Francistown still struggling after TNMC closure
Chakalisa Dube | Friday October 13, 2017 12:47
Today is exactly one year and six days since the BCL Group was placed under provisional liquidation by the High Court due to its non-profitability, rendering thousands of workers jobless in the process. The BCL Group operated BCL mine and Tati Nickel Mining Company (TNMC).
The economy of Francistown, which was attached to TNMC like Siamese twins, suffered a dramatic reversal of fortunes following the closure.
Though Francistown was not battered by the effects of the closure of mines under the BCL Group compared to Selebi-Phikwe, it is clear that the economy of the city and its prosperity to a larger extent hinged on the operation of the mine.
The closure of the TNMC has left the former mine workers and their dependants despondent. Not only did it affect the ex-workers and their dependants, but its ramifications could be felt across many industries including real estate, suppliers, transport, education, retail, and entertainment amongst others.
Businesspeople, politicians from across the political divide, Botswana Mine Workers Union and the miners themselves have all put the government under heavy and sustained pressure to re-open the mines.
TNMC’s former managing director Ditiro Lentswe told city councillors last year August that TNMC operations at Silkerk Mine will resume operating in the beginning of 2017. He noted that Selkirk is rich in ore resources and requires very limited capital injection to start operations.
He said: “As management, we have strongly recommended that the Selkirk Mine should start operating at the beginning of 2017. A task force has been appointed by the government to investigate and map the way forward for the BCL and we await the decision.”
The mines in Botswana are arguably one of the lucrative organisations to work for because they pay better salaries that most can only dream of.
A cursory look around Francistown now shows that both some businesses and residential premises around the city remain unoccupied as a result of the closure of TNMC.
In the aftermath of the massive layoffs, the former mine workers have been struggling to get jobs outside the mining industry partly because they have no experience of working outside the mining sector.
A gloomy mood permeated the office of the mayor of Francistown, Sylvia Muzila when these reporters paid her a visit to enquire about how the economy of the city can be revitalised to reduce the negative impacts of the closure of TNMC. A crestfallen Muzila pointed out that TNMC was one of the sparks that powered the economy of Francistown, adding that the city has never been the same since the shutdown of the mine.
“My main worry is that the Tati River Mall, which was expected to hire some workers, is not yet fully occupied by tenants. The upshot of this shows that the economy of the city is virtually on its knees.
We are doing everything in our power with Business Botswana, who are our strategic partners, to resuscitate the economy of the city.
“We have been allocated 500 hectares of land for use as a special economic zone. Last month we submitted our proposal to the government for finalisation.
The final decision on prioritisation lies with the government,” said Muzila.
She said the special economic zone, just like the Francistown Investment Company (FIC) that are yet to fully take off, are expected to stimulate the city’s economy through employment creation.
The FIC is a brainchild of the Francistown City Council and was established to attract investment in the second city.
Muzila said businesses that will set up shop at the Golf Course, a project under the FIC, are expected to create jobs. She however could not readily state how many jobs will be created once the Golf Course is fully operational.
“The Golf Course project is currently at adjudication stage. We will be in a position to state how many jobs will be created after the adjudication stage. Then, businesses that will be chosen to operate at the Golf Course will tell us how many direct jobs will be created during the construction phase and when the project is fully operational. “It pains me very much to see job-seekers sitting under trees looking for elusive jobs.
We are not despairing, but are pinning our hopes on the Golf Course and the special economic zone to employ our people. We simultaneously hope that the ministry will find a partner to re-open TNMC,” said Muzila, adding that she hopes that the issue of the special economic zone will be fast-tracked.
Muzila further stated that the council is waiting for the Ministry of Investment, Trade and Industry to guide them on how best they can execute the mandate of FIC.
“The ministry is currently doing a special study about how councils' companies can effectively be operated.
The companies will be operated in line with most of the recommendations that the ministry will provide. We hope the ministry will give us a response very soon.”
Under the special economic zone, Francistown will be turned into a logistics hub.
The closure of TNMC has equally worried the northern regional manager of Business Botswana Keabetswe Bogatsu.
He stated that the economy of Francistown is in the doldrums since the closure of TNMC.
Businesses are now coming to Business Botswana to ask for help about how they can address the challenges they are currently facing. We try to help them ,but we don’t want a situation where they will put us under pressure,” said Bogatsu.
Like Muzila, Bogatsu painted a grim picture of the business environment, but is hopeful that the situation will improve for the better in future.
“We have engaged the government about strategies that can be used to revitalise the waning business climate in Francistown, but that is a process that will take time,” said an optimistic Bogatsu.
He added that Francistown should optimally utilise the special economic zone as a panacea to improve the city's economy and fight unemployment that has rocked the city.
“My other wish is to see Francistown being turned into a manufacturing hub because the city has a railway line that can support the manufacturing industry,” he said.