BDC injects P41m to keep Lobatse Clay Works afloat

Lobatse Clay Workd has struggles to remain afloat in recent years
Lobatse Clay Workd has struggles to remain afloat in recent years

Botswana Development Corporation (BDC) has come to the rescue of its cash strapped subsidiary, Lobatse Clay Works (LCW), injecting P41 million for the firm’s turnaround.

Last year the iconic company, which is wholly owned by BDC, halted its operations and failed to pay close to 500 employees’ salaries, after years of financial distress. The 26-year-old firm’s revival plans were shattered after failing to get a P60 million cash injection from the Botswana Opportunities Partnership Fund (BOP), which had moved to take up to 80% equity. The BOP, a P500 million private equity fund sponsored by the Botswana Public Officers Pension Fund (BPOPF) and asset management firm, Capital Management Botswana, was the subject of extensive litigation between the two former partners, resulting in a Court of Appeal verdict for the pension fund last year.

In the dispute between the two, planned investments including the LCW deal, fell through the cracks and the Lobatse firm, which had been struggling for years, found itself in dire straits.  BDC head of corporate affairs and strategy, Boitshwarelo Lebang said the corporation remained committed to ensuring that LCW returns to sustainable operations.

Editor's Comment
Urgent call: Stop the killing!

The previous week, we had an article about a police officer shooting his wife, and turning the gun on himself, whilst he died, his wife survived and is still in the hospital.Sadly that was not the only article we carried on intimate partner killings. There was the Francistown case, where a young woman allegedly stabbed her ‘former boyfriend’ and many others which were reported throughout the week.As all the reports were coming in, a Botswana...

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