The project, being developed in Mmamashia by Galvanising Botswana, will have the capacity to process about 100,000 tonnes of steel annually, or roughly 220 tonnes a day. The facility is expected to become the country’s first major downstream steel-processing plant, targeting industries ranging from mining and construction to agriculture, water infrastructure, and renewable energy.Its arrival comes against a backdrop of heavy dependence on imported steel and steel products. Botswana imported iron and steel worth about $114.9 million in 2023, whilst articles of iron and steel accounted for a further $130.1 million, representing a combined import bill of more than P3 billion. Much of that market consists not only of raw materials but finished or semi-finished products that could potentially be fabricated and processed closer to home.For Galvanising Botswana, however, the bigger opportunity lies in what happens around the plant. The facility will not manufacture finished steel products itself. Instead, directors believe it could provide a missing industrial service that allows other businesses to manufacture, fabricate, and finish products locally.Mmegi: For someone unfamiliar with the industry, what exactly does Galvanising Botswana do and why is the plant important? Steven: The project comes from our experience in the mining industry. We specialise in ground support products used in underground mines to prevent falls of ground. We started as suppliers and along the way realised that we were facing stiff competition from manufacturers in South Africa because we were simply buying and selling. We then moved into manufacturing certain products, including split sets, which are friction bolts used in underground mines. However, there was another challenge. Because of the conditions underground, particularly humidity, the steel needs corrosion protection. That is where galvanising comes in. Even if you manufacture a steel product in Botswana, you still have to send it to South Africa for galvanising and wait for it to be processed before bringing it back. We realised that this was a bigger industrial problem.Mmegi: How did that lead to the decision to establish a plant in Botswana? Steven: About two years ago, we started developing the business case for the plant and realised that there were many downstream industries that could benefit from having a galvanising facility in Botswana. There are products that are difficult to manufacture here because, even after manufacturing them, you still have to send them outside the country for galvanising. We started asking ourselves why Botswana did not have a galvanising plant. Our research showed two major challenges. The first is the capital required. To establish a proper galvanising plant requires around P160 million. The second challenge is volumes. A galvanising plant operates using what we call a kettle, where zinc is melted. Once the kettle is operating, you cannot simply switch it on and off. It needs to run continuously to optimise energy consumption. You therefore need a consistent base load of steel products coming into the plant. That is why developing the business case was not simply about constructing a plant. We also had to understand where the volumes would come from and what industries could support the operation.Mmegi: Where does the galvanising plant fit into the broader steel value chain? Steven: You have different stages in the steel industry. Steel is processed into different forms such as pipes, tubes, coils and other products. From there, the steel is sold to fabricators who cut, shape and manufacture different products and structures. The problem comes after fabrication because the steel needs protection from corrosion. That is where we come in. A fabricator can bring a finished steel product to the galvanising plant. We process it, and then the product goes back to the manufacturer for supply to the final customer. That is why we describe galvanising as an enabler. The plant itself is not manufacturing all these products. It makes it possible for other businesses to manufacture and complete their products locally.Mmegi: Which industries could immediately benefit from having a local galvanising facility? Steven: Mining is one of the major ones. Underground mines use galvanised rock bolts, cable anchors and other ground support products. Today, many of these are imported as finished products. The solar industry is another major opportunity. The steel structures used to hold solar panels need to be galvanised because these are long-term investments expected to last 20 or 30 years. There are also opportunities in water infrastructure, power, construction and agriculture. You can look at products such as roofing sheets, bolts, nuts, screws and nails. Someone can acquire machinery to manufacture these products from raw steel and then bring them to the galvanising plant for corrosion protection. At the moment, there are products that cannot easily be manufactured competitively in Botswana because there is no facility to complete that process.Mmegi:So you are saying the plant could create opportunities for smaller manufacturers as well? Steven: You do not necessarily need a massive steel mill to enter every part of the industry. For example, we visited machinery manufacturers in China where you can buy equipment that takes a roll of steel wire and produces nails. The steel already comes in a usable form. The entrepreneur buys the machinery, manufactures the product and then brings it to the galvanising plant. We can galvanise it, and the product is ready for the market. Today, if you manufacture certain products locally and cannot galvanise them, you are limited. A galvanised product has much greater value in industries such as construction. This means a local business can start manufacturing complete products and supply distributors or directly enter the regional market.Mmegi: What is the current status of the plant? Steven: Construction is being done in stages. The first stage is the workshop shell, which is essentially the large structure that will house the galvanising plant. Once that is complete, our supplier, Ritmen from China, will bring the components of the plant for installation and commissioning. We have worked with the company extensively. We have visited them in China, and they have also visited Botswana for site inspections and discussions. They are specialists in galvanising plants and are currently manufacturing components that will eventually be shipped here.Mmegi: The plant will have significant capacity. Can Botswana alone provide enough business? Steven: The planned capacity is about 100,000 tonnes annually. Botswana alone will not be enough to consume the entire capacity. We estimate that the domestic market could account for around 40% of the plant’s capacity. That means the export market is extremely important. We are looking at countries such as Namibia, Zambia, and Zimbabwe. We have engaged players in mining and other industries in those markets. Botswana is strategically located and already sits along routes used by steel products moving from South Africa to the rest of the region. Our business model therefore cannot focus only on Botswana. We have to stimulate local manufacturing whilst also positioning ourselves to serve regional markets.Mmegi: How do you compete with established galvanising plants in South Africa? Steven: South Africa has an established industry and several galvanising plants. Pricing depends on the type of product being galvanised because different products require different levels of preparation, but generally the industry prices according to weight. In South Africa, simple products can cost around R20 per kilogramme. Our business model has been developed around approximately P15 per kilogramme. So we believe we can compete on price. There are also logistical advantages. At the moment, a company can send a product to South Africa and wait several weeks for galvanising because the plants are busy. A local facility reduces transport distances and turnaround times.Mmegi: Beyond the immediate project, what does this mean for Botswana’s industrialisation ambitions? Steven: Botswana does not have to start by building every part of the steel value chain. We can begin by identifying the gaps that prevent local manufacturing from developing. Galvanising is one of those gaps. Today, a company can have the machinery and skills to fabricate a steel product in Botswana but still be forced to export that product for finishing before bringing it back. That adds costs and weakens the local value chain. We believe the galvanising plant can help close that gap. The bigger vision is therefore not simply to galvanise steel. It is to create an ecosystem around the plant where Batswana can start manufacturing products that become viable because the finishing service is now available locally. Success for us will not only be about how many tonnes we galvanise. It will also be about how many new businesses and industries emerge because Botswana now has this capability.
