Saleshando denounces opening of firms in Phikwe

ONALENNA MODIKWA
Staff Writer | Tuesday August 3, 2010 00:00

Speaking during an interview recently Gilson Saleshando said when government started a Financial Assistance Policy (FAP) project in efforts to diversify the economy, some of the investors took off with government money, while others failed to pay their workers and fled at night.

'One firm was given a cash injection of P34 million but it never came to open business here,' said Saleshando.  He noted that as a result some factory shells constructed by BDC are white elephants, while a few have been rented out to garages with one being used by SPEDU and Talana farms. 'It is a disaster. Raw materials and management teams were imported and their tenders were also won by international companies.'

The said the firms initially employed about 11,000 workers in and around Selebi-Phikwe but said the number has since nosedived to only 1,000 workers employed by a few operating firms. 'The town's economy has collapsed. Generally the whole initiative did not work. The environment of Selebi-Phikwe could have first been made conducive for investors in terms of infrastructural development, good schooling facilities and low utility rates. All these factors were not availed beforehand.'

Selebi-Phikwe East MP Nonofo Molefhi however maintains that the initial idea of opening textile firms in the town to diversify the economy is still relevant. 'The intentions are as valid as they were then. We may not be attracting investors at the rate we prefer but there are factors that investors consider like the distance from larger markets and transport charges for raw materials and finished goods to other markets as well as sulphur emissions. The process of recruiting investors is work in progress.'

Minister Molefhi acknowledged that bad business practices by some unscrupulous investors do not augur well for the town. 'Efforts will be sustained to establish a mutually beneficial relationship between employers and employees. Engagement of employers and employees is critical to the sustainability of business investment.'

Molefhi, who is also Minister of Lands and Housing, indicated that efforts are being made to attract investors to the town. He cited subsidised electricity, fast land allocation of investment as well as licensing and work permits processing that is facilitated by SPEDU.

 He added that the contribution of private sector investors is very significant to the economy of the town and revealed that a pharmaceutical manufacturer will soon be operating from Phikwe. He also mentioned the signing of a Memorandum of Understanding for mining training between BUIST and BCL while a new company is finalising discussions with BCL to use the mine tailings for refinement. 'These are efforts to further grow the opportunities in Phikwe and the expansion of the technical college will also enhance prospects for the town.

 Diversification efforts by government were made because the town was totally dependant on BCL and plans were to attract investors through the Selebi-Phikwe Regional Development Programme (PRDP).