leaving around 300 people without jobs.
Two months later, in February this year, Aveng Moolmans Mining Company, a company that was doing excavations for Tati Nickel Mining Company (TNMC) added to the teeming unemployment numbers, throwing 600 people onto the streets.
As the mines are located in the periphery of the city, the majority of their employees resided here and commuted to their respective workplaces daily.
The mines provided a high-income bracket, which elevated the buying power and boosted the economy of the city.
The unexpected closure of mines caught many people and businesses off-guard. The mayor, Sylvia Muzila said the closing of mines impacted negatively on the city’s economy.
“We had a vision to attract more investors into the city through the mines and that vision was shattered when some of them closed,” she said.
“Instead unemployment has increased since many people were laid off and that does not only worry the leadership of the city but has also had a huge negative impact on the businesses and individuals who took advantage of the mines.”
Muzila added that due to poor performance of the mining sector, they had resorted to switching focus from depending on the mines.
“We are in the process of changing our focus to manufacturing goods because this sector is labour intensive and as such it will create more openings and more possibilities for locals,” said Muzila.
Business Botswana northern regional manager, Keabetswe Bogatsu said the impact of the collapsed mining entities was huge and needed instant remedy.
“I call this multiple impact because not only mineworkers lost jobs, but other people who were employed by the mines, people like gardeners and maids to mention but a few also lost their jobs,” he said.
“Mines brought business opportunities and some businesses that set up here targeting the mines and mineworkers might take their businesses elsewhere because of the reduced buying power.
“Recently a number of shopping malls opened and with the closure of mines one could wonder where the future of the city lies, if the diversification of the economy cannot be addressed immediately.
Bogatsu added: “As a matter of urgency both private sector and government should come up with ways to rescue this city before the situation gets out of control.”
The real estate players, who flourished under the mines, have found themselves at the bitter end of the mining slump.
Jimmy Kabingabinga, a valuer and property consultant at Kwena Property Services, described their business as ‘dying a natural death’.
“It happened too fast and we are affected,” he said.
“Mines were reliable sources, but with the unexpected closure of these mines and retrenching of personnel by the mines, we lost a massive amount of business in property rentals, particularly in exclusive properties.
“People could afford P3,000 to P4,500 rentals, but now property owners are forced to compromise and reduce rentals to rates that don’t match their properties because there is no affordability.”
“Our business is on its knees and we are depending on property valuations for income. We have tightened up in terms of budgeting and we cannot even afford advertising, which is fundamental in our business.
“It has become too expensive; rentals and property selling in the market is now too slow.”
Another real estate agent and director of Comfortable Homes, Phizhana Makopola shared the same sentiments.
“Business boomed with the arrival of the mines. We enjoyed business not only from the miners, but also from other companies that supplied the mines and companies could rent high-end properties for their employees.
“Now with the reduction of operating costs by the mines, employees are given meagre housing allowances and finding tenants for high-end properties has become a serious challenge,” he said.
Commenting on the matter, Tati East Member of Parliament, Samson Moyo Guma said a solution could have been put in place earlier.
“It has been known for years that copper was not doing well in the market, but we failed to attend to it early enough.”
“However, the government has put measures in place through the Economic Stimulus Package to diversify the country’s economy. It is imperative that we speed up diversifying away from a mineral-based economy lest we find ourselves deep in problems,” Guma said.
He added that the government should look at alternatives that could work well for the entire country and not only in areas where mines are situated.